/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/080812.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 Tuesday, August 12, 2008, Vol. 9, No. 159 Headlines A U S T R I A ELEKTROTECHNIK ING: Claims Registration Period Ends August 18 ELTRONA LLC: Claims Registration Period Ends August 20 INCENTRO DATA: Claims Registration Period Ends August 21 MUEHLBERGER LLC: Claims Registration Period Ends August 18 MYWAVE JSC: Claims Registration Period Ends August 18 XERIUM TECHNOLOGIES: Earns US$14.1 Mln in 2008 Second Quarter F R A N C E DELPHI CORP: Gets US$300MM More Exit Funding from General Motors G E O R G I A * GEORGIA: Fitch Lowers LT Local & Foreign Currency IDR to 'B+' G E R M A N Y BAVARIA KEYTRONIC: Claims Registration Period Ends August 19 BISANTECH-NUOVA VERWALTUNGS: Claims Registration Ends August 19 BUENDER KLINKERBAU: Claims Registration Period Ends August 19 DECO 7: S&P Places Class H Notes' BB Rating on Watch Negative DJP CONSULTING: Claims Registration Period Ends August 19 DOCOTEC GMBH: Claims Registration Period Ends August 19 DRESDNER BANK: Posts EUR1.03 Bln Net Loss for First Half 2008 IKB DEUTSCHE: KfW Signs Share Subscription Commitment Deal KING'S FASHION: Claims Registration Period Ends August 18 KL DEUTSCHLAND: Claims Registration Period Ends August 19 MISSAL INNENAUSBAU: Claims Registration Period Ends August 18 MIT CONSULTING: Claims Registration Period Ends August 19 MOEBA FERNWARME-TECHNIK: Claims Registration Period Ends Aug. 18 OTL OUTLET: Claims Registration Period Ends August 18 PERFECT BETEILIGUNGS: Claims Registration Period Ends August 19 TECHNISCHE BAU: Claims Registration Period Ends September 18 TR TRANSALL: Claims Registration Period Ends August 19 UBS AG: To Buy Back US$18.6 Billion Auction Rate Securities H U N G A R Y MASONITE CORPORATION: Moody's Cuts Debt Ratings to Caa1 I R E L A N D BALLANTYNE RE: S&P Cuts BB Debt Rating on Class A-1 Notes to B- I T A L Y PARMALAT SPA: Split Ways with Murray over Dairy Farmers Bid K A Z A K H S T A N AJS TRADING: Creditors Must File Proofs of Claim by September 25 ELEMAI-ASTYK LLP: Claims Filing Deadline Slated for September 25 KASPY OIL: Claims Filing Period Ends September 25 MEGASTROY-ALATAU LLP: Creditors' Claims Due on September 25 NUR SERVICE: Claims Registration Ends September 25 PRIBOR STROY: Claims Filing Deadline Slated for September 25 PROMSNUB LLC: Claims Filing Period Ends September 25 TELEP-ASB LLP: Creditors' Proofs of Claim Due on September 25 K Y R G Y Z S T A N GARANT CONSTRUCTION: Claims Filing Period Ends September 16 L U X E M B O U R G CRC BREEZE: S&P Puts EUR50MM Sub Notes' BB Rating on Watch Neg. N E T H E R L A N D S HARBOURMASTER CLO 3: Fitch Holds BB Rating on EUR15MM ClB2 Notes HARBOURMASTER CLO 4: Fitch Affirms 'BB' Ratings on Two Notes HARBOURMASTER CLO 5: Fitch Holds 'BB-' Rating on EUR6.6MM Notes HARBOURMASTER CLO 6: Fitch Affirms 'BB' Ratings on Three Notes HARBOURMASTER CLO 7: Fitch Affirms BB Ratings on Two Notes HARBOURMASTER CLO 8: Fitch Holds 'BB' Rating on EUR11.8MM Notes HARBOURMASTER CLO 9: Fitch Holds EUR19.25MM Notes Rating at 'BB' HARBOURMASTER CLO 10: Fitch Affirms 'BB' Rating on EUR9MM Notes HARBOURMASTER PRO: Fitch Holds Rating on EUR26MM Notes at 'BB' HARBOURMASTER PRO-RATA: Fitch Holds BB Rating on EUR17.5MM Notes R U S S I A AGRO-SERVICE: Court Names V. Vorobey as Administrative Receiver BRIANT LLC: Court Sets Supervision Hearing on November 11 BUILDING ASSEMBLY 12: Court Names A. Udachin to Manage Assets CRYSTAL-BEL CJSC: Proofs of Claim Filing Deadline Set Sept. 5 EAST CJSC: Proofs of Claim Filing Deadline Set September 5 EUROPEAN TRUST: Moody's Assigns E+ Financial Strength Rating FORT-PRESS CJSC: Proofs of Claim Filing Deadline Set September 5 GAS-STROY LLC: Names R. Akhairov as Administrative Receiver IRKUT CORP: Moody's Lowers Corporate Family Rating to Ba2 KURSK-AGRO-SEL-KHOZ-SNAB: Names Y. Lyashko to Manage Assets LES-MARKET LLC: Court Names N. Mukha as Administrative Receiver LIPETSK REGION: Fitch Puts 'BB-' Foreign & Local Currency IDRs NALCHIKSKIY STOCKINET: Court Sets Supervision Hearing on Sept. 5 NOVOROSSIYSKAYA ROAD: Court Sets Supervision Hearing on Sept. 29 POLYANA LLC: Court Starts Bankruptcy Supervision Procedure STREAM CJSC: Court Names I. Kolsanov as Administrative Receiver USMAN TOBACCO: Court Sets Supervision Hearing on November 20 S E R B I A & M O N T E N E G R O * S&P Puts Montenegro Banking Industry on BICRA Group 9 Category S P A I N * Fitch Sees TDA Worse-Than-Expected Collateral Performance S W I T Z E R L A N D AMCI JSC: August 22 Set as Deadline to File Proofs of Claim EMFG LLC: Creditors Must File Proofs of Claim by August 22 GENERAL MOTORS: Asks Ads Agencies for a 20% Fees Discount GENERAL MOTORS: Provides US$300MM to Help Delphi Exit Bankruptcy MARTI JSC: Deadline to File Proofs of Claim Set August 22 MORIBIE VERWALTUNG: Proofs of Claim Filing Deadline is Aug. 23 RHY-HOLZ JSC: Creditors' Proofs of Claim Due by August 23 U K R A I N E CREDIT DNEPR: Moody's Affirms E+ Bank Financial Strength Rating NAFTOGAZ NJSC: Moody's Lowers FC Corporate Family Rating to B1 * Moody's Holds Positive Outlook on Ukraine's Ratings U N I T E D K I N G D O M AIRE VALLEY: S&P Gives BB Rating on Class D GBP210 Million Notes ALPHABETA OPERATIONS: Taps Tenon Recovery to Administer Assets BAR GROUP: Seeks Protection from its Creditors BLUCAT LTD: Brings in Liquidators from Vantis Business Recovery CHESAPEAKE CORP: Moody's Junks Corporate Family Ratings to Caa2 CHRYSLER AUTOMOTIVE: Moody's Junks Corporate Family Rating COLT TELECOM: S&P Shifts Outlook to Positive; Affirms B Ratings COMMUNITY COMMUNICATION: Taps Administrators from Tenon Recovery DIGITAL THERAPY: Brings in Joint Administrators from Mazars DUNWOODY MARKETING: Exits Administration Without Print Unit E A CASTLE: David Elliott Leads Liquidation Procedure EXPRESS GLASS: Appoints Liquidator from BDO Stoy Hayward F1 ENGINEERING: Calls in Administrators from Tenon Recovery FEARNLEY ELECTRICAL: Joint Liquidators Take Over Operations GALACOURT LTD: Paperun Taps Receiver from PKF PHAROS INTERNATIONAL: Appoints Joint Administrators from Vantis SOUTHERN PACIFIC 05-3: S&P Puts BB/B Ratings on Watch Negative SOUTHERN PACIFIC 06-1: S&P Puts BB/B Ratings on Watch Negative SPACE KITCHENS: Calls in Joint Administrators from PKF ULMKE METALS: Taps Joint Administrators from BDO Stoy Hayward * Large Companies with Insolvent Balance Sheet ********* ============= A U S T R I A ============= ELEKTROTECHNIK ING: Claims Registration Period Ends August 18 ------------------------------------------------------------- Creditors owed money by LLC Elektrotechnik Ing. Nothard have until Aug. 18, 2008, to file written proofs of claim to the court-appointed estate administrator: Dr. Andreas Alzinger Karntner Ring 12 1010 Vienna Austria Tel: 515 50 333 Fax: 515 50 50 E-mail: a.alzinger@baierboehm.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on Sept. 1, 2008, for the examination of claims at: The Trade Court of Vienna Room 2101 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on July 2, 2008, (Bankr. Case No. 38 S 34/08i). ELTRONA LLC: Claims Registration Period Ends August 20 ------------------------------------------------------ Creditors owed money by LLC Eltrona have until Aug. 20, 2008, to file written proofs of claim to the court-appointed estate administrator: Norbert Abel Franz-Josefs-Kai 49/19 1010 Vienna Tel: 01/533 52 72 Fax: 01/533 52 72 15 E-mail: office@abel-abel.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 2:30 a.m. on Sept. 3, 2008, for the examination of claims at: The Land Court of Korneuburg Room 204 2nd Floor Korneuburg Austria Headquartered in Schwechat, Austria, the Debtor declared bankruptcy on July 2, 2008,(Bankr. Case No. 36 S 82/08p). INCENTRO DATA: Claims Registration Period Ends August 21 -------------------------------------------------------- Creditors owed money by JSC inCentro data services have until Aug. 21, 2008, to file written proofs of claim to the court- appointed estate administrator: Dr. Richard Proksch Am Heumarkt 9/I/11 1030 Vienna Tel: 713 46 51 Fax: 713 84 35 Austria E-mail: proksch@eurojuris.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on Sept. 4, 2008, for the examination of claims at: The Trade Court of Vienna Room 1707 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on July 2, 2008, (Bankr. Case No. 2 S 78/08w). MUEHLBERGER LLC: Claims Registration Period Ends August 18 ---------------------------------------------------------- Creditors owed money by LLC Muehlberger have until Aug. 18, 2008, to file written proofs of claim to the court-appointed estate administrator: Johannes Welzl Hauptplatz 21 4020 Linz Tel: 77 34 61 Fax: 78 27 32 E-mail: j.welzl.ra@rae-jlw.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:15 a.m. on Sept. 1, 2008, for the examination of claims at: The Land Court of Linz Room 522 5th Floor Linz Austria Headquartered in Traun, Austria, the Debtor declared bankruptcy on July 2, 2008, (Bankr. Case No. 12 S 57/08g). MYWAVE JSC: Claims Registration Period Ends August 18 ----------------------------------------------------- Creditors owed money by JSC Mywave have until Aug. 18, 2008, to file written proofs of claim to the court-appointed estate administrator: Dr. Erhard Hackl Hofgasse 7 4020 Linz Tel: 77 62 34-22 Fax: 77 62 34, 77 62 35 E-mail: hackl.hatak@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Sept. 1, 2008, for the examination of claims at: The Land Court of Linz Room 522 5th Floor Linz Austria Headquartered in Linz, Austria, the Debtor declared bankruptcy on July 2, 2008, (Bankr. Case No. 12 S 56/08k). XERIUM TECHNOLOGIES: Earns US$14.1 Mln in 2008 Second Quarter ------------------------------------------------------------- Xerium Technologies Inc. reported Wednesday results for the second quarter ended June 30, 2008. Net income increased 83.1% to US$14.1 million for the 2008 quarter, compared to net income of US$7.7 million for the 2007 quarter. The increase in net income was largely due to a US$13.7 million pre-tax, non-cash credit to interest expense reflecting the mark-to-market increase in the fair value of the company's interest rate swaps. Net sales for the 2008 quarter were US$170.4 million, a 10.9% increase from net sales for the 2007 quarter of US$153.7 million. Excluding the effects of currency on pricing and translation, second quarter 2008 net sales increased 2.8% from the second quarter of 2007, with a decline of 1.8% and an increase of 12.2% in the clothing and roll covers segments, respectively. "The transformation that we began in early 2008 is starting to show results," said Stephen Light, president, chief executive officer and chairman. "While the market continues to remain challenging, we believe we have improved our ability to compete effectively. We anticipate that most of the hard work to restructure certain operations and execute an amended credit agreement is now largely behind us. We've begun to reduce working capital as Xerium's employees remain focused on delivering the results we expect in our new business plan and paying down our debt." Gross margins were US$68.8 million or 40.4% of net sales for the 2008 quarter, compared to US$64.2 million or 41.8% of net sales for the 2007 quarter. Income from operations declined by 25.9% to US$17.7 million for the 2008 quarter from US$23.9 million for the 2007 quarter. During the second quarter of 2008, the company expensed approximately US$5.2 million to general and administrative expenses in connection with the amendments to its credit facility. In addition, for the second quarter of 2008, restructuring and impairment expenses increased by US$1.5 million to US$2.7 million from US$1.2 million in the second quarter of 2007. Net cash generated by operating activities was US$11.2 million for the 2008 quarter, which compares to US$14.8 million for the 2007 quarter. Cash provided by operating activities was decreased by approximately US$4.4 million related to amendment costs in the second quarter of 2008. The company has reduced working capital from 30% of revenues in the year-ago quarter to 27%. Adjusted EBITDA (as defined in the company's amended credit facility) was US$50.2 million for the 2008 quarter, compared to US$38.2 million for the 2007 quarter. Cash on hand at June 30, 2008, was US$25.4 million, compared to cash on hand at March 31, 2008, of US$31.0 million. Cash on hand at June 30, 2007, was US$24.7 million. During the 2008 quarter, Xerium made senior debt principal repayments of US$2.3 million. During the six months ended June 30, 2008, the company made senior debt repayments of US$13.5 million. Capital expenditures during the 2008 quarter were US$8.8 million, compared to US$7.3 million during the 2007 quarter. Balance Sheet At June 30, 2008, the company's consolidated balance sheet showed US$932.6 million in total assets, US$911.9 million in total liabilities, and US$20.7 million in total stockholders' equity. About Xerium Technologies Based on Youngsville, North Carolina, Xerium Technologies Inc. (NYSE: XRM) -- http://www.xerium.com/-- manufactures and supplies two types of consumable products used in the production of paper: clothing and roll covers. With 35 manufacturing facilities in 15 countries around the world, including Austria, Brazil and Japan, Xerium has approximately 3,700 employees. * * * As disclosed in the Troubled Company Reporter on June 9, 2008, Moody's Investors Service revised Xerium Technologies, Inc.'s outlook to positive from negative, upgraded its speculative grade liquidity rating to SGL-3 from SGL-4, and upgraded its probability of default rating to Caa1 from Caa2. As related in the Troubled Company Reporter on June 5, 2008, Standard & Poor's Ratings Services affirmed its ratings on Xerium Technologies Inc., including the 'CCC+' corporate credit rating, and removed them from CreditWatch, where they were originally placed with negative implications on March 19, 2008. At the same time, S&P assigned a positive outlook. =========== F R A N C E =========== DELPHI CORP: Gets US$300MM More Exit Funding from General Motors ---------------------------------------------------------------- General Motors Corp. will grant Delphi Corp. an additional US$300 million on top of the US$650 million already promised to help its former parts unit exit bankruptcy protection, The Wall Street Journal reports. WSJ, citing court papers, says that GM may increase its loans to its top supplier to US$950 million through the end of 2008 to reimburse Delphi for labor-related costs and other liabilities. WSJ relates that GM had agreed to assume these liabilities under a settlement entered into during the Chapter 11 case. The US$950 million, WSJ indicates, represents a portion of the amount GM would have paid Delphi had the supplier emerged from Chapter 11. GM will receive a top priority claim under bankruptcy law for the advances, WSJ notes. The agreement comes amid GM reporting a US$15.5 billion loss for the second quarter, US$2.8 billion of which was related to adjusting the accounting for its relationship with Delphi. GM agreed to increase the loan in July, at about the time the auto maker was patching together its own plan to boost liquidity by US$15 billion through 2009, The Journal states according to GM spokeswoman Julie Gibson. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. At March 31, 2008, GM's balance sheet showed total assets of US$145,741,000,000 and total debts of US$186,784,000,000, resulting in a stockholders' deficit of US$41,043,000,000. Deficit, at Dec. 31, 2007, and March 31, 2007, was US$37,094,000,000 and US$4,558,000,000, respectively. About Delphi Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for Chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represent the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. The Plan has not been consummated after a group led by Appaloosa Management, L.P., backed out from their proposal to provide US$2,550,000,000 in equity financing to Delphi. ============= G E O R G I A ============= * GEORGIA: Fitch Lowers LT Local & Foreign Currency IDR to 'B+' --------------------------------------------------------------- Fitch Ratings has downgraded Georgia's Long-term local and foreign currency Issuer Default ratings to 'B+' from 'BB-'. Following the downgrade, the Outlooks are now Negative. At the same time, the agency has downgraded Georgia's Country Ceiling to 'B+' from 'BB-' and affirmed the Short-term foreign currency IDR at 'B'. "The significant escalation in the military conflict between Georgian government forces and South Ossetian separatists in the last 24 hours and the elevated risk that Russia could become more deeply involved in the situation has materially increased downside risks to Georgia's sovereign creditworthiness," says Edward Parker, Head of Emerging Europe sovereigns at Fitch. "We will continue to monitor the situation closely, including any potential impact on the Georgian economy, and stand ready to take further rating action as we judge warranted by events." Over the past 24 hours there has been a serious escalation in fighting between Georgian government troops and South Ossetian separatist forces, involving the loss of life on both sides. The Russian authorities claim that Russian peacekeepers have been killed in the fighting and various reports suggest that Russian aircraft have become involved in military action and that Russian tanks are on the move. The agency has previously highlighted the risk of heightened conflict with Georgia's secessionist regions of South Ossetia and Abkhazia, and tense relations with Russia as a major rating weakness and risk. Events of the past 24 hours mark a significant escalation of the conflict and represent a material increase in political and war risks. Heightened or prolonged military conflict would carry economic costs and open up some potential channels of vulnerability for the Georgian economy. It would likely increase government expenditure and widen the budget deficit. Other risks include a fall in foreign investor confidence, which could reduce foreign direct investments and other capital inflows that are required to finance Georgia's substantial current account deficit, which was some 20% of GDP last year. In addition, if there were a reduction in the confidence of Georgian residents, that could add to pressures on the banking system, currency and foreign exchange reserves. Georgia's rating strengths include a moderate level of government debt, which was equivalent to 25% of GDP at end-2007, down from 71% at end-2002, and its dynamic economic growth performance. Real GDP grew by over 12% in 2007 and has averaged 9.7% over the past five years, driven by massive foreign investments and impressive structural reforms, underscored by its ranking of 18th in the 2008 World Bank Doing Business Survey. ============= G E R M A N Y ============= BAVARIA KEYTRONIC: Claims Registration Period Ends August 19 ------------------------------------------------------------ Creditors of BAVARIA KEYTRONIC Technologie GmbH have until Aug. 19, 2008, to register their claims with court-appointed insolvency manager Dr. Thilo Streck. Creditors and other interested parties are encouraged to attend the meeting at 10:10 a.m. on Sept. 19, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hamburg Hall B 405 Fourth Floor Annex Civil Justice Bldg. Sievkingplatz 1 20355 Hamburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Thilo Streck Neuer Wall 86 20354 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against BAVARIA KEYTRONIC Technologie GmbH on July 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: BAVARIA KEYTRONIC Technologie GmbH Attn: Michael Joseph Rogerson, Manager Kieler Strasse 103 22769 Hamburg Germany BISANTECH-NUOVA VERWALTUNGS: Claims Registration Ends August 19 --------------------------------------------------------------- Creditors of BISANTECH-NUOVA Verwaltungs GmbH have until Aug. 19, 2008, to register their claims with court-appointed insolvency manager Dr. Volkhard Frenzel. Creditors and other interested parties are encouraged to attend the meeting at 2:05 p.m. on Sept. 16, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Dessau-Rosslau Hall 123 Willy-Lohmann-Str. 33 Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Volkhard Frenzel Magdeburger Strasse 23 06112 Halle Germany Tel: 0345/2311111 Fax: 0345/2311199 The District Court of Dessau-Rosslau opened bankruptcy proceedings against BISANTECH-NUOVA Verwaltungs GmbH on July 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: BISANTECH-NUOVA Verwaltungs GmbH Attn: Stefan Kerk, Manager ChemiePark-Strasse 9 06749 Bitterfeld-Wolfen Germany BUENDER KLINKERBAU: Claims Registration Period Ends August 19 ------------------------------------------------------------- Creditors of Buender Klinkerbau GmbH have until Aug. 19, 2008, to register their claims with court-appointed insolvency manager Martin Kienitz. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Sept. 9, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bielefeld Hall 4065 Fourth Floor Gerichtstrasse 66 33602 Bielefeld Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Martin Kienitz Hahler Strasse 253 32427 Minden Germany The District Court of Bielefeld opened bankruptcy proceedings against Buender Klinkerbau GmbH on July 1, 2008s. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Buender Klinkerbau GmbH Attn: Liane Landwehr, Manager Wilhelmstr. 