/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/081021.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 21, 2008, Vol. 9, No. 209 Headlines A U S T R I A FED LLC: Claims Registration Period Ends November 4 RENOVIERUNGSSERVICE BGG: Claims Registration Ends November 4 TAXI K.L.L.: Claims Registration Period Ends November 4 G E R M A N Y ABIB VERWALTUNGS: Claims Registration Period Ends Oct. 27 BAUCLASSIC GMBH: Claims Registration Period Ends Oct. 26 BAU-STUDIO GMBH: Creditors' Meeting Slated for November 6 CHILEHAUS HAMBURG: Claims Registration Period Ends October 27 FRUEHTAU CREATIVE: Claims Registration Period Ends October 27 HEBA-BAU: Claims Registration Period Ends October 27 KABTRONIK GMBH: Claims Registration Period Ends October 27 LEAR CORP: S&P Cuts Corp. Credit to 'B' on Weak Sales & Cash Flow PLANQLB GMBH: Claims Registration Period Ends October 27 RETAIL STORES: Creditors' Meeting Slated for Oct. 27 SIAM GESELLSCHAFT: Claims Registration Period Ends Oct. 24 I R E L A N D LANDSOWNE MORTGAGE: S&P Puts Class B2 Notes BB+ Rating on WatchNeg MAGNOLIA FINANCE: Fitch Junks Ratings on Two Classes of Notes I T A L Y CIRENE FINANCE: S&P Retains BB-Rated Class E Notes on Watch Neg. K A Z A K H S T A N DELTA OIL: Creditors Must File Claims by November 28 JEZPROM LLP: Claims Deadline Slated for November 26 KAS STROY MARKET: Claims Filing Period Ends November 26 KAZ TEPLO: Creditors' Claims Due on November 26 ROOFING PRODUCTIONS: Claims Registration Ends November 26 SEV KAZ: Creditors Must File Claims by November 28 SPRINT AKTAU: Claims Deadline Slated for November 26 K Y R G Y Z S T A N KYRGYZ SAMOTSVETY: Creditors Must File Claims by November 14 N E T H E R L A N D S SIRENS BV: Fitch Cuts Notes Ratings to 'B' on Neg. Price Movements R U S S I A ENERGOLES LLC: Creditors Must File Claims by December 3 OKA-MET LLC: Creditors Must File Claims by December 3 RENAISSANCE CAPITAL: S&P Changes Rating Outlook to Negative RUSSIAN UNIVERSAL: Fitch Affirms Individual Rating at 'D/E' SITRONICS JSC: Moody's Shifts Outlook on B3 CFR to Negative STEEL-INVEST LLC: Moscow Bankruptcy Hearing Set December 2 UNIKOM LLC: Primorskiy Bankruptcy Hearing Set December 3 VOLGOGRAD-NEFTE-GAZ-STROY: Creditors Must File Claims by Dec. 3 S P A I N FTPYME PASTOR 3: S&P Puts BB-Rated Class C Notes on Negative Watch * SPAIN: Moody's Says Addtn'l Gov't Measures Won't Affect Ratings S W E D E N FORD MOTOR: John Bond & Jorma Ollila Leave Board Member Posts S W I T Z E R L A N D GIPSKONZEPT LLC: Creditors Must File Proofs of Claim by Oct. 31 GECKO HOLDING: Deadline to File Proofs of Claim Set Nov. 1 GENERAL MOTORS: Starts Looking for Hummer Buyer GLASAG JSC: Creditors Have Until Nov. 1 to File Claims HANS FREI: Proofs of Claim Filing Deadline is Nov. 1 HBS-KLIMATECHNIK JSC: Creditors' Proofs of Claim Due by Oct. 31 PLANALT CONSULTING: Nov. 1 Set as Deadline to File Claims UBS: In Talks With Former Executives Over Compensation Payment U K R A I N E AZOVSTAL IRON: S&P Puts B+ Corporate Credit Rating on Watch Neg. DTEK HOLDINGS: Fitch Puts 'B+' LT Local Currency IDR; Outlook Neg. GISKON-TRADE: Court Names A. Finko as Insolvency Manager INDUSTRIAL-BUILDING: Creditors Must File Claims by October 24 INTERPIPE LTD: S&P Places B+ Corp. Credit Rating on Negative Watch KIEV-INCOME LLC: Creditors Must File Claims by October 22 OKNOPLAST-GROUP LLC: Creditors Must File Claims by October 24 NAFTOGAZ OJSC: Fitch Trims LT Foreign & Local Currency IDRs to 'B' SPECIAL MOTOR: Creditors Must File Claims by Oct. 24 SYSTEMS AND TECHNICS: Creditors Must File Claims by October 22 TAIG LLC: Creditors Must File Claims by October 22 UKRAINIAN RECONSTRUCTION: Creditors Must File Claims by Oct. 24 * CITY OF KYIV: Fitch Trims LT IDRs to 'B+'; Keeps Neg. Outlook * UKRAINE: Fitch Cuts IDRs to 'B+'; Keeps Negative Outlook * UKRAINE: Fitch Cuts Foreign Currency Ratings on Two Companies U N I T E D K I N G D O M AMERICAN INT'L: Sens. Want Halt on Mortgage Law Change Efforts ALEXANDER RICHARDS: Appoints Liquidators from BDO Stoy Hayward DEE THAIN: Joint Liquidators Take Over Operations EXETER BLUE: Fitch Assigns 'BB' Rating on EUR8.5MM Class E Notes GEMINI ECLIPSE: S&P Cuts Class E Notes Rating to BB; Keeps Watch INFORMATION ASSURANCE: Brings in Liquidators from Tenon LANDSBANKI GUERNSEY: To Pay Depositors 30 Pence in the Pound MAKRITE LTD: M. H. Abdulali Leads Liquidation Procedure M J L DECORATING: Taps Liquidators from Tenon Recovery NWLCC LTD: Claims Filing Period Ends October 31 PETER MORRIS: Taps Liquidators from Vantis Business Recovery SNOWDONIA SECURITIES: S&P Removes Watch on BB-Rated Class D Notes THEATR GWYNEDD: Goes Into Liquidation TYKE SHOPFITTERS: Hires Liquidators from Mazars US ENERGY: Has Until December 5 to Solicit Acceptances of Plan WINDERMERE VIII: S&P Lowers Rating on Class E Notes to B-/WatchNeg XL LEISURE: AADB Launches Probe Into BDO's Conduct as Auditors * Large Companies with Insolvent Balance Sheet ********* ============= A U S T R I A ============= FED LLC: Claims Registration Period Ends November 4 --------------------------------------------------- Creditors owed money by LLC FED have until Nov. 4, 2008, to file written proofs of claim to the court-appointed estate administrator: Dr. Bernhard Huber Schillerstraße 12 4020 Linz Austria Tel: 65 69 69 Fax: 65 69 69 60 E-mail: b.huber@hep.co.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on Nov. 18, 2008, for the examination of claims at: The Land Court of Linz Hall 522 Linz Austria Headquartered in Linz, Austria, the Debtor declared bankruptcy on Sept. 17, 2008, (Bankr. Case No. 17 S 37/08b). RENOVIERUNGSSERVICE BGG: Claims Registration Ends November 4 ------------------------------------------------------------ Creditors owed money by LLC Renovierungsservice BGG have until Nov. 4, 2008, to file written proofs of claim to the court- appointed estate administrator: Mag. Martin Honemann Oelzeltgasse 4 1030 Vienna Austria Tel: 713 61 92 Fax: 713 61 92 22 E-mail: martin.honemann@kosesnik-langer.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:20 a.m. on Nov. 18, 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. 16, 2008, (Bankr. Case No. 28 S 118/08v). TAXI K.L.L.: Claims Registration Period Ends November 4 ------------------------------------------------------- Creditors owed money by LLC Taxi K.L.L. have until Nov. 4, 2008, to file written proofs of claim to the court-appointed estate administrator: Mag. Stefan Jahns Gonzagagasse 15 1010 Vienna Austria Tel: 532 17 11 Fax: 532 17 11 11 E-mail: kanzlei@jahns.co.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on Nov. 18, 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. 17, 2008, (Bankr. Case No. 28 S 120/08p). ============= G E R M A N Y ============= ABIB VERWALTUNGS: Claims Registration Period Ends Oct. 27 --------------------------------------------------------- Creditors of ABIB Verwaltungs und Anlagenbau GmbH have until Oct. 27, 2008, to register their claims with court-appointed insolvency manager Dr. Eike Edo Happe. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Dec. 8, 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 Frankfurt (Main) Hall 2 Building F Klingerstrasse 20 60313 Frankfurt (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: Dr. Eike Edo Happe Stresemannallee 30 60596 Frankfurt am Main Germany Tel: 069/74 74 898-0 Fax: 069/74 74 898-10 Web site: www.rae-eckert.de The District Court of Frankfurt (Main) opened bankruptcy proceedings against ABIB Verwaltungs und Anlagenbau GmbH on July 29, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ABIB Verwaltungs und Anlagenbau GmbH Attn: Gottfried Mattar, Manager Darmstadter Landstr. 50 60594 Frankfurt am Main Germany BAUCLASSIC GMBH: Claims Registration Period Ends Oct. 26 -------------------------------------------------------- Creditors of BauClassic GmbH have until Oct. 26, 2008, to register their claims with court-appointed insolvency manager Daniel Bauch. 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 Landshut Meeting Hall 8/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: Daniel Bauch Steinmetzstrasse 10 85435 Erding Germany Tel: 08122/22960-83 Fax: 08122/22960-84 The District Court of Landshut opened bankruptcy proceedings against BauClassic GmbH on Sept. 15, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: BauClassic GmbH Ismaninger Str. 5 a 85452 Moosinning Germany BAU-STUDIO GMBH: Creditors' Meeting Slated for November 6 --------------------------------------------------------- The court-appointed insolvency manager for Bau-Studio GmbH, Haro Helms will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:15 a.m. on Nov. 6, 2008. The meeting of creditors and other interested parties will be held at: The District Court of Bremen Hall 115 Ostertorstr. 25-31 28195 Bremen Germany The Court will also verify the claims set out in the insolvency manager's report at 10:15 a.m. on Dec. 11, 2008, at the same venue. Creditors have until Oct. 28, 2008, to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Haro Helms Schillerstr. 10 28195 Bremen Germany Tel: 0421/337790 Fax: 0421/3377933 E-mail: helms@dr-stankewitz.de Website: www.dr-stankewitz.de The District Court of Bremen opened bankruptcy proceedings against Bau-Studio GmbH on Sept. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Bau-Studio GmbH Lilienthaler Heerstr. 63 28357 Bremen Germany CHILEHAUS HAMBURG: Claims Registration Period Ends October 27 ------------------------------------------------------------- Creditors of Chilehaus Hamburg GmbH have until Oct. 27, 2008, to register their claims with court-appointed insolvency manager Stefan Denkhaus. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 27, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of 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: Stefan Denkhaus Jungfernstieg 30 20354 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against Chilehaus Hamburg GmbH on Sept. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Chilehaus Hamburg GmbH Fischertwiete 2 20095 Hamburg Germany FRUEHTAU CREATIVE: Claims Registration Period Ends October 27 ------------------------------------------------------------- Creditors of Fruehtau Creative Communications GmbH have until Oct. 27, 2008, to register their claims with court-appointed insolvency manager Knut Thomas Hofheinz. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on Dec. 2, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hannover Hall 226 Second Upper Floor Service Bldg. Hamburger Allee 26 30161 Hannover Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Knut Thomas Hofheinz Am Markte 13 30159 Hannover Germany Tel: 0511 3577210 Fax: 0511 35772140 The District Court of Hannover opened bankruptcy proceedings against Fruehtau Creative Communications GmbH on Sept. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Fruehtau Creative Communications GmbH Schiffgraben 11 30159 Hannover Germany HEBA-BAU: Claims Registration Period Ends October 27 ---------------------------------------------------- Creditors of Heba-Bau GmbH have until Oct. 27, 2008, to register their claims with court-appointed insolvency manager Tobias Hoefer. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on Nov. 27, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Darmstadt Hall 4.312 Fourth Floor Building D Mathildenplatz 15 64283 Darmstadt Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Tobias Hoefer Soldnerstr. 2 68219 Mannheim Germany Tel: 0621-87708-0 Fax: 0621-8770820 The District Court of Darmstadt opened bankruptcy proceedings against Heba-Bau GmbH on Sept. 30, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Heba-Bau GmbH Edisonstrasse 2 68519 Viernheim Germany KABTRONIK GMBH: Claims Registration Period Ends October 27 ---------------------------------------------------------- Creditors of Kabtronik GmbH have until Oct. 27, 2008, to register their claims with court-appointed insolvency manager Stephan Haspel. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Nov. 27, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Landau in der Pfalz Hall 223 Marienring 13 76829 Landau in der Pfalz 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 Haspel Xylanderstr. 3 76829 Landau in der Pfalz Germany Tel: 06341-51020 Fax: 06341-510229 The District Court of Landau in der Pfalz opened bankruptcy proceedings against Kabtronik GmbH on Sept. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Kabtronik GmbH Attn: Borislav Borissov Josef-Probst-Str. 9 76726 Germersheim Germany LEAR CORP: S&P Cuts Corp. Credit to 'B' on Weak Sales & Cash Flow ----------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on Lear Corp., including the corporate credit rating, to 'B' from 'B+', reflecting the prospects for Lear's sales and cash flow to be weaker than S&P expected in 2009, resulting in credit measures that are inconsistent with the previous rating. For the current rating, S&P now expect adjusted debt to EBITDA to exceed 4.0x but be less than 5.0x. At the same time, S&P also lowered the issue- level rating on Lear's US$1 billion senior secured term loan facility (US$988 million outstanding) to 'BB-' from 'BB' and lowered the issue-level rating on Lear's senior unsecured notes to 'B-' from 'B'. The outlook is negative. "Falling auto demand in North America and Europe and ongoing adverse shifts in product mix toward smaller passenger cars in the U.S. are the main reasons for the downgrade," said Standard & Poor's credit analyst Lawrence Orlowski. "We now expect U.S. light-vehicle sales to be 13 million units in 2009, and light- vehicle sales in Europe are continuing to weaken. S&P believes the weak economy will extend well into 2009 and suppress purchases of big-ticket items such as autos, so S&P do not expect production for many of Lear's key SUV and full-size pickup truck platforms to rebound in the near term," he continued. Lear recently reduced its 2008 guidance for sales and core operating earnings by 7% and 20%, respectively. Lear has a highly leveraged financial risk profile, combined with a weak business risk position that is dominated by the intense competitive pressures of the global auto supply industry. Lear has a solid market position in the global auto seating supply sector (79% of revenues) and is a player in the electrical/electronics auto supply market. Although Lear has strong positions in the auto seating market and good growth prospects outside North America, continuing challenges come from customer concentration. Its two largest customers, Ford Motor Co. and General Motors Corp. (excluding the Saab, Volvo, Jaguar, and Land Rover units), represented about 42% of global sales in 2007. Moreover, the prices of raw materials such as steel, copper, and oil remain volatile, and unexpected price increases could reduce margins as well. S&P expects Lear to have sufficient liquidity to meet its cash obligations during the next year. Cash balances were US$624 million as of June 28, 2008, and there are no material debt maturities until 2012. The bulk of Lear's cash needs are in the U.S., where its free cash flow is weakest and the bulk of its debt resides. Still, Lear can move cash balances between certain countries via intercompany notes and tax-related strategies. The outlook is negative. S&P expects the operating environment for auto suppliers to remain difficult in 2009, and Lear's leverage and heavy dependence on the U.S. auto manufacturers make the company especially vulnerable to negative industry developments. For the current rating, S&P expects the company's adjusted debt to EBITDA to stay below 5.0x and funds from operations to debt to exceed 10%. To reach the upper end or higher of our expected debt-to-EBITDA measure, Lear's EBITDA would have to drop an estimated 40% from the level of the 12 months ended June 28, 2008, and S&P could lower the rating if such a scenario seemed likely. A revision in S&P's outlook to stable in the near term is unlikely because market conditions will likely continue to deteriorate, preventing an improvement in credit measures. PLANQLB GMBH: Claims Registration Period Ends October 27 -------------------------------------------------------- Creditors of PlanQLB GmbH have until Oct. 27, 2008, to register their claims with court-appointed insolvency manager Karina Schwarz. Creditors and other interested parties are encouraged to attend the meeting at 10:15 a.m. on Nov. 27, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Magdeburg Hall D Insolvency Department Liebknechtstrasse 65-91 39110 Magdeburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Karina Schwarz Klausenerstr. 