/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/121004.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Thursday, October 4, 2012, Vol. 13, No. 198 Headlines A U S T R I A INVESTKREDIT BANK: Moody's Withdraws 'E+' BFSR F R A N C E BILTUBE EUROPE: Puy-en-Velay Places Firm in Receivership FCC PARIMMO: Fitch Affirms 'BBsf' Rating on Class M2 Notes PAGESJAUNES GROUPE: Fitch Puts 'B' IDR on Rating Watch Negative SPCM SA: S&P Affirms 'BB' Corp. Credit Rating; Outlook Positive G E R M A N Y DAPD: Files for Insolvency Protection NECKERMANN: Placed Into Liquidation; 2,000 Jobs Lost NORDENIA HOLDINGS: Moody's Upgrades Legacy Bond Rating to 'Ba1' NORDENIA INT'L: S&P Raises Corporate Credit Rating From 'B+' I R E L A N D LET'S DO: Seeks Government Bail-Out; Faces Liquidation K A Z A K H S T A N BTA BANK: Enters Into Restructuring Agreement with Creditors L U X E M B O U R G BOSTON LUXEMBOURG: S&P Assigns 'B' Long-Term Corp. Credit Rating CHC HELICOPTER: Moody's Rates US$200-Mil. Sr. Secured Notes 'B2' N E T H E R L A N D S STORM 2012-V: Fitch Assigns 'BB+sf(EXP)' Rating to Class D Notes P O L A N D PNI: Seeks Restructuring Loan with ARP R O M A N I A ASMITA GARDENS: Bucharest Court Approves Reorganization Plan HIDROELECTRICA SA: Government Mulls IPO After Insolvency Exit S P A I N ALTECO GESTION: Files for Creditor Protection in Madrid Court AYT COLATERALES I: S&P Raises Rating on Class C Notes to 'B' S W E D E N SAAB AUTOMOBILE: Spyker to Dispute GM's Dismissal of Claim T U R K E Y ORA ISTANBUL: Creditors Seek Bankruptcy U N I T E D K I N G D O M DHILLON GROUP: Four Hotels Falls Into Administration HARDMAN ISHERWOOD: Goes Into Administration With HI Group HILL INSURANCE: Put Into Liquidation LEMMA EUROPE: High Court Appoints Provisional Liquidator NORTHWOOD ENVIRONMENTAL: In Administration, Cuts 65 Jobs PIPE HOLDINGS: Moody's Affirms 'B2' Corp. Family Rating ROYAL BRITISH: Goes Into Liquidation SPECTRUM SOCIAL: KMPG Appointed as Provisional Liquidator WAVERLEYTBS: In Administration, 830 Jobs at Risk X X X X X X X X * Moody's Says Outlook for EMEA PPP/PFI Sector Negative * Upcoming Meetings, Conferences and Seminars ********* ============= A U S T R I A ============= INVESTKREDIT BANK: Moody's Withdraws 'E+' BFSR ---------------------------------------------- Moody's Investors Service has withdrawn all of Investkredit Bank AG's ratings. The withdrawal reflects Investkredit's merger with its parent Oesterreichische Volksbanken AG (VBAG), which became legally effective on September 28, 2012 following the entry in the commercial register. Investkredit has now ceased to exist and has been replaced by VBAG in all its legal relationships. VBAG has also assumed all of Investkredit's senior and subordinated outstanding debt which Moody's will continue to rate at the level of VBAG, as the debt-assuming entity. At the time of the withdrawal of Investkredit's ratings, the ratings were on review for downgrade in line with VBAG. VBAG is now the reference entity for the cumulative hybrid securities (Tier 1 instruments) issued by Investkredit Funding Ltd. which is now a direct subsidiary of VBAG. The securities continue to be rated Ca (hyb) with a stable outlook. The Ca (hyb) ratings reflect the terms and conditions of the recent public- tender offer from May 22, 2012 and June 14, 2012, which imply a very high probability of durable coupon-payment omissions, if the investors continue to hold the securities. VBAG's ratings and the securities assumed from Investkredit remain on review for downgrade. Following the European Commission's recent approval of the group's restructuring plans, Moody's will conclude the review in due course. Ratings Rationale Moody's has withdrawn the ratings as a result of the merger and incorporation of Investkredit into VBAG following which Investkredit has ceased to exist. VBAG will assume all outstanding debt. The ratings of Investkredit's outstanding debt securities were already aligned with the ratings of VBAG; the debt rating levels therefore remain the same. This affects its long-term senior unsecured debt (rated Baa2 on review for downgrade) and its subordinated debt (rated Ba3 respectively Caa2 (hyb), both on review for downgrade). The following ratings of Investkredit were withdrawn: - Baa2 long-term deposit ratings under review for downgrade - Prime-2 short-term deposit ratings under review for downgrade - E+ BFSR, equivalent to a standalone credit assessment of b1, under review for downgrade Principal Methodologies The principal methodology used was Moody's Consolidated Global Bank Rating Methodology published in June 2012. =========== F R A N C E =========== BILTUBE EUROPE: Puy-en-Velay Places Firm in Receivership -------------------------------------------------------- EUWID News reports that after a court hearing French coreboard producer Biltube Europe was put in receivership. The commercial court of Puy-en-Velay placed Biltube Europe in receivership and put the company under a six-month observation period, a spokesperson of the CGT trade union told EUWID in an interview. In a month's time, the commercial court will again assess the company's situation and take further decisions, according to EUWID News. EUWID News relates that the trade union spokesperson said that since the company had only little financial headroom, it needed funds from its Indian parent company or had to look for a buyer. Otherwise the company would be liquidated, the spokesperson added, the report relates. The report discloses that machines at the Saint-Didier-en-Velay plant have been at a standstill since March this year. According to trade union information, workers had been working short hours since December 2011, the report says. Biltube produces coreboard on a single machine and has a total of 34 employees. FCC PARIMMO: Fitch Affirms 'BBsf' Rating on Class M2 Notes ---------------------------------------------------------- Fitch Ratings has affirmed FCC Parimmo 07/02, FCC Partimmo 10/02, FCC Partimmo 05/03, FCC Partimmo 11/03, FCC Zebre One, FCC Zebre Two and FCC Zebre 2006-1 as follows: -- FCC Partimmo 07/02 - CDE9 class A affirmed at 'AAAsf'; Outlook Stable -- FCC Partimmo 10/02 - CDE10 class A affirmed at 'AAAsf'; Outlook Stable -- FCC Partimmo 05/03 - CDE11 part P affirmed at 'AAAsf'; Outlook Stable -- FCC Partimmo 11/03 - CDE12 part P affirmed at 'AAAsf'; Outlook Stable -- FCC Zebre One class A affirmed at 'AAAsf'; Outlook Stable -- FCC Zebre Two part P affirmed at 'AAAsf'; Outlook Stable -- FCC Zebre 2006-1 part P affirmed at 'AAAsf'; Outlook Stable -- FCC Zebre 2006-1 part M1 affirmed at 'BBBsf'; Outlook Stable -- FCC Zebre 2006-1 part M2 affirmed at 'BBsf'; Outlook Stable The ratings affirmations reflect the wide credit support available to the notes, as well as the stable performance the underlying pools have shown since inception. Notes issued in the FCC Partimmo (Partimmo) and FCC Zebre Series (Zebre) are backed by loans that have been originated by Credit Foncier de France (CFF; 'A+'/Negative/'F1+'). The Partimmo Series, Zebre One and Two comprise of senior class A notes, with credit enhancement provided by subordinated classes of unrated notes. Meanwhile, Zebre 2006-1 comprises three rated tranches and one subordinated, collateralized unrated note. The notes in the Partimmo Series and Zebre One redeem pro rata and are subject to a trigger that would switch the amortization to sequential once the subordinated notes' factor falls below 2%. The note amortization on Zebre Two and Zebre 2006-1 is purely sequential. All the transactions have a reserve fund that can be used to cover for both principal and interest shortfalls and they all currently remain on target. Due to the transactions' high deleveraging, the support provided by the reserve funds is in the range of 23.0% and 40.0%, with the exception of Zebre 2006-1 which has a reserve fund that is at 5.6% of the note balance. Loans with more than six missed installments are classified as defaulted and their outstanding balance is fully provisioned for using gross excess spread generated by the underlying pool. Transactions that were originated in 2002 are now highly deleveraged, with pool factors currently standing at 11.8% and 12.2% of the original balances of Partimmo 07/02 and 10/02 respectively. Due to the high seasoning of the underlying assets, cumulative gross defaults are increasing at a slow pace, with total defaults at 1.50% (Partimmo 07/02) and 1.29% (Partimmo 10/02) of the original portfolio balance. More recent transactions show slightly higher levels of cumulative defaults: 1.9%, 1.6%, 1.9%, 2.7% and 1.4% of initial balance of Partimmo 05/03, 11/03, Zebre One, Two and 2006-1 respectively. The excess spread generated by the pools has been sufficient to cover for period gross defaults that have occurred since close, thereby preventing reserve fund draws. In late 2008, some of the securitized floating rate loans were subject to modifications, some of which included a cap on the increase in rates for variable rate loans. The modifications made to the portfolios led to the amendment of the documentation to ensure that the selected loans remain eligible. In order to limit