74 32257 Buende Germany DECO 7: S&P Places Class H Notes' BB Rating on Watch Negative ------------------------------------------------------------- Standard & Poor's Ratings Services has placed on CreditWatch with negative implications its 'BB' rating on the class H notes issued by Deco 7 � Pan Europe 2 PLC. The CreditWatch negative placement of the class H notes follows the payment default and subsequent acceleration of the Karstadt Kompakt loan and the official filing for insolvency of the main tenant, Hertie GmbH & Co KG. The Karstadt Kompakt loan is the largest remaining loan in the pool (34.8%). On July 24, 2008, a special notice was released by the servicer announcing the event of default following the borrower's failure to pay the full amount of the amortization instalment. The shortfall was EUR1.252 million. On Aug. 1, 2008, a special notice from the servicer stated that it had accelerated the loan by delivery of an acceleration notice to the borrower, a joint venture between Dawnay Day and Hilco. The joint venture between Dawnay Day and Hilco was 50:50 at closing, but S&P understands that Dawnay Day now holds a material majority interest. S&P notes that a recent portfolio valuation shows a current vacant possession value that is considerably higher than the outstanding loan amount of EUR269.4 million. S&P will continue to analyze the effect of the default of the Karstadt Kompakt loan on the ratings on the notes in Deco 7. S&P's analysis will focus on the various possible resolutions of the default, its assessment of recovery proceeds, and the impact on note default risks. S&P has some concerns that the complexity of any workout may increase due to the contemporaneous insolvency of the parent of the borrower and the principal tenant insolvency. Deco 7 is a multi-jurisdictional true sale CMBS transaction, which closed in March 2006. The transaction (which has been paid down by approximately 50.2% at the July 2008 interest payment date), was originally backed by 10 loans secured by 499 properties in Germany, The Netherlands, and Switzerland. According to the latest cash management report (July 2008 interest payment date), six loans remain in the pool with an outstanding principal balance of EUR774.6 million following the prepayment of four loans. DJP CONSULTING: Claims Registration Period Ends August 19 --------------------------------------------------------- Creditors of DJP Consulting GmbH have until Aug. 19, 2008, to register their claims with court-appointed insolvency manager Andreas Mueller-Stein. Creditors and other interested parties are encouraged to attend the meeting at 10:40 a.m. on Sept. 9, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cologne Meeting Hall 14 Luxemburger Strasse 101 50939 Cologne Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Andreas Mueller-Stein Schuetzenstr. 5 50126 Bergheim Germany The District Court of Cologne opened bankruptcy proceedings against DJP Consulting GmbH on June 26, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: DJP Consulting GmbH Lindlacher Weg 31 50259 Pulheim Germany Attn: Alfred Jurek, Manager Chalonweg 22 42699 Solingen Germany DOCOTEC GMBH: Claims Registration Period Ends August 19 ------------------------------------------------------- Creditors of Docotec GmbH have until Aug. 19, 2008, to register their claims with court-appointed insolvency manager Dr. Ferdinand Kiessner. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Sept. 30, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Baden-Baden Hall 009a Ground Floor Gutenbergstr. 17 76532 Baden-Baden Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Ferdinand Kiessner 77855 Achern Eisenbahnstr. 19-23 Germany The District Court of Baden-Baden opened bankruptcy proceedings against Docotec GmbH on July 8, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Docotec GmbH Attn: Hans Geldmacher, Manager Im Metzenacker 7 76532 Baden-Baden Germany DRESDNER BANK: Posts EUR1.03 Bln Net Loss for First Half 2008 ------------------------------------------------------------- Dresdner Bank AG posted a net loss of EUR1,029 million for the first half of 2008, compared to a net income of EUR1,050 million for the same period last year. The ongoing crisis hitting international finance markets has left its traces at Dresdner Bank in the first half of 2008. While the operating profit in the corporate sector Private & Corporate Clients amounted to EUR339 million in the first half of the fiscal year, the figure for Investment Banking showed minus EUR1,292 million. This is primarily a consequence of value adjustments of almost EUR1.4 billion, for instance, in the ABS account book and for Monoliner Exposure. The operating profit of Dresdner Bank subsequently fell from EUR1,097 million in the same period of the previous year to a figure of minus EUR964 million in the first half of 2008. Total operating expenses fell considerably by 12.8 per cent to EUR2,303 million. "The difficulties in the global capital market environment also had a negative influence on Dresdner Bank's results," reports Herbert Walter, Chairman of the Board of Managing Directors of Dresdner Bank. "In the private and medium-sized business segment, many of our customers are playing it safe. In the investment banking sector, we have continued our policy of reducing critical assets." Herbert Walter adds: "We maintain a strong operational discipline in both our credit policies and in terms of cost control. In addition to this, Dresdner Bank also maintains a stable balance and liquidity situation." Net interest and current income and net fee and commission income reflect customer attitudes The total operating income of Dresdner Bank amounted to EUR1,415 million, following EUR3,793 million in the same period of the previous year. This detrimental effect was predominantly due to the net trading income. Due to value adjustments in the first half of 2008, these fell from EUR640 million in the previous year's period to a figure of minus EUR1,146 million. Further, the current defensive attitude of customers with regard to securities transactions led to a drop in net fee and commission income of almost 23 per cent to EUR1,162 million. Net interest and current income remained at the previous year's one-time- effect adjusted high level of EUR1,399 million. Private & Corporate Clients with high yields In the Private & Corporate Clients segment, the total operating income was influenced by the cautious attitude of investors in the first six months of the year. The results fell by 8 per cent, to EUR1,716 million. The Private & Corporate Clients segment continued to show an appreciable yield with a return on risk-adjusted capital (RoRAC) after tax of 25.2 per cent. Another increase in the Private & Corporate Clients segment was seen in customer volume: this figure rose in mid-2008 to 6.52 million � 300,000 above the previous year's level. A positive development in new business was also registered in consumer loans and mortgage lending: in the first half of 2008, this rose, in comparison with the previous year's figures, by 21 per cent, to EUR2,147 million. In a half-year comparison of the deposits sector, Dresdner Bank recorded an increase in customer deposits of 13 per cent, to EUR68 billion. At the same time, the growth initiatives launched in the second quarter got off to a successful start: The new product line, dresdner bank direct24 registered approximately 230,000 users in the first weeks after its launch, one third of whom were new customers. The considerable influx of new customer assets is a cause for particular satisfaction: With "direct 24", Dresdner Bank has successfully secured around EUR1 billion of customer assets which would otherwise have been deposited with competitors. The campaign for small and medium sized enterprises (SME, "Mittelstand") is also showing positive effects: for instance, new Dresdner Bank products made an additional credit volume of EUR700 million available to SMEs in Germany. Further growth in this customer segment has also been registered. Earnings from Corporate Banking rose by 6 per cent in the second quarter. Earnings fell in the Capital Markets segment, Global Banking remained stable At Dresdner Kleinwort, the development of earnings in the first half of 2008 was influenced by the capital markets crisis. Total operating income from investment banking amounted to minus EUR254 million. The Credit Derivatives Division within Capital Markets was particularly hard hit by the crisis on the financial markets: income showed a figure of minus EUR846 million as a consequence of value adjustments. In comparison, the Global Banking Division achieved an income of EUR643 million. Total assets and risk-weighted assets in investment banking were reduced and margins rose. The operational cost base of the corporate division fell considerably � credit risks range at a low level. Costs are decreasing, the capital base is stable As already seen in the first quarter, Dresdner Bank again reveals an ongoing operational discipline throughout the second quarter. The decrease in total operating expenses of almost 13 per cent is not only a consequence of lower service-dependent commissions, when compared with the same period of the previous year, but is also due to the reduction of the cost base. On the whole, total staff costs fell by EUR324 million to EUR1,369 million. At the same time, non-staff operating costs decreased by EUR48 million to EUR897 million. In the case of loan impairment allowances, Dresdner Bank registered a moderate net increase of EUR76 million in the first half of 2008. This reflects the consistently excellent quality of the loan portfolio. As of June 30, 2008, Dresdner Bank has reduced its total assets to EUR480 billion. The core capital ratio according to Basel II lies above the targeted bandwidth with a figure of 9.3 per cent. About Dresdner Bank Based in Frnakfurt.Main, Dresdner Bank AG -- http://www.dresdner-bank.com/-- is a commercial bank. It has a network of 838 domestic branch offices and is represented in a number of centers outside Germany. The Bank is a wholly owned subsidiary of Allianz AG, Munich, Germany, and serves approximately 6.5 million customers. It offers a range of banking products and financial services, such as lending and deposits, capital market products, corporate advisory and financial services, payment transactions, as well as securities and custody business. In addition, the Bank is active in the investment business. As part of the Allianz Group, Dresdner Bank distributes life, health and non-life insurance products from the Allianz Group. The Bank's activities are structured into two business divisions. Offerings for private and business clients are combined in Private and Corporate Clients, whereas Investment Banking bundles advisory services for enterprises and institutions. * * * Dresdner Bank AG continues to carry 'C' Individual rating from Fitch. Fitch downgraded the rating to its current level from 'B/C' in March 2008. IKB DEUTSCHE: KfW Signs Share Subscription Commitment Deal ---------------------------------------------------------- Kreditanstalt fur Wiederaufbau Bankengruppe and IKB Deutsche Industriebank AG have signed a commitment pursuant to which KfW will subscribe for, or procure that a third party subscribes for, such amount of shares issued under the capital increase resolved by the general shareholders' meeting of March 27, 2008, that IKB receives proceeds totaling EUR1.25 billion. The commitment by KfW is subject to the condition precedent that the European Commission reaches a decision by Oct. 25, 2008, that KfW's participation in the capital increase does either not constitute state aid or is approved as state aid. A decision by the European Commission is expected in October 2008. IKB will amend the prospectus for the rights offering dated July 25, 2008, by publishing a supplement to the prospectus. The details of the commitment by KfW are described in the supplement to the prospectus. Shareholders who have made a declaration exercising subscription rights before the publication of the supplement may rescind this declaration within two business days after publication of the supplement. The period in which the right to rescind such declarations may be exercised will end after expiration of the subscription period. About IKB Deutsche Headquartered in Dusseldorf, Germany, IKB Deutsche Industriebank AG -- http://www.ikb.de/-- provides medium-sized companies with long-term financing. The bank operates in several German locations, as well as branches in the United Kingdom, Luxembourg, Spain and France. IKB had previously invested in securitized loans on the US market for subprime mortgages, which are now almost worthless. This resulted in a deep-seated crisis within the bank, pushing it on the brink of bankruptcy. * * * Moody's Investors Service currently rates IKB Deutsche Industriebank AG's bank financial strength at E; subordinated debt at Ba2; junior subordinated securities at Ca and hybrid capital instruments eligible for Tier 1 capital and the preferred securities of IKB Funding Trust I & II at Caa3. The ratings, which were downgraded to their current level in April 2008, have stable outlook. KING'S FASHION: Claims Registration Period Ends August 18 --------------------------------------------------------- Creditors of King's Fashion GmbH have until Aug. 18, 2008, to register their claims with court-appointed insolvency manager Christina Siegert. Creditors and other interested parties are encouraged to attend the meeting at 9:10 a.m. on Sept. 17, 2008, at which time the insolvency manager will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Munich Meeting Hall 102 Infanteriestr. 5 80097 Munich Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Christina Siegert Oskar-von-Miller Ring 34-36 80333 Munich Germany Tel: 089-24440930 Fax: 089-244409365 The District Court of Munich opened bankruptcy proceedings against King's Fashion GmbH on June 24, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: King's Fashion GmbH Attn: Robert Decker, Manager Beislerstr. 31 82194 Groebenzell Germany KL DEUTSCHLAND: Claims Registration Period Ends August 19 --------------------------------------------------------- Creditors of KL Deutschland GmbH have until Aug. 19, 2008, to register their claims with court-appointed insolvency manager Michael Schmitz. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Sept. 19, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Duisburg Hall C205 Second Floor Kardinal-Galen-Strasse 124-132 47058 Duisburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Michael Schmitz Am Flohbusch 1-3 47802 Krefeld Germany The District Court of Duisburg opened bankruptcy proceedings against KL Deutschland GmbH on July 15, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: KL Deutschland GmbH Hingbergstr. 365 45472 Muelheim an der Ruhr Germany MISSAL INNENAUSBAU: Claims Registration Period Ends August 18 ------------------------------------------------------------- Creditors of Missal Innenausbau Parkett- und Dielenstudio GmbH have until Aug. 18, 2008, to register their claims with court- appointed insolvency manager Christian Goedecke. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Sept. 6, 2008, at which time the insolvency manager will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Wolfsburg Hall D Rothenfelder Strasse 43 38440 Wolfsburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Christian Goedecke Schiffgraben 23 30159 Hannover Germany Tel: 0511/7635290 Fax: 0511/76352943 E-mail: hannover@dr-moderegger.de Web site: http://www.dr-moderegger.de The District Court of Wolfsburg opened bankruptcy proceedings against Missal Innenausbau Parkett- und Dielenstudio GmbH on June 27, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Missal Innenausbau Parkett- und Dielenstudio GmbH Laagbergstr. 49 38440 Wolfsburg Germany Attn: Volker Missal, Manager Breslauer Str. 263 38440 Wolfsburg Germany MIT CONSULTING: Claims Registration Period Ends August 19 --------------------------------------------------------- Creditors of MIT Consulting GmbH have until Aug. 19, 2008, to register their claims with court-appointed insolvency manager Dr. Steffen Koch. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on Sept. 30, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Reinbek Parkallee 6 21465 Reinbek Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Steffen Koch Albert-Einstein-Ring 11 22761 Hamburg Germany The District Court of Reinbek opened bankruptcy proceedings against MIT Consulting GmbH on July 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: MIT Consulting GmbH Attn: Stephan Kizina, Manager Von-Bronsart-Str. 2 22885 Barsbuettel Germany MOEBA FERNWARME-TECHNIK: Claims Registration Period Ends Aug. 18 ---------------------------------------------------------------- Creditors of MoeBa Fernwarme-Technik GmbH have until Aug. 18, 2008, to register their claims with court-appointed insolvency manager Dr. Tibor Braun. Creditors and other interested parties are encouraged to attend the meeting at 8:30 a.m. on Sept. 18, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Esslingen Hall 1 First Floor Ritterstr. 5 Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Tibor Braun Kriegerstr. 3 70191 Stuttgart Germany Tel: 0711/225583-0 Fax: 225583-20 The District Court of Esslingen opened bankruptcy proceedings against MoeBa Fernwarme-Technik GmbH on July 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: MoeBa Fernwarme-Technik GmbH Attn: Juergen Bader and Gerald Roehl, Manager Albstr. 29 73240 Wendlingen Germany OTL OUTLET: Claims Registration Period Ends August 18 ----------------------------------------------------- Creditors of OTL Outlet GmbH have until Aug. 18, 2008, to register their claims with court-appointed insolvency manager Martin Schoebe. Creditors and other interested parties are encouraged to attend the meeting at 9:45 a.m. on Sept. 18, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Ingolstadt Meeting Hall 28 I Schrannenstr. 3 85049 Ingolstadt Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Martin Schoebe Marie-Curie-Strasse 6 85055 Ingolstadt Germany Tel: 0841/9014-200 Fax: 0841/9014-205 The District Court of Ingolstadt opened bankruptcy proceedings against OTL Outlet GmbH on July 11, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: OTL Outlet GmbH Attn: Roland Turtl, Manager Niederfelder Strasse 48 b 85077 Manching Germany PERFECT BETEILIGUNGS: Claims Registration Period Ends August 19 --------------------------------------------------------------- Creditors of Perfect Beteiligungs GmbH have until Aug. 19, 2008, to register their claims with court-appointed insolvency manager Dr. Bernd Sundermeier. Creditors and other interested parties are encouraged to attend the meeting at 2:15 p.m. on Sept. 9, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Oldenburg Meeting hall Second Floor Elisabethstrasse 6 26135 Oldenburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Bernd Sundermeier Alte Wiefelsteder Strasse 3 26316 Varel Germany Tel: 04451 913880 Fax: 04451 913839 The District Court of Oldenburg opened bankruptcy proceedings against Perfect Beteiligungs GmbH on July 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Perfect Beteiligungs GmbH Wilhelmshavener Heerstr. 79 26125 Oldenburg Germany TECHNISCHE BAU: Claims Registration Period Ends September 18 ------------------------------------------------------------ Creditors of TBP Technische Bau & Putz GmbH have until Sept. 18, 2008, to register their claims with court-appointed insolvency manager Reinhard Titz. Creditors and other interested parties are encouraged to attend the meeting at 12:30 p.m. on Sept. 25, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hamburg Meeting Hall B 405 Fourth Floor Sievkingplatz 1 20355 Hamburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Reinhard Titz Gertrudenstrasse 3 20095 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against TBP Technische Bau & Putz GmbH on July 2, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: TBP Technische Bau & Putz GmbH Attn: Hasan Yildirim, Manager Marshallweg 6 22111 Hamburg Germany TR TRANSALL: Claims Registration Period Ends August 19 ------------------------------------------------------ Creditors of TR Transall GmbH have until Aug. 19, 2008, to register their claims with court-appointed insolvency manager Stefan von der Ahe. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Sept. 12, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Leer Hall 101 Woerde 5 26789 Leer Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Stefan von der Ahe Dr.