/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/081030.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 Thursday, October 30, 2008, Vol. 9, No. 216 Headlines A U S T R I A ARCHIPRO LLC: Claims Registration Period Ends November 19 ERNST DOUNI: Claims Registration Period Ends November 25 J.P.A. TRANSPORT: Claims Registration Period Ends November 17 JOHANN LLC: Claims Registration Period Ends November 17 VGH LLC: Claims Registration Period Ends November 10 B E L G I U M FORTIS NV: Belgian Prosecutors Conduct Probe on Market Statements FORTIS NV: Shareholder Group Seeks Probe on Possible Mismanagement F I N L A N D STORA ENSO: Posts EUR119.1 Mln Net Loss for Third Quarter 2008 STORA ENSO: Moody's Holds Ba1 Ratings & Changes Outlook to Neg. F R A N C E CIFG EUROPE: Moody's Rates Insurance Financial Strength at B3 G E R M A N Y AHB TVMANUFACTUR: Claims Registration Period Ends Nov. 4 ALL IN ONE: Claims Registration Period Ends November 4 ANLAGEN UND SCHALLSCHUTZTECHNIK: Claims Filing Period Ends Nov. 3 BOIZENBURGER AKUSTIK: Claims Registration Period Ends November 3 C-TEX TEXTILPFLEGE: Claims Registration Period Ends November 3 CONDIS UMWELTTECHNIK: Claims Registration Period Ends Nov. 3 ERSCHLIESSUNGS- UND BAUGESELLSCHAFT: Claims Filing Ends Nov. 3 ESKADE OSTRAU: Claims Registration Period Ends November 3 FMH METALL: Claims Registration Period Ends November 4 GO-PRODUKT UND SERVICE: Claims Registration Period Ends Nov. 4 HOTEL TOELZER: Claims Registration Period Ends Nov. 4 KAWE TRANSPORT: Claims Registration Period Ends Nov. 4 KUECHENTRAUMWELT GMBH: Claims Registration Period Ends Nov. 4 MALERMEISTER HAUS: Claims Registration Period Ends Nov. 4 PROCREDIT HOLDING: Fitch Assigns 'BB-' Preferred Securities Rating SETA-TRANS SPEDITIONS: Claims Registration Period Ends Nov. 4 WIMTEX MOEBELHANDELS: Claims Registration Period Ends Nov. 3 I C E L A N D * Central Bank of Iceland Raises Policy Interest Rate to 18% I T A L Y ALITALIA SPA: CAI Approves EUR1.1 Billion Capital Increase WHIRLPOOL CORP: To Close Facilities; About 5,000 Jobs at Risk K A Z A K H S T A N ALMA LTD: Creditors Must File Proofs of Claim by December 9 BUILD INDUSTRIES: Creditors' Claims Deadline Slated for Dec. 9 BYT LLP: Creditors' Claims Filing Period Ends December 9 DJEYRAN LLP: Creditors Must Register Claims by December 9 KAZSAK LLP: Creditors' Claims Due on December 9 PROIZVODSTVENNO-ECOLOGICHESKOYE: Creditors' Claims Due on Dec. 9 PROMSERVICE KOMPANIYASY: Claims Deadline Slated for Dec. 5 PUSK LLP: Creditors' Claims Filing Period Ends Dec. 5 SPETS MASH: Creditors Must Register Claims by December 5 VILUS LLP: Creditors Must File Proofs of Claim by Dec. 9 * Kazakhstan Government to Inject US$5 Billion Into Four Banks K Y R G Y Z S T A N FELLSTOCK TRADE: Creditors Must File Claims by Nov. 26 L I T H U A N I A BITE LIETUVA: S&P Junks Credit Rating to CCC- on Default Risks N E T H E R L A N D S AEGON NV: Obtains EUR3BB Core Capital From Vereniging Shareholder * Moody's Comments on Dutch Government's Support to Banks R O M A N I A * BUCHAREST: S&P Shifts Outlook to Neg.; Holds BB+ Credit Rating R U S S I A BOLSHERECHENSKY REPAIR: Creditor Must File Claims by November 17 FENIKS-MASH-KHIM: Creditors Must File Claims by November 17 KRAS-WOOD-T: Creditors Must File Claims by December 17 KUZNETSK-AVTO-YUG: Bankruptcy Hearing Set Feb. 11, 2009 SARATOVSKIY CERAMIC: Creditors Must File Claims by November 17 SIB-VTOR-MET CJSC: Creditors Must File Claims by December 17 SIBIR-PROM-SINTEZ LLC: Creditors Must File Claims by November 17 SIBIRSKAYA CONSTRUCTION: Creditor Must File Claims by Nov. 17 TOMSK-PODVOD-TRUBOPROVOD-STROY: Claims Filing Ends November 17 VOLGO-MET LLC: Astrakhan Bankruptcy Hearing Set December 23 VOLOGRA-LES-PRODUKT: Creditors Must File Claims by November 17 VTB BANK: Inks Memorandum of Cooperation with BIDV S W E D E N CARNEGIE INVESTMENT: Government Raises Loan Offer to SEK5 Billion S W I T Z E R L A N D AIR OPERATING: Creditors Must File Proofs of Claim by Nov. 7 DAO LAFOES: Deadline to File Proofs of Claim Set Dec. 18 GINGER FASHION: Creditors Have Until Dec. 15 to File Claims IMMOBILIEN TELLEN: Proofs of Claim Filing Deadline is Nov. 21 SPAGOMED JSC: Creditors' Proofs of Claim Due by Dec. 23 WABIC LLC: Nov. 28 Set as Deadline to File Claims U K R A I N E ARNIKA-GROUP LLC: Creditors Must File Claims by November 2 ARTEKS LLC: Creditors Must File Claims by November 2 DONBASS-ONLINE LLC: Creditors Must File Claims by November 2 ENERGY TECHNICAL: Creditors Must File Claims by November 5 NOVAYA ODESSA: Creditors Must File Claims by November 2 PROGRESS-GNAROVSKAYA: Creditors Must File Claims by November 2 ROMAN LLC: Creditors Must File Claims by November 2 TELECOMPANY SKTEL: Creditors Must File Claims by November 2 TVORCHESTVO LLC: Creditors Must File Claims by November 5 VIDANA LLC: Creditors Must File Claims by November 2 ZHOVTNEVE OJSC: Creditors Must File Claims by November 2 U N I T E D K I N G D O M BARCLAYS PLC: Seeks GBP6.5BB Add'l Capital from Two Russian Banks BEST VALUE: Brings in Joint Administrators from KPMG BJNC LTD: Appoints Liquidators from Vantis Business Recovery CHINA GATE: Calls in Joint Administrators from KPMG CHOCOLATE EMPIRE: Taps Baker Tilly to Administer Assets DAVID MCLEAN: Appoints Deloitte as Joint Administrators DINO UK: Appoints Liquidators from Moore Stephens HIGH TIDE: Fitch Cuts Ratings on Two Classes of Notes to Low-B HITCHENS GROUP: Put Into Administration by Parent Company ITV PLC: Fitch Trims LT Issuer Default Rating to BB+ from BBB- JOHNSTON UK: Colin Prescott Leads Liquidation Procedure LASER BROADCASTING: Court Appoints Administrators from Begbies M G M LTD: Names Duncan R. Beat Liquidator RVS MODULAR: Brings in Joint Administrators from Grant Thornton SHOW PRESENTATION: Lending Restrictions Prompt Administration STONEGUARD GROUP: Puts Five Companies Under Receivership STYAL HOMES: Calls in Joint Administrators from PwC TAILORED PROPERTY: Taps Liquidators from Tenon Recovery TAYLOR WIMPEY: Lenders Choose to Rework Loan Covenants TIME MACHINE: Appoints Joint Administrators from PwC TITAN EUROPE 2006-5: S&P Slashes Rating on Class F Notes to CCC- VONAGE HOLDINGS: Amends Financing Terms to Notes Purchase Offer * S&P Analyzes European Corporate Liquidity Over Global Crunch * European Banks Under Pressure Over Top 50 Borrowers, S&P Reports * Michael Crosby Joins Proskauer Rose as a Partner in London * Upcoming Meetings, Conferences and Seminars ********* ============= A U S T R I A ============= ARCHIPRO LLC: Claims Registration Period Ends November 19 --------------------------------------------------------- Creditors owed money by LLC Archipro (FN 139999g) have until Nov. 19, 2008, to file written proofs of claim to the court- appointed estate administrator: Dr. Walter Kainz Gusshausstrasse 23 1040 Vienna Austria Tel: 505 88 31 Fax: 505 94 64 E-mail: w.kainz@kainz-wexberg.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Dec. 3, 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. 30, 2008, (Bankr. Case No. 4 S 137/08m). Dr. Eva Wexberg represents Dr. Kainz in the bankruptcy proceedings. ERNST DOUNI: Claims Registration Period Ends November 25 -------------------------------------------------------- Creditors owed money by LLC Ernst Douni (FN 84511g) have until Nov. 25, 2008, to file written proofs of claim to the court- appointed estate administrator: Mag. Christian Hajos Hauptstrasse 6 2630 Ternitz Austria Tel: 02630/33 655 Fax: 02630/33655-14 E-mail: office@ra-winkler.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on Dec. 9, 2008, for the examination of claims at: The Land Court of Wiener Neustadt Room 15 Wiener Neustadt Austria Headquartered in Natschbach-Loipersbach, Austria, the Debtor declared bankruptcy on Sept. 29, 2008, (Bankr. Case No. 11 S 98/08k). J.P.A. TRANSPORT: Claims Registration Period Ends November 17 ------------------------------------------------------------- Creditors owed money by LLC J.P.A. Transport (FN 83913b) have until Nov. 17, 2008, to file written proofs of claim to the court- appointed estate administrator: Dr. Roland Heitzinger Ringstrasse 4/Plobergerstrasse 7 4600 Wels Austria Tel: 07242/42605-0 Fax: 07242/42605-20 E-mail: heitzinger@ra-stossier.