/raid1/www/Hosts/bankrupt/TCREUR_Public/080822.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
Friday, August 22, 2008, Vol. 9, No. 167
Headlines
A U S T R I A
BIOGASSYSTEME & KLARTECHNIKELEMENTE: Claims Filing Ends Sept. 24
DIALOG IM DUNKELN: Claims Registration Period Ends September 4
KONERZ LLC: Claims Registration Period Ends September 1
TOP SALES: Claims Registration Period Ends September 25
B U L G A R I A
* Number of Varna Real Estate Agencies Going Bankrupt Soars
G E O R G I A
* GEORGIA: Fitch Lowers Issuer Default Ratings to B+ from BB-
G E R M A N Y
ALUMA PERSONALLEASING: Creditors' Meeting Set September 3
AKADEMIE ZUR FOERDERUNG: Claims Registration Ends September 3
ARCHEZYM GMBH: Creditors' Meeting Slated for September 3
CHIQUITA BRANDS: Sells Atlanta AG to UNIVEG for EUR65 Million
CR AUTOWASCHANLAGEN: Claims Registration Period Ends Sept. 3
DELTA KURIER: Claims Registration Period Ends September 3
DISKOTHEK OLD: Claims Registration Period Ends September 3
DLC DUISBURG: Claims Registration Period Ends September 3
GGS-DIENSTLEISTUNGEN: Claims Registration Period Ends Sept. 3
GROB AEROSPACE: Files for Insolvency; Lender Withdraws Support
GRONAUER LEASING: Claims Registration Ends September 3
OEN-YIL GASTROSERVICE: Claims Registration Ends September 3
UKNOW GMBH: Claims Registration Period Ends September 2
WOHNEN AM TIERGARTEN: Creditors' Meeting Set September 3
I R E L A N D
EIRX THERAPEUTICS: To Liquidate Irish Unit; Director Resigns
GLACIER FUNDING: Fitch Downgrades 4 and Affirms 1 Class of Notes
ROBECO CDO: S&P Lowers Class B-2 Rating to 'B+'
I T A L Y
ALITALIA SPA: Italy May Ask Parmalat CEO to Lead Carrier
PARMALAT SPA: CEO Enrico Bondi to Resign for Alitalia Post
K A Z A K H S T A N
KAZTRANSGAS: S&P Affirms BB Long-Term Corporate Credit Ratings
K Y R G Y Z S T A N
SAKA TRIDE: Creditors Must File Claims by September 23
R U S S I A
MOSENERGO: S&P Affirms Long-Term Corporate Credit Rating at BB
RSP VOLGA-K: Creditors Must File Claims by September 19
RUCHYEVSKIY FISH: St. Petersburg Bankruptcy Hearing Set Sept. 23
STSOR CJSC: Moscow Bankruptcy Hearing Set October 7
TEKH-KOM LLC: Creditors Must File Claims by September 19
TRANSIT DAL: Court Starts Bankruptcy Supervision Procedure
TRUST LLC: Court Starts Bankruptcy Supervision Procedure
VOZROZHDENIE: S&P Assigns BB-/B Counterparty Credit Ratings
ZAP-SIB-STROY: Court Starts Bankruptcy Supervision Procedure
ZARYA OJSC: Altay Bankruptcy Hearing Set November 19
S W E D E N
FORD MOTOR: DBRS Confirms B Issuer Rating, Trend Changed to Neg
S W I T Z E R L A N D
GENERAL MOTORS: DBRS Cuts Issuer Rating to B, Trend Now Negative
U N I T E D K I N G D O M
BAA LTD: Competition Commission May Order Sale of Three Airports
BAA LIMITED: Says Competition Commission's Report Flawed
BOOMERANG GROUP: Brings in Liquidators from Moore Stephens
CET LTD: Appoints Joseph P. McLean as Liquidator
CYMRU COMMUNITY: Taps Joint Administrators from Vantis
CHRYSLER LLC: DBRS Junks Issuer Rating to CCC, Trend Negative
DAWNAY DAY: UK Property Portfolio Up for Sale; Attracts Buyers
EXPRIME ESTATES: Calls in Joint Administrators from Kroll
FELIX CORPORATION: Taps Liquidators from Tenon Recovery
GRIMSBY GLASS: Brings in Liquidators from Tenon Recovery
HEBDEN BRIDGE: Hires Liquidators from Tenon Recovery
H.O.D. DESIGNS: Appoints Liquidators from Mazars
MINERVA INTERNATIONAL: Taps Liquidators from BDO Stoy Hayward
MOORGATE CLO: Fitch Affirms B Rating on EUR12.75 Million Notes
NATIONAL BANK: Fitch Affirms Individual Rating at 'C/D'
PREMIER PLUMBING: Colin Nicholls Leads Liquidation Procedure
RHYTHM NEWMEDIA: Closes U.K. and India Offices
SOUTHERN MOTOR: Goes Into Administration
TH!NK UK: Taps Liquidators from Baker Tilly Restructuring
VERMONT DEVELOPMENTS: Goes Into Administration
* HBJ Taps Chris Radford to Lead Nottingham Insolvency Team
* BOOK REVIEW: Bailout
*********
=============
A U S T R I A
=============
BIOGASSYSTEME & KLARTECHNIKELEMENTE: Claims Filing Ends Sept. 24
----------------------------------------------------------------
Creditors owed money by LLC Biogassysteme & Klartechnikelemente
have until Sept. 24, 2008, to file written proofs of claim to
the court-appointed estate administrator:
Dr. Benno Wageneder
Bahnhofstr. 20
4910 Ried im Innkreis
Austria
Tel: 07752/810 23
Fax: 07752/810 74
E-mail: b.wageneder@aon.at
Creditors and other interested parties are encouraged to attend
the creditors' meeting at 11:05 a.m. on Oct. 1, 2008, for the
examination of claims at:
The Land Court of Ried im Innkreis
Hall 101
1st Floor
Ried im Innkreis
Austria
Headquartered in Ried im Innkreis, Austria, the Debtor declared
bankruptcy on July 17, 2008, (Bankr. Case No. 17 S 21/08g).
DIALOG IM DUNKELN: Claims Registration Period Ends September 4
--------------------------------------------------------------
Creditors owed money by LLC Dialog im Dunkeln have until Sept.
4, 2008, to file written proofs of claim to the court-appointed
estate administrator:
Dr. Susanne Fruhstorfer
Seilerstatte 17
1010 Vienna
Austria
Tel: 512 57 76
Fax: 512 57 76 50
E-mail: office@fg-lawyers.at
Creditors and other interested parties are encouraged to attend
the creditors' meeting at [time] on [date] for the examination
of claims at:
The Trade Court of Vienna
Room 1703
Vienna
Austria
Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on July 10, 2008, (Bankr. Case No. 5 S 71/08p).
KONERZ LLC: Claims Registration Period Ends September 1
-------------------------------------------------------
Creditors owed money by LLC Konerz have until Sept. 1, 2008, to
file written proofs of claim to the court-appointed estate
administrator:
Beate Holper
Gonzagagasse 15
1010 Vienna
Austria
Tel: 533 2855
Fax: 533 2855 28
E-mail: office@anwaltwien.at
Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:15 a.m. on Sept. 15, 2008, for the
examination of claims at:
The Trade Court of Vienna
Room 1705
Vienna
Austria
Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on July 17, 2008, (Bankr. Case No. 3 S 85/08g).
TOP SALES: Claims Registration Period Ends September 25
-------------------------------------------------------
Creditors owed money by LLC Top Sales have until Sept. 25, 2008,
to file written proofs of claim to the court-appointed estate
administrator:
Dr. Romana Weber-Wilfert
Bahnhofplatz 1 A/Top 3
2340 Moedling
Austria
Tel: 02236/869 291
Fax: 02236/869 580
E-mail: wien@snlaw.at
Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:00 a.m. on Oct. 2, 2008, for the
examination of claims at:
The Land Court of Wiener Neustadt
Room 15
Wiener Neustadt
Austria
Headquartered in Brunn am Gebirge, Austria, the Debtor declared
bankruptcy on July 10, 2008, (Bankr. Case No. 10 S 70/08k).
===============
B U L G A R I A
===============
* Number of Varna Real Estate Agencies Going Bankrupt Soars
-----------------------------------------------------------
The number of real estate agencies going bankrupt in Varna,
Bulgaria is increasing, Stefan Nikolov of news.bg reports.
Citing people from the association, the report says majority of
the agencies declaring bankruptcy are brokers that deal with
vacation homes as they have been hit harder by the crisis in the
local market.
According to experts, the number of agencies focusing in the
vacation homes market is likely to drop significantly by the end
of the year following an ascending period of real estate deals,
which have been negatively influenced by the decrease of
British, Irish buyers, and the over-construction on the
Bulgarian coast, the report discloses.
Big agencies that cater to Western European clients were also
affected by the bankruptcies, the report adds.
=============
G E O R G I A
=============
* GEORGIA: Fitch Lowers Issuer Default Ratings to B+ from BB-
-------------------------------------------------------------
Fitch Ratings said that although Georgia's economy is showing
some encouraging signs of resilience, it expects the military
conflict to carry significant costs for the economy and risks to
the ratings remains on the downside. On Aug. 8, Fitch
downgraded Georgia's Long-term local and foreign currency Issuer
Default ratings to 'B+' from 'BB-' and assigned Negative
Outlooks to the ratings.
"Despite the ceasefire agreement, some encouraging signs of the
Georgian economy's resilience and potential support from
international financial institutions, we continue to see
downside risks to the economy and creditworthiness due to the
conflict," says Edward Parker, Head of Emerging Europe
sovereigns at Fitch. "There has been some decline in foreign
reserves and outflow of bank deposits since the outbreak of the
conflict, though the outflow of deposits slowed towards the end
of last week. But it remains too early to judge how severe has
been the impact on the real economy and the risk of further
military and political conflict remains."
The ceasefire agreement and Russian pledge to withdraw troops
are encouraging developments, but skirmishes are possible,
important details of the agreement are unclear and a lasting
peace agreement remains far from guaranteed. In addition to the
loss of life and humanitarian impact of the conflict, it will
leave a troublesome legacy in terms of Georgia's relations with
Russia and the separatist territories of South Ossetia and
Abkhazia.
The impact of the conflict on the economy will be an important
driver of future sovereign rating actions. Since Aug. 7, the
lari has been stable against the appreciating US dollar.
However, the National Bank of Georgia reports that foreign
exchange reserves have fallen 6.4% since end-July to US$1,253
million (in addition, Georgia's sovereign wealth funds contain
US$370 million). Banking system are often pressure points at
times of uncertainty. Fitch estimates from its contacts with
most of the largest banks that between Aug. 7 and 14 they
experienced average total customer deposit outflows of around
12% (17% for retail deposits). The agency judges that magnitude
as considerable, but manageable as the Georgian banking sector
had a reasonably healthy pre-conflict liquidity position, and
liquid assets (defined as cash and equivalents, inter-bank
placements and government debt) continued to cover more than 25%
of total customer and bank funding (for banks where information
is available). If required, the agency would expect some banks
to be able to draw on support from foreign parents or
international financial institutions with which they have
partnerships, and the Georgian authorities have also affirmed
their willingness to provide support to banks experiencing
liquidity problems.
Georgia's substantial current account deficit, which was some
20% of GDP last year, is another potential source of
vulnerability for the Georgian economy. Fitch would expect the
conflict to adversely affect the country's risk premium and its
capacity to attract foreign direct investment (which was
equivalent to 19.7% of GDP last year) and other capital inflows
on the same scale as before. However, supportive statements by
the IMF, other IFIs and the US Treasury suggest that
international loans could be made available to meet any external
financing gap, though such financing would be less desirable
than non-debt FDI.