-Warsing-Str. 205 26802 Moormerland Germany Tel: 04954/9570-0 Fax: 04954/9570-60 The District Court of Leer opened bankruptcy proceedings against TR Transall GmbH on June 27, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: TR Transall GmbH Wankelstrasse 29 26802 Moormerland Germany UBS AG: To Buy Back US$18.6 Billion Auction Rate Securities ----------------------------------------------------------- UBS AG on Friday, Aug. 8, 2008, announced a settlement, in principle, with the New York Attorney General, the Massachusetts Securities Division, the U.S. Securities and Exchange Commission and other state regulatory agencies represented by North American Securities Administrators Association to restore liquidity to all remaining clients' holdings of auction rate securities. Under the agreement in principle, UBS has committed to purchase a total of US$8.3 billion of ARS, at par, from most private clients during a two-year time period beginning January 1, 2009. Private clients and charities holding less than US$1 million in household assets at UBS will be able to avail themselves of this relief beginning Oct. 31, 2008. From mid-September, UBS will provide loans at no cost to the client for the par value of their ARS holdings. In addition, UBS has also committed to provide liquidity solutions to institutional investors and will agree from June 2010 to purchase all or any of the remaining US$10.3 billion, at par, from its institutional clients. Today's news is in addition to the firm's recently announced intention to repurchase US$3.5 billion of tax-exempt Auction Preferred Stock. "Today's solution provides further relief, beginning in September, to investors who have been understandably frustrated by the industry-wide failure of the ARS market. Our leading position in supporting the market and providing liquidity is clear, and now, we are the first firm to give all clients -- private, corporate and institutional the opportunity to be made whole," Marten Hoekstra, Head of UBS Wealth Management Americas, said. "Since the breakdown in the market, UBS clients have been offered multiple liquidity options. They have been able to borrow 100 percent against the value of their holdings. The solutions announced today provide our clients with the widest range of choices in the industry, including a two-year window during which clients can either continue to earn interest or redeem their ARS at any time," Mr. Hoekstra added. The firm has also agreed to pay a fine of US$150 million � US$75 million to the state of New York and US$75 million to other state regulatory agencies. UBS neither admits nor denies allegations of wrongdoing. The full cost of the proposed settlement, taking into account the projected redemption patterns of clients, the difference between the purchase prices and the current market value of client ARS holdings, and the regulatory fine related to the settlements, is estimated to be in the range of US$900 million on a pre-tax basis, to be booked in the second quarter results. This includes reimbursements to all clients for losses incurred from sales of ARS holdings between Feb. 13 and Aug. 8, 2008. A provision for the costs of this settlement will be included in the firm's second quarter financial results, which will be announced on Aug.12, 2008. Results, including this settlement, for UBS AG for the second quarter will be consistent with guidance given by the firm on July 4, 2008. Attorney General's Securities Fraud Lawsuit As reported in the Troubled Company Reporter-Europe on July 28, 2008, Attorney General Andrew M. Cuomo filed a multi-billion dollar securities fraud lawsuit against UBS AG's U.S. units -- UBS Securities LLC and UBS Financial Services Inc. The lawsuit charges UBS with falsely selling and marketing auction rate securities as safe, highly liquid, and cash- equivalent securities. However, Mr. Cuomo said the representations were deceptive as the auction rate securities market came under tremendous strain, leaving the securities with mounting liquidity risks that eventually blocked thousands of customers across New York and the nation from accessing their holdings. According to Mr. Cuomo, UBS customers are currently holding more than US$25 billion in illiquid, long-term paper as a result of UBS's fraudulent misrepresentations and illegal conduct. Mr. Cuomo's investigation into UBS also discovered that as the securities market started to collapse, the bank's top executives quickly sold-off US$21 million in personal holdings of auction rate securities, but continued to market the securities to its consumers. Internal UBS e-mails subpoenaed by Mr. Cuomo detail top executives' efforts to sell-off personal holdings of auction rate securities. Mr. Coumo stated that UBS misrepresented the risks of auction rate securities to its retail clients and other customers. UBS Financial Advisors marketed auction rate securities to UBS customers as liquid, short-term investments that were similar to money market instruments with interest rates that would reset at periodic auctions based on the bids submitted by market participants. Customers then received account statements that identified auction rate securities as cash equivalent securities. UBS's representations were false; in fact, UBS knew that the auction rate securities market was becoming increasingly strained and that UBS was considering various options with respect to auction rate securities, including letting auctions fail. Mr. Coumo went on to say that UBS's fraudulent sales practices proved effective - UBS stood out as a market leader in auction rate securities sales. As of February 2008, UBS had more than 50,000 customer accounts holding auction rate securities, including over 7,000 New York customer accounts. On Feb. 13, 2007, UBS stopped supporting its auctions, and UBS customers learned, much to their shock and dismay, that they could not get access to billions in what they believed was as liquid as cash. In the final months of 2007 and in the early weeks of 2008, Mr. Coumo said UBS's management became increasingly concerned with the unsustainable growth in its holdings of auction rate securities and its need to support auctions in order to avoid auction failures. UBS created an auction rate securities working group specifically to address the floundering market. During this period, UBS also looked for ways to have its financial advisors sell auction rate securities and lessen the mounting pressure of UBS's growing inventory. While many options were discussed, the only one that was repeatedly implemented was to re-double sales efforts to UBS clients. Mr. Coumo also noted that despite UBS's aggressive marketing of auction rate securities to consumers, the bank's top management continued to demonstrate serious concern over the health of the overall market. Furthermore, at least seven working group members sold a collective US$21 million of their personal auction rate securities after the working group had been formed. Mr. Coumo's lawsuit seeks to require UBS to buy back auction rate securities from defrauded customers at par. It also seeks disgorgement of ill-gotten gains, restitution and other damages, and injunctions from further violations of New York's Martin Act. The lawsuit was filed in the Supreme Court of New York, New York County. The case is being handled by Assistant Attorneys General Pamela Lynam Mahon, Ethan Zlotchew, and Christopher Mulvihill, as well as Economist for the Division of Economic Justice Kitty Kay Chan, under the supervision of Investor Protection Bureau Chief David A. Markowitz and Executive Deputy Attorney General for Economic Justice Eric Corngold. About UBS AG Based in Zurich, Switzerland, UBS AG -- http://www.ubs.com/-- is a global provider of financial services for wealthy clients. UBS's financial businesses are organized on a worldwide basis into three Business Groups and the Corporate Center. Global Wealth Management & Business Banking consists of three segments: Wealth Management International & Switzerland, Wealth Management US and Business Banking Switzerland. The Business Groups Investment Bank and Global Asset Management constitute one segment each. The Industrial Holdings segment holds all industrial operations controlled by the Group. Global Asset Management provides investment products and services to institutional investors and wholesale intermediaries around the globe. The Investment Bank operates globally as a client-driven investment banking and securities firm. The Industrial Holdings segment comprises the non-financial businesses of UBS, including the private equity business, which primarily invests UBS and third-party funds in unlisted companies. ============= H U N G A R Y ============= MASONITE CORPORATION: Moody's Cuts Debt Ratings to Caa1 ------------------------------------------------------- Moody's Investors Service has downgraded various Masonite Corporation's debt ratings, including its CFR from B3 to Caa1. The outlook is negative. This concludes the review for possible downgrade initiated on July 9, 2008. The downgrade results from the expectation that business conditions are likely to remain weak over the intermediate horizon, leading to financial pressure, and the deterioration of credit metrics. Additionally, the company's negotiations with its bank group to address breached debt covenants remain unresolved at this time. Weakening business conditions, limit the company's negotiating options. The company's position would likely benefit if KKR, its equity sponsor, were to provide meaningful equity support. These debt ratings have been downgraded: -- Corporate family rating, downgraded to Caa1 from B3; -- Probability of default rating, downgraded to Caa2 from B3; These ratings have been affirmed and assessments changed: -- US$1,172 million Gtd. Sr. Sec. Term Loan due 2013, affirmed at B2. LGD assessment changed to LGD2, 22% from LGD3, 33%; -- US$350 million Gtd. Sr. Sec. Revolver due 2011, affirmed at B2. LGD assessment changed to LGD2, 22% from LGD3, 33%; -- Speculative grade liquidity rating, is affirmed at SGL-4. The senior secured credit facility was affirmed and as a result is now rated two notches higher than the company's CFR to reflect its senior status in the event of bankruptcy and its anticipated recovery in a default scenario. The downgrade in the company's probability of default rating reflects the view that the ongoing weakness in the homebuilding and remodeling slowdown has raised the probability that the company will default during this downturn. The CFR and the notching are primarily a result of the company's capital structure and are tiered to reflect anticipated recovery by debt class in the event of default per Moody's LGD rating methodology. The LGD rate has been changed to 40% from 50%. Anticipated recovery estimates consider both the company's capital structure and the value of the company's business/assets. The negative outlook results from the company's ongoing weak cash generation, and unresolved covenant violations. Masonite is headquartered in Ontario, Canada. The company is a leading global manufacturer of doors and door components with customers in over 70 countries and manufacturing facilities in 18 countries in North America, Europe, Latin America, Asia and Africa. Revenues for the trailing twelve month period ended March 31, 2008 were approximately US$2.1 billion. ============= I R E L A N D ============= BALLANTYNE RE: S&P Cuts BB Debt Rating on Class A-1 Notes to B- --------------------------------------------------------------- Standard & Poor's Ratings Services has lowered its senior debt rating on Ballantyne Re plc's Class A-1 notes to 'B-' from 'BB'. S&P also said that the rating on the notes remains on CreditWatch, where it was placed on Nov. 21, 2007, with negative implications. "We are taking this action in response to the continuing mark- to-market losses experienced on the assets in the underlying collateral accounts," explained S&P's credit analyst Gary Martucci. Since May 20, 2008, mark-to-market losses have increased, putting additional strain on the structure. As set forth in the most recent Scottish Re Group Ltd. 10K, US$375 million of excess reserves have been recaptured from Ballantyne Re. The 10K also said the transaction parties executed a binding letter of intent whereby they can recapture an additional US$200 million of excess reserves from Ballantyne Re, most likely in the third quarter of 2008. Although the Class A-1 notes have continued to receive interest payments, S&P's concern is that if the contemplated recapture does not occur, or if there is a continuing decline in the underlying asset values, even with the temporary relief provided by the recapture, it could result in an interest payment limitation trigger being breached. S&P will continue to monitor the developments related to this latest disclosure and take future ratings actions as warranted. Ballantyne Re plc and Orkney Re II plc are public limited companies established in Ireland as special purpose vehicles associated with Scottish Re (US), Inc., a subsidiary of Scottish Re Group Limited. Scottish Re Group Ltd. is a Cayman Islands company with principal executive offices located in Bermuda. ========= I T A L Y ========= PARMALAT SPA: Split Ways with Murray over Dairy Farmers Bid ----------------------------------------------------------- Parmalat S.p.A. has withdrawn from negotiations with Murray Goulburn Cooperative Co. over the creation of a consortium for acquiring Australian Co-Operative Foods Ltd., the company said in a statement. Parmalat said that no mutually satisfactory resolution on terms and conditions was reached. As appeared in the TCR-Europe, Parmalat and Murray will create a joint venture, Fresh Dairy Co., which would merge their and Dairy Farmers' fresh milk operations. Fresh Dairy -- in which Parmalat would hold a 51% stake and operational control while Murray would own 49% -- is expected to dominate over 50% of the Australian fresh white milk market. Murray, meanwhile, would acquire Dairy Farmers' non-fresh dairy operations, which include cheese, UHT milk and milk powder. Parmalat, through its Parmalat Australia unit, and Murray submitted a joint non-binding bid to acquire Dairy Farmers. The consortium have also applied for clearance from AAAC to submit a binding offer. About Parmalat Based in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has about 40 brand product lines, which include yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat S.p.A. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Ltd. serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. On June 21, 2007, the U.S. Court granted Parmalat permanent injunction. =================== K A Z A K H S T A N =================== AJS TRADING: Creditors Must File Proofs of Claim by September 25 ---------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP AJS Trading insolvent. Creditors have until Sept. 25, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Micro District Samal, 15-29 Taldykorgan Almaty Kazakhstan ELEMAI-ASTYK LLP: Claims Filing Deadline Slated for September 25 ---------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Pavlodar has declared LLP Elemai-Astyk insolvent. Creditors have until Sept. 25, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Pavlodar Gagarin Str. 18-49 Pavlodar Kazakhstan Tel: 8 (7182) 47-11-85 KASPY OIL: Claims Filing Period Ends September 25 ------------------------------------------------- The Specialized Inter-Regional Economic Court of West Kazakhstan has declared LLP Kaspy Oil Security insolvent. Creditors have until Sept. 25, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of West Kazakhstan Komsomolskaya Str. 82 Uralsk West Kazakhstan Kazakhstan MEGASTROY-ALATAU LLP: Creditors' Claims Due on September 25 ----------------------------------------------------------- LLP Construction Company Megastroy-Alatau has declared insolvency. Creditors have until Sept. 25, 2008, to submit written proofs of claims to: LLP Construction Company Megastroy-Alatau Sakinbai-batyr ave. 14d Aktobe Aktube Kazakhstan NUR SERVICE: Claims Registration Ends September 25 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Kyzylorda has declared LLP Nur Service & K insolvent. Creditors have until Sept. 25, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kyzylorda Jahaev Str. 71 Kyzylorda Kazakhstan Tel: 8 (72422) 27-23-65 PRIBOR STROY: Claims Filing Deadline Slated for September 25 ------------------------------------------------------------ The Specialized Inter-Regional Economic Court of West Kazakhstan has declared LLP Pribor Stroy Montage insolvent on June 30, 2008. Creditors have until Sept. 25, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of West Kazakhstan Komsomolskaya Str. 82 Uralsk West Kazakhstan Kazakhstan Tel: 8 (7112) 51-15-29 PROMSNUB LLC: Claims Filing Period Ends September 25 ---------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Promsnub LLC insolvent. Creditors have until Sept. 25, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Micro District Samal, 15-29 Taldykorgan Almaty Kazakhstan Tel: 8 (3282) 25-43-90 8 777 382 33-86 8 701 668 13-30 TELEP-ASB LLP: Creditors' Proofs of Claim Due on September 25 ------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Kyzylorda has declared LLP Telep-Asb insolvent. Creditors have until Sept. 25, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kyzylorda Jahaev Str. 71 Kyzylorda Kazakhstan Tel: 8 (72422) 27-23-65 =================== K Y R G Y Z S T A N =================== GARANT CONSTRUCTION: Claims Filing Period Ends September 16 ----------------------------------------------------------- LLC Garant Construction has declared insolvency. Creditors have until Sept. 16, 2008, to submit written proofs of claim. Inquiries can be addressed to (+996 312) 68-05-79. =================== L U X E M B O U R G =================== CRC BREEZE: S&P Puts EUR50MM Sub Notes' BB Rating on Watch Neg. --------------------------------------------------------------- Standard & Poor's Ratings Services has placed on CreditWatch with negative implications the 'BBB' rating on the EUR300 million class A senior secured notes due in 2026 and the 'BB+' rating on EUR50 million class B subordinated notes due in 2016 issued by CRC Breeze Finance S.A. "The CreditWatch placement reflects our concerns about the foundation problems found in 13 Vestas wind turbines in Germany, which represent 7.5% of total installed capacity of the Breeze Two portfolio," said S&P's credit analyst Ralf Etzelmueller. "It also reflects the lack of visibility regarding whether the other Vestas turbines in the portfolio face similar issues." Although these turbines are currently operational, it is uncertain what potential impact the necessary repairs could have on the project's cash flows. Breeze Two is currently investigating whether similar issues exist with the other Vestas turbines in the portfolio. "We expect to meet Breeze Two's technical adviser to gain more visibility about the seriousness of the foundation problems identified so far on the 13 turbines, whether any other turbines could be affected, and about the potential costs involved to make repairs," said Mr. Etzelmueller. "We expect to resolve the CreditWatch in November, by which time we also expect to gain more information about protection measures built into the project to mitigate any potential revenue losses." Breeze Finance, a Luxembourg-based special-purpose vehicle, has used the proceeds of these issues to make a loan to Breeze Two Energy GmbH & Co. KG (Breeze Two) and Eoliennes Suroit SNC. Breeze Two is a German limited partnership company and Eoliennes Suroit is a French unlimited liability partnership. Each have been formed for the purpose of acquiring, constructing, owning, and operating a portfolio of 39 wind farms with a capacity of 310 megawatts in Germany (Breeze Two) and 27 megawatts in France (Eoliennes Suroit). ===================== N E T H E R L A N D S ===================== HARBOURMASTER CLO 3: Fitch Holds BB Rating on EUR15MM ClB2 Notes ---------------------------------------------------------------- Fitch Ratings has affirmed the ratings of 11 classes of Harbourmaster CLO Pro Rata CLO 3 B.V. notes as listed below. -- EUR201.7 million Class A1-T floating-rate notes (ISIN: XS0306976266): affirmed at 'AAA' -- EUR153 million Class A1-VF floating-rate notes: affirmed at 'AAA' -- EUR95 million Class A2 floating-rate notes (ISIN: XS0306976696): affirmed at 'AAA' -- EUR52 million Class A3 floating-rate notes (ISIN: XS0306977157): affirmed at 'AA' -- EUR32 million Class A4 floating-rate notes (ISIN: XS0306977314): affirmed at 'A' -- EUR21.3 million Class B1 floating-rate notes (ISIN: XS0306978981): affirmed at 'BBB' -- EUR15 million Class B2 floating-rate notes (ISIN: XS0306979955): affirmed at 'BB' -- EUR15 million Class S1 combination notes (ISIN: XS0306980532): affirmed at 'AAA' -- EUR2.3 million Class S2 combination notes (ISIN: XS0306980706): affirmed at 'BBB' -- EUR9.3 million Class S3 combination notes (ISIN: XS0306981423): affirmed at 'BBB' -- EUR9.3 million Class S4 combination notes (ISIN: XS0306981779): affirmed at 'A-' Harbourmaster Pro Rata CLO 3 B.V. is a securitization of mainly European senior secured loans with the total note issuance of EUR612m invested in a target portfolio of EUR598 million. The portfolio is actively managed by Harbourmaster Capital Limited and advised by Harbourmaster Capital Management Limited (rated 'CAM1-' on Fitch's CDO Asset Manager Rating scale). Fitch released two new criteria on April 30, 2008: Global Criteria for Corporate CDOs and Global Criteria for Cash Flow Analysis in Corporate CDOs. At that time, Fitch noted that it would be reviewing its ratings with these two new criteria to establish consistency for existing and new ratings. The elements of the updated criteria having the greatest impact on the analysis of Harbourmaster Pro Rata CLO 3 include increased default probability assumptions for underlying assets, as well as stressed correlation assumptions to reflect the additional risk posed by portfolio concentrations. Fitch's new cash flow criteria also apply updated default timing and interest rate scenarios. In analyzing Harbourmaster Pro Rata CLO 3, Fitch has modified several elements of its public criteria. The most significant modification to the cash-flow methodology relates to a shortening of recovery timing to 12 months from 18 months after default for rating scenarios at 'BBB' and below. Fitch also used scenario analysis to determine whether the rated notes are in line with the agency's rating definitions. The most important scenario analysis tested how robust the rated notes are against individual obligor defaults. For example, the Class B1 notes can withstand the default of 20 assets on average or nine of the largest risk contributors and the Class B2 notes can withstand the default of 14 assets on average or six of the largest risk contributors. This analysis more accurately reflects Fitch's view of the credit quality of the portfolio, the transaction structure and the ability of the manager. While the credit enhancement is considered consistent with the current ratings, Fitch notes that the lower tranches of notes are most sensitive to scenarios where defaults occur at the end of the transaction's life, when assets are due to mature and there is limited opportunity for the structure to capture excess spread to protect the notes. The notional amounts of Class S1, Class S2, Class S3 and Class S4 refer to the outstanding rated balance. This takes into account all previous payments that have been used to reduce the note balance, in accordance with the terms and conditions of the notes. As of the review date, the portfolio contained loans from 65 obligors, with the largest exposure accounting for approximately 3% of the outstanding portfolio amount, and the three largest obligors accounting for 8% of the outstanding portfolio amount. Fitch makes downward adjustments for any names on Rating Watch Negative or Outlook Negative for default analysis in its Portfolio Credit Model. Although none of the assets are rated in the 'CCC' category on an unadjusted basis, on an adjusted basis approximately 5% of the assets are treated as 'CCC+' or below and the weighted average portfolio quality is 'B'. Of the assets in the portfolio 1% are on RWN, while 15% is on Outlook Negative. The largest single industry is business services with 14% of the portfolio volume. HARBOURMASTER CLO 4: Fitch Affirms 'BB' Ratings on Two Notes ------------------------------------------------------------ Fitch Ratings has affirmed 10 classes of Harbourmaster CLO 4 B.V. notes due 2019 as listed below. -- EUR337 million Class A1 floating-rate notes (ISIN: XS0203060339): affirmed at 'AAA' -- EUR28 million Class A2E floating-rate notes (ISIN: XS0203060925): affirmed at 'AAA' -- EUR40 million Class A2F fixed-rate notes (ISIN: XS0203061063): affirmed at 'AAA' -- EUR32 million Class A3 floating-rate notes (ISIN: XS0203061493): affirmed at 'AA' -- EUR16 million Class A4 floating-rate notes (ISIN: XS0203061659): affirmed at 'A' -- EUR11 million Class B1 floating-rate notes (ISIN: XS0203061907): affirmed at 'BBB' -- EUR4 million Class B2E floating-rate notes (ISIN: XS0203062467): affirmed at 