/raid1/www/Hosts/bankrupt/TCREUR_Public/130822.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, August 22, 2013, Vol. 14, No. 166
Headlines
A R M E N I A
* ARMENIA: Moody's Affirms 'Ba2' Government Bond Rating
A U S T R I A
AIR ALPS: Faces Liquidation; 18 Employees Affected
ALPINE BAU: Koridori Srbije Files EUR55-Mil. Claim
F I N L A N D
NEWPAGE HOLDING: Stora Enso to Pay $8MM to End Antitrust MDL
F R A N C E
FCT MARSOLLIER: DBRS Confirms 'BB' Rating on Class E Notes
G E O R G I A
* GEORGIA: Moody's Says Low Wealth Levels Constrain 'Ba3' Rating
G E R M A N Y
FLEET STREET: Fitch Affirms 'CCC' Rating on Class B Notes
IVG IMMOBILIEN: Opts to File for Self-Administration Procedure
MINIMAX VIKING: S&P Assigns 'B' Corp. Credit Rating
QIMONDA AG: Strikes Deal With MOSAID on Patent Portfolio License
G R E E C E
INTRALOT SA: S&P Raises Corporate Credit Rating to 'B+'
* GREECE: Needs Third Bail-Out, Germany's Finance Minister Says
L I T H U A N I A
UKIO BANKAS: EU Commission Authorizes Liquidation Aid
N E T H E R L A N D S
CHAPEL 2003-I: Swap Agreement No Impact on Moody's Ratings
R O M A N I A
INR MANAGEMENT: Enters Insolvency at Banca Comerciala's Request
RIOS SOLAR: Files for Insolvency in Romania
R U S S I A
* RYAZAN REGION: Fitch Affirms 'B' Short-Term Currency Rating
* Impact of Russia's WTO Membership to be Felt in 3 to 5 Years
S P A I N
CODERE SA: S&P Lowers CCR to 'SD' on Missed Interest Payments
VALENICA HIPOTECARIO: Fitch Affirms CCC Rating on Cl. D RMBS Deal
U N I T E D K I N G D O M
GET JUICED: Put Up for Sale by Liquidators
HMV GROUP: Pension Fund Set to Lose More Than GBP250 Million
J&S SURVEYORS: High Court Enters Wind-Up Order
NATURE'S WORLD: Creditors Unlikely to Get Repayment
TEMPLE DESIGN: Placed Into Provisional Liquidation
X X X X X X X X
* Upcoming Meetings, Conferences and Seminars
*********
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A R M E N I A
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* ARMENIA: Moody's Affirms 'Ba2' Government Bond Rating
-------------------------------------------------------
Moody's Investors Service has changed the outlook on Armenia's
Ba2 government bond rating to stable from negative and affirmed
the rating.
Ratings Rationale
The key drivers of the change in the outlook are:
1) Armenia's commitment to multi-year fiscal consolidation,
driven partly by a steady revenue mobilization;
2) A gradual reduction in Armenia's still large current account
deficit at 11.1% of GDP at year-end 2012, supported by an
improving income balance; and
3) Access to external funding sources on favorable terms,
including significant private remittances, FDI inflows and
official lending sources.
Moody's has also changed the local-currency ceiling in Armenia to
Baa3 from Baa1.
Rationale For The Outlook Change
The first driver of Moody's decision to stabilize the outlook and
affirm Armenia's Ba2 rating is the authorities' commitment to
fiscal consolidation, as reflected in the reduction of its
deficit to 1.5% in 2012 from 7.5% in 2009. This was partly
achieved through improved revenue mobilization, but also by cuts
to capital expenditures. Moody's expects a fiscal deficit of 2.6%
and 2.1% in 2013 and 2014, respectively, to reflect the costs of
pension-reform implementation starting next year and resumed
capital expenditure. At 44% of GDP, Armenia's general government
debt at the end of 2012 falls close to the median of Moody's Ba-
rated universe.
The second driver of the outlook change is the further expected
gradual reduction in Armenia's still large current account
deficit at 11.1% of GDP in 2012, which has been underpinned by
private transfers from abroad (including employee compensations)
-- 92% of which originate from Russia -- that cumulated at almost
14% of GDP as of year-end 2012. That being said, Moody's notes
that the country's external shock-absorption capacity is bound to
weaken given (1) its economic and financial exposure to the
economic slowdown in Russia; (2) the supply side shock stemming
from the natural gas and energy tariff increase in July 2013; and
(3) large official loan repayments due over the next two years.
The third driver of the outlook change to stable is Armenia's
continued access to external funding sources on favorable terms,
including via private remittances, foreign direct investment
(FDI) and official lending sources. As of end-2012, multilateral
and bilateral loans accounted for 83% of Armenia's government
debt and Moody's expects steady net FDI inflows, albeit at a more
moderate level than the 6.3% of GDP average during 2008-2012.
Although Armenia's international reserve buffer -- at 3.9 months
of import coverage in 2012 -- provides limited cover in case of a
foreign-currency funding shortfall in the economy or in the
banking system, this concern is somewhat mitigated by the large
share of concessional funding and in view of the central bank's
macro-prudential measures deployed as a safeguard against the
banking system's high dollarization level at 63% as of end-2012.
Graduation from concessional funding is bound to drive increased
diversification in financing sources, with market-based funding
one option as the domestic market -- albeit evolving rapidly --
remains constrained.
What Could Drive The Rating Up/Down
Moody's would consider assigning a positive outlook and
eventually upgrading Armenia's rating if the initiated structural
reforms propel the economy towards more balanced economic growth
and a significant reduction in the current account deficit.
Negative rating pressure could develop (1) following a sustained
deterioration in fiscal and external buffers; (2) if the current
economic slowdown in Russia were to be sustained and mirrored by
a sharp slowdown in remittance inflows to Armenia; (3) if adverse
export minerals price movements were to persist, with significant
impact on the current account performance.
The principal methodology used in this rating was Sovereign Bond
Ratings published in September 2008.
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A U S T R I A
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AIR ALPS: Faces Liquidation; 18 Employees Affected
--------------------------------------------------
Austrian Times reports that regional airline Air Alps is to be
liquidated.
Flights between Bolzano and Rome were cancelled since November,
Austrian Times recounts. The airline said yesterday, Aug. 21,
that they have been trying to attract an investor but this has
not been possible, Austrian Times notes.
Over the past months, there have been talks with the Russian
investor group REFCA as well as other interested parties from EU
countries, Austrian Times discloses.
"Together with Air Alps, we have been working together to fund a
solution and attract a new partner and new business ideas.
However, as none of the potential investors were able to present
a successful concept, we do not see any possibility of being able
to restart the airline," Austrian Times quotes Welcome Air Chef
Manfred Helldoppler as saying.
According to Austrian Times, 18 employees have been affected in
Austria. The Tyrol Air Ambulance is to take half of the
employees, Austrian Times discloses.
Air Alps is headquartered in Innsbruck, Austria.
ALPINE BAU: Koridori Srbije Files EUR55-Mil. Claim
--------------------------------------------------
SeeNews reports that Koridori Srbije has filed with a commercial
court in Vienna a EUR55 million (US$73.7 million) claim against
Alpine Bau, which was hired for works on two road sections in the
Eastern European country, while also seeking EUR23.3 million from
the bankrupt Austrian company in compensation for lost profits
from road tolls.
