/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/081006.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 Monday, October 6, 2008, Vol. 9, No. 198 Headlines A U S T R I A MILLA OEG: Claims Registration Period Ends October 23 NAUTICSPORT LLC: Claims Registration Period Ends October 27 SOTAL SPEISEEISMASCHINEN: Claims Registration Ends October 28 B U L G A R I A PETROL AD: Fitch Puts 'B-' Ratings Under Negative Watch C Z E C H R E P U B L I C BOHEMIA CRYSTALEX: Prague Court Declares Moratorium on Assets F R A N C E CHESAPEAKE CORPORATION: Joachim Dziallas Discloses 13.5% Stake WORLDSPACE INC: Forbearance Agreement Expired September 25 G E R M A N Y BIOSUN KOELN: Claims Registration Period Ends October 8 BROETAG BROEKERS: Claims Registration Period Ends October 8 EICHELE TIEFBAU: Claims Registration Period Ends October 13 DS-BAU GMBH: Claims Registration Period Ends October 10 DVNS-TEC SYSTEMHAUS: Claims Registration Period Ends Oct. 10 F & N SECURITY: Claims Registration Period Ends October 13 FAK FINANZ: Claims Registration Period Ends October 10 FERRO METALLBAU: Claims Registration Period Ends October 13 FHS FAHRZEUGHANDELSGESELLSCHAFT: Claims Filing Ends October 13 FRESENIUS SE: Moody's Affirms Corporate Family Rating at Ba1 HLL HAMBURG: Claims Registration Period Ends October 8 HERZOG BAUSERVICE: Claims Registration Period Ends October 8 HOLLAND MARKT: Claims Registration Period Ends October 13 HOLZPARTNER GMBH: Claims Registration Period Ends October 13 HOTAG GMBH: Claims Registration Period Ends October 8 HYPO REAL: Secures Another EUR15 Billion Lifeline KFZ-DIENSTLEISTUNGS GMBH: Claims Registration Ends October 8 MEDICALL FLIGHT: Claims Registration Period Ends Oct. 10 PFL FINE: Claims Registration Period Ends October 10 SLP SOLUTIONS: Claims Registration Period Ends October 9 TOP MUSIC: Files for Creditor Protection; 500 Jobs at Risk G R E E C E MARFIN INVESTMENT: Board Proposes EUR5Bln Share Capital Increase MARFIN INVESTMENT: S&P Shifts Outlook; Affirms BB/B Credit Ratings I C E L A N D GLITNIR BANKI: Failure to Get Funding Cues Government Bailout GLITNIR BANKI: Fitch Cuts Individual Rating to 'F' I R E L A N D AER LINGUS: To Carry Out Cost Reduction Program I T A L Y ALITALIA SPA: Ryanair Says State Bailout Distorts Competition PARMALAT SPA: Prelim. Injunction Hearing Moved to December 16 K A Z A K H S T A N ILEK-SECURITY LLP: Creditors Must File Claims by November 15 OIL SNUB: Claims Deadline Slated for November 15 PROM STROY-A: Claims Filing Period Ends November 15 KAZTRANSOIL: S&P Affirms Long-Term Corporate Credit Rating at BB+ RICH OIL: Creditors' Claims Due on November 15 SK-STROY LLP: Claims Registration Ends November 15 STM-SERVICE LLP: Creditors Must File Claims by November 15 STROY COMPLECT-K: Claims Deadline Slated for November 15 TERNO-STROY LLP: Claims Filing Period Ends November 15 TRANSMERIDIAN EXPLORATION: Receives Delisting Notice from AMEX TRANSMERIDIAN EXPLORATION: Amends Exchange Offer Terms TRANSMERIDIAN EXPLORATION: Amends Investment Agreement with UEG ZARTEK LLP: Creditors' Claims Due on November 15 ZEVS & K: Claims Registration Ends November 15 K Y R G Y Z S T A N BONA FIDE LLC: Creditors Must File Claims by November 12 L U X E M B O U R G LEHMAN BROTHERS: Europe's Deminor Files Suit to Recoup Losses MILLICOM INT'L: Completes US$510 Million Acquisition of Amnet N E T H E R L A N D S NXP BV: S&P Affirms Long-Term Corporate Credit Rating at 'B-' R U S S I A CHELYABINSK TUBE: Moody's Withdraws B1 Corporate Family Rating OGK-5 JSC: Posts RUR767 Million Net Profit for Fist Half 2008 TNK-BP INT'L: Inks Long Term Cooperation Agreements with Integra * Fitch Revises Six Russian Banks' Outlook to Positive from Stable * Fitch: Russian Devt Cos. May Among Worst-Hit by Poor Financing S P A I N * SPAIN: Debt Default Soars; Could Drain Banks' Bad Debt Provision * S&P Sees Rating Downgrades From Spain's Shortfall in Tax Revenue S W E D E N FORD MOTOR: To Sell US$500 Million Worth of Shares FORD MOTOR: Registers 35MM Shares for Hourly Employee Savings Plan FORD MOTOR: Registers 50MM Shares for Salaried Workers Stock Plan S W I T Z E R L A N D MATO ART-DESIGN: Creditors Must File Proofs of Claim by Oct. 23 MODE ZAHN: Deadline to File Proofs of Claim Set Oct. 31 POLCOPY LLC: Creditors Have Until Oct. 25 to File Claims RINGEISEN & BELLO: Proofs of Claim Filing Deadline is Oct. 31 RIVA CONSULT: Creditors' Proofs of Claim Due by Oct. 21 SOLTEGA JSC: Oct. 31 Set as Deadline to File Claims SWISSWIN SERVICES: Creditors Must File Claims by Oct. 24 TIAG TRANSWORLD: Deadline to File Proofs of Claim Set Oct. 31 UBS AG: Restructures Investment Banking Arm; Cuts 2,000 Jobs UBS AG: S&P Comments on Third Quarter Earnings Guidance ZURICH FINANCIAL: US$615 Mil. Losses Tied to Troubled U.S. Cos U K R A I N E AGROYUMEKS CJSC: Creditors Must File Claims by October 9 DERGACHI TURBOCOMPRESSORS: Creditors Must File Claims by Oct. 9 KUYBISHEVO BUTTER: Creditors Must File Claims by October 9 PROMIN LLC: Creditors Must File Claims by October 9 STRUSOV-AVTO 1962: Creditors Must File Claims by October 9 S.T. CHERKASSY: Creditors Must File Claims by October 9 TROSTIANETS REGIONAL: Creditors Must File Claims by October 9 ZMV COMPANY: Creditors Must File Claims by October 9 U N I T E D K I N G D O M BRITISH AIRWAYS: September 2008 Traffic Down 4.8 Percent ENTERPRISE INNS: Moody's Downgrades CFR to Ba2; Outlook Negative EUROSAIL 2006-4: Fitch Puts 'BB' Rating Under Negative Watch FORTRESS WAREHOUSING: Taps Liquidators from Smith & Williamson GUESTINVEST GROUP: Goes Into Administration HILL STATION: To File for Administration on Lack of Funding LODESTAR SOUTHWEST: Claims Filing Period Ends December 22 OAKDENE: In Breach of Covenants; UHY Raises Going Concern Doubt QUEBECOR WORLD: Has Until January 31 to File Chapter 11 Plan TAYLOR WIMPEY: Remain In Talks Over Revising Covenant Structure * HSBC Holdings Mulls Reduction of 1,100 Banking and Markets Jobs * Mace & Jones Warns Directors Over Market Responsibilities * S&P Sees Gov't Support as Rating Factor for European Banks * S&P Looks Into the Impact of Bailouts on Sovereign Ratings * European Firms Face Tight Liquidity & Tougher Economy, S&P Says * Moody's Says Recent Market Turmoil Slow Global Economic Growth * ECB Likely to Cut Interest Rates by November * Blackstone Predicts European Bankruptcies to Surpass 1990s * BOND PRICING: For the Week Sept. 29 to Oct. 3, 2008 ********* ============= A U S T R I A ============= MILLA OEG: Claims Registration Period Ends October 23 ----------------------------------------------------- Creditors owed money by OEG Milla have until Oct. 23, 2008, to file written proofs of claim to the court-appointed estate administrator: Dr. Christof Stapf Esslinggasse 7 1010 Wien Austria Tel: 01/90 333 Fax: 01/90 333 44 E-mail: wien@snwlaw.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on Nov. 6, 2008, for the examination of claims at: The Land Court of Korneuburg Room 204 Second Floor Korneuburg Austria Headquartered in Bruck an der Leitha, Austria, the Debtor declared bankruptcy on Sept. 10, 2008, (Bankr. Case No. 36 S 103/08a). Michael Neuhauser represents Dr. Stapf in the bankruptcy proceedings. NAUTICSPORT LLC: Claims Registration Period Ends October 27 ----------------------------------------------------------- Creditors owed money by LLC Nauticsport have until Oct. 27, 2008, to file written proofs of claim to the court-appointed estate administrator: Dr. Johannes Jaksch Landstrasser Hauptstrasse 1/2 1030 Wien Austria Tel: 7134433 Fax: 7131033 E-mail: kanzlei@jrs.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on Nov. 10, 2008, for the examination of claims at: The Trade Court of Vienna Room 2101 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Sept. 10, 2008, (Bankr. Case No. 38 S 43/08p). Dr. Stephan Riel represents Dr. Jaksch in the bankruptcy proceedings. SOTAL SPEISEEISMASCHINEN: Claims Registration Ends October 28 ------------------------------------------------------------- Creditors owed money by LLC Sotal Speiseeismaschinen have until Oct. 28, 2008, to file written proofs of claim to the court- appointed estate administrator: Dr. Guenther Hoedl Schulerstrasse 18 1010 Vienna Tel: 513 16 55 Fax: 513 16 55 33 E-mail: Hoedl@anwaltsteam.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 12:00 p.m. on Nov. 11, 2008, for the examination of claims at: The Trade Court of Vienna Room 1701 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Sept. 10, 2008, (Bankr. Case No. 6 S 112/08z). Dr. Klemens Dallinger represents Dr. Hoedl in the bankruptcy proceedings. =============== B U L G A R I A =============== PETROL AD: Fitch Puts 'B-' Ratings Under Negative Watch ------------------------------------------------------- Fitch Ratings has placed Bulgaria-based fuel distributor Petrol AD's 'B-' Issuer Default Rating and 'B-' senior unsecured rating for its EUR100 million notes due in 2011 on Rating Watch Negative. The rating action is driven by concerns over a sizable share repurchase undertaken by the company in Q208, which was not in accordance with the planned use of proceeds from the asset disposal to Lukoil Bulgaria, and concerns that the management is not acting consistently with its strategy as laid out to Fitch earlier this year. The share repurchase of BGN90.7 immediately benefits shareholders to the detriment of bondholders. Fitch regards this as a quasi- dividend payment, although the company says it is a temporary investment of disposal proceeds. The sizable losses on derivative transactions in Q208, as well as increased loans granted to related parties outside the Petrol AD group of BGN20.3 million, are an additional cause for concern and are also not in accordance with planned spending of disposal proceeds. The Rating Watch Negative also reflects the fact that Fitch is still awaiting detailed responses to a series of questions posed to the company post the Q208 results announcement in early September. The agency anticipates that it will receive additional information from the company in the next two weeks, in particular information relating to the volume replacement process for oil products, following which it may resolve the RWN. Although liquidity has been negatively affected by the share repurchase, losses on derivatives transactions and working capital changes, Fitch assesses Petrol AD's cash position of BGN89.4 million at end-June 2008 as sufficient to repay short-term debt, including the BGN15 million bonds maturing in November 2008. However, further cash spending and other shareholder-friendly action could lead to a deterioration in the company's liquidity position. The change of the Outlook to Stable from Negative in July 2008 reflected Fitch's assumption that the lost volume and earnings from the Lukoil transaction would be substituted by acquisitions made on the Bulgarian market, as well as by investments in Petrol AD's network. In Fitch's opinion the cash out-flow seen in Q208 increases reinvestment risk related to the replacement of oil products volume, and level of EBITDA following the asset disposal to Lukoil Bulgaria. Fitch continues to be concerned about the company's corporate governance especially with regard to sizable related-party transactions, including inter-company loans, debt guarantees and purchasing of company shares by Petrol AD's subsidiaries. ========================== C Z E C H R E P U B L I C ========================== BOHEMIA CRYSTALEX: Prague Court Declares Moratorium on Assets ------------------------------------------------------------- The City Court in Prague has declared a three-month moratorium on the assets of Czech glass maker Bohemia Crystalex Trading, CTK reports. BCT owners, the report relates, sought creditor protection for parent company BCT and its units Crystalex Novy Bor and Sklarny Kavalier Sazava. The court has appointed receivers for both the subsidiaries. According the report, the moratorium, which can be extended by another 30 days, gives the companies room to overcome bankruptcy and arrive at an agreement with creditors. It also enables them to maintain production. Meanwhile, BCT's two other plants, Sklo Bohemia Svetla nad Sazavou and Sklarny Bohemia Podebrady have ceased operating, the report discloses. Citibank Europe, a creditor of Sklo Bohemia and Sklarny Bohemia, has already asked a court to appoint interim receivers for the companies and issue an injunction that would prevent owners from handling the firms' assets, the report notes. As reported in the Troubled Company Reporter-Europe, the court, on Sept. 22, launched insolvency proceedings against BCT at the request of the company's management. The management of BCT remains in talks with creditor banks to discuss the possibilities of restructuring and solve the lack of operating capital the company is facing. Harrachov glassworks owner Frantisek Novosad said the financial crisis in the US, which is the chief market for Czech glassmakers, has led BCT into an "unsolvable situation, when it lacks operating capital". Mr. Novosad added that other factors that contributed to the group's problems include the soaring prices of gas and electricity as well as loans. The group incurred debts of nearly CZK4 billion. In 2007, BCT, which employs, 5,000 staff, reported sales of about CZK5 billion. Its majority shareholders are entrepreneurs Radovan Kvet and Jan Soucek. The state owns indirectly 49 percent of shares, while CSOB holds a 1% stake. =========== F R A N C E =========== CHESAPEAKE CORPORATION: Joachim Dziallas Discloses 13.5% Stake -------------------------------------------------------------- Joachim W. Dziallas and Edelmann GmbH & Co. KG disclosed in a Securities and Exchange Commission filing that they may be deemed to beneficially own 2,775,869 shares of Chesapeake Corporation's common stock, representing 13.5% of the 20,560,782 shares issued and outstanding as of Aug. 1, 2008. Headquartered in Richmond, Virginia, Chesapeake Corporation (NYSE: CSK) -- http://www.cskcorp.com/-- is a supplier of specialty paperboard packaging products in Europe and an international supplier of plastic packaging products to niche end-use markets. Chesapeake has 47 locations in France, Ireland, United Kingdom, North America, China, HongKong, among others and employs approximately 5,500 people. * * * As disclosed in the Troubled Company Reporter on Aug. 11, 2008, Moody's Investors Service downgraded Chesapeake Corporation's Corporate Family Rating to Caa2 from B2 and its Probability of Default Rating to Caa2 from B3. Concurrently, Moody's downgraded the company's senior unsecured revenue bonds to Caa3 from B3 and senior subordinated notes to Caa3 from Caa1. All credit ratings remain on review for possible downgrade. Standard & Poor's Ratings Services lowered its ratings on Chesapeake Corp. The corporate credit rating was lowered to 'CCC+' from 'B'. The ratings remain on CreditWatch, where they were placed on July 2, 2008, with negative implications. WORLDSPACE INC: Forbearance Agreement Expired September 25 ---------------------------------------------------------- WorldSpace Inc. disclosed in a Securities and Exchange Commission filing that the forbearance agreements between the Company and each of the four holders of its amended and restated secured notes and second amended and restated convertible notes expired on Sept. 25, 2008. The Holders have not entered into a further forbearance agreement with the Company, and, although the Company and the Holders are continuing discussions, there can be no assurance that the Holders will continue to defer the exercise of remedies under their respective financing agreements with the Company. The Company is continuing to seek new financing, but there can be no assurance that the Company will succeed in securing commitments for new financing, or that it will do so prior to the Holders seeking to exercise their remedies under their financing agreements. On Sept. 19, 2008, the company reached an agreement in principle with each of the four holders of the Company's amended and restated secured notes and second amended and restated convertible notes to defer until Sept. 25, 2008, the Company's obligation to pay US$19.97 million in principal amount of the Bridge Loan Notes, plus accrued but unpaid interest due on the Bridge Loan Notes, which was payable on Sept. 15, 2008. About WorldSpace Inc. Based in the Washington, DC metropolitan area, WorldSpace Inc. (Nasdaq: WRSP) -- http://www.worldspace.com/-- is a media and entertainment company that offers a satellite radio to consumers in more than 130 countries with five billion people, driving 300 million cars. It operates WORLDSPACE Satellite Radio, which delivers the latest tunes, trends and information from around the world and around the corner. WORLDSPACE offers a combination of local programming, original WORLDSPACE content and content from brands around the globe including the BBC, CNN International, Virgin Radio UK, NDTV and RFI. WORLDSPACE's satellites cover two-thirds of the earth's population with six beams. WorldSpace has offices in Australia and France. The company's balance sheet at March 31, 2008, showed total assets of US$323.7 million and total liabilities of US$2.1 billion and minority interest of US$608,000, resulting in total shareholders' deficit of US$1.7 billion. Going Concern Doubt As reported in the The Troubled company Reporter on May 1, 2008, Grant Thornton LLP in McLean, Virginia, raised substantial doubt about WorldSpace Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Dec. 31, 2007, and 2006. The auditing firm pointed to the company's net loss, negative working capital, and shareholders' deficit. Grant Thornton also cited that the company's management does not believe its cash on hand and cash available is sufficient to meet its operating needs during the coming year. ============= G E R M A N Y ============= BIOSUN KOELN: Claims Registration Period Ends October 8 ------------------------------------------------------- Creditors of BioSun Koeln Betriebsgesellschaft mbH have until Oct. 8, 2008, to register their claims with court-appointed insolvency manager Rainer Michael Baehr. Creditors and other interested parties are encouraged to attend the meeting at 2:15 p.m. on Nov. 5, 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 Hannover Hall 226 Second Upper Floor Service Bldg. Hamburger Allee 26 30161 Hannover 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: Rainer Michael Baehr Prinzenstr. 14 30159 Hannover Germany Tel: 0511 8503058-0 Fax: 0511 8503058-8 The District Court of Hannover opened bankruptcy proceedings against BioSun Koeln Betriebsgesellschaft mbH on Sept. 11, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: BioSun Koeln Betriebsgesellschaft mbH Attn: Gert Lang-Rose, Manager Hindenburgstr. 28/29 30175 Hannover Germany BROETAG BROEKERS: Claims Registration Period Ends October 8 ----------------------------------------------------------- Creditors of Broetag Broekers Tankanlagen GmbH & Co. KG have until Oct. 8, 2008, to register their claims with court-appointed insolvency manager Andreas Sontopski. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on Oct. 29, 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 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: Andreas Sontopski Gnoiener Platz 10 48493 Wettringen Germany Tel: 02557/9384-0 Fax: +492557938450 The District Court of Muenster opened bankruptcy proceedings against Broetag Broekers Tankanlagen GmbH & Co. KG on Aug. 7, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Broetag Broekers Tankanlagen GmbH & Co. KG Klosterstrasse 4 48599 Gronau Germany EICHELE TIEFBAU: Claims Registration Period Ends October 13 ----------------------------------------------------------- Creditors of Eichele Tiefbau GmbH have until Oct. 13, 2008, to register their claims with court-appointed insolvency manager Joerg Riedemann. Creditors and other interested parties are encouraged to attend the meeting at 11:25 a.m. on Nov. 10, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Dessau-Rosslau Hall 121 Willy Lohmann Str. 33 Dessau Rosslau 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: Joerg Riedemann Muehlweg 47 06114 Halle Germany Tel: 0345/293900 Fax: 0345/2939029 The District Court of Dessau-Rosslau opened bankruptcy proceedings against Eichele Tiefbau GmbH on Sept. 8, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Eichele Tiefbau GmbH Puelziger Strasse 5 06869 Cobbelsdorf Germany DS-BAU GMBH: Claims Registration Period Ends October 10 ------------------------------------------------------- Creditors of DS-Bau GmbH have until Oct. 10, 2008, to register their claims with court-appointed insolvency manager Ottmar Hermann. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Oct. 28, 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 Hanau Room E03 Engelhardstrasse 21 63450 Hanau 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: Ottmar Hermann Bleichstrasse 2-4 60313 Frankfurt/Main Germany Tel: 069/913092 -0 Fax: 069/91309230 The District Court of Hanau opened bankruptcy proceedings against DS-Bau GmbH on Sept. 19, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: DS-Bau GmbH Attn: Anton Strobelberger, Manager Otto-Hahn-Str. 21 63456 Hanau Germany DVNS-TEC SYSTEMHAUS: Claims Registration Period Ends Oct. 10 ------------------------------------------------------------ Creditors of DVNS-tec Systemhaus GmbH have until Oct. 10, 2008, to register their claims with court-appointed insolvency manager Dr. Martin Moderegger. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Nov. 4, 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 Kassel Hall 234 Friedrichsstrasse 32-34 34117 Kassel 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. Martin Moderegger Theaterstrasse 6 34117 Kassel Germany Tel: 0561/7668335 Fax: 0561/7668358 E-mail: fulda@dr-moderegger.de Web site: www.dr-moderegger.de The District Court of Kassel opened bankruptcy proceedings against DVNS-tec Systemhaus GmbH on Aug. 26, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: DVNS-tec Systemhaus GmbH Attn: Steffen Westhelle, Manager Teichstr. 14 34130 Kassel Germany F & N SECURITY: Claims Registration Period Ends October 13 ---------------------------------------------------------- Creditors of F & N Security Service GmbH have until Oct. 13, 2008, to register their claims with court-appointed insolvency manager Ulrich Luppe. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on Nov. 10, 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 (Saale) Hall 1.043 Justizzentrum Thueringer Strasse 16 06112 Halle (Saale) 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: Ulrich Luppe Hansering 9/10 06108 Halle Germany Tel: 0345/614070 Fax: 0345/6140710. The District Court of Halle (Saale) opened bankruptcy proceedings against F & N Security Service GmbH on Aug. 15, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: F & N Security Service GmbH Str. des Friedens 17 06268 Obhausen Germany FAK FINANZ: Claims Registration Period Ends October 10 ------------------------------------------------------ Creditors of fak finanz und assekuranz kontor GmbH AG have until Oct. 10, 2008, to register their claims with court-appointed insolvency manager Christian Krueger. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on Oct. 28, 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 Kiel Hall 17 Deliusstr. 22 Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Christian Krueger Westring 455 24118 Kiel Germany Tel: 0431/990810 Fax: 0431/99081100 The District Court of Kiel opened bankruptcy proceedings against fak finanz und assekuranz kontor GmbH AG on Sept. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: fak finanz und assekuranz kontor GmbH AG Attn: Sven Langloh, Manager Melsdorfer Strasse 67 24109 Kiel Germany FERRO METALLBAU: Claims Registration Period Ends October 13 ----------------------------------------------------------- Creditors of Ferro Metallbau GmbH have until Oct. 13, 2008, to register their claims with court-appointed insolvency manager Dr. Dirk Wittkowski. Creditors and other interested parties are encouraged to attend the meeting at 9:20 a.m. on Nov. 28, 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 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 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. Dirk Wittkowski Kirchblick 11 14129 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against Ferro Metallbau GmbH on Sept. 3, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Ferro Metallbau GmbH Pawesiner Weg 20 13581 Berlin Germany FHS FAHRZEUGHANDELSGESELLSCHAFT: Claims Filing Ends October 13 -------------------------------------------------------------- Creditors of FHS Fahrzeughandelsgesellschaft mbH Magdeburg have until Oct. 13, 2008, to register their claims with court-appointed insolvency manager Karina Schwarz. