/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/081024.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Friday, October 24, 2008, Vol. 9, No. 212 Headlines A U S T R I A B. BOJEVIC KEG: Claims Registration Period Ends November 11 BUCHHALTUNGSPLUS LLC: Claims Registration Period Ends Nov. 18 BULAN KEG: Claims Registration Period Ends November 12 CAR COSMETIC: Claims Registration Period Ends November 11 RUDOLF HESS: Claims Registration Period Ends November 5 G E R M A N Y GERUESTVERLEIH BAUSERVICE: Claims Registration Ends Oct. 28 HC BAU+SERVICE: Claims Registration Period Ends October 30 KDS IT-SERVICE: Claims Registration Period Ends October 30 KH UMWELTTECHNIK: Claims Registration Period Ends October 30 KRAGELOH BAUGESELLSCHAFT: Claims Registration Ends Oct. 30 L & S GMBH: Claims Registration Period Ends October 30 LOG SERV: Claims Registration Period Ends Oct. 28 MJS GMBH: Claims Registration Period Ends October 30 MOEBELMARKT EISENBERG: Claims Registration Period Ends Oct. 30 PRO HAUS SERVICE: Claims Registration Period Ends Oct. 30 RECUTEC GMBH: Claims Registration Period Ends Oct. 30 TUI AG: S&P Retains Watch Negative on BB- Corporate Credit Ratings VERITRADE GMBH: Claims Registration Period Ends Oct. 30 WEICHENRIEDER BAUUNTERNEHMUNG: Claims Registration Ends Oct. 30 WERKZEUG FORMEN: Claims Registration Period Ends Oct. 30 I R E L A N D PALMER SQUARE 2: S&P Junks Ratings on B-1, B-2, C Notes to CCC- TAGGART GROUP: Complies with Banks Request for Administration K A Z A K H S T A N AKTAU-MERKUR-2005 LLP: Creditors Must File Claims by Nov. 28 ASIA PROM: Creditors' Claims Deadline Slated for November 28 DAK LTD: Creditors' Claims Filing Period Ends November 28 JAMSHYT LLP: Creditors' Claims Due on November 28 KOSTANAI-O LTD LLP: Claims Registration Ends November 28 KURSI LLP: Creditors Must File Claims by November 28 SERVICE SARYKOL: Claims Deadline Slated for November 28 STROY TREST: Claims Filing Period Ends November 28 TURKSIB LLP: Creditors' Claims Due on November 28 YRYS LLP: Claims Registration Ends November 28 K Y R G Y Z S T A N TECH SYSTEM: Creditors Must File Claims by November 26 N E T H E R L A N D S * S&P Says New Legislation Won't Affect Dutch Covered Bond Ratings N O R W A Y SOLSTRAND AS: Files for Bankruptcy After Production Costs Soar R U S S I A CAR REPAIR: Tatarstan Bankruptcy Hearing Set Feb. 12, 2009 CRANE PLANT: Creditors Must File Claims by December 10 KRASNOYARSK-VZRYUV-PROM: Creditor Must File Claims by Nov. 10 MOBILE TELESYSTEMS: To Place Third RUR10 Billion Bond on Oct. 28 MODUL OJSC: Ryazanskaya Bankruptcy Hearing Set February 17 MOSCOW CAPITAL: Moody's Junks Currency Deposit Ratings to Caa2 NOVOLIPETSK STEEL: Gets Sued for Reneging on US$3.53 Bil. Deal RESOURCE-OIL LLC: Creditors Must File Claims by November 10 SITRONICS JSC: Announces New Appointments to Management Board SKHODNENSKAYA FURNITURE: Creditors Must File Claims by Nov. 10 SOTSGORBANK: S&P Changes Outlook to Neg; Holds B-/C Credit Ratings STRAZH-LASER LLC: Creditors Must File Claims by December 10 S P A I N * S&P Places Ratings on Various Spanish SMEs Under Negative Watch S W I T Z E R L A N D 3SIXTY PETROLEUM: Creditors Must File Proofs of Claim by Nov. 6 AC-SERVICE MANAGEMENT: Deadline to Claims Set Nov. 6 ALR TAI: Creditors Have Until Nov. 6 to File Claims BECADO LLC: Proofs of Claim Filing Deadline is Nov. 6 CASA CADPLANUNG: Creditors' Proofs of Claim Due by Nov. 6 CROWN ASSET: Nov. 7 Set as Deadline to File Claims IDL JSC: Creditors Must File Proofs of Claim by Nov. 7 T U R K E Y DOGAN YAYIN: Moody's Reviews Ba3 Ratings for Downgrade U K R A I N E KERAMIK OJSC: Creditors Must File Claims by October 29 KNIAZHY GRAD: Creditors Must File Claims by October 30 LVOV TORONTO: Creditors Must File Claims by October 26 MAVIS-SA LLC: Creditors Must File Claims by October 30 SHEVCHENKO AGRICULTURAL: Creditors Must File Claims by Oct. 26 SPRINT LLC: Creditors Must File Claims by October 29 U N I T E D K I N G D O M BARCLAYS PLC: Issues EUR3 Bil. Three-Year Bonds CASH4ALL LTD: Brings in Joint Administrators from KPMG KAUPTHING CAPITAL: Calls in Joint Administrators from KPMG KAUPTHING SINGER: Depositors Take Measures to Recover Money KCP II: Taps Smith & Williamson to Administer Assets KEYNOTE EDUCATIONAL: Appoints Liquidators from Baker Tilly LUCITE INTERNATIONAL: S&P Puts B Corp. Credit Rating on Watch Neg. METALEX ENGINEERING: Joint Liquidators Take Over Operations NEXTGEN TECHNICAL: Brings in Liquidators from Tenon Recovery PLASTECH MULTISEALS: Calls in Administrators from Baker Tilly QUADRANT EXHIBITIONS: Hires Liquidators from Mazars SAFEWELD LTD: Appoints Liquidators from Moore & Stephens WILLIAMS ALLOYS: Taps Joint Administrators from Deloitte * Downturn & Weak Economy Bad for UK Petrochemical Firms, S&P Says * Investment Pull-Backs Tip Europe into 3Q Recession, S&P Reports * Baltic States to Mirror Hungary's IMF Receivership * Euler Hermes Says 2008/2009 Outlook for Air Carriers Bleak ********* ============= A U S T R I A ============= B. BOJEVIC KEG: Claims Registration Period Ends November 11 ----------------------------------------------------------- Creditors owed money by KEG B. Bojevic (FN 243032a) have until Nov. 11, 2008, to file written proofs of claim to the court- appointed estate administrator: Mag. Clemens Richter Esteplatz 4 1030 Vienna Tel: 712 33 30 Fax: 712 33 30-30 E-mail: kanzlei@engelhart.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:45 a.m. on Nov. 25, 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. 19, 2008, (Bankr. Case No. 28 S 121/08k). BUCHHALTUNGSPLUS LLC: Claims Registration Period Ends Nov. 18 ------------------------------------------------------------- Creditors owed money by LLC Buchhaltungsplus (FN 291355p) have until Nov. 18, 2008, to file written proofs of claim to the court- appointed estate administrator: Dr. Erhard Hackl Hofgasse 7 4020 Linz Tel: 0732/776234, 776235 Fax: DW 22 E-mail: hackl.hatak@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 1:30 p.m. on Dec. 2, 2008, for the examination of claims at: The Land Court of Steyr Hall 7 Second Floor Steyr Austria Headquartered in St. Florian bei Linz, Austria, the Debtor declared bankruptcy on Sept. 18, 2008, (Bankr. Case No. 14 S 51/08k). BULAN KEG: Claims Registration Period Ends November 12 ------------------------------------------------------ Creditors owed money by KEG Bulan (FN 171416h) have until Nov. 12, 2008, to file written proofs of claim to the court-appointed estate administrator: Mag. Thomas Boechzelt Krottendorfer Gasse 4 8700 Leoben Austria Tel: 03842-48117 Fax: 03842-48117-11 E-mail: office@ra-ahb.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on Nov. 19, 2008, for the examination of claims at: The Land Court of Leoben Hall IV First Floor Leoben Austria Headquartered in Stainach, Austria, the Debtor declared bankruptcy on Sept. 18, 2008, (Bankr. Case No. 17 S 49/08m). CAR COSMETIC: Claims Registration Period Ends November 11 --------------------------------------------------------- Creditors owed money by LLC Car Cosmetic Automobile Repairs (FN 261184w) have until Nov. 11, 2008, to file written proofs of claim to the court-appointed estate administrator: Mag. Georg Rupprecht Hauptplatz 9-13 2500 Baden Austria Tel: 02252/86 580 Fax: 02252/86 5803 E-mail: rupprecht@lexacta.com Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Nov. 25, 2008, for the examination of claims at: The Land Court of Wiener Neustadt Room 15 Wiener Neustadt Austria Headquartered in Baden bei Vienna, Austria, the Debtor declared bankruptcy on Sept. 19, 2008, (Bankr. Case No. 11 S 100/08d). RUDOLF HESS: Claims Registration Period Ends November 5 ------------------------------------------------------- Creditors owed money by LLC Rudolf Hess (FN 193419s) have until Nov. 5, 2008, to file written proofs of claim to the court- appointed estate administrator: Dr. Eva-Maria Bachmann-Lang Opernring 8 1010 Vienna Austria Tel: 512 87 01-Serie Fax: 513 82 50 E-mail: bachmann.rae@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on Nov. 19, 2008, for the examination of claims at: The Trade court of Vienna Room 1606 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Sept. 18, 2008, (Bankr. Case No.4 S 132/08a). ============= G E R M A N Y ============= GERUESTVERLEIH BAUSERVICE: Claims Registration Ends Oct. 28 ----------------------------------------------------------- Creditors of GBC Geruestverleih Bauservice und Containerdienst GmbH have until Oct. 28, 2008, to register their claims with court-appointed insolvency manager Udo Feser. Creditors and other interested parties are encouraged to attend the meeting at 10:00 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 Frankfurt (Oder) Hall 401 Muellroser Chaussee 55 15236 Frankfurt (Oder) 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: Udo Feser Uhlandstrasse 165/166 10719 Berlin Germany The District Court of Frankfurt (Oder) opened bankruptcy proceedings against GBC Geruestverleih Bauservice und Containerdienst GmbH on Sept. 5, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: GBC Geruestverleih Bauservice und Containerdienst GmbH Richard-Sonnenburg-Str. 7 15295 Brieskow-Finkendheerd Germany HC BAU+SERVICE: Claims Registration Period Ends October 30 ---------------------------------------------------------- Creditors of HC Bau+Service GmbH have until Oct. 30, 2008, to register their claims with court-appointed insolvency manager Sebastian Nolte. 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 Erfurt Hall 15 Judicial Center Rudolfstr. 46 99092 Erfurt Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Sebastian Nolte Peterstr. 5 99084 Erfurt Germany The District Court of Erfurt opened bankruptcy proceedings against HC Bau+Service GmbH on Sept. 8, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: HC Bau+Service GmbH Boyneburgstrasse 5 99089 Erfurt Germany KDS IT-SERVICE: Claims Registration Period Ends October 30 ---------------------------------------------------------- Creditors of KDS IT-Service GmbH have until Oct. 30, 2008, to register their claims with court-appointed insolvency manager Michael W. Kuleisa. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Dec. 9, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of 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: Michael W. Kuleisa Gertrudenstrasse 3 20095 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against KDS IT-Service GmbH on Sept. 29, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: KDS IT-Service GmbH Jessenstrasse 4-6 22767 Hamburg Germany KH UMWELTTECHNIK: Claims Registration Period Ends October 30 ------------------------------------------------------------ Creditors of KH Umwelttechnik GmbH have until Oct. 30, 2008, to register their claims with court-appointed insolvency manager Rolf G. Pohlmann. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Dec. 11, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Munich Meeting Hall 102 Infanteriestr. 