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 2:00 p.m. on Nov. 27, 2008, for the examination of claims at: The Land Court of Wels Maria Theresia Str. 12 First Floor Hall 101 Wels Austria Headquartered in Wels, Austria, the Debtor declared bankruptcy on Sept. 30, 2008, (Bankr. Case No. 20 S 124/08y). JOHANN LLC: Claims Registration Period Ends November 17 ------------------------------------------------------- Creditors owed money by LLC Johann (FN 280050p) have until Nov. 17, 2008, to file written proofs of claim to the court- appointed estate administrator: Dr. Ulrike Bauer Elisabethstrasse 26 1010 Vienna Tel: 587 78 20 Serie Fax: 587 78 20 9 E-mail: ra.bauer@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:45 a.m. on Dec. 1, 2008, for the examination of claims at: The Trade court of Vienna Room 2101 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Sept. 29, 2008, (Bankr. Case No. 38 S 42/08s). VGH LLC: Claims Registration Period Ends November 10 ---------------------------------------------------- Creditors owed money by VGH LLC (FN 055595h) have until Nov. 10, 2008, to file written proofs of claim to the court-appointed estate administrator: Dr. Hans-Peter Kandler Grazer Strasse 53a/1/5 2700 Wiener Neustadt Austria Tel: 02622/69 5 67 Fax: 02622/69 5 67-13 E-mail: dr.h.p.kandler.rechtsanwalt@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on Nov. 20, 2008, for the examination of claims at: The Land Court of Wiener Neustadt Room 15 Wiener Neustadt Austria Headquartered in Perchtoldsdorf, Austria, the Debtor declared bankruptcy on Sept. 29, 2008, (Bankr. Case No. 10 S 114/08f). ============= B E L G I U M ============= FORTIS NV: Belgian Prosecutors Conduct Probe on Market Statements ----------------------------------------------------------------- Fortis NV is under Belgian prosecutors' scrutiny on whether the firm misled investors on its financial status, various reports say. A spokesman for the Brussels prosecutor's office said the investigation could concern both current and former heads of Fortis. The Brussels prosecutors appointed Judge Jeroen Burm to conduct the investigation, according to Bloomberg News. Fortis spokeswoman Liliane Tackaert said the group had not yet been informed of the prosecutors' action. According to The Wall Street Journal, the investigation follows complaints from a former employee and public concern over the matter. Reuters says shareholder groups have complained that former Chairman Maurice Lippens and ex-Chief Executive Jean-Paul Votron repeatedly assured markets that the balance sheet was strong and that there would be no change to the dividend policy, however, Fortis scrapped its interim dividend and sought new capital at the end of June. Bloomberg News relates Fortis' shares fell 8 cents, or 8.9 percent, to 81 cents in Brussels trading on October 28, the lowest closing price on record. Fortis' shares have lost 97 percent of their value since touching their previous intraday peak in April 2007. As reported in the Troubled Company Reporter-Europe on Oct. 1, 2008, the Governments of Belgium, the Netherlands and Luxembourg agreed to inject EUR11.2 billion into the bank. Specifically, Belgium invested EUR4.7 billion in Fortis Bank (Belgium), the Netherlands invested EUR4.0 billion in Fortis Bank Nederland (Holding) NV and Luxembourg invested EUR2.5 billion in Fortis Banque Luxembourg SA. Under the agreement, each government will hold a 49% share in the bank's respective subsidiaries. BNP Paribas SA later agreed to buy a 75 percent stake in Fortis Bank SA/NV and take over the Belgian insurance division. Reuters discloses the deals left Fortis Group with only its international insurance business and a 66 percent share of a EUR10.4 billion portfolio of structured credit products. Following the three-government bailout, Fortis said it will sell its interest in ABN AMRO (RFS Holdings). Bloomberg News says Fortis' purchase of the ABN Amro assets as the U.S. subprime- mortgage market collapsed and credit markets froze contributed to its problems. According to Fortis, the sale of the stake in RFS Holdings will represent the acquired activities of ABN AMRO, excluding Asset Management (already transferred in the 2nd quarter of 2008). The sale, at a price below the acquisition price of EUR24 billion, will lead to an impairment. The impairment will not impact total regulatory capital, however, a sales price below EUR12 billion would, for that difference, negatively impact core equity, Fortis noted. About Fortis N.V. Headquartered in Brussels, Belgium, Fortis N.V. -- http://www.fortis.com/-- is an international provider of banking and insurance services to personal, business and institutional customers. The Company operates in four core businesses: Retail Banking, Asset Management and Private Banking, Merchant Banking and Insurance. The Company delivers a package of financial products and services through its own channels and via intermediaries and other partners. In May 2007, Fortis N.V. finalized the acquisition of a 50.45% stake in Pacific Century Insurance Holdings Limited. As of June 15, 2007, the Company had acquired a 98.59% stake in Pacific Century Insurance Holdings Limited. In July 2008, the Company sold International Asset Management Limited (IAM). * * * As reported by the Troubled Company Reporter on Oct. 9, 2008, Moody's Investors Service downgraded Fortis SA/NV and Fortis N.V. long term issuer ratings to Baa2 from Baa1, and the ratings were placed under review for possible downgrade. Debt ratings benefiting from subordinated and preferred guarantees from the joint holding companies were downgraded to Baa3 and Ba1 respectively. Certain securities benefiting from joint and several guarantees from the holding companies and Fortis ASR Levensverzkering N.V. were confirmed at Baa3 with a developing outlook. Moody's also downgraded the insurance financial strength rating of Fortis Insurance Company (Asia) Ltd (FICA) to Baa1 from A3, and the backed senior unsecured debt of Fortis Capital (Asia) Ltd, a wholly-owned subsidiary of FICA, to Baa2 from Baa1. These ratings now carry a developing outlook. The Group's CP rating was affirmed at P-2 and placed under review for possible downgrade. FORTIS NV: Shareholder Group Seeks Probe on Possible Mismanagement ------------------------------------------------------------------ Euroshareholders, the pan-European organization of shareholders associations, has filed a request at the Enterprise Chamber of the Dutch Court of Appeal in Amsterdam to take certain injunctions with respect to Fortis NV's case. Euroshareholders, which is currently supported by over 12,000 European Fortis-shareholders, says it is unacceptable that � through the sale of the Dutch activities to the Dutch State (October 3rd) and the Belgian activities (October 5th) to the Belgian State and BNP Paribas � within 2 days, 95 percent of the activities have been divested without having consulted the shareholders. According to Dutch law, these transactions (>33%) require approval of the shareholders meeting. Euroshareholders requested the court (by injunction) to order Fortis to submit the transactions to the shareholder�s meeting for its approval. In addition, Euroshareholders requested the dismissal of the Board of Directors for mismanagement which resulted in the loss of EUR50 billion in shareholder value and persistent misinformation to the shareholders. The shareholders also seek injunction with regards to these key questions which remain unanswered: * How have the transactions been structured? * What has happened with the cash that came in from the various sales (in total close to EUR30 billion) and how is it possible that only approximately EUR8 billion is left for shareholders in Fortis? * Which structured products have been transferred to the special purpose vehicle, how has the valuation been determined, and is it possible to sell those products at the valuation used at the time of the transfer? Accordingly, Euroshareholders requested that a shareholders circular (memorandum) be published. Euroshareholders also requested for an independent valuation of the structured products portfolio, as well as publication of the contracts that have been signed in relation to the