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Nov. 12, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Magdeburg Hall D Insolvency Department Liebknechtstrasse 65-91 39110 Magdeburg 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: Karina Schwarz Klausenerstr. 24 39112 Magdeburg Germany Tel: 0391/6286260 Fax: 0391/6286266 E-mail: magdeburg@Rechtsanwaelte-Schwarz.de The District Court of Magdeburg opened bankruptcy proceedings against FHS Fahrzeughandelsgesellschaft mbH Magdeburg on Aug. 18, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: FHS Fahrzeughandelsgesellschaft mbH Magdeburg Grosse Diesdorfer Str. 163 39110 Magdeburg Germany FRESENIUS SE: Moody's Affirms Corporate Family Rating at Ba1 ------------------------------------------------------------ Moody's Investors Service has changed the provisional rating on Fresenius SE's secured credit facility from (P)Baa2 (LGD 2, 20%) to (P)Baa3 (LGD 2, 27%) considering the company's announcement that the secured credit facility was increased by US$500 million to US$2.95 billion. The secured credit facility is a central component to fund the company's recent acquisition of APP Pharmaceuticals, Inc, which was closed on September 10, 2008. At the same time, Moody's affirmed Fresenius's Ba1 Corporate Family Rating and the Ba1 Probability of Default Rating with negative outlooks. The revised provisional (P)Baa3 rating (LGD 2, 27%) assigned to the secured credit facility is one notch below the provisional (P)Baa2 rating (LGD 2, 20%) assigned on 28 August 2008. The lower rating results from the application of Moody's LGD methodology and reflects the increased proportion of secured debt in the company's capital structure which results in a weaker asset coverage of the secured debt in a default scenario than previously expected. The proceeds of the US$500 million increase will be applied to partially repay the US$1.3 billion extendable bridge credit facility. Upon a conclusive review of the final versions of all the documents, Moody's will endeavor to assign a definitive rating. The last rating action on Fresenius was implemented on August 28, 2008, when Moody's confirmed the Ba1 CFR and Ba1 PDR and changed the outlooks to negative from stable. This action followed a review for a possible downgrade prompted by Fresenius's announcement to acquire APP Pharmaceuticals for an enterprise value of US$4.6 billion. The acquisition was funded with proceeds from a capital increase at the level of Fresenius SE of around EUR290 million (US$450 million), proceeds from a EUR554 million Mandatory Exchangeable bond (rated Ba2) and a US$1.3 billion bridge credit facility (rated Ba1 (LGD 4, 53%)) which will be reduced by US$500 million with the proceeds of the increased US$2.95 billion secured credit facility, rated Baa3 (LGD 2, 27%). Downgrades: Issuer: APP LLC -- Senior Secured Bank Credit Facility, Downgraded to (P)Baa3, LGD assessment changed to LGD 2, 27% from LGD 2, 20% Issuer: Fresenius Finance I, S.A. -- Senior Secured Bank Credit Facility, Downgraded to (P)Baa3, LGD assessment changed to LGD 2, 27% from LGD 2, 20% Issuer: Fresenius US Finance I, Inc. -- Senior Secured Bank Credit Facility, Downgraded to (P)Baa3, LGD assessment changed to LGD 2, 27% from LGD 2, 20% Issuer: Fresenius Finance (Jersey) Ltd -- Senior Unsecured Regular Bond/Debenture, LGD assessment changed to LGD 5, 87% from LGD 5, 85% Assignments: Issuer: Fresenius US Finance II, Inc. -- Senior Unsecured Bridge Credit Facility, Assigned definitive Ba1 Headquartered in Bad Homburg, Germany, Fresenius is a global health care company with products and services for dialysis (through Fresenius Medical Care); healthcare services (Helios) and facilities management (Vamed); and nutrition and infusion therapies (Fresenius Kabi AG). For the fiscal year ended Dec. 31, 2007, Fresenius generated consolidated sales of EUR11.4 billion. HLL HAMBURG: Claims Registration Period Ends October 8 ------------------------------------------------------ Creditors of HLL Hamburg Language Lounge Verwaltungsgesellschaft mbH have until Oct. 8, 2008, to register their claims with court- appointed insolvency manager Dr. Klaus Pannen. Creditors and other interested parties are encouraged to attend the meeting at 9:25 a.m. on Nov. 5, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hamburg Hall B 405 Fourth Floor Annex Civil Justice Bldg. Sievkingplatz 1 20355 Hamburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Klaus Pannen Neuer Wall 25/ Schleusenbruecke 1 20354 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against HLL Hamburg Language Lounge Verwaltungsgesellschaft mbH on Aug. 26, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: HLL Hamburg Language Lounge Verwaltungsgesellschaft mbH Attn: Simon Ashton und Alisa Macholl Edwards, Manager Kirchenweg 6 20099 Hamburg Germany HERZOG BAUSERVICE: Claims Registration Period Ends October 8 ------------------------------------------------------------ Creditors of Herzog Bauservice GmbH have until Oct. 8, 2008, to register their claims with court-appointed insolvency manager Niklas Luetcke. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Oct. 22, 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 Friedberg Hall 20a Homburger Road 18 61169 Friedberg (Hessen) 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: Niklas Luetcke Barckhausstrasse 12-16 60325 Frankfurt Germany Tel: (069) 717 01 -300 Fax: (069) 717 01 40 410 E-mail: niklas.luetcke@cms-hs.com Web site: www.cms-hs.com The District Court of Friedberg opened bankruptcy proceedings against Herzog Bauservice GmbH on Sept. 2, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Herzog Bauservice GmbH Attn: Jasmin Hoffmann, Manager Elsa-Brandstroem-Strasse 3 35510 Butzbach Germany HOLLAND MARKT: Claims Registration Period Ends October 13 --------------------------------------------------------- Creditors of Holland Markt Heemskerk GmbH & Co. KG have until Oct. 13, 2008, to register their claims with court-appointed insolvency manager Klaus-Christof Ehrlicher. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on Nov. 3, 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 Coburg Meeting Hall K First Stock Coburg 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: Klaus-Christof Ehrlicher Rosenauer Str. 22 96450 Coburg Germany Tel: 09561/80340 Fax: 09561/803434 The District Court of Coburg opened bankruptcy proceedings against Holland Markt Heemskerk GmbH & Co. KG on Sept. 12, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Holland Markt Heemskerk GmbH & Co. KG Industriestr. 3 96487 Doerfles-Esbach Germany HOLZPARTNER GMBH: Claims Registration Period Ends October 13 ------------------------------------------------------------ Creditors of Holzpartner GmbH have until Oct. 13, 2008, to register their claims with court-appointed insolvency manager Dr. Eckard Pongratz. Creditors and other interested parties are encouraged to attend the meeting at 2:30 p.m. on Nov. 11, 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 Mosbach Meeting Hall 12 Lohrtalweg 2 74821 Mosbach 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. Eckard Pongratz Steinbachtal 2b 97082 Wuerzburg Germany Tel: 0931/991560 The District Court of Mosbach opened bankruptcy proceedings against Holzpartner GmbH on Sept. 3, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Holzpartner GmbH Attn: Felix Teichmann, Manager Spessartstr. 2 97877 Wertheim Germany HOTAG GMBH: Claims Registration Period Ends October 8 ----------------------------------------------------- Creditors of HOTAG GmbH have until Oct. 8, 2008, to register their claims with court-appointed insolvency manager Sebastian Laboga. Creditors and other interested parties are encouraged to attend the meeting at 9:40 a.m. on Nov. 5, 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 Potsdam Hall 24 Justice Center Jagerallee 10 - 12 14469 Potsdam 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: Sebastian Laboga Einemstrasse 24 10785 Berlin Germany The District Court of Potsdam opened bankruptcy proceedings against HOTAG GmbH on Aug. 13, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: HOTAG GmbH Lindenstrasse 38 A 15757 Halbe Germany Attn: Ugur Karatas, Manager Zuericher Strasse 2 71034 Boeblingen Germany HYPO REAL: Secures Another EUR15 Billion Lifeline ------------------------------------------------- The Management Board of Hypo Real Estate Holding AG has welcomed the agreement between the German Government, the German Central Bank, the Financial Regulator BaFin and senior representatives of the German banking and insurance sector regarding credit lines for Hypo Real Estate Group. "We are very grateful for the support of all the parties. This solution ensures that Hypo Real Estate Group is stabilized, will have access to sufficient liquidity even in an ongoing financial crisis, and can continue to operate," Georg Funke, CEO, stated on Monday morning in Munich. The Ministry for Finance stated earlier that the finance sector will grant Hypo Real Estate Group an additional secured credit line of EUR15 billion in addition to the EUR35 billion already offered jointly by the German Government and finance sector. This increase became necessary as a result of the intensification of the financial crisis during the past week. The Government is providing a guarantee of up to EUR35 billion. About Hypo Real Estate Group Following the acquisition of DEPFA Bank plc in October 2007, Munich, Germany-based Hypo Real Estate Group �- http://www.hyporealestate.com/-- has evolved into one of the leading international financial services providers for commercial real estate lending, public finance and infrastructure finance. The Group, with total assets of EUR395 billion, 1,900 employees and offices across Europe, the Americas and Asia, consists of the non-operational listed Hypo Real Estate Holding AG and operational entities. Hypo Real Estate Bank International AG and Hypo Real Estate Bank AG conduct the international real estate financing business. DEPFA and DEPFA Deutsche Pfandbriefbank AG conduct the public sector and infrastructure finance business. KFZ-DIENSTLEISTUNGS GMBH: Claims Registration Ends October 8 ------------------------------------------------------------ Creditors of Kfz-Dienstleistungs GmbH Baetzel have until Oct. 8, 2008, to register their claims with court-appointed insolvency manager Dr. Jan Roth. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on Nov. 19, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Darmstadt Hall 4.310 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: Dr. Jan Roth Pfingstweidstrasse 3 60316 Frankfurt Germany Tel: 069-2097390 Fax: 069-20973929 The District Court of Darmstadt opened bankruptcy proceedings against Kfz-Dienstleistungs GmbH Baetzel on Aug. 29, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Kfz-Dienstleistungs GmbH Baetzel Attn: Lothar Baetzel, Manager Carlo-Schmid-Strasse 1 64653 Lorsch Germany MEDICALL FLIGHT: Claims Registration Period Ends Oct. 10 -------------------------------------------------------- Creditors of Medicall Flight Ambulance GmbH have until Oct. 10, 2008, to register their claims with court-appointed insolvency manager Josef Nachmann. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 20, 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: Josef Nachmann Theatinerstr. 32 80333 Munich Germany Tel: 089/24217737 Fax: 089/24217738 The District Court of Munich opened bankruptcy proceedings against Medicall Flight Ambulance GmbH on Aug. 11, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Medicall Flight Ambulance GmbH Attn: Gertraud Rohowsky, Manager Euckenstrasse 27 81369 Munich Germany PFL FINE: Claims Registration Period Ends October 10 ---------------------------------------------------- Creditors of PFL Fine Chemicals GmbH have until Oct. 10, 2008, to register their claims with court-appointed insolvency manager Norbert Weber. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on Nov. 11, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cologne Meeting Hall 142 First Floor Luxemburger Str. 101 50939 Cologne Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Norbert Weber Richmodstr. 6 50667 Cologne Germany The District Court of Cologne opened bankruptcy proceedings against PFL Fine Chemicals GmbH on Aug. 11, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: PFL Fine Chemicals GmbH Kaiser-Wilhelm-Allee Geb, Q18 6. OG 51368 Leverkusen Germany SLP SOLUTIONS: Claims Registration Period Ends October 9 -------------------------------------------------------- Creditors of SLP Solutions GmbH have until Oct. 9, 2008, to register their claims with court-appointed insolvency manager Dr. Winfried Andres. Creditors and other interested parties are encouraged to attend the meeting at 11:15 a.m. on Oct. 27, 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 Essen Room 101 First Floor Zweigertstr. 52 45130 Essen 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. Winfried Andres Heinrich-Held-Str. 16 45133 Essen Germany Tel: 0201 330550 The District Court of Essen opened bankruptcy proceedings against SLP Solutions GmbH on Sept. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: SLP Solutions GmbH Attn: Ralf Coenen, Manager Elbestr. 16 45768 Marl Germany TOP MUSIC: Files for Creditor Protection; 500 Jobs at Risk ---------------------------------------------------------- TMI Top Music International Vertriebs GmbH has filed for creditor protection with the Local Court of Heidelberg, putting 500 jobs at risk, Wolfgang Spahr of Billboard.biz reports. Christopher Seagon has been appointed insolvency administrator. The insolvency administrator, the report discloses, will attempt to find new investors for the company, which generates annual sales of over EUR280 million (US$386 million). Citing industry sources the report says record labels have a total financial exposure to TMI of an eight-figure amount. Based in St. Leon Rot, Germany TMI Top Music International Vertriebs GmbH is a wholesaler of CDs and DVDs. The company was established in 1989. =========== G R E E C E =========== MARFIN INVESTMENT: Board Proposes EUR5Bln Share Capital Increase ---------------------------------------------------------------- The Board of Directors of Marfin Investment Group has decided to convene an Extraordinary General Meeting of the company's shareholders on Oct. 27, 2008 with main agenda item a proposed share capital increase without preemption rights in favor of current shareholders. At the EGM, where all final decisions will be made, the Board of Directors will propose a share capital increase of EUR5,004,000,000 through the issuance of 834,000,000 new shares at a price of EUR6 per share. Should the EGM grant all necessary approvals, the new shares will be distributed via a private placement to strategic and/or institutional investors at the discretion of the Board of Directors. In July 2007, MIG successfully completed a share capital increase of EUR5.2 billion. The group said its timely assessment of the prolonged nature of challenging market conditions was the key factor behind the adoption of a defensive strategy since October 2007 thus enabling us to achieve capital preservation. In its present form the group's portfolio consists of controlling stakes in a number of companies operating in defensive sectors (such as Healthcare, Food & Beverages etc.) and maintain leading positions in their respective fields. Furthermore, the group maintains virtually zero leverage and liquidity of approximately EUR1 billion. The group's liquidity is further enhanced by approximately EUR350 million excess liquidity related to the group's companies. MIG's Board of Directors believes that the ongoing market conditions will eventually result in a series of significant investment opportunities both in Greece and the SE European region, with particular emphasis the banking sector which should experience some degree of consolidation, along the trends we are seeing in other key areas of the world. Commenting on the prospective share capital increase of MIG, the company's Executive Vice-Chairman, Mr. Andreas Vgenopoulos, said: "We live in a world of unprecedented market volatility and uncertainty. In this environment we are starting seeing some potentially very attractive opportunities which should increase both in scope and number over the short and medium term. With our existing cash resources coupled with the proceeds from our share capital increase under way, we are ideally placed to take advantage of these opportunities aiming to maximize returns for our shareholders. Our new investment strategy will primarily focus on the financial sector in Greece and the wider SEE region whereby in the consolidation round which will follow we can act as the partner of choice for counterparties in friendly transactions. Based on our track record to date and the success we have enjoyed in utilizing the proceeds of our previous two share capital increases, we are confident we will once again create significant value for our shareholders." Marfin Investment Group Holdings S.A. -- http://www.marfininvestmentgroup.com/-- is an investment holding company, based in Greece and incorporated under Greek law. The Company's aim is to deliver superior returns to shareholders, primarily by making private equity-type investments, as well as investments in privatizations and infrastructure projects, in the Targeted Countries. While these are not the only countries that the Company may invest in, these are the countries in which the Company anticipates that most investment opportunities will arise in the short to medium term. MARFIN INVESTMENT: S&P Shifts Outlook; Affirms BB/B Credit Ratings ------------------------------------------------------------------ Standard & Poor's Ratings Services has revised its outlook on Greek investment holding company Marfin Investment Group Holdings S.A. to positive from negative. At the same time, the 'BB/B' counterparty credit ratings were affirmed. "The outlook revision follows MIG's announcement this week that it proposes a major share capital increase of EUR5 billion," said S&P's credit analyst Nigel Greenwood. At the same time, Marfin Investment outlined a revision to its investment strategy with a new focus primarily on the financial sector in Greece and the wider South Eastern Europe region. S&P welcomes the planned improvement to capitalization, which has the potential to improve the firm's creditworthiness. S&P notes that while liquidity and leverage are comfortable at present, the group's financial policy is still evolving as are its risk-management capabilities. Marfin Investment Group is one of the larger firms on the Athens Stock Exchange. During 2007, and following the raising of EUR5.2 billion of fresh equity by means of a rights issue in July 2007, the group rapidly evolved toward being an investment holding company from that of a bank holding company. The planned new capital raising marks both an end to Marfin Investment's more defensive investment approach and also a shift in its sector focus. The group has stated that the ongoing difficult market conditions in the banking sector have created a significant investment opportunity. Marfin will seek to partake in the consolidation of the Greek banking sector with a focus on the largest banks. This is familiar to the company having led the consolidation of some smaller banks prior to 2007. Marfin Investment also maintains an operational relationship with, and a minority stake in, Cyprus-based Marfin Popular Bank Public Co. Ltd. (BBB+/Stable/A-2) that in turn owns Greece-based Marfin Egnatia Bank, S.A. (BBB+/Stable/A-2). The outlook is positive. "The proposed capital increase and the significantly revised strategy have the potential to transform MIG's profile," added Mr. Greenwood. If its business profile improves combined with greater clarity on its medium-term approach to its liquidity and leverage policy then the ratings could be raised. Conversely, if the capital raising is not completed, S&P would revise the outlook to stable, the ratings being underpinned by the current sound liquidity position. ============= I C E L A N D ============= GLITNIR BANKI: Failure to Get Funding Cues Government Bailout ------------------------------------------------------------- The government of Iceland bailed out Glitnir banki after it was unable to secure short-term funding, Bloomberg News writes. Glitnir had a deposit-to-loan ratio of about 30%, the lowest among Iceland's biggest banks, meaning it had to rely on money markets for financing. Based on the report, Bjorn Richard Johansen, an Oslo-based spokesman for Glitnir, said the bailout would remove all doubts on the company. Prime Minister Geir H. Haarde on Oct. 2, 2008, said the Glitnir bailout wouldn't end the banking "crisis" in Iceland. Iceland, according to Bloomberg, spent a decade punching above its weight as the three biggest banks amassed assets valued last year at nine times the country's US$19 billion gross domestic product. The demise of Iceland's third-biggest bank has shaken the economy. Stodir hf, an investment firm that owns 32% of Glitnir, has filed for protection from creditors. The cost of insuring against a default by Iceland's government and the three banks has surged to a record, credit-default swaps cited by Bloomberg show. Glitnir, Kaupthing Bank hf and Landsbanki Islands hf have the worst creditworthiness among European lenders, according to the swaps. Landsbanki had a deposit-to-loan ratio of 63% at the end of the first half, Bloomberg reports, citing a bank's September 29 statement. Andew Walton, a bank spokesman in London, declined to comment. Meanwhile, Kaupthing spokesman Jonas Sigurgeirsson assured that the bank is a very liquid bank with a strong position. Mikko Ayub, Helsinki-based head of investment product sales at Nordea Bank AB, referred to "Iceland as a country risk," Bloomberg notes. The krona slumped 14% against the euro since September 29, when the government said it would pay EUR600 million (US$842 million) for 75% of Glitnir, Bloomberg notes. An inflation of around 14% is almost five times the central bank's target. Overseas Expansion Bloomberg relates that Glitnir's assets grew more than ninefold from 2002 through 2007 as it acquired Swedish financial services companies Fischer Partners and Tamm & Partners Fondkommission AB, and Finnish money-management firm FIM Group Oyj. The expansion forced Glitnir to rely heavily on wholesale markets, rather than deposits, for its funding needs. Kaupthing's profit jumped more than 50-fold from 2000 to 2005 after it borrowed abroad to finance expansion, Bloomberg notes. It acquired financial services companies FIH Erhvervsbank A/S of Denmark in 2004 and Singer & Friedlander Group of the U.K. in 2005. Landsbanki purchased Teather & Greenwood and Kepler Equities of the U.K. and Merrion Capital Group of Ireland in 2005, as well as the U.K.'s Bridgewell Group Plc last year. Crossholdings Stodir also has holdings in insurer TM and real estate company Landic Property. Exista hf, a financial services firm, owns almost 25% of Kaupthing. Bakkabraedur Holding BV, owned by the founders of food maker Bakkavor Group, in turn owns 45% of Exista. Landsbanki has agreed to sell its European broking units, including Teather & Greenwood and Bridgewell, to Straumur Burdaras Investment Bank hf for EUR380 million. About Stodir Headquartered in Reykjav�k, Stodir hf. -- http://www.flgroup.is/ -- is a holding company with core focus on investments in financial, insurance, property and retail. As reported by the Troubled Company Reporter on Oct. 2, 2008, the District Court of Reykjav�k, on Monday, September 29, granted Stodir hf. (formerly FL Group hf.) authorization