'BB' -- EUR6 million Class B2F fixed-rate notes (ISIN: XS0203063945): affirmed at 'BB' -- EUR38.74 million Class S1 combination notes (ISIN:XS0203066294): affirmed at 'AAA' -- EUR4.84 million Class S2 combination notes (ISIN: XS0203066534): affirmed at 'BBB-' Harbourmaster CLO 4 B.V. is a securitization of mainly European senior secured loans with the total note issuance of EUR474 million invested in a target portfolio of EUR500 million. The portfolio is actively managed by Harbourmaster Capital Limited and advised by Harbourmaster Capital Management Limited (rated 'CAM1-' on Fitch's CDO Asset Manager Rating scale). Fitch released two new criteria on April 30, 2008: Global Criteria for Corporate CDOs and Global Criteria for Cash Flow Analysis in Corporate CDOs. At that time, Fitch noted that it would be reviewing its ratings with these two new criteria to establish consistency for existing and new ratings. The elements of the updated criteria having the greatest impact on the analysis of Harbourmaster CLO 4 include increased default probability assumptions for underlying assets, as well as stressed correlation assumptions to reflect the additional risk posed by portfolio concentrations. Fitch's new cash flow criteria also apply updated default timing and interest rate scenarios. In analyzing Harbourmaster CLO 4, Fitch has modified several elements of its public criteria. The most significant modification to the cash flow methodology relates to a shortening of recovery timing to 12 months from 18 months after default for rating scenarios at 'BBB' and below. Fitch also used scenario analysis to determine whether the rated notes are in line with the agency's rating definitions. The most important scenario analysis tested how robust the rated notes are against individual obligor defaults. For example, the Class A3 notes can withstand the default of 27 assets on average or 18 of the largest risk contributors, Class B1 notes can withstand the default of 22 assets on average or 12 of the largest risk contributors, and the Class B2E and B2F notes can withstand the default of 17 assets on average or eight of the largest risk contributors. This analysis more accurately reflects Fitch's view of the credit quality of the portfolio, the transaction structure and the ability of the manager. While the credit enhancement is considered consistent with the current ratings, Fitch notes that the tranches are most sensitive to scenarios where defaults occur at the end of the transaction's life, when assets are due to mature and there is limited opportunity for the structure to capture excess spread to protect the notes. The notional amounts of Class S1 and S2 refer to the outstanding rated balance. This takes into account all previous payments that have been used to reduce the note balance, in accordance with the terms and conditions of the notes. As of the review date, the portfolio contained loans from 61 obligors, with the largest exposure accounting for approximately 3% of the outstanding portfolio amount, and the three largest obligors accounting for 8% of the outstanding portfolio amount. Fitch makes downward adjustments for any names on RWN or Outlook Negative for default analysis in its Portfolio Credit Model. Although none of the assets are rated in the 'CCC' category on an unadjusted basis, on an adjusted basis approximately 5% of the assets are treated as 'CCC+' or below and the weighted average portfolio quality is 'B'. One obligor that makes up 3% of the portfolio is on RWN, while 11% are on Outlook Negative. The largest single industry is broadcasting & media with 12% of the portfolio volume. HARBOURMASTER CLO 5: Fitch Holds 'BB-' Rating on EUR6.6MM Notes --------------------------------------------------------------- Fitch Ratings has affirmed the ratings of 12 classes and withdrawn the rating of one class of Harbourmaster CLO 5 B.V. notes as listed below. -- EUR490 million Class A1 floating-rate notes (ISIN: XS0223502005): affirmed at 'AAA' -- EUR94.7 million Class A2E floating-rate notes (ISIN: XS0223502690): affirmed at 'AAA' -- EUR37.3 million Class A2F notes (ISIN: XS0223502856): affirmed at 'AAA' -- EUR32 million Class A3 floating-rate notes (ISIN: XS0223503078): affirmed at 'AA' -- EUR9 million Class A4E floating-rate notes (ISIN: XS0223503151): affirmed at 'A' -- EUR16 million Class A4F notes (ISIN: XS0223503581): affirmed at 'A' -- EUR4 million Class B1E floating-rate notes (ISIN: XS0223503664): affirmed at 'BBB' -- EUR15 million Class B1F notes (ISIN: XS0223503748): affirmed at 'BBB' -- EUR8.3 million Class B2E floating-rate notes (ISIN: XS0223503821): affirmed at 'BB' -- EUR6.7 million Class B2F notes (ISIN: XS0223504043): affirmed at 'BB' -- EUR6.6 million Class S1 combination notes (ISIN: XS0223504472): affirmed at 'BB-' -- EUR12.5 million Class S2 combination notes (ISIN: XS0223504555): affirmed at 'A' -- EUR25 million Class S3 combination notes (ISIN: XS0223504639): 'A' withdrawn Harbourmaster CLO 5 B.V. is a securitization of mainly European senior secured loans with the total note issuance of EUR764.5 million invested in a target portfolio of EUR750 million. The portfolio is actively managed by Harbourmaster Capital Limited and advised by Harbourmaster Capital Management Limited (rated 'CAM1-' on Fitch's CDO Asset Manager Rating scale). Fitch released two new criteria on April 30, 2008: Global Criteria for Corporate CDOs and Global Criteria for Cash Flow Analysis in Corporate CDOs. At that time, Fitch noted that it would be reviewing its ratings with these two new criteria to establish consistency for existing and new ratings. The elements of the updated criteria having the greatest impact on the analysis of Harbourmaster CLO 5 include increased default probability assumptions for underlying assets, as well as stressed correlation assumptions to reflect the additional risk posed by portfolio concentrations. Fitch's new cash flow criteria also apply updated default timing and interest rate scenarios. In analyzing Harbourmaster CLO 5, Fitch has modified several elements of its public criteria. The most significant modification to the cash flow methodology relates to a shortening of recovery timing to 12 months from 18 months after default for rating scenarios at 'BBB' and below. Fitch also used scenario analysis to determine whether the rated notes are in line with the agency's rating definitions. The most important scenario analysis tested how robust the rated notes are against individual obligor defaults. For example, the Class A2 notes can withstand the default of 37 assets on average or 29 of the largest risk contributors, the Class A4 notes can withstand the default of 29 assets on average or 18 of the largest risk contributors, and the Class B2 notes can withstand the default of 23 assets on average or 12 of the largest risk contributors. This analysis more accurately reflects Fitch's view of the credit quality of the portfolio, the transaction structure and the ability of the manager. While the credit enhancement is considered consistent with the current ratings, Fitch notes that the lower tranches of notes are most sensitive to scenarios where defaults occur at the end of the transaction's life, when assets are due to mature and there is limited opportunity for the structure to capture excess spread to protect the notes. Fitch has withdrawn the rating of the Class S3 combination notes as they have been exchanged for their component notes, and subsequently canceled. The notional amounts of the Class S1 and S2 refer to the outstanding rated balance. This takes into account all previous payments that have been used to reduce the note balance, in accordance with the terms and conditions of the notes. As of the review date, the portfolio contained loans from 73 obligors, with the largest exposure accounting for approximately 2% of the outstanding portfolio amount, and the three largest obligors accounting for 7% of the outstanding portfolio amount. Fitch makes downward adjustments for any names on Rating Watch Negative or Outlook Negative for default analysis in its Portfolio Credit Model. Although none of the assets are rated in the 'CCC' category on an unadjusted basis, on an adjusted basis approximately 8% of the assets are treated as 'CCC+' or below and the weighted average portfolio quality is 'B'. Of the assets in the portfolio 4% are on RWN, while 14% are on Outlook Negative. The largest single industry is broadcasting and media with 11% of the portfolio volume. HARBOURMASTER CLO 6: Fitch Affirms 'BB' Ratings on Three Notes -------------------------------------------------------------- Fitch Ratings has affirmed the ratings of 12 classes and withdrawn the rating of one class of Harbourmaster CLO 6 B.V. notes as listed below. -- EUR327.6 million Class A1 floating-rate notes (ISIN: XS0233868107): affirmed at 'AAA' -- EUR71 million Class A2 floating-rate notes (ISIN: XS0233873875): affirmed at 'AAA' -- EUR32 million Class A3 floating-rate notes (ISIN: XS0233875227) affirmed at 'AA' -- EUR4.5 million Class A4E floating-rate notes (ISIN: XS0233876209): affirmed at 'A' -- EUR8 million Class A4F notes (ISIN: XS0233876381): affirmed at 'A' -- EUR15.6 million Class B1 floating-rate notes (ISIN: XS0233876621): affirmed at 'BBB' -- EUR15.3 million Class B2 floating-rate notes (ISIN: XS0233877603): affirmed at 'BB' -- EUR3.5 million Class S1 combination notes (ISIN: XS0234258076): affirmed at 'BB' -- EUR9.5 million Class S2 combination notes (ISIN: XS0234259470): affirmed at 'A' -- EUR8.9 million Class S3 combination notes (ISIN: XS0234260643): affirmed at 'AAA' -- EUR9.2 million Class S4 combination notes (ISIN: XS0234648375): affirmed at 'BBB' -- EUR2.7 million Class S5 combination notes (ISIN: XS0234649696): 'BBB+' withdrawn -- EUR4 million Class S6 combination notes (ISIN: XS0234649852): affirmed at 'BB' Harbourmaster CLO 6 B.V. is a securitization of mainly European senior secured loans with the total note issuance of EUR511 million invested in a target portfolio of EUR500 million. The portfolio is actively managed by Harbourmaster Capital Limited and advised by Harbourmaster Capital Management Limited (rated 'CAM1-' on Fitch's CDO Asset Manager Rating scale). Fitch released two new criteria on April 30, 2008: Global Criteria for Corporate CDOs and Global Criteria for Cash Flow Analysis in Corporate CDOs. At that time, Fitch noted that it would be reviewing its ratings with these two new criteria to establish consistency for existing and new ratings. The elements of the updated criteria having the greatest impact on the analysis of Harbourmaster CLO 6 include increased default probability assumptions for underlying assets, as well as stressed correlation assumptions to reflect the additional risk posed by portfolio concentrations. Fitch's new cash flow criteria also apply updated default timing and interest rate scenarios. In analyzing Harbourmaster CLO 6, Fitch has modified several elements of its public criteria. The most significant modification to the cash flow methodology relates to a shortening of recovery timing to 12 months from 18 months after default for rating scenarios at 'BBB' and below. Fitch also used scenario analysis to determine whether the rated notes are in line with the agency's rating definitions. The most important scenario analysis tested how robust the rated notes are against individual obligor defaults. For example, the Class A3 notes can withstand the default of 29 assets on average or 23 of the largest risk contributors, the Class B1 notes can withstand the default of 23 assets on average or 11 of the largest risk contributors and the Class B2 notes can withstand the default of 15 assets on average or six of the largest risk contributors. This analysis more accurately reflects Fitch's view of the credit quality of the portfolio, the transaction structure and the ability of the manager. While the credit enhancement is considered consistent with the current ratings, Fitch notes that the lower tranches of notes are most sensitive to scenarios where defaults occur at the end of the transaction's life, when assets are due to mature and there is limited opportunity for the structure to capture excess spread to protect the notes. Fitch has withdrawn the rating of the EUR4 million Class S5 combination notes as they have been exchanged for their component notes, and subsequently canceled. The notional amounts of the Class S1-S6 refer to the outstanding rated balance. This takes into account all previous payments that have been used to reduce the note balance, in accordance with the terms and conditions of the notes. As of the review date, the portfolio contained loans from 63 obligors, with the largest exposure accounting for approximately 3% of the outstanding portfolio amount, and the three largest obligors accounting for 8% of the outstanding portfolio amount. Fitch makes downward adjustments for any names on Rating Watch Negative or Outlook Negative for default analysis in its Portfolio Credit Model. Although none of the assets are rated in the 'CCC' category on an unadjusted basis, on an adjusted basis approximately 9% of the assets are treated as 'CCC+' or below and the weighted average portfolio quality is 'B'. Of the assets in the portfolio 4% are on RWN, while 16% are on Outlook Negative. The largest single industry is broadcasting and media with 13% of the portfolio volume. HARBOURMASTER CLO 7: Fitch Affirms BB Ratings on Two Notes ---------------------------------------------------------- Fitch Ratings has affirmed the ratings of 10 classes and withdrawn the rating of one class of Harbourmaster CLO 7 B.V. notes as listed below. -- EUR576 million Class A1 floating-rate notes (ISIN: XS0273833516): affirmed at 'AAA' -- EUR149 million Class A2 floating-rate notes (ISIN: XS0273887363): affirmed at 'AAA' -- EUR41 million Class A3 floating-rate notes (ISIN: XS0273889229): affirmed at 'AA' -- EUR38 million Class A4 floating-rate notes (ISIN: XS0273890664): affirmed at 'A' -- EUR38 million Class B1 floating-rate notes (ISIN: XS0273891639): affirmed at 'BBB' -- EUR21 million Class B2 floating-rate notes (ISIN: XS0273893502): affirmed at 'BB' -- EUR1,682,162 Class S1 combination notes (ISIN: XS0273895200): affirmed at 'BB' -- EUR4,539,945 Class S2 combination notes (ISIN: XS0273896273): affirmed at 'AA' -- EUR2,789,060 Class S3 combination notes (ISIN: XS0273896943): 'BBB-' withdrawn -- EUR6,326,263 Class S4 combination notes (ISIN: XS0273897917): affirmed at 'BBB+' -- EUR3,594,369 Class S5 combination notes (ISIN: XS0273900992): affirmed at 'A-' Harbourmaster CLO 7 B.V. is a securitization of mainly European senior secured loans with the total note issuance of EUR925 million invested in a target portfolio of EUR900 million. The portfolio is actively managed by Harbourmaster Capital Limited and advised by Harbourmaster Capital Management Limited (rated 'CAM1-' on Fitch's CDO Asset Manager Rating scale). Fitch released two new criteria on April 30, 2008: Global Criteria for Corporate CDOs and Global Criteria for Cash Flow Analysis in Corporate CDOs. At that time, Fitch noted that it would be reviewing its ratings with these two new criteria to establish consistency for existing and new ratings. The elements of the updated criteria having the greatest impact on the analysis of Harbourmaster CLO 7 include increased default probability assumptions for underlying assets, as well as stressed correlation assumptions to reflect the additional risk posed by portfolio concentrations. Fitch's new cash flow criteria also apply updated default timing and interest rate scenarios. In analyzing Harbourmaster CLO 7, Fitch has modified several elements of its public criteria. The most significant modification to the cash flow methodology relates to a shortening of recovery timing to 12 months from 18 months after default for rating scenarios at 'BBB' and below. Fitch also used scenario analysis to determine whether the rated notes are in line with the agency's rating definitions. The most important scenario analysis tested how robust the rated notes are against individual obligor defaults. For example, the Class B1 notes can withstand the default of 20 assets on average or 11 of the largest risk contributors and the Class B2 notes can withstand the default of 14 assets on average or five of the largest risk contributors. This analysis more accurately reflects Fitch's view of the credit quality of the portfolio, the transaction structure and the ability of the manager. While the credit enhancement is considered consistent with the current ratings, Fitch notes that the lower tranches of notes are most sensitive to scenarios where defaults occur at the end of the transaction's life, when assets are due to mature and there is limited opportunity for the structure to capture excess spread to protect the notes. Fitch has withdrawn the ratings of the Class S3 combination notes as they have been exchanged for their component notes, and subsequently canceled. The notional amounts of Class S1-S5 combination notes refer to the outstanding rated balance. This takes into account all previous payments that have been used to reduce the note balance, in accordance with the terms and conditions of the notes. As of the review date, the portfolio contained loans from 69 obligors, with the largest exposure accounting for approximately 3% of the outstanding portfolio amount, and the three largest obligors accounting for 7% of the outstanding portfolio amount. Fitch makes downward adjustments for any names on Rating Watch Negative or Outlook Negative for default analysis in its Portfolio Credit Model. Although none of the assets are rated in the 'CCC' category on an unadjusted basis, on an adjusted basis approximately 4% of the assets are treated as 'CCC+' or below and the weighted average portfolio quality is 'B'. Less than 1% of the assets in the portfolio are on RWN, while 13% are on Outlook Negative. The largest single industry is broadcasting and media with 13% of the portfolio volume. HARBOURMASTER CLO 8: Fitch Holds 'BB' Rating on EUR11.8MM Notes --------------------------------------------------------------- Fitch Ratings has affirmed the ratings of six classes of Harbourmaster CLO 8 B.V. notes as listed below. -- EUR317 million Class A1 senior floating-rate notes (ISIN: XS0277545033): affirmed at 'AAA' -- EUR84 million Class A2 senior floating-rate notes (ISIN: XS0277549969): affirmed at 'AAA' -- EUR20.5 million Class B deferrable floating-rate notes (ISIN: XS0277554886) affirmed at 'AA' -- EUR23.2 million Class C deferrable floating-rate notes (ISIN: XS0277555933): affirmed at 'A' -- EUR21.1 million Class D deferrable floating-rate notes (ISIN: XS0277559174) affirmed at 'BBB' -- EUR11.8 million Class E deferrable floating-rate notes (ISIN: XS0277559844): affirmed at 'BB' Harbourmaster CLO 8 B.V. is a securitization of mainly European senior secured loans with the total note issuance of EUR512.6m invested in a target portfolio of EUR500 million. The portfolio is actively managed by Harbourmaster Capital Limited and advised by Harbourmaster Capital Management Limited (rated 'CAM1-' on Fitch's CDO Asset Manager Rating scale). Fitch released two new criteria on April 30, 2008: Global Criteria for Corporate CDOs and Global Criteria for Cash Flow Analysis in Corporate CDOs. At that time, Fitch noted that it would be reviewing its ratings with these two new criteria to establish consistency for existing and new ratings. The elements of the updated criteria having the greatest impact on the analysis of Harbourmaster CLO 8 include increased default probability assumptions for underlying assets, as well as stressed correlation assumptions to reflect the additional risk posed by portfolio concentrations. Fitch's new cash flow criteria also apply updated default timing and interest rate scenarios. In analyzing Harbourmaster 8, Fitch has modified several elements of its public criteria. The most significant modification to the cash flow methodology relates to a shortening of recovery timing to 12 months from 18 months after default for rating scenarios at 'BBB' and below. Fitch also used scenario analysis to determine whether the rated notes are in line with the agency's rating definitions. The most important scenario analysis tested how robust the rated notes are against individual obligor defaults. For example, the Class B notes can withstand the default of 29 assets on average or 22 of the largest risk contributors, the Class D notes can withstand the default of 18 assets on average or 10 of the largest risk contributors and the Class E notes can withstand the default of 13 assets on average or six of the largest risk contributors. This analysis more accurately reflects Fitch's view of the credit quality of the portfolio, the transaction structure and the ability of the manager. While the credit enhancement is considered consistent with the current ratings, Fitch notes that the lower tranches of notes are most sensitive to scenarios where defaults occur at the end of the transaction's life, when assets are due to mature and there is limited opportunity for the structure to capture excess spread to protect the notes. As of the review date, the portfolio contained loans from 62 obligors, with the largest exposure accounting for approximately 3% of the outstanding portfolio amount, and the three largest obligors accounting for 8% of the outstanding portfolio amount. Fitch makes downward adjustments for any names on Rating Watch Negative or Outlook Negative for default analysis in its Portfolio Credit Model. Although none of the assets are rated in the 'CCC' category on an unadjusted basis, on an adjusted basis approximately 6% of the assets are treated as 'CCC+' or below and the weighted average portfolio quality is 'B'. Of the assets 1% in the portfolio are on RWN, while 17% are on Outlook Negative. The largest single industry is broadcasting and media with 13% of the portfolio volume. HARBOURMASTER CLO 9: Fitch Holds EUR19.25MM Notes Rating at 'BB' ---------------------------------------------------------------- Fitch Ratings has affirmed the ratings of eight classes of Harbourmaster CLO 9 B.V. notes as listed below. -- EUR254.1 million Class A1-T floating-rate notes (ISIN: XS0296310856): affirmed at 'AAA' -- EUR269.5 million Class A1-VF floating-rate notes: affirmed at 'AAA' -- EUR46.2 million Class A2 floating-rate notes (ISIN: XS0296311581): affirmed at 'AAA' -- EUR50.05 million