transactions. Euroshareholders further asked the court to order an investigation into possible mismanagement at Fortis. Euroshareholders argue that Fortis has consistently provided false and misleading information with respect to its financial position, which includes statements about: * The solid balance sheet (up to September 26th) * Denial of liquidity problems (up to September 26th) * The refusal of the European Commission to extend the period to realise divestments. * The execution of the September 29th transaction (Fortis stated on October 1st on its website that the transactions were finalized and that the amounts concerned had been paid to it; which later proved to be untrue). Euroshareholders said it generally supports the request filed by the Dutch Shareholder Association VEB against Fortis. About Fortis N.V. Headquartered in Brussels, Belgium, Fortis N.V. -- http://www.fortis.com/-- is an international provider of banking and insurance services to personal, business and institutional customers. The Company operates in four core businesses: Retail Banking, Asset Management and Private Banking, Merchant Banking and Insurance. The Company delivers a package of financial products and services through its own channels and via intermediaries and other partners. In May 2007, Fortis N.V. finalized the acquisition of a 50.45% stake in Pacific Century Insurance Holdings Limited. As of June 15, 2007, the Company had acquired a 98.59% stake in Pacific Century Insurance Holdings Limited. In July 2008, the Company sold International Asset Management Limited (IAM). * * * As reported by the Troubled Company Reporter on Oct. 9, 2008, Moody's Investors Service downgraded Fortis SA/NV and Fortis N.V. long term issuer ratings to Baa2 from Baa1, and the ratings were placed under review for possible downgrade. Debt ratings benefiting from subordinated and preferred guarantees from the joint holding companies were downgraded to Baa3 and Ba1 respectively. Certain securities benefiting from joint and several guarantees from the holding companies and Fortis ASR Levensverzkering N.V. were confirmed at Baa3 with a developing outlook. Moody's also downgraded the insurance financial strength rating of Fortis Insurance Company (Asia) Ltd (FICA) to Baa1 from A3, and the backed senior unsecured debt of Fortis Capital (Asia) Ltd, a wholly-owned subsidiary of FICA, to Baa2 from Baa1. These ratings now carry a developing outlook. The Group's CP rating was affirmed at P-2 and placed under review for possible downgrade. ============= F I N L A N D ============= STORA ENSO: Posts EUR119.1 Mln Net Loss for Third Quarter 2008 -------------------------------------------------------------- Stora Enso Oyj provided an interim review of its operations for January-September 2008. Favorable exchange rates, reduced overhead costs and pricing improvements compensated for deteriorating market conditions since the second quarter 2008. Stora Enso posted a net loss of EUR119.1 million on sales of EUR2.7 billion for the third quarter of 2008, compared to a net loss of EUR274.5 million on sales of EUR2.9 billion for the third quarter of 2007. In the second quarter of 2008, Stora Enso reported a net profit of EUR28.6 million on sales of EUR2.9 billion. Stora Enso CEO Jouko Karvinen said, "The storm we have faced for the past 18 months has changed. Strengthening of the US dollar and, even more important for us, weakening of the Swedish krona have already clearly helped. We can also see a downward trend in fuel-based energy costs, which will start supporting us in early 2009 following the tremendous increases of recent quarters. However, we now also face accelerating softening in market demand in most grades. This reality makes the actions we have taken in the past year and a half, from cost and capacity cuts, focus on pricing quality, increasing Finnish wood sourcing and strengthening our balance sheet through divestments, critically important. Our third quarter results, although still poor, were somewhat better than expected owing in part to our own early actions. The fact that we have since mid 2007 successfully improved our liquidity and reduced our reliance on short-term borrowings with a significantly extended debt maturity profile also supports us now when we enter the next phase of the storm. "Our focus on pricing quality has worked well in all magazine paper grades, coated fine paper, consumer board and some of the industrial packaging grades. We have achieved meaningful -- and necessary -- price increases in local currencies compared to the prior year period. We will continue to defend our margins by adjusting volumes across our product mix towards more profitable grades and safeguard our earnings capability even if that means production curtailments. In some segments, such as newsprint and magazine paper, we have informed our customers that we intend to increase prices in early 2009, despite the softening macroeconomic outlook. "Another key priority is to improve our weak operating cash flow. We reduced our capital investments in the third quarter by some more than 20% compared to a year earlier. We are now reviewing our entire capital investment program for the next one to two years, with the aim of reducing the overall level while ensuring that we progress in strategically critical projects. For these projects, we will focus on safeguarding the quality and progress of the investments, but we will consider rescheduling them if needed. We also have the aim of reducing working capital and will curtail production to realistic delivery volumes already in the fourth quarter to ensure that we start 2009 with inventory levels appropriate for the challenging year to come. These production curtailments will have a clearly unfavorable impact on our fourth quarter earnings. We are convinced this is the right preparation for the reality we face in 2009. As before, we believe it is right to plan for the worst, and then adjust our plans upwards if and when the opportunity comes." Near-term Outlook In Europe market demand is forecast to be weaker in the fourth quarter than a year earlier for newsprint, magazine paper and fine paper. Despite weakening demand, markets for most paper products, especially newsprint, are expected to remain balanced due to substantial reductions in production capacity. Consumer board and industrial packaging markets are forecast to be weaker than a year earlier. Demand for consumer board is currently negatively impacted by food safety problems in China, and industrial packaging will be affected by weaker demand in consumer goods markets and construction industries. The outlook for wood products remains poor, further undermined by low consumer confidence, and demand is likely to be weaker in the fourth quarter than a year earlier. Prices in Europe are expected to remain stable during the fourth quarter for newsprint, magazine paper and uncoated fine paper. Some improvement in coated fine paper and consumer board prices is anticipated as already announced price increases are gradually implemented. Prices for industrial packaging products are forecast to decrease slightly. Persistent oversupply of wood products is likely to keep prices under pressure in many markets. Stora Enso intends to increase prices for newsprint, magazine paper and coated fine paper in Europe in early 2009. In China demand and prices are vulnerable to weakness in coated magazine paper market, which is also having an affect on the uncoated magazine paper market. The outlook for fine paper demand in China remains stable, but prices are exposed to some pressure due to elevated mill inventories. In Latin America demand for magazine paper is forecast to stabilize, but prices for non-contractual business are predicted to improve further. In other overseas markets some improvement during the quarter is anticipated in magazine paper prices, whereas newsprint prices are expected to remain unchanged after significant increases in the third quarter. About Stora Enso Oyj Headquartered in Helsinki, Finland, Stora Enso -- http://www.storaenso.com/-- is an integrated paper, packaging and forest products company producing newsprint, magazine paper, fine paper, consumer board, industrial