for moratorium process until Oct. 20, 2008. Jakob R. M�ller hrl., Logos l�gmanns�j�nustu, has been appointed administrator of the company. About Glitnir Headquartered in Reykjavik, Iceland, Glitnir banki reported total assets of ISK346 billion (EUR30.9 billion) at the end of June 2008. * * * As reported by the TCR-Europe on Oct. 2, 2008, Moody's Investors Service downgraded the Bank Financial Strength Rating (BFSR) of Glitnir banki hf to D from C-, the long-term bank deposit and senior debt ratings to Baa2 from A2 and the short-term rating to Prime-2 from Prime-1. In addition, Moody's downgraded the bank's subordinated debt to Ba1 from A3 and its preferred stock to B1 from Baa1. The BFSR remains on review for possible downgrade, while the outlook on debt and deposit ratings is developing. The rating action follows recent announcement that the Government of Iceland provided Glitnir with a capital injection of EUR600 million, thereby giving the government a 75% stake in the bank. The capital injection was in response to Glitnir's temporary liquidity difficulties in light of adverse market conditions. GLITNIR BANKI: Fitch Cuts Individual Rating to 'F' -------------------------------------------------- Fitch Ratings has downgraded Glitnir Banki hf., Kaupthing Bank hf., Landsbanki Islands and Straumur Burduras Investment Bank. This follows the announcement that the Government of Iceland, through the intermediation of the Central Bank of Iceland, will provide Glitnir with new equity amounting to EUR600 million, taking a 75% stake in the bank. The Icelandic government intervention followed concerns within Iceland's regulatory bodies that current difficult operating conditions in global financial markets were placing liquidity pressures on Glitnir. Although the Icelandic government considered these pressures to be temporary, Fitch views the government's purchase of a 75% stake in Glitnir as explicit support and has downgraded the bank's Individual rating to 'F' from 'B/C'. While the Icelandic government has stated that it does not plan to hold its stake in Glitnir for an extended period, Fitch does not believe it will be easy to exit in the near-term. Fitch has downgraded Glitnir's IDR to its Support Rating Floor of 'BBB-' (BBB minus) and placed them, together with the bank's Support '2' rating, on Rating Watch Negative. This is to reflect challenges affecting the Icelandic financial system and potential constraints on the availability of substantial liquidity support for a system reliant on market sentiment. The Icelandic banks have been vulnerable to market pressure for some considerable time but had, so far, demonstrated resilience to difficult market conditions and taken measures to offer protection against a weakening economic backdrop and market dislocation. However, historical reliance, albeit declining in the case of Landsbanki and Kaupthing, on wholesale funding, the risks of a hard landing for the Icelandic economy and rapid overseas expansion into markets showing increasing sign of deterioration have continued to weigh on market sentiment. The purpose of the action by the Icelandic authorities is to maintain stability within the Icelandic financial system and it remains to be seen whether this will have the desired effect. Fitch has downgraded the IDRs of Landsbanki, Kaupthing and Straumur and the Individual ratings of Landsbanki and Kaupthing to reflect the anticipated weakening of their financial condition against an increasingly challenging backdrop that appears unlikely to improve over the near-term. In assigning Negative Rating Watches to Icelandic banks' IDRs and Individual ratings Fitch is signalling the risk of contagion following the support measures implemented for Glitnir and the potential for further downgrades should a reasonable measure of stability not be achieved. Straumur's Individual and Support ratings and Support Rating Floor have been affirmed reflecting their greater tolerance to potential stress at their existing rating levels. The capital injection by the Icelandic government is subject to formal vote by the shareholder assembly; the largest shareholders have already agreed. The ratings of the three banks and two subsidiaries are: Glitnir Banki -- Long-term IDR and senior debt: downgraded to 'BBB-' from 'A-'; on Rating Watch Negative -- Short-term IDR: downgraded to 'F3' from 'F2'; on Rating Watch Negative -- Support rating: '2'; on Rating Watch Negative -- Support Rating Floor: revised to 'BBB-' from 'BBB'; on Rating Watch Negative -- Individual rating: downgraded to 'F' from 'B/C' -- Subordinated debt: downgraded to 'BB' from 'BBB+'; on Rating Watch Negative -- Hybrid capital instruments: downgraded to 'B' from 'BBB+'; on Rating Watch Negative Kaupthing Bank hf.: -- Long-term IDR and senior debt: downgraded to 'BBB' from 'A-'; on Rating Watch Negative -- Short-term IDR: downgraded to 'F3' from 'F2'; on Rating Watch Negative -- Support rating: '2'; on Rating Watch Negative -- Support Rating Floor: revised to 'BBB-' from 'BBB'; on Rating Watch Negative -- Individual rating: downgraded to 'C' from 'B/C'; on Rating Watch Negative -- Subordinated debt: downgraded to 'BBB-' from 'BBB+'; on Rating Watch Negative -- Hybrid capital instruments: downgraded to 'BB+' from 'BBB+'; on Rating Watch Negative Kaupthing Singer & Friedlander Ltd: -- Long-term IDR: downgraded to 'BBB' from 'A-'; on Rating Watch Negative -- Short-term IDR: downgraded to 'F3' from 'F2'; on Rating Watch Negative -- Support rating: '2'; on Rating Watch Negative -- Individual rating: downgraded to 'C' from 'B/C'; on Rating Watch Negative Landsbanki Islands: -- Long-term IDR and senior debt: downgraded to 'BBB' from 'A'; on Rating Watch Negative -- Short-term IDR: downgraded to 'F3' from 'F1'; on Rating Watch Negative -- Support rating: '2'; on Rating Watch Negative -- Support Rating Floor: revised to 'BBB-' from 'BBB'; on Rating Watch Negative -- Individual rating: downgraded to 'C' from 'B/C'; on Rating Watch Negative -- Subordinated debt: downgraded to 'BBB-' from 'A-'; on Rating Watch Negative -- Hybrid capital instruments: downgraded to 'BB+' from 'A-; on Rating Watch Negative Heritable Bank Ltd: -- Long-term IDR downgraded to 'BBB' from 'A'; on Rating Watch Negative -- Short-term IDR downgraded to 'F3' from 'F1'; on Rating Watch Negative -- Support rating: downgraded to '2' from '1' -- Individual rating: 'C'; on Rating Watch Negative Straumur Burdaras Investment Bank: -- Long-term IDR downgraded to 'BB+' from 'BBB-'; on Rating Watch Negative -- Short-term IDR downgraded to 'B' from 'F3'; on Rating Watch Negative -- Support rating: affirmed at '3' -- Support Rating Floor: affirmed at 'BB-' -- Individual rating: affirmed at 'C/D' -- Subordinated debt: downgraded to 'BB' from 'BB+'; on Rating Watch Negative ============= I R E L A N D ============= AER LINGUS: To Carry Out Cost Reduction Program ----------------------------------------------- The Board of Aer Lingus Group plc agreed to proceed with a cost reduction program to deliver the substantial savings which are necessary to ensure the Company's long-term viability as an independent airline. The Board has agreed the need for this fundamental change in the cost base to ensure that the Company remains competitive and is appropriately positioned to take advantage of future growth opportunities. Given the extremely challenging revenue environment the Board is committed to delivering these cost savings as a matter of urgency and management will meet with staff and their representatives next week to discuss the manner in which these cost savings will be achieved. Headquartered in Dublin, Ireland, Aer Lingus Group plc -- http://www.aerlingus.com/-- primarily provides passenger transportation services. The Company and its subsidiaries operates as a low fares Irish airline primarily providing passenger and cargo transportation services from Ireland to the United Kingdom and Europe (short haul) and also to the United states (long haul). The Company also provides cargo transportation services on its passenger aircraft, primarily on its long-haul routes, as well as a range of ancillary services to its passengers. ========= I T A L Y ========= ALITALIA SPA: Ryanair Says State Bailout Distorts Competition ------------------------------------------------------------- Low fare airline Ryanair has submitted a formal complaint to the EU Commission regarding the latest bailout of Alitalia SpA. Ryanair's action comes after the Italian Government announced that it had reached agreement with Alitalia's unions regarding an offer made by Compagnia Aerea Italiana s.r.l., a consortium of Italian investors created to save the national carrier. The deal calls for renaming of Alitalia and writing off between EUR1.2 and EUR2 billion worth of its debt in order to secure investors. Ryanair said it has previously submitted several complaints against Alitalia and other flag carrier airlines, including Olympic, Air France and Lufthansa, against which the EU Commission has taken no action. Ryanair highlighted that this ongoing unlawful protection of flag carriers by their member state governments, which amounts to billions of euro, increasingly makes a mockery of the EU Commission's enforcement of the state aid rules. Announcing the complaint, Ryanair's Director of Legal and Regulatory Affairs, Jim Callaghan, said: "This is the latest and perhaps most blatant example of the Italian Government doing whatever it takes to protect their failed airline, Alitalia. It is also the second time that they have used the trick of simply shifting debt out of the airline and into a subsidiary in order to keep the airline afloat. In this instance, the Italian government is writing off up to EUR2 billion in Alitalia debts and is guaranteeing the investments by the members of the consortium and underwriting huge concessions to the unions in exchange for their agreement to these ludicrous plans." "However, despite the blatant nature of the Italian Government's breaches of the EU state aid rules, we have no doubt that the EU Commission will again rubber stamp this unlawful bailout, as they did 3 years ago and more recently in a similar case involving Olympic. In such case, Ryanair will appeal this decision to the European courts to expose the corrupt and biased application by the Commission of its own state aid rules." "Ryanair has already been forced to take several cases against the Commission for its failure to take action against other blatant breaches of the state aid rules by member state governments to protect and bail out their inefficient flag carriers. These repeated failures by the Commission are contributing to a massively distorted playing field in European aviation." "Ryanair will continue to expose the biased and corrupt application of the state aid rules by the European Commission to ensure that economically and environmentally unsustainable airlines like Alitalia and Olympic Airways are forced to exit the market � which is what is supposed to happen in a free market." The EU Commission said the complaint from Ryanair will be addressed in the same meticulous way as any other it receives, The Associated Press reports. Air Operator License Rocco Sabelli, Compagnia Aerea Italiana sole director, probably met with Italian ENAC (National authority for civil aviation) general director Silvano Manera to start the procedure for the request of Air Operator license, a report posted at World Aeronautical Press Agency's site said. Meanwhile, the report relates that Alitalia's extraordinary administrator, Mr. Augusto Fantozzi, said in an interview he will probably receive from CAI a binding offer from October 13 to 15 and the signature of the agreement on assets sale "In bonis" of the carrier by October 20. About slots it is Assoclearance which should probably decide, the report says. As reported in the Troubled Company Reporter-Europe on Oct. 2, 2008, Mr. Fantozzi said he received several expressions of interest for Alitalia within the terms of the deadline on Sept. 30, 2008, however, only CAI's proposal is directly concerned with the overall activities of air transport. Other expressions of interest meanwhile concerned specific branches or activities of the various companies making up the Alitalia Group. Intesa Sanpaolo, Alitalia's financial advisor for the procedure, has started analyzing the expressions of interest received. Upon completion of the analysis, the proposers who meet the conditions for initiating negotiations will undergo due diligence examination. Mr. Fantozzi did not name the entities who are submitting expressions of interest. Graham Dunn of Air Transport Intelligence reports that financial firm AMA Asset Management Advisors (Suisse) and Italian carrier Blue Panorama have both said they are submitting expressions of interest covering around 30 aircraft and some Rome Fiumicino activities respectively. Air France-KLM chairman Jean-Cyril Spinetta also confirmed its interest in the Italian carrier, Agence France-Presse said, citing an unnamed source. Meanwhile, a source told Reuters News that British Airways may seek a commercial relationship with Alitalia and is now monitoring developments, however, a spokeswoman for the British company said the group was not currently interested in taking on parts of Alitalia. As reported in the Troubled Company Reporter-Europe on Sept. 30, 2008, various sources said CAI is considering selling a minority stake to either Air France-KLM or Lufthansa and launching the new Alitalia by November 1. CAI revived its bid for Alitalia after it reached agreement on new labor contracts and redundancies with two more pilots' unions in the early hours of Saturday, The Financial Times reported. According to the FT, pilots agreed to cut their salaries by 6% to 7% and reduce their holidays from 42 days to 30 days. In return, the FT said CAI agreed to reduce the number of lay-offs from 1,000 to 860 by taking on 140 pilots part-time. CAI's offer of some EUR400 million (US$584 million) for Alitalia's healthy assets is still being evaluated by Mr. Fantozzi and independent advisers, the FT report added. On Sept. 22, 2008, the TCR-Europe reported that CAI withdrew its bid to buy Alitalia's healthier assets after failing to win the support of labor unions. After CAI's withdrawal, Alitalia proceeded with its fourth public request for offers to buy any or all parts of the company's assets until Sept. 30, 2008. The carrier published notices in the Italian newspapers Corriere della Sera, il Sole-24 Ore and la Repubblica, as well as the London- based Financial Times, according to The Associated Press. In the prepared notice cited by The AP, Alitalia sought "whoever might be able to guarantee the continuity, in the medium term, of the transportation service . . . to submit its expression of interest." 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. Alitalia S.p.A. declared insolvency on Aug. 29, 2008, and filed for commencement of extraordinary administration procedure at the Tribunal of Rome. Italian Prime Minister Silvio Berlusconi has appointed Augusto Fantozzi as extraordinary commissioner. PARMALAT SPA: Prelim. Injunction Hearing Moved to December 16 ------------------------------------------------------------- The United States Bankruptcy Court for the Southern District of New York has adjourned until December 16, 2008, at 10:00 a.m., the hearing to consider the Preliminary Injunction request of Gordon I. MacRae and James Cleaver, as Joint Official Liquidators of Parmalat Capital Finance Limited, Dairy Holdings Limited, and Food Holdings Limited, on one hand, and Parmalat Finanziaria S.p.A., and its affiliates and subsidiaries, under the direction of Dr. Enrico Bondi, Extraordinary Administrator of the Parmalat companies, on the other hand. The Order will be without prejudice to Parmalat's right to object for preliminary injunctive relief. Each of the Petitioners and Parmalat reserves all rights and arguments with respect to the proceedings under Section 304 of the Bankruptcy Code. Nothing contained in the Order will be construed as Parmalat's agreement with any of the positions or actions taken by the Liquidators in commencing the ancillary proceedings, in the United States or in the Cayman Islands. Pursuant to Rule 7065 of the Federal Rues of Bankruptcy Procedure, the security provisions of Rule 65(c) of the Federal Rules of Civil Procedure are waived. In addition, U.S. Bankruptcy Judge Drain extends Parmalat's time to answer the Section 304 Petition commencing the ancillary proceedings until January 16, 2008, unless otherwise ordered by the Bankruptcy Court. Judge Drain rules that the Temporary Restraining Order will remain in effect pursuant to the Order until December 16. Exhibit and witness lists related to any Preliminary Injunction Hearing will be served and filed by December 8. 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. On June 21, 2007, the U.S. Court granted Parmalat permanent injunction. =================== K A Z A K H S T A N =================== ILEK-SECURITY LLP: Creditors Must File Claims by November 15 ------------------------------------------------------------ The Specialized Inter-Regional Economic Court of Aktube has declared LLP Ilek-Security insolvent on Sept. 12, 2008. Creditors have until Nov. 15, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Aktube Altynsarin Str. 31 Aktobe Aktube Kazakhstan Tel: 8 (3132) 21-30-32 OIL SNUB: Claims Deadline Slated for November 15 ------------------------------------------------ LLP Corporation Oil Snub Service has gone into liquidation. Creditors have until Nov. 15, 2008, to submit written proofs of claims to: LLP Corporation Oil Snub Service Abulhair han ave. 39-38 Aktobe Aktube Kazakhstan PROM STROY-A: Claims Filing Period Ends November 15 --------------------------------------------------- LLP Construction Company Almaty Prom Stroy-A has gone into liquidation. Creditors have until Nov. 15, 2008, to submit written proofs of claims to: LLP Construction Company Almaty Prom Stroy-A Tole bi Str. 295 Almaty Kazakhstan KAZTRANSOIL: S&P Affirms Long-Term Corporate Credit Rating at BB+ ----------------------------------------------------------------- Standard & Poor's Ratings Services has affirmed its 'BB+' long- term corporate credit rating on Kazakh oil pipeline operator KazTransOil. The outlook is stable. The rating on KazTransOil reflects the high strategic importance of the company's operations to its parent company, JSC NC KazMunayGas (BBB-/Negative/--) and the Republic of Kazakhstan (foreign currency BBB-/Negative/A-3; local currency BBB/Negative/A-3). Using a top-down approach, S&P rates the company one notch lower than KMG. S&P estimates KazTransOil's stand-alone credit quality at 'BB+'. "The stand-alone rating on KTO is supported by long-term ship-or- pay contracts with oil producers, the company's favorable debt structure, limited competition from alternative oil export pipelines, and good prospects for oil production and export in Kazakhstan," said S&P's credit analyst Sergei Gorin. "The company has not yet decided on whether to participate in the Eskene-Kuryk construction project, and a material debt-funded investment in this project could put pressure on KTO's stand-alone credit quality." KazTransOil also benefits from an advantageous tariff regime, illustrated by a recent 25% rise in export tariffs; low transportation costs; and a strong market position in Kazakhstan, based on the company's vast pipeline system. It distributes more than 60% of Kazakhstan's total oil exports. On June 30, 2008, KazTransOil reported liquidity reserves of US$307 million in cash and cash deposits. These liquidity sources were significantly higher than the company's short-term debt of US$24 million on the same date. "The outlook is stable because we expect that KTO will maintain its stand-alone credit quality, which will counterbalance the macroeconomic risks in Kazakhstan and underpin the company's overall creditworthiness," said Mr. Gorin. RICH OIL: Creditors' Claims Due on November 15 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Rich Oil insolvent. Creditors have until Nov. 15, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kostanai Tolstoy Str. 74 Kostanai Kazakhstan SK-STROY LLP: Claims Registration Ends November 15 -------------------------------------------------- LLP Construction Company SK-Stroy has gone into liquidation. Creditors have until Nov. 15, 2008, to submit written proofs of claims to: LLP Construction Company SK-Stroy Konayev Str. 168-6 Talgar Talgarsky District Almaty Kazakhstan STM-SERVICE LLP: Creditors Must File Claims by November 15 ---------------------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP STM-SERVICE insolvent. Creditors have until Nov. 15, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Aktube Altynsarin Str. 31 Aktobe Aktube Kazakhstan Tel: 8 (3132) 21-30-32 STROY COMPLECT-K: Claims Deadline Slated for November 15 -------------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Construction Company Stroy Complect-K insolvent. Creditors have until Nov. 15, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kostanai Tolstoy Str. 74 Kostanai Kazakhstan TERNO-STROY LLP: Claims Filing Period Ends November 15 ------------------------------------------------------ The Specialized Inter-Regional Economic Court of Almaty has declared LLP Construction Company Terno-Stroy insolvent on July 17, 2008. Creditors have until Nov. 15, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Tsvetochnaya Str. 11-10 Taugul Almaty Kazakhstan Tel: 8 (7272) 93-61-19 TRANSMERIDIAN EXPLORATION: Receives Delisting Notice from AMEX -------------------------------------------------------------- Transmeridian Exploration Incorporated disclosed in a Securities and Exchange Commission filing that on Sept. 23, 2008, it received notice from the American Stock Exchange indicating that the Company is not in compliance with certain continued listing standards of the AMEX. Based on a review of the Company's Form 10-Q for the quarter ended June 30, 2008, the AMEX determined that the Company is not in compliance with: -- Section 1003(a)(i) of the AMEX Company Guide due to stockholders' equity of less than US$2,000,000 and losses from continuing operations and net losses in two of its three most recent fiscal years; -- Section 1003(a)(ii) of the Company Guide due to stockholders' equity of less than US$4,000,000 and losses from continuing operations and net losses in three of its four most recent fiscal years; and -- Section 1003(a)(iii) of the Company Guide due to stockholders' equity of less than US$6,000,000 and losses from continuing operations and net losses in five of its most recent fiscal years. On May 22, 2008, the AMEX notified the Company that it was not in compliance with Section 1003(a)(iv) of the Company Guide in that it had sustained losses which were so substantial in relation to its overall operations or its existing financial resources, or its financial condition had become so impaired that it appeared questionable, in the opinion of the AMEX, as to whether the Company would be able to continue operations or meet its obligations as they matured. On Aug. 6, 2008, the Company provided the AMEX with its plan of compliance and supporting documentation and the AMEX accepted the Plan and granted the Company an extension until October 31, 2008 to regain compliance with Section 1003(a)(iv) of the Company Guide. In order to maintain its AMEX listing, the Company has informed the AMEX that it intends to supplement the Plan by Oct. 7, 2008, to address how it intends to regain compliance with Section 1003(a)(iv) of the Company Guide by Oct. 31, 2008 and Sections 1003(a)(i), (ii) and (iii) of the Company Guide by March 23, 2010. The Revised Plan is expected to include quarterly financial projections and details related to the transactions contemplated under the Amended and Restated Investment Agreement, dated as of June 11, 2008 and amended and restated as of Sept. 22, 2008, between the Company and United Energy Group Limited, an exempted company with limited liability existing under the laws of Bermuda. The AMEX will evaluate the Revised Plan and make a determination as to whether the Company has made a reasonable demonstration of an ability