the level of risk exposure on M1 and M2 junior notes of Zebre 2006-1, CFF committed to paying the FCC any capital loss incurred as a result of the loan modification in certain interest and inflation rate scenarios. As a result, the notes are deemed to be dependent on the credit-worthiness of CFF which is why in Fitch's analysis of the transaction, these tranches are subject to a rating cap linked to CFF's Long-term rating. PAGESJAUNES GROUPE: Fitch Puts 'B' IDR on Rating Watch Negative --------------------------------------------------------------- Fitch Ratings has placed PagesJaunes Groupe S.A.'s (PagesJaunes) 'B' Issuer Default Rating on Rating Watch Negative (RWN). The agency has also placed PagesJaunes Finance & Co. S.C.A.'s senior secured notes rating of 'BB-'/'RR2' on RWN. The RWN is driven by the lengthy extension request process and the appointment of a 'mandataire ad-hoc' by the issuer to get the required debt extension approval levels from lenders. Fitch recognises that PagesJaunes' business fundamentals have not materially changed since the agency downgraded it on 8 May 2012. Fitch also views as positive some elements introduced in the current extension proposals, such as the dividend restriction until the net debt leverage reduces to below 3.0x and the amortization of the term loan A1 and cash flow sweep for term loan A3. In Fitch's view if the mandataire process fails to resolve the difficulties between the company and its lenders, PagesJaunes may have little choice other than to seek further legal redress through a non-consensual process. This could lead to a multiple notch downgrade. What Could Trigger A Rating Action? Future developments that may, individually or collectively, lead to negative rating action include: -- Inability to reach an agreement with the help of the mandataire (one or several notches downgrade) -- Funds from operations adjusted net leverage to increase above 5.5x for a sustained period of time following reduction in cash flows -- Significant reduction in internet revenue growth Future developments that may lead to a resolution of the RWN and Negative Outlook include: -- Successful implementation of the proposed extend and amend plan Future developments that may potentially lead to a resolution of the RWN and Stable Outlook include: -- Stabilization of cash flows for a sustainable period SPCM SA: S&P Affirms 'BB' Corp. Credit Rating; Outlook Positive --------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on France- based chemicals producer SPCM S.A. (SNF) to positive from stable. "At the same time we affirmed the long-term corporate credit rating on the company at 'BB' and all issue and recovery ratings. We also assigned a 'BB' issue rating to SNF's proposed EUR250 million senior unsecured notes, with a recovery rating of '4', indicating our expectation of average (30%-50%) recovery for creditors in the event of a payment default," S&P said. "The outlook revision reflects our view that our ratio of adjusted funds from operations to debt for SNF could remain at 25%-30% in 2012 and beyond. In addition, we think its quarterly EBITDA could stay close to its strong first-half 2012 level given its positioning on defensive and growing end-markets, such as polymers for water treatment (close to 50% of 2011 sales) and on the high-growth oil and gas segment (25%). We also factor in its limited exposure to Europe, which accounted for only 24% of 2011 sales, while North America contributed 49% and Asia 22%," S&P said. "The positive outlook reflects the potential for a one-notch upgrade within 12 months if SNF's EBITDA reaches around EUR250 million in 2012, and EUR230 million subsequently, and we gain further confidence that SNF will be able to post FFO to debt of about 25%-30% on a sustainable basis. The possible upgrade would also hinge on continued adequate liquidity and covenant leeway," S&P said. "We would revise the outlook to stable if financial debt increases significantly compared with end- June 2012 levels. A rise could be caused in our opinion by larger-than-anticipated working capital outflow, if quarterly EBITDA is materially lower than about EUR60 million under our base case, or if we believe financial covenant compliance may become tight within two or three years," S&P said. ============= G E R M A N Y ============= DAPD: Files for Insolvency Protection ------------------------------------- Deutsche Welle reports that German news agency dapd has filed for insolvency protection. According to Deutsche Welle, the agency has been struggling eversince it was founded three years ago. The German news agency companies "dapd nachrichtenagentur GmbH" and "dapd nachrichten GmbH" said on Tuesday that they can no longer perform payments and filed for self-administered insolvency, Deutsche Welle relates. The group announced in Berlin that six further dapd companies were to make similar filings on Thursday, Deutsche Welle notes. Deutsche Welle relates that administrator spokeswoman Brigitte von Haacke said the insolvency covers the news agency's eight divisions and its 299 employees. Ms. Von Haacke said the news agency had been losing money since its foundation and that the parent company had now stopped trying to plug its shortfalls, according to Deutsche Welle. NECKERMANN: Placed Into Liquidation; 2,000 Jobs Lost ---------------------------------------------------- Deutsche Welle reports that Neckermann was placed into liquidation on October 1. The insolvent company has been unable to find a suitable investor, and some 2,000 jobs will be slashed as a result, the report says. According to the report, Neckermann said insolvency laws would make that step unavoidable, although talks were currently continuing on a last-ditch solution. "Following months of negotiations with potential investors, no suitable investor has been found to match our requirements," Neckermann, as cited by Deutsche Welle, stated. Neckerman added that most of the 2,000 workers employed in the mail-order segment would be laid off by next month. It emphasized that endeavors were continuing to find work for many of them in other companies. Deutsche Welle notes the mail-order group had filed for insolvency in July after its owners, US investor Sun Capital Partners, refused to put up money for a large-scale restructuring scheme. Neckermann is a Germany-based mail-order retail group. NORDENIA HOLDINGS: Moody's Upgrades Legacy Bond Rating to 'Ba1' --------------------------------------------------------------- Moody's Investors Service upgraded the EUR280 million second priority notes issued by Nordenia Holdings GmbH to Ba1 from B2 following the acquisition of the Nordenia group by Mondi Plc (rated Baa3), which closed on October 1, 2012. Subsequently, the B1 Corporate Family Rating and Probability of Default Rating of Nordenia International AG have been withdrawn. There are no changes to Mondi's Baa3 issuer rating and senior unsecured bond rating with a stable outlook. Ratings Rationale The upgrade of Nordenia's legacy bond follows the acquisition of Nordenia by Mondi Group, and reflects the clearly better business and financial profile of Mondi Group as compared to Nordenia on a stand-alone basis. This is evidenced by Mondi's investment grade rating. The upgrade of the bond rating results from Moody's expectation of implicit parental support going forward, which should allow Nordenia to comfortably meet its financial obligations related to interest and principal payment on its bond. Nordenia will become the core of Mondi's newly created consumer packaging division, representing about 70% of divisional sales of pro forma EUR1.25 billion, with the Nordenia name being replaced with Mondi. In addition, Moody's understands that Nordenia could become a material subsidiary as per the definitions included in Mondi's bank documentation, which would result in a cross default of material parts of Mondi's financial debt, should Nordenia default under its bond obligations. As Mondi offers no guarantee for Nordenia's bond, the rating on the remaining Nordenia bond reflect a degree of structural subordination compared to other liabilities of the enlarged group; Nordenia's notes are supported by the assets and cash flows of Nordenia in the first instance. However, should over time Mondi decide to offer explicit parental support such as in the form of a guarantee, Moody's would likely align the legacy bond rating to the level of Mondi's senior unsecured indebtedness. Moody's notes that it is only able to maintain the ratings on Nordenia's notes as long as the company continues to provide audited financial and operating reports, sufficient to monitor the assets and operating performance of the issuer. Nordenia's indenture includes the requirement for the provision of such information. Should the company stop providing audited information, Moody's would have to withdraw the ratings on Nordenia's notes, unless explicit parental support is provided. At the time of the announcement of the transaction in July 2012, Moody's commented that the transaction is credit negative for Mondi because the increase in net debt by about EUR660 million as a result of the transaction