According to SeeNews, Koridori Srbije director Dmitar Djurovic,
as quoted by news portal Tanjugbiz.rs, said that Koridori Srbije
filed the claims within the prescribed August 16 deadline.
Earlier this month, Koridori Srbije said it had notified to
Alpine the cancellation of all four contracts signed with the
company for the construction of the two local road sections,
SeeNews recounts.
In Serbia, Alpine was working on the Pirot-Dimitrovgrad road and
the Dimitrovgrad bypass project, SeeNews discloses.
SeeNews relates that Mr. Djurovic said the unfinished work on
Corridor X will be retendered over the next 30 days through an
expedited procedure so that they could resume next year.
Works on the Pirot-Dimitrovgrad section are being financed with
the proceeds of a loan from the European Bank for Reconstruction
and Development while the Dimitrovgrad bypass project is backed
by the World Bank, SeeNews notes.
Alpine Bau GmbH is Austria's second biggest construction group.
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F I N L A N D
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NEWPAGE HOLDING: Stora Enso to Pay $8MM to End Antitrust MDL
------------------------------------------------------------
Law360 reported that Finnish paper company Stora Enso Oyj has
agreed to pay US$8 million to resolve a class action claiming
that its former North American subsidiary, now a unit of the
recently reorganized NewPage Holding Corp., conspired with a
rival paper producer to fix prices, the plaintiffs said.
According to the report, a group of companies that bought
publication paper, which is used in magazines and other printed
materials, moved for preliminary approval of the settlement inked
in July, saying the US$8 million payment was a good result.
The case is Publication Paper Antitrust Litigation, Case No.
3:04-md-01631 (D. Conn.) before Judge Stefan R. Underhill.
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F R A N C E
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FCT MARSOLLIER: DBRS Confirms 'BB' Rating on Class E Notes
----------------------------------------------------------
DBRS Inc. has reviewed FCT Marsollier Mortgages and confirms the
ratings to the following Classes of Notes:
-- Class A confirmed at AAA (sf)
-- Class B confirmed at AA (sf)
-- Class C confirmed at 'A' (sf)
-- Class D confirmed at BBB (sf)
-- Class E confirmed at BB (sf)
FCT Marsollier Mortgages is the first French RMBS transaction
issued by BearImmo (part of J.P. Morgan Bank Dublin Plc). The
mortgage portfolio is non-conforming in nature and includes
borrowers with prior adverse credit history.
The mortgages supporting the transaction are performing within
DBRS expectations and the available credit enhancement for each
of the Notes is sufficient to cover DBRS expected losses at each
of the current rating levels.
Credit enhancement for the rated Notes consists of subordination.
A non-amortizing liquidity reserve fund of EUR6.47 million
(currently 5.15% of the collateralized Notes) is available to the
Issuer to meet any shortfalls in payment of senior fees and/or
interest on Class A, Class B and Class C Notes. After Class C
Notes are paid in full, the liquidity reserve amount will be
available to support any shortfalls in interest payments on Class
D and Class E Notes.
The transaction benefits from a principal deficiency ledger (PDL)
mechanism which allows provisioning for loans in arrears for a
period greater than six months as opposed to 36 months plus in
arrears prior to the restructuring which took place in August
2012. This allows any excess spread to cure the debit balance of
the PDL much earlier.
BNP Paribas Securities Services Paris is the Principal Paying
Agent and Account Bank for the transaction. The private rating
of BNP Paribas Securities Services, Paris is above the Minimum
Institution Rating given the highest rating assigned to the rated
Notes as described in the DBRS Legal Criteria for European
Structured Finance Transactions.
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G E O R G I A
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* GEORGIA: Moody's Says Low Wealth Levels Constrain 'Ba3' Rating
----------------------------------------------------------------
Moody's Investors Service says that Georgia's Ba3 government bond
rating with a stable outlook reflects the economy's large
external vulnerabilities and low wealth levels. That being said,
the rating is supported by the improvement in the country's
institutional capacity, the strength of the government's balance
sheet and its prudent fiscal policy.
The rating agency's report is an update to the markets and does
not constitute a rating action.
Moody's notes that Georgia's Ba3 rating is constrained by the
fact that it remains a low-income country with an economic model
that is heavily dependent on external funding to deliver growth,
as domestic savings remain weak. As a result, the Georgian
economy's external vulnerabilities have increased alongside high
growth rates, as reflected in large current account deficits
(11.5% of GDP in 2012) and high external debt (84.5% of GDP in
2012). Georgia is also susceptible to geopolitical and financial-
economic event risks associated with its persistent tensions with
Russia since the 2008 conflict and the high dollarization of the
economy.
These factors are partially offset by the (1) the improvement in
the country's institutional capacity and the development of a
pro-business operating environment, both of which have supported
economic development since the Rose Revolution in 2003; and (2)
the government's relatively strong balance sheet and prudent
fiscal policy, having benefitted from the support provided by
international institutions such as the IMF. Moreover, Moody's
expects ongoing negotiations with the EU, notably over the Deep
and Comprehensive Free Trade Area, will also remain supportive of
the rating.
Moody's says the major challenge for the Georgian authorities
will be ensuring healthy economic growth over the long term,
while simultaneously reducing external vulnerabilities. On the
fiscal side, the re-orientation of budget priorities by the newly
elected Ivanishvili government could lead to fiscal slippages, as
expenditure is shifted from capital formation to social spending,
particularly healthcare. However, government debt is not a major
concern given that it is relatively low at 32.6% of GDP in 2012,
with interest payment taking up to 3.4% of the government
revenue, as most loans are on favorable terms from the
international community.
Moody's notes that positive pressure on the rating may be
generated by improved resiliency of Georgia's balance of payments
and the continuation of its prudent fiscal policy. Conversely,
downward pressure on the rating would be driven by challenges to
its economic growth model. A crystallization of risks stemming
from Georgia's external imbalances, in the form of abrupt stop to
capital inflows and exchange-rate instability, would also be
credit negative.
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G E R M A N Y
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FLEET STREET: Fitch Affirms 'CCC' Rating on Class B Notes
---------------------------------------------------------
Fitch Ratings has affirmed Fleet Street Finance Three plc's notes
due October 2016, as follows:
EUR250.0m class A1 (XS0302957062) affirmed at 'BBBsf'; Outlook
Stable
EUR60.7m class A2 (XS0302957575) affirmed at 'Bsf'; Outlook
Negative
EUR47.9m class B (XS0302958110) affirmed at 'CCCsf'; Recovery
Estimate RE55%
Key Rating Drivers
The affirmations are supported by a switch to sequential
principal pay for the Corleone loan (repayments from both other
loans already flow through the note payment waterfall on a
sequential basis). Fitch believes that as a result of the trigger
breach, the class A1 notes stand a good chance of being redeemed
by legal maturity, which warrants an investment grade rating in
spite of the distressed nature of the three underlying loans. The
class A2 notes are expected to be repaid in full, unlike tranches
junior to it (Fitch does not rate the class C, D and E notes).