packaging and wood products. Stora Enso's sales totaled EUR11.8 billion in 2007. The Group has some 36 000 employees in more than 40 countries on five continents. * * * Stora Enso Oyj continues to carry 'BB+' Long-term Issuer Default and senior unsecured ratings from Fitch. Its Short-term IDR stands at 'B'. The Outlook on the LT IDR remains Negative. The ratings were downgraded to their current level in July 2008. STORA ENSO: Moody's Holds Ba1 Ratings & Changes Outlook to Neg. --------------------------------------------------------------- Moody's Investors Service has affirmed the Ba1 Corporate Family Rating (CFR), the Ba1 Senior Unsecured Note Ratings and the Not Prime short-term rating of Stora Enso Oyj. At the same time, the outlook on the ratings was changed to negative from stable. "The outlook change to negative was prompted by continued erosion of Stora Enso's profitability levels and further weakening operating cash flows in the first nine months of 2008 compared to the same period last year. This resulted in credit metrics falling below the thresholds set for the Ba1 rating category, as well as an uncertain medium-term outlook for demand levels among all paper grades in light of a softening macroeconomic environment, which could potentially further compress profitability and cash flow generation," says Christian Hendker, a Moody's Assistant Vice President and Lead Analyst for Stora Enso. "The negative outlook reflects an increasing uncertainty surrounding Stora Enso's ability to preserve a financial profile in line with the requirements of the Ba1 rating category, which is linked to the extent that the burden of weakening deliveries will be offset by the benefits from a softening of input costs, price increases for certain paper grades or additional cost reduction measures. If the company's were to prove unable to significantly reduce negative free cash flows either by operating cash flow improvements, or through other discretionary measures to stem cash consumption from capital activities, a downgrade could ensue within the next quarters." Moody's has noted a continued deterioration of Stora Enso's earnings power and cash generation over the last few quarters, particularly due to weakening operating performance in the wood products, industrial packaging and newsprint divisions, driven by weaker deliveries and continued cost inflation. As a result, the EBITDA margin in the last 12 months ending September 2008 of around 8% was substantially weaker than the EBITDA margin of 11.9% generated in 2007; this weakening is in contrast to the assumed strengthening of operating margins reflected in the original stable rating outlook. Moreover, Stora Enso failed to strengthen its operating cash flow generation, as funds from operations in the last 12 months ending September 2008 fell to approximately EUR0.7 billion from EUR1.4 billion in 2007. Likewise, Stora Enso generated significant negative free cash flows that have been partially funded with proceeds of recent business disposals. However, Moody's notes that operating margins and cash flows in the next few quarters could benefit from: (i) a softening of recent cost inflation due to lower energy and transportation costs, with wood costs expected to remain high given the introduction of the Russian export duty in 2009; (ii) an improving exchange rate environment that could reduce repatriation of exports as well as imports into Europe from North America; (iii) targeted price increases in the paper division, mainly for newsprint and magazine grades; (iv) additional cost reduction measures, including production curtailments that, however, could burden profitability and cash flows in the short term. In addition, Moody's notes that the company plans to implement additional measures to improve free cash flow generation ability, notably reducing capital expenditure and working capital. Moody's could downgrade the ratings if Stora Enso's EBITDA margin remains below 9%, if the company is unable to turn around negative free cash flow generation towards break-even levels supported by a strengthening operating cash flow generation ability, or if its solid liquidity cushion weakens. Moody's could change the rating outlook back to stable if the free cash flows is restored to break-even levels, the RCF/Debt ratio is improved towards the mid-teens and there is evidence that the EBITDA margin will improve towards double-digit levels. "The rating affirmation of the Ba1 CFR recognises Stora Enso's relatively strong business profile as a diversified and leading European paper and forest products manufacturer with a high level of vertical integration," says Mr. Hendker. "While Stora Enso's rating is supported by an extended debt maturity profile and a solid liquidity cushion, evidenced by a cash position of EUR400 million and access to a EUR1.4 billion revolving credit facility that is currently undrawn, the rating is constrained by credit metrics that are currently below the requirements for a Ba1 rating. However, these metrics are expected to be materially strengthened through the cycle. The rating affirmation reflects Moody's expectation that the company's management will continue its proactive approach, in terms of capacity adjustments and cost structure improvements, to address the industry's structural overcapacity situation, and plan accordingly should weakening demand levels strengthen." The last rating action was on April 29, 2008, when Moody's downgraded Stora Enso's rating from Baa3 to Ba1 with a stable outlook. Outlook Actions: Issuer: Stora Enso Oyj * Outlook, Changed To Negative From Stable Stora Enso, with headquarters in Helsinki, Finland, is among the world's largest paper and forest products companies with 2007 annual sales of approximately EUR13.4 billion. The company's activities encompass newsprint and book paper, magazine paper, fine paper, consumer board, industrial packaging and wood products. The products are predominantly sold in Europe, and captured a revenue share of about 83% in 2007. =========== F R A N C E =========== CIFG EUROPE: Moody's Rates Insurance Financial Strength at B3 ------------------------------------------------------------- Moody's Investors Service has downgraded the insurance financial strength ratings of CIFG Guaranty, CIFG Europe, and CIFG Assurance North America, Inc. to B3, from Ba2, and continues its ratings review with direction uncertain. Moody's commented that the rating actions reflect its expectation of substantially higher mortgage-related losses arising from CIFG's insured portfolio, as well as the possibility that certain troubled exposures could be commuted. CIFG and its parents have entered into a nonbinding memorandum of understanding (MOU) with approximately 75% of CIFG's CDS counterparties (based on par outstanding) regarding the commutation of approximately US$12 billion of ABS CDOs and certain CRE CDOs. The financial guarantor indicated that it expects the contemplated commutation transaction to close before the end of 2008. Separately, CIFG has also reached a definitive agreement to reinsure approximately US$13 billion of US municipal risks with Assured Guaranty (Aaa under review for possible downgrade); the deal is still subject to some closing conditions. Moody's said that if CIFG is able to reach a favorable settlement and complete the announced transactions, remaining CIFG policyholders would likely benefit from an improved credit profile at the company. CIFG's insurance financial strength rating remains on review with direction uncertain to reflect the wide range of potential outcomes resulting from the firm's restructuring initiatives. Moody's believes that the terms of the troubled CDO commutation may have some elements that are typically associated with a distressed exchange, though such a determination is ultimately a matter of judgment. Moody's ratings on securities that are guaranteed or "wrapped" by a financial guarantor are generally maintained at a level equal to the higher of a) the rating of the guarantor (if rated at the investment grade level), or b) the published underlying rating. In accordance with current rating agency policy, following Moody's May 20, 2008 rating action on CIFG which