will consume much of the headroom incorporated in its Baa3 rating. Moody's has therefore changed to stable from positive the outlook on Mondi's Baa3 rating in July 2012. Moody's noted however that despite the expected weakening of credit metrics, Mondi will remain solidly positioned in the Baa3 rating category with Debt/EBITDA pro forma for the acquisition of around 2.5x and RCF/Debt above 25%. The stable rating outlook on Mondi's Baa3 rating reflects Moody's expectation of a moderate weakening of financial metrics due to the incremental debt load as well as lower operating profitability of Mondi, reflecting weak industry conditions during the last months and continued low visibility for the second half of 2012. At the same time, driven by improving demand for most of the group's products as well as price increases implemented, these should help Mondi to improve operating profitability sequentially compared to H1 2012. Recently published half year results per June 2012 have been in line with Moody's expectation. An upgrade of Mondi's rating would require a track record of sustaining the improved profitability and cash flow generation as evidenced by EBITDA margins in the high teens, RCF/Debt towards 30% and leverage in terms of Debt/EBITDA close to 2x. A further important consideration will be the group's approach to cash usage going forward, in particular with regards to shareholder return and growth projects. Rating pressure could build were Mondi unable to sustain recent performance improvements as indicated by RCF/Debt trending to below 20%, EBITDA margins deteriorating towards 10% or should the group generate negative free cash flows. Upgrades: Issuer: Nordenia Holdings GmbH Senior Unsecured Regular Bond/Debenture, Upgraded to Ba1 from B2 Outlook Actions: Issuer: Nordenia Holdings GmbH Outlook, Changed To Stable From Rating Under Review Issuer: Nordenia International AG Outlook, Changed To Rating Withdrawn From Rating Under Review Withdrawals: Issuer: Nordenia Holdings GmbH Senior Unsecured Regular Bond/Debenture, Withdrawn, previously rated LGD4, 67% Issuer: Nordenia International AG Probability of Default Rating, Withdrawn, previously rated B1 Corporate Family Rating, Withdrawn, previously rated B1 The principal methodology used in rating Nordenia International AG, Nordenia Holdings GmbH and Mondi PLC was the Global Paper and Forest Products Industry Methodology published in September 2009. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Mondi is an integrated paper and packaging group which generated revenues of EUR5.6 billion in the last twelve months ending June 2012. The group is principally involved in the manufacture of packaging paper and converted packaging products, uncoated fine paper as well as specialty products. Mondi has production operations in 28 countries, with a focus on Northern and Eastern Europe, as well as South Africa, and employs about 23,400 people. NORDENIA INT'L: S&P Raises Corporate Credit Rating From 'B+' ------------------------------------------------------------ Standard & Poor's Ratings Services raised to 'BBB-' from 'B+' its long-term corporate credit rating on Germany-based flexible film and packaging manufacturer Nordenia International AG (Nordenia). "Additionally, we raised our issue rating on Nordenia's EUR280 million senior unsecured second-priority notes to 'BBB-' from 'B'," S&P said. "At the same time, we removed the ratings from CreditWatch, where they were placed with positive implications on July 11, 2012. The outlook is stable," S&P said. "We have also withdrawn our recovery rating on the notes, as we do not apply recovery ratings to investment-grade issues," S&P said. "The upgrade follows the announcement by paper and packaging producer Mondi Group (BBB-/Stable/--) that it has completed the acquisition of Nordenia. Mondi Group now owns almost 100% of Nordenia. Nordenia was previously majority-controlled by Los Angeles-based investment management company Oaktree Capital Management L.P. (A-/Stable/A-2)," S&P said. "Applying our corporate criteria on parent-subsidiary links, we have equalized our long-term corporate credit rating on Nordenia with that on Mondi Group. We see Nordenia as a core subsidiary of Mondi Group that is fully integrated into Mondi Group's operations, strategy, and management, and we understand that Nordenia will be renamed "Mondi Consumer Packaging International AG." "Nordenia is also integrated into its parent's liquidity, financing, and risk management policies. Mondi Group has not formally guaranteed the senior unsecured second-priority notes, but Nordenia will now count as a material subsidiary of Mondi Group under the cross-default clauses in Mondi Group's principal debt facilities," S&P said. "Our rating on Nordenia also reflects our assessment of Nordenia's business risk profile as 'fair' and its financial risk profile as 'aggressive,'" S&P said. The stable outlook on Nordenia mirrors that on Mondi Group. "It also factors in our assumption that Nordenia will remain a key operating unit of Mondi Group. Any rating action we might take on Mondi Group, including an outlook revision, would lead to a simultaneous and identical change on the ratings and outlook on Nordenia. We might also consider a negative rating action on Nordenia if its core position in Mondi Group weakens," S&P said. ============= I R E L A N D ============= LET'S DO: Seeks Government Bail-Out; Faces Liquidation ------------------------------------------------------ Enda Cunningham at the Galway City Tribune reports that the organisers of the Volvo Ocean Race grand finale in Galway have sought a government bail-out to help pay off the EUR400,000 they owe to about 60 suppliers. And Let's Do It Global has said it cannot guarantee all creditors will be paid, and conceded the company could be threatened with liquidation, the report says. The Galway City Tribune said around EUR400,000 is owed to between 50 and 60 suppliers in amounts ranging from several hundred euro up to around EUR40,000. The report notes Failte Ireland has already refused a bailout, and a total of up to EUR300,000 is now being sought from the Department of Transport and Tourism and Dept of Agriculture, Food and the Marine. According to the report, one disgruntled creditor -- Alan Collins from 'Exhibit A Displays' in Tralee -- claims he was told his invoice for almost EUR10,000 would "go to the bottom of the pile" after he printed up a 25ft wide trailer sign. John Killeen, Chairman of Let's Do It Global (LDIG) told the Galway City Tribune, "We owe around EUR400,000 and we are owed EUR170,000 ourselves. We're working hard to balance things, and we have to collect everything in before we pay out. We can't give preferential treatment to any creditors. "If people come looking for money, demanding it, they may go into court and then yes, the company could be liquidated. Our ambition is to pay all the bills." =================== K A Z A K H S T A N =================== BTA BANK: Enters Into Restructuring Agreement with Creditors ------------------------------------------------------------ Nariman Gizitdinov at Bloomberg News reports that BTA Bank said it reached a "non-binding" agreement with creditors on restructuring US$11.2 billion of liabilities. According to Bloomberg, a statement e-mailed on Wednesday said that the agreement with the creditors' committee to swap existing debt for new notes and cash didn't include Nomura International. "The bank will receive considerable debt relief from its creditors holding senior notes, recovery units and original issue discount notes and various classes of subordinated debt," Bloomberg quotes the Almaty-based lender as saying in the statement. The deal will "help ensure the viability of the bank." State-run BTA failed to make an interest payment on its July 2018 dollar bonds in January and later halted all payments on US$5.2 billion of its recovery units, which creditors accepted in 2010 as part of a restructuring accord, Bloomberg discloses. Kazakh sovereign-wealth fund Samruk-Kazyna took over BTA in February 2009, two months before the nation's largest lender at the time defaulted on US$12 billion of debt, Bloomberg recounts. BTA, which won 92% creditor approval for a restructuring plan in May 2010, initially sought an agreement on its second debt overhaul by September, Bloomberg says, citing a presentation published on its Web site. About BTA Bank BTA Bank AO (BTA Bank JSC), formerly Bank TuranAlem AO -- http://bta.kz/-- is a Kazakhstan-based financial institution, which is involved in the provision of banking and financial products for private and corporate clients. The BTA Group is one of the leading banking groups in the Commonwealth of Independent States and has affiliated banks in Russia, Ukraine, Belarus, Georgia, Armenia, Kyrgyzstan and Turkey. In addition, the Bank maintains representative offices in Russia, Ukraine, China, the United Arab Emirates and the United Kingdom. The Bank has no branch or agency in the United States, and its primary assets in the United States consist of balances in accounts with correspondent banks in New York City. As of November 30, 2009, the Bank employed 