5 80097 Munich Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Rolf G. Pohlmann Rosental 6 80331 Munich Germany Tel: (089)548033-0 Fax: (089)548033-111 The District Court of Munich opened bankruptcy proceedings against KH Umwelttechnik GmbH on Sept. 2, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: KH Umwelttechnik GmbH Johann-Karg-Str. 30 85540 Haar Germany KRAGELOH BAUGESELLSCHAFT: Claims Registration Ends Oct. 30 ---------------------------------------------------------- Creditors of Krageloh Baugesellschaft mbH & Co. KG have until Oct. 30, 2008, to register their claims with court-appointed insolvency manager Dr. Ruediger Werres. Creditors and other interested parties are encouraged to attend the meeting at 11:30 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 Cologne Meeting Hall 142 First Floor Luxemburger Strasse 101 50939 Cologne Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Ruediger Werres Friesenplatz 17a 50672 Cologne Germany The District Court of Cologne opened bankruptcy proceedings against Krageloh Baugesellschaft mbH & Co. KG on Sept. 9, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Krageloh Baugesellschaft mbH & Co. KG Hansaring 61 50670 Cologne Germany L & S GMBH: Claims Registration Period Ends October 30 ------------------------------------------------------ Creditors of L & S GmbH & Co. KG have until Oct. 30, 2008, to register their claims with court-appointed insolvency manager Dietmar Penzlin. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on Dec. 4, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Itzehoe Hall 2 Theodor-Heuss-Platz 3 25524 Itzehoe 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: Dietmar Penzlin Rathausstrasse 2 20095 Hamburg Germany The District Court of Itzehoe opened bankruptcy proceedings against L & S GmbH & Co. KG on Sept. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: L & S GmbH & Co. KG Westermoeoeler Weg 25591 Ottenbuettel Germany LOG SERV: Claims Registration Period Ends Oct. 28 ------------------------------------------------- Creditors of Log Serv Logistic Service GmbH have until Oct. 28, 2008, to register their claims with court-appointed insolvency manager Dr. Stephan Laubereau. 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 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. Stephan Laubereau Trakehner Strasse 7-9 60487 Frankfurt/Main Germany Tel: 069/8509693-0 Fax: 069/8509693-29 The District Court of Frankfurt (Main) opened bankruptcy proceedings against Log Serv Logistic Service GmbH on Sept. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Log Serv Logistic Service GmbH Attn: Manfred Drinkuth, Manager Broennerstrasse 20 60313 Frankfurt am Main Germany MJS GMBH: Claims Registration Period Ends October 30 ---------------------------------------------------- Creditors of MJS GmbH have until Oct. 30, 2008, to register their claims with court-appointed insolvency manager Klaus Niemeyer. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Nov. 17, 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 Osnabrueck Hall N 301 Kollegienwall 10 49074 Osnabrueck Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Klaus Niemeyer Schillerstr. 20 49074 Osnabrueck Germany Tel: 0541/33 85 00 Fax: 0541/33 850-50 The District Court of Osnabrueck opened bankruptcy proceedings against MJS GmbH on Sept. 26, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: MJS GmbH Krahnstr. 35 49074 Osnabrueck Germany MOEBELMARKT EISENBERG: Claims Registration Period Ends Oct. 30 -------------------------------------------------------------- Creditors of MME Moebelmarkt Eisenberg GmbH have until Oct. 30, 2008, to register their claims with court-appointed insolvency manager J. Oehler. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on Dec. 9, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Gera Room 317 Rudolf-Diener-Str. 1 Gera 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: J. Oehler Willy-Brandt-Platz 1 99084 Erfurt Germany The District Court of Gera opened bankruptcy proceedings against MME Moebelmarkt Eisenberg GmbH on Oct. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: MME Moebelmarkt Eisenberg GmbH Greinerstrasse 2 07607 Eisenberg Germany PRO HAUS SERVICE: Claims Registration Period Ends Oct. 30 --------------------------------------------------------- Creditors of Pro Haus Service GmbH have until Oct. 30, 2008, to register their claims with court-appointed insolvency manager Dr. Rolf-Dieter Moenning. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on Dec. 11, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Dresden Hall D131 Olbrichtplatz 1 01099 Dresden Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Rolf-Dieter Moenning Heideparkstrasse 4 01099 Dresden Germany Web site: www.insolnet.de The District Court of Dresden opened bankruptcy proceedings against Pro Haus Service GmbH on Oct. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Pro Haus Service GmbH Meissner Str. 258 01445 Radebeul Germany Attn: Alexander Wolf, Manager Geboren 1964 Meissner Str. 258 01445 Radebeul Germany RECUTEC GMBH: Claims Registration Period Ends Oct. 30 ----------------------------------------------------- Creditors of Recutec GmbH Gesellschaft fuer Rekultivierungstechnologie have until Oct. 30, 2008, to register their claims with court-appointed insolvency manager Dr. Hubert Ampferl. Creditors and other interested parties are encouraged to attend the meeting at 10:15 a.m. on Nov. 25, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Straubing Room 216 Straubing Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Hubert Ampferl Galgenbergstrasse 2 93053 Regensburg Germany Tel: 0941/2807370 Fax: 0941/2807379 The District Court of Straubing opened bankruptcy proceedings against Recutec GmbH Gesellschaft fuer Rekultivierungstechnologie on Sept. 16, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Recutec GmbH Gesellschaft fuer Rekultivierungstechnologie Europaring 4 94315 Straubing Germany TUI AG: S&P Retains Watch Negative on BB- Corporate Credit Ratings ------------------------------------------------------------------ Standard & Poor's Ratings Services said that its 'BB-' long-term corporate credit ratings and all issue ratings on Germany-based tourism and shipping group TUI AG remain on CreditWatch with negative implications, where they were originally placed on March 19, 2008. This follows the announcement of the proposed sale of TUI's container shipping unit Hapag-Lloyd AG on Oct. 13, 2008. "The sale of Hapag-Lloyd will reduce TUI's capital intensity, but the group's overall business risk profile will weaken as a result of greater reliance on its cyclical and relatively low-margin tourism businesses," said S&P's credit analyst Philip Temme. "These units are currently strongly exposed to headwinds from economic weakness in TUI's major markets as well as event risk. The scale and diversity of TUI's tourism operations only partially mitigate these risk factors." The Hapag-Lloyd transaction, which is expected to close in January 2009, involves the sale of 100% of Hapag-Lloyd to a new vehicle for an enterprise value of EUR4.45 billion. The purchasing entity is 66.6%-owned by the Hamburg-based Albert Ballin KG consortium, with TUI AG taking a 33.3% stake in the new vehicle for EUR700 million. On closing of the transaction, TUI will receive net cash proceeds of EUR2 billion, at the same time disposing of EUR1.3 billion of Hapag-Lloyd debt, EUR75 million of Hapag-Lloyd pension liabilities, and EUR75 million of other Hapag-Lloyd financial liabilities. In the short term, the transaction will enable TUI to reduce balance sheet group net debt significantly, with pro forma net debt reducing to around EUR600 million from around EUR3.9 billion at year-end 2008. "Ratings remain on CreditWatch pending further clarification regarding TUI's likely use of transaction proceeds and medium-term financial policy," added Mr. Temme. "Transparency with respect to financial strategy is limited. The group's bonds require proceeds from the Hapag-Lloyd sale either to be reinvested or used to pay down debt within 360 days of the transaction closing." TUI has expressed strong interest in making further investments in its tourism division, while at the same time ruling out any immediate offer for the shares in TTP that it does not already control. Any eventual offer for TTP would likely require the use of most, if not all, of the Hapag-Lloyd sale proceeds. TUI has also expressed its willingness to give "appropriate consideration" to shareholders, although structural constraints would likely militate against large-scale shareholder returns. A further, although less likely, option is that the group may opt to pay down debt and to pursue an investment holding company strategy. S&P is seeking clarification from TUI to enable it to resolve the CreditWatch as soon as possible. To retain existing ratings, the company needs to demonstrate a clear and unequivocal commitment to pursue a financial policy consistent with its revised business risk profile, and with the 'BB-' rating category. At this stage, upgrade potential appears limited, but any downgrade would likely be limited to one notch. VERITRADE GMBH: Claims Registration Period Ends Oct. 30 ------------------------------------------------------- Creditors of Veritrade GmbH have until Oct. 30, 2008, to register their claims with court-appointed insolvency manager Karsten Toetter. Creditors and other interested parties are encouraged to attend the meeting at 9:20 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: Karsten Toetter Gertrudenstrasse 3 20095 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against Veritrade GmbH on Sept. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Veritrade GmbH Attn: Mirko Platz and Stefan Tramler, Managers Hongkongstrasse 3 - 5 20457 Hamburg Germany WEICHENRIEDER BAUUNTERNEHMUNG: Claims Registration Ends Oct. 30 --------------------------------------------------------------- Creditors of Weichenrieder Bauunternehmung Transportbeton GmbH have until Oct. 30, 2008, to register their claims with court- appointed insolvency manager Alexander Saponjic. Creditors and other interested parties are encouraged to attend the meeting at 10:05 a.m. on Nov. 20, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Regensburg Room 105 Augustenstr. 5 Regensburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Alexander Saponjic Bachstr. 6 84036 Landshut Germany Tel: 0871/94321-0 Fax: 0871-94321-50 The District Court of Regensburg opened bankruptcy proceedings against Weichenrieder Bauunternehmung Transportbeton GmbH on Sept. 11, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Weichenrieder Bauunternehmung Transportbeton GmbH Mainburger Str. 7 84094 Elsendorf Germany WERKZEUG FORMEN: Claims Registration Period Ends Oct. 30 -------------------------------------------------------- Creditors of WFV GmbH Werkzeug-, Formen- und Vorrichtungsbau have until Oct. 30, 2008, to register their claims with court-appointed insolvency manager Thomas Jacobs. 