24 39112 Magdeburg Germany Tel: 0391/6286260 Fax: 0391/6286266 E-mail: magdeburg@Rechtsanwaelte-Schwarz.de The District Court of Magdeburg opened bankruptcy proceedings against PlanQLB GmbH on Sept. 25, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: PlanQLB GmbH Halberstadter Strasse 59 06484 Quedlinburg Germany RETAIL STORES: Creditors' Meeting Slated for Oct. 27 ---------------------------------------------------- The court-appointed insolvency manager for RSC Retail Stores Company Verwaltungs GmbH, Dr. jur. A. Koehler will present his first report on the Company's insolvency proceedings at a creditors' meeting at 8:32 a.m. on Oct. 27, 2008. The meeting of creditors and other interested parties 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 at 8:34 a.m. on Dec. 8, 2008, at the same venue. Creditors have until Nov. 8, 2008, to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Dr. jur. A. Koehler Wilhelmstrasse 42 65582 Diez Germany Tel: 06432-64580 Fax: 06432-645820 E-mail: verwaltung@koehler-insolvenz.de The District Court of Montabaur opened bankruptcy proceedings against RSC Retail Stores Company Verwaltungs GmbH on Aug. 28, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: RSC Retail Stores Company Verwaltungs GmbH Attn: Heiner Schafer and Gernot Wiedekind, Managers Marktstrasse 20 65623 Hahnstatten Germany SIAM GESELLSCHAFT: Claims Registration Period Ends Oct. 24 ---------------------------------------------------------- Creditors of SIAM Gesellschaft fuer Sicherheitstechnik und Arbeitsmedizin GmbH have until Oct. 24, 2008, to register their claims with court-appointed insolvency manager Stephan Ruedlin. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Dec. 8, 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 Mannheim Hall 232 Second Floor Schloss 68149 Mannheim 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 Ruedlin Friedrichsplatz 15 68165 Mannheim Germany Tel: 0621/49098160 Web site: http://www.kuebler-gbr.de/ The District Court of Mannheim opened bankruptcy proceedings against SIAM Gesellschaft fuer Sicherheitstechnik und Arbeitsmedizin GmbH on Sept. 12, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: SIAM Gesellschaft fuer Sicherheitstechnik und Arbeitsmedizin GmbH Attn: Dr. Karl-Albrecht Reinecke, Manager Casterfeldstr. 93 68199 Mannheim Germany ============= I R E L A N D ============= LANDSOWNE MORTGAGE: S&P Puts Class B2 Notes BB+ Rating on WatchNeg ------------------------------------------------------------------ Standard & Poor's Ratings Services has raised and removed from CreditWatch with positive implications its credit rating on the class M1 notes issued by Lansdowne Mortgage Securities No. 1 PLC (LMS 1). At the same time, S&P placed on CreditWatch negative its ratings on the class B1 and B2 notes, while affirming the ratings on the other classes of notes in this deal. 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 performance of the transaction in the near term. The CreditWatch negative placements follow deterioration in the portfolio quality and the decline in house prices currently being experienced in Ireland. Despite experiencing only small losses (0.02%), the rise in 180+ day delinquencies is a cause for concern. As of the September 2008 investor report, delinquencies in this category rose to 12.56%. Properties in repossession are currently at 0.64%. De-leverage of the issuance has, however, had a positive effect for the class M1 notes, leading the notes to be able to sustain a higher rating at the 'AA+' level. S&P will conduct new credit and cash flow runs to resolve the CreditWatch placements, particularly factoring in any further portfolio deterioration and movements in house prices. The results, together with any effects on the ratings on any of the notes, will be released in due course. S&P will also conduct a credit and cash flow review of Lansdowne Mortgage Securities No. 2 PLC and release the results in due course. Lansdowne Mortgage Securities No. 1 PLC: -- EUR370 Million Mortgage-Backed Fixed And Floating-Rate Notes Rating Raised And Removed From CreditWatch Positive: Class To From ----- -- ---- M1 AA+ AA/Watch Pos Ratings Placed On CreditWatch Negative: Class To From ----- -- ---- B1 BBB/Watch Neg BBB B2 BB+/Watch Neg BB+ Ratings Affirmed: A2 AAA X AAA M2 A+ MAGNOLIA FINANCE: Fitch Junks Ratings on Two Classes of Notes ------------------------------------------------------------- Fitch Ratings has downgraded Magnolia Finance VI Plc Series 2007- 13, 2007-14, (Cargo III) notes as listed below. The transactions are commodities-linked credit obligations referencing 18 diverse commodities through a portfolio of 100 long and 100 short trigger swaps with a one-and-a-half-year tenor. -- EUR2.54 million Series 2007-13 C1.a notes due January 2009 to 'CCC' from 'A'; -- US$3.17 million Series 2007-14 C1.a notes due January 2009 to 'CCC' from 'A'. The downgrades follow negative price movements in some reference commodities since the closing of the transaction. In particular, several base metals have seen their prices decline. Firstly, the prices of nickel and zinc have fallen to approximately 36% and 43%, respectively, of its closing level. Nickel underlies 9 long trigger swaps with trigger levels starting at 46% to 38% of the closing price. Its current price is below those triggers. Zinc underlies 15 long trigger swaps with trigger levels between 50% and 36% of the closing price. Its current price is below eight of those triggers. Secondly, lead has dropped in value to approximately 58% of its closing level, increasing the risk of breaching further long triggers on this commodity. Finally, with only three months remaining until maturity and prices much nearer to the trigger levels across many reference commodities, the original protection against the 14 trigger breaches is insufficient for the previous ratings. At closing, the issuer entered into commodities-linked trigger swaps with the swap counterparty, Credit Suisse International (CSI, 'AA-'/Outlook Stable/'F1+'), based on the provisions of the 2005 ISDA commodity definitions. Each trigger swap references a specific percentage of the closing price level of a single commodity as specified in the documentation. The trigger swap portfolio comprises (i) 100 European-style trigger swaps which the issuer sold protection to CSI (the long portfolio) and (ii) 100 European-style trigger swaps which the issuer bought protection from CSI. Interest on the notes is derived from swap payments made by CSI under the agreement of the portfolio commodities swap. Investors are exposed to the risk of large negative price movements on the reference commodities. This risk has been analyzed under the Fitch Rating Criteria for Commodities-Linked Credit Obligations dated September 25, 2007. The ratings address the payment of timely interest and ultimate repayment of principal by final maturity, according to the transaction documentation. ========= I T A L Y ========= CIRENE FINANCE: S&P Retains BB-Rated Class E Notes on Watch Neg. ---------------------------------------------------------------- Standard & Poor's Ratings Services has kept its credit ratings on the notes issued by Cirene Finance S.r.l. on CreditWatch with negative implications as uncertainty remains regarding the transaction's Lehman-related swap. S&P placed the ratings on CreditWatch negative on Sept. 16 following the insolvency of Lehman Brothers Holdings Inc. and related entities. The transaction has been confidentially rated since it closed in 2006. The S&P made the ratings public at the request of the arranger. Cirene features a fixed-to-floating rate swap agreement with Lehman Brothers International (Europe), where Lehman Brothers Holdings Inc. acts as guarantor. The CreditWatch placements reflect the uncertainty surrounding the substitution of the swap counterparty following Lehman's insolvency, as well as the liquidation of about EUR9 million of collections invested over the current collection period in money market funds managed by Lehman Brothers Liquidity Funds PLC. Resolution of the CreditWatch negative actions will depend on the actions by the trustee to replace Lehman as the swap counterparty, as well as how Lehman Brothers Liquidity Funds will be able to liquidate its funds. As far as the actual collection performance is concerned, cumulative recoveries have been higher than those factored into S&P's closing cash flow model, at every rating scenario. The structure of the underlying portfolio has not changed significantly since closing. As it matures, the portfolio continues to be skewed towards relatively recent defaults. The distribution by borrower type of the residual open gross book value (GBV) is broadly in line with that S&P expected at closing. Finally, in terms of geographical concentration, the open GBV does not differ significantly from the closing portfolio. The open GBV as of the latest interest payment date was about EUR168 million. Since closing, EUR36.2 million (representing 58% of the total collections from the transfer date) has been collected. The remaining recoveries are related to partial collections. By using the average recovery rate recorded on fully closed positions (72.56%) to extrapolate the GBV connected to partial collections, the open GBV would be about EUR133 million. Cirene Finance S.r.l. -- EUR79.50 Million Mortgage-Backed Floating-Rate Notes And EUR21.93 Million Deferrable-Interest Notes Ratings Remain On CreditWatch Negative: Class Rating ----- ------ A AAA/Watch Neg B AA/Watch Neg C A/Watch Neg D BBB/Watch Neg E BB/Watch Neg Cirene is a transaction backed by a portfolio of secured and unsecured nonperforming loans originated by Banca Monte dei Paschi di Siena SpA. The outstanding portfolio largely comprises positions secured by first-ranking mortgages on residential and commercial/industrial properties. About 20% of the open gross book value represents unsecured claims connected to secured positions included in the portfolio. The servicer of the transaction is MPS Gestione Crediti Banca SpA. =================== K A Z A K H S T A N =================== DELTA OIL: Creditors Must File Claims by November 28 ---------------------------------------------------- LLP Delta Oil Consulting & Engineering has declared liquidation. Creditors have until Nov. 28, 2008, to submit written proofs of claims to: LLP Delta Oil Consulting & Engineering Mahambet Str. 114a-49 Atyrau Kazakhstan Tel: 8 701 530 42-02 JEZPROM LLP: Claims Deadline Slated for November 26 --------------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda has declared LLP Jezprom insolvent. Creditors have until Nov. 26, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Karaganda Jambyl Str. 9 Karaganda Kazakhstan KAS STROY MARKET: Claims Filing Period Ends November 26 ------------------------------------------------------- LLP Kas Stroy Market has declared liquidation. Creditors have until Nov. 26, 2008, to submit written proofs of claims to: LLP Kas Stroy Market Abai Str. 3-16 Atyrau Kazakhstan Tel: 8 (71222) 32-46-45 KAZ TEPLO: Creditors' Claims Due on November 26 ----------------------------------------------- LLP Kaz Teplo Energo Montage has declared liquidation. Creditors have until Nov. 26, 2008, to submit written proofs of claims to: LLP Kaz Teplo Energo Montage Micro District Orbita-1, 10-65 Karaganda Kazakhstan ROOFING PRODUCTIONS: Claims Registration Ends November 26 --------------------------------------------------------- LLP Roofing Productions Ltd. has declared liquidation. Creditors have until Nov. 26, 2008, to submit written proofs of claims to: LLP Roofing Productions Ltd. Micro District 15, 42-2 Aktau Mangistau Kazakhstan SEV KAZ: Creditors Must File Claims by November 28 -------------------------------------------------- LLP Sev Kaz Energo Service has declared liquidation. Creditors have until Nov. 28, 2008, to submit written proofs of claims to: LLP Sev Kaz Energo Service Zavodskaya Str. 43/1 Asa Jambyl Kazakhstan SPRINT AKTAU: Claims Deadline Slated for November 26 ---------------------------------------------------- LLP Sprint Aktau has declared liquidation. Creditors have until Nov. 26, 2008, to submit written proofs of claims to: LLP Sprint Aktau Room 116 Micro District 8, 39a Aktau Mangistau Kazakhstan Tel: 8 (7292) 47-03-04 =================== K Y R G Y Z S T A N =================== KYRGYZ SAMOTSVETY: Creditors Must File Claims by November 14 ------------------------------------------------------------ LLC Firm Kyrgyz Samotsvety has shut down. Creditors have until Nov. 14, 2008, to submit written proofs of claim to: LLC Firm Kyrgyz Samotsvety Baitik Baatyr Str. 126 Bishkek Kyrgyzstan ===================== N E T H E R L A N D S ===================== SIRENS BV: Fitch Cuts Notes Ratings to 'B' on Neg. Price Movements ------------------------------------------------------------------ Fitch Ratings has downgraded SIRENS B.V Series 2007-2, (Cargo II) notes as listed below. The transactions are commodities-linked credit obligations referencing 17 diverse commodities through a portfolio of 100 long and 100 short trigger swaps. -- US$70 million class A1.a due 2010 to 'CCC' from 'A-; -- AU$9 million class B1.a due 2012 to 'B' from 'AAA'; -- US$10 million class B1.b due 2012 to 'B' from 'AAA'; -- US$70 million class B1.c due 2012 to 'B' Outlook Negative from 'AA-'; -- EUR25 million class B1.d due 2012 to 'B' Outlook Negative from 'A+' (singe A plus) ; -- EUR6.8 million class B1.e due 2012 to 'B' Outlook Negative from 'A+' (singe A plus). The downgrades follow negative price movements in some reference commodities since the closing of the transaction. In particular, several base metals have seen their prices decline. Firstly, depending of each class, the price of nickel has fallen to a level between approximately 25%-29% of its closing level. Nickel underlies 15 long trigger swaps with trigger levels starting at 30% to 16% of the closing price. The current price of nickel is below two to six of those triggers. Secondly, zinc and lead have dropped in value to approximately 43% and 80%, respectively, increasing the risk of breaching further long triggers on those commodities. Finally, with two to three years remaining maturity and prices much nearer to the trigger levels across many reference commodities, the original protection for class A1 and class B1 against the 10 and 15 trigger breaches, respectively, is insufficient for the previous ratings. At closing, the issuer entered into commodities-linked trigger swaps with the swap counterparty, Credit Suisse International (CSI, 'AA-'/Outlook Stable/'F1+'), based on the provisions of the 2005 ISDA commodity definitions. Each trigger swap references a specific percentage of the closing price level of a single commodity as specified in the documentation. The trigger swap portfolio comprises (i) 100 European-style trigger swaps which the issuer sold protection to CSI (the long portfolio) and (ii) 100 European-style trigger swaps which the issuer bought protection from CSI (the short portfolio). Interest on the notes is derived from swap payments made by CSI under the agreement of the portfolio commodities swap. Investors are exposed to the risk of large negative price movements on the reference commodities. This risk has been analyzed under the Fitch Rating Criteria for Commodities-Linked Credit Obligations dated 25 September 2007. The ratings address the payment of timely interest and ultimate repayment of principal by final maturity, according to the transaction documentation. =========== R U S S I A =========== ENERGOLES LLC: Creditors Must File Claims by December 3 ------------------------------------------------------- Creditors of LLC Energoles (Forestry) have until Dec. 3, 2008, to submit proofs of claims to: I. Zhiganshin Insolvency Manager Office 124 Chapygina Str. 6P 197376 St. Petersburg Russia The Arbitration Court of St. Petersburg commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56–19047/2008. The