5,043 people inside and 4 people outside Kazakhstan. It has no employees in the United States. Most of the Bank's assets, and nearly all its tangible assets, are located in Kazakhstan. JSC BTA Bank, also known as BTA Bank of Kazakhstan, commenced insolvency proceedings in the Specialized Financial Court of Almaty City, Republic of Kazakhstan. Anvar Galimullaevich Saidenov, the Chairman of the Management Board of BTA Bank, then filed a Chapter 15 petition (Bankr. S.D.N.Y. Case No. 10-10638) on Feb. 4, 2010, estimating more than US$1 billion in assets and debts. On March 9, 2010, the Troubled Company Reporter-Europe reported that JSC BTA Bank was granted relief in the U.S. under Chapter 15 when the bankruptcy judge in New York recognized the Kazakh proceeding as the "foreign main proceeding." Consequently, creditor actions in the U.S. were permanently halted, forcing creditors to prosecute their claims and receive distributions in Kazakhstan. In the U.S., the Foreign Representative is represented by Evan C. Hollander, Esq., Douglas P. Baumstein, Esq., and Richard A. Graham, Esq. at White & Case LLP in New York City. The Specialized Financial Court of Almaty approved BTA Bank's debt restructuring on Aug. 31, 2010, trimming its obligations from US$16.7 billion to US$4.2 billion, and extending its longest maturity dates to 20 year from eight. Creditors who hold 92 percent of BTA's debt approved the restructuring plan in May. BTA reportedly distributed US$945 million in cash to creditors and new debt securities including US$5.2 billion of recovery units (representing an 18.5% equity stake) and US$2.3 billion of senior notes on Sept. 1, 2010. BTA forecasts profit of slightly more than US$100 million in 2011, Chief Executive Officer Anvar Saidenov told reporters in Almaty. =================== L U X E M B O U R G =================== BOSTON LUXEMBOURG: S&P Assigns 'B' Long-Term Corp. Credit Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' long-term corporate credit rating to Boston Luxembourg II S.a.r.l., the parent company of Germany-based health care group BSN Medical (collectively, BSN). The outlook is stable. At the same time, S&P assigned its 'B+' issue rating to these BSN loans and facilities: $280 million (EUR225 million) senior secured term loan B1 (due 2019), EUR454.5 million senior secured term loan B2 (due 2019), A$72.18 million (EUR60 million) senior secured term loan B3 (due 2019), EUR50 million revolving credit facility (due 2019), and EUR125 million acquisition facility (due 2019). The recovery rating on these facilities is '2', indicating S&P's expectation of "substantial" (70%-90%) recovery in the event of a payment default. "The ratings reflect our view of BSN's relatively aggressive capital structure following the leveraged buyout by private equity group EQT VI Ltd.," S&P said. "We assess BSN's financial risk profile as 'highly leveraged' under our criteria. Based on the new capital structure, we estimate that BSN will have a Standard & Poor's-adjusted net debt-to-EBITDA ratio of about 9.7x by Dec. 31, 2013. Our adjusted debt estimate includes financial debt of EUR1,131 million; EUR553 million in the form of a shareholder loan; and about EUR42 million and EUR14 million of obligations under operating leases and pensions," S&P said. "Although we view the shareholder loan as debt-like, we recognize its cash-preserving function. Excluding this debt-like instrument, BSN's financial risk profile would still be classed as 'highly leveraged,' with debt to EBITDA of about 6.1x by Dec. 31, 2013. However, we estimate that the group should be able to generate free operating cash flow (FOCF) of at least EUR50 million per year and that the embedded cash flow sweep in the proposed debt structure could gradually reduce the amount of debt that pays interest in cash," S&P said. "Under our base-case scenario, we estimate BSN will achieve adjusted EBITDA of at least EUR178 million in 2012 and EUR185 million in 2013. This will cover annual cash interest payments of about EUR75 million to EUR77 million by 2.2x to 2.3x, supported by positive FOCF," S&P said. "The stable outlook reflects our view that BSN will sustain positive underlying revenue growth while at least maintaining its operating performance momentum, despite the potentially negative effects of governments' public spending cuts to health care. Moreover, maintaining the rating depends on the group upholding a financial profile commensurate with the rating. We view adjusted EBITDA cash interest coverage of about 2x and positive cash flow generation as commensurate with the 'B' rating," S&P said. "We could take a negative rating action if adjusted EBITDA interest coverage were to drop below 2x, or if BSN proves unable to generate positive FOCF. This would most likely be caused by deteriorating operating margins due to an inability to innovate and pass on price increases, or by higher-than-expected increases in interest rates," S&P said. "In our opinion, a positive rating action is unlikely over the next 12-18 months due to BSN's high adjusted leverage. However, we would take a positive rating action should the group demonstrate that it can achieve and maintain EBITDA cash interest coverage of above 3x and generate FOCF above EUR70 million per year," S&P said. CHC HELICOPTER: Moody's Rates US$200-Mil. Sr. Secured Notes 'B2' ---------------------------------------------------------------- Moody's Investors Service assigned a B2 rating to CHC Helicopter S.A.'s proposed US$200 million senior secured first lien notes. CHC Helicopter S.A. is a subsidiary of 6922767 Holding S.a.r.l. (collectively CHC). Moody's affirmed both the B2 rating on CHC Helicopter S.A.'s US$1.1 billion senior secured first lien notes and the Ba2 rating on its US$375 million super-senior secured revolving credit facility. The B2 Corporate Family Rating (CFR) and Probability of Default Rating were also affirmed. A Speculative Grade Liquidity rating of SGL-3 was assigned and the rating outlook was changed to stable from negative. The proceeds of the notes will be used to reduce borrowings under the company's revolving credit facility. "Moody's changed CHC's rating outlook to stable reflecting the company's improved operating performance and decreased leverage," said Terry Marshall, Moody's Senior Vice President. "We expect the company to continue to grow its EBITDA through its focus on both costs and profitable new contracts." Assignments: Issuer: 6922767 Holding S.a.r.l. Speculative Grade Liquidity Rating, Assigned SGL-3 Issuer: CHC Helicopter S.A. Senior Secured Regular Bond/Debenture, Assigned a range of 53 - LGD4; B2 Outlook Actions: Issuer: 6922767 Holding S.a.r.l. Outlook, Changed To Stable From Negative Issuer: CHC Helicopter S.A. Outlook, Changed To Stable From Negative Ratings Rationale The B2 CFR reflects CHC's high leverage, a complex portfolio of aircraft operating lease agreements, a complex corporate structure and inherent cyclicality in the oil and gas services sector. The B2 CFR favorably reflects CHC's longstanding customer relationships and four to five year contracts with highly rated oil and gas companies in its offshore oil & gas flying business, which comprises about 80% of revenue, and the government contracts in the search and rescue (SAR) and emergency medical services businesses. The rating also considers CHC's large fleet of high quality medium and heavy aircraft, its geographic diversity, and that approximately 68% of CHC's flying revenue is derived from fixed monthly fees. The Ba2 rated senior secured revolving credit facilities are rated Ba2, three notches higher than the CFR of B2 under Moody's Loss Given Default (LGD) Methodology. The secured credit facilities benefit from their prior ranking to the US$1,300 million senior secured notes, which are rated at the B2 Corporate Family Rating. The SGL-3 rating reflects adequate liquidity. Pro-forma for the US$200 million October 2012 notes issuance, the company will have approximately US$50 million of cash and $300 million available, after US$70 million of letters of credit, under its US$375 million revolving credit facility, which matures in October 2015. Moody's estimates that the company will consume negative free cash flow of about US$125 million through mid-2013, which will be funded with revolver drawings and the proceeds of aircraft disposals. The revolver has one financial covenant (maximum super senior debt/EBITDA of 2.5x), with which the company should be comfortably in compliance through mid-2013. However, the company has restrictive covenants on its aircraft leases, with which Moody's also expects compliance through mid-2013, but at much narrower margins than on the sole financial covenant. CHC's liquidity is enhanced by its ability to sell certain aircraft for value in excess of the lease buyout payments as the leases for these aircraft expire. The stable outlook reflects CHC's longstanding customer relationships and four to five year contracts with highly rated oil and gas companies, and leadership position in the helicopter transportation industry. A rating upgrade would be dependent on leverage trending toward the 5.5x range and a forward view of two to three years of stability in the company's lease portfolio. The rating could be downgraded if leverage appears to be headed above 7x or if the company again finds itself requiring multiple covenant amendments and waivers, or if liquidity is strained. The principal methodology used in rating CHC was the Global Oilfield Services Industry Rating Methodology published in December 2009. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. CHC, headquartered in Vancouver, British Columbia, is a significant provider of helicopter services to the global offshore exploration and production industry with operations in approximately 30 countries. ===================== N E T H E R L A N D S ===================== STORM 2012-V: Fitch Assigns 'BB+sf(EXP)' Rating to Class D Notes ---------------------------------------------------------------- Fitch Ratings has assigned STORM 2012-V B.V.'s notes expected ratings, as follows: -- EUR1,500,000,000 floating-rate senior class A mortgage- backed notes: 'AAAsf(EXP)'; Outlook Stable -- EUR29,100,000 floating-rate mezzanine class B mortgage- backed notes: 'AA-sf(EXP)'; Outlook Stable -- EUR23,800,000 floating-rate mezzanine class C mortgage- backed notes: 'BBB+sf(EXP)'; Outlook Stable -- EUR26,800,000 floating-rate junior class D mortgage-backed notes: 'BB+sf(EXP)'; Outlook Stable -- EUR15,800,000 floating-rate non-collateralized class E notes: 'BBsf(EXP)'; Outlook Stable The expected ratings are based on Fitch's assessment of the underlying collateral, available credit enhancement, the origination and underwriting procedures used by the seller and the servicer and the transaction's sound legal structure. Final ratings are subject to receipt of final documents conforming to information already received. This transaction is a true sale securitization of Dutch residential mortgage loans, originated and sold by Obvion N.V. (not rated). Since 10 May 2012, Obvion has been 100% owned by Rabobank Group ('AA'/Stable/'F1+') and has an established track record as a mortgage lender and issuer of securitizations in the Netherlands. This is the 22nd transaction issued under the STORM series since 2003. Credit enhancement for the class A notes is 6.0%, which is provided by subordination and a non-amortizing reserve fund equal to 1.0% at closing. The transaction benefits from an amortizing liquidity facility of 2.0% at closing, a build-up of the reserve fund to 1.3% and an interest rate swap providing an excess margin of 50 basis points. The transaction is backed by a 3.5 year seasoned non-revolving portfolio consisting of prime residential mortgage loans with a weighted-average (WA) original loan-to-market-value of 86.1% and a WA debt-to-income ratio of 30.6%, both of which are typical for Fitch-rated Dutch RMBS transactions. The provisional pool composition is similar to the previous STORM transactions. The purchase of further advances into the pool is allowed after closing subject to stringent conditions. Both the STORM series and Obvion's loan book have shown stable performance in terms of arrears and losses. The 90+ days arrears of the previous Fitch-rated transactions have been mostly lower than the Dutch Index throughout the life of the deals. Rabobank fulfils a number of roles, including collection account provider, guaranteed investment contract provider, liquidity facility provider and commingling guarantor and therefore this transaction relies strongly on the creditworthiness of Rabobank. In addition, Rabobank acts as back-up swap counterparty through its London branch. Fitch considers that the swap provides a certain degree of liquidity and credit support in this transaction and the replacement of the swap would likely be at a high cost, due to the nature of the swap structure, which in turn may affect the interest waterfall. Although the notification trigger is set below the 'A' level, the agency did not consider the risk of a loss of funds due to commingling or disruption of payments in the cash flow analysis, as Fitch considers that this risk is mitigated by means of a commingling guarantee provided by Rabobank. In addition, the transaction is not exposed to the risk of deposit set-off or other claims. Fitch judges further set-off risks in this transaction to be minimal due to the structural mitigants in place in relation to construction deposit, savings and investment set-off as well as the limited proportion of insurance loans included in the provisional portfolio. For the 6.5% insurance loans included in the provisional pool Fitch incorporated in its analysis the risk that borrowers might exercise set-off following the failure of insurance providers. Obvion provided Fitch with loan-by-loan information on the provisional portfolio as of 31 August 2012. All of the data fields included in the pool cut were of good quality and Obvion provided additional information for mortgage loans based on the income of two borrowers. Fitch reviewed an Agreed Upon Procedures report regarding the data provided by the arranger. The agency believes the sample size, the relevance of the tested fields, and the limited number of material error findings suggests the originator provided an acceptable quality of data. In addition, Fitch relied on its own file review undertaken for a prior transaction (STORM 2012-IV) on 25 July 2012, which consisted of 15 loans selected from the provisional transaction portfolio. This was considered a very good proxy for STORM 2012- V, given the similar asset characteristics and recent timing. The agency discovered no errors or unexpected results. Fitch relied on repossession data that represented loans foreclosed between 2004 and 2010. Further foreclosure data was also provided up to 2012, although the omission of original valuation information reduced the usefulness of this data set. Based on the repossession data analysis, the performance was in line with Fitch's assumptions; therefore, Fitch did not adjust its QSA, market value decline or foreclosure timing assumptions. To analyze the CE levels, Fitch evaluated the collateral using its default model, details of which can be found in the reports entitled "EMEA Residential Mortgage Loss Criteria", dated 7 June 2012, "EMEA RMBS Criteria Addendum -- Netherlands", dated 14 June 2012, available at www.fitchratings.com. The agency assessed the transaction cash flows using default and loss severity assumptions under various structural stresses including prepayment speeds and interest rate scenarios. The cash flow tests showed that each class of notes could withstand loan losses at a level corresponding to the related stress scenario without incurring any principal loss or interest shortfall and can retire principal by the legal final maturity. =========== P O L A N D =========== PNI: Seeks Restructuring Loan with ARP -------------------------------------- Polska Agencja Prasowa reports that PNI, Budimex's insolvent rail infrastructure unit, filed a motion for a restructuring loan with the state agency ARP, which is also considered as a potential investor for the unit. "To me, the ARP would be a perfect investor but I don't know if there is such a possibility," PAP quotes Budimex CEO Dariusz Blocher as saying, adding that the amount sought was insignificant. "We could look for an investor for all or a part of PNI shares." "For now there haven't been any real proposals from the market." Budimex is considering various options for PNI, such as selling a partial or the entire stake to the ARP or to a sector investor, PAP notes. According to PAP, a potential sale of PNI would require approval from PNI's previous owner, state railways PKP PLK. "If we were to let an investor in the company, it seems to me that such an approval from the seller would be secured," Mr. Blocher, as cited by PAP, said, adding that any decisions will be made only after PNI arrives at an agreement with its creditors. In late August, the unit filed for bankruptcy protection for debt restructuring, PAP recounts. ============= R O M A N I A ============= ASMITA GARDENS: Bucharest Court Approves Reorganization Plan ------------------------------------------------------------ SeeNews reports that Asmita Gardens's court-appointed administrator said on Tuesday a Bucharest court has approved the reorganization plan of the insolvent company. According to SeeNews, Euro Insol said in a statement that under the reorganization plan, Asmita Gardens will pay all its debts to the state budget before reimbursing other creditors. The court declared Asmita Gardens insolvent in November, 2011, following a request filed by its main creditor, AGI RRE, SeeNews recounts. SeeNews notes that data from the country's finance ministry showed Asmita Gardens posted a net loss of RON183.5 million (US$52.4 million/EUR40.5 million) in 2011 on a turnover of RON13.5 million. Asmita Gardens is a Romanian real estate developer. HIDROELECTRICA SA: Government Mulls IPO After Insolvency Exit ------------------------------------------------------------- Florentina Dragu at Ziarul Financiar reports that Romania's government plans to launch an initial public offering for a 10% stake in state-run hydropower producer