The servicer (in conjunction with the still active borrower) has
made progress with respect to the managed liquidation of the
assets securing the Corleone loan, with the loan's balance having
fallen to EUR274.6 million from EUR327.6 million since Fitch's
last rating action in August 2012. However, the proceeds from
these asset sales (up to the allocated loan amount (ALA)) were
allocated to noteholders on a pro rata basis, which erodes the
amount of credit enhancement for all but the junior class of
notes. A continuation of pro rata pay from this loan would have
been highly detrimental to the rating of senior noteholders.
The loan (61% of the outstanding balance of the CMBS) is now
secured by 27 mixed use assets located across western Germany.
All property sales over the past 14 months have passed the ALA
plus release premium conditions -- but only after sales proceeds
were topped up with amounts deposited in the reserve account out
of excess rental income. Besides these top-ups, excess rent has
not been used to repay debt but instead as a contribution towards
capital expenditure and tenant improvements.
Despite some deleveraging, the portfolio's secondary quality
(reflected in occupancy of only 65%) and size are impeding
progress with debt reduction targets agreed at the time of the
loan restructuring (which saw maturity pushed back until October
2014), with the current balance well in excess of the April
target of EUR195 million. Fitch expects a substantial recovery
but not full repayment by bond maturity in October 2016.
Following the sale of the Stuttgart property in April, the
defaulted Blue Star loan (28%) is secured by two office assets.
The largest, the Bonn office property accounting for 54% of the
loan's income, is fully let to Deutsche Telecom on an index-
linked lease expiring in 2021. The other property is a Munich
office property fully let to Hewlett Packard, on a lease recently
extended until December. This precarious income profile will
weaken the special servicer's ability to execute a disposal. The
issuer owns a EUR125.5 million A-note in the EUR152.4 million
Blue Star whole loan. The reported securitized loan to value
ratio (LTV) of 188% registered a like for like fall in value of
37% between September 2010 and September 2012, and with a current
securitized debt yield of some 5%, Fitch expects only modest
recoveries on the A-note, stemming mainly from the Bonn asset.
Fitch believes that the EUR49.4 million Saxony A-note (11%)
should pay off in full, despite the whole loan defaulting at
maturity in July 2013. As part of the loan extension agreed in
2010, all cash after debt service was used to repay debt, which
has allowed for significant amortization (excess rent is in the
region of EUR8 million per annum), and brought the reported
securitized LTV down to 44% (the reported whole LTV is 62%).
Another loan, the defaulted Orange loan, was resolved in May 2012
when the last collateral was sold. While recoveries were
allocated some time ago, the loan loss of EUR18 million was only
written down from the notes at the July IPD, when there was a
complete write-off of the class E notes and a partial (EUR13.0
million) write-down of the class D notes.
Fitch will continue to monitor the performance of the
transaction.
Rating Sensitivities
Failure by the servicer to maintain its active disposal policy,
particularly with respect to the Corleone loan, will put downward
pressure on the ratings; this is of particular concern given the
number of properties remaining and the limited time left until
legal final maturity of the notes in October 2016.
IVG IMMOBILIEN: Opts to File for Self-Administration Procedure
--------------------------------------------------------------
Dalia Fahmy at Bloomberg News reports that IVG Immobilien AG, the
German property company that has lost most of its market value,
said it will file for court protection to reorganize EUR3.2
billion (US$4.3 billion) of debt after talks with creditors
failed.
Bloomberg relates that IVG said in a statement that it was set to
apply on Tuesday, Aug. 20, with the Bonn District Court to
initiate a proceeding similar to a U.S. bankruptcy
reorganization. The procedure protects companies from claims
while they try to reach a court-approved agreement, Bloomberg
notes.
"Despite weeks of intensive mediations and negotiation efforts on
the part of IVG, the individual creditor groups were
unfortunately unable to agree on a consensual solution taking
into account all stakeholder interests," Bloomberg quotes Chief
Executive Officer Wolfgang Schaefers as saying in the statement.
IVG, once Germany's biggest publicly held property company, saw
its value plummet since 2007 after demand for its office
buildings fell in the wake of the financial crisis, Bloomberg
recounts.
According to Bloomberg, Tuesday's statement said that IVG decided
on a filing for the self-administration procedure because it
offers "the best tools for successfully implementing the
initiated restructuring of IVG in the interests of all
stakeholders".
If no agreement with creditors is reached, German law allows the
court to appoint an insolvency administrator to sell company
assets and distribute the proceeds to creditors, depending on
seniority, Bloomberg states.
IVG is being advised by financial consultants at Rothschild
Group, and lawyers at Freshfields Bruckhaus Deringer LLP and
Goerg Partnerschaft von Rechtsanwaelten, Bloomberg discloses.
IVG's debt now exceeds 80% of its asset value and the company
plans to bring it closer to 60%, Bloomberg says, citing a person
with knowledge of the company's financial position. The person,
as cited by Bloomberg, said that IVG owes money to more than 200
lenders.
IVG Immobilien is a real estate company based in Bonn, Germany.
MINIMAX VIKING: S&P Assigns 'B' Corp. Credit Rating
---------------------------------------------------
Standard & Poor's Ratings Services said it has assigned its 'B'
long-term corporate credit rating to Germany-based fire
protection technology equipment provider Minimax Viking GmbH.
The outlook is stable.
At the same time, S&P assigned its 'B' issue rating to the
EUR630 million first-lien term loan facility (of which an
equivalent of EUR315 million is issued in U.S. dollars). The
recovery rating on this facility is '3', indicating S&P's
expectation of meaningful (50%-70%) recovery prospects for
lenders in the event of a payment default.
The ratings on Minimax are at the same level as the preliminary
ratings S&P assigned on June 22, 2013, reflecting that it
continues to view the company's financial risk profile as "highly
leveraged" and its business risk profile as "fair." This is
despite that, following the completion of its recapitalization,
Minimax's conversion of shareholder loans into equity was
EUR30 million higher than previously expected, and debt was
therefore EUR30 million lower.
Minimax issued EUR630 million senior first-lien facilities (of
which an equivalent of EUR315 million was issued in U.S. dollars)
to refinance its capital structure. Proceeds were used to redeem
existing outstanding net debt of EUR358 million, repay a
EUR180 million shareholder loan (whereas the remaining
EUR174 million are converted into equity), and fund transaction
costs. At closing, the group is expected to maintain cash on
balance sheet of about EUR78 million. Minimax will also benefit
from a EUR40 million committed and undrawn revolving credit
facility (RCF) maturing in 2019, and a EUR141.5 million
multicurrency bank guarantee and letter of credit facility
maturing in 2019.
The ratings on Minimax are constrained by the Group's high
leverage and S&P's view that its credit metrics will likely
remain in line with a "highly leveraged" financial risk profile
under its criteria over the coming years, including debt to
EBITDA of more than 6.5x and funds from operations (FFO) to debt
of about 10%.
S&P views positively the Group's good operating resilience, which
is to a large degree due to regulatory requirements that drive
demand for fire protection systems and recurring service
requirements for the installed base.
"We believe that, following the refinancing, Minimax will
continue to generate positive free operating cash flow, despite a
moderate increase in cash-paying interest. We base this on the
assumption that Minimax will continue to show a solid operating
trend, even though we believe that growth prospects are somewhat
restricted in the current uncertain economic environment," S&P
said.
After the refinancing, S&P believes the Group's FFO to debt will
likely be about 10% in 2013 and 2014. S&P anticipates that its
debt to EBITDA will be about 7x as of year-end 2013, progressing
toward 6.5x in 2014.