The displacement of people (estimated by the UNHCR at 160,000),
disruption to trade and activity and some damage to
infrastructure will affect GDP. Real GDP growth was a robust
9.3% (y-o-y) in Q108 after 12.4% in 2007. Encouragingly, the
Ministry of Finance reports that average daily fiscal revenue
collection last week remained strong, some 14% above the
January-to-July average (and revenue in H108 was up 31% on
H107). However, Fitch would expect the conflict to increase
budget expenditure with implications for the deficit, which the
agency would now expect to exceed the 2% of GDP it had expected
prior to the conflict, based on the amended 2008 Budget.
Georgia's moderate level of government debt, which was
equivalent to 25% of GDP at end-2007, and its long average
maturity are rating strengths. Fitch estimates the government
faces amortizations equivalent to only around 0.7% of GDP this
year.
The agency will continue to monitor the situation closely,
including the impact on the Georgian economy and any risk to
domestic political stability, and stands ready to take further
rating action as warranted by events.
=============
G E R M A N Y
=============
ALUMA PERSONALLEASING: Creditors' Meeting Set September 3
---------------------------------------------------------
The court-appointed insolvency manager for Aluma Personalleasing
GmbH, Toralf Maatz, will present his first report on the
Company's insolvency proceedings at a creditors' meeting at
11:40 a.m. on Sept. 3, 2008.
The meeting of creditors and other interested parties will be
held at:
The District Court of Charlottenburg
Hall 218
Second Floor
Amtsgerichtsplatz 1
14057 Berlin
Germany
The Court will also verify the claims set out in the insolvency
manager's report at noon on Dec. 17, 2008, at the same venue.
Creditors have until Oct. 15, 2008, to register their claims
with the court-appointed insolvency manager.
The insolvency manager can be reached at:
Toralf Maatz
Kurfuerstendamm 26a
10719 Berlin
Germany
The District Court of Charlottenburg opened bankruptcy
proceedings against Aluma Personalleasing GmbH on July 15, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.
The Debtor can be reached at:
Aluma Personalleasing GmbH
Misdroyer Str. 58
14199 Berlin
Germany
AKADEMIE ZUR FOERDERUNG: Claims Registration Ends September 3
-------------------------------------------------------------
Creditors of Akademie zur Foerderung der Medientechnologie GmbH
have until Sept. 3, 2008, to register their claims with court-
appointed insolvency manager Stephan Heinrichsmeyer.
Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on Sept. 24, 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:
Stephan Heinrichsmeyer
Spiekergasse 6-8
33330 Guetersloh
Germany
The District Court of Bielefeld opened bankruptcy proceedings
against Akademie zur Foerderung der Medientechnologie GmbH on
July 10, 2008. Consequently, all pending proceedings against
the company have been automatically stayed.
The Debtor can be reached at:
Akademie zur Foerderung der Medientechnologie GmbH
Im Mediapark 6
50670 Cologne
Germany
ARCHEZYM GMBH: Creditors' Meeting Slated for September 3
--------------------------------------------------------
The court-appointed insolvency manager for Archezym GmbH, Dr.
Petra Hilgers will present his first report on the Company's
insolvency proceedings at a creditors' meeting at 11:30 a.m. on
Sept. 3, 2008.
The meeting of creditors and other interested parties will be
held at:
The District Court of Charlottenburg
Hall 218
Second Floor
Amtsgerichtsplatz 1
14057 Berlin
Germany
The Court will also verify the claims set out in the insolvency
manager's report at 11:40 a.m. on Dec. 10, 2008, at the same
venue.
Creditors have until Oct. 10, 2008, to register their claims
with the court-appointed insolvency manager.
The insolvency manager can be reached at:
Dr. Petra Hilgers
Goethestr. 85
10623 Berlin
Germany
The District Court of Charlottenburg opened bankruptcy
proceedings against Archezym GmbH on July 9, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.
The Debtor can be reached at:
Archezym GmbH
Friedrichstr. 50
10117 Berlin
Germany
CHIQUITA BRANDS: Sells Atlanta AG to UNIVEG for EUR65 Million
-------------------------------------------------------------
Chiquita Brands International, Inc. has completed the sale of
its wholly-owned German distribution business, Atlanta AG to
UNIVEG Fruit and Vegetables BV for net proceeds of approximately
EUR65 million, or US$92 million, including working capital and
net debt adjustments.
The parties also entered a long-term strategic agreement in
which Atlanta will continue to serve as Chiquita's preferred
supplier of banana ripening and distribution services in
Germany, Austria and Denmark.
The company continues to anticipate that the sale and related
entry into the long-term banana ripening and distribution
services agreement will result in a gain as well as a one-time
tax benefit.
Net proceeds are expected to be used primarily for debt
reduction, and the sale and related use of proceeds are
anticipated to be accretive to future earnings.
About Chiquita Brands
Headquartered in Cincinnati, Ohio, Chiquita Brands International
Inc. (NYSE: CQB) -- http://www.chiquita.com/-- is a marketer
and distributor of high-quality fresh and value-added food
products. The company markets its products under the
Chiquita(R) and Fresh Express(R) premium brands and other
related trademarks. Chiquita employs approximately 23,000
people operating in more than 70 countries worldwide.
At March 31, 2008, the company's consolidated balance sheet
showed US$2.80 billion in total assets, US$1.87 billion in total
liabilities, and US$933.0 million in total shareholders' equity.
* * *
As reported in the Troubled Company Reporter on March 4, 2008,
Moody's Investors Service affirmed Chiquita Brands International
Inc.'s US$250 million 7.5% senior unsecured notes due 2014 at
Caa2 (LGD5), LGD % to 82% from 89%; and US$225 million 8.875%
senior unsecured notes due 2015 at Caa2 (LGD5), LGD % to 82%
from 89%.
CR AUTOWASCHANLAGEN: Claims Registration Period Ends Sept. 3
------------------------------------------------------------
Creditors of CR Autowaschanlagen GmbH have until Sept. 3, 2008,
to register their claims with court-appointed insolvency manager
Dr. Oliver Hartig.
Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on Oct. 1, 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 Halle-Saalkreis
Hall 1.043
Judicial Center
Thueringer Str. 16
06112 Halle
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. Oliver Hartig
Philipp-Mueller-Strasse 44
06110 Halle
Germany
Tel: 0345/478130
Fax: 0345/4781318
The District Court of Halle opened bankruptcy proceedings
against CR Autowaschanlagen GmbH on July 8, 2008. Consequently,
all pending proceedings against the company have been
automatically stayed.
The Debtor can be reached at:
CR Autowaschanlagen GmbH
Attn: Josefine Rosenthal, Manager
Roeglitzer Hauptstr. 62
06258 Schkopau
Germany
DELTA KURIER: Claims Registration Period Ends September 3
---------------------------------------------------------
Creditors of Delta Kurier Internationale Kurier Logistik GmbH
have until Sept. 3, 2008, to register their claims with court-
appointed insolvency manager Carsten Koch.
Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on Oct. 15, 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 Darmstadt
Hall 4.310
Fourth Floor
Building D
Mathildenplatz 15
64283 Darmstadt
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:
Carsten Koch
Carl-Theodor-Reiffenstein-Platz 6
60313 Frankfurt
Germany
Tel: 069-405669738
Fax: 069-405669712
The District Court of Darmstadt opened bankruptcy proceedings
against Delta Kurier Internationale Kurier Logistik GmbH on
Aug. 16, 2008. Consequently, all pending proceedings against
the company have been automatically stayed.
The Debtor can be reached at:
Delta Kurier Internationale Kurier Logistik GmbH
Benzstrasse 7
64807 Dieburg
Germany
Attn: Ayse Uran, Manager
Heinrich-Heine-Strasse 21
64839 Muenster
Germany
DISKOTHEK OLD: Claims Registration Period Ends September 3
----------------------------------------------------------
Creditors of Diskothek Old Daddy GmbH have until Sept. 3, 2008,
to register their claims with court-appointed insolvency manager
Dr. Sebastian Henneke.
Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on Oct. 15, 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 C207
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:
Dr. Sebastian Henneke
Muelheimer Str. 100
47057 Duisburg
Germany
The District Court of Duisburg opened bankruptcy proceedings
against Diskothek Old Daddy GmbH on July 15, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.
The Debtor can be reached at:
Diskothek Old Daddy GmbH
Lipperfeld 23
46047 Oberhausen
Germany
Attn: Nina Post, Manager
Rombacher Huette 10 d
44795 Bochum
Germany
DLC DUISBURG: Claims Registration Period Ends September 3
---------------------------------------------------------
Creditors of DLC Duisburg GmbH have until Sept. 3, 2008, to
register their claims with court-appointed insolvency manager
Dr. Sebastian Henneke.
Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Oct. 15, 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 C207
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:
Dr. Sebastian Henneke
Muelheimer Str. 100
47057 Duisburg
Germany
The District Court of Duisburg opened bankruptcy proceedings
against DLC Duisburg GmbH on July 7, 2008. Consequently, all
pending proceedings against the company have been automatically
stayed.
The Debtor can be reached at:
DLC Duisburg GmbH
Weseler Str. 38-40
45478 Muelheim an der Ruhr
Germany
Attn: Udo Volkmar Hueber, Manager
Achenseeweg 94
12209 Berlin
Germany
GGS-DIENSTLEISTUNGEN: Claims Registration Period Ends Sept. 3
-------------------------------------------------------------
Creditors of GGS-Dienstleistungen GmbH have until Sept. 3, 2008,
to register their claims with court-appointed insolvency manager
Dr. Hubert Ampferl.
Creditors and other interested parties are encouraged to attend
the meeting at 9:35 a.m. on Sept. 24, 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 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:
Dr. Hubert Ampferl
Nymphenburger Str. 20
80335 Munich
Germany
Tel: 089/3090586-0
Fax: 089/3090586-10
The District Court of Munich opened bankruptcy proceedings
against GGS-Dienstleistungen GmbH on July 16, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.
The Debtor can be reached at:
GGS-Dienstleistungen GmbH
Garmischer Str. 4
80339 Munich
Germany
GROB AEROSPACE: Files for Insolvency; Lender Withdraws Support
--------------------------------------------------------------
Grob Aerospace GmbH Germany has been forced to file for
insolvency in Germany.
"This unfortunate situation has arisen as a consequence of
recent delays in the spn program, resulting in the increased
requirement for cash to see the program through to
certification. Under the circumstances, our current loan
provider has elected to discontinue their support," Grob CEO
Niall Olver said.
"In order to resolve the situation all possible alternatives are
being evaluated. Given the significant support we have enjoyed
to date, I remain confident that this disruption can be
overcome. I am sure that 37 years of pioneering composite
aircraft manufacturing will survive. The company spirit, the
support we have received from employees, suppliers, customers,
fellow stakeholders and the media demonstrates a significant
interest in Grob remaining in business as a civil & military
training aircraft manufacturer," Mr. Olver stated.
Mr. Olver noted "that amidst this situation, our 4th prototype
flew successfully on Aug. 7, 2008; and thus further
demonstrating that Grob Aerospace is advanced on the way to
certify an aircraft that well promises to meet its
specification."
"Please accept that the severity and significance of this
situation is not at all lost on us, and we are working
relentlessly on a solution to ensure the minimum impact to
employees, customers, other stakeholders and supporters,"
Mr. Grob added.
Meanwhile, Leo Knappen, a spokesman for Bombardier Aerospace,
which selected Grob to build the prototype for its new Learjet
85 business jet, insists news of the insolvency will not affect
its joint development program with the company.
"Grob will continue to operate under the supervision of the
insolvency administrator and we're developing the program as
scheduled," Mr. Knappen was quoted by AVweb as saying.
Headquartered in Zurich, Switzerland, Grob Aerospace --
http://www.grob-aerospace.net/-- is one of the world's largest
and most experienced composite aircraft manufacturers since
1971. Grob's research, development, manufacturing and assembly
facilities are located in Tussenhausen-Mattsies, Germany, where
it maintains its own purpose built airfield. Its central base
in the United States is located in Portsmouth, New Hampshire
with several regional sales offices throughout the USA.