Hidrolectrica within four months after the company exits insolvency. As reported by the Troubled Company Reporter-Europe on June 22, 2012, Bloomberg News related that a Romanian court approved the insolvency of Hidroelectica as the company looks to reorganize itself. Hidroelectrica SA is a Romanian state-owned hydropower producer. ========= S P A I N ========= ALTECO GESTION: Files for Creditor Protection in Madrid Court ------------------------------------------------------------- Simon Packard at Bloomberg News reports that Alteco Gestion & Promocio de Marcas SL, investment companies controlling 31% of the shares of Gecina SA, filed for creditor protection in Spain. According to Bloomberg, a court official said that Alteco Gestion & Promocio de Marcas SL, owned by former Gecina Chairman and Chief Executive Officer Joaquin Rivero, sought protection from creditors on Sept. 25 and the case will be heard by a Madrid mercantile court. The official, as cited by Bloomberg, said that a petition filed the same day by MAG Import SL, owned by Victoria Soler and her husband, will be overseen by a separate mercantile court in the Spanish capital. Mr. Rivero and the Soler family are two of Gecina's three largest shareholders, with a 16% stake and a 15% stake in the Paris-based company, respectively, Bloomberg discloses. They confirmed the filings in an e-mailed statement on Wednesday, adding that it was the result of differences with their banks, Bloomberg notes. Mr. Rivero and the Soler family said in the statement that the shares were collateral for EUR2.16 billion (US$2.8 billion) of loans provided by about a dozen European banks, 25% of which have been paid back, Bloomberg relates. AYT COLATERALES I: S&P Raises Rating on Class C Notes to 'B' ------------------------------------------------------------ Standard & Poor's Ratings Services affirmed and removed from CreditWatch negative its credit rating on AyT Colaterales Global Hipotecario FTA Caja Circulo I's (Caja Circulo I) class A notes. "At the same time, we have raised our rating on the class C notes and affirmed our ratings on the class B and D notes," S&P said. "The rating actions follow the amendments to the transaction account and swap agreements, which now reflect our 2012 counterparty criteria," S&P said. "On March 29, 2012, we lowered and kept on CreditWatch negative our rating on the class A notes to the same level as our then 'A- ' long-term issuer credit rating (ICR) on Confederacion Espanola de Cajas de Ahorros' (CECA; BBB-/Stable/A-3), the transaction account provider and swap counterparty. The downgrade was due to the breach of remedy action triggers in both the transaction account and swap agreements," S&P said. "In our March 2012 review, given the lack of remedy action by CECA as the transaction account provider and swap counterparty, we considered in our analysis that there was no replacement framework in place -- in accordance with our (superseded) 2010 counterparty criteria. As a result, the maximum rating that the notes in this transaction could achieve was equal to our long- term ICR on CECA, which was on CreditWatch negative at the time," S&P said. "On April 30, 2012, we lowered to BBB-/Stable/A-3 from BBB/Stable/A-2 our rating on CECA. Since then, on Sept. 26, 2012, Banco Bilbao Vizcaya Argentaria S.A. (BBVA) replaced CECA as transaction account provider, while CECA remains the swap provider," S&P said. "At the same time, BBVA amended the transaction account agreements, which now reflects our 2012 counterparty criteria. As a result, our ICR on the transaction account provider no longer constrains our ratings in this transaction," S&P said. "On Sept. 26, 2012, CECA also amended the downgrade language in the swap agreements, which now reflect our 2012 counterparty criteria. However, because CECA (as swap counterparty) has not posted collateral, under our 2012 counterparty criteria, the maximum rating that the notes in this transaction could achieve is equal to our long-term ICR on the swap counterparty. Therefore we have conducted our cash flow analysis assuming that the transaction does not benefit from any support under the swap agreement," S&P said. "Based on the latest available trustee investor report (dated May 2012), the proportion of the underlying collateral in 90+ day arrears out of the outstanding pool balance is low at 1.48%, while defaults are at 0.92%. Based on the May 2012 trustee investor report, the ratio of cumulative defaults (defined in this transaction as loans delinquent for more than 18 months) over the original loan balance was 1.05%, compared with 0.36% in Q4 2010 (which was the most recent information we held when we first rated the transaction), and therefore well below the first trigger level of 5.00% for the class D notes," S&P said. "A cash reserve provides credit enhancement for the class A notes. As the balance of the class A notes decreases through sequential amortization, subordinated tranches increasingly support the class A, B, and C notes. Additionally, when we first rated this transaction on Feb. 3, 2011, the issuer had partially drawn on the reserve fund to cover collateral loans that had defaulted since closing in March 2008. Since the May 2011 interest payment date, the reserve fund has been partially replenished and is at 95.73% of the level required by the transaction documents," S&P said. "Even without the benefit of the swap, the class A notes can achieve a 'A- (sf)' rating under our 2012 counterparty criteria because of the high seasoning of the collateral in this transaction and the increased level of credit enhancement available to these notes. Therefore, we have affirmed and removed from CreditWatch negative our 'A- (sf)' rating on the class A notes," S&P said. "Our credit and cash flow analysis indicates that the level of credit enhancement available to the class C notes is now commensurate with a higher rating than currently assigned. We have therefore raised to s'B (sf)' from 'CCC+ (sf)' our rating on the class C notes for performance reasons. In our opinion, the level of credit enhancement available to the class B and D notes is commensurate with the current ratings on these notes. We have therefore affirmed our 'BB (sf)' rating on the class B notes and our 'CCC (sf)' rating on the class D notes," S&P said. "Caja Circulo I is a Spanish residential mortgage-backed securities (RMBS) transaction that closed in March 2008, which we first rated in February 2011. Caja de Ahorros y Monte de Piedad del C�rculo Cat�lico de Obreros de Burgos (Caja C�rculo) originated the underlying loans secured by Spanish mortgages. More than 74% of the mortgages are concentrated in the Castilla- Leon region," S&P said. STANDARD & POOR'S 17G-7 DISCLOSURE REPORT SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities. The Rule applies to in-scope securities initially rated (including preliminary ratings) on or after Sept. 26, 2011. If applicable, the Standard & Poor's 17g-7 Disclosure Report included in this credit rating report is available at: http://standardandpoorsdisclosure-17g7.com RATINGS LIST Class Rating To From AyT Colaterales Global Hipotecario FTA Caja Circulo I EUR150 Million Mortgage-Backed Floating-Rate Notes Rating Affirmed and Removed From CreditWatch Negative A A- (sf) A- (sf)/Watch Neg Rating Raised C B (sf) CCC+ (sf) Ratings Affirmed B BB (sf) D CCC (sf) =========== S W E D E N =========== SAAB AUTOMOBILE: Spyker to Dispute GM's Dismissal of Claim ---------------------------------------------------------- Christina Zander at Dow Jones Newswires reports that Dutch sports-car maker and former owner of bankrupt Swedish brand Saab Automobile AB, Spyker N.V., said Monday it will oppose General Motors Co.'s dismissal of a lawsuit in which Spyker is seeking US$3 billion in damages claiming the US automaker deliberately caused Saab Automobile to go bankrupt. Dow Jones relates that Spyker said it and Saab Automobile AB shall oppose GM's dismissal of their claim on Nov. 9, 2012, assuming the court grants an extension to which GM has agreed. Spyker and Saab Automobile AB filed a complaint on Aug. 6 with the U.S. District Court for the Eastern District of Michigan, seeking redress for GM's "tortuous interference" with a transaction between Saab Automobile AB, Spyker and Chinese investor Youngman, Dow Jones relates. Spyker claims GM's "interference" drove Saab Automobile into bankruptcy in December 2011, Dow Jones discloses. GM argues, according to Spyker, that under Swedish law, which according to GM should apply, there is no cause for action for a "purely financial loss due to tortuous interference, absent an allegation of criminal conduct," Dow Jones cites. Spyker, as noted by Dow Jones, said GM also argues that the complaint should also fail if New York law or Michigan law is applied. Dow Jones adds that GM argues that under the Vehicle Supply Agreement, VSA, and the Automotive Technology License Agreement, ATLA, it had a contractual right to terminate the VSA and ATLA in case of a change of control in Saab and that after its investment Youngman would have controlled more than 20% of Saab, which would have caused a "change of