lowered its rating to below the investment grade level, Moody's withdrew ratings on CIFG-wrapped securities for which there was no published underlying rating. Should the guarantor's rating subsequently move back into the investment grade range or should the agency subsequently publish the associated underlying rating, Moody's would reinstate previously withdrawn ratings on those wrapped instruments. For further information please see Moody's special comment entitled: Assignment of Wrapped Ratings When Financial Guarantor Falls Below Investment Grade (May, 2008). Regarding CIFG's insured portfolio, Moody's expects further stress on the company's risk-adjusted capital position in light of continued deterioration in housing fundamentals and the related implications on the company's mortgage-related exposures. Higher expected mortgage default rates and severity were reflected in upward revisions to Moody's lifetime loss estimates for certain recent vintage residential mortgage-backed securities announced in September. Moody's said that, as part of its review of CIFG's insurance financial strength rating, it will further refine its assessment of the guarantor's mortgage-related exposures and other insured transactions. The ratings review will also focus on the effect of the US municipal reinsurance transaction and execution of agreements relating to the commutation of ABS CDO exposures. To the extent CIFG is able to commute these exposures at a reasonable price, CIFG's insurance financial strength rating would probably be upgraded, but any upward rating revision would likely result in a non-investment grade rating given the continued heightened risks with respect to CIFG's remaining mortgage-related exposures and, in Moody's opinion, uncertainty about the medium to long term strategy of the group given its impaired franchise. Conversely, CIFG's inability to adequately mitigate the potential for further losses on these contracts through negotiated settlements within a reasonable timeframe could result in a confirmation of the rating or a further downgrade, depending on Moody's view of capital adequacy at the firm at the conclusion of our ratings review. LIST OF RATING ACTIONS These ratings have been downgraded and remain under review with direction uncertain: CIFG Guaranty -- insurance financial strength at B3, from Ba2 CIFG Europe -- insurance financial strength at B3, from Ba2 CIFG Assurance North America, Inc. -- insurance financial strength at B3, from Ba2 Established in 2001, CIFG has provided financial guarantees to issuers in the municipal and structured finance markets in the US and Europe through CIFG Assurance North America, Inc. and CIFG Europe, though it ceased writing business earlier this year to conserve capital and to evaluate its strategic alternatives. Caisse Nationale des Caisses d'Epargne Prevoyance (rated Aa3/P- 1/C+) and Banque Federale des Banques Populaires (rated Aa3/P- 1/C+) recently gained control of CIFG when they invested approximately US$1.5 billion in the financial guarantor, which was previously owned by their joint venture Natixis (rated Aa3/P-1/C). ============= G E R M A N Y ============= AHB TVMANUFACTUR: Claims Registration Period Ends Nov. 4 -------------------------------------------------------- Creditors of AHB TVmanufactur GmbH have until Nov. 4, 2008, to register their claims with court-appointed insolvency manager Jochen Schnake. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 25, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bielefeld Hall 4065 Fourth Floor Gerichtstrasse 66 33602 Bielefeld Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Jochen Schnake Ravensberger Str. 35 33824 Werther Germany The District Court of Bielefeld opened bankruptcy proceedings against AHB TVmanufactur GmbH on Sept. 30, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: AHB TVmanufactur GmbH Detmolder Str. 146 33604 Bielefeld Germany Attn: Parvis Avini, Manager Autharistr. 39 81545 Muenchen Germany ALL IN ONE: Claims Registration Period Ends November 4 ------------------------------------------------------ Creditors of ALL IN ONE International Logistics GmbH have until Nov. 4, 2008, to register their claims with court-appointed insolvency manager Thomas Luger. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.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 Esslingen Hall One Insolvency Tribunal Strohstrasse 5 73728 Esslingen 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 Luger Olgastr. 54 70182 Stuttgart Germany Tel: 0711/16553-0 Fax: 0711/16553-99 The District Court of Esslingen opened bankruptcy proceedings against ALL IN ONE International Logistics GmbH on Sept. 5, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ALL IN ONE International Logistics GmbH Attn: Alexander Sauer, Manager Stettener Hauptstr. 68/3 70771 Leinfelden-Echterdingen Germany ANLAGEN UND SCHALLSCHUTZTECHNIK: Claims Filing Period Ends Nov. 3 ----------------------------------------------------------------- Creditors of Anlagen und SchallschutzTechnik GmbH have until Nov. 3, 2008, to register their claims with court-appointed insolvency manager Torsten Gutmann. Creditors and other interested parties are encouraged to attend the meeting at 9:25 a.m. on Nov. 18, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Osterode am Harz Hall 12 Amtshof 20 37520 Osterode am Harz 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: Torsten Gutmann Lueders Partnerschaftsgesellschaft Zum Blauen See 5 31275 Hannover/Lehrte Germany Tel: 05132-8268-38 Sek. Fax: 05132-8268-96 E-mail: Gutmann@luederslaw.de The District Court of Osterode am Harz opened bankruptcy proceedings against Anlagen und SchallschutzTechnik GmbH on Sept. 15, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Anlagen und SchallschutzTechnik GmbH Am Freudenstein 1a 37412 Herzberg am Harz Germany BOIZENBURGER AKUSTIK: Claims Registration Period Ends November 3 ---------------------------------------------------------------- Creditors of Boizenburger Akustik- & Trockenbau GmbH have until Nov. 3, 2008, to register their claims with court-appointed insolvency manager Stefan Denkhaus. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on Dec. 1, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Schwerin Hall 7 Demmlerplatz 14 19053 Schwerin Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Stefan Denkhaus Jungfernstieg 30 20354 Hamburg Germany Tel: 040/ 350060 The District Court of Schwerin opened bankruptcy proceedings against Boizenburger Akustik- & Trockenbau GmbH on Sept. 19, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Boizenburger Akustik- & Trockenbau GmbH Attn: Christian Mueller, Manager Fahrweg 3 19258 Boizenburg Germany C-TEX TEXTILPFLEGE: Claims Registration Period Ends November 3 -------------------------------------------------------------- Creditors of C-Tex Textilpflege GmbH have until Nov. 3, 2008, to register their claims with court-appointed insolvency manager Diplom-Volkswirt Helge Wachsmuth. Creditors and other interested parties are encouraged to attend the meeting at 2:15 p.m. on Dec. 10, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hannover Hall 226 Second Upper Floor Service Bldg. Hamburger Allee 26 30161 Hannover Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Diplom-Volkswirt Helge Wachsmuth Alexanderstr. 2 30159 Hannover Germany Tel: 0511 325095 Fax: 0511 329934 The District Court of Hannover opened bankruptcy proceedings against C-Tex Textilpflege GmbH on Oct. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: C-Tex Textilpflege GmbH Hermann-Gebauer-Weg 3 30177 Hannover Germany CONDIS UMWELTTECHNIK: Claims Registration Period Ends Nov. 3 ------------------------------------------------------------ Creditors of Condis Umwelttechnik GmbH have until Nov. 3, 2008, to register their claims with court-appointed insolvency manager Henning Kempermann. Creditors and other interested parties are encouraged to attend the meeting at 8:30 a.m. on Dec. 2, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hannover Hall 226 Second Upper Floor Service Bldg. Hamburger Allee 26 30161 Hannover Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Henning Kempermann Hildesheimer Str. 265 30519 Hannover Germany Tel: 0511 87592495 Fax: 0511 8759100 The District Court of Hannover opened bankruptcy proceedings against Condis Umwelttechnik GmbH on Sept. 23, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Condis Umwelttechnik GmbH Lister Damm 19 30163 Hannover Germany ERSCHLIESSUNGS- UND BAUGESELLSCHAFT: Claims Filing Ends Nov. 3 -------------------------------------------------------------- Creditors of Erschliessungs- und Baugesellschaft Bargeshagen mbH have until Nov. 3, 2008, to register their claims with court- appointed insolvency manager Gerhard Brinkmann. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Dec. 10, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Rostock Hall 330 Zochstrasse 13 18057 Rostock 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: Gerhard Brinkmann Freiligrathstrasse 1 18055 Rostock Germany The District Court of Rostock opened bankruptcy proceedings against Erschliessungs- und Baugesellschaft Bargeshagen mbH on Sept. 25, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Erschliessungs- und Baugesellschaft Bargeshagen mbH Attn: Dr. Wolfgang Pieper Am Walkmueller Holz 24 18209 Bad Doberan Germany ESKADE OSTRAU: Claims Registration Period Ends November 3 --------------------------------------------------------- Creditors of Eskade Ostrau GmbH (i.G.) have until Nov. 3, 2008, to register their claims with court-appointed insolvency manager Michael Hawelka. Creditors and other interested parties are encouraged to attend the meeting at 1:00 p.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 Leipzig Hall 056 Ground Floor Enforcement Court Bernhard Goering Strasse 64 04275 Leipzig Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Michael Hawelka Nonnenstr. 37 04229 Leipzig Germany Tel: 0341/4866414 Fax: 0341/4866428 E-mail: HHH.Leipzig@t-online.de The District Court of Leipzig opened bankruptcy proceedings against Eskade Ostrau GmbH (i.G.) on Sept. 29, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Eskade Ostrau GmbH (i.G.) Sachsenstrasse 10 04749 Ostrau Germany FMH METALL: Claims Registration Period Ends November 4 ------------------------------------------------------ Creditors of FMH METALL GmbH have until Nov. 4, 2008, to register their claims with court-appointed insolvency manager Dr. Bettina E. Breitenbuecher. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on Dec. 16, 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. Bettina E. Breitenbuecher Nieritzstrasse 14 01097 Dresden Germany Web site: www.kuebler-gbr.de The District Court of Dresden opened bankruptcy proceedings against FMH METALL GmbH on Oct. 7, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: FMH METALL GmbH Jahmener Weg 1 02906 Quitzdorf am See OT Kollm Germany Attn: Marcel Froeschl, Manager geboren 1974 Heinrich-Heine-Str. 49 02977 Hoyerswerda Germany GO-PRODUKT UND SERVICE: Claims Registration Period Ends Nov. 4 -------------------------------------------------------------- Creditors of Go-Produkt und Service GmbH have until Nov. 4, 2008, to register their claims with court-appointed insolvency manager Peter-Alexander Borchardt. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on Dec. 16, 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 Reinbek Parkallee 6 21465 Reinbek 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: Peter-Alexander Borchardt Deichstrasse 1 20459 Hamburg Germany The District Court of Reinbek opened bankruptcy proceedings against Go-Produkt und Service GmbH on Oct. 9, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Go-Produkt und Service GmbH Attn: Mark Schulze, Manager Grosse Str. 34 a 22926 Ahrensbur Germany HOTEL TOELZER: Claims Registration Period Ends Nov. 4 ----------------------------------------------------- Creditors of Hotel Toelzer Hof Betriebsgesellschaft mbH have until Nov. 4, 2008, to register their claims with court-appointed insolvency manager Thomas Kloeckner. Creditors and other interested parties are encouraged to attend the meeting at 8:30 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 Wolfratshausen Meeting Halll 3/I Bahnhofstrasse 18 Wolfratshausen 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 Kloeckner Hans-Urmiller-Ring 11 82515 Wolfratshausen Germany Tel: 08171/38730-100 Fax: 08171/38730-222 The District Court of Wolfratshausen opened bankruptcy proceedings against Hotel Toelzer Hof Betriebsgesellschaft mbH on Oct. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Hotel Toelzer Hof Betriebsgesellschaft mbH Rieschstr. 21 83646 Bad Toelz Germany KAWE TRANSPORT: Claims Registration Period Ends Nov. 4 ------------------------------------------------------ Creditors of KAWE Transport GmbH have until Nov. 4, 2008, to register their claims with court-appointed insolvency manager Dr. Dieter Schmid. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 12, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Neu-Ulm Heiner-Metzger-Platz 1 Room 211/II 89231 Neu-Ulm Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Dieter Schmid Karlstr. 33 89073 Ulm Germany Tel: 0731/96880-0 Fax: 0731/96880-50 The District Court of Neu-Ulm opened bankruptcy proceedings against KAWE Transport GmbH on Sept. 26, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: KAWE Transport GmbH Ohmstr. 3 89264 Weissenhorn Germany KUECHENTRAUMWELT GMBH: Claims Registration Period Ends Nov. 4 ------------------------------------------------------------- Creditors of Kuechentraumwelt GmbH have until Nov. 4, 2008, to register their claims with court-appointed insolvency manager Joachim Voigt-Salus. Creditors and other interested parties are encouraged to attend the meeting at 10:30 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 Leipzig Hall 145 Ground Floor Enforcement Court Bernhard Goering Strasse 64 04275 Leipzig Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Joachim Voigt-Salus Jacobstrasse 25 04105 Leipzig Germany Tel: 0341/702520 Fax: 0341/7025244 E-mail: Sozietaet@Voigt-Scheid.de The District Court of Leipzig opened bankruptcy proceedings against Kuechentraumwelt GmbH on Oct. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Kuechentraumwelt GmbH Wurzner Strasse 20 04315 Leipzig Germany MALERMEISTER HAUS: Claims Registration Period Ends Nov. 4 --------------------------------------------------------- Creditors of Malermeister- Haus- und Grundstuecksservice Hohen Neuendorf GmbH have until Nov. 4, 2008, to register their claims with court-appointed insolvency manager Torben Herbold. Creditors and other interested parties are encouraged to attend the meeting at 11:45 a.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 Neuruppin Hall 325 Karl-Marx-Strasse 18a 16816 Neuruppin 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: Torben Herbold Bleichstrasse 15 17489 Greifswald Germany The District Court of Neuruppin opened bankruptcy proceedings against Malermeister- Haus- und Grundstuecksservice Hohen Neuendorf GmbH on Sept. 9, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Malermeister- Haus- und Grundstuecksservice Hohen Neuendorf GmbH Attn: Olaf Mueller, Manager Berliner Str. 48 16540 Hohen Neuendorf Germany PROCREDIT HOLDING: Fitch Assigns 'BB-' Preferred Securities Rating ------------------------------------------------------------------ Fitch Ratings has assigned Frankfurt-based ProCredit Holding AG's (PCH, 'BBB-'/Outlook Stable/'F3') issue of up to EUR60 million Tier 1 perpetual, non-cumulative, non-voting trust preferred securities an expected Long-term rating of 'BB-'. Fitch has classified the issue as Class E (100% equity, 0% debt) in accordance with its hybrids methodology. The final ratings are contingent on the receipt of final documents conforming to information already received. The perpetual, non-cumulative, non-voting trust preferred securities will be issued by ProCredit Capital Funding Trust Delaware, a Delaware statutory trust formed for the purpose of issuing the securities. The registered securities holders have no call option on the trust preferred securities. PCH may call the issue at the initial redemption date (2014) and every payment date thereafter, subject to regulatory approval. Interest on the trust preferred securities is paid, provided that PCH has sufficient distributable profit (Bilanzgewinn) on an unconsolidated basis in the prior year, and there is no order from the German banking regulator prohibiting PCH from making distributions. SETA-TRANS SPEDITIONS: Claims Registration Period Ends Nov. 4 ------------------------------------------------------------- Creditors of SETA-TRANS Speditionsgesellschaft mbH have until Nov. 4, 2008, to register their claims with court-appointed insolvency manager Ingo Thurm. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on Dec. 2, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hannover Hall 226 Second Upper Floor Service Bldg. Hamburger Allee 26 30161 Hannover Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Ingo Thurm Aegidientorplatz 2 B 30159 Hannover Germany Tel: 0511 475577-47 Fax: 0511 475577-99 The District Court of Hannover opened bankruptcy proceedings against SETA-TRANS Speditionsgesellschaft mbH on Sept. 8, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: SETA-TRANS Speditionsgesellschaft mbH Attn: Tatjana Meinert, Manager Lindhorn 60 30419 Hannover Germany WIMTEX MOEBELHANDELS: Claims Registration Period Ends Nov. 3 ------------------------------------------------------------ Creditors of Wimtex Moebelhandels GmbH have until Nov. 3, 2008, to register their claims with court-appointed insolvency manager Ulrich Pfeifer. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 24, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Coburg Meeting Room K I. Stick Auxiliary Building Coburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Ulrich Pfeifer An der Feuerwache 5 95445 Bayreuth Germany Tel: 0921/7877806 Fax: 0921/78778077 The District Court of Coburg opened bankruptcy proceedings against Wimtex Moebelhandels GmbH on Sept. 29, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Wimtex Moebelhandels GmbH Frohnlacher Str. 14 96242 Sonnefeld Germany ============= I C E L A N D ============= * Central Bank of Iceland Raises Policy Interest Rate to 18% ------------------------------------------------------------ The Board of Governors of the Central Bank of Iceland has decided to raise its policy interest rate by 6 percentage points to 18%. On October 15, 2008, the Board of Governors of the Central Bank of Iceland announced a policy rate reduction to 12%. That decision was explained by dramatically changed circumstances in the Icelandic economy: contraction was under way, further contraction was expected, and demand and expectations had plummeted. Last week the Icelandic Government and a mission from the International Monetary Fund concluded an agreement. One of the points in the agreement was that when it will be presented to the Executive Board of the Fund for its approval, which should happen in the next few days, the Central Bank was to have raised the policy rate to 18%. This has now been done. This decision has been taken with reference to the fact that, with the collapse of three banks and the harsh external measures that followed, Iceland's foreign exchange market became paralyzed. Although the situation has eased somewhat, some restrictions continue to be inevitable. It is of overarching importance to restore stability in the foreign exchange market and support the exchange rate of the krona. Although the real exchange rate is currently much lower than is justifiable for the long term, it is considered unavoidable to provide the krona with a firmer footing on the foreign exchange market through a restrictive policy rate as current restrictions are gradually removed. Negative real interest rates would weaken that footing. A contraction in demand will soon result in a surplus in the goods and services accounts. A negative output gap coupled with balance or surplus in the current account will contribute to the appreciation of the krona, given that trust has been restored in the foreign exchange market. If forecasts materialize, the policy rate will be reduced in accordance with rapidly subsiding inflation. ========= I T A L Y ========= ALITALIA SPA: CAI Approves EUR1.1 Billion Capital Increase ---------------------------------------------------------- Compagnia Aerea Italiana s.r.l., a consortium of Italian investors created to save Alitalia SpA, has approved a capital increase of up to EUR1.1 billion (US$1.38 billion) for its plan to purchase parts of the insolvent carrier, various reports say. The group previously had a capital base of just EUR160,000, Ariel David of The Associated Press relates. In a statement cited by The Wall Street Journal, CAI said its shareholders approved the consortium's conversion into a joint- stock company and announced it could seek a stock-market listing after three years of operations. The shareholders also agreed to a five-year "lock up" period, during which owners of CAI shares will only be able to sell them to fellow shareholders, to other Italian citizens or to companies owned by Italians, according to The AP. The WSJ relates CAI decided to proceed with the capital increase despite not having reached a definitive agreement on contract terms with Alitalia's unions following talks that lasted throughout Monday. Reuters says the unions reluctantly agreed to back the investor bail-out in principle last month to prevent Alitalia from being liquidated, but talks to get them to sign on to detailed terms and conditions of a new contract have stalled. According to The WSJ, CAI's board will meet tomorrow, Friday, to approve a final bid for Alitalia assets and formally present an offer to Alitalia's government-appointed commissioner, Augusto Fantozzi. Reuters meanwhile reports that Commissioner Fantozzi has warned the airline may be forced to seek a new loan to keep going if the deal with CAI is not wrapped up by mid-November, since its cash reserves are expected to last only until the start of December. As reported in the Troubled Company Reporter-Europe on Oct. 14, 2008, CAI extended the deadline on its conditional offer to relaunch the national carrier until Oct. 31, 2008. CAI had originally given a deadline of October 15 but extended it to give time for CAI to complete due diligence work. A TCR-Europe report on Sept. 30, 2008, said CAI is considering launching the new Alitalia by November 1. CAI's rescue plan calls for renaming of Alitalia and writing off between EUR1.2 billion and EUR2 billion worth of its debt. The rescue plan also aims to buy Alitalia's best performing assets and merge them with those of smaller rival Air One to relaunch it as a smaller carrier which would then seek investment from another European airline, Reuters relates. About Alitalia Based in Rome, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes, including United States, Canada, Japan and Argentina. The Italian government owns 49.9% of Alitalia. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, EUR625.6 million in 2006, and EUR494.64 million in 2007. Alitalia S.p.A. declared insolvency on Aug. 29, 2008, and filed for commencement of extraordinary administration procedure at the Tribunal of Rome. Italian Prime Minister Silvio Berlusconi has appointed Augusto Fantozzi as extraordinary commissioner. WHIRLPOOL CORP: To Close Facilities; About 5,000 Jobs at Risk ------------------------------------------------------------- Whirlpool Corporation announced earnings from continuing operations decreased 7 percent to US$163 million, or US$2.15 per diluted share, compared to US$175 million, or US$2.20 per diluted share reported during the previous year's quarter. Revenue of US$4.9 billion for the quarter increased 1 percent from the US$4.8 billion reported in the third quarter of 2007. Third-quarter earnings reflect lower global unit volumes, higher material and oil-related costs and lower asset sale gains compared to the third quarter of 2007. These items were partially offset by an income tax benefit, favorable price/mix and productivity initiatives during the quarter. The company's results included US$10 million in asset sale gains compared with US$41 million of asset sale gains and the sale of an investment in the previous year's quarter. "We are in the midst of a rapidly changing and very challenging economic environment. We have seen a sharp drop in demand in North America and Europe during the third quarter, and we do not expect