GRONAUER LEASING: Claims Registration Ends September 3
------------------------------------------------------
Creditors of Gronauer Leasing GmbH have until Sept. 3, 2008, to
register their claims with court-appointed insolvency manager
Manfred Vellmer.
Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on Sept. 24, 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 Muenster
Meeting Hall 101 B
First Floor
Gerichtsstr. 2-6
48149 Muenster
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:
Manfred Vellmer
Adalbertstr. 8
48565 Steinfurt
Germany
Tel: 02552/638710
Fax: +4925526387111
The District Court of Muenster opened bankruptcy proceedings
against Gronauer Leasing GmbH on July 9, 2008. Consequently,
all pending proceedings against the company have been
automatically stayed.
The Debtor can be reached at:
Gronauer Leasing GmbH
Attn: Antonie Johannis Verloop, Manager
Laubstiege 1A
48599 Gronau
Germany
OEN-YIL GASTROSERVICE: Claims Registration Ends September 3
-----------------------------------------------------------
The court-appointed insolvency manager for Oen-Yil Gastroservice
GmbH, Dr. Joachim Heitsch will present his first report on the
Company's insolvency proceedings at a creditors' meeting at
11:35 a.m. on Sept. 3, 2008.
The meeting of creditors and other interested parties will be
held at:
The District Court of Charlottenburg
Hall 218
Second Floor
Amtsgerichtsplatz 1
14057 Berlin
Germany
The Court will also verify the claims set out in the insolvency
manager's report at 11:45 a.m. on Dec. 10, 2008, at the same
venue.
Creditors have until Oct. 13, 2008, to register their claims
with the court-appointed insolvency manager.
The insolvency manager can be reached at:
Dr. Joachim Heitsch
Berliner Str. 117
10713 Berlin
Germany
The District Court of Charlottenburg opened bankruptcy
proceedings against Oen-Yil Gastroservice GmbH on July 8, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.
The Debtor can be reached at:
Oen-Yil Gastroservice GmbH
Beusselstr. 44 n - q
10553 Berlin
Germany
UKNOW GMBH: Claims Registration Period Ends September 2
-------------------------------------------------------
Creditors of uknow GmbH have until Sept. 2, 2008, to register
their claims with court-appointed insolvency manager Hendrik
Rogge.
Creditors and other interested parties are encouraged to attend
the meeting at 9:05 a.m. on Oct. 2, 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:
Hendrik Rogge
Haferweg 22
22769 Hamburg
Germany
The District Court of Hamburg opened bankruptcy proceedings
against uknow GmbH on July 2, 2008. Consequently, all pending
proceedings against the company have been automatically stayed.
The Debtor can be reached at:
uknow GmbH
Mexikoring 33
22297 Hamburg
Germany
WOHNEN AM TIERGARTEN: Creditors' Meeting Set September 3
--------------------------------------------------------
The court-appointed insolvency manager for Wohnen am Tiergarten
KG THG Grundstuecks-Anlagen-Verwaltungs-GmbH & Co, Hartwig
Albers will present his first report on the Company's insolvency
proceedings at a creditors' meeting at10:30 a.m. on Sept. 3,
2008.
The meeting of creditors and other interested parties will be
held at:
The District Court of Charlottenburg
Hall 218
Second Floor
Amtsgerichtsplatz 1
14057 Berlin
Germany
The Court will also verify the claims set out in the insolvency
manager's report at 10:15 a.m. on Dec. 15, 2008, at the same
venue.
Creditors have until Oct. 10, 2008, to register their claims
with the court-appointed insolvency manager.
The insolvency manager can be reached at:
Hartwig Albers
Luetzowstr. 100
10785 Berlin
Germany
The District Court of Charlottenburg opened bankruptcy
proceedings against Wohnen am Tiergarten KG THG Grundstuecks-
Anlagen-Verwaltungs-GmbH & Co on July 15, 2008. Consequently,
all pending proceedings against the company have been
automatically stayed.
The Debtor can be reached at:
Wohnen am Tiergarten KG THG Grundstuecks-Anlagen-
Verwaltungs-GmbH & Co
Schaperstr. 18
10719 Berlin
Germany
=============
I R E L A N D
=============
EIRX THERAPEUTICS: To Liquidate Irish Unit; Director Resigns
------------------------------------------------------------
Eirx Therapeutics plc is applying to put its wholly owned Irish
subsidiary Eirx Therapeutics Limited into liquidation (ETL).
Michael McAteer of Foster McAteer, Chartered Accountants, Dublin
has been asked to allow his name to go forward for appointment
as liquidator of ETL.
Colin Telfer the CEO has been made redundant as part of the
liquidation process, and has resigned as a director of the
Company effective Aug. 19, 2008. John Pool, Nick Strong and Tom
Cotter remain as directors.
The directors of Eirx are working to put together a plan
designed to secure the future of the Company based around its
other operating business, Auvation Limited.
Further announcements will be made as appropriate.
Headquartered in Cork, Ireland, EiRx Therapeutics plc (LSE: ERX)
-- http://www.eirxtherapeutics.com/-- is a research-driven
healthcare company developing new targeted therapies for the
treatment of cancer. The company conducts drug discovery from
its laboratories in Cork and in Aberdeen, Scotland, and has an
initial focus on treatment of colorectal and breast cancers.
GLACIER FUNDING: Fitch Downgrades 4 and Affirms 1 Class of Notes
----------------------------------------------------------------
Fitch Ratings has downgraded four and affirmed one class of
notes from Glacier Funding CDO II, Ltd./Inc. Four classes of
notes have been removed from Rating Watch Negative. These
rating actions are effective immediately:
-- US$157,894,465 class A-1 notes downgraded to 'AA-' from
'AA+', and removed from Rating Watch Negative;
-- US$70,000,000 class A-2 notes downgraded to 'BBB-' from
'BBB+', and removed from Rating Watch Negative;
-- US$65,750,000 class B notes downgraded to 'CCC' from 'BB'
and removed from Rating Watch Negative;
-- US$19,068,159 class C notes downgraded to 'C' from 'CC' and
removed from Rating Watch Negative;
-- US$4,350,933 class D notes affirmed at 'C'.
Fitch's rating actions reflect the collateral deterioration
within the portfolio, specifically from subprime residential
mortgage backed securities.
Glacier II is a collateralized debt obligation that closed
Oct. 12, 2004, and is managed by Terwin Money Management LLC.
Glacier II exited its substitution period in February 2007.
Glacier II's portfolio is comprised of subprime RMBS (51.0%),
Alternative-A (Alt-A) RMBS (12.6%) all of which is from the pre-
2005 vintages, prime RMBS (14.8%), commercial mortgage backed
securities (CMBS) (12.1%), and Structured Finance CDOs (6.5%),
commercial ABS (1.1%), Non-SF CDOs (0.9%), and Real Estate
Investment Trusts (1.0%). Subprime RMBS of the pre-2005, 2005,
2006, and 2007 vintages account for approximately 42.7%, 1.1%,
2.6%, and 4.6% of the portfolio. SF CDOs of the pre-2005 and
2006 vintages account for approximately 4.9% and 1.6% of the
portfolio.
Since the last review conducted in November 2007, approximately
32.6% of the portfolio has been downgraded. The portion of the
portfolio rated below investment grade is now 29.1% while 3.2%
of the portfolio is on Rating Watch Negative.
The collateral deterioration has caused the class A/B, C, and D
principal coverage tests to fall below their respective triggers
of 103.3%, 101.6%, and 101.0%. They are failing at 93.3%,
87.6%, and 86.4%, respectively. As a result of the failure of
these tests, interest proceeds that would otherwise be used to
pay class C and D interest are being used to delever the class
A-1 notes. Since closing, the class A-1 notes have paid off
approximately 51.4%. Class A-2 and B continue to receive
interest but will not start to pay off until class A-1 is paid-
in-full. Consistent with the ratings, Fitch expects the class C
and D notes to receive only capitalized interest payments in the
future with no ultimate principal recovery.
The ratings of the class A-1, A-2, and B notes address the
likelihood that investors will receive full and timely payments
of interest, as per the governing documents, well as the stated
balance of principal by the legal final maturity date. The
ratings of the class C and D notes address the likelihood that
investors will receive ultimate and compensating interest
payments, as per the governing documents, well as the stated
balance of principal by the legal final maturity date.
Fitch is reviewing its SF CDO approach and will comment
separately on any changes and potential rating impact at a later
date. Fitch will continue to monitor and review this
transaction for future rating adjustments.
ROBECO CDO: S&P Lowers Class B-2 Rating to 'B+'
-----------------------------------------------
Standard & Poor's Ratings Services lowered its rating on the
class B-2 notes issued by Robeco CDO II Ltd., an arbitrage
collateralized bond obligation (CBO) transaction managed by
Deerfield Capital Management, to 'B+' from 'BB' and removed it
from CreditWatch, where it was placed with negative implications
on March 20, 2008.
"At the same time, we affirmed our 'BBB' ratings on the class B-
1L and B-1LB notes and removed them from CreditWatch negative.
Concurrently, we affirmed our 'AAA' ratings on classes A-1L and
A-2L," S&P relates.
"The downgrade reflects the decline in credit quality of the
underlying portfolio, which has negatively affected the credit
enhancement available to support the notes. We affirmed our
ratings on the four other classes because they have sufficient
credit enhancement available to maintain the current ratings."
RATING LOWERED AND REMOVED FROM CREDITWATCH NEGATIVE
Robeco CDO II Ltd.
Rating
Class To From Balance (mil. US$)
----- -- ---- ----------------
B-2 B+ BB/Watch Neg 22.0
RATINGS AFFIRMED AND REMOVED FROM CREDITWATCH NEGATIVE
Robeco CDO II Ltd.
Rating
Class To From Balance (mil. US$)
----- -- ---- ----------------
B-1L BBB BBB/Watch Neg 38.0
B-1LB BBB BBB/Watch Neg 5.0
RATINGS AFFIRMED
Robeco CDO II Ltd.
Class Rating Balance (mil. US$)
----- ------ ----------------
A-1L AAA 80.965
A-2L AAA 34.000
TRANSACTION INFORMATION
Issuer: Robeco CDO II Ltd.
Co-Issuer: Robeco CDO (Delaware) II Corp.
Collateral manager: Deerfield Capital Management
Underwriter: The Bear Stearns Cos.
Trustee: The Bank of New York Mellon
Transaction type: Cash flow arbitrage corporate
high-yield CBO
TRANCHE INITIAL CURRENT
INFORMATION REPORT ACTION
----------- ------- -------
Date (MM/YYYY) 11/2001 08/2008*
Class A-1L notes rating AAA AAA
Class A-1L notes bal. (mil. US$) 273.0 80.965
Class A-2L notes rating AAA AAA
Class A-2L notes bal. (mil. US$) 34.0 34.0
Class A par value test (%) 130.428 164.447
Class A par value test min. (%) 112.50 112.50
Class B-1L notes rating BBB BBB
Class B-1L notes bal. (mil. US$) 38.0 38.0
Class B-1LB notes rtg. BBB BBB
Class B-1LB notes bal.(mil. US$) 5.0 5.0
Class B-1 par value test (%) 114.404 119.683
Class B-1 par value test min. (%) 106.0 106.0
Class B-2 notes rating BB B+
Class B-2 notes bal. (mil. US$) 22.0 22.0
Class B-2 par value test (%) 107.638 105.052
Class B-2 par value test min. (%) 103.75 103.75
*Based on the July 17, 2008, trustee report.
=========
I T A L Y
=========
ALITALIA SPA: Italy May Ask Parmalat CEO to Lead Carrier
--------------------------------------------------------
Enrico Bondi would resign as Chief Executive Officer of Parmalat
S.p.A. to head national carrier Alitalia S.p.A., Bloomberg News
cites an unsourced Milano Finanza report.
Mr. Bondi was appointed Parmalat's extraordinary commissioner in
December 2003, when the dairy concern's finances collapsed. Mr.
