/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/081014.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Tuesday, October 14, 2008, Vol. 9, No. 204 Headlines A U S T R I A BABA MURA: Claims Registration Period Ends October 29 PROGATE TRADING: Claims Registration Period Ends October 28 V.V. LLC: Claims Registration Period Ends October 28 B E L G I U M FORTIS NV: Shareholders to Sue Firm Over Group Break-Up G E R M A N Y 3 MD BAUPROJEKT: Claims Registration Period Ends October 17 BAU-BERATUNG-SANIERUNGS: Claims Registration Ends October 17 BIT-KANAL GMBH: Claims Registration Period Ends Nov. 17 BODENWERK GMBH: Claims Registration Period Ends October 17 COMMUNIQUEATE WERBEAGENTUR: Claims Registration Ends Oct. 20 DKSV GMBH: Claims Registration Period Ends October 20 DOEBELNER TEXTILPFLEGE: Claims Registration Period Ends Oct. 20 EUBAU BAUSYSTEME: Claims Registration Period Ends October 20 HELIOGRAPH INGENIEURGESELLSCHAFT: Claims Filing Ends October 17 INTERPE GMBH: Claims Registration Period Ends October 20 ODDS VERMITTLUNGS: Claims Registration Period Ends Oct. 17 PORTMONEY MUSIC: Claims Registration Period Ends October 20 SNOW FUN: Claims Registration Period Ends October 17 SPIRIT CENTER: Claims Registration Period Ends October 17 TECHNOLOGIE-ZENTRUM ZITTAU: Claims Registration Ends October 17 TREND WOHNBAU: Claims Registration Period Ends Oct. 17 TUI AG: Board Approves Sale of Hapag-Lloyd Stake to Albert Ballin VOLT MEDIA: Claims Registration Period Ends October 17 XPEDI GMBH: Claims Registration Period Ends October 17 I C E L A N D ICESAVE: Iceland and UK Delegations Met to Discuss Issues ICESAVE: Icelandic Gov't. to Compensate Dutch Depositors KAUPTHING: UK Unit Urges Icelandic Gov't. to Honor Guarantee LANDSBANKI ISLANDS: Dismisses Rumors Over Fund Transfers * Icelandic Gov't. Seeks Short-Term Assistance for Central Bank I R E L A N D CORNISH HOMES: Liquidators Identify 162 Creditors DROGHEDA UNITED: To File for Examinership Today PLAZA DEVELOPMENTS: Taps Grant Thornton as Liquidators TRICASTLE CONSTRUCTION: Directors to Propose Liquidation * EU Commission Approves Revised Irish Support Scheme for Banks I T A L Y ALITALIA SPA: CAI Extends Conditional Offer Until End of October K A Z A K H S T A N ASIA-TRANS LLP: Creditors Must File Claims by November 21 AVTORID LLP: Claims Deadline Slated for November 21 BOLASHAK LTD: Claims Filing Period Ends November 21 CONSULTING-7 LLP: Creditors' Claims Due on November 21 INTERNATIONAL SUPPORT: Claims Registration Ends November 21 GWANWOO CONSTRUCTION: Creditors Must File Claims by November 21 NAM WON ENGINEERING: Claims Deadline Slated for November 21 TIANSHAN INTERNATIONAL: Claims Filing Period Ends November 21 K Y R G Y Z S T A N M. FRUNZE: Creditors Have Until Nov. 12 to Submit Claims N E T H E R L A N D S ROMPETROL GROUP: Fitch Holds B+ Rating; Changes Outlook to Stable N O R W A Y FRONTIER DRILLING: S&P Retains Watch Neg. on B- Corporate Rating P O R T U G A L SAGRES STC: Fitch Holds 'B' Rating on EUR53MM Class T Notes R U S S I A ALROSA CO: KIT Acquisition Cues S&P to Put BB Rating on Watch Neg. AMUR-KOMPLEKT LLC: Creditors Must File Claims by November 19 BUGULMINSKIY PORCELAIN: Creditors Must File Claims by November 3 FOUNDRY PRODUCTION: Chelyabinsk Bankruptcy Hearing Set Nov. 11 LESOVIK LLC: Creditors Must File Claims by November 3 MASHINOSTROITEL LLC: Creditors Must File Claims by November 19 ROS-BIO-TEKH-MOBY: Creditors Must File Claims by November 3 SEVERSTAL OAO: Lowers Production Estimates for October 2008 SITRONICS JSC: Weakening Credit Profile Cues Fitch's Neg. Outlook SPETS-MED-EQUIPMENT: Creditor Must File Claims by November 3 * S&P Revises Outlook on 13 Russian Banks to Negative from Stable S W I T Z E R L A N D ALEXANDRIA JSC: Creditors Must File Proofs of Claim by Nov. 28 FILM FINANCIERS: Deadline to File Proofs of Claim Set Nov. 20 GLAMOR NETWORK: Creditors Have Until Nov. 30 to File Claims INNOPLANT LLC: Proofs of Claim Filing Deadline is Oct. 31 MOTION PICTURE: Creditors' Proofs of Claim Due by Nov. 20 SPM METALLBAUTECHNIK: Oct. 25 Set as Deadline to File Claims STEINER EXPRESS: Creditors Must File Proofs of Claim by Oct. 25 VISANO DISTRIBUTIONS: Deadline to File Claims Set Oct. 31 T U R K E Y FORD OTOSAN: Fitch Cuts Issuer Default Rating to 'B' U K R A I N E ALTA LLC: Creditors Must File Claims by October 16 ALTAIR-2004 LLC: Creditors Must File Claims by October 16 D-CART LLC: Creditors Must File Claims by October 17 ETALON-LIS LLC: Creditors Must File Claims by October 16 ECOMEBLIS LLC: Creditors Must File Claims by October 16 HIMROST LLC: Creditors Must File Claims by October 17 INFORMRESOURCE LLC: Creditors Must File Claims by October 16 METAL INDUSTRIAL: Creditors Must File Claims by October 17 PRIZMA LLC: Creditors Must File Claims by October 17 RODAN-AGRO LLC: Creditors Must File Claims by October 16 U N I T E D K I N G D O M ALBA 2007-1: Fitch Puts Class F Notes' BB Rating on Watch Negative AMARANTH ACCESSORIES: Taps Joint Administrators from BDO Stoy ASK LEISURE: Brings in Joint Administrators from Tenon Recovery BARCLAYS BANK: To Raise GBP6.5 Billion Additional Capital HBOS PLC: Government to Buy GBP8.5BB Shares Under Rescue Plan IVMD UK: Calls in Joint Administrators from BDO Stoy Hayward JOPEJO LTD: Appoints Joint Administrators from BDO Stoy Hayward KAUPTHING SINGER: Urges Icelandic Gov't. to Honor Guarantee LANDSBANKI ISLANDS: Dismisses Rumors Over Fund Transfers LEHMAN: Provides Update on Outstanding Settlement Transactions LUCAS OF MANSFIELD: Goes Into Administration LUDGATE FUNDING: S&P Junks Rating on Class S Notes to CCC from B- PIPE & PROCESS: Taps Tenon Recovery to Administer Assets ROSEBYS GROUP: Closes 31 Outlets; Axes 186 Jobs SIGNUM FINANCE: S&P Junks Series 2005-7 Combo Notes to CC From BB UK DIGGERS: Appoints Joint Administrators from Baker Tilly * S&P Notes Continuing Market Pressure For UK RMBS Transactions * UK Gov't. Implements Financial Support Measures for Banks * European Commission Approves UK Support Scheme for Banks * FSA Fines Alliance & Leicester GBP7 Million for PPI Failings * EU Commission Gives Guidance on Measures for Banks in Crisis * Large Companies with Insolvent Balance Sheet ********* ============= A U S T R I A ============= BABA MURA: Claims Registration Period Ends October 29 ----------------------------------------------------- Creditors owed money by LLC Baba Mura Transport have until Oct. 29, 2008, to file written proofs of claim to the court- appointed estate administrator: Dr. Felix Stortecky Schulerstrasse 18 2nd floor Top 8 1010 Vienna Austria Tel: 513 88 37 Fax: DW 37 E-mail: office@stortecky.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Nov. 12, 2008, for the examination of claims at: The Trade Court of Vienna Room 1707 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Sept. 10, 2008, (Bankr. Case No. 2 S 112/08w). PROGATE TRADING: Claims Registration Period Ends October 28 ----------------------------------------------------------- Creditors owed money by LLC Progate Trading have until Oct. 28, 2008, to file written proofs of claim to the court-appointed estate administrator: Dr. Friedrich Nusterer Riemerplatz 1 3100 St. Poelten Austria Tel: 02742/47087 Fax: 02742/47089 E-mail: ra-nusterer@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:20 a.m. on Nov. 18, 2008, for the examination of claims at: The Land Court of St. Poelten Room 216 Second Floor St. Poelten Austria Headquartered in St. Poelten, Austria, the Debtor declared bankruptcy on Sept. 16, 2008, (Bankr. Case No. 14 S 139/08v). V.V. LLC: Claims Registration Period Ends October 28 ---------------------------------------------------- Creditors owed money by LLC V.V. have until Oct. 28, 2008, to file written proofs of claim to the court-appointed estate administrator: Dr. Susi Pariasek Gonzagagasse 15 1010 Vienna Austria Tel: 533 28 55 Fax: 533 28 55 28 E-mail: office@anwaltwien.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:55 a.m. on Nov. 11, 2008, for the examination of claims at: The Trade Court of Vienna Room 1607 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Sept. 11, 2008, (Bankr. Case No. 28 S 114/08f). ============= B E L G I U M ============= FORTIS NV: Shareholders to Sue Firm Over Group Break-Up ------------------------------------------------------- Fortis N.V.'s shareholders are set to file a legal action against the company in two weeks regarding the group's break-up by Belgium, Luxembourg and the Netherlands, Reuters reported yesterday, October 13. Euroshareholders president Peter Paul de Vries said at Monday's conference that shareholders want to know what went wrong and want to be assured of better economic treatment, Reuters noted. Euroshareholders is a European umbrella group for national small investor associations. Euroshareholders, according to Reuters, suggests that the Dutch enterprise court in Amsterdam rule on the allowance of the disputed break-up amid the lack of shareholder approval. The group also wants to probe Fortis officials' alleged mismanagement and whether it misled investors about the company's health. Reuters reports that what remains of Fortis Group are its international insurance business and a 66% holding of a EUR10.4 billion portfolio of structured credit products. Belgian Offer On Sunday, the Belgian government offered Fortis shareholders a part of any profit the Belgian state makes from its investment in BNP Paribas in 2014, Reuters said. The offer, Reuters noted, is only for those who bought Fortis shares by July 1 and only covers up to 5,000 shares per person. Mr. De Vries referred to the offer as "amateuristic" in some ways, Reuters related. According to Paul Huybrechts, VFB Flemish shareholders association chairman, it would be fairer if a part of the Belgian state's stake in BNP Paribas were transferred to Fortis Group, Reuters added. As reported by the Troubled Company Reporter-Europe on Oct. 7, 2008, Fortis announced that the Belgian government has acquired the remaining share (50% + one share) of Fortis Bank SA/NV. The Belgian government has reached an agreement with BNP Paribas on the subsequent transfer of a majority interest in Fortis Bank SA/NV. Furthermore, Fortis announced that BNP Paribas will acquire 100% of Fortis Insurance Belgium. The Fortis Board of Directors has approved these transactions. Reuters said that Fortis shares have not traded since the deals were unveiled. Worth almost EUR30 in April 2007, when Fortis revealed its desire to buy the Dutch parts of ABN AMRO, the shares went down to as low as EUR5.422. Euroshareholders argue, according to the report, that including share issues, Fortis had lost some EUR50 billion in the past 18 months. About Fortis N.V. Headquartered in Brussels, Belgium, Fortis N.V. -- http://www.fortis.com/-- is an international provider of banking and insurance services to personal, business and institutional customers. The Company operates in four core businesses: Retail Banking, Asset Management and Private Banking, Merchant Banking and Insurance. The Company delivers a package of financial products and services through its own channels and via intermediaries and other partners. In May 2007, Fortis N.V. finalized the acquisition of a 50.45% stake in Pacific Century Insurance Holdings Limited. As of June 15, 2007, the Company had acquired a 98.59% stake in Pacific Century Insurance Holdings Limited. In July 2008, the Company sold International Asset Management Limited (IAM). * * * As reported by the Troubled Company Reporter on Oct. 9, 2008, Moody's Investors Service downgraded Fortis SA/NV and Fortis N.V. long term issuer ratings to Baa2 from Baa1, and the ratings were placed under review for possible downgrade. Debt ratings benefiting from subordinated and preferred guarantees from the joint holding companies were downgraded to Baa3 and Ba1 respectively. Certain securities benefiting from joint and several guarantees from the holding companies and Fortis ASR Levensverzkering N.V. were confirmed at Baa3 with a developing outlook. Moody's also downgraded the insurance financial strength rating of Fortis Insurance Company (Asia) Ltd (FICA) to Baa1 from A3, and the backed senior unsecured debt of Fortis Capital (Asia) Ltd, a wholly-owned subsidiary of FICA, to Baa2 from Baa1. These ratings now carry a developing outlook. The Group's CP rating was affirmed at P-2 and placed under review for possible downgrade. ============= G E R M A N Y ============= 3 MD BAUPROJEKT: Claims Registration Period Ends October 17 ----------------------------------------------------------- Creditors of 3 MD Bauprojekt und Immobiliengesellschaft mbH have until Oct. 17, 2008, to register their claims with court-appointed insolvency manager Arthur Naujok. Creditors and other interested parties are encouraged to attend the meeting at 10:30 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 Offenbach am Main Hall 162N First Floor Kaiserstrasse 63065 Offenbach am Main 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: Arthur Naujok Mittelseestrasse 48 D 63065 Offenbach am Main Germany Tel: 069/80 01 70 1 Fax: 069/80 02 05 4 The District Court of Offenbach am Main opened bankruptcy proceedings against 3 MD Bauprojekt und Immobiliengesellschaft mbH on Sept. 3, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: 3 MD Bauprojekt und Immobiliengesellschaft mbH Erhan Tuerker, Manager Pestalozzistrasse 25 64720 Michelstadt Germany BAU-BERATUNG-SANIERUNGS: Claims Registration Ends October 17 ------------------------------------------------------------ Creditors of Bau-Beratung-Sanierungs GmbH have until Oct. 17, 2008, to register their claims with court-appointed insolvency manager Dr. Carsten Krage. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 21, 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 Neumuenster Meeting Hall B.126 Law Courts Boostedter Strasse 26 Neumuenster 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. Carsten Krage Wall 55 24103 Kiel Germany The District Court of Neumuenster opened bankruptcy proceedings against Bau-Beratung-Sanierungs GmbH on Sept. 10, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Bau-Beratung-Sanierungs GmbH Pestalozziweg 50 24536 Neumuenster Germany BIT-KANAL GMBH: Claims Registration Period Ends Nov. 17 ------------------------------------------------------- Creditors of BiT-Kanal GmbH have until Nov. 17, 2008, to register their claims with court-appointed insolvency manager Joerg A. Wunderlich. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on Dec. 15, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bitburg Hall 128 Gerichtsstrasse 2/4 54634 Bitburg 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 A. Wunderlich Bahnhofsplatz 8, D 54292 Trier Germany The District Court of Bitburg opened bankruptcy proceedings against BiT-Kanal GmbH on Sept. 15, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: BiT-Kanal GmbH Attn: Harald Lehmann, Manager Bergstrasse 7 54649 Dackscheid Germany BODENWERK GMBH: Claims Registration Period Ends October 17 ---------------------------------------------------------- Creditors of Bodenwerk GmbH have until Oct. 17, 2008, to register their claims with court-appointed insolvency manager Marco Kuhlmann. Creditors and other interested parties are encouraged to attend the meeting at 9:50 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 Wuppertal Meeting Hall A234 Second Floor Eiland 2 42103 Wuppertal 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: Marco Kuhlmann Simonsstrasse 80 42117 Wuppertal Tel: 0202 7692110 Fax: 0202 7692112 The District Court of Wuppertal opened bankruptcy proceedings against Bodenwerk GmbH on Sept. 4, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Bodenwerk GmbH Attn: Thomas Wolfgang Trapmann, Manager Scheidtstr. 35 a 42369 Wuppertal Germany COMMUNIQUEATE WERBEAGENTUR: Claims Registration Ends Oct. 20 ------------------------------------------------------------ Creditors of commUNIQUEate Werbeagentur GmbH have until Oct. 20, 2008, to register their claims with court-appointed insolvency manager Joachim Glaser. Creditors and other interested parties are encouraged to attend the meeting at 8:36 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 Montabaur Hall 106 First Stock Bahnhofstrasse 47 56410 Montabaur 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: Joachim Glaser Konrad-Adenauer-Str. 2a 56414 Wallmerod Germany Tel: 06435-96400 Fax: 06435-964024 The District Court of Montabaur opened bankruptcy proceedings against commUNIQUEate Werbeagentur GmbH on Sept. 9, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: commUNIQUEate Werbeagentur GmbH Attn: Frank Schulz, Manager Gut Neuhof 57642 Alpenrod Germany DKSV GMBH: Claims Registration Period Ends October 20 ----------------------------------------------------- Creditors of dksv GmbH have until Oct. 20, 2008, to register their claims with court-appointed insolvency manager Josef Nachmann. Creditors and other interested parties are encouraged to attend the meeting at 9:15 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 Room 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 Muenchen Germany Tel: 089/24217737 Fax: 089/24217738 The District Court of Munich opened bankruptcy proceedings against dksv GmbH on Sept. 9, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: dksv GmbH Willy-Brandt-Allee 2 81829 Muenchen Germany DOEBELNER TEXTILPFLEGE: Claims Registration Period Ends Oct. 20 --------------------------------------------------------------- Creditors of Doebelner Textilpflege GmbH have until Oct. 20, 2008, to register their claims with court-appointed insolvency manager Michael Hawelka. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on Nov. 18, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Leipzig Hall 056 Ground Floor Enforcement Court Bernhard Goering Strasse 64 04275 Leipzig Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Michael Hawelka Nonnenstrasse 37 04229 Leipzig Germany Tel: 0341/4866414 Fax: 0341/4866428 E-mail: HHH.Leipzig@t-online.de The District Court of Leipzig opened bankruptcy proceedings against Doebelner Textilpflege GmbH on Sept. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Doebelner Textilpflege GmbH Staupitzstrasse 24-25 04720 Doebeln Germany EUBAU BAUSYSTEME: Claims Registration Period Ends October 20 ------------------------------------------------------------ Creditors of EUBAU Bausysteme GmbH have until Oct. 20, 2008, to register their claims with court-appointed insolvency manager Dr. Vera Mai. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 10, 2008, at which time the insolvency manager will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Dortmund Hall 3.201 Gerichtsplatz 22 44135 Dortmund 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. Vera Mai Gerichtsstrasse 19 44135 Dortmund Germany The District Court of Dortmund opened bankruptcy proceedings against EUBAU Bausysteme GmbH on Aug. 15, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: EUBAU Bausysteme GmbH Attn: Karsten Wabnitz, Manager Fuchsweg 10 44267 Dortmund Germany HELIOGRAPH INGENIEURGESELLSCHAFT: Claims Filing Ends October 17 --------------------------------------------------------------- Creditors of Heliograph Ingenieurgesellschaft mbH have until Oct. 17, 2008, to register their claims with court-appointed insolvency manager Carsten Lange. Creditors and other interested parties are encouraged to attend the meeting at 9:00 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 Aachen Meeting Hall K 5 Third Floor Alter Posthof 1 52062 Aachen Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Carsten Lange Laurentiusstrasse 16-20 52072 Aachen Germany Tel: 024141344550 Fax: 0241413445511 The District Court of Aachen opened bankruptcy proceedings against Heliograph Ingenieurgesellschaft mbH on Sept. 9, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: heliograph Ingenieurgesellschaft mbH Hander Weg 17 52072 Aachen Germany INTERPE GMBH: Claims Registration Period Ends October 20 -------------------------------------------------------- Creditors of Interpe GmbH Handel & Dienstleistungen have until Oct. 20, 2008, to register their claims with court-appointed insolvency manager Friedrich von Kaltenborn-Stachau. Creditors and other interested parties are encouraged to attend the meeting at 10:15 a.m. on Nov. 18, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Tostedt Meeting Room I Area CE.02 Linden 23 21255 Tostedt 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: Friedrich von Kaltenborn-Stachau Jungfernstieg 30 20354 Hamburg Germany Tel: 040/3 50 06-188 Fax: 040/3 50 06 176 The District Court of Tostedt opened bankruptcy proceedings against Interpe GmbH Handel & Dienstleistungen on Sept. 2, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Interpe GmbH Handel & Dienstleistungen Attn: Joerg Lohmann, Manager Postweg 42 21629 Neu Wulmstorf Germany ODDS VERMITTLUNGS: Claims Registration Period Ends Oct. 17 ---------------------------------------------------------- Creditors of ODDS Vermittlungs-GmbH i.L. have until Oct. 17, 2008, to register their claims with court-appointed insolvency manager Dr. Christoph Schulte-Kaubruegger. Creditors and other interested parties are encouraged to attend the meeting at 8:30 a.m. on Nov. 26, 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 Dortmund Hall 3.201 Second Floor Gerichtsplatz 1 44135 Dortmund 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. Christoph Schulte-Kaubruegger Koenigswall 21 44137 Dortmund Germany The District Court of Dortmund opened bankruptcy proceedings against ODDS Vermittlungs-GmbH i.L. on Sept. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ODDS Vermittlungs-GmbH i.L. Mallinckrodtstr. 2 44145 Dortmund Germany PORTMONEY MUSIC: Claims Registration Period Ends October 20 ----------------------------------------------------------- Creditors of PORTMONEY Music Club GmbH have until Oct. 20, 2008, to register their claims with court-appointed insolvency manager Stephan Neubauer. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 13, 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: Stephan Neubauer Spitalerstrasse 4 20095 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against PORTMONEY Music Club GmbH on Aug. 14, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: PORTMONEY Music Club GmbH Attn: Orhan Yazici, Manager Hohenesch 13 22765 Hamburg Germany SNOW FUN: Claims Registration Period Ends October 17 ---------------------------------------------------- Creditors of Snow-Fun-Park Wittenburg GmbH have until Oct. 17, 2008, to register their claims with court-appointed insolvency manager Bettina Schmudde. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on Nov. 17, 2008, at which time the insolvency manager will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Schwerin Hall 1 Demmlerplatz 14 19053 Schwerin 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: Bettina Schmudde Jungfernstieg 51 20354 Hamburg Germany Tel: 040/ 8081360 The District Court of Schwerin opened bankruptcy proceedings against Snow-Fun-Park Wittenburg GmbH on Sept. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Snow-Fun-Park Wittenburg GmbH Attn: Hans-Gerd Hanel, Manager Zur Winterwelt 1 19243 Wittenburg Germany SPIRIT CENTER: Claims Registration Period Ends October 17 --------------------------------------------------------- Creditors of Spirit Center GmbH have until Oct. 17, 2008, to register their claims with court-appointed insolvency manager Christine Frosch. Creditors and other interested parties are encouraged to attend the meeting at 11:30 a.m. on Nov. 6, 2008, at which time the insolvency manager will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Trier Hall 56 Justizstrasse 2,4,6 54290 Trier 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: Christine Frosch Simeonstrasse 5, D 54290 Trier Germany Tel: 0651/9941499 Fax: 0651/9941061 E-mail: Kanzlei.Frosch@t-online.de The District Court of Trier opened bankruptcy proceedings against Spirit Center GmbH on Sept. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Spirit Center GmbH Porta-Nigra-Platz 1 54292 Trier Germany Attn: Gunnar Schafer, Manager Fuerstenhofenstr. 66 54329 Konz Germany TECHNOLOGIE-ZENTRUM ZITTAU: Claims Registration Ends October 17 --------------------------------------------------------------- Creditors of Technologie-Zentrum Zittau GmbH Technologie- und Innovationszentrum in der Euroregion Neisse have until Oct. 17, 2008, to register their claims with court-appointed insolvency manager Helgi Heumann. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Nov. 25, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Dresden Hall D131 Olbrichtplatz 1 01099 Dresden 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: Helgi Heumann Koenigsbruecker Str. 33 01099 Dresden Germany E-mail: http://www.raheumann.de The District Court of Dresden opened bankruptcy proceedings against Technologie-Zentrum Zittau GmbH Technologie- und Innovationszentrum in der Euroregion Neisse on Sept. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Technologie-Zentrum Zittau GmbH Technologie- und Innovationszentrum in der Euroregion Neisse Rathenaustrasse 18a 02763 Zittau Germany TREND WOHNBAU: Claims Registration Period Ends Oct. 17 ------------------------------------------------------ Creditors of Trend Wohnbau GmbH have until Oct. 17, 2008, to register their claims with court-appointed insolvency manager Markus Froehlich. Creditors and other interested parties are encouraged to attend the meeting at 1:30 p.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 Ulm Hall 3 First Floor Zeughausgasse 14 89073 Ulm 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: Markus Froehlich c/o Rechtsanwalte Froehlich & Kuenkele Radgasse 2 89073 Ulm Germany Tel: 0731/2055993-0 Fax: 0731/2055993-90 E-mail: Willkommen@froehlich-rae.de Web site: www.froehlich-rae.de The District Court of Ulm opened bankruptcy proceedings against Trend Wohnbau GmbH on Sept. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Trend Wohnbau GmbH Olgastr. 152 89073 Ulm Germany Attn: Brigitte Ottopal, Manager Wagnerstr. 7 89160 Dornstadt Germany TUI AG: Board Approves Sale of Hapag-Lloyd Stake to Albert Ballin ----------------------------------------------------------------- The Supervisory Board of TUI AG, on Sunday, Oct. 12, 2008, approved the sale of all shares in Hapag-Lloyd AG to a subsidiary of Albert Ballin KG at an enterprise value of EUR4.45 billion. At the same time, the Board approved the acquisition of a 33.33% entrepreneurial stake in the new company at a purchase price of EUR700 million. The sale is subject to approval by the anti-trust authorities. The Board also approved payment of an appropriate special dividend to the TUI shareholders following the completion of the sale. The amount to be distributed for the 2008 financial year will be determined in the framework of the preparation of the annual financial statements. The Group's strong liquidity and financial situation resulting from the sale will open up investment opportunities for further expansion of TUI's tourism business. The options explored in this connection also include a takeover of the outstanding shares in TUI Travel PLC. About TUI Headquartered in Hanover, Germany, TUI AG -- http://www.tui-group.com/-- engages in the tourism and shipping sectors. The Company's core activities are in the tourism business, focusing mainly on the markets of Central, Northern and Western Europe. TUI AG's shipping and logistics activities are contained within its Hapag-Lloyd Container Linie GmbH and CP Ships Ltd. Subsidiaries. * * * TUI AG continues to carry Moody's Investors Service's B1 Corporate Family Rating, B3 unsecured rating, and B3 subordinated rating with negative outlook. Moody's confirmed the B1 Corporate Family Rating for TUI in December 2007. At the same time, Moody's lowered the group's B2 unsecured rating and confirmed the subordinated rating at B3. TUI also carries ratings of "BB-" long-term corporate credit and all issue ratings from Standard & Poor's on CreditWatch with negative implications. VOLT MEDIA: Claims Registration Period Ends October 17 ------------------------------------------------------ Creditors of Volt Media GmbH have until Oct. 17, 2008, to register their claims with court-appointed insolvency manager Gerd Honsdorf. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 7, 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 Paderborn Meeting Hall 230a Second Floor Bogen 2-4 33098 Paderborn 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: Gerd Honsdorf Detmolder Strasse 57-59 33100 Paderborn Germany Tel: 05251-25107 Fax: 05251-23699 The District Court of Paderborn opened bankruptcy proceedings against Volt Media GmbH on Sept. 12, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Volt Media GmbH Residenzstr. 23 33104 Paderborn Germany XPEDI GMBH: Claims Registration Period Ends October 17 ------------------------------------------------------ Creditors of Xpedi GmbH & Co. KG have until Oct. 17, 2008, to register their claims with court-appointed insolvency manager Alexander Saponjic. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 7, 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 Landshut Meeting Hall 9/I Maximilianstrasse 22-24 Landshut 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: Alexander Saponjic Bachstr. 6 84036 Landshut Germany Tel: 0871/943210 Fax: 0871/9432150 The District Court of Landshut opened bankruptcy proceedings against Xpedi GmbH & Co. KG on Sept. 8, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Xpedi GmbH & Co. KG Richard-Schirrmann-Weg 2 84028 Landshut Germany ============= I C E L A N D ============= ICESAVE: Iceland and UK Delegations Met to Discuss Issues ---------------------------------------------------------- Delegations of Iceland and the United Kingdom met in a friendly atmosphere in Reykjavik on Saturday, Oct. 11, 2008, to discuss issues of mutual interest related to the current financial crisis, with the objective to reach a mutually satisfactory solution on the issues concerned. Significant progress was made on retail depositors of Icesave with arrangements agreed in principle for an accelerated payout to depositors. The delegations agreed to work closely on the other remaining issues over the coming days. About Icesave Icesave is the UK branch of Landsbanki Islands hf. It is an EEA bank that is authorized by the Fjarmalaeftirlitio (FME), the financial services regulator in Iceland. ICESAVE: Icelandic Gov't. to Compensate Dutch Depositors -------------------------------------------------------- After constructive deliberations, the Dutch and Icelandic governments have agreed on a solution regarding the Dutch depositors of Landsbanki IceSave savings accounts. This was announced by the Dutch minister of Finance, Wouter J. Bos and the Icelandic minister of Finance, Arni M. Mathiesen. Both ministers are pleased that they have found a solution on the matter. Minister Bos said that he is especially glad that there is now clarity for the Dutch depositors. Minister Mathiesen added what mattered is that the issue is now solved. The agreement states that the Icelandic government will compensate each Dutch depositor up to a maximum of EUR20.887. The Dutch government will provide a loan to Iceland to enable this restitution and the Dutch Central Bank is to settle the depositors' claims. About Icesave Icesave is the UK branch of Landsbanki Islands hf. It is an EEA bank that is authorized by the Fjarmalaeftirlitio (FME), the financial services regulator in Iceland. KAUPTHING: UK Unit Urges Icelandic Gov't. to Honor Guarantee ------------------------------------------------------------ Chief Minister Tony Brown MHK, on Friday, Oct. 10, 2008, confirmed that a parental guarantee was given in September 2007 by Kaupthing Bank hf, registered in Iceland, to discharge the liabilities, including client deposits, of its Isle of Man subsidiary Kaupthing Singer & Friedlander (Isle of Man) Ltd. "The Isle of Man Government is determined to protect depositors with the local subsidiary by pressing the Government of Iceland, which has nationalized Kaupthing Bank, to honor the commitment given to its Isle of Man based affiliate. "Accordingly, we have made representation to the United Kingdom Government - which is responsible for defending the Isle of Man's interests internationally � requesting them to press the Government of Iceland to honor Kaupthing's guarantee," the Chief Minster said. In the meantime the Isle of Man Government confirmed that the new Depositors' Compensation Scheme, included within the Compensation of Depositors Regulations 2008, came into operation immediately after approval of the Regulations by Tynwald on Thursday, Oct. 9, 2008. Liquidation On Thursday, Oct. 9, 2008, the Financial Services Commission confirmed that an Order has been made by the Courts appointing Michael Simpson of PricewaterhouseCoopers, Chartered Accountants as Liquidator provisionally of Kaupthing Singer & Friedlander (Isle of Man). The Petition for the winding up of the company has been adjourned until Friday, Oct. 24, 2008. The process will ensure that all depositors are treated fairly. Meanwhile the Commission is holding discussions with Mr. Simpson in order to monitor the position of depositors, and it will be for him to comment in due course on the extent of recoveries and other matters. The Commission has suspended the banking license of Kaupthing Singer & Friedlander (Isle of Man) with immediate effect. The demise of Kaupthing Singer & Friedlander (Isle of Man) was heavily affected by the inability of the parent bank to provide continuing support to the local business. Exactly the same issue appears to have affected the UK sister banking entity. Iceland is experiencing severe economic difficulties and this appears to have significantly contributed to problems at the parent bank, Kaupthing Bank hf. The consequential loss of confidence locally meant that the bank was unable to meet the prospect of sudden and exceptional withdrawals without continuing support which did not materialize. Receivership On Thursday, Oct. 9, 2008, the Icelandic Financial Supervisory (IFSA) has decided to take on the powers of Kaupthing Bank's shareholders' meetings. Furthermore, the board of directors has resigned. In addition, the IFSA has appointed a receivership committee to assume the powers of the board of directors with immediate effect. The members of the receivership committee are: Finnur Sveinbjornsson, Knutur Thorhallsson, Bjarki H. Diego, Gudny Arna Sveinsdottir and Steinar Thor Gudgeirsson. The receivership committee has asked Hreidar Mar Sigurdsson to remain as CEO of Kaupthing Bank hf. and be responsible for daily operations. About Kaupthing Singer & Friedlander (Isle of Man) Kaupthing Singer & Friedlander (Isle of Man) Ltd. -- http://www.kaupthingsingers.co.im/-- is the UK subsidiary of Iceland-based Kaupthing Bank hf. About Kaupthing Bank Headquarted in Reykjavik, Iceland, Kaupthing Bank -- http://www.kaupthing.com-- is engaged in the provision of financial services, such as private banking, asset management, pension services, brokerage services, investment banking, as well as corporate and retail banking. The Bank's offer is targeted at companies, institutional investors and individuals. The Bank is operational in thirteen countries, including Luxembourg, Switzerland, the Nordic countries, the United Kingdom and the United States. The main subsidiaries include Kaupthing Singer & Friedlander and FIH Erhvervsbank. * * * As reported in the TCR-Europe on Oct. 13, 2008, Fitch Ratings has downgraded Kaupthing Bank hf.'s Long-term Issuer Default rating to 'D' from 'CCC' and removed it from Rating Watch Evolving. This follows the announcement that Kaupthing is now subject to similar arrangements as its two Icelandic peers, Glitnir Banki and Landsbanki Islands, with the Icelandic authorities effectively seizing control of the bank The ratings of Kaupthing's UK subsidiary Kaupthing Singer & Friedlander Ltd. are unaffected by the rating actions on Kaupthing. KSF's ratings are Long-term IDR 'D', Short-term IDR 'D', Support '5', Support Rating Floor 'No Floor' and Individual 'F'. LANDSBANKI ISLANDS: Dismisses Rumors Over Fund Transfers -------------------------------------------------------- Due to press reports and claims concerning fund transfers between Landsbanki subsidiaries and the parent company during the period leading up Icelandic financial enterprises being placed in receivership by the Icelandic FSA, as provided for by newly adopted legislation, Landsbanki would like to state the following: 1. No such transfers were made between Heritable Bank and Landsbanki during the period in question and Heritable Bank remained fully financed. 