to regain compliance with the AMEX continued listing standards. If the Revised Plan is accepted, the Company may be able to continue its listing through the Plan Periods, during which time the Company will be subject to periodic review to determine whether it is making progress consistent with the Revised Plan. If the Revised Plan is not accepted, the Company may be subject to delisting proceedings. If the AMEX accepts the Revised Plan but the Company is not in compliance with all of the AMEX continued listing standards by March 23, 2010, or if the Company does not make progress consistent with the Revised Plan during the Plan Periods, the AMEX staff will initiate delisting proceedings as appropriate. The Company may appeal a staff determination to initiate delisting proceedings in accordance with Section 1010 and Part 12 of the Company Guide. About Transmeridian Exploration Based in Houston, Transmeridian Exploration Inc. (AMEX: TMY) -- http://www.tmei.com/-- is an independent energy company established to acquire and develop oil reserves in the Caspian Sea region of the former Soviet Union. The company's primary oil and gas property is the South Alibek Field in the Republic of Kazakhstan covered by License 1557 and the related exploration and production contracts with the government of Kazakhstan. Transmeridian Exploration's consolidated balance sheet at March 31, 2008, showed US$402.2 million in total assets, US$341.2 million in total liabilities, and US$92.5 million in redeemable convertible preferred stock, resulting in a US$31.5 million total stockholders' deficit. Going Concern Doubt UHY LLP in Houston raised substantial doubt on Transmeridian's ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Dec. 31, 2007, and 2006. The auditing firm pointed to the company's negative working capital, stockholders' deficit, and operating losses since its inception. TRANSMERIDIAN EXPLORATION: Amends Exchange Offer Terms ------------------------------------------------------ Transmeridian Exploration Incorporated and Transmeridian Exploration Inc. are amending the terms of their exchange offer and related consent solicitation relating to US$290,000,000 aggregate principal amount of TMEI's 12% Senior Secured Notes due 2010 (CUSIP Nos.: 89376NAC2, 89376NAA6, 89376NAB4, U87289AB7). Pursuant to the amended terms of the exchange offer, Transmeridian and TMEI are offering to exchange US$200 in cash and US$800 in principal amount of TMEI's new 12% Senior Secured Notes due 2010 for each US$1,000 principal amount of Existing Notes. In the event that greater than US$222,157,000 principal amount of Existing Notes are validly tendered and not validly withdrawn in the exchange offer (the principal amount being equal to 90% of the aggregate principal amount of Existing Notes outstanding, exclusive of the US$43,159,000 principal amount of Existing Notes held by United Energy Group Limited), Transmeridian and TMEI will: -- increase the cash amount paid; and -- reduce the principal amount of New Notes issued, for each US$1,000 principal amount of Existing Notes. In that case, the aggregate cash amount payable will be equal to US$44,431,400, plus an amount equal to 101% of the principal amount of Existing Notes validly tendered and not withdrawn in excess of US$222,157,000, and this amount of cash will be allocated ratably to all holders of Existing Notes accepted for exchange; and the aggregate principal amount of New Notes issuable will be US$177,726,000, regardless of the principal amount of Existing Notes tendered, and this principal amount of New Notes will be allocated ratably to all holders of Existing Notes accepted for exchange. Upon completion of the transactions specified in the Investment Agreement between Transmeridian and UEGL, Transmeridian will cause TMEI to offer to repurchase any Existing Notes not exchanged in the exchange offer in accordance with their terms. If less than all of the Existing Notes are so repurchased, TMEI will apply the amount of cash not used to fully repurchase the Existing Notes to mandatorily redeem the New Notes on a pro rata basis at par plus accrued but unpaid interest to the redemption date. TMEI will not be required to redeem the New Notes unless the aggregate principal amount of New Notes to be redeemed is at least US$2.0 million. Holders who have previously tendered Existing Notes will receive the amended total consideration set forth above and do not need to re-tender their old notes or take any other action in response to the amended exchange offer, although any previously tendered Existing Notes will not count towards the satisfaction of the requisite consents condition, unless the Existing Notes are validly withdrawn and validly re-tendered pursuant to the terms and conditions of an Offering Memorandum and related documents. Additionally, pursuant to the amended terms of the exchange offer and related consent solicitation, the collateral securing the Existing Notes and the New Notes will be expanded to include intercompany indebtedness, and additional modifications will be made to certain restrictive covenants limiting the ability of Transmeridian and its subsidiaries to incur indebtedness, make restricted payments, enter into transactions with affiliates and sell certain assets contained in the indenture governing the Existing Notes -- other than in respect of the asset sale provisions of the indenture governing the Existing Notes -- and the indenture that will govern the New Notes. In connection with the amendment of the terms of the exchange offer, Transmeridian and TMEI have determined to extend the expiration time for the exchange offer to 5:00 p.m., New York City time, on Oct. 7, 2008. The exchange offer was previously scheduled to expire at 12:00 midnight, New York City time, on Oct. 1, 2008. As of 5:00 p.m., New York City time, on Sept. 22, 2008, holders of an aggregate US$16,688,000 principal amount of the Existing Notes have tendered their Existing Notes into the exchange offer. Additionally, Transmeridian and TMEI have been advised that the beneficial owners of in excess of 90% of the aggregate principal amount of Existing Notes not held by UEGL intend to tender their Existing Notes into the exchange offer, subject to certain conditions. The exchange offer is subject to certain conditions, including but not limited to the receipt of valid and unrevoked tenders from holders representing at least 90% of the aggregate principal amount of the Existing Notes, excluding any Existing Notes held by UEGL -- at least US$222.2 million in aggregate principal amount of the Existing Notes -- and the receipt of consents from a majority of the aggregate principal amount of the Existing Notes, excluding any Existing Notes held by UEGL. If the beneficial holders that have advised Transmeridian and TMEI of their intent to tender their Existing Notes into the exchange offer do so, and do not subsequently withdraw their Existing Notes from the exchange offer, the minimum tender condition and requisite consents condition would be satisfied. All Existing Notes validly tendered prior to the expiration time and not validly withdrawn prior to the execution by TMEI, the guarantors of the Existing Notes and the trustee under the indenture governing the Existing Notes of a supplemental indenture and amended and restated security documents implementing the proposed amendments to the indenture governing the Existing Notes and related security documents will be eligible to receive the amended total consideration payable in the exchange offer. Because no portion of the amended cash consideration payable in the exchange offer will constitute a consent payment to be paid with respect to, and no separate consent payment will be made for, consents received to the proposed amendments to the indenture governing the Existing Notes and related security documents, Transmeridian and TMEI have determined to remove the consent payment deadline with respect to the exchange offer and related consent solicitation. About Transmeridian Exploration Based in Houston, Transmeridian Exploration Inc. (AMEX: TMY) -- http://www.tmei.com/-- is an independent energy company established to acquire and develop oil reserves in the Caspian Sea region of the former Soviet Union. The company's primary oil and gas property is the South Alibek Field in the Republic of Kazakhstan covered by License 1557 and the related exploration and production contracts with the government of Kazakhstan. Transmeridian Exploration's consolidated balance sheet at March 31, 2008, showed US$402.2 million in total assets, US$341.2 million in total liabilities, and US$92.5 million in redeemable convertible preferred stock, resulting in a US$31.5 million total stockholders' deficit. Going Concern Doubt UHY LLP in Houston raised substantial doubt on Transmeridian's ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Dec. 31, 2007, and 2006. The auditing firm pointed to the company's negative working capital, stockholders' deficit, and operating losses since its inception. TRANSMERIDIAN EXPLORATION: Amends Investment Agreement with UEG -------------------------------------------------------------- Transmeridian Exploration Incorporated disclosed in a Securities and Exchange Commission filing that the company and United Energy Group Limited have agreed to modify certain aspects of the transactions contemplated by the Investment Agreement entered into by the parties on June 11, 2008, as amended by letter agreement dated July 22, 2008. As a result of these modifications, Transmeridian and UEG entered into an Amended and Restated Investment Agreement on Sept. 22, 2008, which amends and restates the Prior Agreements in their entirety. Under the terms of the Investment Agreement and consistent with the Prior Agreements, UEG will: -- acquire at least 90% of the outstanding shares of each of the 15% senior redeemable convertible preferred stock of Transmeridian and the 20% junior redeemable convertible preferred stock of Transmeridian; and -- make a cash infusion to fund Transmeridian's ongoing capital expenditure program and working capital requirements. In exchange for the foregoing, under the terms of the Investment Agreement, UEG will receive shares of new preferred stock of Transmeridian. In addition, UEG will exchange any Senior Notes and New Notes it holds on the date of the closing of the transactions contemplated by the Investment Agreement for shares of Transmeridian's common stock and additional warrants to purchase shares of Transmeridian's common stock. UEG will also be entitled to receive shares of Transmeridian's common stock to the extent it funds the cash consideration payable in the exchange offer for the Senior Notes, the repurchase of any Senior Notes not exchanged in the exchange offer and any subsequent redemption of outstanding New Notes. Upon the closing of the transactions contemplated by the Investment Agreement, and UEG's receipt of the New Preferred Stock, the Warrants, the Additional Warrants and the common stock to be issued by Transmeridian to UEG in exchange for: -- the Senior Notes and New Notes held by UEG; -- UEG's funding of the cash consideration payable in the exchange offer; and -- UEG's funding of the repurchase of any remaining Senior Notes or redemption of any outstanding New Notes, UEG will hold up to approximately 85% of the capital stock of Transmeridian on an as-converted, fully diluted basis (assuming that UEG (or its affiliates) will exchange or fund the exchange for cash, repurchase and redemption of US$117,300,000 aggregate principal amount of Senior Notes and New Notes, and that UEG purchases all 263,653,960 shares of common stock of Transmeridian underlying the Warrants and the Additional Warrants, which are exercisable after the first anniversary of the date of the closing). The transactions contemplated by the Investment Agreement are subject to the approval of UEG's and Transmeridian's shareholders, regulatory approval and other terms and conditions contained in the Investment Agreement. About Transmeridian Exploration Based in Houston, Transmeridian Exploration Inc. (AMEX: TMY) -- http://www.tmei.com/-- is an independent energy company established to acquire and develop oil reserves in the Caspian Sea region of the former Soviet Union. The company's primary oil and gas property is the South Alibek Field in the Republic of Kazakhstan covered by License 1557 and the related exploration and production contracts with the government of Kazakhstan. Transmeridian Exploration's consolidated balance sheet at March 31, 2008, showed US$402.2 million in total assets, US$341.2 million in total liabilities, and US$92.5 million in redeemable convertible preferred stock, resulting in a US$31.5 million total stockholders' deficit. Going Concern Doubt UHY LLP in Houston raised substantial doubt on Transmeridian's ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Dec. 31, 2007, and 2006. The auditing firm pointed to the company's negative working capital, stockholders' deficit, and operating losses since its inception. ZARTEK LLP: Creditors' Claims Due on November 15 ------------------------------------------------ The Specialized Inter-Regional Economic Court of Almaty has declared LLP Zartek insolvent on June 23, 2008. Creditors have until Nov. 15, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Post Office Box 1 JSC Kazpochta Post Office 57 050057, Almaty Kazakhstan Tel: 8 777 681 55-41 ZEVS & K: Claims Registration Ends November 15 ---------------------------------------------- The Specialized Inter-Regional Economic Court of South Kazakhstan has declared LLP Zevs & K insolvent. Creditors have until Nov. 15, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of South Kazakhstan Ilyaev Str. 24 Shymkent South Kazakhstan Kazakhstan Tel: 8 (7252) 53-48-34 8 (7252) 54-02-36 =================== K Y R G Y Z S T A N =================== BONA FIDE LLC: Creditors Must File Claims by November 12 -------------------------------------------------------- LLC Bona Fide has shut down. Creditors have until Nov. 12, 2008, to submit written proofs of claim to: LLC Bona Fide Fuchik Str. 3 Bishkek Kyrgyzstan Inquiries can be addressed to (0-555) 47-74-62. =================== L U X E M B O U R G =================== LEHMAN BROTHERS: Europe's Deminor Files Suit to Recoup Losses ------------------------------------------------------------- Investor rights group Deminor is launching legal action on behalf of people who lost money from securities issued by Lehman Brothers Holdings Inc., Reuters reports. Deminor alleged that Netherlands-registered Lehman Brothers Treasury Co BV had issued bonds and structured products worth US$34 billion in Europe that were "unconditionally and irrevocably" guaranteed by U.S. parent Lehman Brothers Holdings Inc., Reuters notes. The parent and the unit went into bankruptcy protection this month and have found buyers for chunks of the business. "[A] large number of investors across Europe who acquired these bonds and structured products from Lehman Brothers now face substantial losses," Reuters quoted Deminor as stating. Deminor added that many of the instruments were traditionally sold through retail banks in Europe with no mention of their "exposure to a highly leveraged American bank". European banks were "inexact" in describing the risk profile of the products and how it changed over time, in violation of European Union financial services rules known as MiFID, Deminor asserted, Reuters relates. "An action against the financial intermediaries which distributed bonds and structured products on the European market and did not comply with MiFID rules" will also be launched, Reuters quotes the group as saying. No buyer has yet stepped forward for Lehman's European fixed income operation, Reuters adds. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Through its team of more than 25,000 employees, Lehman Brothers offers a full array of financial services in equity and fixed income sales, trading and research, investment banking, asset management, private investment management and private equity. Its worldwide headquarters in New York and regional headquarters in London and Tokyo are complemented by a network of offices in North America, Europe, the Middle East, Latin America and the Asia Pacific region. The firm, through predecessor entities, was founded in 1850. Lehman filed for chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. The September 15 Chapter 11 filing by Lehman Brothers Holdings, Inc., does not include any of its subsidiaries. Subsidiary LB 745 LLC, submitted a Chapter 11 petition on September 16 (Case No. 08-13600). The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Barclays Bank Plc has agreed, subject to U.S. Court and relevant regulatory approvals, to acquire Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. These are currently the only UK incorporated companies in administration. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. The two units of Lehman Brothers Holdings, Inc., which has filed for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York, have combined liabilities of JPY4 trillion -- US$38 billion). Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Akio Katsuragi, a former Morgan Stanley executive, runs Lehman's Japan units. Lehman Brothers Asia Limited, Lehman Brothers Securities Asia Limited and Lehman Brothers Futures Asia Limited have suspended its operations with immediate effect, including ceasing to trade on the Hong Kong Securities Exchange and Hong Kong Futures Exchange, until further notice. The Asian units' asset management company, Lehman Brothers Asset Management Limited, will continue to operate on a business as usual basis. A further notice concerning the retail structured products issued by or arranged by any Lehman Brothers group company will be issued as soon as possible, a press statement said. MILLICOM INT'L: Completes US$510 Million Acquisition of Amnet ------------------------------------------------------------- Millicom International cellular S.A. has completed the acquisition of 100% of Amnet Telecommunications Holding Limited following the agreement initially announced on July 22, 2008. Millicom has purchased Amnet for an enterprise value of US$510 million. Amnet is the leading provider of broadband and cable television services in Costa Rica, Honduras and El Salvador, provides fixed telephony in El Salvador and Honduras, and provides corporate data services in the above countries as well as Guatemala and Nicaragua. The Acquisition of Amnet will allow Millicom to accelerate its broadband offering across the Central American region which is its most important region and accounts for 43% of the group's worlwide revenue, 55% of EBITDA and 38% of subscribers. Millicom has received the requisite regulatory approval for the acquisition and has recently received US$200 million in acquisition financing from two leading commercial banks to fund part of the acquisition price. The acquisition financing is for an initial term of 12 months after which it is intended to be refinanced by a long-term bond or syndicated bank facility. Marc Beuls, President and CEO of Millicom commented, "This transaction is an important step for us to develop our broadband offer as well as adding what on a standalone basis is a financially strong business. Amnet meets Millicom's strict requirements for returns of all new investment by providing excellent growth potential aligned with strong margins and good cashflow conversion. In Central America, we expect that the demand for broadband will be strong and independent research suggests that broadband is likely to be the fastest growing market segment so that we will be able to bring our marketing skills to work to increase broadband penetration among Amnet's cable subscribers. The combination of Anet and the recent launch of 3G will allow us to play a major role in the development of broadband across Central America." About Millicom International Headquartered in Bertrange, Luxembourg, and controlled by Sweden's AB Kinnevik, Millicom International Cellular S.A. -- http://www.millicom.com/-- is a global telecommunications investor with cellular operations in Asia, Latin America and Africa. It currently has cellular operations and licenses in 16 countries. The Group's cellular operations have a combined population under license of around 391 million people. The Central America Cluster comprises Millicom's operations in El Salvador, Guatemala and Honduras. The population under license in Central America at December 2005 is 26.4 million. The South America Cluster comprises Millicom's operations in Bolivia and Paraguay. The population under license in South America at December 2005 is 15.2 million. * * * Millicom International Cellular S.A. continues to carry Moody's Investors Service's Ba2 corporate family rating. The rating was previously at Ba3 and was upgraded by Moody's to its current level in November 2007. The company also carries B1 rating on its existing senior notes from Moody's. Moody's said the outlook on the ratings is stable. ===================== N E T H E R L A N D S ===================== NXP BV: S&P Affirms Long-Term Corporate Credit Rating at 'B-' ------------------------------------------------------------- Standard & Poor's Ratings Services has affirmed its 'B-' long-term corporate credit rating on Dutch semiconductor company NXP B.V. The outlook is negative. The ratings on NXP's secured notes were lowered to 'B-' from 'B' and the recovery ratings were revised to '3' from '2', reflecting S&P's view that a higher than initially expected portion of value in a default scenario could be shared with unsecured debtholders. A recovery rating of '3' indicates S&P's expectation of meaningful (50%-70%) recovery for secured lenders in the event of a payment default. At the same time, the corporate credit rating and all issue ratings on NXP and guaranteed subsidiary NXP Funding LLC were removed from CreditWatch negative, where they had been placed on July 25, 2008, after the company released its second-quarter 2008 results. At June 30, 2008, NXP had US$6.7 billion of gross debt on its balance sheet, including a US$450 million draw under its revolving credit facility and US$4.1 billion in secured notes. "The affirmation reflects our expectation that mandatory debt repayments under its bond indentures, following recently announced disposals, should leave NXP with sufficiently large amounts of cash to conduct its massive restructuring over 2009-2010," said S&P's credit analyst Patrice Cochelin. The negative outlook primarily reflects S&P's uncertainties about the timing and extent of NXP's recovery, the confirmation, timing, and amount of the disposal of the 20% stake in the wireless joint venture, and operating cash flow generation in 2009. S&P expects NXP's liquidity position to remain the main rating driver in the coming quarters, as the company will balance large cash inflows from disposals with large outflows related to restructuring, and ongoing interest payments. S&P could lower the ratings if in particular it sees prospects for NXP's liquidity weaken materially before a return to sustainable positive free cash flow can be anticipated. This would be the case, for instance, if liquidity resources (mainly cash balances immediately available for debt repayment and undrawn revolver commitments) represented less than a year of cash burn in a downside scenario. Assuming a sale of the 20% stake in the wireless joint venture for an amount in line with S&P's expectations, this threat is unlikely to emerge before second-half 2009, however. On the other hand, S&P will closely watch NXP's pre-restructuring profitability and cash flow generation as signs of operating improvement, potentially paving the way for a stable outlook, assuming liquidity remains adequate. =========== R U S S I A =========== CHELYABINSK TUBE: Moody's Withdraws B1 Corporate Family Rating -------------------------------------------------------------- Moody's Investors Service has withdrawn the ratings of Chelyabinsk Tube-Rolling Plant, OJSC for business reasons and at the company's request. Ratings withdrawn are as: -- B1 corporate family rating (foreign and local currency), and -- A2.ru national scale