Bondi restructured Parmalat's operation and returned it to
profitability, earning him the CEO post.
According to the weekly journal, the Italian government may ask
Mr. Bondi to help save Alitalia from bankruptcy.
As appeared in the TCR-Europe, the Italian government denied
plans to place Alitalia under extraordinary administration on
Aug. 29, 2008.
Agenzia Giornalistica Italia had reported that the national
carrier will be placed under administration of an external
commissioner during a meeting of Prime Minister Silvio
Berlusconi's cabinet.
Intesa Sanpaolo S.p.A.'s "Fenice" rescue plan entails that
the Italian government will amend a law used to reorganize
Parmalat. The government tapped Intesa Sanpaolo as
adviser for the sale of its 49.9% stake in Alitalia.
According to the outline of the "Alitalia Law," the company will
seek protection from creditors and be placed in extraordinary
administration. Alitalia's core business -- flight operations
-- will be separated from its debt and placed them under a new
company created with the buyer of the Italian government's 49.9%
stake in the carrier. The old company will shoulder the cost of
the planned 5,000 job cuts and take on Alitalia's EUR1.1 billion
debt -- including the recent EUR300 million loan from the
government and a EUR750 million convertible bond. The new
company, meanwhile, will inherit Alitalia's fleet and real
estate assets as well as the remaining employees and up to
EUR500 million in debt.
About Parmalat
Headquartered 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.
About Alitalia
Based in Rome, Alitalia S.p.A. -- http://www.alitalia.it/--
provides air travel services for passengers and air transport of
cargo on national, international and inter-continental routes,
including United States, Canada, Japan and Argentina. The
Italian government owns 49.9% of Alitalia.
Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively. Alitalia posted EUR93 million in
net profits in 2002 after a EUR1.4 billion capital injection.
The carrier booked annual net losses of EUR520 million in 2003,
EUR813 million in 2004, EUR168 million in 2005, EUR625.6 million
in 2006, and EUR494.64 million in 2007.
PARMALAT SPA: CEO Enrico Bondi to Resign for Alitalia Post
----------------------------------------------------------
Enrico Bondi would resign as Chief Executive Officer of Parmalat
S.p.A. to head national carrier Alitalia S.p.A., Bloomberg News
cites an unsourced Milano Finanza report.
Mr. Bondi was appointed Parmalat's extraordinary commissioner in
December 2003, when the dairy concern's finances collapsed. Mr.
Bondi restructured Parmalat's operation and returned it to
profitability, earning him the CEO post.
According to the weekly journal, the Italian government may ask
Mr. Bondi to help save Alitalia from bankruptcy.
As appeared in the TCR-Europe, the Italian government denied
plans to place Alitalia under extraordinary administration on
Aug. 29, 2008.
Agenzia Giornalistica Italia had reported that the national
carrier will be placed under administration of an external
commissioner during a meeting of Prime Minister Silvio
Berlusconi's cabinet.
Intesa Sanpaolo S.p.A.'s "Fenice" rescue plan entails that
the Italian government will amend a law used to reorganize
Parmalat. The government tapped Intesa Sanpaolo as
adviser for the sale of its 49.9% stake in Alitalia.
According to the outline of the "Alitalia Law," the company will
seek protection from creditors and be placed in extraordinary
administration. Alitalia's core business -- flight operations
-- will be separated from its debt and placed them under a new
company created with the buyer of the Italian government's 49.9%
stake in the carrier. The old company will shoulder the cost of
the planned 5,000 job cuts and take on Alitalia's EUR1.1 billion
debt -- including the recent EUR300 million loan from the
government and a EUR750 million convertible bond. The new
company, meanwhile, will inherit Alitalia's fleet and real
estate assets as well as the remaining employees and up to
EUR500 million in debt.
About Alitalia
Based in Rome, Alitalia S.p.A. -- http://www.alitalia.it/--
provides air travel services for passengers and air transport of
cargo on national, international and inter-continental routes,
including United States, Canada, Japan and Argentina. The
Italian government owns 49.9% of Alitalia.
Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively. Alitalia posted EUR93 million in
net profits in 2002 after a EUR1.4 billion capital injection.
The carrier booked annual net losses of EUR520 million in 2003,
EUR813 million in 2004, EUR168 million in 2005, EUR625.6 million
in 2006, and EUR494.64 million in 2007.
About Parmalat
Headquartered 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.
===================
K A Z A K H S T A N
===================
KAZTRANSGAS: S&P Affirms BB Long-Term Corporate Credit Ratings
--------------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its 'BB' long-
term corporate credit ratings on Kazakh energy holding
KazTransGas (KTG) and its 100%-owned gas pipeline operator JSC
Intergas Central Asia (ICA). The outlook remains negative.
The ratings on KTG and on ICA -- which S&P equalizes with that
on KTG -- incorporate support from KTG's 100% parent, state-
owned JSC NC KazMunayGas (KMG; BBB-/Negative/--) and are two
notches below those on KMG, using S&P's top-down approach.
"The notching reflects KTG's stand-alone weaknesses," said S&P's
credit analyst Eugene Korovin.
These include ambitious investments in gas transmission and
distribution; a weak financial profile; heavy dependence on
Russian energy giant OAO Gazprom (BBB/Stable/--); gas transit
volume risk after 2011, when the gas transit contract with
Gazprom expires, potential competition from alternative gas
export pipelines transporting Central Asian gas; and opaque
retail gas tariff regulation in Kazakhstan and Georgia.
These weaknesses are mitigated by the favorable location of
ICA's transit gas pipelines between Central Asian gas producers
and European suppliers, strong gas demand in Europe, a ship-or-
pay transit contract with Gazprom until 2011, and KTG's monopoly
gas supplier position in the service area. S&P assesses KTG's
stand-alone credit quality at 'B'.
The negative outlook reflects that on KMG, as well as a
potential weakening in KTG's stand-alone credit quality.
"The rating could be lowered if the debt financing for KTG's
potential gas pipeline investments leads to a more aggressive
financial profile, with funds from operations to debt falling to
less than 15% and weakening KTG's stand-alone credit quality,"
said Mr. Korovin.
Should the liquidity position further deteriorate due to KTG's
failure to refinance its significant debt maturities in 2008, or
if KTG significantly increases its investment plan for 2008-
2009, the rating would come under pressure.
Strong parental or government support for financing new
projects, through equity increases, debt guarantees, or
increased transit tariffs with Gazprom could mitigate the
negative impact on KTG's creditworthiness.
===================
K Y R G Y Z S T A N
===================
SAKA TRIDE: Creditors Must File Claims by September 23
------------------------------------------------------
LLC Saka Tride has declared insolvency. Creditors have until
Sept. 23, 2008.
Inquiries can be addressed to (+996 312) 51-24-29.
===========
R U S S I A
===========
MOSENERGO: S&P Affirms Long-Term Corporate Credit Rating at BB
--------------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its 'BB' long-
term corporate credit rating and 'ruAA' Russian national scale
rating on electricity and heat generator Mosenergo (AO). The
outlook is stable.
"The ratings on Mosenergo are constrained by its ambitious
capital expenditure program that creates significant external
funding requirements, by its concentrated customer base, and
growing exposure to the volatile spot electricity market," said
S&P's credit analyst Sergei Gorin.
Nevertheless, the ratings are supported by Mosenergo's strong
market position in the wealthy and steadily growing Moscow
region; operational benefits of affiliation with, and support
from, OAO Gazprom (BBB/Stable/--), which now holds a 53.47%
share in Mosenergo and is its major fuel supplier; its low-cost
thermal combined heat and power generation portfolio; and
significant share of regulated and non-competitively exposed
heat sales.
Mosenergo generates about 70% of electricity supplied in the
Moscow region and about 70% of heat supplied in the City of
Moscow (BBB+/Positive/--).
The wholesale electricity market, which generates 44% of
Mosenergo's revenue, is being deregulated, and full opening is
expected by 2011. Growing exposure to volatile spot electricity
prices increases Mosenergo's business risk and earnings
volatility, although its profitability is also improving. Over
the 12 months to March 31, 2008, Mosenergo's EBITDA margin
improved to 11.5%, compared with 10% in 2007.
"The stable outlook reflects our expectation that the
deregulation of the Russian wholesale electricity market will
lead to higher profitability at Mosenergo, offsetting its
growing exposure to a volatile spot electricity price," said Mr.
Gorin.
S&P also expects cash flow protection to remain adequate for the
rating, with FFO to debt above 20%. The rating does not factor
in potential consolidation with Gazprom's other investee
companies in the Russian power sector, which, should it
materialize, may result in a ratings action.
RSP VOLGA-K: Creditors Must File Claims by September 19
-------------------------------------------------------
Creditors of CJSC RSP Volga-K have until Sept. 19, 2008, to
submit proofs of claim to:
V. Tokarenko
Insolvency Manager
Internatsionalnaya Str. 96.
603002 N. Novgorod
Russia
Tel: 8(831)2467810.
The Arbitration Court of N. Novgorod commenced bankruptcy
proceedings against the company. The case is docketed under
Case No. A43-781/2008 27-11.
The Debtor can be reached at:
CJSC RSP Volga-K
Ilyinskaya Str. 73
603000 N. Novgorod
Russia
RUCHYEVSKIY FISH: St. Petersburg Bankruptcy Hearing Set Sept. 23
----------------------------------------------------------------
The Arbitration Court of St. Petersburg and Leningrad will
convene at 10:30 a.m. on Sept. 23, 2008, to hear the bankruptcy
supervision procedure on OJSC Ruchyevskiy Fish Combine. The
case is docketed under Case No. A56-10629/2008.
The Temporary Insolvency Manager is:
A. Baranov
Office 205
Angliyskiy Pr. 3
190121 St. Petersburg
Russia
The Court is located at:
The Arbitration Court of St. Petersburg and the
Leningrad
Hall 113
Suvorovskiy Pr. 50/52
St. Petersburg
Russia
The Debtor can be reached at:
OJSC Ruchyevskiy Fish Combine
Mira Str. 12
Sosnovyj Bor
107140 St. Petersburg
Russia
STSOR CJSC: Moscow Bankruptcy Hearing Set October 7
---------------------------------------------------
The Arbitration Court of Moscow will convene at 11:30 a.m. on
Oct. 7, 2008, to hear the bankruptcy supervision procedure on
OJSC Stsor. The case is docketed under Case No. A40-56289/
08-71-12B.
The Temporary Insolvency Manager is:
A. Prikhodko
Kuznetskiy Most Str. 6/3
125009 Moscow
Russia
The Court is located at:
The Arbitration Court of Moscow
Novaya Basmannaya Str. 10
Moscow
Russia
The Debtor can be reached at:
OJSC Stsor
Komsomolskaya Sqr. 3/30
107140 Moscow
Russia
TEKH-KOM LLC: Creditors Must File Claims by September 19
--------------------------------------------------------
Creditors of LLC Tekh-Kom (TIN 6658208658) have until Sept. 19,
2008, to submit proofs of claim to:
S. Shelegin
Insolvency Manager
Post User Box 93
620088 Ekaterinburg
Russia
The Arbitration Court of Sverdlovsk commenced bankruptcy
proceedings against the company after finding it insolvent. The
case is docketed under Case No. A60-18339/2007-S11.
The Court is located at:
The Arbitration Court of Sverdlovsk
Lenina Pr. 34
620151 Ekaterinburg
Russia
The Debtor can be reached at:
LLC Tekh-Kom
Plotnikov Str. 17
Ekaterinburg
Russia
TRANSIT DAL: Court Starts Bankruptcy Supervision Procedure
----------------------------------------------------------
The Arbitration Court of Sakhalin commenced bankruptcy
supervision procedure on LLC Transit Dal Vostok. The case is
docketed under Case No. A59-1277/08-S9.