2. No transfers were made from Landsbanki London Branch to the parent company in Iceland during the period in question; on the contrary, Landsbanki Islands hf. transferred substantial funds to its UK branch during this time to fulfill its Icesave commitments. Landsbanki would like to emphasize in particular that reports of this matters and statements to this effect by UK Government officials do not apply in any way to Landsbanki. As reported in the TCR-Europe on Oct. 9, 2008, the Icelandic Financial Supervisory Authority (IFSA) has under powers granted by the Icelandic Parliament proceeded to take control of Landsbanki Islands hf. The IFSA has appointed a receivership committee which has assumed the role of the Board of Directors with immediate effect. Members of the receivership committee are: Arsaell Hafsteinsson, Einar Jonsson, Larentsinus Kristjansson, Larus Finnbogason and Sigurjon Geirsson. About Landsbanki Headquartered in Reykjavik, Iceland, Landsbanki Islands hf. -- http://www.landsbanki.is-- is engaged in the provision of retail, corporate an investment banking services. The Bank's product range includes financial products and services, such as specialty insurance and real estate financing, for both corporate and private clients. It is also operational through a number of subsidiaries, including Heritable Bank Ltd, operating consultancy and financing services for residential development; Landsbanki Holdings Europe SA, a Luxembourg-based holding company providing banking services; Landsbanki Guernsey Ltd, offering retail banking; Landsbanki Securities (UK) Holdings plc, engaged in the provision of stockbrokers and financial services; Landsvaki hf, an operation company for mutual funds; Verdbrefun hf, a securitization company; Landsbankinn eignarhaldsfelag hf, a real estate company, and others. * * * As reported in the TCR-Europe on Oct. 10, 2008, Moody's Investors Service has downgraded the bank financial strength rating (BFSR) of Landsbanki Islands hf to E from C-, its long-term deposit ratings to Caa1 from A2 and its senior unsecured ratings to Caa2 from A2. Consequently, the bank's Prime-1 short- term rating was downgraded to Not-Prime. In addition, the bank's subordinated, junior subordinated and preferred stock ratings were downgraded to C. The outlook on all ratings is developing. At the same time, Fitch Ratings has downgraded the Long-term Issuer Default ratings of Glitnir Banki hf. and Landsbanki Islands to 'B' from 'BBB-' and 'BBB' respectively, and that of Straumur Burduras Investment Bank to 'BB-' from 'BB+'. The ratings of Kaupthing Bank hf. are under review. This rating action follows the announcement of legislative measures providing for broad authority to Icelandic authorities to intervene in the Icelandic financial system and the statement that Landsbanki has been placed in receivership, and reflects Fitch's view that both the ability and propensity of the Icelandic authorities to support the Icelandic banking system are becoming increasingly compromised. The support rating floor for the major Icelandic banks is now 'B'. Both Glitnir, following the acquisition by the Icelandic authorities last month of a 75% stake, and Landsbanki, which was placed in receivership, are now at their support rating floor. Glitnir's Individual rating of 'F' is affirmed and Landsbanki's Individual rating has been downgraded to 'F' from 'C' to reflect the receivership arrangement. * Icelandic Gov't. Seeks Short-Term Assistance for Central Bank --------------------------------------------------------------- Over the past two weeks, economic developments took a sharp turn for the worse in Iceland. The country's three main commercial banks, Glitnir, Landsbanki and Kaupthing, collapsed owing to the financial storm now raging in international markets and the government has resorted to exceptional measures to stabilize the situation. Effects in Iceland The Icelandic population has been seriously affected. Unemployment is expected to rise significantly. Inflation is already in double digits and will continue to rise in the short term. Icelandic pension funds have lost millions of dollars following the collapse of the three commercial banks. Thousands of Icelanders have lost a considerable part of their life-savings. Government Response The three banks were taken over by the Icelandic Financial Supervisory Authority under the provisions of the Act on the Depositors' and Investors' Guarantee Fund on Oct. 6, 2008. The purpose of the Act was to maintain an orderly operation of the banking system and to strengthen the position of depositors by giving them priority when allocating assets. Broader Implications The Icelandic Government is consulting with a number of governments concerning the possibility of providing the Icelandic Central Bank with short term assistance. There is a good probability that the total assets of Landsbanki will be sufficient to cover the deposits in IceSave, an online savings account in the United Kingdom. The governments of the two countries are reviewing the matter in detail through official channels with a view to finding a mutually satisfactory solution. Contacts between Icelandic and Dutch authorities on the same are ongoing. The use of anti-terrorist legislation by the United Kingdom on Oct. 9, 2008, to seize the assets of Icelandic banks was, in the view of the Icelandic government, disproportionate and extreme. The initial measures taken by the British government have since been partially withdrawn. Prospects Iceland used to be one of the Europe's poorest countries, but gradually made a successful transition to a high level of economic prosperity. In 2007, Iceland was ranked on top of the United Nations Human Development Index. Iceland was able to make the transition by applying modern techniques to the sustainable use of natural resources, including abundant fish stocks and renewable energy. Today, Iceland is a dynamic, technology-driven society with a young and well educated workforce. These and other assets should enable Iceland to endure the current financial storm and regain its former strength over the coming months. Key Points * The Icelandic economy has been seriously affected by the current economic turmoil in international financial markets. * The Icelandic government is taking deliberate action, including special legislation designated to stabilize the situation. * The government is consulting with a number of other governments concerning the possibility of providing the Icelandic Central Bank with short term assistance. * Iceland remains fully committed in its quest for a non- permanent seat on the UN Security Council 2009-2010. ============= I R E L A N D ============= CORNISH HOMES: Liquidators Identify 162 Creditors ------------------------------------------------- In the Cornish Homes liquidation meeting held on Oct. 10, 2008, liquidators from The Kelmanson Partnership has identified 162 businesses and individuals owed money by the company, thisiscornwall.co.uk reports. John Kelmanson, liquidation investigator, said after the hearing, "It was a long and heated meeting where concerns were expressed by creditors represented which will be forming part of my investigation into the affairs of the company as the duly appointed liquidator. The company has gone into voluntary liquidation and will not trade under that name again." Mr. Kelmanson, added, "There are connections to his (Mr. Kevin Heaney, owner) other companies within the group that have become apparent today which it may be necessary to include in the investigative function." DROGHEDA UNITED: To File for Examinership Today ----------------------------------------------- In an effort to save its business, Drogheda United Football Club will ask the High Court today, Oct. 14, 2008, to put it into examinership, Susan Mitchell of The Post.IE reports. According to the report, Vincent Hoey, chairman of Drogheda United, blamed the local planning process for the financial crisis that has affected the club. The report relates investors are said to have spent EUR12 million over the past four years on the basis that a new stadium would be built to help secure its future. The club's management had finalized plans with a Dublin property developer, Bill Doyle, to build a EUR35 million, 10,000-seater stadium on a site in Bryanstown, in exchange for the club's existing stadium at United Park, however, those plans were scuppered in August after it was discovered that much of the land was zoned for open space and industrial use, rendering the stadium plan redundant, The Post.IE says. Mr. Doyle then threatened to sue Meath County Council, saying he was given verbal assurances that the land would be zoned residential, the report discloses. Former environment minister Dick Roche already asked environment minister John Gormley to investigate the situation, the report adds. PLAZA DEVELOPMENTS: Taps Grant Thornton as Liquidators ------------------------------------------------------ Paul McCann, a Grant Thornton partner, has been appointed liquidator of Plaza Developments and a related company, KCDLG, according to Ian Kehoe of The Post.IE. In July 2008, Plaza Developments went under examinership in an effort to shore up its finances. However, the company failed to bring in investors resulting to liquidation. Mr. McCann, after thorough evaluation, will decide how to maximize value for creditors. Among others, the company owes National Irish Bank more than EUR4 million. TRICASTLE CONSTRUCTION: Directors to Propose Liquidation -------------------------------------------------------- Directors of Tricastle Construction has called its creditors to a meeting to propose the appointment of a liquidator, The Post.IE reports. Tricastle Construction is owned by Austing McGarry. It operates from two Dublin outlets with annual revenues approximated at EUR50 million. Its more than 250 workers may soon be declared redundant, the report relates. The creditor's meeting will be held at the Mount Herbert Hotel in Dublin in about two weeks time. * EU Commission Approves Revised Irish Support Scheme for Banks --------------------------------------------------------------- The European Commission has approved under EC Treaty state aid rules an Irish scheme intended to stabilize the financial markets by providing guarantees on deposits and debt to eligible banks active on the Irish market. After intensive contacts with the Commission, the Irish authorities submitted the finalized scheme on Oct. 12, addressing issues raised in the discussions. The Commission found the revised scheme to be compatible with EU state aid rules, because it was an appropriate means to remedy a serious disturbance in the Irish economy (Article 87.3.b of the EC Treaty), while avoiding unnecessary distortions of competition. In particular, it now provides for non-discriminatory access to banks with systemic relevance for the Irish economy, regardless of their origin, fair remuneration of the guarantee, is limited in time and contains appropriate safeguards to avoid abuses. The Irish measures are therefore now in line with the guidance just issued by the Commission. Competition Commissioner Neelie Kroes said: "This case illustrates how we can work together with Member States to design measures that help to solve the financial crisis while avoiding negative effects on other Member States' banks. I am very pleased with the constructive attitude of the Irish authorities". On Oct. 3, the Irish authorities informed the Commission about a planned support scheme consisting of a state guarantee over current and future liabilities of certain banks operating on the Irish market. After constructive contacts, the Irish authorities were able to submit the finalized scheme, taking into account Single Market aspects discussed with the Commission, only one week later, on Oct. 12, 2008. The Commission found that the revised scheme constituted an adequate means to restore confidence in the financial markets and overcome a market failure for wholesale funding that affects even healthy banks. The Commission also found that the revised scheme addressed issues that had been raised by the Commission relating to maintaining the integrity of the Single Market in financial services and compliance with EU state aid principles, in particular as regards: * non-discriminatory coverage of banks with systemic relevance to the Irish economy, regardless of origin * a pricing mechanism that covers the funding costs of the scheme and ensures a fair contribution over time by the beneficiary banks * appropriate safeguards against abuse of the scheme, including restrictions on commercial conduct and limits to balance-sheet growth * accompanying measures to address structural shortcomings of certain banks, in particular if the guarantee has to be called upon * safeguards on the use of guaranteed subordinated debt (lower tier-2 capital), in particular regarding the solvency ratios of the beneficiary banks * limitation to 2 years and a review at 6-monthly intervals of the continued necessity for the scheme, in the light of changes in financial market conditions. On this basis the Commission found the revised package proportionate and equipped with sufficient safeguards to limit distortions of competition with other banks and to avoid negative spillovers in other Member States, while minimizing aid from public funds. ========= I T A L Y ========= ALITALIA SPA: CAI Extends Conditional Offer Until End of October ---------------------------------------------------------------- Compagnia Aerea Italiana s.r.l., a consortium of Italian investors created to save Alitalia Spa, extended the deadline on its conditional offer to relaunch the national carrier until Oct. 31, 2008, various reports say. CAI had originally given a deadline of October 15 but extended it to give time for CAI to complete due diligence work. A shareholder meeting has been set for October 28 to among others change the company's charter. As reported in the Troubled Company Reporter-Europe on Sept. 30, 2008, CAI is considering launching the new Alitalia by November 1. CAI revived its bid for Alitalia after it reached agreement with all the nine Alitalia unions. CAI's rescue plan calls for renaming of Alitalia and writing off between EUR1.2 billion and EUR2 billion worth of its debt. 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. As reported in the TCR-Europe on Oct. 2, 2008, Alitalia Extraordinary Commissioner Augusto 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 had not named the entities who were submitting expressions 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. =================== K A Z A K H S T A N =================== ASIA-TRANS LLP: Creditors Must File Claims by November 21 --------------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Asia-Trans insolvent. Creditors have until Nov. 21, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Aiteke bi Str. 50-32 050000, Almaty Kazakhstan Tel: 8 777 223 62-01 AVTORID LLP: Claims Deadline Slated for November 21 --------------------------------------------------- The Specialized Inter-Regional Economic Court of Atyrau has declared LLP Avtorid insolvent. Creditors have until Nov. 21, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Atyrau Third Floor Abai Str. 10a Atyrau Kazakhstan Tel: 8 (71222) 32-90-02 BOLASHAK LTD: Claims Filing Period Ends November 21 --------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Agro Firm Bolashak insolvent. Creditors have until Nov. 21, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kostanai Baitursynov Str. 70 Kostanai Kazakhstan CONSULTING-7 LLP: Creditors' Claims Due on November 21 ------------------------------------------------------ The Specialized Inter-Regional Economic Court of Almaty has declared LLP Consulting-7 insolvent. Creditors have until Nov. 21, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Aiteke bi Str. 50-32 050000, Almaty Kazakhstan Tel: 8 777 223 62-01 INTERNATIONAL SUPPORT: Claims Registration Ends November 21 ----------------------------------------------------------- LLP International Support Services has declared liquidation. Creditors have until Nov. 21, 2008, to submit written proofs of claims to: LLP International Support Services Sain Str. 8-94 Almaty Kazakhstan Tel: 8 777 293 23-15 GWANWOO CONSTRUCTION: Creditors Must File Claims by November 21 --------------------------------------------------------------- LLP Gwanwoo Construction Company Limited has declared liquidation. Creditors have until Nov. 21, 2008, to submit written proofs of claims to: LLP Gwanwoo Construction Company Limited Aiteke bi Str. 123-7 Almaty Kazakhstan NAM WON ENGINEERING: Claims Deadline Slated for November 21 ----------------------------------------------------------- Branch of JSC Nam Won Engineering declares about its liquidation. Creditors have until Nov. 21, 2008, to submit written proofs of claims to: Branch of JSC Nam Won Engineering Bichurin Str. 16/1 Micro District Ak-Bulak Almaty Kazakhstan TIANSHAN INTERNATIONAL: Claims Filing Period Ends November 21 ------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Joint