corporate family rating. ChTPZ, one of the leading pipe and tube manufacturers and the largest producer of seamless industrial pipes in Russia, reported in 2007 RUB80.6 billion in revenues and RUB11.87 billion in EBITDA. The Company operates two facilities: Chelyabinsk Tube- Rolling Plant and Pervouralsky Tube-Rolling Plant). OGK-5 JSC: Posts RUR767 Million Net Profit for Fist Half 2008 ------------------------------------------------------------- JSC OGK-5 has published the interim consolidated financial statements for six months, ended June 30, 2008, prepared in accordance with International Financial Reporting Standards. Net Profit for first half 2008 totaled RUR767 million, RUR433 million lower than the value posted in the previous year. Consolidated Balance Sheet as of June 30, 2008 Total Assets at the end of June 2008 totaled RUR79.491 million, RUR351 million higher than the figure posted in the previous year. Limited review of IFRS Consolidated Financial Statements for six months of year 2008 was performed by KPMG, approved as the auditor of JSC OGK-5 for year 2008 by the Annual General Shareholders' Meeting of JSC OGK-5. About OGK-5 Headquartered in Ekaterinburg, Russia, OAO OGK-5 -- http://www.ogk-5.com/-- generates electricity and heat energy. The Company owns and operates four power plants: Konakovskaya GRES, Nevinnomysskaya GRES, Reftinskaya GRES, and Sredneuralskaya GRES. * * * JSC OGK-5 continues to carry a Ba3 corporate family rating and a from Ba3 probability-of-default ratings from Moody's. TNK-BP INT'L: Inks Long Term Cooperation Agreements with Integra ---------------------------------------------------------------- Integra Group has signed several long term cooperation agreements with TNK-BP. The agreements cover development and sidetrack drilling projects to be executed in the Khanty-Mansiisk Autonomous District and at the Verkhnechonskoe oilfield in Irkutsk region. The contracts were signed by Integra Group's subsidiary Integra- Bureniye. The duration of the agreements is from 2008 to 2010 and throughout this period Integra-Bureniye undertakes to drill 129 development wells and conduct 63 sidetrack operations. In total 490,000 meters will be drilled throughout the life of the contracts. Mr. Felix Lubashevsky, Chief Executive Officer of Integra Group, said, "We see an increasing stream of long-term contracts emerging in the Russian oilfield services market. Such contracts bring stability and predictability to our relationship with customers and allow us to better plan our operations, development investment and financing. These particular contracts, which amount to over US$150 million, will provide a stable utilization of several drilling crews for the next three years." About Integra Group Integra Group is a leading Russian independent provider of onshore oilfield services and is also a leading manufacturer in the Russian Federation of drilling rigs with heavy lifting capacity, cementing equipment and certain specialized equipment used in the exploration, development and production of oil and gas. About TNK-BP Headquartered in Moscow, Russia, TNK-BP -- http://www.tnk-bp.ru/ -- is a vertically integrated oil company with a diversified upstream and downstream portfolio in Russia and Ukraine. It owns and operates five refineries (four in Russia and one in Ukraine) and has a retail network of approximately 1,600 sites spread across Central Russia and Ukraine, with a particularly strong position in the Moscow market. TNK-BP employs approximately 65,000 people, mostly located in eight major areas of Russia and Ukraine. The company was formed in 2003 as a result of the merger of BP's Russian oil and gas assets and the oil and gas assets of Alfa, Access/Renova group (AAR). BP and AAR each own 50% of TNK-BP. * * * As reported in the TCR-Europe on Sept. 9, 2008, Standard & Poor's Ratings Services has revised its outlook on Russia-based oil and gas company TNK-BP International Ltd. to stable from negative, after its shareholders agreed in principle on new governance structures. The 'BB' long-term and 'B' short-term corporate credit ratings on the company were affirmed. * Fitch Revises Six Russian Banks' Outlook to Positive from Stable ------------------------------------------------------------------ Fitch Ratings has revised to Stable from Positive the Outlooks on six Russian banks. The Outlook revisions reflect the significant near-term liquidity and asset quality risks which the country's banks face, although these are significantly mitigated by the support currently being provided to the sector by the Russian authorities. As Fitch has stated previously, widespread downgrades of Russian banks are not anticipated at present, a view reinforced by increased strong state support of the sector. However, negative rating actions on individual banks remain possible in light of liquidity and asset quality concerns. In a separate comment published today, "State Support Mitigates Significant Near-Term Risks for Russian Banks", Fitch reviews these issues in more detail. Nomos-Bank: -- Long-term foreign currency IDR: affirmed at 'B+'; Outlook changed to Stable from Positive -- National Long-term rating: affirmed at 'A(rus)'; Outlook changed to Stable from Positive -- Short-term foreign currency IDR: affirmed at 'B' -- Support rating: affirmed at '5' -- Individual rating: affirmed at 'D' -- Support rating floor: affirmed at 'B-' Promsvyazbank: -- Long-term foreign currency IDR: affirmed at 'B+'; Outlook changed to Stable from Positive -- Short-term foreign currency IDR: affirmed at 'B' -- Support rating: affirmed at '4' -- Individual rating: affirmed at 'D' -- Support rating floor: affirmed at 'B' National Reserve Bank: -- Long-term foreign currency IDR: affirmed at 'B'; Outlook changed to Stable from Positive -- National Long-term rating: affirmed at 'BBB(rus)'; Outlook changed to Stable from Positive -- Short-term foreign currency IDR: affirmed at 'B' -- Support rating: affirmed at '5' -- Individual rating: affirmed at 'D' -- Support rating floor: affirmed at "No Floor" B.I.N. Bank: -- Long-term foreign currency IDR: affirmed at 'B-'; Outlook changed to Stable from Positive -- National Long-term rating: affirmed at 'BB(rus)'; Outlook changed to Stable from Positive -- Short-term foreign currency IDR: affirmed at 'B' -- Support rating: affirmed at '5' -- Individual rating: affirmed at 'D' -- Support rating floor: affirmed at "No Floor" National Bank Trust: -- Long-term foreign currency IDR: affirmed at 'B-'; Outlook changed to Stable from Positive -- Short-term foreign currency IDR: affirmed at 'B' -- Support rating: affirmed at '5' -- Individual rating: affirmed at 'D/E' -- Support rating floor: affirmed at "No Floor" Probusinessbank: -- Long-term foreign currency IDR: affirmed at 'B-'; Outlook changed to Stable from Positive -- Long-term local currency IDR: affirmed at 'B-'; Outlook changed to Stable from Positive -- National Long-term rating: affirmed at 'BB+(rus)'; Outlook changed to Stable from Positive -- Short-term foreign currency IDR: affirmed at 'B' -- Support rating: affirmed at '5' -- Individual rating: affirmed at 'D' -- Support rating floor: affirmed at "No Floor" * Fitch: Russian Devt Cos. May Among Worst-Hit by Poor Financing ---------------------------------------------------------------- Fitch Ratings says Russian property development companies are likely to be amongst the worst-hit by a deteriorating financing environment. This is because of a large share of short-term debt in their liquidity profiles, their often significant operational cash outflows, limited cash-on-balance sheet and a virtual absence of meaningful committed un-drawn facility headroom. "At a time when the Russian government has had to intervene to support domestic financial institutions and with increasing question marks over the ability and appetite of all but the largest Russian domestic banks to maintain current funding levels to the real estate sector, liquidity risks associated with Russian property developers have never been higher," says Julian Crush, Senior Director in Fitch's Corporates team. The agency notes yesterday's positive news that state-owned bank VneshEconomBank is to provide up to USD50bn to help refinance Russian corporate debt, but regards this as short-term support rather than a long-term solution to liquidity risks in Russia. To date, preparations by the management of some Russian development companies have been inadequate to deal with the financing market they now find themselves in. Especially for some commercial property- focused developers, there is a fundamental mismatch of assets (long-term) and liabilities (short-term). A lack of both cash-on-balance sheet and committed un-drawn facilities has meant that Russian developers are now highly exposed to the decisions of domestic and international lenders to refinance often substantial amounts of maturing short-term debt. Periodic put options, often included in domestic bond issues, and now more likely to be exercised, could also add to short-term debt needing to be repaid. Reports that Sistema-Hals is likely to sell almost a quarter of its projects to raise up to US$500m of cash and that Mirax is likely to undertake something similar highlight a real deterioration in the funding environment for Russian developers and a realization by management that preserving cash is now key. There has been a general assumption by the management of some Russian property developers that it would always be relatively easy to sell assets and banks would always be willing to refinance short-term debt maturities. This is no longer the case. A general lack of funding could mean selling property assets will become more difficult and could also be the catalyst to a more general fall in real estate prices, potentially leading to further deterioration in bank market sentiment towards real estate lending. A common financing strategy for Russian property developers has been to term-out average debt maturity by accessing international capital markets and undertaking syndicated loan issuance. Both of these financing options currently look difficult, exacerbating the impact of a squeeze in the domestic bank market. Fitch's rated universe of Russian property developers comprises five top-tier companies divided into two broad groups (1) residential-focused 'build and sell' developers (OJSC PIK Group ('BB-'/Rating Watch Negative), OJSC LSR Group ('B+'/Outlook Stable) and JSC OPIN (Open Investments, 'B'/Outlook Positive) for which the pre-sales business model allows cash to be recycled back into the business relatively quickly and (2) commercial property- focused 'build and hold' developers which tend to tie up cash in the business for longer (Sistema-Hals JSC ('B+'/Outlook Negative) and Mirax Group LLC ('B'/ Rating Watch Negative)). While there are variations, Fitch believes the 'build and hold' business model is more exposed to a worsening funding environment than the 'build and sell' model. If financing conditions continue to worsen, there is likely to be a polarization of the Russian development market with top-tier developers possessing strong relationships with the three largest banks (VTB, Sberbank, and Gazprombank) more likely to be able to obtain the ongoing funding to refinance short-term debt maturities. However, these top-tier developers are not immune to funding challenges. Mid-tier developers, supported by second- and third-tier domestic relationship banks, are likely to see far more severe liquidity problems, potentially leading to their failure in some cases. Liquidity risk is only likely to reduce for Russian developers when project pipelines have been built out, new long-term funding is successfully put in place and managers across the sector generally take a more conservative approach to liquidity management. Since April 2008, Fitch has taken a number of negative rating actions related to liquidity concerns for Russian property developers and has recently commented on the worsening liquidity situation in Russia generally. ========= S P A I N ========= * SPAIN: Debt Default Soars; Could Drain Banks' Bad Debt Provision ------------------------------------------------------------------ Spain's debt-laden companies and households are among the world's most vulnerable to intensifying credit market turmoil and are already experiencing soaring debt defaults that will hit Spanish banks, Andrew Hay at Reuters wrote on Sept. 25 2008. Reuters noted that after crises in 1978 and 1993, Spain put in place legal requirements for banks to maintain high reserve levels. The Bank of Spain says current bad debt provisions could be drained by over half before institutions face any stress. Bank of Spain's strict investment regulations mean the sector has zero exposure to U.S. subprime debt, according to the report. However, if the number of defaults is higher than expected and the paralysis in world money markets drags on, problems for banks, and deepen Spain's economic crisis are likely. Reuters commented that the private sector faces the bulk of debt repayments in 2008 and 2009 with Spain having the world's second biggest current account deficit and sliding towards its first recession in 15 years, and with dwindling cash flows. Based on the report, servicing debt has become a problem due to Spain's reliance on foreign funds to balance a current account gap that hit EUR100 billion (US$147 billion), or 10% of GDP, in 2007. Firms and households gorged on cheap euro zone credit between 2002 and 2005 as property boom peaked. However, Reuters noted that this year's chronic overbuilding forced Spain's biggest property company, Martinsa Fadesa, to file for administration. Defaults hit a 10-year high 2.15% of all outstanding bank loans in July, Reuters said. Home owners face high risk and face a record 5.45% Euribor interest rate on mortgages. Home owners also face falling house prices and rapidly rising unemployment in Europe. Meanwhile, Spanish Prime Minister, Jose Luis Rodriguez Zapatero, according to Reuters, remains convinced that the country's banks can withstand the credit shock. He sees debt problems concentrated among property and construction firms which together hold 25% of all outstanding debt. * S&P Sees Rating Downgrades From Spain's Shortfall in Tax Revenue ------------------------------------------------------------------ Standard & Poor's Ratings Services underscored prospective budgetary weakening in Spain's rated autonomous communities over the next two years in its annual report card "Spanish Regions Set To Exert Stricter Budgetary Discipline To Maintain Credit Quality," published Oct. 1, 2008, on RatingsDirect. "The steep drop in tax revenues is the main reason behind the expected deterioration," said S&P's credit analyst Alejandro Casas. "If regional governments don't react to this shortfall by restricting operating expenses, there may be negative rating actions in the short to medium term." The regions bearing the highest risk rely on real estate-related tax revenues, more than the national average. They have also been hit hardest by the sector's abrupt slowdown and have posted historically weak budgetary performances compared with those of domestic peers. The current sharp correction in Spain's economy is taking a heavy toll on tax revenues. According to official estimates, these revenues will decrease by 8.5% in 2008. The falls in corporate tax and value-added tax (VAT) -- respectively 29.6% and 15.8% at end-August 2008 -- are especially large. These drops exceed those seen in Spain's last economic slowdown in 1993-1994, indicating that state transfers to autonomous communities will likely rise by an extremely low 2.2% in 2009. The plunge in real estate taxes (managed by the regions) is even more pronounced, with the main property taxes ("Impuesto de Transmisiones Patrimoniales y Actos Jurados Documentados") falling 42% on average in the first half of 2008. "Although the regional governments have recently announced intentions to tighten operating expenses, we do not expect these efforts to be enough to fully compensate revenue declines," said Mr. Casas. "Budgetary positions stand to weaken during the remaining months of 2008 and especially in 2009, when the repercussions of lower shared taxes with the central government and particularly VAT materialize." Consequently, in 2008, gross savings will likely slip to about 14% of aggregate operating revenues from the 17% peak in 2006. Deficits are set to increase to about 0.7% of regional GDP in 2008, versus zero in 2006. After the reform of Spain's Budgetary Stability Law, the regions will not be required to implement budgetary restructuring plans when they incur deficits that remain under about 1% of regional GDP. As a result of this more lenient regulation, regional deficits will likely rise, especially considering that most regions have disclosed plans to increase investment to revitalize the real estate sector. The regions' deteriorating budgetary positions are likely to push up debt issuance volumes, after a downtrend spanning several years. The main debt ratios will consequently weaken slightly in 2008 and to a greater extent in 2009. Debt will likely represent close to 50% of nonfinancial revenues, or 4x aggregate gross savings. Still, this degree of indebtedness remains relatively low compared with debt levels across Europe. The likelihood of negative rating actions is greatest for the autonomous communities of Catalonia (AA-/Negative/--), the Balearic Islands (AA/Stable/--), Valencia (AA-/Stable/--), and Madrid (AA+/Stable/--), which are expected to feel the pinch more acutely. These regions combine a high proportion of revenues linked to the real estate sector, steeper declines in housing transactions, and relatively weak budgetary performances -- despite the strong jump in revenues -- during recent years. Three of the four abovementioned regions have implemented budgetary clean-up plans through year-end 2008. Spanish autonomous communities will face these challenges amid a changing institutional framework. Amendments to the current financing system are under discussion, with a final agreement unlikely before the last quarter of 2008, which means that the financial impact will probably not feed through until 2009 at the earliest. The new system will result in greater regional fiscal autonomy because regions will receive a larger slice of national taxes shared with the central government. The final net financial impact on each region will depend on the still-uncertain revision of the fiscal equalization plan ("fondo de suficiencia"). But S&P does not expect any region to be negatively affected as a result of the reform itself given the central government's commitment to maintain transfers and the regions' increased autonomy. It is unlikely, however, that the additional funds injected by the central government into the regional financing system will be sufficient to balance revenue losses. =========== S W E D E N =========== FORD MOTOR: To Sell US$500 Million Worth of Shares ------------------------------------------------- Ford Motor Co. has filed with the Securities and Exchange Commission a prospectus supplement and a prospectus that relate to the offer and sale from time to time of shares of its common stock, par value US$0.01 per share, having an aggregate offering price of up to US$500,000,000. The shares of the company's common stock to which the Prospectus Supplement relates will be offered over a period of time and from time to time through Goldman, Sachs & Co., as sales agent. The shares of the common stock to which the Prospectus Supplement relates are in addition to the US$500,000,000 aggregate offering price of shares of our common stock offered pursuant to a Prospectus Supplement dated Aug. 14, 2008. Ford Motor's common stock is quoted on the New York Stock Exchange under the symbol "F." The reported sales price of its common stock as reported on the NYSE on Oct. 1, 2008, was US$4.55 per share. The proceeds from the sale of the shares of common stock to which this prospectus supplement relates will be used to purchase from time to time outstanding debt securities of Ford Motor Credit Company LLC, its indirect, wholly owned subsidiary, in open market or privately negotiated transactions. The shares of the company's common stock to which this prospectus supplement relates generally will be offered and sold through Goldman, Sachs & Co., as sales agent, over a period of time and from time to time in transactions at then-current prices, pursuant to an equity distribution agreement. Accordingly, an indeterminate number of shares of common stock will be sold up to the number of shares that will result in the receipt of gross proceeds of US$500 million. The company will pay Goldman, Sachs & Co. a commission equal to 0.85% of the gross proceeds of the shares sold pursuant hereto. The net proceeds the company receives from the sale of the shares to which the prospectus supplement relates will be the gross proceeds received from such sales less the commissions and any other costs the company may incur in issuing the shares. Full-text copy of Ford Motor's prospectus supplement is available free of charge at http://researcharchives.com/t/s?334c About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin-American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter on Aug. 5, 2008, Fitch Ratings has downgraded the issuer default rating of Ford Motor Company and Ford Motor Credit Company LLC to 'B-' from 'B'. The Rating Outlook remains Negative. The downgrade reflects: the further deterioration in Ford's U.S. sales as a result of economic conditions, an adverse product mix and the most recent jump in gas prices; portfolio deterioration at Ford Credit and heightened concern regarding economic access to capital to support financing requirements; and escalating commodity costs that will remain a significant offset to cost reduction efforts. FORD MOTOR: Registers 35MM Shares for Hourly Employee Savings Plan ------------------------------------------------------------------ Ford Motor Co. has filed with the Securities and Exchange Commission a registration statement for 35,000,000 shares of Common Stock with par value of US$.01. The proposed maximum offering price per share is US$4.54 while the proposed maximum aggregate offering price is US$158,725,000. The number of shares being registered represents the maximum number of additional shares not registered that may be acquired by Fidelity Management Trust Company, as trustee under the Master Trust established and as trustee under the Ford Motor Company Tax-Efficient Savings Plan for Hourly Employees, during 2008 and during subsequent years until a new Registration Statement becomes effective. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin-American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter on Aug. 5, 2008, Fitch Ratings has downgraded the issuer default rating of Ford Motor Company and Ford Motor Credit Company LLC to 'B-' from 'B'. The Rating Outlook remains Negative. The downgrade reflects: the further deterioration in Ford's U.S. sales as a result of economic conditions, an adverse product mix and the most recent jump in gas prices; portfolio deterioration at Ford Credit and heightened concern regarding economic access to capital to support financing requirements; and escalating commodity costs that will remain a significant offset to cost reduction efforts. FORD MOTOR: Registers 50MM Shares for Salaried Workers Stock Plan ----------------------------------------------------------------- Ford Motor Co. has filed with the Securities and Exchange Commission a registration statement for 50,000,000 shares of Common Stock with par value of US$.01. The proposed maximum offering price per share is US$4.54 while the proposed maximum aggregate offering price is US$226,750,000. The number of shares being registered represents the maximum number of additional shares not registered that may be acquired by Fidelity Management Trust Company, as trustee under the Master Trust established and as trustee under the Ford Motor Company Savings and Stock Investment Plan for Salaried Employees, during 2008 and during subsequent years until a new Registration Statement becomes effective. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin-American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter on Aug. 5, 2008, Fitch Ratings has downgraded the issuer default rating of Ford Motor Company and Ford Motor Credit Company LLC to 'B-' from 'B'. The Rating Outlook remains Negative. The downgrade reflects: the further deterioration in Ford's U.S. sales as a result of economic conditions, an adverse product mix and the most recent jump in gas prices; portfolio deterioration at Ford Credit and heightened concern regarding economic access to capital to support financing requirements; and escalating commodity costs that will remain a significant offset to cost reduction efforts. ===================== S W I T Z E R L A N D ===================== MATO ART-DESIGN: Creditors Must File Proofs of Claim by Oct. 23 --------------------------------------------------------------- Creditors owed money by LLC MATO Art-Design are requested to file their proofs of claim by Oct. 23, 2008, to: Madeleine Carabelli Lautengartenstrasse 9 4052 Basel Switzerland The company is currently undergoing liquidation in Riehen. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Aug. 14, 2008. MODE ZAHN: Deadline to File Proofs of Claim Set Oct. 31 ------------------------------------------------------- Creditors owed money by JSC Mode Zahn liquidation, are requested to file their proofs of claim by Oct. 31, 2008, to: Friedrich Burkhalter Alte Landstrasse 165 8801 Thalwil Switzerland The company is currently undergoing liquidation in Thalwil. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Nov. 30, 2007. POLCOPY LLC: Creditors Have Until Oct. 25 to File Claims -------------------------------------------------------- Creditors owed money by LLC PolCopy are requested to file their proofs of claim by Oct. 25, 2008, to: Dr. Monika Ruggli Freiestrasse 204 8032 Zurich Switzerland The company is currently undergoing liquidation in Zurich. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Aug. 20, 2008. RINGEISEN & BELLO: Proofs of Claim Filing Deadline is Oct. 31 ------------------------------------------------------------- Creditors owed money by JSC Ringeisen & Bello are requested to file their proofs of claim by Oct. 31, 2008, to: Friedrich Burkhalter Alte Landstrasse 165 8801 Thalwil Switzerland The company is currently undergoing liquidation in Vitznau. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Nov. 30, 2007. RIVA CONSULT: Creditors' Proofs of Claim Due by Oct. 21 ------------------------------------------------------- Creditors owed money by JSC RIVA CONSULT are requested to file their proofs of claim by Oct. 21, 2008, to: Roman Engler Tannenbachstrasse 12 8942 Oberrieden Switzerland The company is currently undergoing liquidation in COURT. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Aug. 22, 2008. SOLTEGA JSC: Oct. 31 Set as Deadline to File Claims --------------------------------------------------- Creditors owed money by JSC Soltega are requested to file their proofs of claim by Oct. 31, 2008, to: JSC Interhold Othmarstrasse 8 8008 Zurich Switzerland The company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Aug. 26, 2008. SWISSWIN SERVICES: Creditors Must File Claims by Oct. 24 -------------------------------------------------------- Creditors owed money by JSC Swisswin Services are requested to file their proofs of claim by Oct. 24, 2008, to: Trust Company LLC Neuhauser Treuhand Badstrasse 8a 9410 Heiden Switzerland The company is currently undergoing liquidation in St. Gallen. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Aug. 27, 2008. TIAG TRANSWORLD: Deadline to File Proofs of Claim Set Oct. 31 ------------------------------------------------------------- Creditors owed money by LLC Tiag Transworld Interweaving are requested to file their proofs of claim by Oct. 31, 2008, to: Winkelriedstrasse 36 6003 Luzern Switzerland The company is currently undergoing liquidation in Luzern. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Aug. 26, 2008. UBS AG: Restructures Investment Banking Arm; Cuts 2,000 Jobs ------------------------------------------------------------ UBS has announced the repositioning of its Investment Bank following a detailed review of the strategy by the Chairman and CEO of the Investment Bank, Jerker Johansson, members of the Group Executive Committee and the UBS Board of Directors. The Investment Bank will re-prioritize its business portfolio to preserve its core strengths and client franchises across Equities, IBD and FICC, while downsizing or exiting certain business activities. This will lead to greater efficiencies and a further reduction in the Investment Bank�s headcount and balance sheet. Mr. Johansson said, "The ongoing crisis in the financial markets and dramatically changed industry dynamics require us to recalibrate our business. While the revenue outlook is uncertain, these measures will allow us to focus on our strengths, reduce the cost base to a more sustainable level and position our core businesses for growth once fundamentals improve.� As part of the repositioning, UBS Investment Bank will take the following steps: -- Continue to build on its Equities business by leveraging its strengths in cash distribution, derivatives and prime services, while seeking further efficiency gains -- Maintain its leading position in Investment Banking to provide clients with strategic advice and access to the capital markets -- Reposition its Fixed Income, Currencies and Commodities business around client servicing and facilitation. The Investment Bank will exit Commodities (excluding Precious Metals); substantially downsize Real Estate & Securitization and Proprietary trading; and preserve its core Foreign Exchange, Rates and Credit businesses Capacity Adjustment UBS has already taken a number of actions to reduce its balance sheet, implement a new market-based funding model, and reduce risk and headcount. The announcement will lead to further reductions, with the aim of bringing the cost base to a more sustainable level. The Investment Bank will reduce net headcount by an additional 2,000, bringing staffing levels to approximately 17,000 by year- end, a reduction of around 6,000 since the peak in third quarter 2007. Reductions will be predominantly targeted to businesses being exited or downsized in order to protect and sustain our core client franchises. Mr. Johansson added, "A right-sized Investment Bank, positioned alongside the world�s premier Wealth Management and leading institutional Asset Management business, will enable UBS to position itself as one of the core group of universal banks that are likely to dominate in this redrawn landscape." About UBS AG Based in Zurich, Switzerland, UBS AG -- http://www.ubs.com/-- is a global provider of financial services for wealthy clients. UBS's financial businesses are organized on a worldwide basis into three Business Groups and the Corporate Center. Global Wealth Management & Business Banking consists of three segments: Wealth Management International & Switzerland, Wealth Management US and Business Banking Switzerland. The Business Groups Investment Bank and Global Asset Management constitute one segment each. The Industrial Holdings segment holds all industrial operations controlled by the Group. Global Asset Management provides investment products and services to institutional investors and wholesale intermediaries around the globe. The Investment Bank operates globally as a client-driven investment banking and securities firm. The Industrial Holdings segment comprises the non-financial businesses of UBS, including the private equity business, which primarily invests UBS and third-party funds in unlisted companies. UBS AG: S&P Comments on Third Quarter Earnings Guidance ------------------------------------------------------- Standard & Poor's Ratings Services has commented on the third- quarter earnings guidance provided by UBS AG at its extraordinary general meeting. UBS reported that its preliminary estimates indicate a small profit for third quarter, breaking a run of four consecutive quarterly losses. This headline performance is in line with S&P's expectations. When the full third quarter result is announced on Nov. 4, 2008, S&P will assess the extent to which it was influenced by nonrecurring items such as gains on own debt. UBS also disclosed that it has substantially reduced its residual U.S. residential and commercial mortgage-related positions, mainly through disposals. It did not reveal whether it partly financed the disposals, as it did for the US$15 billion portfolio sale to BlackRock in second quarter. UBS additionally reported that it has made further progress in de-leveraging and de-risking the balance sheet, and in managing costs and headcount. Again, S&P will assess the details when the full third quarter result is published. UBS' credit profile remains underpinned by its robust capital and funding profiles, together with the high quality earnings stream from its wealth management businesses. We expects that its regulatory capital ratios would have been broadly stable during the third quarter, helped by close management of risk-weighted assets. The outlook is negative. The ratings could be lowered if UBS' earnings and franchise performance do not improve as expected, or if market conditions remain challenging for a prolonged period. Net new money, which was not disclosed, is a key metric for S&P as an indicator of confidence in UBS' core asset-gathering businesses. Rebuilding its reputation will be a relatively slow process in S&P's view, particularly in view of the current market and economic environment, but material asset outflows could put pressure on the ratings (even if earnings improve). S&P is conscious that UBS also has high-profile legal cases and regulatory investigations to resolve. A positive rating action, such as a stable outlook, is not expected in the coming quarters as it would require UBS to demonstrate a stronger and more consistent performance over a sustained period. Standard & Poor's, a division of The McGraw-Hill Companies (NYSE:MHP), is the world's foremost provider of financial market intelligence, including independent credit ratings, indices, risk evaluation, investment research, and data. About UBS AG Based in Zurich, Switzerland, UBS AG -- http://www.ubs.com/-- is a global provider of financial services for wealthy clients. UBS's financial businesses are organized on a worldwide basis into three Business Groups and the Corporate Center. Global Wealth Management & Business Banking consists of three segments: Wealth Management International & Switzerland, Wealth Management US and Business Banking Switzerland. The Business Groups Investment Bank and Global Asset Management constitute one segment each. The Industrial Holdings segment holds all industrial operations controlled by the Group. Global Asset Management provides investment products and services to institutional investors and wholesale intermediaries around the globe. The Investment Bank operates globally as a client-driven investment banking and securities firm. The Industrial Holdings segment comprises the non-financial businesses of UBS, including the private equity business, which primarily invests UBS and third-party funds in unlisted companies. ZURICH FINANCIAL: US$615 Mil. Losses Tied to Troubled U.S. Cos -------------------------------------------------------------- Zurich Financial Services AG on October 2 wrote down US$615 million in losses relating to troubled U.S. companies hit by the credit crisis, The Associated Press reports. The AP says the adjustments will be included in the company's third quarter results to be released November 13. According to AP, US$275 million of the writedowns stem from the U.S. firm Sigma Financial Corp., while US$45 million come from losses on Washington Mutual Bank's debt instruments and US$295 million on previously declared investments through Lehman Brothers Holdings Inc. Sigma, AP says, declared bankruptcy on October 1. As reported in the Troubled Company Reporter, Washington Mutual was taken over Sept. 25 by U.S. Government regulators. The next day, WaMu and its debtor-affiliate, WMI Investment Corp., filed separate petitions for Chapter 11 relief (Bankr. D. Del. 08-12229 and 08-12228, respectively). When WaMu filed for protection from its creditors, it listed assets of US$32,896,605,516 and debts of US$8,167,022,695. WMI Investment listed assets of US$500,000,000 to US$1,000,000,000 with zero debts. WaMu's banking assets was lately acquired by J.P. Morgan Chase & Co. Lehman filed for chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. History. The September 15 Chapter 11 filing by Lehman Brothers Holdings, Inc., does not include any of its subsidiaries. The Wall Street Journal relates that the Swiss insurer, which said the losses are before taxes, tried to ease investor concerns by saying the impairments make up only 0.3% of its overall investment portfolio of about US$200 billion. "While reflecting the severity of the current market disruptions, [the write-downs] should be seen in the context of our well- diversified portfolio," WSJ quoted Martin Senn, Zurich Financial's chief investment officer, as saying. "We remain confident that our disciplined approach continues to put us in a good position to weather the current financial-market crisis." Headquartered in Zurich, Switzerland, Zurich Financial Services AG -- http://www.zurich.com/-- is a Swiss insurance-based financial services provider, active in North America, Europe, Asia Pacific, Latin America and other markets. It also distributes non- insurance products, such as mutual funds, mortgages and other financial service products, from selected third-party providers. Zurich operates in five segments: General Insurance, which serves the property-casualty needs for individual and business customers; Global Life, which offers unit-linked and protection products, among others; Farmers Management Services, which provides nonclaims related management services to the Farmers Exchanges, prominent writers of personal lines and small commercial lines business in the United States; Other Businesses, which provides reinsurance to the Farmers Exchanges, Centre and capital markets and banking activities, and Corporate Functions, which includes Group holding and financing companies. Zurich serves customers in more than 170 countries. ============= U K R A I N E ============= AGROYUMEKS CJSC: Creditors Must File Claims by October 9 -------------------------------------------------------- Creditors of CJSC Agroyumeks (code EDRPOU 21514737) have until Oct. 9, 2008, to submit proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 12, 2008. The case is docketed as 24/384-B. The Debtor can be reached at: CJSC Agroyumeks Frolovskaya Str. 1/6 04070 Kiev Ukraine DERGACHI TURBOCOMPRESSORS: Creditors Must File Claims by Oct. 9 --------------------------------------------------------------- Creditors of OJSC Dergachi Turbocompressors Plant (code EDRPOU 0235996) have until Oct. 9, 2008, to submit proofs of claim to: The Economic Court of Kharkov Derzhprom 8th Entrance Svoboda Square 5 61022 Kharkov Ukraine The Economic Court of Kharkov commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 21, 2008. The case is docketed as B-24/167-03. The Debtor can be reached at: OJSC Dergachi Turbocompressors Plant Petrovsky Str. 163 Dergachi Kharkov Ukraine KUYBISHEVO BUTTER: Creditors Must File Claims by October 9 ---------------------------------------------------------- Creditors of OJSC Kuybishevo Butter Plant (code EDRPOU 00445601) have until Oct. 9, 2008, to submit proofs of claim to: The Economic Court of Zaporozhje Shaumiana Str. 4 69001 Zaporozhje Ukraine The Economic Court of Zaporozhje commenced bankruptcy proceedings against the company after finding it insolvent on April 4, 2008. The case is docketed as 16/273/07. The Debtor can be reached at: OJSC Kuybishevo Butter Plant Berdiansk District 71154 Zaporozhje Ukraine PROMIN LLC: Creditors Must File Claims by October 9 --------------------------------------------------- Creditors of Agricultural LLC Promin (code EDRPOU 03787561) have until Oct. 9, 2008, to submit proofs of claim to: The Economic Court of Hmelnitskij Nezalezhnosti Square 1 29000 Hmelnitskij Ukraine The Economic Court of Hmelnitskiy commenced bankruptcy supervision procedure on the company. The case is docketed as 3/317-B. The Debtor can be reached at: LLC Promin Novichi 30437 Hmelnitskij Ukraine STRUSOV-AVTO 1962: Creditors Must File Claims by October 9 ---------------------------------------------------------- Creditors of LLC Strusov-Avto 1962 (code EDRPOU 05520299) have until Oct. 9, 2008, to submit proofs of claim to: The Economic Court of Ternopol Ostrozsky Str. 14a 46000 Ternopol Ukraine The Economic Court of Ternopol commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 5, 2008. The case is docketed as 1/B-1000. The Debtor can be reached at: LLC Strusov-Avto 1962 Strusov Terebovlia District Ternopol Ukraine S.T. CHERKASSY: Creditors Must File Claims by October 9 ---------------------------------------------------- Creditors of LLC S.T. Cherkassy Textile (code EDRPOU 32268201) have until Oct. 9, 2008, to submit proofs of claim to: The Economic Court of Cherkassy Shevchenko Avenue 307 18005 Cherkassy Ukraine The Economic Court of Cherkassy commenced bankruptcy proceedings against the company after finding it insolvent on March 27, 2008. The case is docketed as 01/4663. The Debtor can be reached at: LLC S.T. Cherkassy Textile Chekhov Str. 72 Cherkassy Ukraine TROSTIANETS REGIONAL: Creditors Must File Claims by October 9 ------------------------------------------------------------- Creditors of LLC Trostianets Regional Agricultural Chemistry (code EDRPOU 32632432) have until Oct. 9, 2008, to submit proofs of claim to: The Economic Court of Vinnica Hmelnickiy Str. 7 21036 Vinnica Ukraine The Economic Court of Vinnica commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed as 10/147-08. The Debtor can be reached at: LLC Trostianets Regional Agricultural Chemistry Suvorov Str. 36 Trostianets Vinnica Ukraine ZMV COMPANY: Creditors Must File Claims by October 9 ---------------------------------------------------- Creditors of LLC ZMV Company (code EDRPOU 34910877) have until Oct. 9, 2008, to submit proofs of claim to: The Economic Court of Zaporozhje Shaumiana Str. 4 69001 Zaporozhje Ukraine The Economic Court of Zaporozhje commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 20, 2008. The case is docketed as 16/224/08. The Debtor can be reached at: LLC ZMV Company Kulturnaya Str. 50 69027 Zaporozhje Ukraine =========================== U N I T E D K I N G D O M =========================== BRITISH AIRWAYS: September 2008 Traffic Down 4.8 Percent -------------------------------------------------------- In September 2008, passenger capacity, measured in Available-Seat- Kilometers, was 0.8 per cent above September 2007. Traffic, measured in Revenue-Passenger-Kilometers, fell by 4.8 per cent. This resulted in a passenger load factor decrease of 4.3 points versus last year, to 74.0 per cent. Traffic comprised an 8.6 per cent decrease in premium traffic and a 4.1 per cent fall in non- premium traffic. Cargo, measured in Cargo-Tonne-Kilometers, fell by 3.5 per cent. Market conditions Trading conditions continue to be challenging. Longhaul premium traffic has softened after the summer and forward bookings are being affected by the increased anxiety in financial markets and by the uncertain economic outlook. Revenue forecasts for the year carry some risk, although current good yields and the stronger dollar are broadly offsetting the volume impact. Cost initiatives continue in an effort to offset revenue risk. Fuel costs are still expected to be around GBP3 billion for the year. The target continues to be for the business to break even at the operating level. Strategic Developments British Airways completed the second phase of its transfer of longhaul services from Terminal 4 to Terminal 5, increasing the number of flights per day at the terminal from around 420 to 480. Terminal 5 has now looked after ten million customers on more than 75,000 flights. The terminal is working well with very good punctuality and baggage performance. A dedicated check-in area for business class customers in Terminal 5 was introduced. The dedicated area offers the option of check- in kiosks, fast bag drops and customer service desks. The 'Galleries' lounge in the terminal's satellite B building was also opened. British Airways is to launch two new routes from London City Airport, to Geneva and Lyon from Dec. 15. This brings the total number of destinations offered from City Airport to 12. In October the airline will increase frequency to Glasgow from four to five flights a day and Frankfurt services from three to four flights daily. In light of the security situation in Pakistan flights between Heathrow and Islamabad have been suspended indefinitely. British Airways won best business airline at the Conde Nast Traveller awards. The airline also won best business class, best shorthaul carrier and best frequent flier programme at the Business Traveller Awards. British Airways flew the ParalympicsGB team home on a dedicated Boeing 747 with a specially painted gold nose following their 102 medal haul at the Beijing games. British Airways launched a social media platform called Metrotwin.com linking London and New York. BA is the first airline to launch a social media platform of this kind. Metrotwin is an online community that provides expert recommendations by locals for visitors. About British Airways Headquartered in Harmondsworth, England, British Airways Plc -- http://www.ba.com/-- operates of international and domestic scheduled and charter air services for the carriage of passengers, freight and mail, and provides of ancillary services. The British Airways group consists of British Airways plc and a number of subsidiary companies including in particular British Airways Holidays Ltd. and British Airways Travel Shops Ltd. BA has offices in India and Guatemala. * * * British Airways Plc continues to carry a "Ba1" senior unsecured debt rating from Moody's with a stable outlook. ENTERPRISE INNS: Moody's Downgrades CFR to Ba2; Outlook Negative ---------------------------------------------------------------- Moody's Investors Service has downgraded the corporate family rating of Enterprise Inns plc to Ba2 from Ba1. Moody's also downgraded the rating of the company's GBP275 million senior secured notes due 2031 to Baa3 from Baa2. At the same time it assigned a probability of default rating (PDR) of Ba3. The outlook for all ratings is negative. The one notch downgrade reflects the market conditions and underlying industry fundamentals, which, in Moody's view, augur for a worsening performance at ETI. The pub tenants have faced falling beer sales due to harsh competition from supermarkets and, possibly, a change in consumption patterns following the smoking ban in public places. As a result, while the estate's tenants have thus far borne the brunt of the downturn in demand and cushioned the pub group's EBITDA, Moody's believes the impact will be felt more keenly by the landlord, in the form of increased concessions and tenant failures. Furthermore, Moody's notes that Unique's pubs represent a substantial proportion of the group's overall pub portfolio (46% at 30 June 2008) and are managed on a fully integrated basis. Therefore, should Unique's earnings come under pressure, this could have an impact on the quantum of dividends that are capable of being upstreamed to the parent company, putting pressure on the parent's cashflows. Moody's is therefore now placing more emphasis on evaluating Enterprise Inns on a consolidated basis. Moody's will continue to assess Enterprise Inns based on its unconsolidated accounts -- which includes the Unique dividend but excludes its non-recourse debt -- and, at the same time, also take into consideration the group's consolidated accounts when determining the ratings. The Ba2 corporate family rating assigned to the group's unconsolidated parent company continues to reflect ETI's active management of a portfolio of some 7,800 freehold public houses. The large pub estate provides