Class B floating-rate notes (ISIN: XS0296312126): affirmed at 'AA' -- EUR30.8 million Class C floating-rate notes (ISIN: XS0296312639): affirmed at 'A' -- EUR40.04 million Class D floating-rate notes (ISIN: XS0296313017): affirmed at 'BBB' -- EUR19.25 million Class E floating-rate notes (ISIN: XS0296313108): affirmed at 'BB' -- EUR2.8 million Class S combination notes (ISIN: XS0296313447): affirmed at 'BBB-' Harbourmaster CLO 9 B.V. is a securitization of mainly European senior secured loans with the total note issuance of EUR770 million invested in a target portfolio of EUR750.75 million. The portfolio is actively managed by Harbourmaster Capital Limited and advised by Harbourmaster Capital Management Limited (rated 'CAM 1-' on Fitch's CDO Asset Manager Rating scale). Fitch released two new criteria on April 30, 2008: Global Criteria for Corporate CDOs and Global Criteria for Cash Flow Analysis in Corporate CDOs. At that time, Fitch noted that it would be reviewing its ratings with these two new criteria to establish consistency for existing and new ratings. The elements of the updated criteria having the greatest impact on the analysis of Harbourmaster CLO 9 include increased default probability assumptions for underlying assets, as well as stressed correlation assumptions to reflect the additional risk posed by portfolio concentrations. Fitch's new cash flow criteria also apply updated default timing and interest rate scenarios. In analyzing Harbourmaster CLO 9, Fitch has modified several elements of its public criteria. The most significant modification to the cash flow methodology relates to a shortening of recovery timing to 12 months from 18 months after default for rating scenarios at 'BBB' and below. Fitch also used scenario analysis to determine whether the rated notes are in line with the agency's rating definitions. The most important scenario analysis tested how robust the rated notes are against individual obligor defaults. For example, the Class D notes can withstand the default of 26 assets on average or 13 of the largest risk contributors and the Class E notes can withstand the default of 21 assets on average or 10 of the largest risk contributors. This analysis more accurately reflects Fitch's view of the credit quality of the portfolio, the transaction structure and the ability of the manager. While the credit enhancement is considered consistent with the current ratings, Fitch notes that the lower tranches of notes are most sensitive to scenarios where defaults occur at the end of the transaction's life, when assets are due to mature and there is limited opportunity for the structure to capture excess spread to protect the notes. The notional amount of the Class S notes refers to the outstanding rated balance. This takes into account all previous payments that have been used to reduce the note balance, in accordance with the terms and conditions of the notes. As of the review date, the portfolio contained loans from 78 obligors, with the largest exposure accounting for approximately 2% of the outstanding portfolio amount, and the three largest obligors accounting for 7% of the outstanding portfolio amount. Fitch makes downward adjustments for any names on Rating Watch Negative or Outlook Negative for default analysis in its Portfolio Credit Model. Although none of the assets are rated in the 'CCC' category on an unadjusted basis, on an adjusted basis approximately 4% of the assets are treated as 'CCC+' or below and the weighted average portfolio quality is 'B'. Less than 1% of the assets in the portfolio are on RWN, while 17% are on Outlook Negative. The largest single industry is business services with 14% of the portfolio volume. HARBOURMASTER CLO 10: Fitch Affirms 'BB' Rating on EUR9MM Notes --------------------------------------------------------------- Fitch Ratings has affirmed the ratings of seven classes of Harbourmaster CLO 10 B.V. notes as listed below. -- EUR5 million Class X floating-rate notes (ISIN: XS0331132935): affirmed at 'AAA' -- EUR290 million Class A1 floating-rate notes (ISIN: XS0331138890): affirmed at 'AAA' -- EUR72 million Class A2 floating-rate notes (ISIN: XS0331143973): affirmed at 'AAA' -- EUR24 million Class A3 floating-rate notes (ISIN: XS0331156108): affirmed at 'AA' -- EUR41 million Class A4 floating-rate notes (ISIN: XS0331171081): affirmed at 'A' -- EUR22 million Class B1 floating-rate notes (ISIN: XS0331161017): affirmed at 'BBB' -- EUR9 million Class B2 floating-rate notes (ISIN: XS0331162684): affirmed at 'BB' Harbourmaster CLO 10 B.V. is a securitization of mainly European senior secured loans with the total note issuance of EUR495.8 million invested in a target portfolio of EUR500 million. The portfolio is actively managed by Harbourmaster Capital Limited and advised by Harbourmaster Capital Management Limited (rated 'CAM1-' on Fitch's CDO Asset Manager Rating scale). Fitch released two new criteria on April 30, 2008: Global Criteria for Corporate CDOs and Global Criteria for Cash Flow Analysis in Corporate CDOs. At that time, Fitch noted that it would be reviewing its ratings with these two new criteria to establish consistency for existing and new ratings. The elements of the updated criteria having the greatest impact on the analysis of Harbourmaster CLO 10 include increased default probability assumptions for underlying assets, as well as stressed correlation assumptions to reflect the additional risk posed by portfolio concentrations. Fitch's new cash flow criteria also apply updated default timing and interest rate scenarios. In analyzing Harbourmaster CLO 10, Fitch has modified several elements of its public criteria. The most significant modification to the cash flow methodology relates to a shortening of recovery timing to 12 months from 18 months after default for rating scenarios at 'BBB' and below. Fitch also used scenario analysis to determine whether the rated notes are in line with the agency's rating definitions. The most important scenario analysis tested how robust the rated notes are against individual obligor defaults. For example, the Class B1 notes can withstand the default of 22 assets on average or 11 of the largest risk contributors and the Class B2 notes can withstand the default of 18 assets on average or eight of the largest risk contributors. This analysis more accurately reflects Fitch's view of the credit quality of the portfolio, the transaction structure and the ability of the manager. While the credit enhancement is considered consistent with the current ratings, Fitch notes that the lower tranches of notes are most sensitive to scenarios where defaults occur at the end of the transaction's life, when assets are due to mature and there is limited opportunity for the structure to capture excess spread to protect the notes. As of the review date, the portfolio contained loans from 60 obligors, with the largest exposure accounting for approximately 3% of the outstanding portfolio amount, and the three largest obligors accounting for 7% of the outstanding portfolio amount. Fitch makes downward adjustments for any names on Rating Watch Negative or Outlook Negative for default analysis in its Portfolio Credit Model. Although none of the assets are rated in the 'CCC' category on an unadjusted basis, on an adjusted basis approximately 4% of the assets are treated as 'CCC+' or below and the weighted average portfolio quality is 'B'. Of the assets in the portfolio, 1% are on RWN, while 17% are on Outlook Negative. The largest single industry is broadcasting and media with 14% of the portfolio volume. HARBOURMASTER PRO: Fitch Holds Rating on EUR26MM Notes at 'BB' -------------------------------------------------------------- Fitch Ratings has affirmed the ratings of six classes of Harbourmaster Pro Rata CLO I B.V. notes as listed below. -- EUR160 million Class A1 floating-rate notes (ISIN: XS0253960735): affirmed at 'AAA' -- EUR35 million Class A2 floating-rate notes (ISIN: XS0253961386): affirmed at 'AA' -- EUR32 million Class A3 floating-rate notes (ISIN: XS0253963168): affirmed at 'A-' -- EUR28 million Class B1 floating-rate notes (ISIN: XS0253963754): affirmed at 'BBB' -- EUR26 million Class B2 floating-rate notes (ISIN: XS0253964307): affirmed at 'BB' -- EUR2.79 million Class S1 combination notes (ISIN: XS0255335340): affirmed at 'BBB' Harbourmaster Pro Rata CLO I B.V. is a securitization of mainly European senior secured loans with EUR318.98 million of note proceeds deposited in a guaranteed investment contract account and serves as collateral for the EUR850 million referenced portfolio. The portfolio is actively managed by Harbourmaster Capital Limited and advised by Harbourmaster Capital Management Limited (rated 'CAM 1- ' on Fitch's CDO Asset Manager Rating scale). Fitch released two new criteria on April 30, 2008: Global Criteria for Corporate CDOs and Global Criteria for Cash Flow Analysis in Corporate CDOs. At that time, Fitch noted that it would be reviewing its ratings with these two new criteria to establish consistency for existing and new ratings. The elements of the updated criteria having the greatest impact on the analysis of Harbourmaster Pro Rata CLO I B.V. include increased default probability assumptions for underlying assets, as well as stressed correlation assumptions to reflect the additional risk posed by portfolio concentrations. Fitch's new cash flow criteria also apply updated default timing and interest rate scenarios. In analyzing Harbourmaster Pro Rata CLO I B.V., Fitch has modified several elements of its public criteria. The most significant modification to the cash-flow methodology relates to a shortening of recovery timing to 12 months from 18 months after default for rating scenarios at 'BBB' and below. Fitch also used scenario analysis to determine whether the rated notes are in line with the agency's rating definitions. The most important scenario analysis tested how robust the rated notes are against individual obligor defaults. For example, the Class B2 notes can withstand the default of 22 assets on average or 10 of the largest risk contributors. This analysis more accurately reflects Fitch's view of the credit quality of the portfolio, the transaction structure and the ability of the manager. While the credit enhancement is considered consistent with the current ratings, Fitch notes that the lower tranches of notes are most sensitive to scenarios where defaults occur at the end of the transaction's life, when assets are due to mature and there is limited opportunity for the structure to capture excess spread to protect the notes. The notional amount of the Class S1 notes refers to the outstanding rated balance. This takes into account all previous payments that have been used to reduce the note balance, in accordance with the terms and conditions of the notes. As of the review date, the portfolio contained loans from 77 obligors, with the largest exposure accounting for approximately 3% of the outstanding portfolio amount, and the three largest obligors accounting for 8% of the outstanding portfolio amount. Fitch makes downward adjustments for any names on Rating Watch Negative or Outlook Negative for default analysis in its Portfolio Credit Model. Although none of the assets are rated in the 'CCC' category on an unadjusted basis, on an adjusted basis approximately 7% of the assets are treated as 'CCC+' or below and the weighted average portfolio quality is 'B'. Of the assets in the portfolio, 3% are on RWN, while 18% are on Outlook Negative. The largest single industry is cable with 12% of the portfolio volume. HARBOURMASTER PRO-RATA: Fitch Holds BB Rating on EUR17.5MM Notes ---------------------------------------------------------------- Fitch Ratings has affirmed the ratings on eleven classes and withdrawn the ratings of two classes of Harbourmaster Pro-Rata CLO 2 B.V. notes as listed below. -- EUR150 million Class A1VF notes (CUSIP: BCC0S1G34): affirmed at 'AAA' -- EUR199 million Class A1T notes (ISIN: XS0262176364): affirmed at 'AAA' -- EUR120 million Class A2 notes (ISIN: XS0262176794): affirmed at 'AAA' -- EUR43.5 million Class A3 notes (ISIN: XS0262176877): affirmed at 'AA' -- EUR6 million Class A4E notes (ISIN: XS0262177172): affirmed at 'A' -- EUR6.75 million Class A4F notes (ISIN: XS0262177255): affirmed at 'A' -- EUR2 million Class B1E notes (ISIN: XS0262177339): affirmed at 'BBB' -- EUR14.5 million Class B1F notes (ISIN: XS0262640575): affirmed at 'BBB' -- EUR17.5 million Class B2 notes (ISIN: XS0262177412): affirmed at 'BB' -- EUR12.7 million Class S1 notes (ISIN: XS0262178907): affirmed at 'BBB' -- EUR15 million Class S2 notes (ISIN: XS0262179202): 'BBB', withdrawn -- EUR3 million Class S3 notes (ISIN: XS0262179384): 'BBB', withdrawn -- EUR5.4 million Class S4 notes (ISIN: XS0262179467): affirmed at 'A-' Harbourmaster Pro-Rata CLO 2 B.V. is a securitization of mainly European senior secured loans with the total note issuance of EUR602 million invested in a target portfolio of EUR587.5 million. The portfolio is actively managed by Harbourmaster Capital Limited and advised by Harbourmaster Capital Management Limited (rated 'CAM1-' on Fitch's CDO Asset Manager Rating scale). Fitch released two new criteria on April 30, 2008: Global Criteria for Corporate CDOs and Global Criteria for Cash Flow Analysis in Corporate CDOs. At that time, Fitch noted that it would be reviewing its ratings with these two new criteria to establish consistency for existing and new ratings. The elements of the updated criteria having the greatest impact on the analysis of Harbourmaster Pro-Rata CLO 2 include increased default probability assumptions for underlying assets, as well as stressed correlation assumptions to reflect the additional risk posed by portfolio concentrations. Fitch's new cash flow criteria also apply updated default timing and interest rate scenarios. In analyzing Harbourmaster Pro-Rata CLO 2, Fitch has modified several elements of its public criteria. The most significant modification to the cash flow methodology relates to a shortening of recovery timing to 12 months from 18 months after default for rating scenarios at 'BBB' and below. Fitch also used scenario analysis to determine whether the rated notes are in line with the agency's rating definitions. This analysis more accurately reflects Fitch's view of the credit quality of the portfolio, the transaction structure and the ability of the manager. For all the rated tranches, the current credit enhancement levels are deemed sufficient to justify their ratings. Fitch has withdrawn the ratings of the Class S2 and Class S3 combination notes, as they have been exchanged for their component notes, and subsequently canceled. The notional amounts of the Class S1 and S4 refer to the outstanding rated balance. This takes into account all previous payments that have been used to reduce the note balance, in accordance with the terms and conditions of the notes. As of the review date, the portfolio contained loans from 67 obligors, with the largest exposure accounting for approximately 2% of the outstanding portfolio amount, and the three largest obligors accounting for 7% of the outstanding portfolio amount. Fitch makes downward adjustments for any names on Rating Watch Negative or Outlook Negative for default analysis in its Portfolio Credit Model. Although none of the assets are rated in the 'CCC' category on an unadjusted basis, on an adjusted basis approximately 7% of the assets are treated as 'CCC+' or below and the weighted average portfolio quality is 'B'. None of the assets in the portfolio are on RWN, while 13 obligors (corresponding to 17% of the portfolio) are on Outlook Negative. The largest single industry is business services with 13% of the portfolio volume. =========== R U S S I A =========== AGRO-SERVICE: Court Names V. Vorobey as Administrative Receiver --------------------------------------------------------------- The first creditors meeting of LLC Agro-Service (TIN 6823003537) has resolved to place the company under financial rehabilitation and appointed V. Vorobey as administrative receiver. The Arbitration Court of Tambov has sanctioned the creditors' resolution. The case is docketed under Case No. A64-2553/08-10. Creditors have to submit proofs of claim to: V. Vorobey, Administrative Receiver Sportivnaya Str. 15 Kirsanov 393360 Tambov Russia The Court is located at: The Arbitration Court of Tambov Penzenskaya Str. 67/12 392020 Tambov Russia The Debtor can be reached at: LLC Agro-Service Gusevka Gavrilovskiy Tambov Russia BRIANT LLC: Court Sets Supervision Hearing on November 11 --------------------------------------------------------- The Arbitration Court of Moscow commenced bankruptcy supervision procedure against LLC Briant (TIN 7718537130) and appointed A. Oksamitnyj as interim receiver. The case is docketed under Case No. A40-26335/08-73-63B. Creditors have to submit proofs of claim to: A. Oksamitnyj, Interim Receiver Building 2 Stromynka Str. 19 107076 Moscow Russia The Court will convene on Nov. 11, 2008, to hear the case at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Russia The Debtor can be reached at: LLC Briant Building 2 Stromynka Str. 19 107076 Moscow Russia BUILDING ASSEMBLY 12: Court Names A. Udachin to Manage Assets ------------------------------------------------------------- The first creditors meeting of CJSC Building Assembly Enterprise 12 has resolved to place the company under financial rehabilitation and appointed A. Udachin as administrative receiver. The Arbitration Court of Krasnodar has sanctioned the creditors' resolution. The case is docketed under Case No. A-32-13117/2006-1/627-B. Creditors have to submit proofs of claim to: A. Udachin, Administrative Receiver Office 307 Kolkhoznaya str. 3 350042 Krasnodar Russia The Court is located at: The Arbitration Court of Krasnodar Krasnaya Str. 6 Krasnodar Russia The Debtor can be reached at: CJSC Building Assembly Enterprise 12 Rostovskoe Shosse Str. 226 Krasnodar Russia CRYSTAL-BEL CJSC: Proofs of Claim Filing Deadline Set Sept. 5 ------------------------------------------------------------- The first creditors meeting of CJSC Crystal-Bel (TIN 3119003188) has resolved to place the company under financial rehabilitation and appointed A. Ovchinnikov as administrative receiver. The Arbitration Court of Belgorod has sanctioned the creditors' resolution. The case is docketed under Case No. A08-674/08-2B. Creditors have until Sept. 5, 2008, to submit proofs of claim to: A. Ovchinnikov, Administrative Receiver 309290 Belgorod Shebekino Rzhevskoe Shosse 11 Tel: 8 (47248) 3-06-40 The Court is located at: The Arbitration Court of Belgorod Narodnyj Avenue 135 308600 Belgorod Russia The Debtor can be reached at: CJSC Crystal-Bel Stroitelnaya Str. 19 Chernyanka 309561 Belgorod Russia EAST CJSC: Proofs of Claim Filing Deadline Set September 5 ---------------------------------------------------------- The first creditors meeting of CJSC East has resolved to place the company under financial rehabilitation and appointed A. Samokhin as administrative receiver. The Arbitration Court of Kemerovo has sanctioned the creditors' resolution. The case is docketed under Case No. A27-11550/ 20074. Creditors have until Sept. 5, 2008, to submit proofs of claim to: A. Samokhin, Administrative Receiver Rossiyskaya Str. 29-26 Prokopyevsk 653002 Kemerovo Russia The Court is located at: The Arbitration Court of Kemerovo Krasnaya Str. 8 Kemerovo Russia The Debtor can be reached at: A. Samokhin, Administrative Receiver Rossiyskaya Str. 29-26 Prokopyevsk 653002 Kemerovo Russia EUROPEAN TRUST: Moody's Assigns E+ Financial Strength Rating ------------------------------------------------------------ Moody's Investors Service has assigned the following global scale ratings to European Trust Bank: -- B3 long-term and Not Prime short-term foreign and local currency deposit ratings, and -- E+ bank financial strength rating. The outlook for all ratings is stable. At the same time, Moody's Interfax Rating Agency has assigned a Baa3.ru long-term national scale credit rating to ETB. Moscow-based Moody's Interfax is majority-owned by Moody's, a leading global rating agency. According to Moody's and Moody's Interfax, the B3/NP/E+ global scale ratings assigned to ETB reflect its global default and loss expectation, while the Baa3.ru NSR reflects the standing of the bank's credit quality relative to its domestic peers. Moody's notes that the ratings are underpinned by ETB's expertise in providing mortgage facilities under Agency for Housing Mortgage Lending standards and its regional coverage across Russia that is relatively strong for the bank's size. The ratings also reflect ETB's effectively managed MIGOM payment system that supports its recurring earning streams. On the other hand, the ratings are constrained by: -- the bank's tight liquidity profile and limited access to long-term funding; -- the relatively high dependence on certain names on both sides of the balance sheet; and -- low profitability and efficiency indicators that are not expected to strengthen in the near term due to investments into regional expansion. ETB's B3/NP local currency deposit ratings do not incorporate any expectation of support from the bank's owners. In Moody's view, although such support cannot be ruled out, its scope and timeliness are rather uncertain. Nor do the ratings incorporate any expectation of support from the Russian financial authorities as this would be unlikely given ETB's size and market position. According to Moody's, the ratings could be upgraded if the bank were to diversify its product profile but at the same time retain its currently successful niches and also achieve a more stable and longstanding funding structure. Other factors that are currently constraining the bank's ratings include its low efficiency and profitability indicators and therefore related improvements could have positive rating implications provided the bank also at the same time manages to maintain its healthy asset quality ratios. Conversely, if the bank's earnings volume were to decrease as a result of a stagnation of the bank's business development, or if its liquidity profile were to tighten further and/or if efficiency and profitability measures were to deteriorate, a downgrade of ETB's BFSR might be warranted. Headquartered in Moscow, ETB reported total IFRS assets of RUB11 billion (US$446 million) as at Dec. 31, 2007 and net income of RUB13 million (US$510,000) for that calendar year. FORT-PRESS CJSC: Proofs of Claim Filing Deadline Set September 5 ---------------------------------------------------------------- The first creditors meeting of CJSC Printing Establishment Fort- Press has resolved to place the company under financial rehabilitation and appointed V. Poroshkov as administrative receiver. The Arbitration Court of Novosibirsk has sanctioned the creditors' resolution. The case is docketed under Case No. A45-14808/07-54/60. Creditors have until Sept. 5, 2008, to submit proofs of claim to: V. Poroshkov, Administrative Receiver Post Use Box 23 630102 Novosibirsk Russia The Court is located at: The Arbitration Court of Novosibirsk Kirova Str. 3 630007 Novosibirsk Russia The Debtor can be reached at: CJSC Printing Establishment Fort-Press Kombinatskiy Per. 3a Novosibirsk Russia GAS-STROY LLC: Names R. Akhairov as Administrative Receiver ----------------------------------------------------------- The first creditors meeting of LLC Gas-Stroy has resolved to place the company under financial rehabilitation and appointed R. Akhairov as administrative receiver. The Arbitration Court of Tambov has sanctioned the creditors' resolution. The case is docketed under Case No. A64-4414/07-21. Creditors have to submit proofs of claim to: R. Akhairov, Administrative Receiver Office 210 Kalinina Str. 1086 440034 Penza Russia The Court is located at: The Arbitration Court of Tambov Penzenskaya Str. 67/12 392020 Tambov Russia The Debtor can be reached at: LLC Gas-Stroy Turmasovo Michurinsk Tambov Russia IRKUT CORP: Moody's Lowers Corporate Family Rating to Ba2 --------------------------------------------------------- Moody's Investors Service has downgraded to Ba2 from Ba1 the corporate family rating of Irkut Corporation reflecting the expectation that the currently weak financial performance will not materially improve over the next years. Concurrently, Moody's Interfax Rating Agency downgraded the national scale rating of Irkut Corporation to Aa2.ru. from Aa1.ru. The outlook for the ratings is stable. According to Moody's and Moody's Interfax, the Ba2 global scale rating reflects the company's global default and loss expectation, while the Aa2.ru NSR reflects the standing of the company's credit quality relative to its domestic peers. The Baseline credit assessment was downgraded to 15 from 14 under the GRI methodology (on a scale of 1-21, where 1 represents lowest credit risk) which primarily reflects -- adverse currency movements of the strengthening rouble against the US$ and the domestic cost inflation pressuring Irkut's profitability since its aircraft deliveries are billed in US$ and contractual cost recovery is limited, -- slow progress in revenue diversification from defense programs to civil aircraft and components; -- the expectation that weak cash flow coverage of debt will not strengthen in view of operating challenges. The Baseline Credit Assessment of 15 primarily reflects: (1) the strong market position of Irkut's SU-30MK multi-role jet fighter among the Indian, Algerian and Malaysian air forces and increasing exports to other markets; (2) the company's ability to deliver products which can compete internationally; (3) positive trends of diversifying the product range into non- defense related areas, for example the BE-200 multipurpose amphibious aircraft, components production for EADS and participation in a conversion program; and (4) a solid backlog of signed orders providing for visibility for medium-term revenues. At the same time, the rating remains constrained by a) the weak position with its most significant domestic client, the Russian military, where it is exposed to political uncertainties which may affect business prospects and undermine future revenue potential; b) concentration on one foreign customer accounting for a large part of the order book; c) substantial global competition; d) one main aircraft accounting for a core part of the revenue and approaching the maturity of its lifecycle, requiring significant research and development expenditure to replace the model for which customer-funded development contracts have not yet been obtained; e) the competitive disadvantage of a rouble-based cost position while its deliveries are billed in US$; and f) a challenging operating environment characterised by significant political, legal, and fiscal risks. By virtue of its current ownership structure (80.9% owned by UAC and 11.89% by Sukhoi Company), Irkut is considered a government- related issuer. As such, Irkut's Ba2 corporate family rating incorporates the following four inputs: * baseline Credit Assessment of 15 (on a scale of 1 to 21, where 1 represents the lowest credit risk); * the Baa1, positive outlook local currency rating of the support provider, the Government of Russia; * a medium default dependence; and * the medium likelihood of systemic support. Medium dependence reflects foremost the expectation of Irkut's rising share of Russia's aircraft procurements creating an increasing dependence on state revenues. Medium support reflects Irkut's strong export performance in high technology applications, the social and political importance of the company to the state, anticipated increases in government weapons procurements for state defense, and increases in state funding to finance military modernization. Moody's last rating action on March 7, 2007 was to upgrade the corporate family rating of Irkut Corporation to Ba1 from B1 following a change in ownership Irkut Corporation is a leading military aircraft producer and one of the largest companies in the Russian aviation industry, with defense-related revenues in 2007 of over US$896 million and total company revenues of US$1,022 million and reported EBITDA of US$136.6 million. The order book in mid-2008 is estimated at US$4.6 billion. In the aftermath of the reorganization of the Russian aviation industry, the Russian government gained control over 38.22% of Irkut through majority state-owned holding company United Aircraft Corporation. Subsequently, UAC launched a mandatory tender offer for the remaining shares of Irkut which was finalized in June 2008. The government now directly and indirectly controls 92.79% of the company with. Free float is 7.21%. KURSK-AGRO-SEL-KHOZ-SNAB: Names Y. Lyashko to Manage Assets ----------------------------------------------------------- The first creditors meeting of LLC Agro-Holding Kursk-Agro-Sel- Khoz-Snab (TIN 4632037612) has resolved to place the company under financial rehabilitation and appointed Y. Lyashko as administrative receiver. The Arbitration Court of Kursk has sanctioned the creditors' resolution. The case is docketed under Case No. A35-2405/07g. Creditors have to submit proofs of claim to: Y. Lyashko, Administrative Receiver 1st Maya Str. 26 Pavlovsk Voronezh Russia Tel: 8 (47362) 24701 The Court is located at: The Arbitration Court of Kursk K. Marksa Str. 25 305004 Kursk Russia The Debtor can be reached at: LLC Agro-Holding Kursk-Agro-Sel-Khoz-Snab 1st Parkovyj Per. 5-1 305018 Kursk Russia LES-MARKET LLC: Court Names N. Mukha as Administrative Receiver --------------------------------------------------------------- The first creditors meeting of LLC Les-Market has resolved to place the company under financial rehabilitation and appointed N. Mukha as administrative receiver. The Arbitration Court of Arkhangelsk has sanctioned the creditors' resolution. The case is docketed under Case No. A05-2805/2008. Creditors have to submit proofs of claim to: N. Mukha, Administrative Receiver Room 19 Industrialnaya Str. 4-a Nyandoma 164200 Arkhangelsk Russia The Court is located at: The Arbitration Court of Arkhangelsk Loginova Str. 17 163069 Arkhangelsk Russia The Debtor can be reached at: LLC Les-Market Industrialnaya Str. 4-a Nyandoma 164200 Arkhangelsk Russia LIPETSK REGION: Fitch Puts 'BB-' Foreign & Local Currency IDRs -------------------------------------------------------------- Fitch Ratings has assigned the Region of Lipetsk's RUB1.5 billion domestic bond with a five-year maturity a National Long- term 'AA-(rus)' rating. The region has Long-term foreign and local currency ratings 'BB-' with Positive Outlook and a National Long-term rating 'AA-(rus)' with Stable Outlook. The bond has a fixed-rate coupon and the principal will be amortized by 25% of the nominal amount in June 2010, June 2011, June 2012 and June 2013. The proceeds from the new bond will be used for both capital expenditure and refinancing existing debt. The ratings reflect the region's strong local economy, with significant foreign capital participation, moderate debt and low interest expense. However, they also take into account its high tax concentration and growing social expenditure pressures. The regional economy is heavily weighted towards ferrous metallurgy, and the Novolipetsk steel smelting plant is the single-largest contributor to the regional budget. The dominance of this single taxpayer leaves the budget vulnerable to market fluctuations that NLMK faces. However, the region's dependence on tax revenue from NMLK is gradually declining; the company's contribution to the region's total budget decreased to less than 50% in 2007 from a peak of 62% in 2004. In addition, the administration has successfully improved the region's investment climate, which has resulted in an increase in direct foreign investment and an improved local economy. A special economic zone, supported by the national government, is located in the region. The region is also home to Italy's "Indesit International" home appliance factory and the company's subsequent logistics center. Following a low 1.8% operating margin in 2005, the region's budget performance improved to an average operating balance of 10% of operating revenue. The region's debt burden remains manageable, with total debt reaching 8.8% of current revenue at end-2007 and debt servicing remained below 2% of current revenue during the last two years. The Lipetsk Region is located in the center of the European part of Russia and accounted for 0.8% of Russia's GDP and 0.8% of the country's total population in 2006. NALCHIKSKIY STOCKINET: Court Sets Supervision Hearing on Sept. 5 ---------------------------------------------------------------- The Arbitration Court of Ulyanovsk commenced bankruptcy supervision procedure against LLC Nalchikskiy Stockinet and appointed E. Shirova as interim receiver. The case is docketed under Case No. A20-596/2008. Creditors have to submit proofs of claim to: E. Shirova, Interim Receiver Tsiolkovskogo Str. 7 Nalchik Russia The Court will convene on Sept. 5, 2008, to hear the case at: The Arbitration Court of Ulyanovsk Zheleznodorozhnaya Str. 14 432063 Ulyanovsk Russia The Debtor can be reached at: LLC Nalchikskiy Stockinet Malbakhova Str. 9 Nalchik 360000 Kabardino Balkariya Russia NOVOROSSIYSKAYA ROAD: Court Sets Supervision Hearing on Sept. 29 ---------------------------------------------------------------- The Arbitration Court of Krasnodar commenced bankruptcy supervision procedure against OJSC Novorossiyskaya Road Train 1490 (OGRN 1042309103000) and appointed T. Semenova as interim receiver. The case is docketed under Case No. A32-4622/ 2008-14/144-B. Creditors have to submit proofs of claim to: T. Semenova, Interim Receiver Post User Box 4227 GOS-13 680013 Khabarovsk Russia The Court will convene on Sept. 29, 2008, to hear the case at: The Arbitration Court of Krasnodar Krasnaya Str. 6 Krasnodar Russia The Debtor can be reached at: OJSC Novorossiyskaya Road Train 1490 Kunikova Str. 47 353900 Novorossiysk Russia POLYANA LLC: Court Starts Bankruptcy Supervision Procedure ---------------------------------------------------------- The Arbitration Court of Smolensk commenced bankruptcy supervision procedure against LLC Polyana and appointed A. Morozov as interim receiver. The case is docketed under Case No. A62-1351/2008. Creditors have to submit proofs of claim to: A. Morozov, Interim Receiver 394038 Voronezh Post User Box 13 Russia The Court is located at: The Arbitration Court of Smolensk Pr. Gagarina 46 214001 Smolensk Russia The Debtor can be reached at: LLC Polyana Pervomayskaya Str. 1-28 Safonov Smolensk Russia STREAM CJSC: Court Names I. Kolsanov as Administrative Receiver --------------------------------------------------------------- The first creditors meeting of CJSC Stream (TIN 2127303610) has resolved to place the company under financial rehabilitation and appointed I. Kolsanov as administrative receiver. The Arbitration Court of Chuvashiya has sanctioned the creditors' resolution. The case is docketed under Case No. A79-1725/2008. Creditors have to submit proofs of claim to: I. Kolsanov, Administrative Receiver Post User Box 28 Guzovskogo Str. 14 Cheboksary 428000 Chuvashiya Russia The Debtor can be reached at: CJSC Stream Akademika Koroleva Str. 1/1 Cheboksary Chuvashiya Russia USMAN TOBACCO: Court Sets Supervision Hearing on November 20 ------------------------------------------------------------ The Arbitration Court of Lipetsk commenced bankruptcy supervision procedure against OJSC Usman Tobacco (TIN 4816000926) and appointed G. Nosikov as interim receiver. The case is docketed under Case No. A36 1401/2008. Creditors have to submit proofs of claim to: G. Nosikov, Interim Receiver Office 408 Sovetskaya Str. 64 398001 Lipetsk Russia The Court will convene at 9:20 a.m. on Nov. 20, 2008, to hear the case at: The Arbitration Court of Lipetsk Skorokhodova Str. 2 398019 Lipetsk Russia The Debtor can be reached at: OJSC Usman Tobacco Lva Tolstogo Str. 2 399370 Usman Russia ===================================== S E R B I A & M O N T E N E G R O ===================================== * S&P Puts Montenegro Banking Industry on BICRA Group 9 Category ---------------------------------------------------------------- Standard & Poor's Ratings Services said that it categorized Montenegro's banking industry in Group 9 in its Banking Industry Country Risk Assessment (BICRA). This category reflects the Republic of Montenegro's (BB+/Negative/B) high economic risk, very high credit risks exacerbated by the dramatic loan growth of the past three years, and the strained financial profile of Montenegrin banks. The ranking also reflects the stable political climate and benefits derived from the dominance of few large Central and Eastern European banks. Other countries in Group 9 include Nigeria, Costa Rica, Guatemala, Lebanon, and Vietnam. Montenegro ranks ahead of Ukraine (Group 10), but behind Kazakhstan (Group 8), and is among the most risky in Central and Eastern European banks. Montenegro's BICRA ranking is underpinned by the country's stable political environment, converging wealth levels, and strong economic growth, especially in a Balkan context. Since declaring independence in June 2006, Montenegro has been politically stable and experienced strong economic growth. The ruling coalition led by the Democratic Party of Socialists remains focused on economic reforms and EU accession. GDP growth is expected to remain solid at 6% in 2008 and is being driven by very strong foreign direct investment and domestic demand. In 2007, growing macroeconomic imbalances were characterized by the current-account deficit reaching 40% of GDP, high inflation of about 12%, and wage growth beyond productivity levels. Positively, the country's adoption of the euro as legal tender mitigates the risk of a classic balance of payment crisis. This also implies, however, that Montenegro cannot use monetary or exchange rate policy to offset external shocks. High customer demand and aggressive lending by the domestic banks have led to very high credit risks, accentuated by exceptionally rapid credit growth and very high indebtedness of a population country with such low wealth levels. Domestic credit to nonfinancial public enterprises grew by 165% in 2007, and accounted for almost 90% of GDP by year end. The financial profile of the banking sector has suffered due to aggressive lending, which has pushed down margins, profitability, and capitalization. The banking sector's creditworthiness is supported by the dominance of few large Central and Eastern European banks. At year-end 2007, four of the 11 commercial banks were owned by large banking groups and accounted for 68% of total banking system assets. In terms of government support to the banking sector, S&P classifies the Montenegrin government as "support uncertain" ("External Support Key In Rating Private Sector Banks Worldwide," published on Feb. 27, 2007, on RatingsDirect). S&P's key analytical measure that reflects relative economic risks is an estimate of the incidence of gross problematic assets (GPAs) in a financial system in a reasonable worst-case scenario of economic recession, expressed as a percentage of domestic credit to the private sector and nonfinancial public enterprises. The assumptions behind these scenarios are severe, and therefore unlikely -- although not impossible. The GPA for the Montenegrin financial system is in the 35%-50% range. The BICRA score reflects the strengths and weaknesses of a country's banking system relative to those in other countries. BICRAs classify countries into one of 10 groups ranging from the strongest banking system (Group 1) to the weakest (Group 10) from the perspective of country risk. S&P analyzes the credit standing of financial institutions in the context of broad economic, regulatory, legal, and competitive environments in which they operate. This sectoral analysis is integral to estimating the probability of a banking crisis, the potential severity of fallout in the event of a crisis, and the fundamental strength and creditworthiness of individual financial institutions. ========= S P A I N ========= * Fitch Sees TDA Worse-Than-Expected Collateral Performance ----------------------------------------------------------- Fitch Ratings says in a report that TDA27 and TDA28 - securitizations of residential mortgages loans- are seeing a worse-than-expected collateral performance, with arrears higher than the levels anticipated at closing. Additionally, the higher-than-expected percentage of defaults is driving the reserve fund draws of TDA 27. Although TDA 28 has not experienced any defaults, its arrears relative to TDA 27 at the same level of seasoning are higher, suggesting that the transaction is likely to follow a similar, or see a worse, pattern. With a strong pipeline of loans in arrears, Fitch expects TDA 27 will see further reserve fund draws in the coming quarters. The reserve fund of TDA 28 remains intact, but the high level of loans that are more than six months in arrears means there is a high probability that the reserve fund will be drawn in the next two quarters. "The key factor for the performance of the transactions will be the amount of recoveries and the pace of defaults and arrears," said Andy Brewer, Senior Director in Fitch's Performance Analytics team. "The transactions are likely to have draws on their reserve funds in the coming quarters unless their performance improves." TDA 27 and TDA 28 have an interest-only note that expires in December 2009 and July 2010, respectively. This reduces the amount of revenue flowing through the waterfall to replenish the reserve fund. Once these notes expire, the excess spread of both transactions will increase, enhancing first-loss protection. ===================== S W I T Z E R L A N D ===================== AMCI JSC: August 22 Set as Deadline to File Proofs of Claim ----------------------------------------------------------- Creditors owed money by JSC AMCI (Switzerland) are requested to file their proofs of claim by Aug. 22, 2008, to: Iso Lenzlinger Alpenstrasse 12 Mail Box 4662 6304 Zug Switzerland The company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on July 3, 2008. EMFG LLC: Creditors Must File Proofs of Claim by August 22 ---------------------------------------------------------- Creditors owed money by LLC EMFG are requested to file their proofs of claim by Aug. 23, 2008, to: JSC Treuhand Fassler & Partner Appenzell Weissbadstrasse 14 9050 Appenzell Switzerland The company is currently undergoing liquidation in Schwende. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on July 10, 2008. GENERAL MOTORS: Asks Ads Agencies for a 20% Fees Discount --------------------------------------------------------- General Motors Corp., in its latest attempt to save money, has asked advertising agencies for a 20% discount this year and the next, The Wall Street Journal reports. The Journal, citing a spokeswoman, relates that the car maker has asked its agency partners to work with them to eliminate low-value work and find creative solutions to go to market more efficiently. WSJ, citing people familiar with the matter, says the cuts could result to more than US$20 million in total savings for General Motors, but will likely mean layoffs for the agencies involved. WSJ indicates that GM also has pulled out of September's Emmy broadcast on Walt Disney's ABC; it has advertised on the star- studded program for about a decade. Auto makers account for more than 12% of all ad spending in the country -- more than any other single industry, WSJ notes. The owner of Cadillac and Chevrolet, WSJ indicates, works with dozens of agencies around the country, including Publicis Groupe's Leo Burnett and Interpublic Group's McCann Erickson and Campbell-Ewald. Michael Nathanson, a senior analyst at Bernstein Research, in a report to investors this week predicts U.S. auto advertising will fall to US$15 billion in 2008 from US$18 billion last year -- a noticeable drop from US$24 billion in 2004, WSJ relates. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. At March 31, 2008, GM's balance sheet showed total assets of US$145,741,000,000 and total debts of US$186,784,000,000, resulting in a stockholders' deficit of US$41,043,000,000. Deficit, at Dec. 31, 2007, and March 31, 2007, was US$37,094,000,000 and US$4,558,000,000, respectively. * * * As reported in the Troubled Company Reporter on June 24, 2008, DBRS has placed the ratings of General Motors Corporation and General Motors of Canada Limited Under Review with Negative Implications. The rating action reflects the structural deterioration of the company's operations in North America brought on by high oil prices and a slowing U.S. economy. Standard & Poor's Ratings Services is placing its corporate credit ratings on the three U.S. automakers, General Motors Corp., Ford Motor Co., and Chrysler LLC, on CreditWatch with negative implications, citing the need to evaluate the financial damage being inflicted by deteriorating U.S. industry conditions -- largely as a result of high gasoline prices. Included in the CreditWatch placement are the finance units Ford Motor Credit Co. and DaimlerChrysler Financial Services Americas LLC, as well as GM's 49%-owned finance affiliate GMAC LLC. As related in the Troubled Company Reporter on June 5, 2008, Standard & Poor's Ratings Services said that its ratings on General Motors Corp. (B/Negative/B-3) are not immediately affected by the company's announcement that it will cease production at four North American truck plants over the next two years. These closures are in response to the re-energized shift in consumer demand away from light trucks. GM previously said only one shift was being eliminated at each of the four truck plants. Production is being increased at plants producing small and midsize cars, but the cash contribution margin from these smaller vehicles is far less than that of light trucks. GENERAL MOTORS: Provides US$300MM to Help Delphi Exit Bankruptcy ---------------------------------------------------------------- General Motors Corp. will grant Delphi Corp. an additional US$300 million on top of the US$650 million already promised to help its former parts unit exit bankruptcy protection, The Wall Street Journal reports. WSJ, citing court papers, says that GM may increase its loans to its top supplier to US$950 million through the end of 2008 to reimburse Delphi for labor-related costs and other liabilities. WSJ relates that GM had agreed to assume these liabilities under a settlement entered into during the Chapter 11 case. The US$950 million, WSJ indicates, represents a portion of the amount GM would have paid Delphi had the supplier emerged from Chapter 11. GM will receive a top priority claim under bankruptcy law for the advances, WSJ notes. The agreement comes amid GM reporting a US$15.5 billion loss for the second quarter, US$2.8 billion of which was related to adjusting the accounting for its relationship with Delphi. GM agreed to increase the loan in July, at about the time the auto maker was patching together its own plan to boost liquidity by US$15 billion through 2009, The Journal states according to GM spokeswoman Julie Gibson. About Delphi Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for Chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represent the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. At March 31, 2008, GM's balance sheet showed total assets of US$145,741,000,000 and total debts of US$186,784,000,000, resulting in a stockholders' deficit of US$41,043,000,000. Deficit, at Dec. 31, 2007, and March 31, 2007, was US$37,094,000,000 and US$4,558,000,000, respectively. * * * As reported in the Troubled Company Reporter on June 24, 2008, DBRS has placed the ratings of General Motors Corporation and General Motors of Canada Limited Under Review with Negative Implications. The rating action reflects the structural deterioration of the company's operations in North America brought on by high oil prices and a slowing U.S. economy. Standard & Poor's Ratings Services is placing its corporate credit ratings on the three U.S. automakers, General Motors Corp., Ford Motor Co., and Chrysler LLC, on CreditWatch with negative implications, citing the need to evaluate the financial damage being inflicted by deteriorating U.S. industry conditions -- largely as a result of high gasoline prices. Included in the CreditWatch placement are the finance units Ford Motor Credit Co. and DaimlerChrysler Financial Services Americas LLC, as well as GM's 49%-owned finance affiliate GMAC LLC. As related in the Troubled Company Reporter on June 5, 2008, Standard & Poor's Ratings Services said that its ratings on General Motors Corp. (B/Negative/B-3) are not immediately affected by the company's announcement that it will cease production at four North American truck plants over the next two years. These closures are in response to the re-energized shift in consumer demand away from light trucks. GM previously said only one shift was being eliminated at each of the four truck plants. Production is being increased at plants producing small and midsize cars, but the cash contribution margin from these smaller vehicles is far less than that of light trucks. MARTI JSC: Deadline to File Proofs of Claim Set August 22 --------------------------------------------------------- Creditors owed money by JSC Marti are requested to file their proofs of claim by Aug. 22, 2008, to: Josef Marti Winkel 6022 Grosswangen Switzerland The company is currently undergoing liquidation in Grosswangen. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on June 23, 2008. MORIBIE VERWALTUNG: Proofs of Claim Filing Deadline is Aug. 23 -------------------------------------------------------------- Creditors owed money by JSC Moribie Verwaltung are requested to file their proofs of claim by Aug. 23, 2008, to: Consulting Company Jurg Liebermann Sternenstr. 14 8002 Zurich Switzerland The company is currently undergoing liquidation in Dietlikon. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on June 27, 2008. RHY-HOLZ JSC: Creditors' Proofs of Claim Due by August 23 --------------------------------------------------------- Creditors owed money by JSC Rhy-Holz are requested to file their proofs of claim by Aug. 23, 2008, to: Belchenstrasse 6 4310 Rheinfelden Switzerland The company is currently undergoing liquidation in Rheinfelden. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on July 7, 2008. ============= U K R A I N E ============= CREDIT DNEPR: Moody's Affirms E+ Bank Financial Strength Rating --------------------------------------------------------------- Moody's Investors Service has changed the outlook on Credit Dnepr Bank's B3 long-term local and foreign currency deposit ratings to positive from stable. Moody's has affirmed the bank's Not Prime short-term deposit rating and E+ bank financial strength rating. The outlook on the BFSR remains stable. At the same time, Moody's has upgraded the bank's long-term national scale credit rating to Baa1.ua from Baa3.ua. According to Moody's, the deposit rating outlook change and the NSR upgrade reflect the following: -- Credit Dnepr Bank's demonstrated ability to diversify away from the related party businesses, establishing a visible position in the corporate banking sector in its home region of Dnepropetrovsk; -- its good financial fundamentals; -- its gradually improving risk positioning, notably a more diversified loan book in terms of single-party exposures; -- its growing geographical diversification; -- continued diversification into retail banking; and -- its improved core deposit funding base. At the same time, the ratings remain constrained by the bank's still limited country-wide franchise, evolving risk management and corporate governance issues. Moody's notes that any possible upgrade of Credit Dnepr Bank's B3 long-term deposit rating will be contingent on its ability to further consolidate its market shares and strengthen its franchise without increasing the level of related-party transactions and maintain healthy financial fundamentals commensurate with those of higher-rated banks. On December 11, 2006 -- Moody's has assigned the following ratings to Credit Dnepr Bank : * B3 long-term and Not-Prime short-term foreign and local currency deposit ratings, * E+ financial strength rating and * Baa3.ua long-term National Scale Rating. The outlooks on all long term global scale ratings were stable, while the bank's NSR carried no specific outlook. Headquartered in Dnepropetrovsk (Ukraine), Credit Dnepr Bank reported total IFRS assets of US$468 million and net income of US$14.8 million as at year-end 2007. NAFTOGAZ NJSC: Moody's Lowers FC Corporate Family Rating to B1 -------------------------------------------------------------- Moody's Investors Service downgraded the Ba3 foreign currency corporate family rating and Probability of Default rating of NJSC Naftogaz of Ukraine to B1 and concurrently assigned a Developing outlook. This rating action concludes Moody's review for downgrade of Naftogaz's ratings. In line with the CFR, Moody's also changed the rating of US$500 million senior unsecured Loan Participation notes of Naftogaz from Ba3 to B1, the outlook is developing. Moody's also concluded a review of the sovereign ratings of Ukraine with the affirmation of the Ukraine's B1 foreign and local currency debt ratings in conjunction with the assignment of a positive outlook which did not impact Naftogaz's ratings. Moody's rates Naftogaz in accordance with its rating methodology for Government Related Issuers, thus the current ratings reflect a combination of the following inputs: -- Baseline credit assessment of 17 (on scale of 1-21, where 1 represents lowest credit risk, corresponding to a Caa1 rating); -- B1 local currency rating of the Ukrainian government; -- Medium dependence (changed from Low in conjunction with this rating action); and -- High support. The downgrade of the CFR of Naftogaz follows Moody's reassessment of the Dependence factor that plays a critical role in Naftogaz's ratings. Moody's has concluded that the Dependence factor (which reflects the degree to which the company's and the state's credit risk profiles share a common risk factor) should be changed to Medium from Low, primarily in view of Moody's assessment that Ukraine's moratorium risk is considered high (estimated by Moody's at 60%). The moratorium risk indicates the likelihood of the government to call upon the foreign exchange resources of domestic companies in the case of a government default. In addition, the shift of the Dependence factor reflects Naftogaz's dependency upon the state and the possibility of interference of the latter in the company's operations as well as the company's susceptibility to political uncertainty. It also takes into account geopolitical factors such as the changing relationship between Ukraine and Russia and the ongoing intergovernmental gas price negotiations which are used as a political tool by both parties. The outlook reflects the general uncertainties surrounding the longer term future of the company, in view of the on-going political instability in Ukraine, the status of gas price negotiations with Gazprom and the absence of visibility into Naftogaz's operational and financial performance beyond 2008. The absence of information about the company that would allow Moody's to make a definitive assessment relating to Naftogaz's projected operational and financial performance, as well as uncertainty relating to Naftogaz's future and its positioning in the context of the country's future energy policies, create additional uncertainty over how the company's BCA is likely to evolve. Timing of the resolution of the issues stated above is uncertain. The rating and outlook will ultimately be dependent upon further developments in the Ukraine (including those related to the upcoming elections in November 2009) and at the company's level. Moody's will continue to monitor the company's performance to the extent possible, its compliance with furnishing of information covenants under the bond facility (this has been breached again, as Naftogaz failed to release 2007 financial results by end July 2008, as stipulated in the Bond documentation), and its working capital management including Naftogaz's ability to attract additional financing for this purpose. Naftogaz, headquartered in Kiev, Ukraine, is an integrated hydrocarbon company with operations in oil and gas exploration and production, domestic and international transportation, storage and supply. In 2006 the company generated revenue of approximately US$5.52 billion and operating profit of approximately US$200 million, while net profit was negative at approximately US$440 million. * Moody's Holds Positive Outlook on Ukraine's Ratings ----------------------------------------------------- Moody's Investors Service has confirmed several key credit ratings of Ukraine, concluding a review for possible upgrade that began in March, and has maintained a positive outlook on these same ratings. The decision not to upgrade the ratings that were under review but rather to keep a positive outlook takes into account an upcoming period of political and economic uncertainty, set against the much-improved sustainability of the government's debt metrics and relatively consistent fiscal policy. Moody's said the positive outlook applies to the B1 foreign- and local-currency government bond ratings, the country's Ba3 foreign-currency ceilings for bonds and the B2 country ceiling for foreign currency bank deposits. The A3 (stable outlook) local currency country ceiling and Baa1 (stable outlook) local currency bank deposit ceiling have been affirmed. Also affirmed are the Not Prime short-term ratings for country ceilings for foreign currency bonds and bank deposits. "Moody's expects there will be difficult days ahead for Ukraine given its heightened external financing needs in the context of global market volatility," said Moody's Vice President Jonathan Schiffer. "Still, a positive outlook was judged to be appropriate because Ukraine has accumulated a large foreign reserve cushion after many years of strong economic growth and earlier current account surpluses." Mr. Schiffer said this cushion would likely allow Ukraine to navigate a period of large current account deficits without serious financing stress, but the related uncertainty is sufficiently large that an upgrade did not seem to be warranted at this time. Moody's does expect, however, that foreign direct investment (excluding any privatization receipts) will cover around 80% of the current account deficit this year and half of next year's, although it will not finance the entire shortfall, as in previous years. Other positive factors noted by Mr. Schiffer were the healthy growth in government revenues, which has contributed to a significant improvement in payments capacity indicators since 1999, and a more balanced distribution of economic growth between domestic and external sources. "Tax -- including customs -- administration has improved and, combined with appropriate policy measures, provides the potential for additional revenue gains over the medium term," said Mr. Schiffer. "The government's balance sheet has been strong for quite some time, and the approach to fiscal policy by various center-right and center-left coalition governments suggests a high degree of consensus among Ukraine's political elites." In spite of substantial rises in minimum wages and social transfer payments, Mr. Schiffer projected that Ukraine will continue to register quite modest budget deficits, with the country's accession to the WTO and restructuring of the industrial base likely to help offset other growth challenges coming from higher energy costs. Contingent liabilities associated with the state gas distribution corporation, Naftogaz, and with compensation to the populace for so-called "lost savings" from the hyperinflation that accompanied the fall of the Soviet Union are manageable. "The very high rate of inflation, caused by strong domestic demand coupled with rising food and energy prices and lax macroeconomic policies," said Mr. Schiffer, "will likely abate gradually over the next two to three years, as the domestic harvest improves and fiscal policy stays relatively tight." Mr. Schiffer said that Ukrainian politics remains fiercely contested between the three major political parties, and suggested that the relationship between parliamentary power and presidential prerogatives seems to require constitutional clarification. "Nevertheless, there is little perceived threat to the parliamentary democratic regime," said Mr. Schiffer. "A change of government or the potential election of a new president in autumn 2009 is not seen as a harbinger of wholesale shifts in political-economic direction or challenges to macroeconomic stability. The populace has adjusted their behavior accordingly, lessening the risk of financial crises." Mr. Schiffer suggested that there are two key policy variables that Moody's will be monitoring. The first is the ability of the National Bank of Ukraine to adjust monetary policy to cool an overheating economy in general and, in particular, to adopt a more appropriate and flexible exchange rate regime to deal with the myriad economic pressures associated with Ukraine's further development. The second relates to the government's fiscal policy reaction to the slowdown in growth and the significant widening of the current account deficit as elections approach. =========================== U N I T E D K I N G D O M =========================== AIRE VALLEY: S&P Gives BB Rating on Class D GBP210 Million Notes ---------------------------------------------------------------- Standard & Poor's Ratings Services said has assigned its credit ratings to the GBP1,650 million and EUR1,572 million mortgage- backed floating-rate notes issued by Aire Valley Mortgages 2008- 1 PLC. This is the sixth listed issuance from Bradford & Bingley PLC's mortgage trust, and is backed by a pool of first-ranking mortgages secured over properties in England, Northern Ireland, Scotland, and Wales. This is also Bradford & Bingley's eighth public securitization. The issuer lent the note issuance proceeds to Aire Valley Funding 1 Ltd., which used them to increase its share in the mortgage trust. Funding 1 uses the cash flows from its share of the trust to pay its obligations under the intercompany loans to the issuer. The issuer then pays the interest and principal on the notes. The issued notes are pass-through notes only. Interest on the notes is payable quarterly in arrears on Jan. 20, April 20, July 20, and Oct. 20 each year. The originator in this transaction is Mortgage Express. Mortgage Express is a wholly-owned subsidiary of Bradford & Bingley Investments, which is in turn a wholly-owned subsidiary of Bradford & Bingley. Aire Valley Mortgages 2008-1 PLC: -- GBP1,650 Million And EUR1,572 Million Mortgage-Backed Floating-Rate Notes Ratings List: Class Rating Amount (Mil. EUR) ----- ------ ----------------- Series 1 class A1 AAA GBP625 Series 1 class A2 AAA EUR786 Series 2 class A1 AAA GBP625 Series 2 class A2 AAA EUR786 C BBB GBP190 D BB GBP210 ALPHABETA OPERATIONS: Taps Tenon Recovery to Administer Assets -------------------------------------------------------------- Jeremy Woodside and Thomas Dixon of Tenon Recovery were appointed joint administrators of Aphabeta Operations LLP (formerly Chartbridge Law LLP) (Company Number OC319577) on July 28, 2008. Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. The company can be reached at: Aphabeta Operations LLP 2 Greengate Street Oldham Greater Manchester OL4 1FN England BAR GROUP: Seeks Protection from its Creditors ---------------------------------------------- The Bar Group has applied for protection from its creditors through Company Voluntary Agreement. The CVA allows the company to continue its operations while shielding it from creditors. The company has appointed insolvency practitioners Gibson Hewitt to deal with its creditors. The Bar Group owns the Bok Bar chain and the Wishing Well Pub Group. BLUCAT LTD: Brings in Liquidators from Vantis Business Recovery --------------------------------------------------------------- Mark Newman and Vincent John Green of Vantis Business Recovery Services were appointed joint liquidators of Blucat Ltd. on July 30, 2008, for the creditors' voluntary winding-up proceeding. The company can be reached at: Blucat Ltd. c/o Vantis Business Recovery Services Judd House 16 East Street Tonbridge Kent TN9 1HG England CHESAPEAKE CORP: Moody's Junks Corporate Family Ratings to Caa2 --------------------------------------------------------------- Moody's Investors Service downgraded Chesapeake Corporation's Corporate Family Rating to Caa2 from B2 and its Probability of Default Rating to Caa2 from B3. Concurrently, Moody's downgraded the company's senior unsecured revenue bonds to Caa3 from B3 and senior subordinated notes to Caa3 from Caa1. All credit ratings remain on review for possible downgrade. The downgrade in CFR and PDR to Caa2 was prompted by the company's announcement on Aug. 1, 2008, that it is developing a comprehensive refinancing plan to address the upcoming maturity of its bank credit facility and its general liquidity needs. The proposed refinancing plan is expected to include: (1) new senior secured credit facilities to be used to fully repay the company's existing senior secured credit facility (unrated by Moody's), and (2) an offer to exchange the company's outstanding senior subordinated notes for new debt and equity securities. Depending on the final terms of the exchange, it may be considered a distressed exchange by Moody's. Moody's definition of default includes distressed exchanges and the downgrade in the ratings reflects the heightened probability of such a default in the near term. Also considered in the downgrade was a shortfall in results in the first half of the year as compared to our expectations. Accordingly, Moody's expectations for full year 2008 operating results have been further lowered and suggest a very weak capital structure and credit metrics for a company of Chesapeake's scale. Chesapeake continues to face refinancing pressures, an adverse business environment partly resulting from macroeconomic factors, and record high freight and energy costs. The review for possible downgrade will continue to focus on Chesapeake's liquidity profile and business fundamentals, in addition to a review of the terms of the proposed refinancing plan. Moody's downgraded these ratings of Chesapeake: -- US$18.75 million 6.375% senior unsecured revenue bonds due 2019, to Caa3 / LGD4 (68%) from B3 / LGD3 (48%) -- US$31.25 million 6.25% senior unsecured revenue bonds due 2019, to Caa3 / LGD4 (68%) from B3 / LGD3 (48%) -- 67.1 million GBP 10.375% senior subordinated notes due 2011, to Caa3 / LGD5 (86%) from Caa1 / LGD5 (72%) -- 100 million EUR 7% senior subordinated eurobonds due 2014, to Caa3 / LGD5 (86%) from Caa1 / LGD5 (72%) -- Corporate Family Rating, to Caa2 from B2 -- Probability of Default Rating, to Caa2 from B3 Headquartered in Richmond, Virginia, Chesapeake Corporation is a leading international supplier of specialty paperboard and plastic packaging. Revenues for the twelve month period ended June 