control." Saab Automobile AB, Saab Automobile Tools AB and Saab Powertain AB filed for bankruptcy on Dec. 19, 2011, after running out of cash. =========== T U R K E Y =========== ORA ISTANBUL: Creditors Seek Bankruptcy --------------------------------------- Benjamin Harvey at Bloomberg News, citing Hurriyet newspaper, reports that creditors of Ora Istanbul Mall in Bayrampasa request bankruptcy in expectation of liquidation of assets, Hurriyet newspaper says without citing anyone. According to Bloomberg, Hurriyet said that owner Ora Istanbul Gayrimenkul Yatirim & Gelistirme AS received EUR285 million loan from state-run TC Ziraat Bankasi AS to finance the mall. The US$400 million mall opened in October 2011, Bloomberg relates. The last of 235 stores shuttered last month, Bloomberg recounts. =========================== U N I T E D K I N G D O M =========================== DHILLON GROUP: Four Hotels Falls Into Administration ---------------------------------------------------- Janet Harmer at Caterer and Hotelkeeper reports that the Crown Inn in Amersham, Buckinghamshire, has gone into administration. The hotel is one of four properties, previously operated by the Dhillon Group, which have now been taken over by administrators BDO, according to Caterer and Hotelkeeper. Alongside the Crown Inn, a Grade II-listed property dating back to the 16th century, they include the 32-bedroom Liongate hotel in Kingston-upon- Thames, the 48-bedroom Olde Bell in Hurley-on-Thames and the 200- bedroom Paragon hotel in Birmingham, the report notes. The report says that all staff are to be retained by the four hotels, which will continue to operate while their future is considered. "Unfortunately, the economic climate and difficult trading conditions have adversely affected these hotels . . . . It is business as usual for the Liongate, Crown Inn, the Olde Bell and the Paragon - all room and venue bookings will carry on as planned. Customers seeking further information should contact the hotel managers with any queries," the report quoted Sarah Rayment, BDO business restructuring partner, as saying. The report says that a former sister hotel of the four properties -- the 40-bedroom Stoke Place hotel in Stoke Poges -- is unaffected by the administration and continues to be operated by the founders of the Dhillon Group, Tej and Sarina Dhillon. HARDMAN ISHERWOOD: Goes Into Administration With HI Group ---------------------------------------------------------- DIY Week reports that Hardman Isherwood has gone into administration, along with its parent HI Group and a number of the group's other subsidiaries. Tough market and resulting problems with cash flow have been blamed on the failure of the group and its eight companies, according to DIY Week. The report notes that sales at the company fell from almost GBP33 million in 2008/09 to GBP25.9 million in 2010/11. The other HI Group subsidiaries in administration are: -- Crown Corporation (UK); -- Fridgemaster Corporation; -- Frigidaire Consolidated; -- HI International; -- HI Investments; -- Independent Service (Domestic Appliances); and -- Whitwood Warehouse. The report discloses that Hi-Way Express Home Delivery has been sold to Pacifica Group, an electrical repair, warranty and servicing company based in the north east. "In recent years, the group has suffered from challenging market conditions which has seriously impacted the group's white goods business. As a result, turnover has declined, resulting in severe cash flow difficulties," the report quoted Sam Woodward, joint administrator from Ernst & Young LLP, as saying. The report discloses that Ernst & Young has made 109 redundancies as a result of the administration, and is now seeking offers for the remaining parts of the group. Hardman Isherwood distributes electrical products across the UK. Based in Normanton, West Yorkshire, HI Group is a family business set up over 35 years ago which primarily imports and distributes electrical consumer products - mainly white goods - to the retail market. HILL INSURANCE: Put Into Liquidation ------------------------------------ Insurance Times reports that Hill Insurance Company is in liquidation, the second insurer to collapse in just a few weeks in Gibraltar. Court documents for the winding-up of the company, obtained by Insurance Times, reveal the bonds it used as shareholders' equity were either "non-existent or did not belong to the company". Insurance Times notes that Hill's Web site said it had been the victim of "serious external fraud". Hill Insurance, which underwrote aviation and surety bonds, has a license to operate in Italy, Bulgaria and the UK, Insurance Times discloses. Hill Insurance, as cited by Insurance Times, said it was working with the Gibraltar Financial Services Commission to establish the facts of the case and was co-operating with the relevant authorities. Hill Insurance was put into liquidation by the Supreme Court of Gibraltar last month and Deloitte was appointed as provisional liquidator, Insurance Times recounts. LEMMA EUROPE: High Court Appoints Provisional Liquidator -------------------------------------------------------- Dominique Searle at Gibraltar Chronicle reports that Lemma Europe Insurance Company Ltd has been handed to a provisional liquidator, GrantThornton, after the Supreme Court of Gibraltar found it to be bankrupt. The judge said she was sensitive to the interests of the policyholders and Gibraltar's reputation as a finance centre. The Chronicle says the Gibraltar Financial Services Commission which made the uncontested application for winding up revealed in court that it has sent Sergei Chernyshov, Lemma Europe's owner sole director, a preliminary note to the effect that it is considering declaring him unfit and not proper person to own or direct companies. This said lawyer Peter Caruana QC was being done on the grounds of "honesty and integrity". That is understood to mainly relate to the alleged failure of parent company Lemma Ukraine, also owned by Mr Chernyshov, to honour reinsurance payments to Lemma Europe. Mr. Chernyshov, who had a watching brief in court, has 30 days to contest that, the Chronicle notes. Lemma Europe Insurance Company Ltd is a Gibraltar-based insurer. NORTHWOOD ENVIRONMENTAL: In Administration, Cuts 65 Jobs -------------------------------------------------------- Swindon Advertiser reports that a recycling firm Northwood Environmental closed down its operations after falling into administration, cutting 65 jobs in the process. The company was being put into liquidation and they were being made redundant on the spot, according to Swindon Advertiser. Swindon Advertiser notes that the enterprise, set up for young people out of work, training or education, failed to pay staff with some having gone two months without wages. The report says that managers at the company, in the Hawksworth Industrial Estate, have also not been paid. The firm's MD, James Jennings, has blamed a customer of Northwood for triggering its downfall by defaulting on payments, the report notes. PIPE HOLDINGS: Moody's Affirms 'B2' Corp. Family Rating ------------------------------------------------------- Moody's Investors Service has affirmed Pipe Holdings 2 Ltd's B2 corporate family rating (CFR) as well as the B3 rating on the GBP150 million senior secured notes issued by Pipe Holdings plc. Concurrently, Moody's has changed the outlook on Polypipe's ratings to stable from positive. Ratings Rationale Polypipe's B2 CFR continues to reflect (1) the company's leading market position in the U.K.; (2) its exposure to the more stable repair, maintenance and improvement (RMI) sub-sector; and (3) its long-dated debt maturity profile, removing immediate refinancing risk. However, Polypipe's rating remains constrained by (1) the company's small scale in a competitive market; (2) the ongoing cyclicality in its end markets; (3) the company's lack of segmental and geographic diversification as it derives most of its revenues from plastic pipe systems in the U.K.; and (4) its exposure to volatile raw material costs. "The stabilization of the outlook reflects Moody's belief that Polypipe could be challenged to repeat its strong first half 2012 performance", says Margaux Pery, analyst at Moody's. Therefore, an upgrade of Polypipe's ratings has become unlikely in the short term. Polypipe's EBITDA margin increased to 16.7% in the first half of 2012, up from 13.0% in H1 2011. However, the higher operating margin has been achieved mainly through selling price increases catching up raw material cost inflation from the previous year. The rating agency cautions that Polypipe may be challenged to pass on additional prices increases in the near term given that previous polymer cost increases have already been recovered and given the time lag in implementing price increases. In addition, as the outlook on the U.K. construction market remains dull, Moody's expects that the company will continue to face subdued sales volumes especially in its commercial and infrastructure division which is less exposed to the more stable RMI sub-sector. Therefore, Moody's believes that Polypipe could be challenged in 2013 to maintain