Court is located at: The Arbitration Court of St. Petersburg Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia OKA-MET LLC: Creditors Must File Claims by December 3 ----------------------------------------------------- Creditors of LLC Oka-Met (Waste and Nonferrous Scrap Processing) (TIN 7727101237) have until Dec. 3, 2008, to submit proofs of claims to: A. Oksamitny Insolvency Manager Office 100 Building 2 Stolovuy Pereulok 121069 Moscow Russia The Arbitration Court of Moscow commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-2596/08-38-5B. The Court is located at: The Arbitration Court of Moscow Building 1 Novaya Basmannaya Str.13/2 107078 Moscow Russia The Debtor can be reached at: LLC Oka-Met Konstantinova Str. 16 129278 Moscow Russia RENAISSANCE CAPITAL: S&P Changes Rating Outlook to Negative ----------------------------------------------------------- Standard & Poor's Ratings Services has revised the outlook on its long-term counterparty rating on Russia-based Commercial Bank Renaissance Capital (CBRC) to negative from stable. At the same time, the 'B-' long-term and 'C' short-term counterparty credit ratings were affirmed. The Russia national scale rating was lowered to 'ruBBB-' from 'ruBBB'. "The outlook revision reflects our growing concerns about the impact on CBRC of the difficult operating environment in Russia, which is, in particular, placing pressure on banks' liquidity and asset quality," said S&P's credit analyst Elena Romanova. Given CBRC's short-term refinancing needs and focus on generically risky consumer finance, the bank is likely to become more vulnerable to the increasingly volatile climate and may become more reliant on group support. In addition, there is a possibility of a lower level of group support due to the increasing level of macroeconomic stress. Such funding and operational support, though not factored into the rating, has been a crucial factor in the bank's business sustainability in recent years. The ratings reflect the bank's weak funding base, high reliance on funding support from shareholders, weak internal capital- generating capacity, and heavy reliance on shareholder capital injections. They take into account CBRC's short track record of generating positive profits, increasing credit risks, and much tighter funding possibilities. Positive rating factors include financial and operational support from shareholders, progress in building market share, and adequate capitalization. The ratings reflect CBRC's stand-alone creditworthiness and do not contain additional notches for shareholder support. CBRC is ultimately indirectly controlled by the shareholders of Renaissance Holding Management Ltd. (not rated). The negative outlook reflects the potential negative impact of the currently difficult operating environment and macroeconomic factors on CBRC's financial performance, in particular, weaker asset quality and profitability. RUSSIAN UNIVERSAL: Fitch Affirms Individual Rating at 'D/E' ----------------------------------------------------------- Fitch Ratings has revised the Outlook of Russian Universal Bank to Negative from Stable and affirmed its ratings. The Negative Outlook reflects Fitch's concerns over the weakened liquidity position of the bank. Liquid assets have contracted to a small 11% of total assets, based on management accounts of 14 October, from 44% at end-2007. While these still provide relatively healthy coverage (22%) of customer funding in aggregate, Fitch notes that the latter is highly dependent on one client, which accounts for 47% of the total; almost half of this customer's funds are on current account. Fitch has received assurances from the bank's management that the balances of this customer should not contract significantly in the next few months; however, the tighter liquidity position and greater vulnerability to customer outflows warrant a Negative Outlook, in the agency's view. Overall, customer accounts (almost all from corporate clients) are the main source of funds for the bank (98% of total liabilities), are highly concentrated and have been volatile in amount. The ratings also reflect the very small size of the bank and its limited franchise, as well as risks associated with high concentrations in the loan book. However, they also consider Rusuniversal's sound profitability, good asset quality, moderate risk appetite outside the core defense sector to which the bank lends and strong capitalization. The ratings could be downgraded if the liquidity position comes under further pressure. The Outlook could revert to Stable, however, if the bank manages to strengthen its liquidity position and funding profile. Rusuniversal is a small-sized Russian bank and has been operating since 1996 as a captive bank, primarily serving defense sector corporates. The bank is owned by the bank's top management and managers of some of its corporate customers. Rating actions: -- Long-term IDR: affirmed at 'B-'; Outlook revised to Negative from Stable -- Short-term IDR: affirmed at 'B' -- Individual: affirmed at 'D/E' -- Support: affirmed at '5' -- National Long-term: affirmed at 'BB-(rus)'; Outlook revised to Negative from Stable -- Support Rating Floor: affirmed at 'No Floor'. SITRONICS JSC: Moody's Shifts Outlook on B3 CFR to Negative ----------------------------------------------------------- Moody's Investors Service changed the outlook on the B3 corporate family rating of Sitronics JSC, a 64.4% owned subsidiary of Sistema JSFC (Ba3 on Review for Downgrade) to negative from stable. The change in the outlook has been prompted by placement of its parent Sistema's ratings on review for downgrade. The action reflects Moody's assessment that Sitronics' standalone business profile is further weakening in the face of challenging economic conditions, coupled with the company's exposure to the highly competitive and capital-intensive technology sector. In addition to the potential refinancing and liquidity challenges in the short to medium term, Moody's expects the company's cash flow to be impacted by higher financing costs. Moody's also notes that the contemplated reduction in capital investment in the coming months may potentially undermine the company's business model relying on technological advancement. The change in outlook also reflects some concern over the weakening broader operating environment of some of Sistema's - its lead shareholder- operations where Moody's is undertaking a review given that a degree of support and interdependence exists between Sistema and its various holdings and operations such as Sitronics. The B3 rating incorporates Moody's expectation that Sistema will continue to provide financial, operational and managerial support to Sitronics and take actions to reengineer its business model and capital structure for better competitive fit in the technological environment. Downgrade of Sitronics's ratings could occur if (1) Business and liquidity profile were to continue to weaken and/or (2) Moody's assessment of Sistema's willingness and capacity to provide support were to change. Headquartered in Moscow, Sitronics JSC, is a diversified group of vertically integrated technology companies with operations in Russia and the CIS region, and a presence in Eastern Europe, the Middle East and Africa (EEMEA). The company reported US$1.620 billion in revenue and US$101.1 million in negative operating income before depreciation and amortization (OIBDA) on a consolidated basis in 2007 (US$70.8 negative OIBDA adjusted for management stock options), and US$926.8 million in revenue, US$46 million in OIBDA and US$0.1million in operating cash flow in 1H 2008. Sitronics comprises three core business divisions, namely Telecommunications Solutions, IT Solutions and Microelectronic Solutions. STEEL-INVEST LLC: Moscow Bankruptcy Hearing Set December 2 ---------------------------------------------------------- The Arbitration Court of Moscow will convene at 10:00 a.m. on Dec. 2, 2008, to hear bankruptcy supervision procedure on LLC Steel-Invest. The case is docketed under Case No. A40–30792/ 08–36-82B . The Temporary Insolvency Manager is: Yu. Rudenko Ilyinka Str. 5/2 109012 Moscow Russia The Court is located at: The Arbitration Court of Moscow Building 1 Novaya Basmannaya Str.13/2 107078 Moscow Russia The Debtor can be reached at: LLC Steel-Invest Building 1/58 Partiynuy Pereulok 1 115093 Moscow Russia UNIKOM LLC: Primorskiy Bankruptcy Hearing Set December 3 -------------------------------------------------------- The Arbitration Court of Primorskiy will convene on Dec. 3, 2008 to hear external management bankruptcy procedure on LLC Unikom. The case is docketed under Case No. A51-15759/ 2006 11-350/16. The External Insolvency Manager is: V.Skovyra Apt. 77 Nerchinskaya Str. 46 690106 Vladivostok Russia The Debtor can be reached at: LLC Unikom Prospect 50 let Oktyabrya 298 692443 Dalnegorsk Russia VOLGOGRAD-NEFTE-GAZ-STROY: Creditors Must File Claims by Dec. 3 --------------------------------------------------------------- Creditors of LLC Volgograd-Nefte-Gaz-Stroy Car Fleet have until Dec. 3, 2008, to submit proofs of claims to: Ye. Slushkin Insolvency Manager Post User Box 1034 400105 Volgograd Russia The Arbitration Court of Volgogradskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A12-4680/08-S64 . The Debtor can be reached at: LLC Volgograd-Nefte-Gaz-Stroy Car Fleet Proezd Neftyanikov 2 400075 Volgograd Russia ========= S P A I N ========= FTPYME PASTOR 3: S&P Puts BB-Rated Class C Notes on Negative Watch ------------------------------------------------------------------ Standard & Poor's Ratings Services has placed on CreditWatch with negative implications its credit ratings on the junior notes issued by EdT FTPYME PASTOR 3, FONDO DE TITULIZACION DE ACTIVOS; GC FTPYME PASTOR 4 Fondo de Titulizacion de Activos, and TDA, Empresas Pastor 5, Fondo de Titulizacion de Activos. All the other ratings in these transactions are unaffected. The CreditWatch placements follow an initial analysis of the performance of these deals. Current collateral performance has highlighted factors that have increased the possibility of negative rating actions for the junior classes. The deals are backed by portfolios of loans to Spanish small-to- midsize enterprises (SMEs) originated by Banco Pastor, S.A. Banca Pastor is also bank account provider and swap counterparty for these transactions. The CreditWatch placements are not, however, related to the recent downgrade of Banco Pastor on Oct. 3, 2008. S&P will, though, monitor the impact of Banco Pastor's downgrade on these notes. EdT FTPYME PASTOR 3 closed in December 2005. At the end of August 2008, loans in arrears greater than 90 days were 5.99% of the outstanding balance of the pool. The current credit support provided by the cash reserve to the junior class C notes is 8.93% of the outstanding balance of the notes. The transaction has accumulated only 0.14% of defaults over the original balance of the notes and it was able to generate enough cash flow to provide note amortization for these amounts by applying an artificial write-off mechanism. However, since the beginning of this year S&P notes a steeper increase of arrears and it believes that a continuation of this growth rate and a sufficient rollover into default may cause credit support levels to be insufficient to maintain current ratings. Beyond that, the pool shows other concerning factors, such as the high concentration of top 10 borrowers that count for 17.11% of the total pool and the significant weight of loans granted to the real estate sector, amounting to 48.35% of the pool. GC FTPYME PASTOR 4 closed in November 2006. By the end of September 2008, loans in arrears greater than 90 days were 4.98% (of which 1.63% are loans in arrears for 90 days exactly) of the outstanding pool balance. The lower classes receive credit support from the cash reserve amounting to 3.59% of the outstanding note balance. If a relevant amount of the delinquent loans roll over into default, the credit support levels may be insufficient to maintain current ratings. Indeed, recently delinquent loans over 90 days increased substantially and S&P is concerned that the continuation of this trend into defaults could put pressure on the structure. TDA, Empresas Pastor 5 closed in December 2007. In August 2008, loans in arrears greater than 90 days were 1.52% of the outstanding pool balance and the cash reserve's credit support is 4.04% of the outstanding note balance. S&P notes that the delinquency rate at this early stage is higher than the level registered by similar funds after the same number of periods since their closing dates. So, despite the low seasoning of the transaction it believes that under the current scenario the rating on the junior class C notes could be pressurized by the high delinquency rate. S&P will conduct a deeper analysis of these trends and the general impact of the current Spanish economic environment, and will update and run its credit and cash flow analyses. This will allow us to ascertain whether credit enhancement levels for the classes on CreditWatch are sufficient to support the ratings at any new modeled default level. Ratings Placed On CreditWatch Negative: EdT FTPYME PASTOR 3, FONDO DE TITULIZACION DE ACTIVOS -- EUR520 Million Floating-Rate Notes Class To From ----- -- ---- C BB/Watch Neg BB GC FTPYME PASTOR 4 Fondo de Titulizacion de Activos -- EUR630 Million Asset-Backed Floating-Rate Notes Class To From ---------------------------------- C A/Watch Neg A D BBB/Watch Neg BBB E BB/Watch Neg BB TDA, Empresas Pastor 5, Fondo de Titulizacion de Activos -- EUR550 Million Asset-Backed Floating-Rate Notes And EUR18.7 Million Floating-Rate Notes Class To From ----- -- ---- C BB/Watch Neg BB * SPAIN: Moody's Says Addtn'l Gov't Measures Won't Affect Ratings ----------------------------------------------------------------- Moody's Investors Service commented on the new additional set of measures to support the Spanish financial system announced by the Spanish Government this week, in accordance with the coordinated Eurozone plan communicated on October 12. This new agreement follows Spain's announcement last week of the creation of a EUR30 billion - EUR50 billion emergency fund to provide liquidity to the financial system and the increase to EUR100,000 of the bank deposit guarantee to be provided by the Deposit Guarantee Fund (Fondo de Garantia de Depositos). Moody's understands that the new measures detailed in the Royal Decree Law 7/2008 October 13 comprise these elements: -- The approval of up to EUR100 billion worth of state guarantees for new financing made since October 14, 2008, by credit entities based in Spain. The Royal Decree specifies that the funding instruments that will be covered are commercial paper and bonds traded in the official secondary markets in Spain, but also mentions the possibility of extending the guarantee to other instruments such as interbank deposits. The maximum maturity of the above-mentioned instruments is limited to five years and the granting of state guarantees will be finalized on December 31, 2009. -- The authorization, on an exceptional basis and until December 31, 2009, for the Ministry of Economy and Finance to acquire instruments issued by credit institutions based in Spain in order to strengthen these institutions' equity. The instruments mentioned by the Decree Law include preferred shares and participation certificates. On the same day of the publication of the above-mentioned Royal Decree Law, the Spanish government also published a Royal-Decree Law 6/2008 October 10, which sheds more light on the functioning of the EUR30 billion - EUR50 billion emergency fund announced last week. Additionally, this Royal Decree Law states that the "healthy assets" bought by the emergency fund will be at market prices, and defines as "healthy assets" those financial instruments that are issued by credit entities and securitization funds and are backed by loans granted to individuals, corporates and non-financial entities. In its introduction, the Royal Decree Law specifies that assets acquired by the fund should be domestic and that the fund will favor the acquisition of assets backed by loans granted after October 7, 2008, in order to