The stable outlook reflects S&P's opinion that Minimax should
continue to generate free operating cash flows over the coming
years on the assumption that it continues its solid operating
performance and controls expansionary investments in capital
expenditure and working capital.
S&P could consider a negative rating action if unexpected adverse
operating developments were to occur.
S&P could consider a positive rating action if Minimax's adjusted
FFO to debt sustainably exceeded 15%. An EBITDA interest
coverage ratio of close to 3x could also be consistent with a
higher rating. S&P considers this unlikely in the near term.
In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the
methodology applicable. At the onset of the committee, the chair
confirmed that the information provided to the Rating Committee
by the primary analyst had been distributed in a timely manner
and was sufficient for Committee members to make an informed
decision.
After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts. The chair
ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision.
The views and the decision of the rating committee are summarized
in the above rationale and outlook.
QIMONDA AG: Strikes Deal With MOSAID on Patent Portfolio License
----------------------------------------------------------------
The insolvency administrator over the estate of Qimonda AG,
Dr. jur. Michael Jaffe, and MOSAID Technologies Inc. announced
that they have entered into a Memorandum of Understanding.
The MoU calls for the Administrator and MOSAID to negotiate and
conclude an agreement under which MOSAID would provide exclusive
licensing services for Qimonda's entire patent portfolio,
comprised of approximately 7,500 patents and applications. The
Administrator and MOSAID will attempt to conclude the formal
agreement by December 31, 2013, latest.
"This agreement with MOSAID does not affect the ongoing sales
process regarding Qimonda's patent business that is likely to be
finalized by the end of this year," says Dr. Michael Jaffe, "but
further exploring the opportunities of licensing the portfolio
together with such an experienced partner like MOSAID represents
an attractive alternative for the creditors in order to realize
the significant value of the portfolio," he went on to say.
"We are extremely pleased to have signed this MoU with the
Qimonda Administrator," said John Lindgren, President and CEO,
MOSAID. "The Qimonda AG patent portfolio represents some of the
industry's most innovative work in semiconductor memory and
semiconductor process technology. Working to realize additional
value from this portfolio would benefit the Qimonda estate, and
would further cement MOSAID's reputation as the intellectual
property management company of choice."
About Qimonda AG
Qimonda AG (NYSE: QI) -- http://www.qimonda.com/-- was a global
memory supplier with a diversified DRAM product portfolio. The
Company generated net sales of EUR1.79 billion in financial year
2008 and had -- prior to its announcement of a repositioning of
its business -- roughly 12,200 employees worldwide, of which
1,400 were in Munich, 3,200 in Dresden and 2,800 in Richmond, Va.
Qimonda AG commenced insolvency proceedings in a local court in
Munich, Germany, on Jan. 23, 2009. On June 15, 2009, QAG filed
a petition (Bankr. E.D. Va. Case No. 09-14766) for relief under
Chapter 15 of the U.S. Bankruptcy Code.
Qimonda North America Corp., an indirect and wholly owned
subsidiary of QAG, is the North American sales and marketing
subsidiary of QAG. QNA is also the parent company of Qimonda
Richmond LLC. QNA and QR sought Chapter 11 protection (Bankr.
D. Del. Case No. 09-10589) on Feb. 20, 2009. Mark D. Collins,
Esq., Michael J. Merchant, Esq., and Lee E. Kaufman, Esq., at
Richards Layton & Finger PA, in Wilmington Delaware; and Mark
Thompson, Esq., Morris J. Massel, Esq., and Terry Sanders, Esq.,
at Simpson Thacher & Bartlett LLP, in New York City, represented
the Debtors as counsel. Roberta A. DeAngelis, the United States
Trustee for Region 3, appointed seven creditors to serve on an
official committee of unsecured creditors. Jones Day and Ashby &
Geddes represented the Committee. In its bankruptcy petition,
Qimonda Richmond, LLC, estimated more than US$1 billion in assets
and debts. The information, the Chapter 11 Debtors said, was
based on QR's financial records which are maintained on a
consolidated basis with QNA.
In September 2011, the Chapter 11 Debtors won confirmation of
their Chapter 11 liquidation plan which projects that unsecured
creditors with claims between US$33 million and US$35 million
would have a recovery between 6.1% and 11.1%. No secured claims
of significance remained.
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G R E E C E
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INTRALOT SA: S&P Raises Corporate Credit Rating to 'B+'
-------------------------------------------------------
Standard & Poor's Ratings Services said that it raised its long-
term corporate credit rating on Greece-based gaming company
Intralot S.A. to 'B+' from 'B-', and removed the rating from
CreditWatch, where S&P placed it with positive implications on
June 17, 2013.
At the same time, S&P has affirmed its 'B+' issue rating on the
EUR325 million senior unsecured notes issued by Intralot Finance
Luxembourg S.A., a 100% indirect subsidiary of Intralot.
The upgrade reflects S&P's view of Intralot's improved liquidity
and financial flexibility following the completion of its debt
refinancing plan. As part of the plan, Intralot issued
EUR325 million in unsecured notes, the proceeds of which were
used to repay all of its debt maturing in 2013 and part of its
debt maturing in 2014.
Intralot operates internationally and is one of the leading
players in the supply of integrated gaming systems and services.
In addition, the company is a licensed gaming operator and is
active in game management on behalf of third parties such as
state operators.
The rating on Intralot reflects S&P's assessment of the company's
business risk profile as "fair" and financial risk profile as
"aggressive."
"Under our base-case operating scenario, Intralot's Standard &
Poor's-adjusted gross debt to EBITDA will likely be about 3.1x in
December 2013. In addition, we forecast that the company's
adjusted funds from operations (FFO) to debt should be about 20%,
while we estimate adjusted interest coverage at about 4.0x by the
same date. Based on these projected ratios, management's ability
and willingness to perform in line with its operating plan,
address the company's medium-term debt maturity profile, and
start generating positive cash flow could provide some upside to
our assessment of Intralot's financial risk profile," S&P said.
"Our base-case operating scenario for Intralot for the next 12-18
months includes low single-digit top-line growth and some margin
improvements, mostly on account of cost efficiencies. We project
that 2013 EBITDA will be in the EUR170 million-EUR178 million
range, and that working capital outflows of more than
EUR30 million for the full year and sizable investments of almost
EUR100 million will reduce free cash flow generation, S&P added."
S&P notes that Intralot derives less than 10% (5.3%) of its
revenues from Greece. Consequently, and in line with S&P's
criteria, it do not cap the ratings on Intralot at the level of
its sovereign rating on Greece (Hellenic Republic).
The stable outlook on Intralot reflects S&P's opinion that the
group will maintain a steady operating performance and continue
to focus on addressing upcoming maturities, while maintaining an
"adequate" liquidity assessment. S&P expects Intralot's
profitability to grow further over the next few years, and
anticipate that the company will be able to generate positive
free operating cash flow from 2014, as a result of its more
prudent investment plan.
S&P could raise the rating if Intralot performs according to plan
-- which could result in debt to EBITDA being consistently below
3x -- and generating positive free operating cash flow from 2014.
Furthermore, a positive rating action would likely depend on
Intralot proactively addressing its 2014 maturities and
maintaining an "adequate" liquidity profile.