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 Halle (Saal) Hall 1.043 Judicial Center Thueringer Str. 16 06112 Halle Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Thomas Jacobs Tieckstrasse 3 04275 Leipzig Germany Tel: 0341/303850 Fax: 0341/3038511 The District Court of Halle (Saal) opened bankruptcy proceedings against WFV GmbH Werkzeug-, Formen- und Vorrichtungsbau on Aug. 31, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: WFV GmbH Werkzeug-, Formen- und Vorrichtungsbau Wilhelm-Franke-Strasse 3 06618 Naumburg Germany Attn: Dirk Weidemeier, Manager Adolf-von-Wenzel-Str. 11 06628 Bad Koesen Germany ============= I R E L A N D ============= PALMER SQUARE 2: S&P Junks Ratings on B-1, B-2, C Notes to CCC- --------------------------------------------------------------- Standard & Poor's Ratings Services has lowered and kept on CreditWatch with negative implications its credit ratings on the class A1, A2, A3, B, and C notes issued by Palmer Square 2 PLC. The 'AAA' credit ratings on the class X notes remain unaffected. The underlying portfolio in this transaction continues to experience negative rating migration as it contains U.S. collateralized debt obligations (CDOs) and prime and subprime residential mortgage-backed securities (RMBS) assets that have been placed on CreditWatch negative and/or have had their ratings lowered. This has led to an increase in the scenario default rates that S&P assumes for different rating scenarios. On Jan. 30, 2008, all of Palmer Square 2's rated notes were placed on CreditWatch negative to reflect the credit deterioration being experienced in the underlying portfolio. On April 2, the class A2, A3, B, and C notes were downgraded and kept on CreditWatch negative. Further rating actions were taken on June 26, when the class A1, A2, A3, B, and C notes were downgraded and kept on CreditWatch negative due to ongoing credit deterioration in the underlying portfolio. At that time, the class X notes were removed from CreditWatch negative. The rating actions taken to date also reflect revisions to S&P's recovery rate assumptions for certain CDOs. The revision has led to a significant fall in the tranches' breakeven default rates, as estimated in S&P's cash flow analysis. As a result, current credit enhancement is not sufficient to support existing ratings levels. Palmer Square 2 closed on Oct. 10, 2005 and is a cash flow CDO of asset-backed securities transaction. Ratings Lowered And Kept On CreditWatch Negative: Class To From ----- -- ---- A1-M-A A-/Watch Neg A+/Watch Neg A1-M-B A-/Watch Neg A+/Watch Neg A1-Q-A A-/Watch Neg A+/Watch Neg A1-Q-B A-/Watch Neg A+/Watch Neg A2-A BB/Watch Neg BBB/Watch Neg A2-B BB/Watch Neg BBB/Watch Neg A3-A B-/Watch Neg BB/Watch Neg A3-B B-/Watch Neg BB/Watch Neg B-1 CCC-/Watch Neg BB-/Watch Neg B-2 CCC-/Watch Neg BB-/Watch Neg C CCC-/Watch Neg B/Watch Neg TAGGART GROUP: Complies with Banks Request for Administration ------------------------------------------------------------- The Taggart Group of Companies have been placed under administration to comply with the requests of Bank of Ireland and Ulster Bank. The company owes the banks a total of EUR150 million, Barry O'Halloran of The Irish Times reports. Mr. Gareth Kelleher of Pricewaterhousecoopers has been appointed administrator to the Taggart's companies in Northern Ireland. Mr. Bill O'Riordain, a partner of Pricewaterhousecoopers in Dublin, was appointed as receiver in the Republic. Based on the report, the receiver in the Republic will dealing with EUR20 million debt, and relate to four sites in Kinnegad, Co Westmeath, Kinsealy, Dublin, Muff, Co Donegal and Trim, Co Meath. Two other Taggart developments in Trim and Naas are not affected. As of early 2007, the company has an estimated EUR860 million worth of land in Ireland, Britain and Europe. The report notes that Taggart had disclosed having a core workforce of 15, down from the 60 staff it employed last year. Last month, it was reported that talks aimed at getting Castleway Developments chairman, John McCann, to put EUR100 million into the group had failed. =================== K A Z A K H S T A N =================== AKTAU-MERKUR-2005 LLP: Creditors Must File Claims by Nov. 28 ------------------------------------------------------------ LLP Aktau-Merkur-2005 has declared liquidation. Creditors have until Nov. 28, 2008, to submit written proofs of claims to: LLP Aktau-Merkur-2005 Micro District 3, 113-1 Aktau Mangistau Kazakhstan ASIA PROM: Creditors' Claims Deadline Slated for November 28 ------------------------------------------------------------ LLP Asia Prom Style has declared liquidation. Creditors have until Nov. 28, 2008, to submit written proofs of claims to: LLP Asia Prom Style Karasai batyr Str. 12-8 Saryarka 010000, Astana Kazakhstan DAK LTD: Creditors' Claims Filing Period Ends November 28 -------------------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola has declared LLP Dak Ltd. insolvent. Creditors have until Nov. 28, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Akmola Room 228 Auelbekov Str. 139a Kokshetau Akmola Kazakhstan Tel: 8 (7162) 25-79-32 JAMSHYT LLP: Creditors' Claims Due on November 28 ------------------------------------------------- The Specialized Inter-Regional Economic Court of West Kazakhstan has declared LLP Jamshyt insolvent. Creditors have until Nov. 28, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of West Kazakhstan Komsomolskaya Str. 82 Uralsk West Kazakhstan Kazakhstan Tel: 8 (7112) 51-45-29 KOSTANAI-O LTD LLP: Claims Registration Ends November 28 -------------------------------------------------------- LLP Kostanai-O Ltd. has declared liquidation. Creditors have until Nov. 28, 2008, to submit written proofs of claims to: LLP Kostanai-O Ltd. Chehov Str. 105a Kostanai Kazakhstan KURSI LLP: Creditors Must File Claims by November 28 ---------------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola has declared LLP Kursi insolvent. Creditors have until Nov. 28, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Akmola Room 228 Auelbekov Str. 139a Kokshetau Akmola Kazakhstan Tel: 8 (7162) 25-79-32 SERVICE SARYKOL: Claims Deadline Slated for November 28 ------------------------------------------------------- LLP Vet Service Sarykol has declared liquidation. Creditors have until Nov. 28, 2008, to submit written proofs of claims to: LLP Vet Service Sarykol Barvinovsky Sarykolsky Kostanai Kazakhstan STROY TREST: Claims Filing Period Ends November 28 -------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan has declared LLP Rem Stroy Trest insolvent. Creditors have until Nov. 28, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of East Kazakhstan Voroshilov Str. 4-11 Ust-Kamenogorsk East Kazakhstan Kazakhstan Tel: 8 (7232) 55-55-48 TURKSIB LLP: Creditors' Claims Due on November 28 ------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan has declared LLP Turksib insolvent. Creditors have until Nov. 28, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of East Kazakhstan Voroshilov Str. 4-11 Ust-Kamenogorsk East Kazakhstan Kazakhstan Tel: 8 (7232) 55-55-48 YRYS LLP: Claims Registration Ends November 28 ---------------------------------------------- The Specialized Inter-Regional Economic Court of West Kazakhstan has declared LLP Yrys insolvent. Creditors have until Nov. 28, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of West Kazakhstan Komsomolskaya Str. 82 Uralsk West Kazakhstan Kazakhstan Tel: 8 (7112) 51-45-29 =================== K Y R G Y Z S T A N =================== TECH SYSTEM: Creditors Must File Claims by November 26 ------------------------------------------------------ LLC Tech System has shut down. Creditors have until Nov. 26, 2008, to submit written proofs of claim to: LLC Tech System Toktogul Str. 31-510 Bishkek Kyrgyzstan ===================== N E T H E R L A N D S ===================== * S&P Says New Legislation Won't Affect Dutch Covered Bond Ratings ------------------------------------------------------------------ In a published report, Standard & Poor's Ratings Services considers that the new Dutch covered bond legislation does not affect its ratings on Dutch covered bonds. The new legislation is principles based and does not address the enforceability of the underlying structures of these bonds. The law recognizes the general-law-based structure currently seen in existing Dutch covered bond programs S&P rates. The law came into force on July 1, 2008. By creating a specific legal framework, the main purpose of the law was, S&P understands, to allow for this type of covered bond to become compliant with two EU directives�Undertakings for Collective Investment in Transferable Securities (UCITS) and the Capital Requirements Directive (CRD)�through registration with De Nederlandsche Bank (DNB, the Dutch central bank). S&P understands that this new legal framework will also allow Dutch covered bonds to attract lower "haircuts" when used for European Central Bank (ECB) repo purposes. S&P expects this, and the new supervision by DNB, to increase the attractiveness of registered Dutch covered bonds for investors and bring the bonds to the same level playing field as other regulated covered bonds, e.g., in Germany or Ireland. =========== N O R W A Y =========== SOLSTRAND AS: Files for Bankruptcy After Production Costs Soar -------------------------------------------------------------- Norwegian shipyard Solstrand AS has filed for bankruptcy, blaming soaring production costs, Andy Pierce writes for TradeWinds. "This has been coming for some time because the contract prices are much lower than the production costs of the vessels," a spokesperson was quoted by TradeWinds as saying. "The owners and the banks won't finance it so there is no other way than bankruptcy." The spokesperson, TradeWinds relates, confirmed that Havyard, owned by the Saevik family, is considering taking full control of the yard, which currently has seven new buildings on its books, comprising three platform supply vessels (PSVs) and four fishing boats. Meanwhile, an insider revealed the yard is now a "going concern but there is still hope the company can be saved," Trade Winds notes. Citing company sources, TradeWinds discloses meetings are currently undergoing in Norway to address the situation. About Havyard The Havyard Group -- -- http://www.havyard.no/-- is a fully integrated shipbuilding enterprise. The group's head office is in Fosnavag, south of Alesund. About Solstrand Solstrand is 80% owned by the Havyard Group. =========== R U S S I A =========== CAR REPAIR: Tatarstan Bankruptcy Hearing Set Feb. 12, 2009 ---------------------------------------------------------- The Arbitration Court of Tatarstan will convene at 1:40 p.m. on Feb. 12, 2009, to hear bankruptcy supervision procedure on LLC Car Repair Plant Industrial Park. The case is docketed under Case No. A65�10132/2008-SG4�40. The Temporary Insolvency Manager is: V. Shevelev Post User Box 75 420021 Kazan Tatarstan Russia The Court is located at: The Arbitration Court of Tatarstan Office 29 Building 1 Kremlin Kazan Tatarstan Russia The Debtor can be reached at: LLC Car Repair Plant Naberezhny Chelny Tukayevskogo Tatarstan Russia CRANE PLANT: Creditors Must File Claims by December 10 ------------------------------------------------------ Creditors of LLC Crane Plant (Machinery-Producing Industry)(TIN 7420006375) have until Dec. 10, 2008, to submit proofs of claims to: A. Fazlyuyev Insolvency Manager Post User Box 220 450080 Ufa Bashkortostan Russia The Arbitration Court of Chelyabinskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A76-74/2008-34-10. The Debtor can be reached at: LLC Crane Plant Suvorova Str. 17 Chebarkul Russia KRASNOYARSK-VZRYUV-PROM: Creditor Must File Claims by Nov. 10 ------------------------------------------------------------- Creditors of OJSC Krasnoyarsk-Vzryuv-Prom (DrillingandBlastingOperations) (TIN 2461119820, PSRN 1052461052621) have until Nov. 10, 2008, to submit proofs of claims to: I. Nozdrin Temporary Insolvency Manager 78th Dobrovolcheskoy Brigady Str.14a/22 660077 Krasnoyarsk Russia The Arbitration Court of Krasnoyarskogo will convene on Dec. 24, 2008, to hear bankruptcy supervision procedure. The case is docketed under Case No. A33�10870/2008.. The Debtor can be reached at: OJSC Krasnoyarsk-Vzryuv-Prom Krasnoyarskiy Rabochiy Prospect 100b 660059 Krasnoyarsk Russia MOBILE TELESYSTEMS: To Place Third RUR10 Billion Bond on Oct. 28 ---------------------------------------------------------------- Mobile TeleSystems OJSC plans to place its third RUR10 billion bond with maturity in 2015 on Oct. 28, 2008. The coupons are to be paid semiannually. Lead Arrangers of the bond are Gazprombank, Raiffeisenbank, Sberbank and Troika Dialog. Funds raised through the placement will be used for general corporate needs. About Mobile TeleSystems Based in Moscow, OJSC Mobile TeleSystems -- http://www.mtsgsm.com/ -- provides wireless telecommunications services operator in Russia, Ukraine, Uzbekistan, Turkmenistan, Armenia, and Belarus. * * * Mobile TeleSystems continues to carry a Long-term Issuer Default rating of 'BB+', National Long-term rating of 'AA(rus)' and Short- term IDR of B from Fitch Ratings, with stable outlook. The ratings were assigned April 2008. Mobile TeleSystems also carries Ba2 Corporate Family and Probability-of-Default ratings from Moody's Investors Service, which says the outlook is positive. MODUL OJSC: Ryazanskaya Bankruptcy Hearing Set February 17 ---------------------------------------------------------- The Arbitration Court of Ryazanskaya will convene on Feb. 17, 2008, to hear bankruptcy supervision procedure on OJSC Modul(Production of ConstructionMetalStructures). The case is docketed under Case No. A54�3254/2008-S1. The Temporary Insolvency Manager is: S. Krivosheyin Post User Box 288 390044 Ryazan-44 Russia The Debtor can be reached at: OJSC Modul Zavodskaya Str. 5 Korablino Korablinskiy 391200 Ryazanskaya Russia MOSCOW CAPITAL: Moody's Junks Currency Deposit Ratings to Caa2 -------------------------------------------------------------- Moody's Investors Service has downgraded the long-term local and foreign currency deposit ratings of Moscow Capital Bank to Caa2 from B3 and placed the ratings on review for possible further downgrade. Moscow Capital's bank financial strength rating (BFSR) was also downgraded to E from E+. The bank's Not-Prime short-term local and foreign currency deposit ratings were affirmed. Concurrently, Moscow-based Moody's Interfax Rating Agency, which is majority-owned by Moody's, downgraded Moscow Capital's long- term national scale rating (NSR) to B3.ru from Baa3.ru and placed it on review for possible downgrade. According to Moody's and Moody's Interfax, the Caa2/Not Prime/E global scale ratings reflect Moscow Capital's global default and loss expectation, while the B3.ru national scale rating reflects the standing of the bank's credit quality relative to its domestic peers. "[The] rating action was prompted by the recent tightening of Moscow Capital's liquidity position and the bank's failures to process on-time client payments and withdrawals by individual depositors," explains Olga Ulyanova, a Moody's Assistant Vice President - Analyst and lead analyst for Moscow Capital. Moody's understands that Moscow Capital is trying to attract additional funding by arranging several interbank loans and re- negotiating with the borrowers the terms of a number of sizeable loans to ensure their early redemption. "However, while these steps may help the bank close liquidity gaps in the short term, they might not be sufficient to dramatically improve the bank's liquidity profile going forward," cautions Ms Ulyanova. Indeed, the bank is over-reliant on short-term customer funding, including individual deposits, which, in accordance with the Russian law, can be withdrawn at any time. Furthermore, Moscow Capital is exposed to long-term lending with a fairly high concentration in the real estate and construction sectors. According to Moody's, the review of Moscow Capital's ratings will focus on the bank's ability to improve its liquidity profile and acquire more stable and long-term funding. Furthermore, given the weakening credit quality of corporates in Russia, especially those involved in real estate and construction, Moody's will assess any resulting impact on Moscow Capital's loan book and financial fundamentals. Moody's previous rating action on Moscow Capital was implemented on 26 October 2007, when the rating agency assigned first-time ratings of B3/NP/E+/Baa3.ru to the bank. Domiciled in Moscow, Russia, Moscow Capital Bank reported total IFRS assets of US$985 billion, total shareholders' equity of US$92 million and a net income of US$20 million as at December 31, 2007. NOVOLIPETSK STEEL: Gets Sued for Reneging on US$3.53 Bil. Deal -------------------------------------------------------------- OAO Novolipetsk Steel (aka NLMK) is facing a lawsuit filed in Manhattan federal court by Carlyle Group LLC regarding a deal to purchase Carlyle-owned John Maneely Co., The Wall Street Journal reports. The report says the lawsuit alleges Novolipetsk breached its obligations to consummate the merger, which was set to close Sept. 29. When it failed to close, Novolipetsk told the buyout firm it would close the deal no later than Oct. 15, a court filing cited by The WSJ said. As reported in the Troubled Company Reporter-Europe on Aug. 15, 2008, Novolipetsk signed a definitive agreement to acquire John Maneely Company for US$3.53 billion on a debt free, cash free basis. John Maneely was acquired by Carlyle in March 2006 for US$568 million. According to The WSJ, instead of closing, Carlyle said Novolipetsk sought instead to renegotiate the terms of the merger agreement. The complaint discloses that in meetings between Oct. 2 and Oct. 15, Novolipetsk tried to reduce its purchase price, citing changes to financial markets, Bloomberg News relates. Bloomberg News notes Novolipetsk said on Oct. 15 that it expects "a slowdown in steel demand and the weakening of the pricing environment�" in the fourth quarter due to the global economic slump. Carlyle also accuses Novolipetsk of failing to use "commercially reasonable efforts" to secure financing for the deal, The WSJ adds. Based on the Aug. 15 TCR-Europe report, the transaction will be financed from available bank commitments, including the recently established US$1.6 billion Pre Export Finance (PXF) facility and a US$2.0 billion bridge commitment provided by Merrill Lynch, Deutsche Bank and Societe Generale. Merrill Lynch served as the exclusive financial advisor and Debevoise & Plimpton is the legal counsel to NLMK. JP Morgan, Goldman Sachs and GMP Securities provided financial advice to John Maneely Company and Latham & Watkins is the legal counsel. About John Maneely Company Headquartered in Beachwood, Ohio, John Maneely Company is the largest independent tubular manufacturer in North America, with the most diverse product platform in the North American pipe and tube industry. In the 12 months ended June 30, 2008, John Maneely Company shipped 2.1 million tons of pipe and generated revenue of US$2.4 billion and EBITDA of US$485 million. About Novolipetsk Steel Headquartered in Lipetsk, Russia, OAO Novolipetsk Steel -- http://www.nlmksteel.com/-- manufactures pig iron, slabs, hot- rolled steel, and a variety of value-added steel products, such as cold-rolled sheet, electrical steel and other specialty flat products. The group also operates in Denmark and Japan. The group entered the Danish steel market in the first quarter of 2006 by acquiring a 100% stake at DanSteel A/S. * * * As reported in the Troubled Company Reporter-Europe on Aug. 18, 2008, Fitch Ratings affirmed OAO Novolipetsk Steel's ratings at Long-term Issuer Default 'BB+', Short-term IDR 'B' and National 'AA(rus)'. The Outlooks on the Long-term IDR and National Long- term rating are Stable. RESOURCE-OIL LLC: Creditors Must File Claims by November 10 ----------------------------------------------------------- Creditors of LLC Resource-Oil have until Nov. 10, 2008, to submit proofs of claims to: T. Kraynovoy Insolvency Manager Apt. 36 Nizhegorodskaya Str.10 109029 Moscow Russia The Arbitration Court of Vladimirskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A11-7668/2008-K1-211B. The Debtor can be reached at: LLC Resource-Oil Office 1227 Studenaya Gora Str. 36a 600001 Vladimir Russia SITRONICS JSC: Announces New Appointments to Management Board ------------------------------------------------------------- JSC Sitronics has announced the decisions made at its Board of Directors' meeting held on Oct. 22, 2008. The Board of Directors approved the appointment of Mr. Oksana Kovalevskaya, Vice President for Strategy, to the Group's Management Board. Sitronics' Management Board is composed of: -- Sergey Aslanian - President of SITRONICS, and Chairman of the Management Board -- Marina Zabolotneva - Chief Financial Officer -- Gennady Krasnikov - Head of SITRONICS Microelectronic Solutions -- Alexander Krasovsky - Vice President for Sales and Marketing -- Irina Lanina - Vice President for Corporate Communications -- Oksana Kovalevskaya - Vice President for Strategy -- Mikhail Minkovsky - Vice President for New Technologies -- Konstantin Khachaturov - Vice President for Corporate Development -- Pavel Pavlovsky - Vice President, Head of SITRONICS Telecom Solutions -- Oleg Sherbakov - Vice President for Corporate Property -- Alexandros Manos - CEO of INTRACOM TELECOM -- Sergei Urezchenko - Vice President, Head of SITRONICS Consumer Services and Products Division -- Vladimir Yasinsky - Head of SITRONICS Information Technology Evgeny Utkin, member of the Board of Directors, was elected Head of the Audit Committee. In addition, the Board of Directors approved the preliminary terms of a loan agreement with Dresdner Bank AG or its affiliated party. About JSC Sitronics Headquartered in Moscow, Russia, JSC Sitronics (LSE: SITR) -- http://www.sitronics.com/-- provides telecommunications solutions, IT solutions and microelectronic solutions in the CIS region with a rapidly growing presence in other EEMEA markets. Sistema controls the company. * * * JSC Sitronics still carries a 'B-' long-term issuer default rating from Fitch with stable outlook. SKHODNENSKAYA FURNITURE: Creditors Must File