Enterprise Tianshan International Construction Co. Ltd. insolvent. Creditors have until Nov. 21, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Makatayev Str. 196-36 Almaty Kazakhstan Tel: 8 (7272) 79-86-76 =================== K Y R G Y Z S T A N =================== M. FRUNZE: Creditors Have Until Nov. 12 to Submit Claims -------------------------------------------------------- LLC Bishkek Factory of Agricultural Mechanical Engineering by M. Frunze Bishkeksky Zavod Selskohozyaistvennogo Mashinostroyeniya Imeni M. Frunze has shut down. Creditors have until Nov. 12, 2008, to submit written proofs of claim. Inquiries can be addressed to (+996 312) 65-36-51. ===================== N E T H E R L A N D S ===================== ROMPETROL GROUP: Fitch Holds B+ Rating; Changes Outlook to Stable ----------------------------------------------------------------- Fitch Ratings has changed the Netherlands-based The Rompetrol Group N.V.'s Outlook to Stable from Positive. Its Long-term Issuer Default rating is affirmed at 'B+'. The Outlook change incorporates TRG's continued exposure to refinancing risk, given the short-term bias of its debt. The company's liquidity position remains weak, with short-term debt maturities exceeding cash and undrawn committed facilities. This leaves the company dependent on the renewal of its trading and working capital facilities and/or on additional shareholder loans to fund its obligations. This, coupled with TRG's high financial leverage and very low interest coverage, leaves the company with a vulnerable standalone credit profile amid the current difficult credit market conditions. The company plans to refinance a major part of its short-term debt with a syndicated bank facility. The rating for TRG reflects its strong strategic ties with its Kazakhstan-based integrated oil & gas parent, KazMunaiGaz National Company (NC KMG, 'BBB'/'F3'/Negative). It also takes into account financial support from NC KMG by way of subordinated loans granted to TRG. Since the acquisition of a 75% stake in TRG in November 2007, NC KMG, together with TRG's minority shareholder, Rompetrol Holding S.A., has provided subordinated loans of US$533 million to the company. This helped to fund TRG's rising working capital needs stemming from elevated crude oil and refined product prices in H108. Fitch notes NC KMG does not guarantee TRG's debt. The agency understands there is currently no plan for an enhancement of TRG's capital structure by equity injection from TRG shareholders, although NC KMG's subordinated loans provide an option to convert into equity on loan maturity in 2011. TRG's operational ties with NC KMG increased in H108 after the parent started to supply most of the crude oil needed for TRG's refining business with favorable payment terms. Fitch will provide further analysis on TRG once it has reviewed the company's updated long-term business plan detailing the capital expenditure program, including the refinery upgrade, in coming weeks. =========== N O R W A Y =========== FRONTIER DRILLING: S&P Retains Watch Neg. on B- Corporate Rating ---------------------------------------------------------------- Standard & Poor's Rating Services said that the ratings of private offshore drilling rig and FPSO (Floating Production Storage and Offloading) operator Frontier Drilling ASA will remain on CreditWatch with negative implications where they were placed on March 28, 2008. "We view recent developments as favorable for credit quality, but we will wait to resolve the CreditWatch listing until Frontier successfully completes its current shipyard projects, including the upgrade of the Phoenix drillship, which is now expected to be completed by late fourth quarter of 2008," said S&P's credit analyst Jeff Morrison. Frontier has received amendments from its first and second-lien lenders that ease its financial covenants. Given weaker-than- expected EBITDA generation in 2008 (due largely to longer-than- anticipated downtime between contracts for its Duchess drillship) and higher-than-anticipated costs related to the upgrade of its Phoenix drillship, Frontier was going to be in violation of its financial covenants for the second fiscal quarter of 2008 (ended June 30). Subsequently, Frontier has received amendments from its lenders that include a reset to minimum leverage and interest coverage covenants, reset and extended minimum EBITDA covenants, and a reset to the maximum capital expenditure limitations. The company also received an additional capital infusion from financial sponsors that shores up near-term liquidity. In September, Frontier received US$175 million in supplemental funding from the company's largest private sponsor, Carlyle/Riverstone, (concurrent with the completion of the bank amendment process) in the form of additional payment-in-kind (PIK) preferred subordinated securities. Given cost overruns on its various shipyard projects during the past two years, Frontier required additional near-term funding to meet its near-term capital projects, namely maintenance work on the Seillean FPSO and the upgrade of the Phoenix unit. Successful recontracting of the Duchess drillship should improve cash flow in the fourth quarter. Frontier recently signed a two- year contract at favorable terms (~US$308,000 per day) for work offshore Nigeria with Nigerian Petroleum Development Corp. The Duchess is currently mobilizing from Southeast Asia to Nigeria and should commence operations under its new contract by mid- November. Frontier also secured improved contract terms for its Discover and Phoenix drillships. Frontier has been able to strengthen the dayrate and term structure of the contracts for these units through an adjustment of its existing contracts with Royal Dutch Shell PLC (AA+/Stable/A-1+). These improved contracts should allow for increased free cash flow to put toward deleveraging over future periods. If Frontier can successfully complete the Phoenix upgrade within its revised cost estimates and the Phoenix successfully commences operations under its long-term contract, S&P will likely remove ratings from CreditWatch with negative implications and affirm Frontier's 'B'- corporate rating with a stable outlook. Nonetheless, this outcome will also be contingent upon a full review and assessment of Frontier's near-to-intermediate-term liquidity position and requirements, and cash flow outlook for the remainder of 2008 and into 2009. The rating on Bergen, Norway-based Frontier, a wholly owned subsidiary of FDR Holdings Ltd., reflects a highly leveraged financial risk profile, a limited number of currently operating offshore units to generate cash flow over the near term, and substantial cost overruns incurred during the past two years with its rig upgrade projects. These concerns are not sufficiently mitigated by a growing backlog and improved contracts for its offshore units and the expectation of stronger free cash flow generation in 2009 once shipyard projects are complete. =============== P O R T U G A L =============== SAGRES STC: Fitch Holds 'B' Rating on EUR53MM Class T Notes ----------------------------------------------------------- Fitch Ratings has upgraded Sagres STC - Explorer 2004's Class M floating-rate notes and affirmed the others. Sagres is the first securitization launched by the Portuguese government and backed by unpaid tax and social security claims originated in Portugal. -- EUR135 million Class A2 floating-rate notes (ISIN XS0190180678) affirmed at 'AAA'; Outlook Stable -- EUR170 million Class M floating-rate notes (ISIN XS0190180918) upgraded to 'AAA' from 'AA'; Outlook revised to Stable from Positive -- EUR129 million Class N floating-rate notes (ISIN XS0190181130) affirmed at 'A-'; Outlook revised to Positive from Stable -- EUR136 million Class O floating-rate notes (ISIN XS0190181213) affirmed at 'BB+'; Outlook Stable -- EUR53 million Class T fixed-rate notes (ISIN XS0190181486) affirmed at 'B', Outlook Stable The rating action follows a recent review of the transaction performance. Collections for the six month period ended September 2008 continued to outperform Fitch's forecasts. The aggregate collections from closing amounted to EUR1,610 million, 5% higher than Fitch's revised base case. IVA (VAT tax) remained the largest contributor to the total collected amount and IRS (personal income tax) ranked highest in terms of recovery (24.4%). As of September 2008, the balance in the issuer account stood at approximately EUR382 million, which is sufficient to pay down the remaining Class A2 notes and Class M notes. Should future collections perform in line with Fitch's revised base case, all the remaining notes are expected to be repaid before their respective final maturity date. However, as the portfolio of claims ages, and more claims become annulled and dormant, future collections will be more challenging and unpredictable. Fitch will continue to monitor the performance of this transaction. =========== R U S S I A =========== ALROSA CO: KIT Acquisition Cues S&P to Put BB Rating on Watch Neg. ------------------------------------------------------------------ Standard & Poor's Ratings Services has placed its 'BB' long-term corporate credit rating on state-controlled Russian diamond miner Alrosa Co. Ltd. on CreditWatch with negative implications. This action follows the announcement by Alrosa's subsidiary, Investment Group Alrosa, of its acquisition of 45% of Russian KIT Finance Investment Bank (not rated), which is experiencing financial difficulties. The 'B' short-term corporate credit rating was affirmed. "The CreditWatch placement reflects our concerns about the uncertainty surrounding the transaction and the potential future exposures for Alrosa, at a time when the company's liquidity is already weak and cash flow coverage metrics have deteriorated," said S&P's credit analyst Andrey Nikolaev. Although the 45% stake is to be bought for a nominal sum of RUR45 (about US$2), there are significant uncertainties about the transaction's structure, which have not yet been clarified, and about KIT Finance's creditworthiness. Moreover, although Alrosa doesn't plan to increase its stake in KIT Finance, participate in management, or provide any form of support, and will eventually sell this investment, it may succumb to government pressure to support the bank, which could weigh on Alrosa's already weak liquidity and significant leverage. As of Dec. 31, 2007, Alrosa had RUR8 billion in cash deposits with KIT Finance, which have since declined to RUR3 billion, according to management. A mitigating factor is Alrosa's status as a government-related entity (GRE). The ratings are based on S&P's bottom-up methodology for assessing GREs. S&P currently assesses the company's stand-alone credit quality at 'BB-' and add one notch for potential extraordinary state support because the Russian government currently controls the majority of Alrosa's share capital. Alrosa's stand-alone credit quality is pressured by the high capital expenditures required to develop underground mines as the company's key open pits deepen. Further constraints are Alrosa's deteriorating cash flow coverage metrics, weak liquidity, and difficult operating conditions in its core operating area, Yakutia. Alrosa's No. 2 global ranking in diamond mining and large reserves support the rating, however. S&P expects to resolve the CreditWatch placement over the next three months, once it sees the final structure of the transaction and can determine the extent of Alrosa's participation. The amount of support KIT Finance may need is currently difficult to estimate. S&P regards Alrosa's opportunistic investment policy, highlighted by this acquisition, as negative for the rating. "For a CreditWatch resolution, we will also need to review the developments in the company's liquidity position and the potential for stronger state support, which could come in the form of an announcement of explicit financial backing," said Mr. Nikolaev. AMUR-KOMPLEKT LLC: Creditors Must File Claims by November 19 ------------------------------------------------------------ Creditors of LLC Amur-Komlekt (TIN 2801076566) have until Nov. 19, 2008 to submit proofs of claims to: D. Khaustova Insolvency Manager Office 105 Pereulok Svyatitelya Innokentiya 13 Blagoveshchensk 675000 Amurskaya Russia The Arbitration Court of Amurskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A04-1816/08-12/175B. The Court is located at: The Arbitration Court of Amurskaya Office 105 Pereulok Svyatogo Innokentiya 13 675000 Blagovechshensk Russia The Debtor can be reached at: LLC Amur-Komplekt Novotroitskoe shosse 2nd km 675000 Blagoveshchensk Russia BUGULMINSKIY PORCELAIN: Creditors Must File Claims by November 3 ---------------------------------------------------------------- Creditors of OJSC Bugulminskiy Porcelain have until Nov. 3, 2008, to submit proofs of claims to: A. Boltakov Temporary Insolvency Manager Post User Box 261 420021 Kazan Tatarstan Russia The Arbitration Court of Tatarstan commenced bankruptcy supervision procedure. The case is docketed under Case No. A65�123162008/2008-SG4�39. The Court is located at: The Arbitration Court of Tatarstan Room 12 Floor 2 Entrance 2 Building 1 Kremlin Kazan Tatarstan Russia The Debtor can be reached at: OJSC Bugulminskiy Porcelain Bugulma Tatarstan Russia FOUNDRY PRODUCTION: Chelyabinsk Bankruptcy Hearing Set Nov. 11 -------------------------------------------------------------- The Arbitration Court of Chelyabinsk will convene at 10:00 a.m. on Nov. 11, 2008, to hear bankruptcy proceedings on LLC Foundry Production. The case is docketed under Case No. A76-25567/ 2007-55-262. The Insolvency Manger is: K. Zvonkov Post User Box 31 Chebarkul 456440 Chelyabinskaya Russia The Court is located at: The Arbitration Court of Chelyabinsk Vorovskogo Str. 2 454091 Chelyabinsk Russia The Debtor can be reached at: LLC Foundry Production Suvorova Str. 17 Chebarkul 456440 Chelyabinskaya Russia LESOVIK LLC: Creditors Must File Claims by November 3 ----------------------------------------------------- Creditors of LLC Lesovik have until Nov. 3, 2008, to submit proofs of claims to: S. Zelenchikov Temporary Insolvency Manager Apt. 23 Prospekt Lenina 373 Volzhskiy 404133 Volgogradskaya Russia The Arbitration Court of Volgogradskaya commenced bankruptcy supervision procedure. The case is docketed under Case No. ?12- 14978/08-s50 . The Debtor can be reached at: LLC Lesovik Pushkina Str. 63 Volzhskiy Volgogradskaya Russia MASHINOSTROITEL LLC: Creditors Must File Claims by November 19 -------------------------------------------------------------- Creditors of LLC Mashinostroitel (Material Working Machine Production)(TIN 1828010930, PSRN 1021801068134) have until Nov. 19, 2008 to submit proofs of claims to: S.Pyankov Insolvency Manager Office73 K. Marksa Str.246 426057 Izhevsk Udmurtia Russia The Arbitration Court of Udmurtia commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A71-2491/2008 G26. The Court is located at: The Arbitration Court of Udmurtia Lomonosova Str. 5 Izhevsk 426004 Udmurtia Russia The Debtor can be reached at: LLC Mashinostroitel Zheleznodorozhnaya Str.28 427430 Votkinsk Udmurtia Russia ROS-BIO-TEKH-MOBY: Creditors Must File Claims by November 3 ----------------------------------------------------------- Creditors of LLC Ros-Bio-Tekh-Moby Research and Manufacturing Association (PSRN 1024000936002) have until Nov. 3, 2008, to submit proofs of claims to: Ye. Pozdnyakova Insolvency Manager Marata Str. 21a 305000 Kursk Russia The Arbitration Court of Kaluzhskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A23�67/08B-17�6 . The Debtor can be reached at: LLC Ros-Bio-Tekh-Moby Obninsk Kaluzhskaya Russia SEVERSTAL OAO: Lowers Production Estimates for October 2008 ----------------------------------------------------------- As a result of slower demand for steel products due to recent changes in global economic conditions, OAO Severstal has decided to reduce production at its steel plants in Russia, North America and Europe for the month of October. In Russia, Severstal will reduce production at its Cherepovets steel plant by approximately 25% for crude steel. In the United States, Severstal will be adjusting production to balance with customer needs to an aggregate of approximately 30% across its facilities. In Italy, Severstal is scheduling October production cuts of 30%. Mr. Sergei Kuznetsov, CFO of OAO Severstal, said: "We consider these measures to be prudent management in a time of rapidly changing market conditions. We are maintaining close discussions with our customers to support their near-term requirements. Likewise, the Company is communicating with suppliers so that we can optimize the supply chain and keep all stakeholders informed of production levels." About Severstal Headquartered in Cherepovets, Russia, OAO Severstal -- http://www.severstal.com/-- is the country's largest steel producer, with steel production of 17.1 million tons in 2005. The Company owns Severstal North America, the fifth largest integrated steel maker in the U.S. with 2005 production of 2.7 million tons, and Lucchini, Italy's second largest steel group with 2005 production of 3.5 million tons. Severstal is one of the world's lowest cost and most profitable steel producers, with 2005 EBITDA per ton of around EUR150 per ton. * * * As reported in the Troubled Company Reporter-Europe on Aug. 27, 2008, Fitch Ratings affirmed OAO Severstal's ratings at long term Issuer Default 'BB', Short-term IDR 'B', and National 'AA- (rus)'. The Outlooks on the Long-term IDR and National Long-term rating are Stable. OAO Severstal continues to carry Ba2 Corporate Family, Senior Unsecured Debt and Probability-of-Default ratings from Moody's Investor Service, which said the the outlook on all ratings is stable. Moody's raised the company's ratings to its current level in October 2007. The company also carries BB long-term Foreign and Local Issuer Credit ratings from