S&P could lower the rating if Intralot's liquidity deteriorates
as a result of tightening covenants or its failure to address
2014 maturities, combined with persistent negative cash flow
generation. S&P could also take a negative rating action if
adjusted EBITDA interest coverage drops to less than 2.5x with
adjusted debt to EBITDA exceeding 5x.
Intralot's capital structure consists of EUR325 million senior
unsecured notes due 2018, issued by Intralot's 100%-owned
indirect subsidiary, Intralot Finance Luxembourg S.A.; a EUR230
million unsecured term loan B (EUR80 million) and RCF (EUR150
million, currently undrawn) due December 2014, issued by Intralot
Finance UK; and approximately EUR100 million of mostly unsecured
bank
loans and bilateral loans held by operating subsidiaries. The
EUR230 million unsecured term loan B and RCF rank pari passu with
the unsecured notes, and they benefit from a similar guarantee
package. S&P estimates that only about EUR5 million-EUR10
million (or less than 5% of total debt) will remain in
subsidiaries that do not provide an upstream guarantee, in
addition to approximately EUR30 million of finance leases, which
we understand will be secured by assets.
The issue rating on the senior unsecured notes is 'B+', in line
with the corporate credit rating on Intralot. The notes are
unsecured and guaranteed by Intralot and several subsidiaries
representing almost 70% of Intralot's consolidated EBITDA and
assets.
Although the senior unsecured notes have an issue rating, S&P has
not assigned them a recovery rating because its review of the
insolvency regimes in the countries where the majority of
Intralot's operating assets are located is not complete.
* GREECE: Needs Third Bail-Out, Germany's Finance Minister Says
---------------------------------------------------------------
Denise Roland at The Telegraph reports that Wolfgang Schaeuble,
Germany's finance minister, has made an unexpected admission that
Greece will need a third bail-out, just weeks before German
national elections.
"There will have to be another program in Greece," The Telegraph
quotes Mr. Schaeuble as saying before a campaign audience in
northern Germany. However he maintained that, despite this,
there would be no further debt haircut for Athens, The Telegraph
notes.
Just hours before Mr. Schaeuble spoke, German Chancellor Angela
Merkel was quoted in a regional newspaper dismissing questions
about further aid for Greece, saying there was no point in
discussing the matter until its second package expires at the end
of next year, The Telegraph relates.
However, economists have long predicted a third rescue package
for Greece, which is struggling to control its mounting debt
burden as the economy shrinks under tough austerity measures, The
Telegraph notes.
According to The Telegraph, while a third bail-out for Greece,
paid for by eurozone taxpayers, will anger German voters, the
sums involved are set to be much lower than the previous two
rescue packages, which run to EUR210 billion (GBP179 billion).
Any new aid money would be funneled towards an expected shortfall
in Greece's public finances in the next two years, according to a
Greek finance ministry official, The Telegraph states.
Athens, The Telegraph says, is also looking at using leftover
funds from a bank bail-out program to help plug the funding gap.
=================
L I T H U A N I A
=================
UKIO BANKAS: EU Commission Authorizes Liquidation Aid
-----------------------------------------------------
The Baltic Course reports that the European Commission has
authorized, under EU state aid rules, liquidation aid supporting
the resolution of the Lithuanian bank AB Ukio Bankas, said the
press service of the European Commission.
According to Baltic Course, LETA/ELTA reported that the bank was
declared insolvent in February 2013 and part of its assets and
liabilities were taken over by another Lithuanian bank, AB
Siauliu Bankas, selected in a competitive process.
Baltic Course relates that the cash grant of EUR231.4 million
bridged the gap between the value of the transferred assets and
liabilities. The report says the Commission found the aid
measure to be in line with its guidance on state aid to banks
during the crisis. In particular, the measure ensures the
viability of the bank's transferred business in the context of
its integration into a sound bank, while limiting distortions of
competition by the market exit of Ukio Bankas as an independent
entity, the report relates.
Moreover, a sufficient own contribution by the bank to the losses
and costs of restructuring is ensured through absorbing losses
with previously available capital, transfer of substantial
proportion of its assets to AB Siauliu Bankas and the
contribution of the shareholders and subordinated loans holders
of Ukio Bankas, according to Baltic Course. The Commission has
therefore concluded that it represents an appropriate means of
remedying a serious disturbance in the Lithuanian economy and as
such is compatible with Article 107(3)(b) of the Treaty on the
Functioning of the European Union (TFEU), the report notes.
About Ukio Bankas
Ukio Bankas AB is a Lithuania-based commercial bank, which is
involved in the provision of banking, financial, investment, life
insurance and leasing services to individuals and companies. It
is Lithuania's sixth largest lender by assets. The Central Bank
suspended Ukio Bankas' operations on Feb. 12, 2013, after it was
established the lender had been involved in risky activities. A
majority 64.9% of Ukio Bankas had been owned by Russian born-
businessman Vladimir Romanov.
=====================
N E T H E R L A N D S
=====================
CHAPEL 2003-I: Swap Agreement No Impact on Moody's Ratings
----------------------------------------------------------
Moody's Investors Service reports that the restructuring of the
swap arrangement in the transaction will not, in and of itself,
result in a reduction, placing on review for possible downgrade
or withdrawal of the current credit ratings assigned to the notes
issued by Chapel 2003-I B.V.
On August 15, 2013, the Issuer entered into a new interest rate
swap agreement with the bankruptcy trustees of DSB Bank N.V.
(DSB, not rated). This new swap replaces the existing swap
agreement between the Issuer and Barclays Bank Plc. (A2/P-1).
DSB's obligations under the new swap are supported by Rabobank
Nederland (Aa2/P-1) as guarantor and contingent swap
counterparty.
In analyzing the proposal Moody's took into consideration, among
other factors, the current rating of the notes and the rating of
the guarantor. Moody's believes that the amendment does not have
an adverse effect on the credit quality of the securities such
that the Moody's ratings were impacted. Moody's did not express
an opinion as to whether the amendment could have other,
noncredit-related effects.
The principal methodology used in this rating was Moody's
Approach to Rating Consumer Loan ABS Transactions published in
May 2013.
Moody's ratings address the expected loss posed to investors by
the legal final maturity of the notes. Moody's ratings only
address the credit risk associated with the transaction. Other
non-credit risks have not been addressed, but may have a
significant effect on yield to investors.
Moody's will continue to monitor the ratings of the transaction.
Any change in the ratings will be publicly disseminated by
Moody's through appropriate media.
Moody's carries these ratings for Chapel 2003-1:
Class A COLL NOTES; B2
Class B COLL NOTES; Ca
Class C COLL NOTES; C
Class D COLL NOTES; C
=============
R O M A N I A
=============
INR MANAGEMENT: Enters Insolvency at Banca Comerciala's Request
---------------------------------------------------------------
Ecaterina Craciun at Ziarul Financiar reports that INR Management
Real Estate has entered insolvency at the request of its main
creditor, lender Banca Comerciala Romana.
INR Management Real Estate is a Romanian real estate firm. The
company developed the Silver Mountain residential project in the
central county of Brasov.