ensure lending activity to individuals and corporates. "In line with Moody's previous commentary issued on October 9, 2008, the rating agency views these proposals as positive in the current environment and believes they will help to restore confidence in the financial system. However, Moody's also confirms that it does not anticipate wholesale rating changes for rated banks as these already benefit from external support to varying degrees," explains Maria Cabanyes, Senior Vice President in Moody's Financial Institutions Group. In this context, rating actions (positive or negative) will continue to be influenced by the underlying credit and franchise fundamentals in line with Moody's established bank rating methodology, and will anticipate franchise strength following the scaling-back of these support programs once the financial crisis abates. Moreover, Moody's notes that, although the proposed government measures should help to ease the pressure on current liquidity constrains, Spanish banks are also experiencing a very rapid deterioration in asset quality driven (i) by their exposure to the real estate and construction sectors, which are undergoing a more pronounced and rapid correction than initially anticipated; and (ii) by an increasing decline in households' debt-servicing capacity as a result of both rising interest rates, growing unemployment, in some instances, aggressive growth strategies. Although Spanish banks display a relatively high risk-absorption capacity as a result of excess provisioning, Moody's notes that excess coverage is nevertheless rapidly declining and the fundamental credit trends in the system remain negative -- and these factors underpin the likelihood of further downward rating adjustments. The exception will be bank obligations for which a clear substitution of risk will be made by the government for that of the bank, as in the case of explicit guarantees. In such cases, Moody's is anticipated to de-link the risk assessment from the bank and apply the appropriate government rating to the specific obligations, upon detailed review of the guarantee terms. Moody's Perspective Last week, Moody's published a Special Comment, entitled "Assessing the Rating Implications for Banks of the Current Market Turmoil and Governmental Interventions to Support Their Banking Systems", which explains how Moody's manages bank ratings following the provision of governmental support. Banking System Outlook The outlook for the Spanish banking system as a whole is negative, reflecting Moody's expectations of the fundamental credit conditions in the Spanish banking system over the next 12 to 18 months. =========== S W E D E N =========== FORD MOTOR: John Bond & Jorma Ollila Leave Board Member Posts ------------------------------------------------------------- Matthew Dolan at The Wall Street Journal reports that Sir John R. H. Bond and Jorma Ollila resigned as Ford Motor Co. board members on Friday. Messrs. Bond and Ollila have significant responsibilities within their own companies in Europe and each has recently added new responsibilities in advising governmental entities during these difficult economic times. Messrs. Bond and Ollila told the Board of Directors that they couldn't devote the additional time and international travel that would be required of them as the company responds to the unprecedented external environment and rapidly changing auto industry. In addition to his board duties, Mr. Bond served as a member of the Finance Committee of the Ford Motor board and served as a consultant and senior advisor to the Executive Chairman, William Clay Ford, Jr. Mr. Bond's formal paid consultancy arrangement with the company also terminates on Oct. 17, 2008, although Mr. Bond may continue to act as an advisor to Mr. Ford on an informal, unpaid basis. Mr. Ollila served as a member of the Audit Committee and the Nominating and Governance Committee of the board. According to WSJ, Messrs. Bond and Ollila won't be immediately replaced and the board will now have 11 members. The resignations had nothing to do with any disagreement over the management or direction of the the company, and were not related to the Don Leclair's retirement as chief financial officer, WSJ relates, citing a Ford Motor spokesperson Mark Truby. The report quoted Mr. Truby as saying, "Ford's board remains very strong, independent and experienced. Our board members are fully engaged in directing the company at this important time." About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin-American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter on Oct. 10, 2008, Fitch Ratings downgraded the Issuer Default Rating of Ford Motor Company and Ford Motor Credit Company by one notch to 'CCC' from 'B-'. As reported in the Trouble Company Reporter on Oct. 17, 2008, Standard & Poor's Ratings Services placed the CCC ratings on nine Ford Motor Co.-related transactions on CreditWatch with negative implications. ===================== S W I T Z E R L A N D ===================== GIPSKONZEPT LLC: Creditors Must File Proofs of Claim by Oct. 31 --------------------------------------------------------------- Creditors owed money by LLC Gipskonzept are requested to file their proofs of claim by Oct. 31, 2008, to: Rosenfeldweg 32 9000 St. Gallen Switzerland The company is currently undergoing liquidation in St. Gallen. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Sept. 3, 2008. GECKO HOLDING: Deadline to File Proofs of Claim Set Nov. 1 ---------------------------------------------------------- Creditors owed money by LLC Gecko Holding are requested to file their proofs of claim by Nov. 1, 2008, to: JSC Grivo Bahnhofstrasse 94 8001 Zurich Switzerland The company is currently undergoing liquidation in Zurich. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Sept. 3, 2008. GENERAL MOTORS: Starts Looking for Hummer Buyer ----------------------------------------------- John D. Stoll and Jeff Bennett at The Wall Street Journal report that General Motors Corp. has started formal talks with potential buyers for its Hummer sport-utility-vehicle division. GM has begun sending out a sale prospectus for Hummer, WSJ says, citing a Hummer spokesperson. According to the report, Hummer's CEO Jim Taylor will lead the negotiations with interested parties. WSJ relates that the Hummer sale would bring some cash to GM, which is losing money, partly due to its continual restructuring effort in North America. Analysts say that GM could run short of cash within 12 months. GM is considering acquiring Chrysler. The report states that the Hummer and Chrysler deals are part of an initiative for GM to avoid a potential liquidity crunch in 2009. According to WSJ, GM started selling Hummer in June, when GM's board of directors launched a strategic review of the brand as demend for SUVs collapsed. WSJ relates that Hummer sales dropped as high gasoline prices and a rocky U.S. economy pressured consumers. The report says that GM, at first, said that it was open to some options for Hummer, including an overhaul of its line of models. In recent months, some Hummer dealers had to stop operations due to a 47% drop in the brand's sales in 2007, the report states. Edmunds.com says that dealers sold fewer than 10 Hummers per month and offered US$9,251 in sales incentives per vehicle sold. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM Europe is based in Zurich, Switzerland, while General Motors Latin America, Africa and Middle East is headquartered in Miramar, Florida. At June 30, 2008, the company's balance sheet showed total assets of US$136.0 billion, total liabilities of US$191.6 billion, and total stockholders' deficit of US$56.9 billion. For the quarter ended June 30, 2008, the company reported a net loss of US$15.4 billion over net sales and revenue of US$38.1 billion, compared to a net income of US$891.0 million over net sales and revenue of US$46.6 billion for the same period last year. GLASAG JSC: Creditors Have Until Nov. 1 to File Claims ------------------------------------------------------ Creditors owed money by JSC Glasag are requested to file their proofs of claim by Nov. 1, 2008, to: Freiburgstrasse 49 2503 Biel/Bienne Switzerland The company is currently undergoing liquidation in Biel/Bienne. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Aug. 11, 2008. HANS FREI: Proofs of Claim Filing Deadline is Nov. 1 ---------------------------------------------------- Creditors owed money by JSC Hans Frei, Holzhandel are requested to file their proofs of claim by Nov. 1, 2008, to: Stockenmattstrasse 52 2552 Orpund Switzerland The company is currently undergoing liquidation in Orpund. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Sept. 4, 2008. HBS-KLIMATECHNIK JSC: Creditors' Proofs of Claim Due by Oct. 31 --------------------------------------------------------------- Creditors owed money by JSC HBS-Klimatechnik are requested to file their proofs of claim by Oct. 31, 2008, to: JSC Trevisca Zugerstrasse 74 6340 Baar Switzerland The company is currently undergoing liquidation in Baar. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Nov. 13, 2007. PLANALT CONSULTING: Nov. 1 Set as Deadline to File Claims --------------------------------------------------------- Creditors owed money by LLC Planalt Consulting are requested to file their proofs of claim by Nov. 1, 2008, to: Christian Alt Beatengasse 5 4123 Allschwil Switzerland The company is currently undergoing liquidation in Allschwil. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on July 24, 2008. UBS: In Talks With Former Executives Over Compensation Payment -------------------------------------------------------------- UBS AG is in talks with former executives about paying back some compensation after the Swiss government stepped in to assume US$600 billion in toxic assets from the bank, Katharina Bart at Dow Jones reports, citing a spokesman for the bank. The statement comes amid criticism over big salaries for bankers. The talks, according to the spokesman, were mainly "morally and ethically based," although he refused to reveal who the bank is talking with, the report says. UBS, the report relates, pledged to trim management compensation as part of the Swiss government intervention. However no specific limits were set, the report notes. UBS spokesman Christoph Meier disclosed the bank's new chairman Peter Kurer didn't earn a bonus in 2007 and will not this year either in addition to his two million Swiss francs base salary, the report states. Meanwhile, the interim finance minister late Friday said she was "unsettled" to hear UBS isn't ruling out paying double-digit million bonuses, the report adds. As reported in the TCR-Europe on Oct. 17, 2008, the Swiss National Bank and UBS unveiled a comprehensive solution to materially de- risk and reduce UBS' balance sheet. Up to US$60 Billion in Assets to be Transferred to New entity, Fully Owned and Controlled by SNB Based on an agreement with the SNB, UBS will transfer up to US$60 billion of assets to a newly created fund entity. UBS will capitalize the fund with equity of up to US$6 billion. The SNB will finance the fund with a loan of up to US$54 billion, secured on the assets of the fund. At the time it grants the loan, the SNB will take over control and ownership of the entity by purchasing the equity for a nominal price of US$1. The loan will be non-recourse to UBS, assuming no change of control of UBS and will be priced at LIBOR plus 250 basis points. It will mature in eight years, but the maturity may be extended to 10 or 12 years. The US$6 billion equity will absorb any potential realized losses up to this amount. The purpose of the fund is to ensure an orderly financing and liquidation of securities that are currently illiquid as well as other assets from UBS' balance sheet over the long-term. The assets transferred into the fund include around US$31 billion (as per valuation at September 30, 2008) of primarily cash securities, previously disclosed in these categories: * US sub-prime * US Alt-A * US prime * US commercial real estate and mortgage-backed securities * US student loan auction rate certificates and other securities backed by student loans * US reference-linked note program (RLN) (1) At completion of the transaction, UBS' net exposure in these risk categories will be reduced to nearly zero (compared to US$44.2 billion on June 30, 2008), with residual long positions held by UBS in these asset classes hedged through existing short positions, including credit protection embedded in the RLN programs. UBS will also transfer additional, mainly non-US debt instruments with a total net value of US$18 billion to the fund -- a wide range of securities backed by a variety of asset classes. The inclusion of these positions follows UBS' decision to downsize its securitization business and provides a better diversification of the fund's portfolio. The transfer of the US$49 billion of assets will take place over the coming months, during fourth quarter 2008 or first quarter 2009, but will be priced at valuations as of September 30, 2008. These prices will be verified by independent third parties and potential differences will be recorded in the bank's income statement. UBS will have the right to transfer up to an additional US$9 billion of assets into the fund at a later stage. These include up to US$5 billion of student loan auction rate securities the bank may buy back from clients as part of the recent settlements and up to US$3.5 billion of positions which may become unhedged in the event of commutation of the credit protection contracts with one or more monoline insurers. UBS will act as the investment manager of the fund, overseen by a board controlled by the SNB. The oversight board will approve specified matters including certain major transactions and changes in investment guidelines. It will also be empowered to change the investment manager. As part of this transaction, UBS has been granted the option to buy back the equity of the entity, once the loan is fully repaid, by paying the SNB US$1 billion plus 50% of the amount by which the equity value at the time of exercise exceeds that amount. Any remaining equity up to US$1 billion will go to the SNB and UBS will participate in 50% of the equity value exceeding US$1 billion. The option will be carried on UBS' balance sheet at its fair value. If -- over the life of the transaction -- the fund equity declines in value, the SNB will be able to participate in some manner in the appreciation of the UBS share price. The arrangement will be based on no more than 100 million UBS shares and will be further defined early next year. The transaction will result in a significant reduction in UBS' risk-weighted assets and its balance sheet total. The impact of the transaction and related capital measures will be shown in the fourth quarter results separately from the operating performance. On a preliminary basis, UBS estimates that the transaction will result in a charge against earnings of approximately CHF4 billion. These impacts would produce a year-end Tier 1 ratio of approximately 11.5%, before any other fourth quarter effects. UBS to Raise CHF6 Billion of New Capital to Fund Entity UBS will raise CHF6 billion of new capital in the form of mandatory convertible notes (MCN). This will allow the bank to retain a strong Tier 1 capital ratio, even after providing the equity to the newly established entity. The MCN has been fully placed with the Swiss Confederation. The Swiss Confederation reserves the right to reduce part or all of its investment by transferring the MCN to third party investors. The MCN issue is subject to approval by UBS shareholders who will vote on the creation of the required conditional capital underlying the MCN at an extraordinary general meeting (EGM) to be held in late November 2008. The MCN will count as Tier 1 capital for BIS capital adequacy purposes following EGM approval. Issuance of the MCN is expected to take place five business days after the EGM. The MCN will pay a coupon of 12.5% until conversion into UBS registered shares, which must take place no later than 30 months after issuance. The MCN will have a minimum conversion price corresponding to the reference price and a maximum conversion