Claims by Nov. 10 -------------------------------------------------------------- Creditors of CJSC Skhodnenskaya Furniture Items Factory (Wood- working Industry) have until Nov. 10, 2008, to submit proofs of claims to: I. Agarev Temporary Insolvency Manager Post User Box 45 123290 Moscow Russia The Arbitration Court of Moskovskaya commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. A41-16798/08. The Debtor can be reached at: CJSC Skhodnenskaya Furniture Items Factory Skhodnya Russia SOTSGORBANK: S&P Changes Outlook to Neg; Holds B-/C Credit Ratings ------------------------------------------------------------------ Standard & Poor's Ratings Services has revised its outlook on Russia-based SOTSGORBANK 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 affirmed at 'ruBBB-'. "The outlook revision reflects the difficult operating environment that is placing pressure on the liquidity and asset quality of all Russian banks, including SOTSGORBANK," said S&P's credit analyst Victor Nikolskiy. The ratings reflect the bank's concentrations in lending, relatively limited customer franchise, weak funding diversification, and tight reserve cushion amid the ongoing Russian financial market turbulence. Unfavorable market conditions are pressuring the bank's near-term growth prospects, asset quality, and profitability. These factors are partially mitigated by the bank's adequate capitalization and management, and its limited exposure to market risk. The bank's improved capitalization, stable management team, and limited exposure to market risk are positive elements for withstanding the current financial turmoil. On June 30, 2008, the bank had total assets of US$654 million. The ratings reflect the bank's stand-alone credit quality and do not include any uplift for extraordinary external support. "The outlook is negative because of the potential negative impact of the difficult operating environment on the bank's liquidity position and financial performance," said Mr. Nikolskiy. The outlook could be revised back to stable if the bank maintains sufficient liquidity, and if loan quality and financial performance remain satisfactory. S&P sees very limited potential ratings upside until the Russian capital and financial markets fully stabilize. The ratings could be lowered if the deterioration in asset quality proves to be significant or if liquidity considerably weakens. STRAZH-LASER LLC: Creditors Must File Claims by December 10 ----------------------------------------------------------- Creditors of LLC Strazh-Laser (Laser Metalworking) have until Dec. 10, 2008 to submit proofs of claims to: N. Prilepin Insolvency Manager Post User Box 30 123308 Moscow Russia The Arbitration Court of Moscow commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A41-3513/08. The Debtor can be reached at: LLC Strazh-Laser Zavodskaya Str. Istra-2 143500 Moskovskaya Russia ========= S P A I N ========= * S&P Places Ratings on Various Spanish SMEs Under Negative Watch ----------------------------------------------------------------- Standard & Poor's Ratings Services has placed on CreditWatch with negative implications its credit ratings on 12 junior notes in 10 Spanish small to midsize enterprise (SME) transactions. The CreditWatch placements follow an initial analysis of the performance of all Spanish SME deals that S&P rates. The current collateral performance has highlighted factors that have increased the possibility of negative rating actions for certain junior classes. The collateral in these transactions comprises loans to Spanish SMEs originated by Caja de Ahorros de Valencia, Castellon y Alicante (Bancaja), Banco Espanol de Credito S.A.(Banesto), Bankinter S.A., Banco Bilbao Vizcaya Argentaria S.A. (BBVA), Caja de Ahorros y Pensiones de Barcelona (CAIXA), Caja de Ahorros y Monte de Piedad de Madrid (Caja Madrid), Banco Popular Espa�ol S.A, Banco Santander S.A., and Caixa D'Estalvis de Terrassa (Caixa Terrassa). S&P is also keeping on CreditWatch negative nine junior classes of notes in six transactions originated by Banco Pastor S.A. and Caja de Ahorro del Mediterraneo (CAM) and the class B and C notes issued by FTPYME Bancaja 6, Fondo de Titulizacion de Activos. Of the 23 classes currently on CreditWatch negative in the sector, three are in the 'A' category, 14 are in the 'BBB' category, and six are rated 'BB' or below. Since the beginning of this year, S&P noted a steeper increase in arrears than previously observed. Given the current macroeconomic environment in Spain, the rating agency believes this growth will continue ever more rapidly. If S&P assumes a sufficient rollover of long-term arrears into ultimate default, credit support levels may be insufficient to maintain current ratings. All transactions where the loans to Spanish SMEs have been originated by the above-mentioned originators have been considered in this review and all other ratings in the sector currently remained unchanged. S&P will conduct a deeper analysis of these evolving trends and the potential effect on borrower performance of the current Spanish economic environment. This analysis will encompass a full cash flow and credit analysis, focusing on, among other factors, concentrations and correlations within the real estate sector. S&P will be requesting full loan-level data from each originator and, in its analysis, the agency will take into account the quality and quantity of the information received in order to asses any concerning factors. 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: FTPYME Bancaja 3, Fondo de Titulizacion de Activos -- EUR900 Million Floating-Rate Notes D BBB-/Watch Neg BBB- Fondo de Titulizacion de Activos PYMES Banesto 2 -- EUR1 Billion Floating-Rate Notes C BBB/Watch Neg BBB BBVA-6 FTPYME Fondo de Titulizacion de Activos -- EUR1.5 Billion Floating-Rate Notes C BBB-/Watch Neg BBB- IM GRUPO BANCO POPULAR FTPYME II, Fondo de Titulizacion de Activos -- EUR2.039 Billion Floating-Rate Notes D BBB/Watch Neg BBB IM GRUPO BANCO POPULAR FTPYME I, Fondo de Titulizacion de Activos -- EUR2.03 Billion Floating-Rate Notes D BBB/Watch Neg BBB IM BANCO POPULAR FTPYME 1, Fondo de Titulizacion de Activos -- EUR2 Billion Floating-Rate Notes C BBB/Watch Neg BBB IM SABADELL EMPRESAS 1, Fondo de Titulizacion de Activos -- EUR1 Billion Floating-Rate Notes C BBB/Watch Neg BBB GC FTPYME SABADELL 6, Fondo de Titulizacion de Activos -- EUR1 Billion Floating-Rate Notes C BBB/Watch Neg BBB Fondo de Titulizacion de Activos Santander Empresas 4 -- EUR3,586 Million Floating-Rate Notes D BBB/Watch Neg BBB E BB-/Watch Neg BB- Fondo de Titulizacion de Activos Santander Empresas 3 -- EUR3,545.5 Million Floating-Rate Notes D BBB/Watch Neg BBB E BB/Watch Neg BB Ratings kept on CreditWatch Negative: FTPYME Bancaja 6, Fondo de Titulizacion de Activos -- EUR1.028 Billion Floating-Rate Notes B A-/Watch Neg C BB/Watch Neg TDA, Empresas Pastor 5, Fondo de Titulizacion de Activos -- EUR550 Million Asset-Backed Floating-Rate And EUR18.7 Million Floating-Rate Notes C BB/Watch Neg GC FTPYME PASTOR 4 Fondo de Titulizacion de Activos -- EUR630 Million Asset-Backed Floating-Rate Notes C A/Watch Neg D BBB/Watch Neg E BB/Watch Neg EdT FTPYME PASTOR 3, FONDO DE TITULIZACION DE ACTIVOS -- EUR520 Million Floating-Rate Notes C BB/Watch Neg EMPRESAS HIPOTECARIO TDA CAM 5, Fondo de Titulizacion de Activos -- EUR1,430.8 Million Floating-Rate Notes B A-/Watch Neg C BBB-/Watch Neg FTPYME TDA CAM 4, Fondo de Titulizacion de Activos -- EUR1.5 Billion Floating-Rate Notes C BBB-/Watch Neg Empresas Hipotecario TDA CAM 3, Fondo de Titulizacion de Activos -- EUR750 Million Mortgage-Backed Floating-Rate Notes C BBB/Watch Neg ===================== S W I T Z E R L A N D ===================== 3SIXTY PETROLEUM: Creditors Must File Proofs of Claim by Nov. 6 --------------------------------------------------------------- Creditors owed money by LLC 3Sixty Petroleum Services (PS360) are requested to file their proofs of claim by Nov. 6, 2008, to: Christoph Langenauer Hinterwies 42 9042 Speicher Switzerland The company is currently undergoing liquidation in Speicher. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Sept. 16, 2008. AC-SERVICE MANAGEMENT: Deadline to Claims Set Nov. 6 ---------------------------------------------------- Creditors owed money by JSC AC-Service Management are requested to file their proofs of claim by Nov. 6, 2008, to: Hardstrasse 73 5430 Wettingen Switzerland The company is currently undergoing liquidation in Wettingen. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Sept. 10, 2008. ALR TAI: Creditors Have Until Nov. 6 to File Claims --------------------------------------------------- Creditors owed money by LLC ALR Tai Chi Chuan Schule are requested to file their proofs of claim by Nov. 6, 2008, to: Thomas Riedi Zwydenweg 16 6052 Hergiswil Switzerland The company is currently undergoing liquidation in Hergiswil NW. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Sept. 19, 2008. BECADO LLC: Proofs of Claim Filing Deadline is Nov. 6 ----------------------------------------------------- Creditors owed money by LLC Becado are requested to file their proofs of claim by Nov. 6, 2008, to: Dolder Beat and Carola Stegmattstrasse 11 3628 Uttigen Switzerland The company is currently undergoing liquidation in Uttigen. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Sept. 2, 2008. CASA CADPLANUNG: Creditors' Proofs of Claim Due by Nov. 6 --------------------------------------------------------- Creditors owed money by LLC CASA Cadplanung are requested to file their proofs of claim by Nov. 6, 2008, to: Martin Wanzenried Meienweg 8 3400 Burgdorf Switzerland The company is currently undergoing liquidation in Koniz. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on May 29, 2008. CROWN ASSET: Nov. 7 Set as Deadline to File Claims -------------------------------------------------- Creditors owed money by JSC Crown Asset Management are requested to file their proofs of claim by Nov. 7, 2008, to: JSC Alpina Treuhand Seestrasse 91 6052 Hergiswil NW Switzerland The company is currently undergoing liquidation in Risch. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Aug. 20, 2008. IDL JSC: Creditors Must File Proofs of Claim by Nov. 7 ------------------------------------------------------ Creditors owed money by JSC IDL are requested to file their proofs of claim by Nov. 7, 2008, to: Company Rawp Raschle Lindenstrasse 137 9016 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 June 12, 2008. =========== T U R K E Y =========== DOGAN YAYIN: Moody's Reviews Ba3 Ratings for Downgrade ------------------------------------------------------ Moody's Investors Service has placed the Ba3 foreign and domestic currency Corporate Family Ratings and the Ba3 Probability of Default Ratings of Dogan Yayin Holding A.S. on review for possible downgrade. At the same time, DYH's Baa1.tr Turkish National Scale Ratings were also placed on review for possible downgrade. The rating action follows a detailed assessment of DYH's results for H1 2008 together with the review of management's preliminary guidance, and reflects Moody's view that the Group's new venture investments in broadcasting and retail segments which began in 2007 and continued into H2 2008, together with additional investments, such as in the directory business Katalog-Bravoo, will continue to absorb a far greater proportion of the group's cash generation and debt capacity than had been originally assumed when the ratings were assigned; such that leverage as measured by Net debt/EBITDA (as adjusted by Moody's) is likely to remain well above Moody's original expectations and guidance of 3x at the end of 2008 with Net Debt/LTM EBITDA (as reported by the company), now standing at around 4x as of June 2008. Looking prospectively into 2009, although Moody's acknowledges that EBITDA may settle at more normalized levels, Moody's cautions that, from a leverage standpoint, the prospects of an improvement are likely to be rather limited considering our expectation of potentially weaker advertising market growth in 2009, together with Moody's view that, associated with the Group's strategy to diversify beyond its core markets, DYH is likely to continue to invest in its own business as well as seek other inorganic growth potentials as opportunities arise. Additionally, the sharp depreciation of the Turkish currency (YTL) against the US dollar further undermines the group's financial risk profile, as a meaningful share of the group's net debt is denominated in US dollars. Therefore, Moody's believes there is a high probability of at least a one-notch downgrade. The rating review will focus on DYH's operational and ad market outlook for the remainder of 2008 and into 2009 together with the Group's cost-cutting plans, and the resultant impacts on the group's free cash flow generation capacity, its credit metrics (i.e. Debt/EBITDA) and its liquidity profile - particularly at DoganTV - over the next 12 to 18 months. Moody's aims to conclude the review promptly following the publication of DYH's Q3 2008 results which will be announced on November 13, 2008. Moody's notes that this rating action is not triggered by the Capital Markets Board of Turkey's recent suggestion relating to the Group companies' procurement policies relating to newsprint being sourced through affiliated companies owned by the Dogan Family, and does not incorporate any potential financial impact -- should there be any - at this stage. Nevertheless, Moody's notes that adverse regulatory actions could negatively impact the market positioning of the company. The last rating action was implemented on October 25, 2007, when Moody's assigned Ba3 foreign currency and Ba3 domestic currency Corporate Family Ratings, a Turkish National Scale Rating of Baa1.tr and a Probability of Default Rating of Ba3 to DYH. Headquartered in Istanbul, Turkey, DYH is the country's leading media conglomerate. Dogan Sirketler Grubu Holding A.S. owns 63% of DYH's equity, while 34% of DYH's shares are publicly quoted on the Istanbul Stock Exchange; the remainder is owned by the Dogan Family. In 2007, the Group reported revenues of YTL2.6 billion and EBITDA of YTL222 million under the financial reporting standards issued by Turkey's Capital Markets Board. As of October 21, 2008, DYH had a market capitalization of YTL606 million. ============= U K R A I N E ============= KERAMIK OJSC: Creditors Must File Claims by October 29 ------------------------------------------------------ Creditors of OJSC Keramik (code EDRPOU 05466967) have until Oct. 29, 2008, to submit proofs of claim to: O. Zemnitsa Liquidator P.O. Box 1797 49027 Dnepropetrovsk Ukraine Tel: 8(056)744-21-37 The Economic Court of Dnipropetrovsk commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 16, 2008. The case is docketed as B 40/25-08. The Economic Court of Dnipropetrovsk Kujbishev Str. 1a 49600 Dnipropetrovsk Ukraine The Debtor can be reached at: OJSC Keramik Karl Liebkneht Str. 128 Nikopol 53200 Dnepropetrovsk Ukraine KNIAZHY GRAD: Creditors Must File Claims by October 30 ------------------------------------------------------ Creditors of LLC Production-Distributor Company Kniazhy Grad (code EDRPOU 31119261) have until Oct. 30, 2008, to submit proofs of claim to: LLC Ros Consult Liquidator/Insolvency Manager Ap. 10 Mayakovsky Avenue 32-d 02222 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 24, 2008. The case is docketed as B 11/263-08. The Economic Court of Kiev Komintern Str. 16 01032 Kiev Ukraine The Debtor can be reached at: LLC Production-Distributor Company Kniazhy Grad Svetilnia Brovary District Kiev Ukraine LVOV TORONTO: Creditors Must File Claims by October 26 ------------------------------------------------------ Creditors of LLC Lvov-Toronto-Contract Subsidiary Company Ukrskoledrev Ltd (code EDRPOU 31228433) have until Oct. 26, 2008, to submit proofs of claim to: Aleksey Sidorak Liquidator Lvov Str. 83/13 Striy 82400 Lvov Ukraine The Economic Court of Lvov commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 8, 2008. Declaration of September 8, 2008. The case is docketed as 29/98. The Economic Court of Lvov Lichakivska Str. 81 79010 Lvov Ukraine The Debtor can be reached at: LLC Lvov-Toronto-Contract Subsidiary Company Ukrskoledrev Ltd Prince Sviatoslav Str. 3 Skole 82600 Lvov Ukraine MAVIS-SA LLC: Creditors Must File Claims by October 30 ------------------------------------------------------ Creditors of LLC Mavis-Sa (code EDRPOU 33130243) have until Oct. 30, 2008, to submit proofs of claim to: I. Chorny Liquidator/Insolvency Manager P.O. Box 89 01024 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 10, 2008. The case is docketed as B 11/239-08. The Economic Court of Kiev Komintern Str. 16 01032 Kiev Ukraine The Debtor can be reached at: LLC Mavis-Sa Kiev Highway 1 Ivankov Kiev Ukraine SHEVCHENKO AGRICULTURAL: Creditors Must File Claims by Oct. 26 -------------------------------------------------------------- Creditors of Shevchenko Agricultural LLC (code EDRPOU 00854481) have until Oct. 26, 2008, to submit proofs of claim to: Galina Mirchuk Liquidator A. Sheptitsky Str. 25A Striy 82400 Lvov Ukraine The Economic Court of Lvov commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 9, 2008. The case is docketed as 8/112. The Economic Court of Lvov Lichakivska Str. 81 79010 Lvov Ukraine The Debtor can be reached at: The Economic Court of Lvov Lichakivska Str. 81 79010 Lvov Ukraine The Debtor can be reached at: Shevchenko Agricultural LLC Orov Skole District 82610 Lvov Ukraine SPRINT LLC: Creditors Must File Claims by October 29 ---------------------------------------------------- Creditors of LLC Sprint (code EDRPOU 32868389) have until Oct. 29, 2008, to submit proofs of claim to: The Economic Court of Kharkov Derzhprom 8th Entrance Svoboda Square 5 61022 Kharkov Ukraine The Economic Court of Kharkov commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 15, 2008. The case is docketed as B-39/97-08. The Debtor can be reached at: LLC Sprint Ap. 2 Kirov Str. 4 Glybokoye 62410 Kharkov Ukraine =========================== U N I T E D K I N G D O M =========================== BARCLAYS PLC: Issues EUR3 Bil. Three-Year Bonds ----------------------------------------------- Barclays PLC sold EUR3 billion (US$3.87 billion) of three-year bonds priced at midswaps plus 25 basis points, becoming the first bank in the United Kingdom to issue a bond under the government's new debt-guarantee plan, The Wall Street Journal and Reuters report. The offer attracted more than EUR4 billion of orders from investors, according to IFR Markets, a service of Thomson Reuters. According to Reuters, Barclays Capital was sole bookrunner on the deal, backed up by joint leads HSBC, Lloyds, RBS, Santander and Standard Chartered. The deal could boost the confidence of other U.K. banks that are considering taking advantage of the new guarantee plan, analysts cited by The WSJ said. "This establishes a high-quality, liquid benchmark," Mark Geller, head of financial institutions syndicate at Barclays Capital in London, was cited by The WSJ as saying. GBP6.5 Bil. Capital As reported in the Troubled Company Reporter-Europe, Barclays said in an October 13 press statement that it will raise in excess of GBP6.5 billion of Tier 1 Capital which will result in a pro forma Tier 1 Capital ratio as at June 30, 2008 of over 11%. The additional capital, Barclays said, will be raised from investors without calling on the Government funding which has been offered to U.K. Banks. As part of the issuance of shares, Barclays has agreement in principle with an existing shareholder to contribute GBP1 billion in new capital, to be allocated between the stated component parts. No Dividend Payments for 2008 In the light of the new capital ratios agreed with the FSA and in recognition of the need to maximize capital resources in the current economic climate, the Board of Barclays has concluded that it would not be appropriate to recommend the payment of a final dividend for 2008. This dividend, amounting to GBP2 billion, would otherwise have been payable in April 2009. Barclays intends to resume dividend payments in the second half of 2009. About Barclays PLC Barclays PLC -- http://www.barclays.co.uk/-- is a global financial services provider engaged in retail and commercial banking, credit cards, investment banking, wealth management and investment management services. The Company, along with its subsidiaries, operates through six business segments: UK Banking, Barclaycard, International Retail and Commercial Banking, Barclays Capital, Barclays Global Investors and Barclays Wealth. In April 2008, Barclays Capital acquired the assets of PowerLytix LLC, a provider of market data analysis. In July 2008, Barclays PLC completed the acquisition of 100% of Expobank, a Russian retail and commercial bank. Expobank became part of Barclays Global Retail and Commercial Banking Emerging Markets business. In August 2008, Barclays PLC started operations in Pakistan. On September 22, 2008, Barclays PLC completed the acquisition of Lehman Brothers North American investment banking and capital markets operations and supporting infrastructure. CASH4ALL LTD: Brings in Joint Administrators from KPMG ------------------------------------------------------ Andrew Stephen McGill and Mark Jeremy Orton of KPMG LLP were appointed joint administrators of Cash4all Ltd. (Company Number 05302817) on Oct. 8, 2008. The company can be reached at: Cash4all Ltd. c/o KPMG LLP 2 Cornwall Street Birmingham England KAUPTHING CAPITAL: Calls in Joint Administrators from KPMG ---------------------------------------------------------- Andrew Stephen McGill and Mark Jeremy Orton of KPMG LLP were appointed joint administrators of Kaupthing Capital Partners II Master, L.P. Inc. (Company Number 929) on Oct. 9, 2008. The company can be reached at: Kaupthing Capital Partners II Master, L.P. Inc. First Floor Dorey Court Admiralty Park St Peter Port Guernsey GY1 6HJ Channel Islands KAUPTHING SINGER: Depositors Take Measures to Recover Money ----------------------------------------------------------- Mark Atherton at Times Online reported Monday that the Kaupthing Isle