RIOS SOLAR: Files for Insolvency in Romania
-------------------------------------------
Ioana Tudor at Ziarul Financiar reports that firms Rios Solar
Renovables and Rios Total Solar, part of Spanish group Rios
Renovables, which develops green energy projects in Romania,
filed for insolvency at the beginning of August.
Rios Solar Renovables and Rios Total Solar are Spanish-held park
developers.
===========
R U S S I A
===========
* RYAZAN REGION: Fitch Affirms 'B' Short-Term Currency Rating
------------------------------------------------------------
Fitch Ratings has revised Ryazan Region's Outlooks to Negative
from Stable and affirmed its Long-term foreign and local currency
ratings at 'B+', National Long-term Rating at 'A(rus)' and Short-
term foreign currency rating at 'B'.
The rating action also affects the region's two outstanding
senior unsecured domestic bond issues of RUB4bn (ISIN
RU000A0JR5G5 and ISIN RU000A0JTGF1).
Key Rating Drivers
The Outlook revision reflects the following rating drivers and
their relative weights:
High
- Fitch expects Ryazan region's direct risk to exceed 80% of
current revenue by end-2013 from an already high level of 72%
at end-2012. Ryazan Region's high indebtedness is reflected in
the long-term foreign and local currency rating of 'B+', which
is the lowest rating among Fitch-rated Russian local and
regional governments (LRGs).
- Ryazan Region's debt coverage ratios significantly
deteriorated
in 2012. Although the region managed to sustain a positive
operating margin at about 4% in 2012, debt coverage (direct
debt to current balance) weakened to 98.5 (2011: 13.5). Fitch
forecasts minor improvement in debt coverage in the medium
term, but it will remain weak in 2013-2015.
- Fitch estimates the region's immediate refinancing needs as
moderate at about 17% of direct risk as of July 1, 2013.
However the refinancing needs in 2014 are at 47% of direct
risk. High liquidity mitigates the refinancing risks. Overall,
the administration has improved debt management by switching
from reliance on short-term bank loans to contracting federal
budget loans with low interest rates, medium-term bank loans
and issuing bonds.
Medium
- Fitch notes that the regional administration has achieved
commendable results in the development of the local tax base.
The region's tax revenue has increased by an average 16% yoy
in
2010-2012. However current transfers from the federal
government have declined at a similar pace during that period.
Nonetheless the region's operating margin remained stable at
about 5% in 2011-2012.
Ryazan Region's ratings also reflect the following key rating
drivers:
- The region's economy is modest in a national context but is
fairly diversified and benefits from close proximity to
Moscow,
the country's capital. Gross regional product increased by an
average 6.2% yoy in 2011-2012 in real terms primarily
supported
by the growth of industrial output. This positively affected
tax revenue proceeds.
- The region's contingent risk is low and limited to RUB0.3
billion of issued guarantees. The region's public sector
enterprises had negligible debt of RUB7 million at end-2012.
Consequently, in Fitch's view, the region's budget faces low
risk from public sector entities' potential financial
difficulties.
Rating Sensitivities
Fitch expects that the region's net overall risk will remain at
below 80% of current revenue in 2013-2015. Growth of indebtedness
to levels significantly above Fitch's expectations or failure to
ease refinancing pressure faced by the region in 2014 would lead
to a downgrade.
Key Assumptions
-- Russia has an evolving institutional framework with the
system
of intergovernmental relations between federal, regional and
local governments still under development
-- Russia's economy will continue to demonstrate moderate
economic growth. Fitch does not expect dramatic external
macroeconomic shocks
-- The federal government's budgetary performance will remain
sound and will serve as a supporting factor for Russian LRGs
-- Ryazan Region will continue to have fair access to the
domestic financial markets sufficient for refinancing of
maturing debt
-- Increasing pressure on operating expenditure and capital
spending will result in an increase of debt and weaker debt
coverage ratios
* Impact of Russia's WTO Membership to be Felt in 3 to 5 Years
--------------------------------------------------------------
It will likely take three to five years for the full credit
impact of Russia's entry into the World Trade Organization (WTO)
to be felt by domestic businesses, says Moody's Investors Service
in a Special Comment entitled "Russian Non-Financial Corporates:
Full Credit Impact of WTO Entry on Russian Businesses Will Take
Longer to be Felt."
"We had expected there to be more clear-cut winners and losers
one year after Russia joined WTO, however, most businesses have
experienced little or no change in their creditworthiness so
far," says Sergei Grishunin, an Assistant Vice President -
Analyst in Moody's Corporate Finance Group and author of the
report. "Although the credit profiles of food and non-food
wholesalers and retailers have received a boost, the benefits to
exporters have failed to materialize, owing to the loss of
momentum in the global economic recovery. Meanwhile, measures
introduced by the Russian government to support certain less
competitive industries, such as the automotive sector, have
reduced the credit negative implications of WTO membership."
Import-oriented businesses, such as food and non-food wholesalers
and retailers, will continue to benefit financially. Import
duties on many consumer goods, including pork, butter and
clothing, will continue to be reduced until 2017, with credit
positive implications for retailers and wholesalers as Moody's
would expect them to pass on only a small portion of the tariff
savings to end-consumers. Large retail companies, such as X5
Retail Group NV (B2 stable), OAO Magnit (unrated), and Russian-
based branches or distributors of goods for global retail
companies, such as H&M (unrated) and Zara (unrated), are also
likely to benefit from cost savings associated with simplified
customs procedures and lower transportation tariffs for foreign
goods.
Opportunities for exporters are likely to hinge on the pace of
the global economic recovery. The credit impact on metals, mining
and chemical companies has been largely credit neutral so far.
This is because these companies have yet to benefit from the
removal or reduction of import tariffs by other WTO members as
the loss of momentum in the global economic recovery, and the
prolonged weakness in European economy in particular, have
dampened demand for these commodities. Still, Moody's would
expect companies such as OAO Severstal (Ba1 stable) or OJSC
Phosagro (Baa3 stable) to capitalize on export opportunities once
the global economy regains momentum.
While textile, clothing and shoe manufacturers have been hit
hard, the credit profiles of protein companies and automotive
producers have suffered less than Moody's expected as measures
introduced by the Russian government have largely shielded them
from a flood of cheap imports. Consequently, big agricultural
producers, such as OJSC Cherkizovo Group (B2 stable), ABH
Miratorg (unrated), and larger car and truck manufacturers, such
as OJSC KAMAZ (unrated), GAZ Group (unrated) and OAO AvtoVAZ
(unrated), have fared better than the rating agency expected.
However, it is unclear whether some of these measures, such as
the recycling fees levied on foreign vehicle imports, will be
sustainable in the long term. The EU, for example, recently filed
a complaint against Russia with the WTO challenging the recycling
fees.
In addition, Moody's notes that executives at Russian companies
still seem to have a low level of understanding of how WTO
membership affects their businesses and there appears to be a
dearth of domestic legal firms specializing in this area that
they can turn to for advice, which is prompting them to use
foreign specialists instead which can be costly.
=========
S P A I N
=========
CODERE SA: S&P Lowers CCR to 'SD' on Missed Interest Payments
-------------------------------------------------------------
Standard & Poor's Ratings Services said it had lowered to 'SD'
from 'CC' its long-term corporate credit rating on Spain-based
gaming company Codere S.A.