29, 2008 were US$1.04 billion. CHRYSLER AUTOMOTIVE: Moody's Junks Corporate Family Rating ---------------------------------------------------------- Moody's Investors Service lowered the ratings of Chrysler Automotive LLC -- Corporate Family Rating to Caa1 from B3, Probability of Default to Caa1 from B3, first lien term loan to B2 from B1, and second lien term loan to Caa2 from Caa1. The ratings remain on review for further possible downgrade. In a related action Moody's also lowered the ratings of DaimlerChrysler Financial Services Americas LLC -- Corporate Family Rating to B2 from B1, first lien bank loan to B2 from B1, and second lien bank loan to B3 from B2. These ratings also remain under review for further possible downgrade. The downgrade of the Chrysler ratings reflects the considerable competitive and financial pressure the company faces as a result of the shift in US consumer demand away from trucks and SUVs, as well as the decline in overall automotive demand. While these market pressures will stress the performance of all three domestic auto manufacturers, Chrysler will be particularly challenged by its relatively high dependence on trucks and SUVs, and by a small-car portfolio that is much less robust than that of both its domestic and Asian competitors. Moreover, the company has not announced any small car offerings as part of it new product pipeline through 2009. As a result, Chrysler's operating cash flow will likely remain negative through the intermediate term. In addition, Bruce Clark, Senior Vice President with Moody's, said, "If Chrysler's prospects for establishing an adequately robust revenue and product profile remain limited, the long-term viability of the company's business model could be undermined despite the success of its cost cutting initiatives and the intermediate-term adequacy of its liquidity profile." Despite a relatively aggressive and successful cost cutting program, and a liquidity position that can easily cover all cash requirements through the next twelve months, the critical challenge for Chrysler will be establishing adequate market demand and pricing for its minivans and crossover vehicles, given the weakness in its car portfolio. A sustainable business model will require a continuation of effective cost cutting initiatives, maintenance of adequate liquidity, and a successful product and pricing strategy. A key factor in the review of Chrysler will be the company's plans for managing these three variables. The review will also consider the near-term share position and pricing profile of Chrysler's minivans, crossovers and cars, well as any longer-term plans that might enhance its small-vehicle portfolio in the 2010 time frame. The review will also assess the ability of DaimlerChrysler Financial Services Americas to continue to provide adequate levels of retail and wholesale financing in support of Chrysler's automotive operations. Chrysler Automotive LLC is headquartered in Auburn Hills, Michigan. COLT TELECOM: S&P Shifts Outlook to Positive; Affirms B Ratings --------------------------------------------------------------- Standard & Poor's Ratings Services has revised its outlook on European business telecommunications operator COLT Telecom Group Ltd. and COLT Telecom Group S.A. to positive. At the same time, S&P affirmed its 'B' long-term corporate credit ratings on all COLT entities and its 'B' issue rating on COLT's EUR262 million notes due 2009. "The outlook revision reflects improved revenue visibility and continued positive free operating cash flow (FOCF) generation at COLT, and indicates the possibility that the rating on COLT could be raised if management successfully refinances COLT's EUR262 million notes maturing in December 2009," said S&P's credit analyst Michael O'Brien. The ratings on COLT remain constrained, however, by the entrenched dominant positions of COLT's incumbent competitors in most of its operations across Europe; the industry's high competitiveness characterized by sharp pricing pressure; and COLT's exposure to intrinsic telecommunications technological risks as well as its only moderately positive FOCF generation. These factors are partly offset, however, by COLT's fully owned Pan-European network; modest leverage; satisfactory liquidity position; and supportive major shareholder FMR LLC (Fidelity; AA-/Stable/A-1+) and other Fidelity entities, which have shown some financial support in the past. The positive outlook reflects that the ratings on COLT could be raised subsequent to the timely and comfortable refinancing of its EUR262 million notes maturing in December 2009. This applies in the context of COLT maintaining an adequate liquidity position, sustaining its modestly positive FOCF generation, and being able to withstand the pressures inherent in its operating environment without experiencing operating margin decline on a consolidated basis as well as building on the improved revenue visibility stemming from its data center contracts. Weakness in operating performance or a weakening in liquidity caused by negative FOCF, higher capital expenditures, or weaker cash generation would lead to the outlook reverting to stable. "If significant progress is not made in terms of refinancing by the end of the first quarter 2009, we will consider revising the outlook to stable. An inability to refinance or sustained negative FOCF would put downward pressure on the ratings," said Mr. O'Brien. COMMUNITY COMMUNICATION: Taps Administrators from Tenon Recovery ---------------------------------------------------------------- Matthew Colin Bowker and Steven John Parker of Tenon Recovery were appointed joint administrators of Community Communication Network Ltd. (Company Number 05044421) on July 30, 2008. Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. The company can be reached at: Community Communication Network Ltd. c/o Tenon Recovery Clive House Clive Street Bolton Lancashire BL1 1ET England DIGITAL THERAPY: Brings in Joint Administrators from Mazars ----------------------------------------------------------- R. D. Adamson and P. Charlton of Mazars were appointed joint administrators of Digital Therapy Ltd. (Company Number 04515984) on July 25, 2008. Mazars -- http://www.mazars.com/-- provides audit, accounting, tax and advisory services. The company can be reached at: Digital Therapy Ltd. c/o Mazars Mazars House Gelderd Road Gildersome Leeds LS27 7JN England DUNWOODY MARKETING: Exits Administration Without Print Unit ----------------------------------------------------------- Dunwoody Marketing Communications has been pulled out of administration. The company is revived without DPN, it's print division, printweek.com reports. DPN was created after acquiring Bake Print in 2006. In April 2008, Bake Print went into administration with Dunwoody following suit on July 16. Messrs. David Marsden, Ian Tonks and James Wills sit as new directors of the company. Mr. Marsden said, "The acquisition of Bake Print was a massive investment from Dunwoody. Despite substantial cost cuts, Bake Print was never able to get to the turnover required to cover its expenses." Based in Newbury, Berkshire, Dunwoody Marketing Communications -- http://www.dunwoody.co.uk/index.php-- is an advertising agency employing over 50 personnel. E A CASTLE: David Elliott Leads Liquidation Procedure ----------------------------------------------------- David Elliott of Moore Stephens LLP was appointed liquidator of E A Castle & Son Ltd. on July 31, 2008, for the creditors' voluntary winding-up procedure. The company can be reached at: E A Castle & Son Ltd. c/o Moore Stephens LLP Victory House Admiralty Place Chatham Maritime Kent ME4 4QU England EXPRESS GLASS: Appoints Liquidator from BDO Stoy Hayward -------------------------------------------------------- Andrew Howard Beckingham of BDO Stoy Hayward LLP was appointed liquidator of Express Glass & Glazing Ltd. on July 22, 2008, for the creditors' voluntary winding-up procedure. The company can be reached at: Express Glass & Glazing Ltd. c/o BDO Stoy Hayward LLP Arcadia House Maritime Walk Ocean Village Southampton SO14 3TL England F1 ENGINEERING: Calls in Administrators from Tenon Recovery ----------------------------------------------------------- Alexander Kinninmonth and Stanley Donald Burkett-Coltman of Tenon Recovery were appointed joint administrators of F1 Engineering Services Ltd. (Company Number 3831316) on July 17, 2008. Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. The company can be reached at: F1 Engineering Services Ltd. Unit 1C Wessex Gate Industrial Estate Portsmouth Road Horndean Hampshire PO8 9LP England FEARNLEY ELECTRICAL: Joint Liquidators Take Over Operations ----------------------------------------------------------- Marc Justin Landsman of Carmichael & Co. and Colin Andrew Prescott of Moore Stephens LLP were appointed joint liquidators of Fearnley Electrical Ltd. on July 22, 2008, for the creditors' voluntary winding-up proceeding. The company can be reached at: Fearnley Electrical Ltd. Fifth Floor City Wharf New Bailey Street Manchester M3 5ER England GALACOURT LTD: Paperun Taps Receiver from PKF --------------------------------------------- Paperun Ltd. appointed Philip J. Long of PKF (U.K.) LLP joint administrative receiver of Galacourt Ltd. (Company Number 1183457) on July 28, 2008. The company can be reached at: Galacourt Ltd. c/o PKF (U.K.) LLP Farringdon Place 20 Farringdon Road London EC1M 3AP England PHAROS INTERNATIONAL: Appoints Joint Administrators from Vantis --------------------------------------------------------------- Colin Ian Vickers and Christopher David Stevens of Vantis were appointed joint administrators of Pharos International Ltd. (Company Number 01285185) on July 28, 2008. Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. The company can be reached at: Pharos International Ltd. c/o Vantis Fourth Floor Southfield House 11 Liverpool Gardens Worthing West Sussex BN11 1RY England SOUTHERN PACIFIC 05-3: S&P Puts BB/B Ratings on Watch Negative -------------------------------------------------------------- Standard & Poor's Ratings Services has placed on CreditWatch with negative implications its credit ratings on the E1c, ETc, and FTc notes issued by Southern Pacific Securities 05-3 (SPS 05-3), and Southern Pacific Securities 06-1 (SPS 06-1). The CreditWatch placements follow an initial review of the most recent information that S&P received for these transactions. The rating actions on these transactions are based on a decline in key performance indicators. As of June 2008, losses since inception of the SPS 05-3 portfolio increased to 1.01% from 0.82%. In the March 2008 payment period, S&P's index for nonconforming deals in interest payment period 10 is 0.59% for the 2005 vintage. Repossessions outstanding comprise 4.98% of the current portfolio. Additionally, 90+ day delinquencies for the SPS 06-1 portfolio as of June 2008 are significantly high at 31.96%, while S&P's nonconforming index is 24.53%. The performance of the portfolios has resulted in an increase in risk for the excess spread notes, with the notes receiving no notional reduction since June 2007 for SPS 05-3 and since March 2007 for SPS 06-1. Furthermore, on the next interest payment date (September 2008), the A2c detachable rate coupon (DAC) notes will step up a further 50 basis points to 2.85% for SPS 05-3 and 5 basis points to 2.50% for SPS 06-1. The A2c DAC notes in SPS 06-1 will increase in the next three interest payment dates to 3.15%. This will further limit the available excess spread to make payments to the excess spread notes and increase the FTc principal balances. S&P will conduct new credit and cash flow runs and the results, together with any effects on the ratings on any of the notes, will be released in due course. S&P continues to closely monitor the performance of these transactions. The rating agency will pay particular attention to future repossessions and any losses that are realized as a result of the current repossessions. The results of S&P's ongoing analysis and any rating changes are expected in due course. Ratings List: Southern Pacific Securities 05-3 PLC -- GBP135 Million And EUR304.3 Million And US$100 Million Mortgage-Backed Floating-Rate Notes Plus An Over Issuance Of GBP14 Million Mortgage-Backed Floating-Rate Notes And GBP4 Million Mortgage-Backed Deferrable-Interest Notes Class Rating ----- To From -- ----- Ratings Placed On CreditWatch With Negative Implications: E1c BB/Watch Neg BB ETc BB/Watch Neg BB FTc B/Watch Neg B Southern Pacific Securities 06-1 PLC -- GBP140.45 Million, EUR157.85 Million And US$199.15 Million Mortgage-Backed Floating-Rate Notes, Plus An Over Issuance Of GBP13.68 Million And GBP2.88 Million Deferrable Interest Notes Class Rating ------ ------ To From -- ---- Ratings Placed On CreditWatch With Negative Implications E1c BB/Watch Neg BB ETc BB/Watch Neg BB FTc B/Watch Neg B SOUTHERN PACIFIC 06-1: S&P Puts BB/B Ratings on Watch Negative -------------------------------------------------------------- Standard & Poor's Ratings Services has placed on CreditWatch with negative implications its credit ratings on the E1c, ETc, and FTc notes issued by Southern Pacific Securities 05-3 (SPS 05-3), and Southern Pacific Securities 06-1 (SPS 06-1). The CreditWatch placements follow an initial review of the most recent information that S&P received for these transactions. The rating actions on these transactions are based on a decline in key performance indicators. As of June 2008, losses since inception of the SPS 05-3 portfolio increased to 1.01% from 0.82%. In the March 2008 payment period, S&P's index for nonconforming deals in interest payment period 10 is 0.59% for the 2005 vintage. Repossessions outstanding comprise 4.98% of the current portfolio. Additionally, 90+ day delinquencies for the SPS 06-1 portfolio as of June 2008 are significantly high at 31.96%, while S&P's nonconforming index is 24.53%. The performance of the portfolios has resulted in an increase in risk for the excess spread notes, with the notes receiving no notional reduction since June 2007 for SPS 05-3 and since March 2007 for SPS 06-1. Furthermore, on the next interest payment date (September 2008), the A2c detachable rate coupon (DAC) notes will step up a further 50 basis points to 2.85% for SPS 05-3 and 5 basis points to 2.50% for SPS 06-1. The A2c DAC notes in SPS 06-1 will increase in the next three interest payment dates to 3.15%. This will further limit the available excess spread to make payments to the excess spread notes and increase the FTc principal balances. S&P will conduct new credit and cash flow runs and the results, together with any effects on the ratings on any of the notes, will be released in due course. S&P continues to closely monitor the performance of these transactions. The rating agency will pay particular attention to future repossessions and any losses that are realized as a result of the current repossessions. The results of S&P's ongoing analysis and any rating changes are expected in due course. Ratings List: Southern Pacific Securities 05-3 PLC -- GBP135 Million And EUR304.3 Million And US$100 Million Mortgage-Backed Floating-Rate Notes Plus An Over Issuance Of GBP14 Million Mortgage-Backed Floating-Rate Notes And GBP4 Million Mortgage-Backed Deferrable-Interest Notes Class Rating ----- ------ To From -- ----- Ratings Placed On CreditWatch With Negative Implications: E1c BB/Watch Neg BB ETc BB/Watch Neg BB FTc B/Watch Neg B Southern Pacific Securities 06-1 PLC -- GBP140.45 Million, EUR157.85 Million And US$199.15 Million Mortgage-Backed Floating-Rate Notes, Plus An Over Issuance Of GBP13.68 Million And GBP2.88 Million Deferrable Interest Notes Class Rating ----- ------ To From -- ---- Ratings Placed On CreditWatch With Negative Implications E1c BB/Watch Neg BB ETc BB/Watch Neg BB FTc B/Watch Neg B SPACE KITCHENS: Calls in Joint Administrators from PKF ------------------------------------------------------ Kerry Bailey and Matthew Gibson of PKF (U.K.) LLP were appointed joint administrators of Space Kitchens & Bedrooms (Holdings) Ltd. (Company Number 04294129) and Space Kitchens (Holdings) Ltd. on July 14, 2008. PKF (U.K.) LLP -- http://www.pkf.co.uk-- specializes in advising the management of developing private and public businesses. Its principal services include assurance & advisory; corporate finance; corporate recovery & insolvency; forensic; management consultancy and taxation. It also offers financial services through its FSA authorized company, PKF Financial Planning Limited. The company can be reached at: Space Kitchens & Bedrooms (Holdings) Ltd c/o PKF (U.K.) LLP Sovereign House Queen Street Manchester M2 5HR England ULMKE METALS: Taps Joint Administrators from BDO Stoy Hayward ------------------------------------------------------------- C. K. Rayment and M. Dunham of BDO Stoy Hayward LLP were appointed joint administrators of Ulmke Metals Ltd. (Company Number 00652806) on July 25, 2008. BDO Stoy Hayward -- http://www.bdo.co.uk/-- focuses on business assurance (audit), corporate advisory, tax, and investment management services, specializing in such industries as charities, educational institutions, family businesses, financial services, leisure, and hospitality. The company is the U.K. arm of BDO International and has offices in more than 15 cities throughout the U.K. The company can be reached at: Ulmke Metals Ltd. c/o BDO Stoy Hayward LLP 125 Colmore Row Birmingham B3 3SD England * Large Companies with Insolvent Balance Sheet ---------------------------------------------- Shareholders Total Working Equity Assets Capital Ticker (US$MM) (US$MM) (US$MM) ------ ----------- ------- -------- AUSTRIA ------- Libro AG (111) 174 (182) BELGIUM ------- Sabena S.A. (86) 2,215 (297) CZECH REPUBLIC -------------- Ceskomoravska Kolben & Danek Praha Holding (89) 192 (2,186) Setuza A.S. (55) 145 (1,120) DENMARK ------- Elite Shipping (28) 101 19 FRANCE ------ Banque Nationale de Paris Guyane BNPG (41) 352 N.A. BSN Glasspack (101) 1,151 179 Charbo De France (3,872) 4,738 (2,868) Euro Computer System (110) 682 377 Grande Paroisse S.A. (927) 629 330 Immob Hoteliere (67) 301 (13) Matussiere et Forest S.A. MTF (78) 294 (28) Pagesjaunes GRP PAJ (3,023) 1,377 (311) Pneumatiques Kleber S.A. (34) 480 139 SDR Picardie (135) 413 N.A. Soderag (3) 404 N.A. Sofal S.A. (305) 6,619 N.A. Spie-Batignolles (16) 5,281 75 Selcodis S.A. SPVX (9) 134 (26) Trouvay Cauvin (0) 134 10 Usines Chausson (23) 249 35 GERMANY ------- Alno AG ANO (21) 340 (61) Babcock Borsig BBX (1608) 137 (1,309) CBB Holding AG COB (43) 905 N.A. Cinemaxx AG MXC (38) 178 (32) Dortmunder Actien-Brauerei DABG (13) 118 (29) EM.TV AG EV4G.BE (22) 849 15 F.A. Guenther & Son AG GUSG (10) 111 N.A. Kabel Deutschland (1,199) 2,280 (306) Kaufring AG KAUG (19) 151 (51) Maternus Kliniken AG MAK.F (13) 190 (68) Nordsee AG (8) 195 (31) Primacom AG PRC (5) 662 (47) Schaltbau Hold SLT (3) 240 14 SinnLeffers AG WHGG (4) 454 (145) Spar Handels- AG SPAG (442) 1,433 (234) TA Triumph-Adler TWN (72) 462 (53) GREECE ------ Petzetakis-PFC PETZP (8) 263 (98) Radio A.Korassidis KORA (101) 181 (139) Commercial HUNGARY ------- Exbus PLC EXBUS (30) 118 (5,162) ICELAND ------- Decode Genetics Inc. DCGN (146) 156 48 IRELAND ------- Elan Corp PLC ELN (388) 1,599 484 Waterford Wed Ut WTFU (145) 897 208 ITALY ----- A.S. Roma S.p.A. ASR (12) 188 (49) Binda S.p.A. BND (11) 129 (20) Cirio Finanziaria S.p.A. (422) 1,583 (396) Gruppo Coin S.p.A. GC (154) 801 (50) Compagnia Italia ICT (138) 527 (235) Credito Fondiario e Industriale S.p.A. (200) 4,218 N.A. Finpart S.p.A. (152) 732 (322) I Viaggi del Ventaglio S.p.A. VVE (64) 529 (88) Lazio S.p.A. SSL (32) 254 (33) Olcese S.p.A. OLCI.MI (13) 180 (64) Parmalat Finanziaria S.p.A. (18,419) 4,121 (12,481) Snia S.p.A. SN (12) 447 21 Technodiffusione Italia S.p.A. TDIFF.PK (90) 152 (24) NETHERLANDS ----------- Baan Company N.V. BAAN (8) 610 46 United Pan-Euro Air UPC (5,266) 5,180 (8,730) NORWAY ------ Interoil Exploration IOX (9) 205 (11) Petroleum-Geo Services PGO (32) 2,963 (5,250) POLAND ------ Vista Altan VAFK (15) 174 (4) ROMANIA ------- Oltchim RM Valce OLT (7) 673 (417) Rafo Onesti RAF (430) 353 (1,510) RUSSIA ------ East Siberia Brd VSNK (79) 107 (278) Omskij Kauchu OMKA (4) 125 (1,794) OAO Samaraneftegas (332) 892 (16,942) Vimpel Ship SOVP (93) 281 (420) Zil Auto ZILLP (178) 425 (10,597) SPAIN ----- Altos Hornos de Vizcaya S.A. AHV (116) 1,283 (278) Santana Motor S.A. LRSA (46) 223 41 SWITZERLAND ----------- Fortune Management (85) 348 (37) TURKEY ------ Nergis Holding (24) 125 26 Yasarbank (948) 623 N.A. UKRAINE ------- Dniprooblenergo DNON (51) 433 (1,010) Donetskoblenergo DOON (341) 573 (2,365) UNITED KINGDOM -------------- Abbott Mead Vickers (2) 168 (16) Alldays Plc (120) 252 (202) Amey Plc AMY (49) 932 (47) Atkins (WS) Plc ATK (150) 1,390 62 Bagleys Investment (247) 1,094 (126) BCH Group Plc BCH (6) 188 (44) Blenheim Group BEH (153) 198 (34) Booker Plc BKRUY (60) 1,298 (8) Bradstock Group BDK (2) 269 5 Brent Walker Group BWL (1,774) 867 (1,157) British Energy Ltd (5,823) 4,921 290 British Energy Plc BGY (5,823) 4,921 434 British Nuclear Fuels Plc (4,248) 40,326 977 Carlisle Group (12) 204 15 Compass Group CPG (668) 2,972 (298) Dowson Holding DWN (18) 226 31 Dignity Plc DTY (9) 648 35 Easybroker PLC (1) 287 (1) Easynet Group ESY.L (45) 323 38 Electrical and Music Industries Group EMI (2,266) 2,950 (296) Evans Healthcare (86) 239 (144) Global Green Tech Group (156) 408 (18) Imperial Chemical Industries Plc ICI (370) 8,393 2 Ladbrokes Plc LAD (894) 2,139 (356) Lambert Fenchurch Group (1) 1,827 3 Legal & Gen. Fin. (7) 3,576 (522) M 2003 Plc (2,204) 7,205 (756) Misys Plc MSY (7) 1,123 (131) Mytravel Group MT.L (380) 1,818 (488) New Star Asset (418) 368 10 Next Plc (156) 3,224 (63) Norbain Finance (10) 280 (10) Orange Plc ORNGF (594) 2,902 7 Rank Group Plc (26) 1,209 (88) Regus Plc (46) 367 (60) Saatchi & Saatchi SSI (119) 705 (41) SFI Group SUF (108) 178 (162) Skyepharma PLC SKP (117) 212 11 Spirit Group (75) 365 (56) Telewest Communications Plc TLWT (3,702) 7,581 (5,631) Trio Finance TRIO (14) 592 N.A. Wincanton Plc WIN (27) 1,451 (78) ********* 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. Zora Jayda Zerrudo Sala, Pius Xerxes Tovilla, Joy Agravante, Julybien Atadero, Marie Therese Profetana and Peter A. Chapman, Editors. Copyright 2008. 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 Christopher Beard at 240/629-3300. * * * End of Transmission * * *