diversification and stability to its revenues, underpinned by long-term leases, low operational gearing and beer volumes which have historically been predictable but in structural decline. More recently trading conditions and by extension beer sales have come under pressure from the ban on smoking in public places, falling consumer confidence and supermarket competition. Nevertheless, Moody's believes the stability of ETI's revenues and flexibly structured debt support its adequate liquidity profile though it is constrained by financial covenants; shorter term debt maturities can be funded from internally generated cash-flow. ETI's highly leveraged financial structure is the main constraining factor on its rating. The Ba3 probability of default rating, one notch below the CFR, is the reflection of an expected high recovery ratio. Financing structures including only bank loans with financial covenants are generally estimated to have recovery expectations of 65%. The bonds benefit from financial covenant protection and securities typical of bank loan structures. Moody's therefore use an assumption of 65% for recovery. However, Moody's do not apply the usual LGD model as the bonds are secured by fixed charges with top-up provisions. The Baa3 senior secured rating factors in a two-notch premium to the Ba2 CFR to reflect the additional security to bondholders represented by (i) a fixed charge security over a portfolio of freehold public houses together with (ii) value and income covenants further requiring Enterprise Inns to maintain the value of this specific security with an over- collateralization of 1.67x and income coverage of 1.5x. The rating outlook is negative due to the uncertainty with respect to the extent to which the current poor operating environment will continue to exert pressure on ETI's financial fundamentals and asset quality. Moody's believes the company's financial policies target a level of leverage that will provide less than optimal financial flexibility should the bad market conditions for the pub industry further undermine its EBITDA. Moody's adds that downward pressure on the ratings would result in the parent company's adjusted net debt to recurring EBITDA (including the dividends from Unique) trending above 6.0x or interest cover trending below 2.5x and for the consolidated group, adjusted net debt to recurring EBITDA trending above 7.5x. Moody's adds that current ratings do not include the potential impact of a conversion by Enterprise Inns into a Real Estate Investment Trust (REIT), which could affect its cash retention ability. Moody's notes that the decision whether to convert to REIT status has been deferred to an undetermined point in time, but this does add uncertainty for bondholders. The following ratings were downgraded with negative outlook: -- Ba2 corporate family rating (from Ba1) -- Baa3 senior secured debt rating (from Baa2) Enterprise Inns plc, headquartered in Solihull, is the second- largest pub operator in the UK with an estate of about 7,800 tenanted pubs country-wide, valued at GBP5.7 billion at September 30, 2007. EUROSAIL 2006-4: Fitch Puts 'BB' Rating Under Negative Watch ------------------------------------------------------------ Fitch Ratings has placed five tranches of Eurosail 2006-4 NP PLC on Rating Watch Negative following the downgrade of Lehman Brothers Holdings Inc. Eurosail 2006-4 NP PLC has counterparty exposure to LBHI or its subsidiaries via a fixed/floating rate swap and a basis rate swap. Due to the affect of these hedges on the transaction, failure to replace the counterparties could potentially result in downgrades, especially on the lower rated notes. Eurosail 2006-4NP Plc -- Class A2c (ISIN XS0274210755): 'AAA'; Outlook Stable -- Class A3a (ISIN XS0275909934): 'AAA'; Outlook Stable -- Class A3c (ISIN XS0275917796): 'AAA'; Outlook Stable -- Class M1a (ISIN XS0275920071): 'AAA'; Outlook Stable -- Class M1c (ISIN XS0275921715): 'AAA'; Outlook Stable -- Class B1a (ISIN XS0274201507): 'AA'; Outlook Stable -- Class C1a (ISIN XS0274203891): 'A'. On Rating Watch Negative -- Class C1c (ISIN XS0274213692): 'A'. On Rating Watch Negative -- Class D1a (ISIN XS0274204196): 'BBB'. On Rating Watch Negative -- Class D1c (ISIN XS0274214310): 'BBB'. On Rating Watch Negative -- Class E1c (ISIN XS0274216018): 'BB'. On Rating Watch Negative The RWN reflects the risk that LBHI or its subsidiaries will be unable to meet part or all of their obligations, leaving the issuer with increased exposure to the risks the swaps were designed to hedge. As of the last IPD in September 2008 the fixed/floating swap generated 3.99% of the available interest revenue, and the basis rate swap generated a further 0.87% of the available revenue. The impact of the fixed/floating swap will reduce over time as loans revert to variable rate, with the majority reverting by June 2009. The basis rate swap can potentially cause more of an affect on portfolio income over time, as approximately 19.52% of the pool will ultimately reference a variable rate linked to the Bank of England base rate, compared to approximately 0.61% at the September 2008 IPD. This transaction is serviced by Capstone Mortgage Services Limited, a subsidiary of Lehman Brothers, which was recently downgraded to a servicer rating of 'RPS3+'/Rating Watch Negative. This transaction is not directly linked to Capstone and therefore the downgrade of the servicer is expected to have no near-term impact on the rating of this deal. However, Fitch will continue to monitor the performance of this transaction and assess any impact that the ongoing bankruptcy of Lehman Brothers has on the ability of Capstone to service the mortgages. Fitch is continuing to assess the other European RMBS transactions as detailed in Fitch's comment of 16 September, 'Fitch Assessing Lehman Counterparty Exposure in 31 European RMBS Transactions'. Further commentary or rating actions will take place as warranted. FORTRESS WAREHOUSING: Taps Liquidators from Smith & Williamson -------------------------------------------------------------- Stephen Robert Cork of Smith & Williamson Ltd. was appointed liquidator of Fortress Warehousing and Distribution Ltd. (Westerlund UK Ltd.) on Sept. 19, 2008, for the creditors' voluntary winding-up procedure. The company can be reached at: Fortress Warehousing and Distribution Ltd. c/o Smith & Williamson Ltd. 25 Moorgate London EC2R 6AY England GUESTINVEST GROUP: Goes Into Administration ------------------------------------------- GuestInvest Group Ltd., a buy-to-let hotel group, has gone into administration, Patrick Collinson of The Guardian reports. The company, which owned Blakes Hotel in London's Mayfair, appointed Deloitte as administrators on Friday, Oct. 3, 2008. Firms which acted for buy-to-let investors blamed HBOS, which holds a 19.9% stake in GuestInvest, for the company's collapse, while others blamed GuestInvest for overspending on acquisitions and development projects, the report discloses. "It is very sad to hear the news that GuestInvest has gone into administration following an HBOS reduction in lending facility," Stuart Law, chief executive of property investment firm Assetz, was quoted by the report as saying. The Blakes Hotel however will continue to trade as usual, the report notes. According to joint administrator Nick Edwards, "it is a very prestigious trading asset and is not subject to any form of insolvency proceeding." Meanwhile, the administrator is assessing the future of the group's other assets and the position of investors, The Guardian relates. HILL STATION: To File for Administration on Lack of Funding ----------------------------------------------------------- The Board of Hill Station plc has commenced the necessary steps to appoint administrators to the company after having carefully considered its financial position. The Board has continued to vigorously explore the options to address its short and medium term financing requirements and has been in negotiations with a number of parties but it has now become clear that such funding will not be forthcoming and that it is necessary for the company to file for administration. On Wednesday, Oct. 1, 2008, Cliff Carter has resigned from the Board as chief executive officer with immediate effect to pursue a possible VCT-backed buyout of the business. On Sept. 24, 2008, trading on AIM for the company's ordinary shares of 0.25 pence each (B033522)(GB00B0335224) fully paid was temporarily suspended. Headquartered in Cwmbran, Wales, Hill Station plc http://www.hillstationplc.co.uk/-- is an ice cream manufacturer. LODESTAR SOUTHWEST: Claims Filing Period Ends December 22 --------------------------------------------------------- Creditors of Lodestar Southwest Ltd. have until Dec. 22, 2008, to send their full names, addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their solicitors (if any), to: M. H. Abdulali Liquidator Moore Stephens 6 Ridge House Ridgehouse Drive Festival Park Stoke on Trent ST1 5TL England M. H. Abdulali of Moore Stephens was appointed liquidator of the company on Sept. 22, 2008. OAKDENE: In Breach of Covenants; UHY Raises Going Concern Doubt --------------------------------------------------------------- Oakdene Homes plc is in breach of its covenants with its lenders and is currently relying on a temporary facility. Discussions around future banking terms are ongoing with its bankers. UHY Hacker Young LLP in its review of the group's condensed financial statements in the half-yearly financial report for the six months ended June 30, 2008 stated if the group is unable to agree amended terms the lenders would be able to request early repayment of all outstanding borrowings. However, it warned in the absence of other funding alternatives the group would be unable to repay the borrowings and therefore there is some uncertainty about the ability of the group to continue as a going concern. According to the group, in common with most housebuilders it has suffered from the effects of the turmoil in global markets which has led to a shortage of mortgage availability and a general lack of buyer confidence. This has resulted in very challenging market conditions and a downturn in turnover and profits. Results and Dividend Turnover for the first six months to June 30, 2008 was GBP11.05 million (2007 restated: GBP18.88 million) and profit before tax and exceptional charges was GBP0.65 million (2007 restated: GBP1.50 million). Basic earnings per share on this basis were 0.8p (2007 restated: 3.0p). The directors have decided that there will be no interim dividend this year (2007: 1.25p). Review of Operations The emphasis in the first half of 2008 has become more and more focused on generating cash and reducing costs as much as possible. As was announced in May 2008 planning permission was received for another 337 units at the group's flagship Newhaven development but construction work will not commence until market conditions improve other than necessary preliminary work. Construction has recently completed at the Reigate and Edenbridge sites and the speed of construction work has been slowed down at the Redhill, Penshurst and Isle of Wight sites. The group will not commence development of any new sites in the near future. In addition, it has reviewed all of its overhead expenditure and made significant savings. Unfortunately savings in overheads usually means reductions in staffing levels and it has reduced staff by approximately one third by way of natural wastage and redundancies. Sales at all sites have been affected by current market conditions but the group is continuing to sell, albeit at a slower rate than it would wish, and at lower net prices. Outlook "Although in recent weeks we have seen a welcome increase in reservation rates and a reduction in cancellations, it is too early to predict whether this is a sign of an upturn in the market or whether it is entirely due to normal seasonal factors," Philip Stephens, chairman of Oakdene, said. The primary objective of the Board is to reduce our borrowings and gearing by concentrating on selling residential units and sites and restricting expenditure as much as possible. As mentioned above we believe we have a very significant asset value that can be developed and our main duty is to protect this asset value for shareholders. This policy will take precedence over the achievement of short term profits." Oakdene Homes plc -- http://www.oakdene-homes.co.uk/-- is an established residential development company based in Reigate, Surrey. The company operates predominantly in South London Boroughs, Surrey, Sussex and Kent. QUEBECOR WORLD: Has Until January 31 to File Chapter 11 Plan ------------------------------------------------------------ The United States Bankruptcy Court for the Southern District of New York extended Quebecor World Inc.'s exclusive rights to file a plan of reorganization until January 31, 2009; and the period to solicit acceptances of that plan until March 31, 2009. The complexity of the Debtors' businesses and corporate structure support the requested extension of the Exclusive Periods, Michael J. Canning, Esq., at Arnold & Porter LLP, in New York, told the Court. Mr. Canning related that subsequent to the Debtors' filing of their first request to extend the exclusive periods in April 2008, in light of the size of their cases, the need to address the operational issues associated with their businesses, and the challenges arising from the cross-border nature of their financial affairs, they have determined that they will require a period of time longer than the four-month extension of time granted in their first extension request to formulate and confirm a plan of reorganization. Mr. Canning assured the Court that the Debtors are not seeking an extension of the Exclusive Periods to pressure creditors into accepting their reorganization demands. He points out that the Debtors' Chapter 11 cases have not been pending long enough to result in material prejudice to any creditors, and there is no indication that the Debtors are using the Chapter 11 process to extract particular demands from any creditor group. "To the contrary, the purpose of the Debtors' present request for an extension of the Exclusive Periods is to ensure that the Debtors have an opportunity to respond to and address the concerns of all creditor groups in formulating restructuring proposals and, ultimately, a plan of reorganization," Mr. Canning told the Court. Section 1121(b) of the Bankruptcy Code provides a debtor with an exclusive right to file a plan of reorganization during the first 120 days after the Petition Date. If a debtor files a plan during the exclusive filing period, Section 1121(c)(3) grants an additional 60 days during which the debtor may solicit acceptances of that plan and no other party-in-interest may file a plan. Section 1121(d) provides that on request of a party-in- interest made within the exclusive periods after notice and a hearing, the court may for cause reduce or increase the 120-day period or the 180-day period. However, the 120-day period may not be extended beyond a date that is 18 months after the petition date and the 180-day period may not be extended beyond a date that is 20 months after the petition date. About Quebecor World Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE: IQW) -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. It has 127 printing and related facilities located in North America, Europe, Latin America and Asia. In the United States, it has 82 facilities in 30 states, and is engaged in the printing of books, magazines, directories, retail inserts, catalogs and direct mail. The company has operations in Mexico, Brazil, Colombia, Chile, Peru, Argentina and the British Virgin Islands. Ernst & Young, Inc., the monitor of Quebecor World Inc., and its affiliates' reorganization proceedings under the Canadian Companies' Creditors Arrangement Act, filed a petition under Chapter 15 of the Bankruptcy Code before the U.S. Bankruptcy Court for the Southern District of New York on September 30, 2008, on behalf of QWI (Bankr. S.D.N.Y. Case No. 08-13814). The chapter 15 case is before Judge James M. Peck. Kenneth P. Coleman, Esq., at Allen & Overy LLP, in New York, serves as counsel to the chapter 15 petitioner. QWI and certain of its subsidiaries commenced the CCAA proceedings before the Quebec Superior Court (Commercial Division) on January 20, 2008. The following day, 53 of QWI's U.S. subsidiaries, including Quebecor World (USA), Inc., filed petitions under Chapter 11 of the U.S. Bankruptcy Code. The Honorable Justice Robert Mongeon oversees the CCAA case. Francois-David Pare, Esq., at Ogilvy Renault, LLP, represents the Company in the CCAA case. Ernst & Young Inc. was appointed as Monitor. Quebecor World (USA) Inc., its U.S. subsidiary, along with other U.S. affiliates, filed for chapter 11 bankruptcy before the U.S. Bankruptcy Court for the Southern District of New York (Lead Case No. 08-10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP, represents the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors is represented by Akin Gump Strauss Hauer & Feld LLP. Based in Corby, Northamptonshire, Quebecor World PLC -- http://www.quebecorworldplc.com/-- is the U.K. subsidiary of Quebecor World Inc. that specializes in web offset magazines, catalogues and specialty print products for marketing and advertising campaigns. The company employs around 290 people. Quebecor PLC was placed into administration with Ian Best and David Duggins of Ernst & Young LLP appointed as joint administrators effective Jan. 28, 2008. QWI is the only entity involved in the CCAA proceedings that is not a Debtor in the Chapter 11 Cases. QWI is a public company created in Canada by Certificate of Amalgamation dated January 1, 1990, pursuant to the Canada Business Corporations Act. Its subordinate voting shares, Series 3 Preferred Shares, and Series 5 Preferred Shares are listed on the Toronto Stock Exchange, and it is the corporate parent of more than 100 subsidiaries. With its subsidiaries, QWI provides high value, complete market solutions and pre-print, print, and post-print services to the leading retailers, branded goods companies, catalogers, and publishers of magazines, books, and other printed media all around the world. Ernst & Young, according to Quebecor World Bankruptcy News, has explained that QWI requires certain limited relief in the U.S. to ensure the fair and efficient administration of the CCAA proceedings. The Monitor thus commenced the Chapter 15 case to ensure that certain orders of the Canadian Court, particularly the Claims Procedure Order, and ultimately any order resolving the CCAA Proceeding, are enforced in the United States. The Monitor has asked the U.S. Bankruptcy Court to: * recognize QWI's CCAA proceeding as a "foreign main proceeding" as defined in Section 1502(4) of the U.S. Bankruptcy Code; * afford QWI all relief given to foreign main proceedings automatically upon recognition; * enforce a claims procedure order issued by the Canadian Court on September 29, 2008; and * approve a form and manner of service of the Chapter 15 Petition. QWI, according to the Monitor, operates the second largest commercial printer in Canada with 16 facilities in five Canadian provinces offering a diversified mix of printed products and related value-added services, both within Canada and internationally. The vast majority of QWI's operations are conducted in Canada, and its administrative functions and corporate marketing, finance, and in-house legal departments are centralized in Montreal. Aside from a single satellite office located in Fribourg, Switzerland, all of QWI's facilities, tangible assets, and employees are located in Canada. All of QWI's strategic decision making and corporate management functions occurs at the Montreal headquarters, the Monitor has told the U.S. Bankruptcy Court. All of QWI's board members and executives, including Jacques Mallette, QWI's President and CEO, reside in Canada. All board meetings are held in Montreal and QWI's books, records and key documents are maintained in Montreal. QWI's principal banking agreements and debt obligations are centralized in Canada. QWI holds bank accounts for the Canadian operations and corporate activities at Royal Bank of Canada and the Canadian Imperial Bank of Commerce. The credit agreement between QWI as borrower, and RBC, as administrative agent, dated as of December 15, 2005, evidencing the "Bank Syndicate Facility" is governed by Canadian law and provides for the exclusive jurisdiction of the courts of the province of Quebec, judicial district of Montreal. As of January 15, 2008, the aggregate amount outstanding under the Bank Syndicate Agreement was approximately US$733 million. QWI is also party to a credit agreement dated as of January 13, 2006, with Societe Generale (Canada) as lender providing for an equipment financing credit facility in the aggregate amount of the Canadian dollar equivalent of EUR136,165,415 expiring on July 1, 2015. The Equipment Financing Agreement is governed by the laws applicable in Quebec and provides for the exclusive jurisdiction of the courts of the province of Quebec, judicial district of Montreal. As of January 16, 2008, the aggregate amount outstanding under the Equipment Financing Agreement was US$154,926,403. As of June 30, 2008, Quebecor World's unaudited consolidated balance sheet showed total assets of US$3,412,100,000 total liabilities of US$4,326,500,000 preferred shares of US$62,000,000 and total shareholders' deficit of US$976,400,000. The Hon. Robert Mongeon of the Quebec Superior Court has extended until Dec. 14, 2008, the stay under the Canadian Companies' Creditors Arrangement Act. (Quebecor World Bankruptcy News; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) TAYLOR WIMPEY: Remain In Talks Over Revising Covenant Structure --------------------------------------------------------------- Taylor Wimpey plc provides an update on its financing discussions with its debt providers. At the time of the Interim Results, Taylor Wimpey announced that it was engaged in discussions with certain of the Group's debt providers to amend the future provisions of our existing borrowing agreements, which were likely to be concluded before the New Year. These discussions are continuing on a constructive basis and the coordinating banks have indicated that it is their intention to agree to replace the current covenants with a revised set of covenants which are more appropriate to the current market environment. The recent unprecedented events in world financial markets have reinforced the Board's cautious view of the short term outlook for UK housing. In the current environment, securing a comprehensive financing structure that is robust under all reasonable downside scenarios is essential. To that end the Board has decided to extend the current discussions with debt providers to include applicable Eurobond holders, which will prolong the negotiation process. As a consequence, it is now likely that a revised covenant structure will be concluded early next year before the announcement of our Preliminary Results. The Group will update the market on current trading in its Interim Management Statement during November 2008 and will provide further information on the progress of discussions in due course. The Group remains in compliance with its existing covenant package and has adequate facilities available. About Taylor Wimpey Headquartered in London, Taylor Wimpey plc -- http://www.taylorwimpey.com/-- builds homes in the U.K., North America, Spain and Gibraltar. Taylor Wimpey also operates in the Construction sector under the Taylor Woodrow brand. Taylor Wimpey plc's major markets are experiencing a significant downturn, characterized by significantly lower weekly sales rates and lower average selling prices than in recent years. Taylor Wimpey remains in full compliance with its banking covenants. However, without an amendment to the terms of its banking facilities, in certain negative market scenarios Taylor Wimpey might breach one or more banking covenants at the first testing date in 2009. * HSBC Holdings Mulls Reduction of 1,100 Banking and Markets Jobs ----------------------------------------------------------------- HSBC