The Temporary Insolvency Manager is:
V. Denisov
Post User Box 402
Central Post Office
693000 Yuzhno-Sakhalinsk
Russia
The Debtor can be reached at:
LLC Transit Dal Vostok
Kholmskaya Str. 22
Kostromskoe
Kholmskiy
694650 Sakhalin
Russia
TRUST LLC: Court Starts Bankruptcy Supervision Procedure
--------------------------------------------------------
The Arbitration Court of Bashkortostan republic commenced
bankruptcy supervision procedure on LLC Trust (TIN 0277055137).
The case is docketed under Case No. A07-3529/08-G-GIA.
The Temporary Insolvency Manager is:
O. Simonov
Gorkogo Str. 69/A
Ufa
450112 Bashkortostan
Russia
The Court is located at:
The Arbitration Court of Bashkortostan
Oktyabrskoy Revolyutsii Str. 63a
Ufa
Bashkortostan
Russia
VOZROZHDENIE: S&P Assigns BB-/B Counterparty Credit Ratings
-----------------------------------------------------------
Standard & Poor's Ratings Services has assigned its 'BB-' long-
term and 'B' short-term counterparty credit ratings and 'ruAA-'
Russia national scale rating to Russian Bank Vozrozhdenie. The
outlook is stable.
"The ratings reflect the bank's relatively high exposure to
credit risk, moderate single-party concentrations in loans, and
its high cost base," said S&P's credit analyst Eugene
Tarzimanov.
The ratings are supported by the bank's good business profile in
the Moscow region, satisfactory financial performance, good
funding profile, and adequate capitalization.
The ratings on Vozrozhdenie mirror its stand-alone credit
quality, and do not include any uplift for extraordinary
external support from its shareholders or the Russian
government.
With total assets of US$5 billion on March 31, 2008,
Vozrozhdenie ranks among Russia's 30 largest banks by assets.
"The outlook is stable because we expect that Vozrozhdenie will
expand in line with its strategy, while maintaining its
commercial and financial profile," said Mr. Tarzimanov. "The
bank's focus on the SME segment should support margins and
provide a flow of recurring revenues."
A positive rating action could follow if the bank demonstrates
its resilience to heavy competitive pressure by expanding its
client base, keeping good margins, lowering its cost base, and
maintaining satisfactory capitalization.
Negative pressure on the ratings could come from significantly
falling capitalization, worsening lending concentrations, or
deteriorating loan-portfolio and earnings-structure quality.
ZAP-SIB-STROY: Court Starts Bankruptcy Supervision Procedure
------------------------------------------------------------
The Arbitration Court of Tomsk commenced bankruptcy supervision
procedure on LLC Zap-Sib-Stroy (OGRN 1027003752511). The case
is docketed under Case No. A67-1281/08.
The Temporary Insolvency Manager is:
F. Voitsik
Office 207
Nakhimova Str. 13/1
634034 Tomsk
Russia
The Debtor can be reached at:
LLC Zap-Sib-Stroy
Propmzona ter.
Kedrovyj
636615 Tomsk
Russia
ZARYA OJSC: Altay Bankruptcy Hearing Set November 19
----------------------------------------------------
The Arbitration Court of Altay will convene at 11:30 a.m. on
Nov. 19, 2008, to hear the bankruptcy supervision procedure on
OJSC Zarya. The case is docketed under Case No. A03-5040/
2008-B.
The Temporary Insolvency Manager is:
V. Pitsun
Post User Box 25
Central Post Office
Slavgorod
658820 Altay
Russia
The Debtor can be reached at:
OJSC Zarya
Gribunovskogo Str. 42
Vtoraya Kamenka
Loktevskiy
658431 Altay
Russia
===========
S W E D E N
===========
FORD MOTOR: DBRS Confirms B Issuer Rating, Trend Changed to Neg
---------------------------------------------------------------
DBRS confirmed the ratings of Ford Motor Company, including
Ford's Issuer Rating at B (low). Ford Motor Credit Company LLC
and Ford Credit Canada Limiteds short- and long-term debt are
confirmed at B and R-4, respectively. The trends are changed to
Negative. (This confirmation reflects the maintenance of the
one notch rating differential between the parent company and the
credit company). Additionally, based on DBRSs Leveraged Finance
Rating Methodology, DBRS has assigned recovery and instrument
ratings to Ford's Senior Secured Credit Facilities and Long-Term
Debt of RR3/B (previously rated B (high), the new rating a
result of the Leveraged Finance Rating Methodology) and RR5/CCC
(high). Notwithstanding the challenging environment, DBRS is
confirming the Issuer Rating, albeit with a Negative trend,
(which is assigned to all ratings). The ratings action reflects
our opinion that for the time being, past rating downgrades are
sufficient in light of Ford's ongoing positive performance in
automotive markets outside North America, progress in cost
reductions and the continuing (albeit reduced) liquidity
position. All the ratings are now on Negative trend, reflecting
the sharp downturn in the U.S. automotive industry, combined
with the dramatic shift in vehicle segmentation toward smaller
vehicles and away from SUVs and pick-up trucks, which represent
the company's traditional product strengths. With this rating
action, Ford is removed from Under Review with Negative
Implications, where it was placed on June 20, 2008.
The company's business profile has been significantly undermined
by the dramatic deterioration of the automotive industry in
North America, where aggregate demand has dropped sharply given
the well-documented economic concerns in the United States.
Light vehicle sales in this market are estimated to be in the
range of 14.0 million units, which represents the lowest total
in well over a decade. This has been exacerbated by the sharp
rise in oil and fuel prices, which has resulted in a significant
acceleration of the shift away from larger vehicles (such as
SUVs and pickup trucks) and toward smaller vehicles (e.g.,
passenger cars and crossover utility vehicles). Ford has been
materially adversely impacted by these market developments as it
previously focused on the larger (and typically more profitable)
vehicles and as such is currently under-represented in the
smaller vehicles segment. The shift in vehicle segmentation has
been so dramatic that it compelled the company to actually delay
the introduction of the new F150 (given high inventories of the
existing model), Ford's flagship model that was previously also
the best-selling vehicle in the United States for more than
twenty consecutive years.
Through July 2008, the company's unit sales for the year dropped
15%, relative to a total decline of 11% in the U.S. market.
(Ford's retail market share has, however, held relatively firm,
with much of the lost sales being attributable to a deliberate
reduction in fleet activities, particularly daily rental.)
In the second quarter (ending June 30) of 2008, the company
posted a record loss of US$8.6 billion. DBRS notes that the
results incorporate large (albeit non-cash) impairments for both
Ford's automotive operations and Ford Motor Credit Company LLC
in the amounts of US$5.3 billion and US$2.1 billion; the
impairments can also be attributed to the sharp shift in vehicle
segmentation described previously. Ford's North American
automotive operations incurred a second quarter loss of US$1.3
billion (vis-a-vis a loss of US$300 million in the second
quarter of 2007).
In reaction to the deteriorating U.S. market, Ford last month
unveiled an accelerated Transformation Plan. The Transformation
incorporates a stronger shift toward lean manufacturing (i.e.,
matching capacity to demand), smaller vehicles and fuel-
efficient powertrains. Key components of the Transformation
include:
-- Additional small cars and CUVs to be introduced in North
America, including several models in the B and C segments
that will be transitioned from Europe.
-- Three truck and SUV plants to be converted to small cars,
with retooling to begin in December 2008.
-- Hybrid vehicle production and lineup to double by 2009.
-- Four-cylinder engine capacity in North America to double
by 2011.
While DBRS views positively the measures put forward by the
Transformation, it has also noted that most of the associated
benefits are not expected to result prior to 2010, when Ford
will also gain significant cash savings as its new labor
agreement with the United Auto Workers comes into full effect.
However, DBRS views the 18 months prior to 2010 as the most
challenging period confronting the company, with industry
conditions in North America expected to remain severe.
While North America remains Ford's core market (with a
turnaround in this region vital for the company's long-term
viability), its business profile does benefit from significant
international operations. DBRS notes that the foreign
operations now represent approximately 45% of total revenues and
generated more than US$4 billion in pre-tax profits in the 18
month period ending June 2008.
While Ford's cash burn rate going forward remains a significant
concern, liquidity would appear to be satisfactory for the
short-term, with the company's liquidity position being stronger
than either that of Chrysler LLC or General Motors Corporation.
As of June 30, 2008, Ford's cash position totaled US$26.6
billion, with an additional US$11.6 billion available in secured
and unsecured credit lines. Taking into account first half
results with anticipated further losses through the end of the
year, DBRS expects cash balances of approximately US$20 billion
as of year-end 2008.
DBRS notes that as most of Ford's assets are already encumbered,
the company has little room to raise additiona1 debt. Similarly,
while Ford is said to be considering further asset sales, DBRS
does not expect significant proceeds to be generated from such
divestitures, which would more likely be executed to reduce the
distraction of senior management as it proceeds further with the
company's restructuring activities. Notwithstanding, Ford's
liquidity position should suffice through 2010, particularly in
light of the remaining credit availability. (DBRS notes that the
Company remained well in compliance with its borrowing base
requirements as of June 30, 2008.) Ford's debt maturity
schedule is also favorable, with no significant maturities over
the next four years.
The ratings trend is Negative. In the event that losses and
associated cash outflows escalate well above the level already
anticipated, a downgrade would be likely. DBRS notes, however,
that as of Jan. 1, 2010, Ford's prospects will improve
considerably as its revised labour agreement with the United
Auto Workers comes into effect, substantially reducing the
company's cash outflow. Furthermore, there may also be a
significant level of pent-up demand for automotive vehicles by
this timeframe in light of the depressed sales levels (i.e.,
well below secular trend) expected to persist for the remainder
of 2008 and through 2009.
Issuer: Ford Motor Company
Debt Rated: Issuer Rating
Rating Action: Trend Change
Rating: B (low)
Trend: Neg
Recovery Rating: --
Notes:
Latest Event: Aug. 18, 2008
Issuer: Ford Motor Company
Debt Rated: Senior Secured Credit Facilities
Rating Action: Downgraded
Rating: B
Trend: Neg
Recovery Rating: RR3
Notes:
Latest Event: Aug. 18, 2008
Issuer: Ford Motor Company
Debt Rated: Long-Term Debt
Rating Action: Trend Change
Rating: CCC (high)
Trend: Neg
Recovery Rating: RR5
Notes:
Latest Event: Aug. 18, 2008
Issuer: Ford Motor Credit Company LLC
Debt Rated: Issuer & Long-Term Debt
Rating Action: Trend Change
Rating: B
Trend: Neg
Recovery Rating:
Notes:
Latest Event: Aug. 18, 2008
Issuer: Ford Motor Credit Company LLC
Debt Rated: Short-Term Debt
Rating Action: Trend Change
Rating: R-4
Trend: Neg
Recovery Rating:
Notes:
Latest Event: Aug. 18, 2008
Issuer: Ford Credit Canada Limited
Debt Rated: Long-Term Debt (guar. by Ford Motor Credit Co.)
Rating Action: Trend Change
Rating: B
Trend: Neg
Recovery Rating:
Notes:
Latest Event: Aug 18, 2008
Issuer: Ford Credit Canada Limited
Debt Rated: Commercial Paper (guar. by Ford Motor Credit Co.)
Rating Action: Trend Change
Rating: R-4
Trend: Neg
Recovery Rating:
Notes:
Latest Event: Aug. 18, 2008
=====================
S W I T Z E R L A N D
=====================
GENERAL MOTORS: DBRS Cuts Issuer Rating to B, Trend Now Negative
----------------------------------------------------------------
DBRS downgraded the long-term ratings of General Motors
Corporation, including the Issuer rating to B (low) from B
(high).
Additionally, based on DBRSs Leveraged Finance Rating
Methodology, DBRS has assigned recovery and instrument ratings
to GM's Secured Credit Facilities and Long-Term Debt of RR2/B
(high) and RR4/CCC (high) respectively, (the secured credit
rating is a newly assigned rating, while DBRS is confirming the
long-term unsecured debt). All trends are Negative.