of Man Depositors Action Group was presenting a petition to the governments in the UK, Isle of Man and Iceland in an attempt to recover their money. The petition alleged the UK Government has "acted irresponsibly, unfairly and in a discriminatory manner towards depositors," Times Online disclosed. "The UK Government is misleading the general public by posturing itself as the rescuer of all British savers. This is fundamentally untrue. While British mainland savers have had their deposits protected, savers using British offshore banks have been left to fend for themselves," a spokesman from the group was quoted by Times Online as saying. The group said that while Isle of Man has a deposit protection scheme covering up to GBP50,000, the Isle of Man Government will simply not be able to afford to compensate so many savers as GBP2 million of government funds were invested with Kaupthing Singer & Friedlander in the Isle of Man, Times Online noted. The petition, Times Online added, also demands that Prime Minister Gordon Brown confirms the UK Government is seeking the return of 100% of all deposits held by the bank. The group alleged that the UK Government's actions in freezing Icelandic assets ultimately led to the collapse of the bank, the Times Online disclosed. According to Times Online, around 7,000 savers with GBP860 million worth of deposits are at risk of losing their life savings. Times Online in a report on Tuesday said Landsbanki Guernsey savers together with Kaupthing Isle of Man are the only depositors who thus far have not been given assurances that their deposits are 100% safe. Liquidation As reported in the TCR-Europe, the Financial Services Commission, on Oct. 9, 2008, confirmed that an Order has been made by the Courts appointing Michael Simpson of PricewaterhouseCoopers, Chartered Accountants as Liquidator provisionally of Kaupthing Singer & Friedlander (Isle of Man). The Petition for the winding up of the company has been adjourned until Friday, Oct. 24, 2008. The Commission has suspended the banking license of Kaupthing Singer & Friedlander (Isle of Man) with immediate effect. The demise of Kaupthing Singer & Friedlander (Isle of Man) was heavily affected by the inability of the parent bank to provide continuing support to the local business. Exactly the same issue appears to have affected the UK sister banking entity. Iceland is experiencing severe economic difficulties and this appears to have significantly contributed to problems at the parent bank, Kaupthing Bank hf. The consequential loss of confidence locally meant that the bank was unable to meet the prospect of sudden and exceptional withdrawals without continuing support which did not materialize. About Kaupthing Bank Headquarted in Reykjavik, Iceland, Kaupthing Bank -- http://www.kaupthing.com-- is engaged in the provision of financial services, such as private banking, asset management, pension services, brokerage services, investment banking, as well as corporate and retail banking. The Bank's offer is targeted at companies, institutional investors and individuals. The Bank is operational in thirteen countries, including Luxembourg, Switzerland, the Nordic countries, the United Kingdom and the United States. The main subsidiaries include Kaupthing Singer & Friedlander and FIH Erhvervsbank. About Kaupthing Singer & Friedlander (Isle of Man) Kaupthing Singer & Friedlander (Isle of Man) Ltd. -- http://www.kaupthingsingers.co.im/-- is a subsidiary of Iceland-based Kaupthing Bank hf in the United Kingdom. KCP II: Taps Smith & Williamson to Administer Assets ---------------------------------------------------- Anthony Cliff Spicer and Henry Anthony Shinners of Smith & Williamson Ltd. were appointed joint administrators of KCP II (GP) Ltd. (Company Number 06140282) on Oct. 9, 2008. The company can be reached at: KCP II (GP) Ltd. One Hanover Square London W1S 1AX England KEYNOTE EDUCATIONAL: Appoints Liquidators from Baker Tilly ---------------------------------------------------------- Lindsey Cooper and Adrian Allen of Baker Tilly Restructuring and Recovery LLP were appointed joint liquidators of Keynote Educational Ltd. on Oct. 8, 2008, for the creditors' voluntary winding-up proceeding. The company can be reached at: Keynote Educational Ltd. c/o Baker Tilly Restructuring & Recovery LLP Brazennose House Lincoln Square Manchester M2 5BL England LUCITE INTERNATIONAL: S&P Puts B Corp. Credit Rating on Watch Neg. ------------------------------------------------------------------ Standard & Poor's Ratings Services has placed on CreditWatch with negative implications its 'B' long-term corporate credit rating on U.K.-based methyl methacrylate monomers producer and distributor Lucite International Group Holdings Ltd. At the same time, the senior secured 'B+' debt ratings on the bank loans issued by Lucite International Finco Ltd. and Lucite International U.S. Finco LLC were also placed on CreditWatch with negative implications. The recovery rating on the bank loans is unchanged at '2', indicating S&P's expectation of substantial (70%-90%) recovery for senior secured lenders in the event of a payment default. "The CreditWatch placement reflects Standard & Poor's concerns about the effect of the current macroeconomic environment on Lucite's operating performance and liquidity," said S&P's credit analyst Sophia Dedemadis. With more than 60% of revenues coming from the hard-hit North American and weakening European markets, the company is facing declining demand. The forced shutdown of the Texas facility as a result of hurricanes in the Gulf of Mexico is also expected to negatively affect results in the second half of the year. S&P expects the difficult market conditions to continue well into 2009. Furthermore, significant pressures on raw material costs in the chemicals industry have persisted during the second half of 2008. S&P expects that challenging market conditions combined with volatile raw material costs will continue to put pressure on the company's earnings and cash flow generation. Lucite's financial flexibility to withstand a prolonged downturn is hindered by its highly leveraged financial risk profile. Credit protection metrics are weak; on a rolling 12-month basis to June 30, 2008, adjusted debt to EBITDA was 8.1x and the ratio of funds from operations to adjusted debt including payment-in-kind loans was 6.2%. This raises concerns over the ability of the company to maintain sufficient liquidity during a time when access to the financial markets is constrained. Borrowing headroom was tight in the first half of the year. Failure to maintain sufficient liquidity or a breach of covenants would result in a downgrade. In order to resolve the CreditWatch, S&P will review the company's third-quarter operating results and liquidity position. Any rating action may not be limited to just one notch. METALEX ENGINEERING: Joint Liquidators Take Over Operations ----------------------------------------------------------- Nigel Price and Colin Andrew Prescott of Moore Stephens LLP were appointed joint liquidators of Metalex Engineering Ltd. on Oct. 1, 2008, for the creditors' voluntary winding-up proceeding. The company can be reached at: Metalex Engineering Ltd. c/o Moore Stephens LLP Beaufort House 94-96 Newhall Street Birmingham B3 1PB England NEXTGEN TECHNICAL: Brings in Liquidators from Tenon Recovery ------------------------------------------------------------ Jeremy Woodside and Christopher Ratten of Tenon Recovery were appointed joint liquidators of Nextgen Technical Services Ltd. on Oct. 9, 2008, for the creditors' voluntary winding-up proceeding. The company can be reached at: Nextgen Technical Services Ltd. 22-28 Willow Street Accrington Lancashire BB5 1LP England PLASTECH MULTISEALS: Calls in Administrators from Baker Tilly ------------------------------------------------------------- Guy Edward Brooke Mander and Lynn Robert Bailey of Baker Tilly Restructuring & Recovery LLP were appointed joint administrators of Plastech Multiseals Ltd. (Company Number 02945121) on Oct. 7, 2008. The company can be reached at: Plastech Multiseals Ltd. Blackhorse Trading Estate Longford Coventry CV6 6DG England QUADRANT EXHIBITIONS: Hires Liquidators from Mazars --------------------------------------------------- Robert David Adamson and Paul Charlton of Mazars LLP were appointed joint liquidators of Quadrants Exhibitions Ltd. on Oct. 1, 2008, for the creditors' voluntary winding-up proceeding. The company can be reached at: Quadrants Exhibitions Ltd. c/o Mazars LLP Mazars House Gelderd Road Gildersome Leeds LS27 7JN England SAFEWELD LTD: Appoints Liquidators from Moore & Stephens -------------------------------------------------------- Nigel Price and Colin Andrew Prescott of Moore Stephens LLP were appointed joint liquidators of Safeweld Ltd. on Oct. 3, 2008, for the creditors' voluntary winding-up proceeding. The company can be reached at: Safeweld Ltd. c/o Moore Stephens LLP Beaufort House 94-96 Newhall Street Birmingham B3 1PB England WILLIAMS ALLOYS: Taps Joint Administrators from Deloitte -------------------------------------------------------- Christopher James Farrington and Dominic Lee Zoong Wong of Deloitte & Touche LLP were appointed joint administrators of Williams Alloys & Residues Ltd. (Company Number 04664577) on Oct. 3, 2008. The company can be reached at: Williams Alloys & Residues Ltd. c/o Gravestock & Owen 75 New Road Willenhall West Midlands WV12 2DA England * Downturn & Weak Economy Bad for UK Petrochemical Firms, S&P Says ------------------------------------------------------------------ The forthcoming cyclical downturn in the petrochemicals industry could be harsher than former downturns and could trigger rating downgrades for highly leveraged companies, says Standard & Poor's Ratings Services in its new report "Cyclical Downturn And Weaker Economies Are A Bad Cocktail For Petrochemical Firms". This is because it is coinciding with weakening world economies, which S&P expects to slow down growth in demand so that industry overcapacities will take longer to absorb. What's more, highly volatile raw material costs could also put short-term pressure on companies' liquidity. "Even though Standard & Poor's aims to rate through a cycle, this cocktail of overcapacities due to new capacities coming on stream in the Middle East and Asia and weakening economies heightens the risk that some companies will experience more pronounced negative effects on profitability and, subsequently, on credit quality," said S&P's credit analyst Tobias Mock. "This would reduce their longer term prospects and trigger negative rating actions. Of the five rated companies in Europe and the Middle East that have significant exposure to the petrochemical industry and will be most affected by the downturn, three have solid balance sheets and flexible liquidity necessary to weather these tougher conditions. "However, we consider credit quality to be at risk particularly for highly leveraged companies, such as U.S.-Dutch LyondellBasell Industries AF S.C.A. (B/Negative/--) and U.K.