At the same time, S&P lowered its rating on the US$300 million
senior notes, due in 2019 and issued by Codere Finance
(Luxembourg) S.A., to 'D' (default) from 'CC'. The recovery
rating remains at '4,' reflecting S&P's expectation of average
recovery (30%-50%) on these notes.
The rating on the EUR760 million senior notes due 2015, also
issued by Codere Finance (Luxembourg), remains at 'CC'. The
recovery rating of '4' reflects S&P's expectation of average
recovery (30%-50%) in the event of a default.
The downgrades follow Codere's announcement on Aug. 14, 2013,
that it would suspend upcoming interest payments on the $300
million senior notes maturing in 2019. Codere did not make the
interest payments on the due date of Aug. 15.
Under S&P's criteria, the postponement of interest or principal
on debt is tantamount to a default if the new payment date is
later than five business days after the scheduled due date. This
is irrespective of any grace period stipulated in the debt
documentation. The notes' documentation allows a 30-day grace
period
S&P don't believe the group will make these payments within five
business days after the scheduled due date because it is
contemplating various options regarding upcoming refinancing and
its overall capital structure. In addition, S&P understands
that, if Codere makes the payment, it must fully prepay a
recently extended revolving credit facility (RCF) of almost
EUR100 million, including guarantees.
It is S&P's understanding that payments on Codere's other
obligations, including the EUR760 million notes due 2015, are up
to date. S&P would lower the rating on Codere to 'D' if the
company fails to pay all of its current debt obligations as they
fall due.
S&P thinks that Codere is restructuring its balance sheet because
its capital structure has become unsustainable in view of recent
negative operating trends. S&P will follow the progress of
Codere's pending capital restructuring over the coming months.
S&P will subsequently reassess the ratings, taking into account
the group's business prospects, new capital structure, and the
impact of any reorganization.
VALENICA HIPOTECARIO: Fitch Affirms CCC Rating on Cl. D RMBS Deal
-----------------------------------------------------------------
Fitch Ratings has affirmed 12 tranches of the Valencia
Hipotecario (Valencia) 1-3 and 5 Spanish RMBS as follows:
Valencia Hipotecario 1, Fondo de Titulizacion de Activos:
Class A (ISIN ES0382744003): affirmed at 'AA-sf'; Outlook
Negative
Class B (ISIN ES0382744011): affirmed at 'AA-sf' ; Outlook
Negative
Class C (ISIN ES0382744029): affirmed at 'BBB+sf'; Outlook
Negative
Valencia Hipotecario 2, Fondo de Titulizacion de Hipotecaria:
Class A (ISIN ES0382745000): affirmed at 'AA-sf'; Outlook
Negative
Class B (ISIN ES0382745018): affirmed at 'BBB+sf'; Outlook
Negative
Class C (ISIN ES0382745026): affirmed at 'BB+sf'; Outlook
Negative
Class D (ISIN ES0382745034): affirmed at 'CCCsf'; Recovery
Estimate of 45%
Valencia Hipotecario 3, Fondo de Titulizacion de Activos:
Class A2 (ISIN ES0382746016): affirmed at 'AA-sf'; Outlook
Negative;
Class B (ISIN ES0382746024): affirmed at 'BBBsf'; Outlook
Negative;
Class C (ISIN ES0382746032) affirmed at 'BB+sf''; Outlook
Negative;
Class D (ISIN ES0382746040): affirmed at 'CCCsf'; Recovery
Estimate of 5%
Valencia Hipotecario 5, Fondo de Titulizacion de Activos:
Class A (ISIN ES0382718007): affirmed at 'Asf'; Outlook
Negative;
Key Rating Drivers
Sufficient Credit Enhancement
The affirmation reflects the sufficient credit enhancement
available for the rated notes, despite the recent sharp rise in
the constant default rate (CDR), defined as period defaults
(loans in arrears by more than 12 months) as a percentage of
current balance.
In the past six months, the CDR has reached up to 3% in Valencia
5 compared to 1.1% 12 months ago. The pipeline of potential
defaults, as evidenced by the level of three months plus arrears
(excluding defaults) as a percentage of current balance has
remained stable at between 0.7% (Valencia 1) and 4.4% (Valencia
5).
Recent reserve fund draws have been triggered by the high CDR,
exceeding the gross excess spread levels generated by the
structures. With the level of arrears stable, Fitch expects the
high CDR rates to continue in the short term and for further
reserve fund draws. The agency's analysis shows that the level of
credit enhancement available to the transactions is sufficient to
withstand longer periods of high CDR.
Portfolio Deleveraging
Given the seasoning of the assets in the underlying portfolios,
the loans in the pools have seen significant deleveraging,
leading to lower than average current loan to value ratios
(between 31% (Valencia 1) and 60% (Valencia 5)). The agency
performed additional analysis to test the resilience of the pool
to further house price declines. The analysis showed that house
price declines would exceed the standard 'AA-sf' scenario in
order to result in losses to rated tranches, leading the agency
to affirm the notes' current ratings.
Rating Sensitivities
The Negative Outlooks on all tranches reflect the uncertainty
associated with changes to the Spanish mortgage enforcement
framework. The eventual effects of framework changes on borrower
payment behavior, recovery timing and amounts are currently
unclear and will be factored into Fitch's analysis as they
emerge.
Home price declines beyond Fitch's expectations could have a
negative effect on the ratings as these would limit expected
recoveries, causing additional stress on portfolio cashflows.
A further sharper increase in the CDR may cause Fitch to revise
its probability of default assumptions and may cause downgrades
to the rated notes.
===========================
U N I T E D K I N G D O M
===========================
GET JUICED: Put Up for Sale by Liquidators
------------------------------------------
Dominic Jeff at The Scotsman reports that Get Juiced, which went
bust last month, has been put on the market by its liquidators.
The company has ceased trading and laid off all its employees but
the liquidator is now targeting a quick sale and hopes the
company can be re-started under new ownership, The Scotsman
relates.
According to The Scotsman, Johnston Carmichael said it has
received interest from a variety of buyers including some in the
food and drinks sector.
The accountancy group has asked Glasgow-based intellectual
property specialist Metis Partners to sell Get Juiced, with this
Friday as the deadline for offers, The Scotsman discloses.
The firm was in a rapid growth phase when owner Frank Pawley ran
out of cash and was forced to give up on the venture, The
Scotsman recounts.
Get Juiced is a Stirling-based up-market soft drinks company.
HMV GROUP: Pension Fund Set to Lose More Than GBP250 Million
------------------------------------------------------------
Graham Ruddick at The Telegraph reports that the HMV pension fund
is among a collection of creditors set to lose more than GBP250
million after the collapse of the entertainment retailer into
administration earlier this year.
An update on the administration progress from Deloitte shows that
bank lenders have recovered GBP38.6 million from HMV and that
advisers are in line to collect up to GBP15 million, The
Telegraph relates.
However, Deloitte has warned that HMV's defined benefit pension
scheme, which is entitled to GBP26 million, and unsecured
creditors such as suppliers and landlords, who are owed GBP157
million, are not expected to receive anything from the
administration, The Telegraph discloses.
EMI, the record label that used to own HMV, is also listed as a
secured creditor for an undisclosed amount, The Telegraph notes.
According to The Telegraph, it is thought EMI held security over
some of HMV's leases -- which led to buyers of the record label
being warned it could face a liability of GBP150 million if HMV
collapsed -- and is also unlikely to receive a pay-out.