The ratings action reflects the sharp downturn in the U.S.
automotive industry, combined with the dramatic shift in vehicle
segmentation toward smaller vehicles and away from SUVs and
pick-up trucks, which represent the company's traditional
product strengths. This has resulted in significant cash burn
associated with poor operating results (considerably below DBRSs
expectations) in the company's core North American operations.
With this rating action, GM is removed from Under Review with
Negative Implications, where it was placed on June 20, 2008.
The company's business profile has been significantly undermined
by the dramatic deterioration of the automotive industry in
North America, where aggregate demand has dropped sharply given
the well-documented economic concerns in the United States.
Light vehicle sales in this market are estimated to be in the
range of 14.0 million units, which represents the lowest total
in well over a decade. This has been exacerbated by the sharp
rise in oil and fuel prices, which has resulted in a significant
acceleration of the shift away from larger vehicles (such as
SUVs and pickup trucks) and toward smaller vehicles (e.g.,
passenger cars and crossover utility vehicles). GM has been
materially adversely impacted by these market developments as it
focused on the larger (and typically more profitable) vehicles
and as such is currently under-represented in the smaller
vehicles segment. Accordingly, through June 2008, the company's
unit sales for the year dropped 17%, relative to a total decline
of 10% in the U.S. market, with GM's market share through this
period dropping to 21.3% vis-a-vis a level of 22.8% through June
2007. (DBRS notes that a portion of the lost sales is
attributable to a deliberate reduction in fleet activities.)
In the second quarter (ending June 30) of 2008, the company
posted a loss of US$15.5 billion. While this figure
incorporates several special items that total US$9.1 billion,
even excluding such adjustments, GM's loss for the quarter was
US$6.3 billion, of which more than US$4 billion was attributable
to GM's core North American operations. Perhaps even more
alarming was the very sharp drop in North American revenue,
which totaled US$29.7 billion in the second quarter of 2007 but
plummeted to US$19.8 billion in that period this year. While
this decrease may be slightly exaggerated given the effects of
the twelve-week long strike at American Axle & Manufacturing
Holdings Inc., DBRS notes that much of the lost production would
likely have had to be undertaken by GM in any event over the
course of this year. This drop in revenue aptly illustrates the
challenge facing the company, with significantly reduced volumes
in addition to sharply lower average transaction prices as
consumers move toward smaller vehicles. Additionally, while GM
has several new car models in its product pipeline over the next
18 months, DBRS notes few of the planned introductions
are expected to be high-volume models, such that they would
significantly offset lost sales in the truck and SUV segments.
While North America remains GM's core market, with a turnaround
in this region vital for the company's long-term viability, its
business profile does benefit from significant international
operations, which in 2007 represented 39% of total revenues and
generated US$2.1 billion in earnings before taxes. (DBRS notes
that the 2008 profitability of the foreign operations trails
previous-year levels as of the end of the first half; however
this is largely attributable to adverse currency effects and
losses resulting from a one-time adjustment related to hedge
accounting.)
Liquidity would appear to be satisfactory for the short-term,
with the company's liquidity position as of June 30, 2008,
totaling US$21 billion. However, this represents a sharp
decrease from the 2007 year-end level of US$27 billion. GM
recently publicly announced that its operations require a
minimum level of cash in the range of US$11 billion to US$14
billion, (the majority of which is allocated toward supplier
payments due each month). DBRS notes that given the company's
recent cash burn rate in the context of expected severe
conditions in North America through the end of 2009, GM could
potentially face a liquidity crisis as 2010 approaches, absent
any counteractive measures executed by the company.
Additionally, the company's ongoing commitments to Delphi
Corporation as it attempts to emerge from Chapter 11 bankruptcy
proceedings further strain GM's liquidity.
To help alleviate such concerns, in mid-July several new
initiatives were announced in order to bolster GM's liquidity.
These initiatives consisted of operating actions, potential
asset sales and financing activities that total approximately
US$15 billion through the end of next year. When assessing the
company's proposed liquidity plan, DBRS notes that there is
considerable execution risk with respect to the recently
announced initiatives. However, DBRS also observes that GM has
access to approximately US$5 billion in undrawn and committed
bank lines. Moreover, the company still has in excess of US$20
billion in unencumbered assets that could support future secured
debt financings. Further taking into account possible
divestitures of non-core assets, DBRS believes that GM has
sufficient measures at its disposal to ensure an adequate
liquidity position through 2010.
The ratings trend remains Negative. In the event that losses
and associated cash outflows escalate well above the level
already anticipated, a further downgrade would be likely. DBRS
notes, however, that as of Jan. 1, 2010, GM's prospects improve
considerably as its revised labor agreement with the United Auto
Workers comes into effect, substantially improving the company's
cost position. Furthermore, there may also be a significant
level of pent-up demand for automotive vehicles by this
timeframe in light of the depressed sales levels (i.e., well
below secular trend) expected to persist for the remainder of
2008 and through 2009.
Issuer: General Motors Corporation
Debt Rated: Issuer Rating
Rating Action: Downgraded
Rating: B (low)
Trend: Neg
Recovery Rating: --
Notes:
Latest Event: Aug. 18, 2008
Issuer: General Motors Corporation
Debt Rated: Long-Term Debt
Rating Action: Downgraded
Rating: CCC (high)
Trend: Neg
Recovery Rating:RR4
Notes:
Latest Event: Aug. 18, 2008
Issuer: General Motors Corporation
Debt Rated: Convertible Debentures
Rating Action: Downgraded
Rating: CCC (high)
Trend: Neg
Recovery Rating: RR4
Notes:
Latest Event: Aug. 18, 2008
Issuer: General Motors Corporation
Debt Rated: Ind. Dev. Empower. Zone Rev. Bds., S2004 (Issued by
NYC Ind. Dev. Agency, Guar. by GM)
Rating Action: Downgraded
Rating: CCC (high)
Trend: Neg
Recovery Rating: RR4
Notes:
Latest Event: Aug. 18, 2008
Issuer: General Motors Corporation
Debt Rated: Commercial Paper
Rating Action: Confirmed
Rating: R-5
Trend: --
Recovery Rating: --
Notes:
Latest Event: Aug. 18, 2008
Issuer: General Motors Corporation
Debt Rated: Secured Bank Facilities
Rating Action: New Rating
Rating: BB (low)
Trend: Neg
Recovery Rating: RR2
Notes:
Latest Event: Aug. 18, 2008
===========================
U N I T E D K I N G D O M
===========================
BAA LTD: Competition Commission May Order Sale of Three Airports
----------------------------------------------------------------
The Competition Commission has provisionally found that there
are competition problems at each of BAA's seven UK airports
(Heathrow, Gatwick, Stansted and Southampton in England, and
Edinburgh, Glasgow and Aberdeen in Scotland) with adverse
consequences for passengers and airlines. A principal cause is
their common ownership by BAA. There are also competition
problems arising from the planning system, aspects of Government
policy and the system of regulation.
The CC has also published its proposed remedies on which it will
now consult. If these are implemented, the CC will order BAA to
sell two of its three London airports, and also either Edinburgh
or Glasgow airport. The CC will reach its decisions on remedies
on the basis of responses to its consultation at the same time
as it makes its final decisions on the competition issues and
publishes its final report in the first quarter of 2009.
The CC is now seeking views on which two of BAA's three London
airports should be sold and similarly which of Edinburgh or
Glasgow airports should be sold. The CC is also seeking views
on improvements to the effectiveness of the current system of
regulation. Work by the CC on the regulatory system will take
place at the same time as the review of the airports' regulatory
system being undertaken by the Department for Transport, as part
of which Professor Martin Cave is heading an advisory panel.
The Secretary of State for Transport has stated that the current
basis of price controls at Heathrow and Gatwick for the five
years from April 1, 2008, and those at Stansted from April 1,
2009 will remain in force. Accordingly they will not be
affected by any change in ownership of any of these airports.
However, views are also being sought on the most appropriate
regulatory framework as competition develops.
The CC is similarly seeking views on those aspects of Government
policy which adversely affect competition by restricting or
distorting the development of airport capacity. It sees no need
to make similar recommendations on the planning system as these
are already being addressed by Government.
About BAA Ltd.
Headquartered in London, United Kingdom, BAA Ltd. (fka BAA plc)
-- http://www.baa.com/-- owns and operates seven airports in
the United Kingdom, including Heathrow, the world's busiest
international airport, and Budapest Airport, serving 700
destinations by around 300 airlines.
* * *
As reported in the TCR-Europe on Aug. 20, 2008, Standard &
Poor's Ratings Services withdrew the ratings on the debt issued
by BAA Ltd., reflecting the execution of the exchange of the
bonds.
At the same time, the long-term 'BB-' corporate credit rating on
BAA Ltd., which was on CreditWatch with developing implications,
was withdrawn at the company's request.
All ratings on BAA were originally placed on CreditWatch
with negative implications on March 17, 2006, following a
takeover proposal from Airport Development and Investment Ltd.,
a consortium led by Spanish concession and construction group
Grupo Ferrovial S.A.
BAA LIMITED: Says Competition Commission's Report Flawed
--------------------------------------------------------
Colin Matthews, BAA Limited's chief executive, responds to the
provisional findings of the U.K. Competition Commission.
"The Competition Commission's findings should be assessed in the
light of the urgent need for new airport capacity and a modern
regulatory framework, as well as the need -– which we recognised
-– for improved service from the airport operator," Mr. Matthews
said. "The Commission's findings state that the lack of runway
capacity is a main reason for what it calls the current poor
standards of service and the lack of resilience at times of
disruption, which results in regular delays.
"By calling not just for a fundamental restructure of BAA but
also for a review of the Government's Air Transport White Paper,
the Commission risks delaying that delivery of new runways and
making better customer service less, not more, likely.
"We will be seeking urgent clarification from the Government of
how it believes this report's findings can be reconciled with
the air transport policy it established in 2003 and its current
review of economic regulation.
"We note however that this is not the end of the Competition
Commission process and we will continue to point out to the
Commission the many areas where we believe its analysis is
flawed and its remedies would be disproportionate and counter-
productive.
"Just as the Government is about to make the decisions that
could lead to the first full-length runways being built in the
South East since the second world war, the Commission risks
creating uncertainty, delay and confusion at exactly the wrong
time.
"In Scotland, the Commission has apparently ignored the evidence
presented by BAA, and supported by numerous respected third
party organizations, that clearly demonstrates that serve
separate markets and therefore do not and would not compete,
regardless of ownership."
About BAA Ltd.
Headquartered in London, United Kingdom, BAA Ltd. (fka BAA plc)
-- http://www.baa.com/-- owns and operates seven airports in
the United Kingdom, including Heathrow, the world's busiest
international airport, and Budapest Airport, serving 700
destinations by around 300 airlines.
* * *
As reported in the TCR-Europe on Aug. 20, 2008, Standard &
Poor's Ratings Services withdrew the ratings on the debt issued
by BAA Ltd., reflecting the execution of the exchange of the
bonds.
At the same time, the long-term 'BB-' corporate credit rating on
BAA Ltd., which was on CreditWatch with developing implications,
was withdrawn at the company's request.
All ratings on BAA Ltd. were originally placed on CreditWatch
with negative implications on March 17, 2006, following a
takeover proposal from Airport Development and Investment Ltd.,
a consortium led by Spanish concession and construction group
Grupo Ferrovial S.A.
BOOMERANG GROUP: Brings in Liquidators from Moore Stephens
----------------------------------------------------------
Nigel Price and Colin Andrew Prescott of Moore Stephens LLP were
appointed joint liquidators of Boomerang Group Ltd. on July 23,
2008, for the creditors' voluntary winding-up proceeding.