price set at 117% of the reference price. The reference price of the MCN will be determined as the lower of: * the volume-weighted average price (VWAP) of UBS shares on SWX Europe on the trading day preceding this announcement (CHF20.24 on 15 October 2008), and * the average of the daily VWAP on each of the three trading days ending on the day before the EGM. However, in no case will the reference price be less than CHF18.21, or 90% of the VWAP of October 15, 2008. Upon conversion of the MCN, the Swiss Confederation will hold approximately 9.3% of UBS's share capital, on the basis of currently outstanding shares and assuming conversion of the mandatory convertible notes issued in March 2008. About UBS AG Based in Zurich, Switzerland, UBS AG -- http://www.ubs.com/-- is a global provider of financial services for wealthy clients. UBS's financial businesses are organized on a worldwide basis into three Business Groups and the Corporate Center. Global Wealth Management & Business Banking consists of three segments: Wealth Management International & Switzerland, Wealth Management US and Business Banking Switzerland. The Business Groups Investment Bank and Global Asset Management constitute one segment each. The Industrial Holdings segment holds all industrial operations controlled by the Group. Global Asset Management provides investment products and services to institutional investors and wholesale intermediaries around the globe. The Investment Bank operates globally as a client-driven investment banking and securities firm. The Industrial Holdings segment comprises the non-financial businesses of UBS, including the private equity business, which primarily invests UBS and third-party funds in unlisted companies. * * * As reported in the Troubled Company Reporter-Europe on July 8, 2008, Moody's Investors Service downgraded to B- from B the financial strength rating (BFSR) of UBS AG. The rating outlook is stable. For second quarter of 2008, UBS reported a Group net loss attributable to shareholders of CHF358 million. As reported in the Troubled Company Reporter-Europe on Oct. 6, 2008, UBS said it will reposition its Investment Bank following a detailed review of the strategy by the Chairman and CEO of the Investment Bank, Jerker Johansson, members of the Group Executive Committee and the UBS Board of Directors. According to UBS, the Investment Bank will re-prioritize its business portfolio to preserve its core strengths and client franchises across Equities, IBD and FICC, while downsizing or exiting certain business activities. The Investment Bank will reduce net headcount by an additional 2,000, bringing staffing levels to approximately 17,000 by year-end, a reduction of around 6,000 since the peak in third quarter 2007. Reductions will be predominantly targeted to businesses being exited or downsized in order to protect and sustain core client franchises. ============= U K R A I N E ============= AZOVSTAL IRON: S&P Puts B+ Corporate Credit Rating on Watch Neg. ---------------------------------------------------------------- Standard & Poor's Ratings Services has placed its 'B+' long-term corporate credit rating on Ukrainian steel producer JSC Azovstal Iron and Steel Works on CreditWatch with negative implications, following the similar action on Ukraine (foreign currency B+/Watch Neg/B, local currency BB-/Watch Neg/B, Ukraine national scale uaAA/Watch Neg/--). S&P also placed the 'B' long-term rating on the company's senior unsecured debt on CreditWatch negative. The recovery rating is unchanged at '5', indicating S&P's expectation of modest (10%-30%) recovery for senior noteholders in the event of a payment default. "The CreditWatch placement reflects our concerns over the impact that the deteriorating economic situation in Ukraine and difficulties in the country's financial sector may have on Azovstal's credit quality, and notably on its liquidity and ability to refinance debt" said S&P's credit analyst Andrey Nikolaev. Azovstal's already-weak liquidity, which reflects that of parent company Metinvest B.V., may further deteriorate as the company's access to financing weakens. Although the share of domestic sales in Azovstal's revenue is less than 30%, the company is exposed to Ukraine's country risks, because it depends on local railways, ports, and electricity grids, and to some extent, Ukraine's banking system. S&P is also concerned about the rapidly deteriorating conditions in the steel market, which have already led to a decrease in the steel output of several Ukrainian producers and have cut demand in the domestic market and in some of the key export markets, for example, the Middle East. The ratings continue to reflect Azovstal's stand-alone credit quality as well expected ongoing and extraordinary support from its financially stronger parent company Metinvest B.V., which controls 97% of Azovstal's shares. The rating is also constrained by the company's position as a commodity player in a cyclical industry and its aged asset base that requires large capital expenditures. These risks are tempered by Azovstal's high share of exports (more than 70% of sales), access to low-cost resources in Ukraine, and vertical integration in iron ore, coke, and scrap at the parent level. S&P will resolve the CreditWatch listing following the resolution of that on Ukraine -- likely in the next several weeks. S&P will need to analyze to what extent the deteriorating economic situation in Ukraine and financial-sector difficulties in Ukraine and globally will affect Azovstal's credit quality, which is mostly export oriented, but depends on the country's infrastructure and to some extent on its financial system, as well as the willingness of international lenders vis-a-vis Ukrainian borrowers. Finally, S&P will also need to review the developments in Azovstal's liquidity position. "We believe that the rating on Azovstal is unlikely to end up higher than the eventual foreign currency sovereign rating," said Mr. Nikolaev. DTEK HOLDINGS: Fitch Puts 'B+' LT Local Currency IDR; Outlook Neg. ------------------------------------------------------------------ Fitch Ratings has revised the Outlook on DTEK Holdings Limited's Long-term foreign currency Issuer Default rating of 'B+' to Negative from Positive. This rating is now constrained by Ukraine's Negative sovereign outlook. Fitch has also assigned DTEK a Long-term local currency IDR of 'B+' with a Positive Outlook. DTEK's foreign currency Short-term IDR is affirmed at 'B'. The company's National Long-term rating is affirmed at 'AA-(ukr)' on a Positive Outlook, and the National Senior Unsecured rating for the company's UAH500m bond due 2011 is affirmed at 'AA-(ukr)'. The Negative Outlook for DTEK's Long-term foreign currency IDR follows the sovereign downgrade of Ukraine's Long-term foreign currency IDR to 'B+' from 'BB-', on concerns that the risk of a financial crisis in Ukraine involving a substantial depreciation of the currency is significant and rising. Ukraine's Outlook remains Negative. DTEK's Long-term foreign currency IDR Negative Outlook reflects its significant exposure to exchange rate risk, as the majority of its debt is denominated in US$, while the company has marginal foreign currency revenue. The company does not have a currency hedging program although it has stated that it has sufficient foreign currency in off-shore accounts to repay a US$100 million loan facility due next week. The company's next significant USD- denominated maturity is in June 2009. In the intervening months current financial market volatility in the Ukraine could subside, especially if an IMF support program, currently being negotiated, is successful in supporting the hryvnia. Fitch has assigned a Long-term local currency IDR of 'B+' with a Positive Outlook to reflect the strength of the company's business profile within the context of the Ukrainian economy and its ability to meet local currency obligations. As a power generator, DTEK supplies an essentially commodity and is the best performing power company in Ukraine. It is also fully vertically integrated and supplies its power plants from the company's own coal mines. GISKON-TRADE: Court Names A. Finko as Insolvency Manager -------------------------------------------------------- The Economic Court of Donetsk appointed A. Finko as Insolvency Manager for Industrial Enterprise Giskon-Trade (code EDRPOU 34423866). He can be reached at: A. Finko Ovrazhnaya Str. 29 Donetsk Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 9, 2008. The case is docketed as 42/106B. The Court is located at: The Economic Court of Donetsk Artema Str. 157 83048 Donetsk Ukraine The Debtor can be reached at: Industrial Enterprise Giskon-Trade Leninsky Avenue 4A 83000 Donetsk Ukraine INDUSTRIAL-BUILDING: Creditors Must File Claims by October 24 ------------------------------------------------------------- Creditors of OJSC Industrial-Building Company (code EDRPOU 32828173) have until Oct. 24, 2008, to submit proofs of claim to: Sergey Shkuro Liquidator P.O. Box 190 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on March 28, 2008. The case is docketed as 43/267. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: OJSC Industrial-Building Company Perspektivnaya Str. 9/11 Kiev Ukraine INTERPIPE LTD: S&P Places B+ Corp. Credit Rating on Negative Watch ------------------------------------------------------------------ Standard & Poor's Ratings Services has placed its 'B+' long-term corporate credit rating on Ukrainian steel pipe producer Interpipe Ltd. on CreditWatch with negative implications, reflecting the recent CreditWatch action on Ukraine and the company's potentially weak liquidity position. At the same time, the 'B' long-term rating on the company's senior unsecured debt was also placed on CreditWatch with negative implications, as was its 'uaA' Ukrainian national scale rating. The recovery ratings remain unchanged. The sovereign credit rating on Ukraine (foreign currency B+/Watch Neg/B, local currency BB-/Watch Neg/B, Ukraine national scale uaAA/Watch Neg/--) was placed on CreditWatch negative on Oct. 15, 2008, reflecting the impact of a deteriorating economic situation and associated exchange-rate depreciation on the country's financial sector asset quality, especially in light of its high level of private sector foreign currency borrowing, equivalent to 35% of GDP. "We believe the group's liquidity position to be somewhat weak, in light of uncertainty over refinancing its high short-term debt, amidst a challenging bank environment not only in Ukraine, but also in Europe and other areas," said S&P's credit analyst Lucas Sevenin. While the group has access to long-term bank lines, which should allow it to fund its large ongoing investment project, liquidity weaknesses include: -- High short-term debt of around US$350 million; -- Limited cash balances as of end-September; and -- Major negative working capital outflows in first-half 2008, continuing the negative trend of 2007 and 2006. To assess liquidity, S&P will also be looking at the level of support from Interpipe's core banks. Before resolving the CreditWatch status, S&P will also assess: -- The group's ability to maintain satisfactory profitability and pricing power, although the oil and gas industry – which is one of the key end-markets for steel pipes -- should be less affected than the steel production industry. The decline in steel prices will also have a positive impact, reducing Interpipe's raw material costs. -- High inflation in Ukraine and rising energy costs, pushing up related manufacturing costs. S&P expects to resolve the CreditWatch status shortly after the resolution of that on Ukraine (expected within one month). "A downgrade is possible, but will depend on the rating action on the sovereign, our views on the deteriorated country and operating environment, as well as on the group's ability to manage liquidity and bank support," said Mr. Sevenin. S&P will also assess to what extent Interpipe's export-focused activities mitigate any of the aforementioned heightened risks. KIEV-INCOME LLC: Creditors Must File Claims by October 22 --------------------------------------------------------- Creditors of LLC Kiev-Income (code EDRPOU 23170466) have until Oct. 22, 2008, to submit proofs of claim to: The Economic Court of Kiev Komintern Str. 16 01032 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 27, 2008. The case is docketed as B 11/215-08. The Debtor can be reached at: LLC Kiev-Income Lenin Str. 82 Gostomel 08290 Kiev OKNOPLAST-GROUP LLC: Creditors Must File Claims by October 24 ------------------------------------------------------------- Creditors of LLC Oknoplast-Group (code EDRPOU 32306365) have until Oct. 24, 2008, to submit proofs of claim to: Sergey Shkuro Liquidator P.O. Box 190 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on May 20, 2008. The case is docketed as 44/1-b. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Oknoplast-Group Vizvoliteley Str. 3 Kiev Ukraine NAFTOGAZ OJSC: Fitch Trims LT Foreign & Local Currency IDRs to 'B' ------------------------------------------------------------------ Fitch Ratings has downgraded OJSC Naftogaz of Ukraine's Long-term local and foreign currency Issuer Default ratings to 'B' from 'B+'. This follows the downgrade of Ukraine's sovereign Long-term local and foreign currency IDRs to 'B+' from 'BB-'. The IDRs of Naftogaz remain on RWN. The senior unsecured rating on the company's US$500 million eurobond maturing in 2009 is also downgraded to 'B+' from 'BB-', and its Recovery rating of 'RR4' is affirmed. Fitch is maintaining Naftogaz's IDRs on RWN because the company is currently in technical default of its US$500 million eurobond due to non-publication of its FY07 financial statements. Additionally, the company has not yet been able to arrange financing for winter gas storage purchases; the prospective gas price agreement between Ukraine and Russia could lead to a significant rise in gas import prices to Ukraine in 2009; and Fitch believes the current level of government subsidization is inadequate to fully compensate the company for losses in its residential sales business. The RWN will be reviewed once the bondholders conduct a vote, which is expected before the end of the year. If bondholders again vote for a default waiver as was the case in October 2007, then the RWN could be resolved by subsequent financial disclosure. Any further rating action will depend on an assessment of the company's business and financial conditions once the abovementioned issues are resolved. The 'RR4' on Naftogaz's US$500 million eurobond reflects Fitch's expectation of average recovery in the event of default. The senior unsecured 'B+' rating of the eurobond is one notch above the company's IDRs and in line with the sovereign IDR, reflecting a state budget provision to guarantee Naftogaz's existing debt held by non-residents. Recovery ratings in certain emerging markets such as Ukraine are currently capped by Fitch at 'RR4' due to factors such as uncertainties surrounding these countries' legal regimes being supportive of creditor rights. SPECIAL MOTOR: Creditors Must File Claims by Oct. 24 ---------------------------------------------------- Creditors of OJSC Motorcar Enterprise Special Motor Transport (code EDRPOU 32827489) have until Oct. 24, 2008, to submit proofs of claim to: Sergey Shkuro Liquidator P.O. Box 190 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 4, 2008. The case is docketed as 44/70-b. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: OJSC Motorcar Enterprise Special Motor Transport Perspektivnaya Str. 9/11 Kiev Ukraine SYSTEMS AND TECHNICS: Creditors Must File Claims by October 22 -------------------------------------------------------------- Creditors of LLC Joint Ukrainian-German Enterprise Systems and Technics of Agrarian Crops (code EDRPOU 32034664) have until Oct. 22, 2008, to submit proofs of claim to: The Economic Court of Kiev Komintern Str. 16 01032 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 27, 2008. The case is docketed as B 11/217-08. The Debtor can be reached at: LLC Joint Ukrainian-German Enterprise Systems and Technics of Agrarian Crops Avtoshliakhova Str. 1-A Gostomel 08290 Kiev Ukraine TAIG LLC: Creditors Must File Claims by October 22 -------------------------------------------------- Creditors of LLC Taig (code EDRPOU 32362750) have until Oct. 22, 2008, to submit proofs of claim to: The Economic Court of Kiev Komintern Str. 16 01032 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 27, 2008. The case is docketed as B 11/216-08. The Debtor can be reached at: LLC Taig Vodoprovodnaya Str. 34 Bucha 08290 Kiev Ukraine UKRAINIAN RECONSTRUCTION: Creditors Must File Claims by Oct. 24 --------------------------------------------------------------- Creditors of OJSC Ukrainian Reconstruction (code EDRPOU 32827473) have until Oct. 24, 2008, to submit proofs of claim to: Sergey Shkuro Liquidator P.O. Box 190 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 22, 2008. The case is docketed as 44/65-b. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: OJSC Ukrainian Reconstruction Kikvidze Str. 41 Kiev Ukraine * CITY OF KYIV: Fitch Trims LT IDRs to 'B+'; Keeps Neg. Outlook --------------------------------------------------------------- Fitch Ratings has downgraded Ukraine's City of Kyiv to Long-term foreign and local currency ratings 'B+' from 'BB-'. Its Short term foreign currency rating is affirmed at 'B'. The Outlooks for the Long-term ratings remain Negative. The action affects outstanding bonds issued by the city. Fitch also revised the Outlooks on Ukraine's City of Odessa and City of Kharkov to Negative from Stable. Their Long-term foreign and local currency ratings are affirmed at 'B+' and Short term foreign currency ratings at 'B'. The rating actions follow the downgrade of Ukraine's Long-term foreign and local currency Issuer Default Ratings to 'B+' from 'BB-' due to a significant and rising risk of financial crisis in Ukraine involving a large depreciation of the currency, stress in the banking system and significant damage to Ukraine's real economy. The Outlooks on the sovereign ratings remain Negative. * UKRAINE: Fitch Cuts IDRs to 'B+'; Keeps Negative Outlook ---------------------------------------------------------- Fitch Ratings has downgraded Ukraine's Long-term foreign and local currency Issuer Default Ratings to 'B+', from 'BB-'. The Outlooks on both IDR remain Negative. The agency has also downgraded the Country Ceiling to 'B+' from 'BB-'. The Short-term foreign currency IDR is affirmed at 'B'. "The downgrade reflects Fitch's concern that the risk of a financial crisis in Ukraine involving a large depreciation of the currency, further stress in the banking system and significant damage to Ukraine's real economy is significant and rising. Such a scenario would damage the sovereign's balance sheet. Nevertheless, Fitch believes risks to Ukraine's ability to meet its sovereign obligations remain low in the near term owing to the sovereign's modest refinancing needs," said Andrew Colquhoun, Director in Fitch's Sovereigns Group. Ukraine has officially requested assistance from the IMF and a Fund team is currently in Kyiv. Fitch would view a sizable and appropriately-designed IMF program as a positive factor, although the agency awaits precise details before drawing firm conclusions. However, depositor confidence in the banking system may remain shaky and the economy will face a difficult adjustment even if a program is arranged, extending Ukraine's exposure to financial instability. On October 13, Fitch signaled rising concerns over the health of Ukraine's banking system amid a sharp tightening in liquidity conditions and some deposit withdrawals from the system following the failure of sixth-largest bank Prominvest. Fitch is unconvinced that the raft of emergency support measures announced by the central bank, including stepped-up liquidity provision and a ban on early redemption of term deposits, will be adequate to shore up depositor confidence and forestall further banking-system stress. New central bank rules restricting loan growth threaten to exacerbate a slowdown in the economy, which could hit banks' asset quality relatively soon. A relatively high share of FX-denominated lending (51% at end- August) exposes the financial system to risks from enhanced currency volatility. Ukraine's currency, the hryvnia, fell to 5.6 against the US$ by October 8, down 10% on the month, before climbing back to around 5.2-5.3 on intervention by the central bank. The UAH is likely to stay under pressure from a widening current account deficit, which Fitch projects at around 7% of GDP in 2008, versus 4.2% in 2007. Falling steel prices will intensify a terms-of-trade shock originating in a likely strong increase in Ukraine's gas import price next year. Strong borrowing by the private sector took Ukraine's gross external debt to US$100 billion by end-June 2008, including US$28 billion of private-sector short-term debt. Hard numbers on private-sector external debt maturities for 2009 are not available, but Fitch estimates these could be around US$19 billion for longer-term borrowing. With many private-sector borrowers likely to find it hard to refinance their maturing external borrowing, the sovereign may be forced to provide resources from official reserves, which are also needed to shore up confidence in the exchange rate. Fitch continues to draw comfort from Ukraine's moderate sovereign refinancing needs for 2009 of US$2.5 billion, of which US$0.9 billion are domestic and US$1.6bn are external (including a US$0.5 billion eurobond maturity in May), compared with the latest disclosure for official reserves of US$37.5 billion on October 9. The country's low general government debt/GDP ratio of 10% for end-2007 is well below the 'BB' median of 34% (and the 'B' median of 33%). However, worsening economic prospects and requirements for official support to the economy could erode Ukraine's fiscal strength in the medium term. * UKRAINE: Fitch Cuts Foreign Currency Ratings on Two Companies --------------------------------------------------------------- Fitch Ratings has downgraded two Ukrainian companies' foreign currency ratings, revised the foreign currency Outlook on three others and affirmed the ratings of six companies following the Sovereign downgrade of the Ukraine to 'B+'/Negative Outlook, and in view of current and/or prospective liquidity constraints facing these companies. Ukranian companies whose foreign currency ratings have been downgraded are: Metinvest B.V. (Metinvest) -- Long-term foreign currency IDR: downgraded to 'B+' from 'BB-'. The Outlook remains Negative. This rating is constrained by the Ukrainian sovereign rating. -- LT local currency IDR is affirmed at 'BB-'. The Outlook remains Stable. -- Short-term FC IDR: affirmed at 'B'. -- National LT rating is upgraded to 'AA+(ukr)' from 'AA'(ukr) with Stable Outlook, due to a recalibration of Fitch's National Ukrainian scale. -- National ST rating: affirmed at 'F1+'(ukr). OJSC Naftogaz of Ukraine -- LT FC IDR: downgraded to 'B' from 'B+' and remains on Rating Watch Negative -- LT LC IDR: downgraded to 'B' from 'B+' and remains on Rating Watch Negative -- The FC senior unsecured rating on the company's US$500m eurobond dated 2009 is downgraded to 'B+' from 'BB-'. Recovery rating of 'RR4' is affirmed. Ukranian companies whose FC IDR outlooks have been revised and ratings affirmed are: -- Corporation Industrial Union of Donbass LT FC IDR: affirmed at 'B+'. The Outlook is revised to Negative from Stable. This rating's outlook is constrained by the Ukrainian sovereign rating's outlook. -- ST FC IDR: affirmed at 'B' DTEK Holding Limited -- LT FC IDR: affirmed at 'B+'. The Outlook is revised to Negative from Positive. This rating's outlook is constrained by the Ukrainian sovereign rating's outlook. -- ST FC IDR: affirmed at 'B' -- Fitch has assigned a LT LC IDR at 'B+' with Positive Outlook -- National LT rating: affirmed at 'AA-(ukr)' with Positive Outlook -- National Senior Unsecured rating on a UAH500m bond affirmed at 'AA-(ukr)' Interpipe Limited (Interpipe) -- LT FC IDR: affirmed at 'B+'. The Outlook is revised to Negative from Stable. This rating's outlook is constrained by the Ukrainian sovereign rating's outlook. -- FC Senior Unsecured: affirmed at 'B+' with a Recovery Rating of 'RR4' -- ST FC IDR: affirmed at 'B' Ukranian companies whose ratings and have been affirmed are: OJSC Myronivsky Hliboproduct -- LT FC IDR: affirmed at 'B' with Stable Outlook -- LT LC IDR: affirmed at 'B' with Stable Outlook -- FC Senior Unsecured rating of 'B', RR4 with Stable Outlook has been affirmed. -- National LT rating: affirmed at 'A(ukr)' with Stable Outlook. CJSC Donetsksteel Iron and Steel Works (Donetsksteel) -- LT FC IDR: affirmed at 'B-' with Stable Outlook -- LT LC IDR: affirmed at 'B-' with Stable Outlook -- ST FC IDR: affirmed at 'B' -- ST LC IDR: affirmed at 'B' -- National LT rating: affirmed at 'BBB+'(ukr) with Stable Outlook. -- National ST rating: affirmed at 'F2'(ukr) OJC Concern Stirol -- LT FC IDR: affirmed at 'CCC' with Stable Outlook -- ST FC IDR: affirmed at 'B' -- The FC senior unsecured rating of 'CCC+' and RR4 on UkrChemCapital BV's bond is withdrawn as the bond has been repaid in full. The rating downgrades for Metinvest and Naftogaz, and FC Outlook changes for Donbass, Interpipe and DTEK reflect the sovereign rating action. Fitch also took into consideration the immediate liquidity constraints within the Ukrainian banking system which affect daily liquidity requirements for these companies, as well as the impact of a slower economic environment for the county and region. Fitch also notes that whilst the financial performance of Metinvest, Donetsksteel and ISD has not been helped by recent steel commodity price declines, their ratings have not been based on the companies maintaining their previous peak prices or volumes. Many of Fitch-rated corporates have a significant portion of USD- denominated debt. Given current market volatility, Fitch has focused on the companies' immediate debt maturities to January 2009 and has assumed foreign currency-providing banks lending to Ukrainian companies on short-term facilities may not refinance those lines. This means companies without foreign currency -denominated net revenues will have to rely on a weakened domestic banking system. In this regard, over the long-term, MHP is particularly exposed since it has less USD-denominated receipts than other rated entities although its key bond maturity is not until 2011. The Ukrainian central bank has imposed limitations on banks' ability to extend assets in most categories above the end-13 October 2008 level. As a result, any new debt - if available - will be expensive, in Fitch's view. The sovereign downgrade reflects Fitch's view that Ukraine faces a significant and rising risk of a financial crisis involving a substantial depreciation of the currency. Such depreciation would significantly increase corporates' foreign currency-denominated debt service obligations in local-currency terms. Companies without a currency hedging program in place or foreign currency revenues could face a greater debt burden. =========================== U N I T E D K I N G D O M =========================== AMERICAN INT'L: Sens. Want Halt on Mortgage Law Change Efforts -------------------------------------------------------------- Elizabeth Williamson at The Wall Street Journal reports that Senator Dianne Feinstein of California, and Senator Mel Martinez of Florida asked American International Group Inc. on Friday to stop using taxpayers money in its effort to diminish the new federal controls over the mortgage industry. WSJ relates that after receiving an emergency loan from the government, in exchange of an 80% stake in the firm, AIG has continued to lobby states implementing a federal law that subjects mortgage originators to greater scrutiny. Under the Secure and Fair Enforcement for Mortgage Licensing Act of 2008, mortgage originators must be licensed by the states, and that they must supply comprehensive background information so regulators can better track their activities. WSJ states that bank regulators have been fighting for the law, saying that if they had been better able to track mortgage loan originators, they could have stopped some fraudulent practices that led to AIG's problems. WSJ reports that AIG, along with Citigroup Inc., and HSBC Holdings PLC, have engaged in a state-by-state effort to win concessions as states implement the law, saying that the licensing fees are too expensive, and that the information required from originators could lead to privacy violations. The companies, the report says, want greater transparency over how the licensing fees are to be spent by the states. According to WSJ, Sens. Feinstein and Martinez said in their letter to AIG Chief Executive Edward Liddy, "We find it unconscionable that AIG would take advantage of these taxpayer loans while paying lobbyists to rollback taxpayer protections against misrepresentations, deception, and fraud in mortgage lending. This crisis was stoked, in part, by abusive and predatory lending practices that were made possible by lax mortgage industry standards and oversight. We hope AIG will immediately cease all efforts to undermine strong licensing and oversight standards for the mortgage industry." About American International Based in New York City, American International Group Inc. -- http://www.aig.com/-- (NYSE: AIG) is an international insurance and financial services organization, with operations in more than 130 countries and jurisdictions. The company is engaged through subsidiaries in General Insurance, Life Insurance & Retirement Services, Financial Services and Asset Management. The company's British headquarters are located on Fenchurch Street in London, continental Europe operations are based in La Defense, Paris, and its Asian HQ is in Hong Kong. AIG owns Ocean Finance, a United Kingdom based company providing home owner loans, mortgages and remortgages. AIG operates in the UK with the brands AIG UK, AIG Life and AIG Direct. It has about 3,000 employees, and sponsors the Manchester United football club. In response to redemption demands, AIG Life (UK) suspended redemptions of its AIG Premier Bond money market fund on Sept. 19, 2008, in order to provide an orderly withdrawal of assets. The Federal Reserve Bank of New York has extended to AIG a revolving credit facility up to US$85 billion. AIG's borrowings under the revolving credit facility will bear interest, for each day, at a rate per annum equal to three-month Libor plus 8.50%. The revolving credit facility will have a 24-month term and will be secured by a pledge of assets of AIG and various subsidiaries. The revolving credit facility will contain affirmative and negative covenants, including a covenant to pay down the facility with the proceeds of asset sales. The summary of terms also provides for a 79.9% equity interest in AIG. The corporate approvals and formalities necessary to create this equity interest will depend upon its form. In a statement, the company said "AIG is a solid company with over US$1 trillion in assets and substantial equity, but it has been recently experiencing serious liquidity issues." Standard & Poor's Ratings Services revised the CreditWatch status of most of its ratings on the AIG group of companies -- including its 'A-' long-term counterparty credit ratings on American International Group Inc. and the 'A+' counterparty credit and financial strength ratings on most of AIG's insurance operating subsidiaries -- to CreditWatch developing from CreditWatch negative. S&P raised its ratings on preferred stock of International Lease Finance Corp. (ILFC; A-/Watch Dev/A-1) to 'BBB' from 'B', and revised the CreditWatch implications to developing from negative. All other ILFC ratings remain on CreditWatch with developing implications. Fitch Ratings revised its Rating Watch on American International Group, Inc. to Evolving from Negative. Fitch viewed this transaction as a favorable development that alleviates significant near-term liquidity concerns. The Troubled Company Reporter reported on Sept. 19, 2008, that that Edward Liddy replaced Robert Willumstad as AIG's CEO. * * * In a U.S. Securities and Exchange Commission filing dated Aug. 6, 2008, AIG reported a net loss for the second quarter of 2008 of US$5.36 billion compared to 2007 second quarter net income of