HMV collapsed into administration in January putting at risk 223
UK stores and 4,123 staff, The Telegraph recounts.
However, the 92-year-old retailer was rescued by restructuring
expert Hilco, which snapped up 141 shops and saved 2,643 jobs,
The Telegraph relates.
According to The Telegraph, the administrator's progress report
from Deloitte shows Hilco's deal was worth GBP40.1 million, which
will be distributed to the banking syndicate that backed HMV
before it collapsed into administration.
It also shows that Deloitte has charged almost GBP10 million for
running the administration, of which GBP4.5 million has already
paid, The Telegraph states.
In addition, law firm Linklaters has been paid GBP2.3 million and
Retail Agents 260 Limited, a Hilco vehicle brought in by Deloitte
to "advise on the trading of the business prior to its sale", has
received GBP2.7 million, The Telegraph notes.
"The level of recovery for the pension scheme does not affect the
benefits being paid to members as the Scheme is proceeding
through a Pension Protection Fund assessment period. PPF pays
set levels of compensation regardless of the amount of insolvency
debt recovery so members are protected at that level. We are not
aware of any factors that call in to question the Scheme's
eligibility for PPF compensation," the Telegraph quotes Chris
Martin, of Independent Trustee Services Limited, trustee of the
HMV Pension Scheme, as saying.
About HMV Group
United Kingdom-based HMV Group plc is engaged in retailing of
pre-recorded music, video, electronic games and related
entertainment products under the HMV and Fopp brands, and the
retailing of books principally under the Waterstone's brand. The
Company operates in four segments: HMV UK & Ireland, HMV
International, HMV Live, and Waterstone's.
On Jan. 14, HMV Group went into administration after suppliers
refused a request for a GBP300 million lifeline for the company.
Deloitte was appointed as administrator to the chain, which was
hit by growing competition from online rivals, supermarkets, and
illegal downloads.
J&S SURVEYORS: High Court Enters Wind-Up Order
----------------------------------------------
Three associated firms in Manchester that wrongly claimed they
could help companies reduce their business rates have been wound-
up in the public interest at the High Court following
investigations by the Insolvency Service.
J&S Surveyors Ltd, David Scott Surveyors Ltd and C&R Surveyors
Ltd wound up on Aug. 6, 2013 - made unsolicited calls to business
operators claiming they could get business rates significantly
reduced for a fee, but failed to deliver.
The three were run as successor companies. J&S was the first to
be set up, but ceased trading in July 2011 at around the same
time that DSS started to trade. DSS was abandoned around October
2011, when C&R started trading in its stead, before it too was
later abandoned. Each of the three companies was controlled by
the same two individuals and continued the same business model as
its predecessor company.
Investigations found that that once a business owner agreed to
make an appeal against their business rates, a cancellation fee
was payable. However, clients said that the cancellation terms
were not explained to them and they encountered difficulties in
contacting the companies.
The investigation also found that:
"The success rate of C&R was estimated at between 1 and 3 per
cent and yet potential new clients were assured that a
significant reduction could be achieved in every case. Those
behind the companies abandoned each one in turn, and did not take
adequate steps to ensure that the interests of clients and
creditors were safeguarded.
"Clients were encouraged to sign a 15-year contract but the
contracts were abandoned along with the companies when each
ceased to trade, despite clients having paid between œ495 and
GBP1,295 for the service.
"All three companies failed to maintain or preserve adequate
accounting records, such that, with particular regard to J&S and
DSS, it was impossible to adequately account for their income and
expenditure."
Commenting on the case, Scott Crighton, Investigation Supervisor
with the Insolvency Service, said:
"Each of these companies misled clients, mostly proprietors of
small businesses, into paying money through deception. Those in
control continued these sales practices from one company to the
next with little or no expectation of success and no apparent
regard for the interests of those clients, who were
systematically abandoned.
"Those tempted to engage in such practices should be aware that
the Insolvency Service will take firm and decisive action to
protect the public."
NATURE'S WORLD: Creditors Unlikely to Get Repayment
---------------------------------------------------
Gazette Live reports that creditors of the liquidated Nature's
World in Middlesbrough have put in claims for GBP1.8 million --
but are unlikely to get anything back.
The visitor attraction closed in January after efforts to find
new funding proved unsuccessful, the report says.
Gazette Live relates that directors of Nature's World -- a
registered charity -- made efforts over a number of months to
find new investors. And employees even agreed to defer their
salaries.
But the search proved unsuccessful and the charity went into
administration. It stopped trading over the festive period, the
report notes.
Gazette Live says the site, which was rented from Middlesbrough
Council for a peppercorn rent, has been given back to the
authority.
Stockton-based insolvency and recovery firm BWC was appointed as
joint administrator for the botanic centre, which is off Sandy
Flatts Lane in Acklam, the report adds.
TEMPLE DESIGN: Placed Into Provisional Liquidation
--------------------------------------------------
Two related telesales companies, Temple Design (UK) Ltd and
Leighton James Design Ltd, were put into provisional liquidation
on Aug. 15, 2013 by the High Court in Manchester following
investigations by the Insolvency Service.
The two companies operated from Greater Manchester and sold
advertising space in their publications to proprietors of small
businesses, using telephone cold calling techniques.
The orders placing the companies into provisional liquidation
follow petitions presented on public interest grounds by the
Secretary of State for Business, Innovation & Skills. The
Official Receiver has been appointed provisional liquidator.
The role of the provisional liquidator is to protect assets in
the possession or under the control of the companies pending the
determination of the petitions. The provisional liquidator also
has the power to investigate the affairs of the companies to
protect the assets, including any third party or trust funds or
assets in the possession of or under the control of the
companies.
The case is now subject to High Court action and no further
information will be made available until the petitions are heard
in the High Court on Oct. 7, 2013.
The petitions to wind-up Temple Design (UK) Ltd and Leighton
James Design Ltd were presented under s124A of the Insolvency Act
1986 on Aug. 14, 2013 and the orders appointing the provisional
liquidator were made on Aug. 15, 2013.
===============
X X X X X X X X
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* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
Aug. 22-24, 2013
AMERICAN BANKRUPTCY INSTITUTE
Southwest Bankruptcy Conference
Hyatt Regency Lake Tahoe, Incline Village, Nev.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 3-5, 2013
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Marriott Wardman Park, Washington, D.C.
Contact: http://www.turnaround.org/
Nov. 1, 2013
AMERICAN BANKRUPTCY INSTITUTE
NCBJ/ABI Educational Program
Atlanta Marriott Marquis, Atlanta, Ga.
Contact: 1-703-739-0800; http://www.abiworld.org/
Dec. 2, 2013
BEARD GROUP, INC.
19th Annual Distressed Investing Conference
The Helmsley Park Lane Hotel, New York, N.Y.
Contact: 240-629-3300 or http://bankrupt.com/
Dec. 5-7, 2013
AMERICAN BANKRUPTCY INSTITUTE
Winter Leadership Conference
Terranea Resort, Rancho Palos Verdes, Calif.
Contact: 1-703-739-0800; http://www.abiworld.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., Washington, D.C., 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 2013. 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$775 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 215-945-7000 or Nina Novak at
202-241-8200.
* * * End of Transmission * * *