its operating performance at the same level as in the first half of 2012. Moody's deems Polypipe's liquidity as adequate. As of end of June 2012, Polypipe had access to around GBP29 million of cash on balance sheet and GBP30 million under its revolving credit facility (RCF) which remains undrawn. In addition, the company has a long-dated debt maturity profile with no debt maturing before 2015. Upward pressure on the ratings could develop if Polypipe delivers higher than expected operating performance leading to (1) adjusted debt to EBITDA ratio below 3.0x; (2) EBITDA minus Capex to interest expense ratio above 2x; and (3) free cash flow to debt ratio exceeding 10% on a sustainable basis. Negative pressure on the ratings could develop if the company's operating performance and cash flow generation were to deteriorate substantially, resulting in a weakening of existing credit metrics, such that: (1) its adjusted debt to EBITDA ratio increases to above 4.5x; (2) its EBITDA minus Capex to interest expense ratio moves below 1.5x; or (3) its free cash flow generation moves towards zero. The principal methodology used in rating Pipe Holdings 2 Ltd was the Global Building Materials Industry Methodology published in July 2009. Pipe Holdings 2 Ltd is a U.K. manufacturer of plastic piping systems for the construction sector. It reported sales of around GBP286 million and EBITDA of around GBP40.2 million in the fiscal year ended December 2011. ROYAL BRITISH: Goes Into Liquidation ------------------------------------ The Reading Chronicle reports that cash-strapped Royal British Legion Club has closed its doors for the last time and has gone into liquidation. But the closure does not affect the operations of the Legion's Shinfield and District branch, which will maintain its commitment to the Poppy Appeal, the Remembrance Day parade and service at the village War Memorial and the welfare of ex-servicemen and their dependants living in the area, according to the report. The Reading Chronicle says the club leased its home in Shinfield's School Green from the Royal British Legion for 40 years but a steady drop in income has forced the closure, and with it the loss of four part-time staff jobs. "At one time the club had over 500 members, but this has fallen to around 400. It is difficult to attract new members, the smoking ban has hit clubs like this particularly hard and the increased duty on beer and spirits mean that our bar prices are no longer competitive," the report quotes club secretary Duncan McLellan as saying. "We held a meeting of the members on August 21 and whilst there was some talk of a rescue package, the debts we are now carrying and our level of income mean that the club is simply no longer viable." The Reading Chronicle quotes proposed liquidator David Tann, from Reading firm Wilkins Kennedy, as saying that: "It is a very difficult market for this sort of organisation which relies heavily on the hard work and generosity of a few individuals. Sadly the numbers just do not add up any more." "The furniture and fittings within the premises will be sold off and I would be very keen to hear from other clubs in the area which may be looking to upgrade their premises." The Royal British Legion Club provides financial, social and emotional support to those who have served or who are currently serving in the British Armed Forces, and their dependants. SPECTRUM SOCIAL: KMPG Appointed as Provisional Liquidator --------------------------------------------------------- Motherwell Times reports that Blair Nimmo of KPMG LLP has been appointed provisional liquidator of Spectrum Social Network Limited. The company, which traded as Spectrum Personnel, was formed in 2000 and was engaged in the recruitment and supply of temporary and contract workers, primarily, to the engineering and logistics sectors. At the time of the appointment, Motherwell Times notes, Spectrum Personnel employed approximately 200 people, comprised of 30 direct employees and 170 contractors, out of its two offices in Merry Street, Motherwell, and Gateshead. On the appointment of the Provisional Liquidator, the company ceased trading with all 200 employees being made redundant, according to Motherwell Times. "Despite its strong reputation as a supplier of temporary workers for the engineering and logistics sectors, Spectrum Social Network Ltd has experienced challenging trading conditions in recent times," the report quotes Mr. Nimmo as saying. "Unfortunately, due to those conditions it is no longer viable to trade the business as a going concern and all 200 staff have been made redundant with immediate effect." WAVERLEYTBS: In Administration, 830 Jobs at Risk ------------------------------------------------ Rupert Millar at the drinks business reports that WaverleyTBS is going into administration. "The business advisory firm have been appointed joint administrators to WaverleyTBS Limited, one of the country's largest wholesalers and distributors of alcoholic and soft drinks," Daniel Butters and William Dawson, partners at administrators, Deloitte, confirmed in a statement obtained by the news agency. A total of 830 jobs will be lost if Deloitte fails to find a buyer for the business, the report notes. The drinks business says that it was reported earlier that customers in some parts of the country, notably Scotland, would not be receiving their deliveries as HMRC had halted any stock leaving bonded warehouses. WaverleyTBS is a UK drinks distributor, WaverleyTBS. =============== X X X X X X X X =============== * Moody's Says Outlook for EMEA PPP/PFI Sector Negative ------------------------------------------------------- While the outlook for the PPP/PFI sector in Europe, Middle East & Africa (EMEA) is negative, primarily driven by the reduction in credit quality of sovereign and financial project counterparties, Moody's stable outlook for its portfolio of rated PFI/PPP projects reflects the higher resilience of these credits to declining counterparty risk compared with the overall sector, says the rating agency in an Industry Outlook report published on Oct. 2. The new report is entitled "EMEA PFI/PPP: Counterparty Credit Deterioration Weighs on Negative Sector Outlook". "While the credit quality of the industry remains robust, its fundamental credit conditions are likely to be negative in the next 12-18 months," says Declan O'Brien, Moody's Analyst and author of the report. "Approximately 29% of projects financed in the industry are based in the euro area periphery, where all countries have either a negative outlook or are on review for downgrade." However, Moody's portfolio of rated PFI/PPP projects is predominately UK based and contains only projects that have successfully tapped the investment-grade bond market -- therefore, these credits are on average of a higher quality than the sector at large. "The stable outlook for our portfolio, which is a limited universe across the broader sector, reflects its disproportionate level of exposure to the UK, and its limited exposure to counterparty risk," explains Mr. O'Brien. "Although our portfolio is more exposed to changes to the UK PFI framework, such as the NHS reorganization currently under way, we believe that these risks are sufficiently mitigated and that a stable outlook for the portfolio is appropriate." Approximately 29% of projects financed in the industry are based in the euro area periphery, where all countries have either a negative outlook or are on review for downgrade. In Moody's portfolio, only four projects are exposed to euro area periphery countries; these projects account for approximately 4% of total debt issued in the rating agency's portfolio. Moody's notes that the funding dynamics in the industry are shifting. Basel III, amongst other factors, continues to affect the ability and willingness of banks to fund projects through long-term loans. This has resulted in a range of government and bank-led credit enhancing initiatives that have been structured to increase institutional investors' participation in the sector. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- November 1-3, 2012 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Westin Copley Place, Boston, Mass. Contact: http://www.turnaround.org/ Nov. 29 - Dec. 2, 2012 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference JW Marriott Starr Pass Resort & Spa, Tucson, Ariz. Contact: 1-703-739-0800; http://www.abiworld.org/ April 10-12, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference JW Marriott Chicago, Chicago, Ill. Contact: http://www.turnaround.org/ October 3-5, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Wardman Park, Washington, D.C. Contact: http://www.turnaround.org/ ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than US$3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/booksto order any title today. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Valerie U. Pascual, Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante, Ivy B. Magdadaro, Frauline S. Abangan and Peter A. Chapman, Editors. Copyright 2012. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 240/629-3300. * * * End of Transmission * * *