US$4.28 billion. Second quarter 2008 adjusted net loss was US$1.32 billion, compared to adjusted net income of US$4.63 billion for the second quarter of 2007. The continuation of the weak U.S. housing market and disruption in the credit markets, as well as global equity market volatility, had a substantial adverse effect on AIG's results in the second quarter. Net loss for the first six months of 2008 was us$13.16 billion, compared to net income of us$8.41 billion in the first six months of 2007. Adjusted net loss for the first six months of 2008 was US$4.88 billion, compared to adjusted net income of US$9.02 billion in the first six months of 2007. ALEXANDER RICHARDS: Appoints Liquidators from BDO Stoy Hayward -------------------------------------------------------------- Graham David Randall and Simon Edward Jex Girling of BDO Stoy Hayward LLP were appointed joint liquidators of Alexander Richards (Swindon) Ltd. on Oct. 2, 2008, for the creditors' voluntary winding-up proceeding. The company can be reached at: Alexander Richards (Swindon) Ltd. c/o BDO Stoy Hayward LLP One Victoria Street Bristol BS1 6AA England DEE THAIN: Joint Liquidators Take Over Operations ------------------------------------------------- P. Atkinson and D. C. Wilson of Vantis Business Recovery Services were appointed joint liquidators of Dee Thain Ltd. (t/a Saks Hair and Beauty) on Oct. 6, 2008, for the creditors' voluntary winding- up proceeding. The company can be reached at: Dee Thain Ltd. c/o Vantis Business Recovery Services 43-45 Butts Green Road Hornchurch Essex RM11 2JX England EXETER BLUE: Fitch Assigns 'BB' Rating on EUR8.5MM Class E Notes ---------------------------------------------------------------- Fitch Ratings has assigned Exeter Blue Limited's EUR125.9 million floating rate notes due 2025 expected ratings. The transaction is a managed securitization of public private partnership/public finance initiative and project finance loans predominantly located in western Europe and North America. -- EUR31.875 million Class A: 'AAA'; Outlook Stable -- EUR31.875 million Class B: 'AA'; Outlook Stable -- EUR26.5625 million Class C: 'A'; Outlook Stable -- EUR10.625 million Class D: 'BBB'; Outlook Stable -- EUR8.5 million Class E: 'BB'; Outlook Stable The final ratings are contingent on the receipt of final documents conforming to information already received. The ratings are based on the credit enhancement available to the Class A through E notes in the form of subordination, structural covenants and excess spread. Although excess spread is used only to offset principal losses on the subordinated notes (which are not rated), the Class A through E notes benefit as losses on the subordinated notes that are offset may partially or fully restore the original credit enhancement levels. The ratings also take into account the quality and diversity of the portfolio of assets. The closing portfolio has significant concentration in the PPP/PFI, energy and transport sectors as well as significant single obligor exposure where the top five obligors comprise approximately 23% of the portfolio. The transaction allows for a replenishment period of four years during which Lloyds TSB may reference additional assets or increase exposure to existing assets as a result of amortizations in the initial portfolio. The issuer is a company with limited liability, incorporated under the laws of Jersey. At closing, the issuer will enter into six credit default swaps with Lloyds TSB ('AA+' / 'F1+'/Rating Watch Negative) where Lloyds TSB will buy protection on a reference portfolio of EUR1,062.5 milion. Each credit default swap corresponds to one of five classes of rated notes and the sole class of subordinated notes, which is unrated. The notional amount corresponding to the most senior level of the capital structure will not be issued and sold to any noteholder, although it will be considered in making determinations related to the credit default swaps. The note issuance proceeds will be held in a deposit account with Lloyds TSB over which all rated notes will have a contractual right. The ratings of the notes address the likelihood that investors will receive full and timely payments of interest and ultimate repayment of principal by the legal final maturity date according to the terms of the notes. GEMINI ECLIPSE: S&P Cuts Class E Notes Rating to BB; Keeps Watch ---------------------------------------------------------------- Standard & Poor's Ratings Services has lowered and kept on CreditWatch with negative implications its rating on the class E notes and has lowered and placed on CreditWatch negative its rating on the class D notes issued by GEMINI (ECLIPSE 2006-3) PLC. The ratings on the other classes of notes in this deal remain unaffected. On July 3, S&P placed the class E notes on CreditWatch negative due to its concerns over the loan . On July 17, a new valuation was reported as GBP958.65 million, resulting in an LTV ratio for the securitized senior loan of 88.7%. This caused a breach of the senior loan covenant that is set at 80%, giving rise to an event of default. S&P understands that neither the borrower nor the junior lender cured the default. Following an event of default under the whole loan, all interest and principal due to the junior lender is retained in an escrow account. If the decision is taken to enforce under the loan, the amounts credited to the escrow account will first be applied to repay the senior loan. On Aug. 18, the loan was transferred to special servicing. Following the transfer, Barclays Capital Mortgage Servicing Ltd., as special servicer, had to obtain a new valuation of the secured property portfolio. On Sept. 26, the new valuation was reported as GBP801.4 million by CB Richard Ellis and King Sturge, resulting in LTV ratios for the senior loan and the whole loan of 106.1% and 119.4%, respectively. This latest valuation represented a 16.5% decline on the previous valuation reported in July. Despite the significant market value decline since closing that has been driven by increases in cap rates, the portfolio has performed well. Occupancy has increased to 95% from 88% at closing. Most of the rental guarantees in place at closing have expired, although the borrower has relet vacant space and maintained a stable rental income. This is reflected in the July 2008 senior interest-coverage ratio that was reported as 1.30x—the same level of coverage as at closing. There is sufficient cash flow to service the securitized senior loan, although it is likely to be some time before property values recover to previous levels. S&P does not expect enforcement action to be taken in the near term due to the current unfavorable market conditions. However, the risk of ultimate losses on the downgraded notes has, in S&P's view, increased. In view of the continuing performance of the secured property portfolio and strong level of cash flow which allows for the ongoing service of the securitized senior debt, the ratings on the other classes of notes are unaffected at this stage. S&P will, however, continue to monitor this transaction to understand how developments affect its credit opinion for these notes. Gemini (Eclipse 2006-3) PLC: -- GBP918.862 Million Commercial Mortgage-Backed Floating-Rate Notes Rating Lowered And Kept On CreditWatch Negative: Class To From ----- -- ---- E BB/Watch Neg BBB/Watch Neg Rating Lowered And Placed On CreditWatch Negative: Class To From ----- -- ---- D BBB/Watch Neg A INFORMATION ASSURANCE: Brings in Liquidators from Tenon ------------------------------------------------------- Paul W. Ellison and Gareth W. Roberts of Tenon were appointed joint liquidators of Information Assurance Services Ltd. on Oct. 7, 2008, for the creditors' voluntary winding-up proceeding. The company can be reached at: Information Assurance Services Ltd. c/o Tenon Aquarium 1-7 King Street Reading Berkshire RG1 2AN England LANDSBANKI GUERNSEY: To Pay Depositors 30 Pence in the Pound ------------------------------------------------------------ The Administrators of Landsbanki Guernsey Ltd, on Thursday, announced a proposal to make a part-payment to depositors equivalent to 30 pence in the GBP1. The Bank was placed into administration on October 7, 2008. As reported in the TCR-Europe, the administration, which follows the deepening problems of the Icelandic economy and, in particular, of the Icelandic banking system, is on a temporary basis until Jan. 6, 2009 or earlier order of the Royal Court. The affairs, business and property of the Bank are being managed by the Joint Administrators, Rick Garrard and Lee Manning of Deloitte, the business advisory firm. Proposed Part-Payment to Depositors Rick Garrard, Joint Administrator, announced: "We are now in a position to make a part-payment on request to depositors equivalent to 30 pence in the GBP1 on all deposits as at October 7, 2008, the date the Bank went into Administration. We will provide depositors with details of how to request this withdrawal or how to transfer the funds to another bank in a letter to be issued to customers later [Thurs]day. Those depositors who do not seek to withdraw any or all of the estimated 30 pence in GBP1 being made available will retain their entitlement to withdraw monies upon request up to the estimated on account part-payment of 30 pence in GBP1. The Joint Administrators will retain ringfenced funds to meet these commitments. These monies will attract interest at the normal short notice rate offered by our bankers (currently at 3.5%). Depositors should note they have no automatic right to interest after October 7, 2008, other than in respect of the ringfenced monies noted above. The speed of this payment is unprecedented and was approved by the Court late last night without sufficient time to fully quantify the level of creditors. For this reason the Court has concluded significant cash balances will remain in the Bank after allowing for this proposed partial payment. . Rick Garrard continued: "We understand that depositors have been awaiting news on the prospects for recovery of their deposits from the Bank. The reason for the delay has been the need to obtain a better understanding of the position of the Bank and obtain Court approval that all depositors can be treated equally, notwithstanding any different terms of their deposits." It has also been necessary to seek clarification that the Financial Sanction Notice issued by HM Treasury freezing its parent Landsbanki Islands hf's (in Receivership) ("LIH") assets did not impact on the liquid cash assets of the Bank and to ensure the Bank had appropriate insurance cover in place to make the payment. Prospect for Further Part-payment to Depositors Rick Garrard commented: "The prospects for further repayment to depositors are good but the repayment of substantial extra sums is dependent on a recovery of certain illiquid assets." The Administrators will be providing depositors with a Summary Preliminary Statement of Affairs for the Bank, outlining its assets, which comprise participations in commercial loans secured on UK commercial, development and residential property; inter-bank deposits with Heritable Bank (in Administration) ("HB"); and inter-bank deposits with the Bank's parent LIH. Rick Garrard added: "There are good grounds to believe the commercial loans and the HB deposit, which is mainly supported by commercial loans of similar type as the Bank's commercial loans, will ultimately achieve a significant realization of cash which would be available for repayment to depositors. "The speed of recovery will depend on agreeing a sale of the commercial loans at a price which does not compromise the depositors’ ultimate recovery. A number of credible parties have already expressed interest in a purchase and due diligence commenced on October 10. It should be appreciated that a sale of the commercial loans may take some time to achieve as acquirers will need to undertake their own enquiries prior to any offer." The recoverability of inter-bank deposits with LIH and other potential recoveries against the Bank's parent remain unclear while the position of the Icelandic banks remain the subject of discussions at governmental level. Depositors should be aware that the States of Guernsey, the Guernsey Financial Services Commission ("GFSC") and the Administrators are engaging with HM Government in the UK and the Icelandic authorities on this matter. Prospect for Full Repayment to Depositors The collapse of HB and other uncertainties have now placed greater doubt on the ability of the Bank to recover sufficient assets to pay depositors in full. Several high-level discussions have been held with representatives of the States of Guernsey and they continue to be kept fully informed of developments. In addition, discussions have also been held with potential acquirers of the whole Bank with a view to protecting all depositors' monies. Such an eventuality would be the best solution but appears less likely at the current time due to the level of uncertainty over the recoverable value of the illiquid assets. The Summary Preliminary Statement of Affairs shows that although the Bank, with the full involvement of the GFSC took substantial steps to reduce its direct exposure to LIH as the risks of difficulties in Iceland increased, the Bank has had liquidity difficulties due to the failure of HB, the fellow UK subsidiary of the Bank, which is regulated by the UK Financial Services Authority. HB went into Administration on the same day as the Bank's Administration and owed the Bank GBP36 million. Rick Garrard commented: "As you are probably now aware, there is no depositor protection scheme in Guernsey. Furthermore support for depositors from the States of Guernsey, the UK and other Governments and other banking institutions is not an obligation and cannot be assumed. The Joint Administrators remain cautious about the prospects of such a solution. While depositors may be disappointed, they can be assured the Administrators are working very hard to secure repayments as soon as possible." About Landsbanki Islands hf. 