Standard & Poor's, which said the outlook is stable. SITRONICS JSC: Weakening Credit Profile Cues Fitch's Neg. Outlook ----------------------------------------------------------------- Fitch Ratings has changed JSC Sitronics' Outlook to Negative from Stable. Its Long-term Issuer Default rating is affirmed at 'B-'. The Negative Outlook reflects Sitronics' weakening credit profile and increased refinancing risk in light of its sizable short-term maturities over the next six months. While Fitch understands that Sitronics is currently working on various options to refinance its US$125 million term loan maturities due in November 2008, the agency remains concerned about the company's ability to secure external financing in the current difficult capital market conditions. Fitch draws some comfort from potential financial assistance from Sitronics' parent company, Sistema Joint Stock Financial Corp (Long-term IDR 'BB-'/Stable); the latter has confirmed its willingness to provide support in a liquidity crisis. Fitch also notes that Sitronics qualifies as a material subsidiary of Sistema and its default would trigger a cross-default of the parent's bonds. If Sitronics is unable to secure external financing, maintaining its rating at the 'B-' level may depend on Sistema's willingness to provide financial assistance. Fitch will continue to closely monitor any developments on the company's refinancing efforts. Declining operating margins and high leverage have weakened Sitronics' credit profile which now stands at the lower range of its current rating. Operationally, Sitronics remains a high- growth company while its business profile is now focused on the higher-margin, fast-growing micro-electronics business. The completion of the 0.18 micron chip manufacturing process technology has strengthened Sitronics' position in the fast- growing smart-cards and microchip technology business in Russia, while the company continues to win government-sponsored contracts. The recently announced joint venture with the Russian government to create a new nano-technology fabrication plant in Moscow should strengthen Sitronics' leading position in the micro-electronics market in Russia and the CIS markets. Sitronics is also planning to re-allocate a sizable portion of its R&D and production facilities to China through a joint venture with China's ZTE Corp. which should reduce production costs. Nevertheless, Fitch remains cautious about the long-term commercial success and implementation risks of these projects in light of the global economic slowdown and challenging credit market conditions. Sitronics' profitability deteriorated significantly in FY07, impacted by the cancellation of two major contracts within the telecom solutions segment and sizable losses in the consumer electronics division, leading to negative OIBDA. This trend was reversed in H108, with OIBDA turning positive and revenue growing 45% y-o-y. This was driven by Sitronics' aggressive restructuring program and strong growth momentum in its micro-electronics and IT businesses. Leverage has increased materially due to higher capex and minority stake acquisitions. As of end-Q208 Sitronics had net debt, excluding capital leases and derivatives, of US$641 million, compared to US$327 million at end-FY07 while cash and cash equivalents stood at US$104 million. The recently announced strategic projects will require additional funding and face integration challenges however, Fitch would expect management to remain disciplined in its expansion strategy given the deteriorating microeconomic conditions. SPETS-MED-EQUIPMENT: Creditor Must File Claims by November 3 ------------------------------------------------------------- Creditors of LLC Spets-Med-Equipment have until Nov. 3, 2008, to submit proofs of claims to: S. Peshkun Temporary Insolvency Manager Office 41 Zeiskaya Str. 140 Blagoveshchensk 67500 Amurskaya Russia The Arbitration Court of Amurskaya will convene on Dec. 13, 2009, to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. AO4-6610/08-11/ 470 B . The Court is located at: The Arbitration Court of Amurskaya Office 105 Pereulok Svyatogo Innokentiya 13 675000 Blagovechshensk Russia The Debtor can be reached at: LLC Spets-Med-Equipment Office 2 Oktyabrskaya Str. 221 Blagoveshchensk 675000 Amurskaya Russia * S&P Revises Outlook on 13 Russian Banks to Negative from Stable ----------------------------------------------------------------- Standard & Poor's Ratings Services has revised its outlooks on the long-term ratings on 13 Russian financial institutions to negative from stable. In addition, the long-term ratings on all the banks and financial companies were affirmed, and the Russia national scale ratings on four of the affected entities were lowered. S&P also affirmed the ratings on 14 other entities, on which the outlooks remain stable. "The outlook revisions reflect our growing concerns about the adverse impact of the ongoing domestic and international market turbulence with regard to the financial and commercial fundamentals of many domestic financial institutions," said S&P's credit analyst Ekaterina Trofimova. These relate to growing credit risks; tighter liquidity; pressured refinancing and weaker short-term growth prospects; and reduced profitability, namely due to trading losses. A positive development is that the Russian government seems increasingly willing to pursue orthodox measures to address the financial market turmoil. Key support measures include plans to provide banks with up to US$38 billion in long-term subordinated loans, direct uncollateralized lending from the central bank to about 100 banks, a US$50 billion package to refinance corporate and banks' foreign borrowings, and a substantial increase in borrowing limits from the Ministry of Finance. However, the continued tough and volatile macro environment and institutional weakness in Russia make their outcome unpredictable, particularly in respect of domestically owned private sector banks. "We expect that higher funding costs and reduced access to the debt markets will continue to put pressure on banks, especially the small and midsize ones and those which have sizable amounts of debt maturing in the coming months," said Ms. Trofimova. Credit is likely to become scarcer, which will have a negative impact on the asset quality of borrowers and growth dynamics of the Russian economy. On the funding side, corporate depositors will use their cash to repay debt coming due while retail depositors might consider a flight to quality. However, with the interbank market being closed for many small banks, and with lines being cut by their larger peers and higher interest rates, there could be a dash for cash and more banks may experience liquidity problems. This is likely to be exacerbated by the extreme risk aversion of the international debt markets, particularly as sizable debt refinancing needs to take place during the coming 12 months. As a knock-on impact, asset quality may then start to suffer as a credit squeeze will prevent corporate borrowers financing their own projects and investments. For a more in-depth analysis on the impact of the ongoing liquidity squeeze and stock market turbulence in Russia's banking sector, please see the article "Financial Turbulence Tests Resilience Of Russian Banks And State Support For Banking Sector," published on RatingsDirect on Sept. 22, 2008. S&P maintains a stable outlook on several state and foreign-owned banks that are less vulnerable to the difficult operating environment due to positive ownership factors. These include the state-owned Bank VTB and Gazprombank and foreign-owned Raiffeisenbank ZAO, CJSC Unicredit Bank (Russia), Rosbank OJSC, and Rusfinance Bank. In addition, S&P maintains stable outlooks on banks with very low ratings, which already incorporate a high degree of vulnerability to an adverse operating environment. S&P's lowering of the Russia national scale ratings on four Russian financial institutions reflects the more granulated credit rating approach under its national ratings scale. Ratings list: Troika Dialog Group Ltd. To From -- ---- Counterparty Credit Rating BB-/Negative/B BB-/Stable/B Russia National Scale ruAA- ruAA- Bank URALSIB (OJSC) Counterparty Credit Rating BB-/Negative/B BB-/Stable/B Promsvyazbank OJSC Counterparty Credit Rating BB-/Negative/B BB-/Stable/B Bank Vozrozhdenie Counterparty Credit Rating BB-/Negative/B BB-/Stable/B Russia National Scale ruAA- ruAA- OJSC Alfa-Bank. Counterparty Credit Rating BB/Negative/B BB/Stable/B Russia National Scale ruAA ruAA MDM Bank Counterparty Credit Rating BB/Negative/B BB/Stable/B Home Credit and Finance Bank LLC Counterparty Credit Rating B+/Negative/B B+/Stable/B Commercial Bank Petrocommerce (OJSC) Counterparty Credit Rating B+/Negative/B B+/Stable/B Russia National Scale ruA ruA+ National Factoring Company Counterparty Credit Rating B-/Negative/C B-/Stable/C Russia National Scale ruBBB- ruBBB Investment Company Veles Capital LLC Counterparty Credit Rating B-/Negative/C B-/Stable/C Russia National Scale ruBBB- ruBBB CentroCredit Bank JSC Counterparty Credit Rating B-/Negative/C B-/Stable/C Russia National Scale ruBBB- ruBBB- West Siberian Commercial Bank Counterparty Credit Rating B/Negative/C B/Stable/C Russia National Scale ruBBB+ ruA- B.I.N.BANK Counterparty Credit Rating B/Negative/C B/Stable/C Russia National Scale ruBBB ruBBB Ratings Affirmed: Aljba Alliance Counterparty Credit Rating B-/Stable/C Bank of Khanty-Mansiysk (JSC) Counterparty Credit Rating BB-/Stable/B Russia National Scale ruAA- JSC VTB Bank Counterparty Credit Rating BBB+/Stable/A-2 Russia National Scale ruAAA Bank VTB 24 Counterparty Credit Rating BBB+/Stable/A-2 Russia National Scale ruAAA VTB-Leasing Counterparty Credit Rating BBB+/Stable/A-2 Russia National Scale ruAAA Gazprombank Counterparty Credit Rating BBB-/Stable/A-3 Russia National Scale ruAA+ International Industrial Bank Counterparty Credit Rating BB-/Stable/B Krayinvestbank Counterparty Credit Rating B/Stable/C Russia National Scale ruA- Raiffeisenbank ZAO Counterparty Credit Rating BBB+/Stable/A-2 Russia National Scale ruAAA Rosbank OJSC Counterparty Credit Rating BB+/Stable/B Rusfinance Bank Counterparty Credit Rating BB+/Stable/B Surgutneftegasbank Counterparty Credit Rating B+/Stable/B TransCreditBank Counterparty Credit Rating BB/Stable/B Russia National Scale ruAA CJSC Unicredit Bank (Russia) Counterparty Credit Rating BBB+/Stable/A-2 ===================== S W I T Z E R L A N D ===================== ALEXANDRIA JSC: Creditors Must File Proofs of Claim by Nov. 28 -------------------------------------------------------------- Creditors owed money by JSC Alexandria are requested to file their proofs of claim by Nov. 28, 2008, to: JSC Gyseler Consulting Sihlbruggstrasse 105 6340 Baar Switzerland The company is currently undergoing liquidation in Baar. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on June 19, 2008. FILM FINANCIERS: Deadline to File Proofs of Claim Set Nov. 20 ------------------------------------------------------------- Creditors owed money by LLC Film Financiers Consortium are requested to file their proofs of claim by Nov. 20, 2008, to: Lukas Erni Haus Post 7122 Valendas Switzerland The company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on June 17, 2008. GLAMOR NETWORK: Creditors Have Until Nov. 30 to File Claims ----------------------------------------------------------- Creditors owed money by LLC Glamor Network are requested to file their proofs of claim by Nov. 30, 2008, to: Peter Baumann Spitalstrasse 6 8330 Pfaffikon ZH Switzerland The company is currently undergoing liquidation in Zurich. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on June 9, 2008. INNOPLANT LLC: Proofs of Claim Filing Deadline is Oct. 31 --------------------------------------------------------- Creditors owed money by LLC Innoplant are requested to file their proofs of claim by Oct. 31, 2008, to: Hans Rudolf Keller Affolternstr. 17 8908 Hedingen Switzerland The company is currently undergoing liquidation in Hedingen. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 14, 2007. MOTION PICTURE: Creditors' Proofs of Claim Due by Nov. 20 ---------------------------------------------------------- Creditors owed money by LLC Motion Picture Corporation of Europe are requested to file their proofs of claim by Nov. 20, 2008, to: Lukas Erni Haus Post 7122 Valendas Switzerland The company is currently undergoing liquidation in Glarus. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on June 17, 2008. SPM METALLBAUTECHNIK: Oct. 25 Set as Deadline to File Claims ------------------------------------------------------------ Creditors owed money by LLC SPM Metallbautechnik are requested to file their proofs of claim by Oct. 25, 2008, to: LLC Balkonia Merkurstrasse 2 6210 Sursee Switzerland The company is currently undergoing liquidation in Knutwil. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Nov. 15, 2006. STEINER EXPRESS: Creditors Must File Proofs of Claim by Oct. 25 --------------------------------------------------------------- Creditors owed money by LLC Steiner Express are requested to file their proofs of claim by Oct. 25, 2008, to: Peter Steiner-Marquart Schonenweg 5a 8733 Eschenbach Switzerland The company is currently undergoing liquidation in Eschenbach SG. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Sept. 9, 2008. VISANO DISTRIBUTIONS: Deadline to File Claims Set Oct. 31 --------------------------------------------------------- Creditors owed money by LLC Visano Distributions are requested to file their proofs of claim by Oct. 31, 2008, to: Konrad Rechsteiner Untere Harfenbergstrasse 1 9100 Herisau Switzerland The company is currently undergoing liquidation in Biel. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Nov. 24, 2007. =========== T U R K E Y =========== FORD OTOSAN: Fitch Cuts Issuer Default Rating to 'B' ---------------------------------------------------- Fitch Ratings downgraded Turkey-based Ford Otosan's Long-term local currency Issuer Default rating to 'B' from 'BB-'. The Outlook remains Negative. This follows the downgrade of Ford Motor Company's Long-term IDR to 'CCC'/Negative from 'B-'/Negative on October 6, 2008. The Negative Outlook on FO is aligned with FMC's and continues to reflect FMC's ownership of the Ford brand, the shareholder relationship between FO and FMC, and FO's export sales network dependence on the Ford of Europe system within FMC. Any further deterioration in FMC's Long-term IDR is likely to negatively affect FO's rating, given the aforementioned links. In assessing FO's rating and Outlook, Fitch has also taken its parent and subsidiary rating linkage criteria into consideration. In Fitch's view, the parent's weaker financial profile compared to the subsidiary and its weak operational and financial ties with FO warrant the two-notch rating differential between FMC and FO. This differential, however, has narrowed as FMC has moved further down on the rating scale, into the 'CCC' category. FMC's Long-term 'CCC' IDR does not have any direct and immediate impact on FO's financial profile or its ability to continue its production and delivery operations in Turkey and Europe. However, FO's export sales, representing 62% of FY07 revenues, remain dependent on FMC's international sales and distribution network in Europe. FMC and Koc Group of Turkey jointly control FO with a 41% stake each, while the remaining 18% is quoted on the Istanbul Stock Exchange. ============= U K R A I N E ============= ALTA LLC: Creditors Must File Claims by October 16 -------------------------------------------------- Creditors of LLC Alta (code EDRPOU 32747896) have until Oct. 16, 2008, to submit proofs of claim to: Vitaly Levin Liquidator/Insolvency Manager Ap. 32 Pochayninskaya Str. 50/49 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 21, 2008. The case is docketed as B 3/140-08. The Debtor can be reached at: LLC Alta 09000 Kiev Ofc. 1 Rose Luxembourg Str. 66 Skvira Ukraine ALTAIR-2004 LLC: Creditors Must File Claims by October 16 --------------------------------------------------------- Creditors of LLC Altair-2004 (code EDRPOU 32914267) have until Oct. 16, 2008, to submit proofs of claim to: Liudmila Romanchuk Liquidator/Insolvency Manager Ap. 258 Alma-Ata Str. 41-B 02092 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 18, 2008. The case is docketed as 23/194-b. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Altair-2004 Balzac Str. 81/1 02097 Kiev Ukraine D-CART LLC: Creditors Must File Claims by October 17 ---------------------------------------------------- Creditors of LLC D-Cart (code EDRPOU 33574639) have until Oct. 17, 2008, to submit proofs of claim to: R. Breus Liquidator Ap. 70 Novoprudnaya Str. 4 61018 Kharkov Ukraine The Economic Court of Kharkov commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 26, 2008. The case is docketed as B-48/105-08. The Economic Court of Kharkov Derzhprom 8th Entrance Svoboda Square 5 61022 Kharkov Ukraine The Debtor can be reached at: LLC D-Cart Shevchenko Str. 111-a 61013 Kharkov Ukraine ETALON-LIS LLC: Creditors Must File Claims by October 16 -------------------------------------------------------- Creditors of LLC Etalon-Lis (code EDRPOU 31512062) have until Oct. 16, 2008, to submit proofs of claim to: Igor Verkhatsky Liquidator/Insolvency Manager Ap. 38 Shelkovichnaya Str. 16 01024 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on March 21, 2006. The case is docketed as 15/49-b. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Etalon-Lis Proreznaya Str. 4 01034 Kiev Ukraine ECOMEBLIS LLC: Creditors Must File Claims by October 16 ------------------------------------------------------- Creditors of LLC Ecomeblis (code EDRPOU 34445392) have until Oct. 16, 2008, to submit proofs of claim to: The Economic Court of Odessa Shevchenko Avenue 4 65032 Odessa Ukraine The Economic Court of Odessa commenced bankruptcy supervision procedure on the company on Aug. 11, 2008. The case is docketed as 24/140-05-5498. The Debtor can be reached at: LLC Ecomeblis Ap. 72 Ac. Korolev str. 81b. 6 Odessa Ukraine HIMROST LLC: Creditors Must File Claims by October 17 ----------------------------------------------------- Creditors of LLC Himrost (code EDRPOU 31174074) have until Oct. 17, 2008, to submit proofs of claim to: I. Gusar Liquidator/Insolvency Manager P.O. Box 29 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on June 25, 2008. The case is docketed as 43/614. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Himrost Karelsky Lane 5 02094 Kiev Ukraine INFORMRESOURCE LLC: Creditors Must File Claims by October 16 ------------------------------------------------------------ Creditors of LLC Informresource (code EDRPOU 32081096) have until Oct. 16, 2008, to submit proofs of claim to: Maka Shoniya Liquidator/Insolvency Manager P.O. Box 7978 69001 Zaporozhje Ukraine Tel: 8(067)993-14-82 The Economic Court of Zaporozhje commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed as 19/209/08. The Court is located at: The Economic Court of Zaporozhje Shaumiana Str. 4 69001 Zaporozhje Ukraine The Debtor can be reached at: LLC Informresource Naberezhnoye Primorsky District Zaporozhje Ukraine METAL INDUSTRIAL: Creditors Must File Claims by October 17 ---------------------------------------------------------- Creditors of LLC Metal Industrial Investment (code EDRPOU 31897361) have until Oct. 17, 2008, to submit proofs of claim to: Yaroslav Onushkanich Liquidator Ap. 3 Striy Str. 71b 79031 Lvov Ukraine The Economic Court of Lvov commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 9, 2008. The case is docketed as 8/105. The Economic Court of Lvov Lichakivska Str. 81 79010 Lvov Ukraine The Debtor can be reached at: LLC Metal Industrial Investment B. Kotik Str. 7/105 79014 Lvov Ukraine PRIZMA LLC: Creditors Must File Claims by October 17 ---------------------------------------------------- Creditors of LLC Prizma (code EDRPOU 32223409) have until Oct. 17, 2008, to submit proofs of claim to: I. Gusar Liquidator/Insolvency Manager P.O. Box 29 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on June 25, 2008. The case is docketed as 43/613. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Prizma Radistov Str. 44-A 02322 Kiev Ukraine RODAN-AGRO LLC: Creditors Must File Claims by October 16 -------------------------------------------------------- Creditors of LLC Rodan-Agro (code EDRPOU 32683288) have until Oct. 16, 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 Aug. 26, 2008. The case is docketed as 10/4040. The Debtor can be reached at: LLC Rodan-Agro Tchizhevka Zvenigorod District Cherkassy Ukraine =========================== U N I T E D K I N G D O M =========================== ALBA 2007-1: Fitch Puts Class F Notes' BB Rating on Watch Negative ------------------------------------------------------------------ Fitch Ratings has placed Alba 2007-1 Plc on Rating Watch Negative following the issuer's announcement that its liquidity facility agreement has expired. On June 17, 2008, the liquidity facility provided for the transaction by Danske Bank expired without a standby-drawing being made in accordance with the terms of the liquidity facility agreement. Currently, the issuer is in the process of resolving this issue. Due to the role of the liquidity facility in providing support to the transaction, a failure to replace the facility could potentially result in multi-category downgrades. The RWN reflects that, without a replacement of the liquidity facility, the issuer will be left with no facility to provide interest payments on the notes if revenue receipts and the cash reserve are insufficient to cover interest payments on the notes. Although Fitch does not expect this scenario to be likely in the near term, the lack of a liquidity facility would have a rating impact under the agency's rating scenarios. Fitch expects to resolve the RWN once more information is obtained regarding the replacement of the liquidity facility provider. If no replacement or resolution is found, Fitch will take rating action before the next interest payment date, occurring in December 2008. The current ratings are: Alba 2007-1 Plc -- Class A1a (ISIN XS0301704077): 'AAA' on Rating Watch Negative -- Class A1b (ISIN XS0301704234): 'AAA' on Rating Watch Negative -- Class A2 (ISIN XS0301704747): 'AAA' on Rating Watch Negative -- Class A3 (ISIN XS0301721832): 'AAA' on Rating Watch Negative -- Class B (ISIN XS0301706288): 'AAA' on Rating Watch Negative -- Class C (ISIN XS0301707096): 'AA-' on Rating Watch Negative -- Class D (ISIN XS0301708060): 'A-' on Rating Watch Negative -- Class E (ISIN XS0301708573): 'BBB' on Rating Watch Negative -- Class F (ISIN XS0301708813): 'BB' on Rating Watch Negative -- MERC (ISIN XS0301962444): affirmed at 'AAA' Outlook Stable AMARANTH ACCESSORIES: Taps Joint Administrators from BDO Stoy ------------------------------------------------------------- David Gilbert and Antony Nygate (IP Nos 2376 and 9237) of BDO Stoy Hayward LLP were appointed joint administrators of Amaranth Accessories Ltd. (Company Number 05867663) on Sept. 25, 2008. ASK LEISURE: Brings in Joint Administrators from Tenon Recovery --------------------------------------------------------------- Steven Philip Ross and Ian William Kings of Tenon Recovery were appointed joint administrators of Ask Leisure Ltd. (Company Number 03490532) on Sept. 25, 2008. The company can be reached at: Ask Leisure Ltd. c/o Tenon Recovery Tenon House Ferryboat Lane Sunderland SR5 3JN England BARCLAYS BANK: To Raise GBP6.5 Billion Additional Capital --------------------------------------------------------- Barclays Bank PLC will raise in excess of GBP6.5 billion of Tier 1 Capital which will result in a pro forma Tier 1 Capital ratio as at June 30, 2008 of over 11%, the bank said in a press statement October 13. The additional capital, Barclays said, will be raised from investors without calling on the Government funding which has been offered to U.K. Banks. Barclays' plan, as approved by the U.K. Financial Services Authority, envisages: -- The issue of preference shares to raise cGBP3 billion by Dec. 31, 2008 as Barclays contribution to the commitment made by U.K. banks to increase Tier 1 capital by GBP25 billion in aggregate by year-end. -- The issue of new ordinary shares to raise GBP0.6 billion (US$1 billion) as announced on September 17 as part of the bank's announcement concerning the acquisition of Lehman Brothers North American investment banking and capital markets businesses. -- The issue of new ordinary shares to raise a further cGBP3 billion as soon as practicable after the announcement of the bank's full year 2008 results but before March 31, 2009. The offer of such shares will be structured so as to give existing shareholders full rights of participation. -- Balance sheet management and operational efficiencies to release at least a further GBP1.5 billion in equity resources. As part of the issuance of shares, Barclays has agreement in principle with an existing shareholder to contribute GBP1 billion in new capital, to be allocated between the stated component parts. No Dividend Payments for 2008 In the light of the new capital ratios agreed with the FSA and in recognition of the need to maximize capital resources in the current economic climate, the Board of Barclays has concluded that it would not be appropriate to recommend the payment of a final dividend for 2008. This dividend, amounting to GBP2 billion, would otherwise have been payable in April 2009. Barclays intends to resume dividend payments in the second half of 2009. Access to Facilities In the event that any of the proposed capital issuances do not proceed, Barclays, along with the other UK banks, would be eligible to have access to the capital facilities announced by the U.K. Government on Oct. 8, 2008. The terms of such facilities would be negotiated at the time and may be on terms less favorable than those recently made available. The U.K. Government has also confirmed that Barclays is eligible to use the extended facilities with the Bank of England and the U.K. Government guarantee of term unsecured issuance which have been made available to UK Banks. The bank will provide its interim management statement on Nov. 18, 2008. About Barclays Bank PLC Barclays Bank PLC -- http://www.barclays.com/-- is a global financial services provider engaged in retail and commercial banking, credit cards, investment banking, wealth management and investment management services with international presence in Europe, the United States, Africa and Asia. Barclays operates in over 50 countries and employs over 150,000 people. HBOS PLC: Government to Buy GBP8.5BB Shares Under Rescue Plan ------------------------------------------------------------- The U.K. government will bail out HBOS Plc by purchasing GBP8.5 billion of the company's shares at GBP113.6, an 8.5% discount to the company's closing price last Friday, Times Online and The Telegraph U.K. say. Reuters says the government has reserved GBP37 billion in taxpayers' money to rescue three major banks and become the bank's major shareholder. Bloomberg News reported Sunday that U.K. Prime Minister Gordon Brown's government will take majority stakes in Royal Bank of Scotland Group Plc and HBOS Plc. This will give the state control of a third of Britain's bank branches in an effort to contain the financial crisis, Bloomberg said citing two people familiar with the matter. Reuters relates that under the plan, Royal Bank of Scotland will boost its capital by GBP20 billion, issuing GBP15 billion worth of shares underwritten by the state, and GBP5 billion in preference shares directly taken by the government. The Telegraph writes that HBOS is also placing GBP3 billion of preference shares with the Government. After both shares issues, HBOS tier 1 capital ratio will be 12%, a significant strengthening for a company that, according to Citigroup in September, had about GBP258 billion in customer deposits and lending GBP456 billion. The Telegraph comments that Lloyds gets to acquire HBOS that is stronger -� but for a cheaper price. According to the Times Online, Lloyds TSB will raise about GBP5.5 billion, consisting of GBP4.5 billion in ordinary shares and GBP1 billion of preference shares. The ordinary shares will be sold for GBP173.3 each, also an 8.5% discount to last Friday's closing price. No dividends will be paid until the preference shares are paid off in full. Analysts at Cazenove speculated that this could take several years, the Times Online says. HBOS admitted being affected by the financial crisis while Lloyds TSB said it traded well in the second half of the year. HBOS CEO and Chair Forgo Payoffs HBOS chief executive officer and chairman of Plc will not take the payoffs they are entitled to when they leave the bank after its takeover by Lloyds TSB, Reuters relates, citing HBOS. CEO Andy Hornby is giving up his contractual entitlement of a year's salary of GBP940,000 (US$1.6 million) and possible bonus, which was over GBP700,000 last year, the report says. Chairman Dennis Stevenson is giving up his entitlement to a basic salary of GBP710,000. Royal Bank of Scotland's outgoing chief executive, Fred Goodwin, also said Monday he will not take a payoff when he leaves later this year, Reuters reports. About Royal Bank of Scotland Royal Bank of Scotland (LON: RBS) RBS) is a holding company of The Royal Bank of Scotland plc (Royal Bank) and National Westminster Bank Plc (NatWest), which are United Kingdom-based clearing banks. The company's activities are organized in six business divisions: Corporate Markets (comprising Global Banking and Markets and United Kingdom Corporate Banking), Retail Markets (comprising Retail and Wealth Management), Ulster Bank, Citizens, RBS Insurance and Manufacturing. On Oct. 17, 2007, RFS Holdings B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V., Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and controlled by RBS, completed the acquisition of ABN AMRO Holding N.V. (ABN AMRO). In July 2008, the company disposed its entire interest in Global Voice Group Ltd. About HBOS Plc HBOS Plc (LON: HBOS) is a United-Kingdom based company. It is the holding company of the HBOS Group. It operates through five divisions: Retail, Corporate, Insurance & Investment, International and Treasury & Asset Management. The company's Retail range of products includes personal and business banking products and services to 23 million customers. IVMD UK: Calls in Joint Administrators from BDO Stoy Hayward ------------------------------------------------------------ Dermot Justin Power and Matthew Dunham of BDO Stoy Hayward LLP were appointed joint administrators of IVMD UK Ltd. (Company Number 03344705) on Sept. 26, 2008. The company can be reached at: IVMD UK Ltd. c/o BDO Stoy Hayward LLP Commercial Buildings 11-15 Cross Street Manchester M2 1BD England JOPEJO LTD: Appoints Joint Administrators from BDO Stoy Hayward --------------------------------------------------------------- Dermot Justin Power and Matthew Dunham of BDO Stoy Hayward LLP were appointed joint administrators of Jopejo Ltd. (Company Number 04017544) on Sept. 26, 2008. The company can be reached at: Jopejo Ltd. c/o BDO Stoy Hayward LLP Commercial Buildings 11-15 Cross Street Manchester M2 1BD England KAUPTHING SINGER: Urges Icelandic Gov't. to Honor Guarantee ----------------------------------------------------------- Chief Minister Tony Brown MHK, on Friday, Oct. 10, 2008, confirmed that a parental guarantee was given in September 2007 by Kaupthing Bank hf, registered in Iceland, to discharge the liabilities, including client deposits, of its Isle of Man subsidiary Kaupthing Singer & Friedlander (Isle of Man) Ltd. "The Isle of Man Government is determined to protect depositors with the local subsidiary by pressing the Government of Iceland, which has nationalized Kaupthing Bank, to honor the commitment given to its Isle of Man based affiliate. "Accordingly, we have made representation to the United Kingdom Government - which is responsible for defending the Isle of Man's interests internationally � requesting them to press the Government of Iceland to honor Kaupthing's guarantee," the Chief Minster said. In the meantime the Isle of Man Government confirmed that the new Depositors' Compensation Scheme, included within the Compensation of Depositors Regulations 2008, came into operation immediately after approval of the Regulations by Tynwald on Thursday, Oct. 9, 2008. Liquidation On Thursday, Oct. 9, 2008, the Financial Services Commission confirmed that an Order has been made by the Courts appointing Michael Simpson of PricewaterhouseCoopers, Chartered Accountants as Liquidator provisionally of Kaupthing Singer & Friedlander (Isle of Man). The Petition for the winding up of the company has been adjourned until Friday, Oct. 24, 2008. The process will ensure that all depositors are treated fairly. Meanwhile the Commission is holding discussions with Mr. Simpson in order to monitor the position of depositors, and it will be for him to comment in due course on the extent of recoveries and other matters. The Commission has suspended the banking license of Kaupthing Singer & Friedlander (Isle of Man) with immediate effect. The demise of Kaupthing Singer & Friedlander (Isle of Man) was heavily affected by the inability of the parent bank to provide continuing support to the local business. Exactly the same issue appears to have affected the UK sister banking entity. Iceland is experiencing severe economic difficulties and this appears to have significantly contributed to problems at the parent bank, Kaupthing Bank hf. The consequential loss of confidence locally meant that the bank was unable to meet the prospect of sudden and exceptional withdrawals without continuing support which did not materialize. Receivership On Thursday, Oct. 9, 2008, the Icelandic Financial Supervisory (IFSA) has decided to take on the powers of Kaupthing Bank's shareholders' meetings. Furthermore, the board of directors has resigned. In addition, the IFSA has appointed a receivership committee to assume the powers of the board of directors with immediate effect. The members of the receivership committee are: Finnur Sveinbjornsson, Knutur Thorhallsson, Bjarki H. Diego, Gudny Arna Sveinsdottir and Steinar Thor Gudgeirsson. The receivership committee has asked Hreidar Mar Sigurdsson to remain as CEO of Kaupthing Bank hf. and be responsible for daily operations. About Kaupthing Bank Headquarted in Reykjavik, Iceland, Kaupthing Bank -- http://www.kaupthing.com-- is engaged in the provision of financial services, such as private banking, asset management, pension services, brokerage services, investment banking, as well as corporate and retail banking. The Bank's offer is targeted at companies, institutional investors and individuals. The Bank is operational in thirteen countries, including Luxembourg, Switzerland, the Nordic countries, the United Kingdom and the United States. The main subsidiaries include Kaupthing Singer & Friedlander and FIH Erhvervsbank. About Kaupthing Singer & Friedlander (Isle of Man) Kaupthing Singer & Friedlander (Isle of Man) Ltd. -- http://www.kaupthingsingers.co.im/-- is the UK subsidiary of Iceland-based Kaupthing Bank hf. LANDSBANKI ISLANDS: Dismisses Rumors Over Fund Transfers -------------------------------------------------------- Due to press reports and claims concerning fund transfers between Landsbanki subsidiaries and the parent company during the period leading up Icelandic financial enterprises being placed in receivership by the Icelandic FSA, as provided for by newly adopted legislation, Landsbanki would like to state the following: 1. No such transfers were made between Heritable Bank and Landsbanki during the period in question and Heritable Bank remained fully financed. 