Holdings Plc said Sept. 26, 2008, that it was cutting 1,100 jobs in its global banking and markets operation, or 4% of the unit's total, as it weathers the global financial crisis, Reuters reported. Globally, HSBC employs about 335,000 people. Hong Kong-based spokesman Gareth Hewett told Reuters that the move is a result of market conditions, the economic environment, and the company's cautious outlook for 2009. The jobs are in front and back office operations, Reuters noted. About half of the positions affected are in the company's headquarters in the United Kingdom, and 100 of the positions are in Hong Kong, where its large Asian operations are based. Despite the reduction, Mr. Hewett said that the company is well positioned for the next wave of global growth, Reuters reported. Reuters noted that HSBC has felt the sting of the subprime mortgage crisis in the United States and has booked write-downs of US$18.7 billion since last year. In August, the bank posted a 28% fall in first-half pre-tax profit to US$10.2 billion as it took a US$14 billion hit from bad debts on U.S. home loans and asset writedowns. In its global banking and markets business, pre-tax profit fell 35% in the first half to US$2.1 billion, although that was a 37% increase from the second half of 2007. About HSBC Holdings Headquartered in London, HSBC Holdings Plc (LON: HSBA) -- http://www.hsbc.com/-- is one of the largest banking and financial services organizations in the world. HSBC's international network comprises around 9,500 offices in 85 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With listings on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by around 200,000 shareholders in some 100 countries and territories. The shares are traded on the New York Stock Exchange in the form of American Depositary Receipts. * Mace & Jones Warns Directors Over Market Responsibilities ----------------------------------------------------------- Mace & Jones is urging company directors to ensure they fully understand their responsibilities under relevant legislation or face serious penalties if found guilty of wrongful trading. Mace & Jones says in the current unstable financial climate directors of companies need to be extra careful of ignoring the various directors duties contained within both the Companies Act 2006 and the Insolvency Act 1986. Directors need to take legal advice as soon as their company hits financial difficulty. Failure to act risks facing personal liability for debts and potentially a criminal record. "It is vital directors take early legal or financial advice to avoid any risk of fraudulent or wrongful trading," Mace & Jones Insolvency and Corporate Recovery partner Dominic Vincent said. "When a company is insolvent a director's position changes. Under insolvency legislation they can be personally liable if a liquidator can prove they were operating while knowing there was no reasonable prospect of avoiding liquidation." Mr. Vincent said directors who can show they acted in good faith, on the advice of suitably qualified professionals, are more likely to minimize the risks of personal liability or of disqualification proceedings being brought against them under the Company Directors Disqualification Act 1986. "Directors need to continue monitoring the financial position of the company," Mr. Vincent added. "They also need to formulate viable strategies, hold regular meetings, keep major creditors informed and make announcements about the company's shares. Deploying these methods show responsibility and should help protect the directors." Mace & Jones is recognized as a law firm of quality and experience and aims to build long-term relationships with their clients, to provide a personal and cost-effective service. The firm's specialist solicitors, with offices in Liverpool, Manchester and Knutsford, provide a wide range of legal services. * S&P Sees Gov't Support as Rating Factor for European Banks ------------------------------------------------------------ Since the beginning of the credit crunch, European governments, central banks, and regulators have taken a wide range of actions designed to support the European banking system, in some cases affecting bank ratings says Standard & Poor's Ratings Services in a report titled, "Credit FAQ: Government Support As A Ratings Factor For Private Sector European Banks." "Ongoing support from authorities, chiefly in the form of prudential regulation and preferential access to central bank liquidity, is an essential part of bank creditworthiness, in good times and bad," said S&P's credit analyst Richard Barnes. This is a necessary factor mitigating the high leverage and funding mismatch that are inherent features of banks' business models. As a result, it is unrealistic to fully disentangle banks' "stand-alone" creditworthiness from this ongoing external support. Since the credit crunch began, systemwide support has increased through enhanced central bank liquidity and, in some countries, extension of deposit protection programs. These measures have helped support credit ratings by preventing rapid deterioration in banks' funding and liquidity positions. Such measures are consistent with S&P's definition of European authorities as "supportive," in that they ensure financial stability through the regulatory, legal, and liquidity frameworks. "On occasion, though, such systemwide measures have been insufficient for specific institutions, and authorities have intervened more directly, usually in anticipation of deeper problems," said Mr. Barnes. These actions have included private sector solutions (Lloyds TSB Bank PLC's acquisition of HBOS PLC), direct capital injections (Fortis and Dexia groups), liquidity provision (Hypo Real Estate Bank AG), nationalization (Northern Rock PLC, Bradford & Bingley PLC), and guarantees (Irish banks). "We still regard this extraordinary external support as consistent with our supportive definition, because in extreme systemic stress, the preferred routes of enhanced central bank liquidity and private sector solutions can be either insufficient or unavailable," said Mr. Barnes. "These supportive actions reflect extraordinary circumstances rather than a fundamental shift in government policies." In some cases, therefore, S&P has explicitly factored such external support into its ratings -- for example, in the case of Bradford & Bingley since July 2008, and most recently in the case of Fortis. The ratings of several Irish banks also benefit from the government's guarantee. Subordinated debtholders do not necessarily benefit from extraordinary support, potentially leading us to widen the rating differential between classes of creditors. Extraordinary support is by definition not a long-term phenomenon. Government support also comes at a price, in some cases through direct fee arrangements in exchange for guarantees, and S&P expects enhanced prudential regulation will call for higher capital and liquidity buffers. Over the long term, the fundamentals of European banks are likely to drive their relative creditworthiness, rather than differences in government support. * S&P Looks Into the Impact of Bailouts on Sovereign Ratings ------------------------------------------------------------ As the banking crisis has crossed the Atlantic, the number of sizeable financial institutions affected in Europe has raised investor interest regarding how resilient European sovereign ratings are likely to be as governments absorb more and more banks with impaired balance sheets. In response to this, Standard & Poor's Ratings Services published a Credit FAQ, titled "What Effect Will The Recent Bank Bailouts In Western Europe Have On Sovereign Ratings?" S&P understands that the consequence of recent developments in financial markets for the fiscal performance of Western European sovereigns, with the exception of Iceland, has been limited so far. These entities generally remain well placed in their respective rating categories and have the capacity to take on more debt or run down their assets should the need arise in the current worsening financial climate. "In our view, the solvency of Western European sovereigns may not, however, be immune to the fall-out from the financial crisis if events take an unexpected dramatic turn toward a depression-like scenario," S&P's credit analyst Moritz Kraemer said. "In such an environment, which is unexpected but not impossible, ratings of even highly rated sovereigns would have to be reassessed." As it stands, however, the intervention by Belgium, Luxembourg, and the Netherlands to lend financial support to Fortis Bank (A/Developing/A-1) has no impact on their respective sovereign ratings and neither does the capital injection in Dexia Bank (AA-/Stable/A-1+) by Belgium, France, and Luxembourg. Similarly, the nationalization of Northern Rock PLC (A/Positive/A-1), and the loan book of Bradford & Bingley (--/--/A-1), do not affect the sovereign ratings on the U.K, nor has the sovereign rating on the Republic of Ireland been affected by its announced bank support plan as no budgetary cost has been incurred. The fundamental difference between other recent European bailouts and Iceland's EUR600 million equity injection into Glitnir Bank (BBB/Negative/A-3) is one of magnitude. In S&P's view, the wholly nationally owned Icelandic banking system is oversized relative to the size of the economy, with net external debt ratios among the highest ratios for its rated sovereigns. S&P considers that this week's bail-out of Glitnir constitutes a very real macroeconomic risk that elevates the threats to the government's own balance sheet, and consequently lowered the sovereign rating on Iceland. "In our view, the relatively modest current costs of the bank bail-outs, apart from Iceland, are comparatively easy to shoulder and the privileged access to capital markets should comfortably allow European sovereigns to finance them without undermining their creditworthiness," Mr. Kraemer said. "Over the long term, we believe that solvency risks, particularly those related to ageing societies, could additionally lead to negative pressure on Western European sovereign ratings, and such risks therefore loom much larger than the knock-on effects of the current credit crisis." * European Firms Face Tight Liquidity & Tougher Economy, S&P Says ----------------------------------------------------------------- The credit quality of European corporates will continue to fall through 2009, as companies face toughening economic conditions and tightening liquidity, Standard & Poor's Ratings Services reported. "We expect default rates for European high-yield credits to increase considerably over the next several quarters," said S&P's credit analyst Andreas Zsiga in the report, titled "Corporate Credit Quality In Europe: The Worst Is Yet To Come". In the current environment, sound liquidity positions and prudent treasury management are important for credit quality, as is the ability and willingness to downsize operations in the face of a weaker operating environment. By the same token, corporates with weak liquidity and limited flexibility to adjust to a slower economic environment will suffer and may be exposed to rating or outlook changes. There is plenty of evidence to suggest that things will continue to deteriorate. Doing business is becoming tougher across most industries as economies weaken. Liquidity is tight, especially for speculative-grade companies; lenders are nervous; and terms are more onerous for borrowers. Above all, it is difficult to predict from one month to the next what conditions will be like for those issuers looking to tap the markets. Based on the current outlook and CreditWatch distribution, the sectors most at risk are building materials, chemicals, consumer goods, retail, forest products, packaging, and airlines, whereas the telecoms, capital goods, and metals and mining sectors are the least exposed. * Moody's Says Recent Market Turmoil Slow Global Economic Growth ---------------------------------------------------------------- Recent market turmoil may depress business and consumer confidence and slow global economic growth, exacerbating existing trends that have been causing corporate credit quality to deteriorate for more than a year, says Moody's Investors Service in a new report on the global credit outlook for non-financial companies. "Business and consumer confidence appear to have been shaken by recent events and might not recover for several quarters," says Daniel Gates, Moody's Chief Credit Officer for Corporate Finance, and the lead author of the report. Moody's observes that a number of companies are trimming their spending plans due to increasing apprehension about the economic outlook and their future access to debt and equity capital. A substantial pull back in business investment at a time when consumer spending is flagging could further slow the global economy, which would precipitate a surge in bankruptcy filings by companies over the next year, according to the report. Consumer spending is expected to be pressured by tighter lending standards as well as by fragile confidence, Moody's says. The outlook for consumer spending is particularly weak in the US, Europe, and Japan, which collectively account for more than half of the world's economic output. Consumer spending trends also appear to be slowing in other countries, including Australia, Singapore and South Korea. While no region is immune from a global slowdown, concerns are greatest for companies whose business is heavily reliant upon the EU countries, Japan and North America, where the pace of economic activity is visibly slowing. Weak growth in these mature markets may also be a drag on countries with high growth rates, such as China and India, affecting companies in those markets as well. Companies whose business is dependent upon discretionary consumer spending are particularly likely to be hurt, according to the report. The damage may be most severe for already seriously ailing companies in consumer-oriented sectors such as housing, autos, consumer durables, restaurants, retail, apparel, gaming, and airlines. "These companies are struggling with high leverage, disappointing cash flow, and weak customer demand, which is already proving to be a lethal combination for many firms," says Mr. Gates. "Recent events may make a bad situation worse by undercutting consumer spending and economic growth in the months ahead, which would push many more weak companies over the edge of the cliff," he says. Moody's also predicts that lenders will further tighten credit standards for corporate borrowers, severely limiting access to new financing that could stave off bankruptcy for troubled companies. Moody's expects that credit conditions will become tighter over the near term because capital-constrained financial institutions will be more reluctant to make loans, especially at a time when the number of defaulting companies is rising rapidly. * ECB Likely to Cut Interest Rates by November ---------------------------------------------- The European Central Bank, trashing its belief that inflation primarily threatens the economy, is mulling to cut interest rates, which will be its first cut in five years, various reports say. The reports say that the ECB began to feel that inflation fears outweigh concern about the growing financial crisis that is creeping through Europe. ECB's President Jean-Claude Trichet signaled preparation for a reduction in the euro zone's official borrowing costs, according to Time Online. Markets expect ECB to cut rates by November. The ECB has pegged eurozone rates at 4.25%, the reports say. According to the reports, the ECB met Thursday last week on calls for an interest rate cut amid growing financial crisis. Analysts said the bank likely would hold its benchmark interest rate steady as inflation outweighs worries about the meltdown. The Associated Press writes that a cut would bring ECB in line with its major peers, including the U.S. Federal Reserve. The New York Times reports that according to Paul de Grauwe, a professor at the Catholic University of Leuven in Belgium, ECB's reluctance to ease credit despite contraction in the euro zone economy contracted in summer showed a lack of flexibility. The 15-nation euro zone is fighting high inflation, low growth and dim short-term prospects for consumer and industrial demand as the global financial crisis unfolds. World's Central Banks' Rescue Moves Reuters reported that central banks across the world scrambled late September to meet a desperate demand for cash, both in their own currencies and the U.S. dollar, as the White House's US$700 billion bailout plan ran into roadblocks. At that time, overnight dollar funds remained in a broad 2.5% to 3.5% range in Asia, bankers in Singapore said, as cited by Reuters. Short-term lending rates in local currencies jumped with Singapore dollar overnight rates at 2%, their highest since end- January. The Swiss National Bank offered US$9 billion for one week to address severe quarter-end stresses, Reuters noted. The ECB soon followed suit, with US$35 billion for one week. The Bank of England said it would lend US$30 billion. The Reserve Bank of Australia (RBA) launched its first ever repurchase operation in U.S. dollars and all US$10 billion on offer was hungrily snapped up at 3.165%, well above the minimum bid rate of 2.35%. In South Korea, the Finance Ministry said it would inject US$10 billion or more into the local swap market until the middle of October to stave off persistent dollar funding shortages. The RBA and the Bank of Japan also kept adding extra cash to their own banking systems, while Vietnam lifted the rate it pays on bank reserves to reduce the cost of borrowing, Reuters added. * Blackstone Predicts European Bankruptcies to Surpass 1990s ------------------------------------------------------------ The number of European companies going bust in the next few years will surpass anything seen in the early 1990s because firms bloated by debt have minimal room to put their finances in order, Simon Davies of Blackstone Group said, as cited by Reuters' William Kemble-Diaz on Sept. 26, 2008. According to Reuters, Mr. Davies stated at a Reuters Restructuring Summit that more firms would be forced into bankruptcy than in previous downturns. This is due to the unprecedented speed with which their financial health could worsen as liquidity shriveled. He said covenants had been stripped to the bone as lenders scrambled to provide funding when the going was good, leading to a credit boom and to a subsequent bust whose fallout would be hard to manage. The credit default and insolvency process is increasingly packaged as one event rather than as separate chapters in a progressively worsening credit story, he added. Kenneth Emery at Moody's, as cited by Reuters, said that about 75% of all debt defaults in the United States have related to bankruptcies while in Europe, the figure is around 50%. The gap is largely due to differences in bankruptcy regimes as liquidation is a more likely outcome of bankruptcy in Europe than in the United States, Mr. Emery said. He stressed that U.S. companies filing for Chapter 11 have greater room for maneuver to work on a solution, such as a debt restructuring. European bankruptcy legislation is more varied and untested and could be less debtor- friendly than in the United States, Reuters observed. There was also a greater desire among European banks, companies, and policymakers "not to let things default at this stage," Mr. Davies was quoted by Reuters as saying. These efforts were only likely to ensure European bankruptcies peaked later than in the United States, he said. * BOND PRICING: For the Week Sept. 29 to Oct. 3, 2008 ----------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRIA ------- Republic of Austria 1.000 06/22/22 EUR 68.94 BELGIUM ------- Fortis BanK SA/NV 4.375 02/01/17 EUR 72.32 5.757 10/04/17 EUR 66.02 4.250 03/23/21 EUR 62.50 FRANCE ------ Alcatel S.A. 4.750 01/01/11 EUR 14.63 Altran Technologies S.A. 3.750 01/01/09 EUR 12.76 Calyon 6.000 06/18/47 EUR 40.68 CAP Gemini S.A. 2.500 01/01/10 EUR 50.74 1.000 01/01/12 EUR 41.38 Club Mediterranee S.A. 3.000 11/01/08 EUR 67.61 4.380 11/01/10 EUR 45.46 CMA CGM 5.500 05/16/12 EUR 70.08 Credit Agricole 4.500 02/22/26 EUR 73.97 Essilor Intl 1.500 07/02/10 EUR 70.15 FCC Rome Alliannce 2.256 01/08/21 EUR 70.86 Soc Air France 2.750 04/01/20 EUR 20.25 Wavecom S.A. 1.750 01/01/14 EUR 17.85 GERMANY ------- Allgemeine HypothekenBank Rheinboden 5.080 12/10/14 EUR 64.38 City of Moscow 5.064 10/20/16 EUR 76.37 Deutsche Schifbk 4.200 01/23/09 EUR 99.69 Escada AG 7.500 04/01/12 EUR 69.14 ICELAND ------- Glitnir Banki HF 4.375 02/05/10 EUR 66.42 6.000 03/05/12 GBP 75.45 IRELAND ------- Alfa Bank 8.625 12/09/15 USD 78.54 8.635 02/22/17 USD 75.57 Allied Irish Bks 5.625 11/29/30 GBP 63.99 5.250 09/10/25 GBP 63.55 Banesto Finance Plc 6.120 11/07/37 EUR 6.11 Depfa ACS Bank 0.500 03/03/25 CDN 47.58 0.250 07/08/33 CDN 29.12 Gazprombank 6.500 09/23/15 USD 72.04 GE Cap Eur Fund 4.125 10/27/16 EUR 75.45 4.350 11/03/21 EUR 69.75 4.625 02/22/27 EUR 66.08 6.025 03/01/38 EUR 71.28 GE Capital UK 5.125 05/24/23 GBP 70.47 5.875 01/18/33 GBP 72.41 6.250 05/05/38 GBP 79.86 UT2 Funding Plc 5.320 06/30/16 EUR 67.15 ITALY ----- CIR SPA 5.750 12/16/24 EUR 70.09 LUXEMBOURG ---------- Acergy SA 2.250 10/11/13 USD 63.64 Bank of Moscow 6.810 05/10/17 US$ 64.46 Beverage Pack 9.500 06/15/17 EUR 73.12 Cirsa Capital LX 7.875 07/15/12 EUR 69.20 Del Monte Fin SA 6.630 05/24/06 EUR 31.56 Evraz Group SA 8.250 11/10/15 USD 73.86 8.250 11/10/15 USD 74.78 9.500 04/24/18 USD 75.39 Gaz Capital SA 5.136 03/22/17 EUR 70.32 5.440 11/02/17 EUR 70.62 6.510 03/07/22 USD 73.32 7.288 08/16/37 USD 71.77 Globus Capital 8.500 03/05/12 USD 67.92 NETHERLANDS ----------- ABN Amo Bank B.V. 6.000 03/16/35 EUR 60.81 6.250 06/29/35 EUR 59.77 Air Berlin Finance B.V. 1.500 04/11/27 EUR 28.17 ALB Finance BV 9.000 11/22/10 USD 59.85 9.750 02/14/11 GBP 55.73 8.750 04/20/11 USD 44.77 7.875 02/01/12 EUR 44.24 9.250 09/25/13 USD 47.33 Biopetrol Finance 4.000 02/21/12 EUR 47.50 BK Ned Gemeenten 0.500 06/27/18 CDN 67.59 0.500 02/24/25 CDN 47.62 Cemex Fin Europe 4.750 03/05/14 EUR 77.04 Centercrdt Intl 8.625 01/30/14 USD 64.84 8.000 02/02/11 USD 67.79 Cirio Del Monte 7.750 03/14/05 EUR 7.98 Clondalkin BV 8.000 03/15/14 EUR 74.12 8.000 03/15/14 EUR 73.41 DAF BV 6.750 06/15/10 EUR 2.90 EM.TV Finance B.V. 5.250 05/08/13 EUR 3.80 Ford Capital BV 9.500 06/01/10 USD 71.47 GMAC Intl Fin BV 5.750 05/21/10 EUR 68.85 4.800 12/15/10 EUR 74.85 4.850 01/15/11 EUR 74.13 4.900 01/15/11 EUR 74.21 5.100 01/15/11 EUR 74.55 Turanalem Fin BV 7.875 06/02/10 USD 78.12 6.250 09/27/11 EUR 62.37 7.750 04/25/13 USD 59.94 8.000 03/24/14 USD 59.58 8.500 02/10/15 USD 59.59 8.250 01/22/37 USD 57.49 8.250 01/22/37 USD 57.45 NORWAY ------ Eksportfinans 0.250 07/14/33 CAD 30.81 SPAIN ----- Ayt Cedulas Caja 3.750 06/30/25 EUR 78.50 Bancaja 4.380 02/14/17 EUR 72.66 General De Alqui 2.750 08/20/12 EUR 71.73 SWITZERLAND ----------- Cytos Biotechnology 2.875 02/20/12 CHF 71.93 UNITED KINGDOM -------------- Anglian Water Finance Plc 2.400 04/20/35 GBP 49.35 Aspire Defence 4.670 03/31/40 GBP 62.23 4.670 03/31/40 GBP 62.28 Barclays Bank Plc 5.700 07/14/25 USD 71.28 Bradford&Bin BLD 7.625 02/16/10 GBP 29.97 4.875 06/28/17 EUR 91.99 5.750 12/12/22 GBP 29.84 6.625 06/16/23 GBP 29.81 Brit Insurance 6.630 12/09/30 GBP 70.40 Britannia Building Society 5.875 03/28/33 GBP 64.34 5.750 12/02/24 GBP 70.36 Broadgate Finance 5.100 04/05/33 GBP 69.39 Cattles plc 7.130 07/05/17 GBP 70.98 City Of Kiev 8.000 11/06/15 USD 77.30 Daily Mail & Gen 5.750 12/07/18 GBP 73.81 6.375 06/21/27 GBP 67.98 Derby Eealthcare 5.560 06/30/41 GBP 70.54 Enterprise Inns 6.380 09/26/31 GBP 68.62 Exim of Ukraine 6.800 10/04/12 USD 73.38 F&C Asset Mngmt 6.750 12/20/26 GBP 65.39 FCE Bank Plc 4.625 10/25/10 NOK 70.82 7.125 01/16/12 EUR 73.09 Focus Diy Fin 9.375 03/03/15 GBP 35.62 Ford Cred Europe 7.125 01/15/13 EUR 68.63 Greene King Fin 5.106 03/15/34 GBP 70.68 5.702 12/15/34 GBP 71.32 Unique Pub Fin 6.460 03/30/32 GBP 69.43 ********* 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, Melanie Pador, Marie Therese V. 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 * * *