The company can be reached at:
Boomerang Group Ltd.
c/o Moore Stephens LLP
Beaufort House
94-96 Newhall Street
Birmingham
B3 1PB
England
CET LTD: Appoints Joseph P. McLean as Liquidator
------------------------------------------------
Joseph P. McLean of Grant Thornton U.K. LLP were appointed joint
liquidators of CET (U.K.) Ltd. on July 24, 2008, for the
creditors' voluntary winding-up procedure.
The company can be reached at:
CET (U.K.) Ltd.
c/o Grant Thornton U.K. LLP
No. 1 Whitehall
Riverside
Leeds
LS1 4BN
England
CYMRU COMMUNITY: Taps Joint Administrators from Vantis
------------------------------------------------------
Christopher David Stevens and Colin Ian Vickers of Vantis
Business Recovery Services were appointed joint administrators
of Cymru Community Care Ltd. (Company Number 02701834) on
Aug. 4, 2008.
Headquartered in United Kingdom, Vantis Plc (fka Vantis
Numerica) -- http://www.vantisplc.com/-- provides accounting,
business and tax advisory services in the United Kingdom.
The company can be reached at:
Cymru Community Care Ltd.
Ty Pentwyn Nursing Home
Pentwyn Road
Treorchy
Rhondda
Cynon Taff
CF42 6HD
Wales
CHRYSLER LLC: DBRS Junks Issuer Rating to CCC, Trend Negative
-------------------------------------------------------------
DBRS downgraded the ratings of Chrysler LLC, including the
Issuer rating to CCC (high) from B. Additionally, based on
DBRSs Leveraged Finance Rating Methodology, DBRS has assigned
recovery and instrument ratings to Chrysler's First Lien Secured
Credit Facility and Second Lien Secured Credit Facility of RR1/B
(high) and RR5/CCC (previously rated B low). All trends are now
Negative. The ratings action reflects the sharp downturn in the
U.S. automotive industry, Chrysler's core market, combined with
the dramatic shift in vehicle segmentation toward smaller
vehicles and away from SUVs and pick-up trucks, which represent
the Company's traditional product strengths. With this rating
action, Chrysler is removed from Under Review with Negative
Implications, where it was placed on June 20, 2008.
The company's business profile has been significantly undermined
by the dramatic deterioration of the automotive industry in
North America, where aggregate demand has dropped sharply, given
the well-documented economic concerns in the United States.
Light vehicle sales in this market are estimated to be in the
range of 14.0 million units, which represents the lowest total
in well over a decade. This has been exacerbated by the sharp
rise in oil and fuel prices, which has resulted in a significant
acceleration of the shift away from larger vehicles (such as
SUVs and pickup trucks) and toward smaller vehicles (e.g.,
passenger cars and crossover utility vehicles).
Chrysler has been materially adversely impacted by these market
developments as it previously focused on the larger (and
typically more profitable) vehicles and, as such, is currently
under-represented in the smaller vehicles segment. While this
under-representation currently affects each of the Detroit 3,
DBRS notes that the relative overweighting of pick-up trucks and
SUVs is slightly higher with Chrysler than with either of Ford
Motor Company or General Motors Corporation.
Accordingly, the company's unit sales through the first seven
months of 2008 dropped 23%, relative to a total decline of 11%
in the U.S. market; with Chrysler's market share through this
period dropping to 11.3% vis-ŕ-vis a level of 13.1% through July
2007. (DBRS notes that some of the company's models that are
classified as trucks (e.g., selected CUV and minivan models)
have sold reasonably well, given respectable fuel economy
measures and further observes that a portion of Chrysler's lost
sales is attributable to a deliberate reduction in fleet
activities, particularly daily rental.)
Despite the drop in sales and market share performance below the
company's expectations, DBRS acknowledges that, as of June 30,
2008, Chrysler remained in line with most of its budgeted
parameters. This is a function of the ongoing cost-cutting
efforts of the company, combined with initial assumptions for
2008 that were considerably more conservative than in the case
of Ford and GM. Furthermore, in reaction to the sharp change in
U.S. market conditions, Chrysler is reducing its hourly and
salaried workforce by approximately 26,000 workers. The company
is reducing its capacity as well, mostly in the
truck/SUV/minivan segments. Additional production through global
partnerships with various OEMs has also helped increase capacity
utilization.
Notwithstanding the above, DBRS considers Chrysler to be the
most exposed of the Detroit 3 to the challenging market
conditions in the United States. In addition to its current
product portfolio, DBRS notes that Chrysler's announced future
product pipeline is also very heavily skewed toward truck-based
vehicles and, as such, is misaligned with the apparent change in
sentiment of the U.S. market toward smaller vehicles. Moreover,
due to funding constraints and high potential losses associated
with the leasing of pick-up trucks and SUVs (given the alarming
drop in residual values of these vehicles), Chrysler's financial
services affiliate, Chrysler Financial LLC (Chrysler Financial,
a sister company in which Chrysler has no beneficial interest),
recently announced its exit from leasing activities.
As consumers are already burdened with reduced access to credit,
DBRS notes that Chrysler Financials leasing exit could further
erode demand in a very weak market. DBRS further notes that the
overwhelming majority of the Company's sales are sourced from
North America. As such, unlike GM and Ford, Chrysler does not
have the benefit of significant international operations to
partially offset the sizeable losses incurred in its native
market.
The company's liquidity would appear to be satisfactory for the
short-term. As of June 30, 2008, Chrysler's cash balance
totaled US$9.4 billion (excluding restricted cash). While this
amount is relatively unchanged from the 2007 year-end level,
DBRS notes that the June 2008 balance was augmented by working
capital improvements as well as the expected US$2 billion
drawdown of term debt and Chrysler Group note. Chrysler's debt
maturity schedule is also favorable, with no significant near-
term maturities.
However, the company's liquidity going forward will likely be
significantly undermined by sizeable cash outflows to fund
operating losses that may increase substantially in the near
term.
While U.S. automotive sales are currently expected to reach
approximately 14 million units in 2008, DBRS notes that the rate
of sales the past few months has fallen precipitously, with the
annual rate of sales recorded in July 2008 dropping below 13
million units. For 2009, the outlook is such that total unit
sales are at best expected to be relatively flat with 2008
levels.
Absent a capital infusion from its parent company (CG, Investor,
LLC, an affiliate of Cerberus Capital Management L. P.),
Chrysler would appear to have few additional sources of
liquidity. Most of the company's U.S. assets are already
encumbered; similarly, any divestitures are unlikely to generate
significant proceeds.
The ratings trend remains Negative. However, in light of todays
rating actions, future losses and associated cash outflows would
have to be considerably below DBRSs expectations to prompt a
further downgrade. DBRS notes, however, that as of January 1,
2010, Chrysler's prospects improve considerably as its revised
labor agreement with the United Auto Workers comes into effect,
substantially improving the company's cost position.
Furthermore, there may also be a significant level of pent-up
demand for automotive vehicles by this timeframe in light of the
depressed sales levels (i.e., well below secular trend) expected
to persist for the remainder of 2008 and through 2009.
Issuer: Chrysler LLC
Debt Rated: Issuer Rating
Rating Action: Downgraded
Rating: CCC (high)
Trend: Neg
Recovery Rating: --
Notes:
Latest Event: Aug. 18, 2008
Issuer: Chrysler LLC
DebtRated: First Lien Secured Credit Facility
Rating Action: Trend Change
Rating: B (high)
Trend: Neg
Recovery Rating: RR1
Notes:
Latest Event: Aug. 18, 2008
Issuer: Chrysler LLC
DebtRated: Second Lien Secured Credit Facility
Rating Action: Downgraded
Rating: CCC
Trend: Neg
Recovery Rating: RR5
Notes:
Latest Event: Aug. 18, 2008
DAWNAY DAY: UK Property Portfolio Up for Sale; Attracts Buyers
--------------------------------------------------------------
DTZ has been appointed as sole agents by BDO Stoy Hayward LLP to
sell Dawnay, Day's U.K. property portfolio comprising more than
200 assets. The instruction follows DTZ's initial appointment
to provide valuation and strategic advice for the receivership
of the property portfolios of Starlight Investments and
Insureprofit, part of Dawnay, Day's real estate group. The
property portfolio being sold includes Dawnay Day Properties and
has a rent roll of about GBP45 million per annum.
In what is expected to be one of the largest property disposals
this year, there have already been several hundred inquiries
from interested parties. Although the preferred solution is to
dispose of the portfolio to one purchaser, a sale to a finite
number of buyers has not been ruled out.
DTZ, will begin contacting interested parties in the next few
days to establish if they have a strong history of purchases as
well as to demonstrate their credentials and funding for a deal
of this scale.
Richard Stanley, DTZ's Director of Corporate Recovery and
Restructuring, comments: "The sale of these portfolios provides
a unique opportunity for an ambitious purchaser to acquire a
diversified, balanced, U.K. property portfolio with asset
management opportunities. The level of interest already
registered by prospective purchasers illustrates that investors
see this as a unique opportunity."
In July 2008 BDO Stoy Hayward was appointed as administrator to
14 Starlight and Insureprofit companies and as administrative
receiver to a further eight subsidiaries. Together Starlight
and Insureprofit hold investments of almost GBP500 million.
Dawnay, Day which continues to trade has gross assets of about
US$4 billion.
As reported in the TCR-Europe on Aug. 4, 2008, Dawnay Day
Properties and Dawnay Day International were put under BDO Stoy
Hayward's control.
According to Times Online, BDO Stoy Hayward was appointed
administrator to Dawnay Day International, which according to
the Daily Telegraph had gross assets of US$3 billion and managed
another US$4.5 billion.
Headquartered in London, Dawnay Day is a diversified
international financial and property group. Since 2004 Dawnay
Day has four property funds, Puma (U.K. commercial property),
Dawnay Shore Hotels (U.K. hotels), Dawnay Day Carpathian
(Eastern Europe) and Dawnay Day Treveria (German) . According
to the Times, the group has interests in more than 250
companies, through hundreds of subsidiaries and holding
companies, and owns and manages more than US$10 billion (GBP5
billion) worth of assets.
EXPRIME ESTATES: Calls in Joint Administrators from Kroll
---------------------------------------------------------
Charles Peter Holder and Simon Wilson and Anne O'Keefe of Kroll
were appointed joint administrators of Exprime Estates Ltd.
(Company Number 04454949) on Aug. 11, 2008.
Kroll Limited -- http://www.krollworldwide.com/-- offers risk-
consulting services worldwide. The firm is an operating unit of
Marsh & McLennan Companies, Inc., the global professional
services firm. Kroll's services include corporate advisory and
restructuring, financial accounting, valuation and litigation,
electronic evidence and data recovery, business intelligence and
investigations, background screening, and security services.
The company can be reached at:
Exprime Estates Ltd.
c/o Hacker Young
St. James Building
79 Oxford Street
Manchester
M1 6HT
England
FELIX CORPORATION: Taps Liquidators from Tenon Recovery
-------------------------------------------------------
Jeremy Woodside and Christopher Ratten of Tenon Recovery were
appointed joint liquidators of Felix Corporation Ltd. on
July 31, 2008 for the creditors' voluntary winding-up
proceeding.
The company can be reached at:
Felix Corporation Ltd.
c/o KPMG LLP Restructuring
St. James Square
Manchester
M2 6DS
England
GRIMSBY GLASS: Brings in Liquidators from Tenon Recovery
--------------------------------------------------------
Matthew Colin Bowker of Tenon Recovery and David Antony Willis
of Tenon Recovery were appointed joint liquidators of Grimsby
Glass Ltd. on July 30, 2008, for the creditors' voluntary
winding-up proceeding.
The company can be reached at:
Grimsby Glass Ltd.
c/o Tenon Recovery
Europarc Innovation Centre
Innovation Way
Grimsby
DN37 9TT
England
HEBDEN BRIDGE: Hires Liquidators from Tenon Recovery
----------------------------------------------------
Matthew Colin Bowker of Tenon Recovery and David Antony Willis
of Tenon Recovery were appointed joint liquidators of Hebden
Bridge Clothing Company Ltd. on July 31, 2008, for the
creditors' voluntary winding-up proceeding.