2. No transfers were made from Landsbanki London Branch to the parent company in Iceland during the period in question; on the contrary, Landsbanki Islands hf. transferred substantial funds to its UK branch during this time to fulfill its Icesave commitments. Landsbanki would like to emphasize in particular that reports of this matters and statements to this effect by UK Government officials do not apply in any way to Landsbanki. Receivership As reported in the TCR-Europe on Oct. 9, 2008, the Icelandic Financial Supervisory Authority (IFSA) has under powers granted by the Icelandic Parliament proceeded to take control of Landsbanki Islands hf. The IFSA has appointed a receivership committee which has assumed the role of the Board of Directors with immediate effect. Members of the receivership committee are: Arsaell Hafsteinsson, Einar Jonsson, Larentsinus Kristjansson, Larus Finnbogason and Sigurjon Geirsson. About Landsbanki Headquartered in Reykjavik, Iceland, Landsbanki Islands hf. -- http://www.landsbanki.is-- is engaged in the provision of retail, corporate an investment banking services. The Bank's product range includes financial products and services, such as specialty insurance and real estate financing, for both corporate and private clients. It is also operational through a number of subsidiaries, including Heritable Bank Ltd, operating consultancy and financing services for residential development; Landsbanki Holdings Europe SA, a Luxembourg-based holding company providing banking services; Landsbanki Guernsey Ltd, offering retail banking; Landsbanki Securities (UK) Holdings plc, engaged in the provision of stockbrokers and financial services; Landsvaki hf, an operation company for mutual funds; Verdbrefun hf, a securitization company; Landsbankinn eignarhaldsfelag hf, a real estate company, and others. * * * As reported in the TCR-Europe on Oct. 10, 2008, Moody's Investors Service has downgraded the bank financial strength rating (BFSR) of Landsbanki Islands hf to E from C-, its long-term deposit ratings to Caa1 from A2 and its senior unsecured ratings to Caa2 from A2. Consequently, the bank's Prime-1 short- term rating was downgraded to Not-Prime. In addition, the bank's subordinated, junior subordinated and preferred stock ratings were downgraded to C. The outlook on all ratings is developing. At the same time, Fitch Ratings has downgraded the Long-term Issuer Default ratings of Glitnir Banki hf. and Landsbanki Islands to 'B' from 'BBB-' and 'BBB' respectively, and that of Straumur Burduras Investment Bank to 'BB-' from 'BB+'. The ratings of Kaupthing Bank hf. are under review. This rating action follows the announcement of legislative measures providing for broad authority to Icelandic authorities to intervene in the Icelandic financial system and the statement that Landsbanki has been placed in receivership, and reflects Fitch's view that both the ability and propensity of the Icelandic authorities to support the Icelandic banking system are becoming increasingly compromised. The support rating floor for the major Icelandic banks is now 'B'. Both Glitnir, following the acquisition by the Icelandic authorities last month of a 75% stake, and Landsbanki, which was placed in receivership, are now at their support rating floor. Glitnir's Individual rating of 'F' is affirmed and Landsbanki's Individual rating has been downgraded to 'F' from 'C' to reflect the receivership arrangement. LEHMAN: Provides Update on Outstanding Settlement Transactions -------------------------------------------------------------- Following consultation with, and the agreement of, the Financial Services Authority (FSA), as well as consultation with the joint administrators of Lehman Brothers International Europe (LBIE) and other market participants, Euroclear UK & Ireland (EUI) which operates the CREST settlement system has instructed its members that all outstanding settlement instructions involving Lehman be match deleted by LBIE and counterparties. The FSA and EUI believe that this action will promote market confidence by providing certainty that all outstanding LBIE's transactions, by whatever route they were initially conducted (whether on-exchange, through other trading platforms or over the counter) will not settle through the CREST system, and will resolve the operational risks for CREST which have arisen out of LBIE's default. Resolution of the status of those underlying contracts not subject to the default rules of the relevant exchanges and/or clearing houses will remain a matter for bilateral agreement between the joint administrators and the counterparty concerned. 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. Dennis F. Dunne, Esq., Luc A. Despins, Esq., and Wilbur F. Foster, Jr., Esq., at Milbank, Tweed, Hadley & Mccloy LLP, in New York, and Paul Aronzon, Esq., and Gregory A. Bray, Esq., at Milbank in Los Angeles, California, represent the official unsecured creditors committee. 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 have 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. LUCAS OF MANSFIELD: Goes Into Administration -------------------------------------------- Car dealer Lucas of Mansfield has gone into administration, chad.co.uk reports. According to the report, the company's bosses said the recent drop in cars sales forced them to call in administrators. Nick Edwards, one of the administrators from Nottingham Business Advisers Cooper Parry told chad.co.uk that showrooms continue to open in the short term to sell its remaining stock of cars. Founded in 1918 by Reginald Lucas, Lucas of Mansfield operates Subaru, Proton, Daihatsu, and Isuzu dealerships from premises on Nottingham Road, employing 27 people. LUDGATE FUNDING: S&P Junks Rating on Class S Notes to CCC from B- ----------------------------------------------------------------- Standard & Poor's Ratings Services has lowered and removed from CreditWatch with negative implications its credit ratings on the series 2006-FF1 class C, D, E, and S notes issued by Ludgate Funding PLC. The class Ba and Bb notes have been removed from CreditWatch negative and affirmed, and the class A2a, A2b, and MERCs have been affirmed. The rating actions follow a full credit and cash flow analysis of the most recent loan-level information, particularly taking into account the current and expected levels of the transaction reserve, in the near term. This analysis showed that the credit enhancement available for the class C, D, E, and S notes was insufficient to maintain the existing ratings on these notes. The transaction drew GBP216,504 of its reserve fund balance on the September 2008 interest payment date (IPD). The reserve fund is now GBP82,315, representing 0.04% of the outstanding mortgage balance, or 5.49% of the reserve required amount of GBP1.5 million. This is the fourth reserve fund draw on consecutive IPDs. The reserve fund draws are primarily driven by the unhedged differences in the interest rate received from the loans, which are linked to the bank base rate (BBR), and payments due on the notes, which are linked to three-month LIBOR. S&P accounted for this risk at closing by looking at the historical difference between LIBOR and BBR and modeling this additional risk in its cash flow analysis. S&P incorporated the current dislocation between these interest rates into the current cash flow analysis. The recent BBR reduction to 4.5% will lower the monthly payments for the borrowers for the third month in this quarter. However, this will increase the differential between BBR and LIBOR for this month (LIBOR was set for the quarter at 5.75%), placing further pressure on the cash flows. Repossessions have increased to 1.42% from 0.92% as of the most recent investor report. Cumulative principal losses were GBP220,702, representing 0.06% of the original balance. With house prices likely to continue falling in the coming months, S&P expects to see higher losses in all U.K. residential mortgage- backed securities (RMBS) transactions. The reserve fund may become fully depleted on the next IPD. This would leave an uncleared balance on the class E note PDL. The depletion of the reserve fund is highly dependent on the collection rate achieved and the principal losses. The liquidity facility may also be required to pay interest on the class E notes if the total revenue payments, including the reserve fund, are cannot meet the fees, expenses, and interest on the notes. The liquidity facility provider is Barclays Bank PLC (AA/Watch Neg/A- 1+). The balance of the liquidity facility is GBP19.87 million, all of which is currently available to pay interest on the collateral-backed notes, if required. S&P will continue to monitor the performance of this transaction using the most recent loan-level data for full credit and cash flow analyses. S&P will pay particular attention to future repossessions, losses, and changes in collection rates and prepayment rates. Ludgate Funding PLC -- GBP271.8 Million And EUR156.4 Million Mortgage-Backed Floating-Rate Notes Series 2006-FF1 Ratings Lowered and Removed From CreditWatch Negative: Class To From ----- -- ---- C BBB BBB+/Watch Neg D BB BB+/Watch Neg E B BB/Watch Neg S CCC B-/Watch Neg Ratings Removed From CreditWatch Negative And Affirmed: Class To From ----- -- ---- Ba A+ A+/Watch Neg Bb A+ A+/Watch Neg Ratings Affirmed: A2a AAA A2b AAA MERCs AAA PIPE & PROCESS: Taps Tenon Recovery to Administer Assets -------------------------------------------------------- J. K. Rolls and T. J. Binyon of Tenon Recovery were appointed joint administrators of Pipe & Process Projects Ltd. (Company Number 04582063) on Sept. 26, 2008. The company can be reached at: Pipe & Process Projects Ltd. 3-8 Trinity Trading Estate Tribune Drive Sittingbourne Kent ME10 2PG England ROSEBYS GROUP: Closes 31 Outlets; Axes 186 Jobs ----------------------------------------------- The Joint Administrators of the Rosebys group of companies confirmed that they have this week closed a further 31 of the home textile retail chain's outlets, making 186 people redundant. In addition, the administrators have also closed the Rosebys distribution center in Selby, North Yorkshire, with the loss of 87 jobs. Howard Smith, Joint Administrator and KPMG Restructuring Associate Partner, said: "It is with regret that we have had to close both the distribution center in Selby and 31 more stores across the country. We anticipate further store closures next week, while we continue to have dialogue with a number of parties who are interested in either the whole or parts of the business." Outlets closed during the week commencing Monday, Oct. 6, with the accompanying number of redundancies: * Dagenham (7) * Ilford (6) * Hammersmith (8) * Walsall (6) * Stevenage (5) * Walthamstow (6) * Maidstone (6) * Burton (6) * Liverpool (5) * Hartlepool (5) * Hounslow (6) * Barnsley (5) * Lewisham (7) * Chelmsford (7) * Sutton (8) * Peterborough (7) * Woking (5) * Edinburgh (5) * Nottingham Victoria Centre (3) * Lowestoft (4) * Thurrock (8) * Worthing (7) * Hull (6) * Maidenhead (4) * York (5) * Camberley (5) * Stirling (6) * Hemel Hempstead (5) * Dundee (6) * Wolverhampton (5) * Leeds White Rose Centre (12) As reported in the TCR-Europe on Oct. 7, 2008, Rosebys group of companies have received 45 expressions of interest in the business to date and are liaising with interested parties. About KPMG LLP (UK) KPMG LLP (UK) -- http://kpmg.co.uk/-- provides professional services including audit, tax, financial and risk advisory. KPMG in the UK has over 10,000 partners and staff working in 22 offices and is part of a strong global network of members firms. As part of KPMG Europe it has merged with its German and Swiss firms, making it the largest integrated accounting firm in Europe. About Rosebys Based in Yorkshire, Rosebys is a textiles retailer. The company has an annual turnover of GBP100 million. It employs 2,000 staff. SIGNUM FINANCE: S&P Junks Series 2005-7 Combo Notes to CC From BB ----------------------------------------------------------------- Standard & Poor's Ratings Services has lowered its rating on the combination securities notes from Signum Finance II PLC's series 2005-7 and removed it from CreditWatch with negative implications, where it was placed Sept. 23, 2008. The rating on the notes from series 2005-7 is supported by underlying bonds issued by Lehman Bros. Treasury Co. B.V. and is guaranteed by Lehman Bros. Holdings Inc. The downgrade therefore reflects our recent actions on Lehman Bros. and its related entities. Rating lowered and removed from CreditWatch Negative: Signum Finance II PLC Series 2005-7 Class To From ----- -- ---- Combo notes CC BB/Watch Neg UK DIGGERS: Appoints Joint Administrators from Baker Tilly ---------------------------------------------------------- Graham Paul Bushby and Guy Edward Brooke Mander of Baker Tilly Restructuring & Recovery LLP were appointed joint administrators of UK Diggers Ltd. (Company Number 04722565) on Sept. 24, 2008. The company can be reached at: UK Diggers Ltd. UKD House Hilton Industrial Estate Sutton Lane Hilton DE65 5FE England * S&P Notes Continuing Market Pressure For UK RMBS Transactions --------------------------------------------------------------- U.K. residential mortgage-backed securities (RMBS) transactions continue to suffer from a range of risks relevant to their ratings, according to a report published by Standard & Poor's Ratings Services. U.K. RMBS transactions are under pressure from a number of factors, in particular, falling house prices, high levels of delinquencies, slowing refinancing rates, more severe losses on repossessions, and ongoing draws on transactions' reserve funds. These factors are being felt more acutely in the nonconforming sector and in more recent (2006 and 2007) transactions. Outside of these particular areas, RMBS ratings continue to be generally stable. In recent years, S&P hasn't downgraded any U.K. RMBS. On the contrary, the nonconforming RMBS sector experienced considerable upgrade rates. Looking ahead, however, stressful conditions in the housing and mortgage funding markets currently show no signs of easing, in S&P's opinion. "In the nonconforming sector, we believe that downgrade rates will continue to increase, with speculative-grade or low investment- grade ratings most likely to be affected first, while most high investment-grade ratings should remain more stable," said S&P's credit analyst Kate Livesey. "Since the beginning of 2008, the nonconforming sector has seen downgrades for the first time in its history, with the vast majority of negative rating actions affecting transactions that closed in 2006 and 2007," Ms. Livesey said. "Upgrades have continued, but in smaller numbers, and have been restricted to transactions from the 2003-2005 vintages." Ms. Livesey added: "By contrast, all U.K. prime RMBS transactions that we rate have continued to perform well in 2008, with no reserve fund draws, and no ratings lowered in any of the outstanding transactions to date. However, delinquency levels and repossessions are rising and we expect house price declines -- and their subsequent impact on indexed loan-to-value ratios -- to also potentially put downward pressure on prime RMBS ratings." * UK Gov't. Implements Financial Support Measures for Banks ----------------------------------------------------------- With continuing exceptional instability in the global financial markets, the UK Government is taking decisive action, by implementing the comprehensive set of measures it announced on Oct. 8, to make commercial investments in UK banks and building societies to help stabilize their position and support the long term strength of the economy. The overall aim of these measures is to support stability in the financial system; to protect ordinary savers, depositors, businesses and borrowers; and to safeguard the interests of the taxpayer. In summary, the measures intend to: * provide sufficient liquidity in the short term; * make available new tier 1 capital to UK banks and building societies to strengthen their resources permitting them to restructure their finances, while maintaining their support for the real economy, through the recapitalization scheme which has been made available to eligible institutions; and * ensure that the banking system has the funds necessary to maintain lending in the medium term through the credit guarantee scheme available to eligible institutions in relation to new short and medium term debt issuance. The authorities have continued their detailed discussions with the institutions who confirmed their participation in the recapitalization scheme last week. These institutions committed in aggregate to increase their total tier 1 capital, either through their own actions or, where requested, through support from the Government's recapitalization scheme in the form of preference and ordinary share capital. The Government is making capital investments to RBS, and upon successful merger, HBOS and Lloyds TSB, totaling GBP37 billion. Following the completion of these capital investments, each of the above institutions will have a Tier 1 capital ratio in excess of 9%, well above international minimum standards and at a level that should put them on a strong footing for the future. All participating institutions are eligible to take advantage of the Government's credit guarantee scheme. As part of its investment, the Government has agreed with the banks supported by the recapitalization scheme a range of commitments covering: * maintaining, over the next three years, the availability and active marketing of competitively-priced lending to homeowners and to small businesses at 2007 levels; * support for schemes to help people struggling with mortgage payments to stay in their homes, and to support the expansion of financial capability initiatives; * remuneration of senior executives - both for 2008 (when the Government expects no cash bonuses to be paid to board members) and for remuneration policy going forward (where incentive