-based chemicals group Ineos (Ineos Group Holdings PLC; B+/Negative/--)," said Mr. Mock. The stable outlooks on Saudi Arabia-based Saudi Basic Industries Corp. (SABIC; A+/Stable/A-1) and it's Netherlands-based subsidiary SABIC Europe B.V. (BBB/Stable/A-2), on the other hand, indicate that S&P expects their balance sheets to be strong enough to maintain the ratings in the challenging times ahead. The negative outlook assigned on Germany's BASF SE (AA-/Negative/A-1+) reflects its ongoing acquisition of Switzerland-based specialty chemicals producer Ciba Holding Inc. (Ciba; BBB-/Watch Pos/A-3) and the risk that, should its profitability decline materially, BASF could also fail to maintain a balance sheet for the current rating. * Investment Pull-Backs Tip Europe into 3Q Recession, S&P Reports ----------------------------------------------------------------- While official statistics confirm that GDP growth was negative in the Eurozone in the second quarter of 2008, there are worrying signs that this retrenchment has spilled over to the third quarter, says a research report titled "Europe Tips Into Recession As Corporates Scale Back Their Investment," published earlier by Standard & Poor's Ratings Services. This leads us to believe that Europe's economies may have technically entered a recession. "The downturn in the spring was mainly caused by very weak consumer demand, as higher inflation and a deceleration in employment growth put a squeeze on household purchasing power," said Jean-Michel Six, S&P's chief economist for Europe. "Now, in the second half of the year, slack demand and a tightening in corporate liquidity are combining to undermine business confidence." The deepening and broadening of the economic downturn across Europe in the past four months can be attributed to a number of negative factors. And one in particular appears critical: A contraction in business investment on the back of tighter margins, weaker demand prospects, and much less favorable financing conditions. As the report points out, the first shoe to drop in the new environment of low growth that's been prevailing since August 2007 and the beginning of the financial crisis was consumer demand. As inflation accelerated on the back of higher commodity prices, consumers' spending power was squeezed. The concurrent downturn in housing markets (particularly in the U.K., Ireland, Spain, and Denmark) added a negative wealth effect to that income effect, causing household consumption to fall in the majority of countries in the first half of 2008. However, investment, especially (but not only) in the construction sector, was still dynamic at the beginning of the year. This is because capacity utilization remained tight while demand prospects, mainly from emerging markets, remained very strong. In addition, the liquidity squeeze that started to develop in the European economies mostly affected households through a rationing of housing loans. Money supply data show that the growth in loans to nonfinancial corporations peaked quite late in the cycle, in March 2008. Two negative factors explain the turn around in capital spending -- the second shoe to drop -- since the middle of this year: First, corporate margins are being squeezed by higher input and labor costs; and second, financing is getting tight. These factors have led S&P to revise its forecast for GDP growth in the major European economies in 2009, and the rating agency now expects several countries to experience negative growth on average next year: -- In the U.K., S&P's projection is negative 0.2% growth in GDP (from positive 0.8% previously). -- In Spain and Ireland, S&P also forecasts negative growth -- of 0.2% and 0.5%, respectively. -- GDP growth in France, meanwhile, will fall to 0.5% (from 1.2%). S&P's new forecast for Germany is 0.5% GDP growth (previously 1.2%). This is a marked revision, albeit one that still puts us at the high end of the range of forecasts available for that country. * Baltic States to Mirror Hungary's IMF Receivership ---------------------------------------------------- Edward Hugh at the RGE Monitor wrote last week that a growing number of countries now seem to be at risk of following Iceland and Hungary into the arms of the International Monetary Fund, with the Baltic republics of Estonia, Latvia and Lithuania now looking particularly vulnerable, according to a warning from the IMF. The Troubled Company Reporter-Europe on Oct. 20, 2008, citing Reuters, reported that Iceland has tapped the IMF for financing to help ease the crisis. Some ministers have raised the possibility of membership of the European Union, long resisted by its fishing sector, to safeguard the economy. Reuters, the TCR-Europe wrote, said that Russia is currently studying Iceland's multi-billion euro loan request. Talks in Moscow ended with Russia agreeing to consider the request for a loan which the North Atlantic island initially put at EUR4 billion (US$5.45 billion). Mr. Hugh noted that Dominique Strauss-Kahn, managing director of the IMF, which was formally approached October 14, for assistance by Hungary as well as Iceland, said: "The fallout for most banking systems in emerging and developing economies has been limited so far but signs of stress are growing." Mr. Strauss-Kahn said some banks in eastern Europe have become increasingly exposed to struggling property markets, having raised funds on international money markets in the same way as the ill- fated Icelandic banks, Mr. Hugh related. According to Mr. Hugh, Bloomberg quoted Edgars Vaikulis, spokesman for Prime Minister Ivars Godmanis, as saying "There is no reason to speak of threats to the Latvian financial system . . . Latvia's situation is different from some of the eurozone members." The Latvian government, based on the report, has taken the step of raising guarantees on all bank deposits to EUR50,000 (US$68,225), in line with an earlier decision by European Union finance ministers. Mr. Hugh said he views the threat to the Baltic financial systems as real, as is the threat to the Bulgarian and Romanian ones. Action, of some form or another needs to be taken, and soon, he added. * Euler Hermes Says 2008/2009 Outlook for Air Carriers Bleak ------------------------------------------------------------ According to Euler Hermes, air carriers' results will deteriorate further in 2008 and 2009 due to slower growth in air traffic and significantly higher fuel costs. However the momentum remains positive for the leading aircraft manufacturers, which are unlikely to be affected before 2010. 2008 and 2009 will be a difficult time for air carriers * Air traffic is closely correlated to global economic growth. The marked slowdown in the global economy in 2008, and above all in 2009, will result in slower growth in air traffic, which will drop to well below its long-term rate, estimated at 4.5% a year over the past thirty years. "Passenger traffic is expected to grow by only 3.5% this year and by just 1% in 2009", said Nicolas Lioret, aviation sector analyst at Euler Hermes SFAC, French subsidiary of the world's leading credit insurance firm Euler Hermes. * Oil prices will remain high and the rise in fuel costs will be only partly passed on to ticket prices. After peaking at an historical high of more than US$144 a barrel at the beginning of July, crude oil prices have recently dropped back to below US$100 per barrel. However, Euler Hermes expects oil prices to stabilize at a high level. * Earnings will deteriorate further in the sector. Air transport prices are expected to rise by 3% in 2008 and 2.5% in 2009. At the same time, fuel costs will increase by 34% this year, to US$182 billion, and by 17% to US$213bn in 2009. "The operating margin in the sector will be negative (-2.5%) for the first time since 2003", says Lioret. * 2008: business failures will reach a level similar to that in 2003 The number of business failures and flight suspensions is expected to rise sharply this year, with almost sixty airlines defaulting, a level not reached since 2003. 24 different nationalities are concerned, with the United States accounting for a record of 12 business failures. * The low-cost model will survive at the cost of alliances and restructuring, which will not be without pain. With ten or so failures as at mid-September 2008, low-cost companies have also been affected by the drastic rise in oil prices. However, these companies are likely to survive the present crisis as their business model is well established and they have high penetration rates, with market shares of around 30% in Western Europe and the United States. Aircraft manufacturers will not feel the impact before 2010, but in the short term European manufacturers still face the issue of the dollar/euro exchange rate. * A limited impact on order books for the moment Air carriers introduced various measures at the beginning of the summer to restore their profitability, but for the moment these have had little impact on manufacturers' well-filled order books. * Deliveries will peak in 2010, followed by what looks set to be a limited downturn. Deliveries will continue to accelerate until 2010 for both Airbus and Boeing. Further out, the two aircraft manufacturers may decide not to step up the pace of deliveries given the slowdown currently underway. However, a number of factors will limit the downturn to -25% on average compared with -40% on average during previous downturns. * Momentum still positive for the global majors. Profitability is expected to remain at satisfactory levels in 2008. * Although the dollar strengthened recently, it remains weak against the euro which continues to penalize European constructors. The dollar weakened against the euro by a further 9.5% on average this year, which continues to penalize European aircraft and equipment manufacturers, whose profitability will be further eroded by the currency effect this year. * At the very end of the chain, the French subcontractors continue to benefit from the momentum in the aircraft industry but they will need to adapt to increasing purchases outside the euro zone The subcontractors have managed to take advantage of the upturn in deliveries following the significant investments made in 2004 and 2005. 2007 was a good year and 2008 is expected to remain positive with operating margins staying up at around 7.5%. "The necessity of reducing costs will force players to adapt, notably through business combinations (so as to be able to respond to larger calls for tender), by relocating abroad for the activities with least value added, by becoming more competitive and diversifying their customer bases" said Euler Hermes SFAC analyst Nicolas Lioret. Headquartered in Paris, France, Euler Hermes -- http://www.eulerhermes.com/-- is a credit insurance in the areas of bonding, guarantees and collections. With 6,000 employees in over 50 countries, Euler Hermes offers a complete range of services for the management of B-to-B trade receivables and posted a consolidated turnover of EUR2.1 billion in 2007. ********* 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 * * *