The company can be reached at:
Hebden Bridge Clothing Company Ltd.
c/o Tenon Recovery
Unit 1 Calder Close
Calder Park
Wakefield
WF4 3BA
England
H.O.D. DESIGNS: Appoints Liquidators from Mazars
------------------------------------------------
Simon David Chandler and Alistair Steven Wood of Mazars LLP were
appointed joint liquidators of H.O.D. Designs Ltd. on July 30,
2008, for the creditors' voluntary winding-up proceeding.
The company can be reached at:
H.O.D. Designs Ltd.
c/o Mazars LLP
Cartwright House
Tottle Road
Nottingham
NG2 1RT
England
MINERVA INTERNATIONAL: Taps Liquidators from BDO Stoy Hayward
-------------------------------------------------------------
David Harry Gilbert and Martha Hanora Thompson of BDO Stoy
Hayward LLP were appointed joint liquidators of Minerva
International Ltd. on July 1, 2008, for the creditors' voluntary
winding-up proceeding.
The company can be reached at:
Minerva International Ltd.
c/o BDO Stoy Hayward LLP
55 Baker Street
London
W1U 7EU
England
MOORGATE CLO: Fitch Affirms B Rating on EUR12.75 Million Notes
--------------------------------------------------------------
Fitch Ratings affirmed Moorgate CLO 2's EUR100,750,000 secured
credit-linked floating-rate secured notes due October 2021 under
the Eirles Two Limited's secured note program. The rating
action reflects Fitch's view on the credit risk of the rated
notes following the release of its new Corporate CDO rating
criteria.
Series 276 EUR17 million (ISIN XS0266230571): 'AAA'
Series 277 EUR20 million (ISIN XS0266229565): 'AA'
Series 278 EUR10 million (ISIN XS0266228831): 'A'
Series 279 EUR23.75 million (ISIN XS0266228245): 'BBB'
Series 280 EUR17.25 million (ISIN XS0266227510): 'BB'
Series 281 EUR12.75 million (ISIN XS0266231207): 'B'
As of the trustee report for July 31, 2008, the portfolio
contained loans from 72 obligors, with the largest exposure
accounting for approximately 2.65% of the outstanding portfolio
amount, and the three largest obligors accounting for 7.5% of
the outstanding portfolio amount. Fitch makes downward
adjustments for any names on Rating Watch Negative or Negative
Outlook 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 2.64% of
the assets are treated as 'CCC+' or below and the weighted
average portfolio quality is 'B'. One obligor is on RWN
(corresponding to 0.8% of the portfolio), and 10 obligors
(corresponding to 14.3% of the portfolio) are on Negative
Outlook. Fitch also notes the industry concentration of 36% in
the three largest sectors, made up of 13.8% in broadcasting and
media, 11.4% in food beverage and tobacco and 10.8% in
healthcare.
Current credit enhancement levels are deemed to be sufficient to
justify the current ratings of the affirmed tranches.
This transaction is a synthetic CDO of diversified corporate
leveraged loans and bonds. At closing, Eirles Two entered into
six series of CDS with Deutsche Bank AG, London Branch (DB) to
sell credit protection on tranches of the reference portfolio,
which had a EUR500 million target size by the end of the ramp-up
period in October 2007. The notes are backed by asset swaps,
corresponding to each series, under which DB pays the interest
due on the notes and the outstanding note principle balance upon
termination.
NATIONAL BANK: Fitch Affirms Individual Rating at 'C/D'
-------------------------------------------------------
Fitch Ratings changed the Outlooks on two Egyptian banks and one
UK bank to Stable from Positive. This action succeeds a similar
change in Outlook on Egypt's 'BB+' Long-term foreign currency
IDR on Aug. 18, 2008.
The three banks are Commercial International Bank, National Bank
of Egypt, and National Bank of Egypt UK, a wholly-owned UK
subsidiary of NBE, which were all previously on Positive Outlook
in line with the Egyptian sovereign. CIB's Issuer Default
Ratings and National ratings are based on its intrinsic
financial strength; its Long-term IDR is constrained by the
Egyptian Country Ceiling of 'BB+'. NBE's IDRs are driven by
moderate potential sovereign support based on its systemic
importance in Egypt, its 100% government ownership and close
relationship with the authorities. NBE UK's IDRs are also
driven by moderate potential support from NBE and ultimately,
from the Egyptian authorities based on its reputational
importance to both NBE and the Egyptian authorities.
The ratings are:
Commercial International Bank :
-- Long-term IDR: affirmed at 'BB+'; Outlook changed to Stable
from Positive
-- Short-term IDR: affirmed at 'B'
-- National Long-term rating: affirmed at 'AA(egy)' Outlook
Stable
-- National Short-term rating: affirmed at 'F1+(egy)'
-- Individual rating: affirmed at 'C'
-- Support rating: affirmed at '3'
-- Support Rating Floor: affirmed at 'BB'
National Bank of Egypt:
-- Long-term IDR: affirmed at 'BB+'; Outlook changed to Stable
from Positive
-- Short-term IDR: affirmed at 'B'
-- National Long-term rating: affirmed at 'AA(egy)' Outlook
Stable
-- National Short-term rating: affirmed at 'F1+(egy)'
-- Individual rating: affirmed at 'D/E'
-- Support rating: affirmed at '3'
-- Support Rating Floor: affirmed at 'BB+'
-- National Bank of Egypt UK (NBEUK):
-- Long-term IDR: affirmed at 'BB+'; Outlook changed to Stable
from Positive
-- Short-term IDR: affirmed at 'B'
-- Individual rating: affirmed at 'C/D'
-- Support rating: affirmed at '3'
PREMIER PLUMBING: Colin Nicholls Leads Liquidation Procedure
------------------------------------------------------------
Colin Nicholls of Tenon Recovery was appointed liquidator of
Premier Plumbing and Heating Spares Ltd. on July 31, 2008, for
the creditors' voluntary winding-up procedure.
The company can be reached at:
Premier Plumbing and Heating Spares Ltd.
Unit 2
Gregory's Bank Industrial Estate
Worcester
WR3 8AB
England
RHYTHM NEWMEDIA: Closes U.K. and India Offices
----------------------------------------------
Rhythm NewMedia has shut down U.K. and India offices citing the
the company's decision to build its recent successes in the U.S.
and focus on the market, Mobile Entertainment reports.
This was putting a positive spin on reporting by NMA that said
Rhythm has gone into receivership in the U.K.
Rhythm NewMedia provides ad funded mobile video services
including vSNAX Videos iPhone and iPod touch App, offering ad
serving, ad sales and content sourcing.
SOUTHERN MOTOR: Goes Into Administration
----------------------------------------
Southern Motor Boats has gone into administration after a
significant downturn in sales on the previous 12 months, Boating
Business reports.
Portland Business and Financial solutions was called in to
handle the administration process, which resulted to the loss of
12 jobs, the report relates.
Portland associate Mike Field told Boating Business a rescue
plan is being drawn up for the company.
"We're currently meeting with the company's banker, Barclays,
and the company's financiers in terms of the stocking, which is
the Bank of Scotland, to agree a strategy to deal with the stock
and other assets," Mr. Field was quoted by Boating Business as
saying. "There are 23 boats available for sale with discounts
to be had."
Southern Motor Boats -- http://www.southernmotorboats.co.uk/--
are distributors of Jeanneau motor boats on the south coast of
the U.K. It has offices on the River Hamble at Universal Marina
in the heart of the Solent, at Parkstone Bay Marina in Poole and
at Osprey Quay in Portland Marina by Weymouth.
TH!NK UK: Taps Liquidators from Baker Tilly Restructuring
---------------------------------------------------------
Mark Nicholas Ranson and Philip Edward Pierce of Baker Tilly
Restructuring and Recovery LLP were appointed joint liquidators
of Th!nk U.K. Ltd. on July 31, 2008, for the creditors'
voluntary winding-up proceeding.
The company can be reached at:
Th!nk U.K. Ltd.
c/o Baker Tilly Restructuring and Recovery LLP
2 Whitehall Quay
Leeds
LS1 4HG
England
VERMONT DEVELOPMENTS: Goes Into Administration
----------------------------------------------
Downing Corporate Finance has placed Vermont Developments into
administration after the company's GBP40 million residential
development in Salford was mothballed due to slowing house
sales, Sophie Griffiths of building.co.uk reports.
The report notes the move was unexpected as the parties were
thought to be in constructive talks to renegotiate the debt owed
to Downing.
Vermont, the report discloses, had been initially lent GBP4
million by Downing to part-finance the construction of the
Foundry Wharf development at Salford.
"This was a total surprise, and a very hasty and clumsy attempt
by Downing to extract value from Vermont," a source was quoted
by the report as saying.
Wilkins Kennedy has been appointed administrator of the
developer, the report adds.
Vermont Developments is based in Liverpool.
* HBJ Taps Chris Radford to Lead Nottingham Insolvency Team
-----------------------------------------------------------
The Nottingham office of national law firm HBJ Gateley Wareing
has announced the appointment of leading business recovery
specialist Chris Radford who joins as a partner to further
strengthen the firm's national corporate recovery practice and
lead the Nottingham team.
Mr. Radford joins from the Nottingham office of Eversheds where
he has led the insolvency team for the last 10 years. He is one
of the leading business recovery lawyers in the East Midlands
with around 20 years experience and acts for the major clearing
banks, asset based lenders and turnaround specialists, as well
as the "Big Four" and other accountancy firms. The Chambers
2007 Legal Directory lists him as a "leading individual" for his
work, which has involved advising on the region's most
significant restructuring and insolvency assignments of recent
years.
At HBJ Gateley Wareing, Mr. Radford will be responsible for
leading a team of insolvency specialists and for growing the
department in the Nottingham office. He will also support the
firm’s corporate recovery clients nationally as well as the
banking and corporate teams across the U.K.
The recruitment of Mr. Radford is the third recent high profile
hire for the firm in Nottingham (following Rob Metcalfe and Andy
Matthews) as it looks to grow its local offering.
"I am delighted to be joining HBJ Gateley Wareing in Nottingham
at this exciting time of growth," commenting on his appointment
Chris said. "The firm has already made its mark as one of the
most successful firms in the Midlands and I look forward to
being part of the team supporting our clients in the
increasingly difficult economic conditions."
"We are delighted to welcome Chris to the team," commenting on
the appointment, Nottingham corporate partner Austin Moore
added. "He is one of the foremost business recovery lawyers in
the country and he will give us real competitive advantage
locally in this area. Corporate restructuring and insolvency
expertise is in high demand as the economy changes and our
clients react to the more challenging business climate."
HBJ Gateley Wareing is a top 70, full service national law firm
with offices in England, Scotland and Dubai. HBJ adds value by
providing companies, public sector bodies and individuals with
legal advice that is commercial and practical, enabling the firm
to make well informed decisions. With over 80 partners and 280
fee earners HBJ has dedicated specialists in the areas of
corporate, banking, commercial property, social housing,
construction, employment, dispute resolution, shipping and
private client & financial services.
* BOOK REVIEW: Bailout
----------------------
Title: Bailout: An Insider's Account of Bank Failures and
Rescues
Author: Irvine H. Sprague
Publisher: Beard Books
Hardcover: 312 pages
List Price: US$34.95
Own your personal copy at
http://amazon.com/exec/obidos/ASIN/1587980177/internetbankrupt
During the high interest times of the 1970s and 1980s, banks and
savings and loan associations were under heavy financial
pressure. Hundreds of them failed.
The Home Loan Bank Board permitted the savings and loan
associations to treat goodwill as capital, thereby allowing them
to remain open and to build up enormous losses that eventually
cost the taxpayers billions of dollars.
The Federal Deposit Insurance Corporation took a different
approach. It closed the banks or sold them, all at no cost to
taxpayers.
Bailout is the engrossing story of how the FDIC handled four of
these failures.
*********
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 * * *