schemes will be reviewed and linked to long-term value creation, taking account of risk; and restricting the potential for "rewards for failure"); * the right for the Government to agree with boards the appointment of new independent non-executive directors; and * dividend policy. The recapitalizations are designed to enable participating banks to achieve prudent but efficient capital structures. The Government intends to create a new arms length body to manage the Government's shareholdings in recapitalized institutions on a professional and wholly commercial basis, and seek to effectively realize value to the taxpayer. Transparent arrangements will be put in place to ensure that any role for the Government in relation to investment decision-making is clearly defined. The Government is not a permanent investor in UK banks. Its intention, over time, is to dispose of all the investments it is making as part of this scheme in an orderly way. The measures support stability in the wider financial system, and protect the interest of taxpayers, depositors and savers. The Government has informed the European Commission of the schemes. The Government stands ready to provide support through the schemes to all eligible institutions, on the basis of the conditions set out in its announcement last week. The Government is continuing to collaborate internationally to stabilize and strengthen the global financial system, following the meetings of G7 and G20 Finance Ministers and the IMF on Friday and Saturday. Other countries have announced measures to stabilize their own financial systems. In parallel with other central banks, the Bank of England is today announcing expanded swap lines with the US Federal Reserve and that the Bank will supply dollar liquidity to the banking system against collateral at a pre-set price with no fixed limit on the amount. The Bank will continue to take all actions necessary to ensure that the banking system has access to sufficient liquidity. With the first successful implementation of the schemes announced last week now completed, the Government has taken decisive and extraordinary action to support the banking system during this period of exceptional financial turbulence, and to strengthen the system for the future as markets stabilize. * European Commission Approves UK Support Scheme for Banks ---------------------------------------------------------- The European Commission has approved under EC Treaty state aid rules a UK package intended to stabilize the financial markets. The package would provide new capital to eligible banks and building societies, guarantee short and medium term debt to encourage inter-bank lending and offer liquidity to banks under strict conditions. The measures were notified and assessed over the weekend and approved Monday, Oct. 13, under a new accelerated procedure for emergency rescue measures. The Commission found the measures to be compatible with EU state aid rules, because they were an appropriate means to remedy a serious disturbance in the UK economy (Article 87.3.b of the EC Treaty), while avoiding unnecessary distortions of competition. In particular, the package provides for non-discriminatory access, is limited in time and scope and contains safeguards to avoid the abuse of the scheme. The UK measures are therefore in line with the guidance just issued by the Commission. Competition Commissioner Neelie Kroes said: "The excellent cooperation with the UK authorities and our streamlined procedures have allowed the Commission to approve very quickly this innovative and well-designed support scheme for UK banks. The scheme will contribute to the recovery of European financial markets, without creating undue distortions of competition." On Oct. 11, 2008, the UK Authorities notified a package of measures designed to ensure the stability of the UK financial system. The package consists of: * A recapitalization scheme, making available new capital to banks and building societies in exchange for preference or ordinary shares, to allow them to strengthen their balance sheets against possible losses; * A guarantee scheme covering the new issuance of short and medium term debt, in return for market-oriented remuneration, to support fundamentally sound banks that, due to the current crisis, are unable to access funding and * An extension of the short term liquidity measures provided by the Bank of England. The Commission concluded that the package constituted an appropriate means to restore confidence in the creditworthiness of UK financial institutions and to stimulate inter-bank lending. In particular, the package is limited in time and scope and provides non-discriminatory access for financial institutions with substantial business in the UK. It caps the future lending activity of participating institutions with regard to their past balance sheets, in order to avoid abusive expansion, based solely on advantages derived from the state support. At company level, it limits managers' remuneration and requires the beneficiaries to respect good governance practices. Companies that benefited from capital injections and that intend to maintain the state's shareholding beyond a certain timeframe have to submit a restructuring plan to the Commission. Debt guarantees on newly issued debt will be available only to financially sound beneficiaries that meet certain capital ratios. Finally, the UK has committed to report to the Commission every six months on the execution of the scheme. * FSA Fines Alliance & Leicester GBP7 Million for PPI Failings -------------------------------------------------------------- The Financial Services Authority, on Tuesday, Oct. 7, 2008, fined Alliance & Leicester Plc (A&L) GBP7 million for serious failings in its telephone sales of payment protection insurance (PPI). For three years from January 2005 to December 2007 A&L sold approximately 210,000 PPI policies to customers seeking a personal loan at an average price of GBP1,265, but there was a general failure by advisers to give customers details of the cost of PPI. In addition A&L sought to find reasons to sell PPI without properly considering what customers needed. A&L did not make it sufficiently clear that PPI was optional and it trained its staff to put pressure on customers where they queried the inclusion of PPI in their quotation or challenged advisers' recommendations. These failings resulted in unacceptable levels of non-compliant sales and a high risk of unsuitable sales over the three year period. "The failings at A&L are the most serious we have found. This is reflected in the record PPI fine," Margaret Cole, FSA Director of Enforcement, said. "It is very disappointing that after three years of regulation we are still finding serious problems in PPI sales. "This case shows that we will continue to step up the action we take when firms do not sell PPI properly. Customers should be able to rely on impartial advice based on their individual needs and demands. It is particularly unacceptable for a firm to train its advisers to put pressure on customers when recommending insurance cover which they have not asked for and may not need. Firms cannot rely on paperwork sent out later as an excuse for unclear or misleading statements given on the telephone. "As we said in our recent update on our PPI work, firms must ensure their PPI sales processes are up to the required standards. They must change their behavior where necessary and if they are either unwilling or unable to sell this product in a compliant way, making sure that customers are treated fairly, they should not be selling it at all." A&L has agreed to implement a substantial and comprehensive customer contact program, overseen by third party accountants. It will write to all customers who took out policies by telephone in conjunction with an unsecured loan between Jan. 14, 2005 and Dec. 31, 2007, prompting them to review their policy against product information sent to them. It will also review any relevant rejected complaints and claims and has committed to pay redress where appropriate. This remedial action has been taken into account by the FSA and has reduced the level of penalty which would otherwise have been imposed on the firm. In addition, A&L qualified for a 30% reduction in penalty by settling at an early stage of the FSA's investigation. Were it not for this discount, the FSA would have imposed a financial penalty of GBP10 million. * EU Commission Gives Guidance on Measures for Banks in Crisis -------------------------------------------------------------- The European Commission has published guidance on how Member States can best support financial institutions in the current financial crisis whilst respecting EU state aid rules and so avoiding excessive distortions of competition. The guidance is based in particular on EC Treaty rules allowing for aid to remedy a serious disturbance in the economy of a Member State (Article 87.3.b of the EC Treaty). The guidance will help Member States to put in place coordinated concrete measures to restore confidence in financial markets in accordance with the Oct. 12 Eurogroup declaration. EU state aid rules require that measures taken do not give rise to disproportionate distortions of competition, for example by discriminating against financial institutions based in other Member States and/or allowing beneficiary banks to unfairly attract new additional business solely as a result of the government support. Other requirements include that measures must be limited in time and foresee adequate contributions from the private sector. The Commission will aim to approve schemes that comply with this guidance very quickly (within 24 hours, if possible). Competition Commissioner Neelie Kroes said: "By adopting this guidance the Commission has delivered very quickly on its undertaking given to the EU's Council of Finance Ministers on 7th October to help Member States to act in a coordinated and effective manner to address urgent problems facing the financial sector. This guidance demonstrates how the state aid rules form an important part of the solution to current problems on financial markets and serves as a timely complement to the 12th October Eurogroup agreement on action to safeguard the financial system" The Commission's guidance (in the form of a Communication) indicates how the Commission intends to apply EC Treaty state aid rules to state support schemes and individual assistance for financial institutions in the current crisis. Support schemes such as guarantees or recapitalization schemes can be cleared by the Commission very quickly if they fulfill conditions which guarantee that they are well-targeted and proportionate to the objective of stabilizing financial markets and contain certain safeguards against unnecessary negative effects on competition. The specific conditions include: * Non-discriminatory access in order to protect the functioning of the Single Market by making sure that eligibility for a support scheme is not based on nationality * State commitments to be limited in time in such a way that it is ensured that support can be provided as long as it is necessary to cope with the current turmoil in financial markets but will be reviewed and adjusted or terminated as soon as improved market conditions so permit * State support to be clearly defined and limited in scope to what is necessary to address the acute crisis in financial markets while excluding unjustified benefits for shareholders of financial institutions at the taxpayer's expense * An appropriate contribution of the private sector by way of an adequate remuneration for the introduction of general support schemes (such as a guarantee scheme) and the coverage by the private sector of at least a significant part of the cost of assistance granted * Sufficient behavioral rules for beneficiaries that prevent an abuse of state support, like for example expansion and aggressive market strategies on the back of a state guarantee * An appropriate follow-up by structural adjustment measures for the financial sector as a whole and/or by restructuring individual financial institutions that had to rely on state intervention. The observance of these principles, including in individual aid measures, will have to be ensured by Member States and will be monitored by the Commission. The Commission is available to advise Member States, on the basis of this guidance, on how best to tailor national measures to comply with EU state aid rules in advance of finalization of a particular scheme. The Communication is based on the principles underpinning the existing Rescue and Restructuring Guidelines, taking into account the particular circumstances applying to the financial sector in the context of the current exceptional crisis that can be considered to constitute a serious disturbance in the economy of a Member State within the meaning of the state aid rules (Article 87.3.b). The text of the guidance Communication is available at: http://ec.europa.eu/competition/state_aid/legislation/horizontal.h tml * Large Companies with Insolvent Balance Sheet ---------------------------------------------- Shareholders Total Working Equity Assets Capital Ticker (US$MM) (US$MM) (US$MM) ------ ----------- ------- -------- AUSTRIA ------- Libro AG (111) 174 (168) Sky Europe (3) 213 (53) BELGIUM ------- Sabena S.A. (86) 2,223 (280) CZECH REPUBLIC -------------- Ceskomoravska Kolben & Danek Praha Holding (89) 192 (58) Setuza A.S. (61) 138 (61) DENMARK ------- Elite Shipping (28) 101 3 Roskilde Bank (532) 7,877 N.A. FRANCE ------ BSN Glasspack (101) 1,150 159 Grande Paroisse S.A. (927) 629 346 Immob Hoteliere (67) 301 (17) Lab Dosilos (28) 110 (17) Matussiere et Forest S.A. MTF (78) 294 (38) Pagesjaunes GRP PAJ (3,023) 1,377 (453) Rhodia SA (504) 7,213 712 Selcodis S.A. SPVX (21) 140 (35) Trouvay Cauvin (0) 134 10 Usines Chausson (23) 249 35 GERMANY ------- Alno AG ANO (21) 340 (88) Brokat AG (27) 143 108 CBB Holding AG COB (43) 905 N.A. Cinemaxx AG MXC (38) 178 (47) Dortmunder Actien-Brauerei DABG (13) 118 (28) EM.TV AG EV4G.BE (22) 849 19 Kaufring AG KAUG (19) 152 (48) Kunert AG (28) 102 29 Maternus Kliniken AG MAK.F (21) 204 (99) Nordsee AG (8) 195 (14) Primacom AG PRC (14) 730 (68) Spar Handels- AG SPAG (442) 1,433 (294) TA Triumph-Adler TWN (66) 484 (77) Vivanco Gruppe (10) 131 28 GREECE ------ Empedos SA (34) 175 56 Noussa Spin (11) 450 (107) Petzetakis-PFC PETZP (9) 284 (143) Radio A.Korassidis KORA (101) 181 (164) Commercial Themeliodome (56) 232 (128) United Textiles (11) 450 (108) HUNGARY ------- Brodograde Indus (322) 119 (366) IPK Osijek DD OS (12) 128 (82) OT Optima Teleko (26) 119 8 ICELAND ------- Decode Genetics Inc. DCGN (187) 111 48 IRELAND ------- Elan Corp PLC ELN (388) 1,599 705 Waterford Wed Ut WTFU (125) 972 278 ITALY ----- A.S. Roma S.p.A. ASR (12) 188 (67) Binda S.p.A. BND (11) 129 (23) Cirio Finanziaria S.p.A. (422) 1,583 N.A. Gruppo Coin S.p.A. GC (151) 791 (61) Compagnia Italia ICT (138) 527 (318) Credito Fondiario e Industriale S.p.A. (200) 4,215 N.A. Eurofly S.p.A. (7) 180 (52) Fullsix (4) 114 (18) I Viaggi del Ventaglio S.p.A. VVE (64) 529 (127) Olcese S.p.A. OLCI.MI (13) 180 (80) Parmalat Finanziaria S.p.A. (18,421) 4,121 (16,921) Snia S.p.A. SN (12) 447 31 Technodiffusione Italia S.p.A. TDIFF.PK (90) 152 (30) NETHERLANDS ----------- Baan Company N.V. BAAN (8) 610 46 James Hardie Ind. (238) 2,357 183 United Pan-Euro Air UPC (5,506) 5,113 (9,170) NORWAY ------ Interoil Exploration IOX (9) 205 (11) Petroleum-Geo Services PGO (18) 400 (758) POLAND ------ Toora (288) 147 (85) ROMANIA ------- Oltchim RM Valce OLT (7) 673 (170) Rafo Onesti RAF (430) 353 (616) RUSSIA ------ East Siberia Brd VSNK (113) 148 (10) Gukovugol (57) 144 (147) Omskij Kauchu OMKA (4) 125 (68) OAO Samaraneftegas (332) 892 (611) Vimpel Ship SOVP (93) 281 (420) Zil Auto ZILLP (178) 425 (10,597) SPAIN ----- Altos Hornos de Vizcaya S.A. AHV (116) 1,283 (278) Santana Motor S.A. LRSA (46) 223 41 SWITZERLAND ----------- Fortune Management (85) 348 (37) TURKEY ------ Nergis Holding (24) 125 26 Yasarbank (948) 623 N.A. UKRAINE ------- Dniprooblenergo DNON (51) 433 (1,010) Donetskoblenergo DOON (341) 573 (2,365) UNITED KINGDOM -------------- Abbott Mead Vickers (2) 168 (16) Alldays Plc (120) 252 (202) Amey Plc AMY (49) 932 (47) Atkins (WS) Plc ATK (150) 1,390 62 Bagleys Investment (247) 1,094 (126) BCH Group Plc BCH (6) 188 (44) Blenheim Group BEH (153) 198 (34) Booker Plc BKRUY (60) 1,298 (8) Bradstock Group BDK (2) 269 5 Brent Walker Group BWL (1,774) 867 (1,157) British Energy Ltd (5,823) 4,921 290 British Energy Plc BGY (5,823) 4,921 434 British Nuclear Fuels Plc (4,248) 40,326 977 Carlisle Group (12) 204 15 Compass Group CPG (668) 2,972 (298) Dowson Holding DWN (18) 226 31 Dignity Plc DTY (9) 648 35 Easybroker PLC (1) 287 (1) Easynet Group ESY.L (45) 323 38 Electrical and Music Industries Group EMI (2,266) 2,950 (296) Evans Healthcare (86) 239 (144) Global Green Tech Group (156) 408 (18) Imperial Chemical Industries Plc ICI (370) 8,393 2 Ladbrokes Plc LAD (894) 2,139 (356) Lambert Fenchurch Group (1) 1,827 3 Legal & Gen. Fin. (7) 3,576 (522) M 2003 Plc (2,204) 7,205 (756) Misys Plc MSY (7) 1,123 (131) Mytravel Group MT.L (380) 1,818 (488) New Star Asset (418) 368 10 Next Plc (156) 3,224 (63) Norbain Finance (10) 280 (10) Orange Plc ORNGF (594) 2,902 7 Rank Group Plc (26) 1,209 (88) Regus Plc (46) 367 (60) Saatchi & Saatchi SSI (119) 705 (41) SFI Group SUF (108) 178 (162) Skyepharma PLC SKP (117) 212 11 Spirit Group (75) 365 (56) Telewest Communications Plc TLWT (3,702) 7,581 (5,631) Trio Finance TRIO (14) 592 N.A. Wincanton Plc WIN (27) 1,451 (78) ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than US$3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/booksto order any title today. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Zora Jayda Zerrudo Sala, Pius Xerxes Tovilla, Joy Agravante, 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 * * *