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. About Landsbanki Guernsey Ltd. Landsbanki Guernsey Ltd. -- http://www.landsbanki.co.gg/-- is engaged in retail banking. It is a subsidiary of Iceland-based financial institution Landsbanki Islands hf. MAKRITE LTD: M. H. Abdulali Leads Liquidation Procedure ------------------------------------------------------- M. H. Abdulali of Moore Stephens was appointed liquidator of Makrite Ltd. on Oct. 2, 2008, for the creditors' voluntary winding-up procedure. The company can be reached at: Makrite Ltd. c/o Moore Stephens 6 Ridge House Ridgehouse Drive Festival Park Stoke on Trent Staffordshire England M J L DECORATING: Taps Liquidators from Tenon Recovery ------------------------------------------------------ Nigel Ian Fox and Alexander Kinninmonth of Tenon Recovery were appointed joint liquidators of M J L Decorating Ltd. on Sept. 26, 2008, for the creditors' voluntary winding-up proceeding. The company can be reached at: M J L Decorating Ltd. c/o Tenon Recovery Highfield Court Tollgate Chandlers Ford Eastleigh Hampshire SO53 3TZ England NWLCC LTD: Claims Filing Period Ends October 31 ----------------------------------------------- Creditors of NWLCC Ltd. (formerly Kennyhire Ltd.) have until Oct. 31, 2008, to prove their debts by sending to: Michael William Young Liquidator Vantis Business Recovery Services Torrington House 47 Holywell Hill St. Albans Hertfordshire AL1 1HD England Michael William Young of Vantis Business Recovery Services was appointed liquidator of the company on Oct. 3, 2008, for the creditors' voluntary winding-up procedure. PETER MORRIS: Taps Liquidators from Vantis Business Recovery ------------------------------------------------------------ Glyn Mummery and Martin Weller of Vantis Business Recovery Services were appointed joint liquidators of Peter Morris (Builders) Ltd. on Oct. 3, 2008, for the creditors' voluntary winding-up proceeding. The company can be reached at: Vantis Business Recovery Services 43-45 Butts Green Road Hornchurch Essex RM11 2JX England SNOWDONIA SECURITIES: S&P Removes Watch on BB-Rated Class D Notes ----------------------------------------------------------------- Standard & Poor's Ratings Services has removed from CreditWatch with positive implications and raised its credit rating on the class C notes issued by Snowdonia Securities 2006-1 PLC. At the same time, S&P removes from CreditWatch positive and affirmed its rating on the class D notes and affirmed the rating on the class B notes. The rating actions follow a full credit and cash flow analysis of the most recent transaction information S&P received. The transaction is well seasoned and the level of credit enhancement has increased significantly since closing. Cumulative gross losses have started to stabilize and, given the seasoning of the transaction, S&P expects most of the losses in the transaction to have already occurred. The transaction reserve fund has witnessed consistent reserve fund draws, but S&P believes its current level remains sufficient to absorb future losses. The notes, issued in March 2006, are backed by a portfolio of auto and personal loans in the U.K. Snowdonia Securities 2006-1 PLC -- GBP200 Million Asset-Backed Floating-Rate Notes Rating Raised And Removed From CreditWatch Positive: Class To From ----- -- ---- C AA- BBB/Watch Pos Rating Removed From CreditWatch Positive And Affirmed: Class To From ----- -- ---- D BB+ BB+/Watch Pos Rating Affirmed: B AAA THEATR GWYNEDD: Goes Into Liquidation ------------------------------------- Theatr Gwynedd management board has put the theater into liquidation last Wednesday, Oct. 17, 2008, the BBC news reports. The theater was due to close on October 31. According to the report, the board said in a statement "The financial situation of the company was examined thoroughly. It was decided that the company could not continue to trade because of financial difficulties. "The board regrets that this will cause a delay in the payment of redundancy payments to members of staff. These payments will be made at a later date." Last week, supporters of the theater presented to the Welsh Assembly Government's culture minister a 2,000-name petition opposing its closure, the report says. The report adds that the board refused to reveal their debts, but the union claims it was around GBP90,000. Based in Bagor, North Wales, Theatr Gwynedd is a receiving theater which presents Welsh, English and International theatrical performances. TYKE SHOPFITTERS: Hires Liquidators from Mazars ----------------------------------------------- Robert David Adamson and Paul Charlton of Mazars LLP were appointed joint liquidators of Tyke Shopfitters Ltd. on Sept. 30, 2008, for the creditors' voluntary winding-up procedure proceeding. The company can be reached at: Tyke Shopfitters Ltd. c/o Mazars LLP Mazars House Gelderd Road Gildersome Leeds LS27 7JN England US ENERGY: Has Until December 5 to Solicit Acceptances of Plan -------------------------------------------------------------- The Hon. Robert D. Drain of the United States Bankruptcy Court for the Southern District of New York further extended the exclusive period of U.S. Energy Systems, Inc., and its debtor-affiliates to solicit acceptances of their Chapter 11 plan until Dec. 5, 2008. According to the Troubled Company Reporter on Oct. 7, 2008, the Debtors' chief executive officer Richard J. Augustine said the Debtors filed on Aug. 22, 2008, separate Chapter 11 plans for U.S. Energy Overseas Investments LLC and GBGH LLC. The Debtors submitted to the Court a joint liquidating plan for USEO and a plan of reorganization for GBGH, Mr. Augustine says. According to Bloomberg News, explanatory disclosure statements have not been filed. Under the USEO plan, a liquidation trust will be formed and any remaining assets -- including any proceeds from USEY's sale of 100% of the common stock of USEB and any residual ownership interest in GBGH -- will be transferred into the trust for liquidation and the subsequent distribution of net liquidation proceeds to USEY equity holders. The GBGH plan provides for, among other things (i) the restructuring of GBGH's first lien debt through issuance of a restructure first lien note, (ii) the execution of a rights offering for the raising of at least US$10 million of new equity in GBGH, and (iii) the issuance of new warrants convertible into equity interests in GBGH at to be established strike prices. The Debtors say that they do not have sufficient time to (i) make final amendments to the Chapter 11 plans before the solicitation process expires on Oct. 22, 2008, and (ii) obtain approval of disclosure statements regarding the Chapter 11 plans. U.K. Plant Shutdown On Aug. 23, 2008, the Knapton Plant, a 42MW natural gas-fired electricity generating plant in the United Kingdom, was shut down to perform scheduled maintenance and gas flows from the plant were as well shut down in order to preserve gas reserves. Upon the completion of the scheduled maintenance work five days later, attempts to restart the gas flows from the plan failed. Ground water that overtook the natural gas in the plant's reservoir was blamed for the malfunction. As a result, the inability to obtain gas production, electricity production at the plant has been reduced to two to four hours per day. This will remain the case until new wells are drilled. The current business plan includes the drilling of new wells in early 2009. According to the Debtors, these operational difficulties have changed the short-term economics of the Chapter 11 Plans and required additional time on the part of potential equity investors to consider amendments to the Chapter 11 Plans, which the Debtors are in the midst of negotiating. A full-text copy U.S. Energy and U.S. Energy Overseas' Chapter 11 plan is available for free at http://ResearchArchives.com/t/s?3162 A full-text copy of GBGH's Chapter 11 plan is available for free at http://ResearchArchives.com/t/s?3163 About U.S. Energy Based in Avon, Connecticut, U.S. Energy Systems, Inc., (Pink Sheets: USEY) -- http://www.usenergysystems.com/-- owns green power and clean energy and resources. USEY owns and operates energy projects in the United States and United Kingdom that generate electricity, thermal energy and gas production. The company filed for Chapter 11 protection on Jan. 9, 2008 (Bank. S.D. N.Y. Case No. 08-10054). Subsequently, 34 affiliates filed separate Chapter 11 petitions. Peter S. Partee, Esq., at Hunton & Williams LLP, represents the Debtor in its restructuring efforts. Jefferies & Company, Inc., serves as the company's financial advisor. The Debtor selected Epiq Bankruptcy Solutions LLC as noticing, claims and balloting agent. The Official Committee of Unsecured Creditors has yet to be appointed in these cases by the U.S. Trustee for Region 2. When the Debtors filed for protection from their creditors, they listed total assets of US$258,200,000 and total debts of US$175,300,000. WINDERMERE VIII: S&P Lowers Rating on Class E Notes to B-/WatchNeg ------------------------------------------------------------------ Standard & Poor's Ratings Services said that following a review of the remaining loans in the Windermere VIII transaction, it has lowered its credit rating on the class E notes issued by Windermere VIII CMBS PLC. All classes of notes in this deal (including the class E notes) remain on CreditWatch with negative implications. The rating action reflects S&P's concerns for the Amadeus Portfolio loan and the ability to repay the principal balance in full at loan maturity in April 2009, or through enforcement. The Amadeus Portfolio Loan, which accounts for 4.7% of the current pool balance, matures in April 2009. It is secured against three office properties in Nottingham, Middlesbrough, and Colindale (northwest London). All the properties are of mediocre specification and occupy secondary locations. Occupancy has increased to approximately 74.6% (by floor area) from 63.6% at closing resulting in a current net operating income (NOI) of approximately GBP2.2 million per year, assuming a 10% deduction from the current gross income to cover nonrecoverable costs. This produces an exit yield on debt of 7.3%. S&P does not expect any further material increase in occupancy over the loan term. Despite the gross income increase, the borrower was required to deposit an additional GBP55,000 into the reserve account to avoid a breach of the DSCR covenant of 1.05x on the April 2008 IPD. This deposit was funded from a payment received by the borrower from National Grid for works undertaken at the Colindale property. The balance of this payment is held in an issuer-controlled account. In total, approximately GBP400,000 is held in issuer-controlled accounts and may also be used to meet debt-service payment shortfalls. If current income does not decrease from current levels, S&P expects the reserve amounts to be sufficient in meeting future shortfalls and avoiding DSCR covenant breaches for the remainder of the loan term. The current loan balance is GBP30.37 million, giving an LTV ratio of 84.4%, down from 86.3% at closing. Both ratios are based on bank valuations from January 2006. Assuming that all remaining debt service payments are made, the LTV ratio will reduce to 84.3% at loan maturity. S&P's NOI for this loan is GBP2 million per year and assumes occupancy at 70%, rents of GBP11-GBP12 per sq ft and a 10% deduction to cover non-recoverable costs resulting in an exit yield on debt is 6.7%. Although the current income is above its initial expectations, S&P remains concerned about the ability to repay the principal balance in full at loan maturity in April 2009, or through enforcement. Market values of U.K. commercial property have declined over the past 12 months with secondary assets—such as those securing the Amadeus Portfolio loan—being particularly affected. Furthermore, the subject properties have high vacancy levels and, in its view, limited potential for rental growth. S&P believes that the market value of the properties is likely to be below that reported in January 2006 S&P will continue to closely monitor and evaluate information available on this transaction including the impact any new hedging arrangements may have. Windermere VIII CMBS PLC -- GBP1,037.79 Million Commercial Mortgage-Backed Floating-Rate Notes Rating Lowered And Remaining On CreditWatch Negative: Class To From ----- -- ---- E B-/Watch Neg BB-/Watch Neg Ratings Remaining On CreditWatch Negative: A2 AAA/Watch Neg A3 AAA/Watch Neg B AA/Watch Neg C A/Watch Neg D BBB/Watch Neg XL LEISURE: AADB Launches Probe Into BDO's Conduct as Auditors -------------------------------------------------------------- The Accountancy and Actuarial Discipline Board, on Wednesday, October 15, launched an investigation under its Scheme for the accountancy profession into the conduct of BDO Stoy Hayward LLP as auditors to XL Leisure Group plc. The investigation points to "The conduct of BDO Stoy Hayward LLP as auditors to XL Leisure Group plc in respect of the audit of the accounts of the company and its subsidiaries for the year ended October 31, 2007." The decision was taken following a reference from the Institute of Chartered Accountants of England and Wales (ICAEW). AADB however said that an investigation does not always mean that an allegation has been made or there is any evidence of misconduct. He noted that if the board's probe does uncover wrongdoing, sanctions available include reprimands, unlimited fines or even taking away a company's professional license to operate, The Press Association writes. The Press Association quotes a BDO spokesman as saying "It would be inappropriate to make any comments during an investigation but we will of course co-operate in any way we can with the AADB." As reported in the TCR-Europe, XL Leisure Group Plc, XL Airways UK Limited, Excel Aviation Limited, Explorer House Limited, Aspire Holidays Limited, Freedom Flights Limited, Freedom Flights (Aviation) Limited, The Really Great Holiday Company plc, Medlife Hotels Limited, Travel City Flights Limited, and Kosmar Villa Holidays plc went into administration on September 12, 2008. Alastair Beveridge, Nick Cropper, Simon Appell and Stuart Mackellar were appointed as joint administrators of the companies by the Court. Headquartered in Crawley, XL Leisure Group -- http://www.xl.com/ -- is the third largest tour operating group in the UK. The company also has operations in France, Germany, Ireland, Australia and Cyprus. * 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 (59) Setuza A.S. (61) 139 (62) 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) 629 347 Immob Hoteliere (67) 301 (17) Lab Dosilos (28) 110 (44) 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 (36) Trouvay Cauvin (0) 134 9 GERMANY ------- Alno AG ANO (21) 340 (88) Brokat AG (27) 144 109 CBB Holding AG COB (43) 905 N.A. Cinemaxx AG MXC (38) 178 (47) Dortmunder Actien-Brauerei DABG (13) 118 (28) EECH Group AG 0 109 57 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) P & T Technology 0 109 57 Primacom AG PRC (14) 730 (68) Sander AG (6) 128 31 Sinnleffers AG (4) 454 (182) 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 (57) Noussa Spin (11) 450 (107) Petzetakis-PFC PETZP (15) 284 (143) Radio A.Korassidis KORA (101) 181 (164) Commercial Themeliodome (56) 232 (128) United Textiles (11) 450 (107) HUNGARY ------- Brodograde Indus (322) 263 (366) IPK Osijek DD OS (15) 124 (82) OT Optima Teleko (26) 119 8 ICELAND ------- Decode Genetics (186) 111 48 Fortune Mgmt. (119) 265 54 Samsonite Corp. (199) 651 149 IRELAND ------- Elan Corp PLC ELN (388) 1,599 705 Waterford Wed Ut WTFU (506) 820 364 ITALY ----- 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. (8) 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 (25) 488 31 Technodiffusione Italia S.p.A. TDIFF.PK (90) 152 (30) NETHERLANDS ----------- Baan Company N.V. BAAN (8) 610 46 James Hardie Ind. (238) 2,357 184 United Pan-Euro Air UPC (5,506) 5,113 (9,170) NORWAY ------ Interoil Exploration IOX (25) 210 (11) Petroleum-Geo Services PGO (18) 400 (758) POLAND ------ Toora (288) 147 (86) ROMANIA ------- Oltchim RM Valce OLT (7) 673 (170) Rafo Onesti RAF (430) 353 (616) RUSSIA ------ Akcionernoe Brd (116) 134 (24) East Siberia Brd VSNK (113) 148 (10) Gukovugol (58) 144 (148) Omskij Kauchu OMKA (4) 125 (68) OAO Samaraneftegas (332) 892 (611) Vimpel Ship SOVP (116) 135 (24) Zil Auto ZILLP (240) 478 (447) SWEDEN ------ Swedish Match (69) 2,444 545 TURKEY ------ Egs Ege Giyim VE (7) 147 (25) Iktisat Financial (46) 108 N.A. Mudurnu Tavukcul (65) 160 (115) Nergis Holding (77) 299 38 Sifas (17) 117 21 UKRAINE ------- Dniprooblenergo DNON (51) 433 (200) Donetskoblenergo DOON (341) 573 (469) UNITED KINGDOM -------------- Advance Display (3,016) 2,590 (411) Airtours Plc (379) 1,818 (932) Alldays Plc (121) 253 (290) Amer Bus Sys (497) 121 (497) Amey Plc AMY (49) 932 (76) Anker Plc (22) 115 16 Atkins (WS) Plc ATK (46) 1,344 58 Black & Edgingto (140) 203 23 BNB Recruitment (10) 104 38 Booker Plc BKRUY (60) 1,300 (13) Bradstock Group BDK (2) 268 7 British Energy Ltd (5,823) 4,921 533 British Energy Plc BGY (5,823) 4,921 533 British Sky Broadcast (334) 8,126 (388) Carlisle Group (12) 203 30 Compass Group CPG (668) 2,972 (440) Danka Bus (497) 121 (497) Dawson Holdings (18) 226 (63) Dignity Plc DTY (9) 648 71 Easynet Group ESY.L (45) 323 68 Electrical and Music Industries Group EMI (2,266) 2,950 (582) European Home (14) 111 (70) Farepak Plc (14) 111 (70) Gartland Whalley (11) 145 (13) Hilton Food Group (21) 256 (12) Kleeneze Plc (14) 111 (70) Ladbrokes Plc LAD (814) 2,403 (706) Lambert Fenchurch Group (1) 1,823 5 Leeds United (73) 144 (48) M 2003 Plc (2,205) 7,210 (1,078) Mytravel Group MT.L (380) 1,818 (931) New Star Asset (398) 293 21 Next Plc (119) 3,161 (125) Orange Plc ORNGF (594) 2,902 12 Orbis Plc (4) 123 (5) Patientline Plc (55) 125 (10) Preedy Alfred (119) 3,161 (125) Rank Group Plc (132) 1,066 (175) Regus Plc (46) 367 (97) Rentokil Initial (8) 4,178 (886) Saatchi & Saatchi SSI (119) 706 (67) SFI Group SUF (108) 178 (265) Skyepharma Plc SKP (140) 203 23 Smiths News Plc (124) 201 (92) Styles & Wood (57) 107 (9) Telewest Communications Plc TLWT (3,701) 7,579 (10,039) Thorn Emi Plc (2,266) 2,950 (582) Topps Tiles Plc (111) 195 18 UTC Group (12) 204 30 Virgin Mobile (392) 166 (176) Watson & Philip (120) 252 (290) ********* 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 * * *