demand conditions to improve in the near term," said Jeff M. Fettig, Whirlpool Corporation chairman and chief executive officer. "Our third-quarter results were negatively impacted by declining demand and record levels of cost inflation. These unfavorable factors were partially offset by improved price/mix and productivity. "The global credit crisis has had a profound negative impact on what was already a weakening and very fragile global economy. Declining home values, rising unemployment and very low consumer confidence levels will likely prolong a negative demand environment at least through the middle of 2009. "In anticipation of this environment, we have announced substantial cost and production capacity reductions to adjust our business cost structure to expected demand levels. We will reduce our global workforce by approximately 5,000 positions by the end of 2009. In addition to the four facility closures we have announced earlier this year, we are also closing our Jackson, Tennessee facility and transferring production into our Findlay, Ohio location." The company outlined these actions: A reduction in force of approximately 5,000 jobs, which is being implemented across the global organization. The reduction includes both jobs that have already been announced through plant closures along with new reductions taking place now and through the end of 2009: * The company will close its facility in Jackson, Tenn. Production from Jackson will be consolidated into the Findlay, Ohio plant. The closure will result in a reduction of approximately 500 positions. Since January 2008, the company announced the closure of plants in LaVergne, Tenn.; Oxford, Miss.; Puebla, Mexico and Reynosa, Mexico, which resulted in a reduction of approximately 2,000 jobs. * The company will reduce approximately 500 salaried positions throughout North America. These include both full time and contractor positions. * Whirlpool is implementing reductions across its international regions totaling approximately 1,900 jobs with the majority occurring in Europe. These are comprised of new reductions as well as those announced earlier this year. * These actions do not include current or potential future layoffs, which are intended to be temporary in nature. According to Fettig, the actions are expected to produce savings of approximately US$275 million on an annualized basis. "While decisions to eliminate jobs and close facilities are very difficult, they are necessary to create a cost-effective business structure. These changes will ensure that our company is proactively taking the necessary steps to adjust its cost structure and production capacity to lower expected demand levels." Third-Quarter Regional Review Whirlpool North America third-quarter sales of US$2.7 billion declined 7 percent from the prior year. U.S. industry unit shipments of major appliances (T7)* declined approximately 11 percent. Operating profit of US$74 million declined from US$132 million reported in the previous year. Significantly higher material and oil-related costs and lower industry demand were the primary factors affecting the company's third-quarter operating profit. These factors were partially offset by favorable price/mix and ongoing productivity initiatives. Based on current economic conditions, the company expects full- year 2008 U.S. industry unit shipments to decline approximately 10 percent from 2007 levels compared with its previous expectation of a 6 percent to 7 percent decline. Whirlpool Europe reported third-quarter sales of US$1.1 billion, a 9 percent increase from the prior year. Excluding the effects of currency, sales were approximately equal to the previous year. Overall industry demand during the quarter declined approximately 4 percent from the prior year. Operating profit decreased to US$52 million from US$84 million reported in the previous year. The region recorded an asset sale gain of US$9 million in the third quarter compared with a US$32 million gain in the previous year. In addition to the reduction in asset sale gains, European results were unfavorably impacted by higher material and oil-related costs, lower unit volumes and lower fixed cost absorption. These increased costs were substantially offset by favorable product price/mix during the quarter. Based on current economic conditions in the European region, the company expects full-year 2008 industry unit shipments to decline 3 percent to 4 percent from 2007 levels compared with its previous expectation of a 2 percent to 3 percent decline. Whirlpool Latin America net sales increased 22 percent to US$1.0 billion. Sales results reflect continued strong demand for the company's innovative products in the region and favorable foreign currency translation. Excluding currency translation, sales for appliances and compressors increased approximately 11 percent. Operating profit totaled US$116 million in the third quarter compared with US$103 million in the prior year. Increased appliance unit shipments, regional tax incentives, favorable price/mix and productivity were positive factors during the third quarter. These factors were mitigated by increased material and oil-related costs and the non-recurrence of a non-income based tax credit of US$12 million. Based on current economic conditions in Latin America, the company expects full-year 2008 shipments to rise 5 percent to 8 percent. Whirlpool Asia reported third-quarter sales of US$137 million, increasing 11 percent from the prior year. Excluding the impact of currency, sales increased approximately 16 percent predominantly due to higher unit volume. Operating profit during the quarter was break even. The year-over-year increase in operating profit resulted from higher volume and favorable trends in productivity and product price/mix. These favorable items were partially offset by higher material costs. The company continues to expect full-year 2008 industry unit shipments to increase 5 percent to 10 percent from 2007 levels. Outlook The additional actions the company is undertaking to reduce costs across its global operations will result in additional restructuring expenses. For the full-year 2008, the company now anticipates recording restructuring expenses of approximately US$170 million compared with its previous estimate of US$100 million. "Though we are in a challenging and uncertain economic environment, Whirlpool remains very well positioned to overcome these challenges and further strengthen our global operations," said Fettig. "The actions we are taking reflect the strong operating disciplines that are required to succeed in any environment. We will rapidly make the necessary changes to adapt to this economic environment and will continue to invest in the right areas that are key to our future success." For the full-year 2008, Whirlpool now expects earnings per diluted share from continuing operations to be in the US$5.75 to US$6.00 range compared with its previous estimate of US$7.00 to US$7.50 per share. Based upon its revised earnings expectations and industry outlook, the company expects to generate free cash flow of US$0 to US$50 million for the full year compared to its previous estimate of US$500 to US$550 million. Given the challenging economic conditions and its revised free cash flow outlook, the company has suspended its share repurchase program. * T7 refers to the following household appliance categories: washers, dryers, refrigerators, freezers, dishwashers, ranges and compactors. At September 30, 2008, Whirlpool's consolidated condensed balance sheets showed US$14.5 billion in total assets, US$10.5 billion in total liabilities and US$3.9 billion in total stockholders' equity. About Whirlpool Corporation Whirlpool Corporation (NYSE: WHR) -- http://www.whirlpoolcorp.com -- is a global manufacturer and marketer of major home appliances. The company has principal manufacturing operations and marketing activities in North and South America, Europe, and Asia. Whirlpool's primary brand names -- KitchenAid, Roper, Bauknecht, Ignis, Brastemp, Consul and its global Whirlpool brand -- are marketed in more than 170 countries worldwide. In Europe, the company has manufacturing sites in France, Italy, Germany, Sweden, Slovakia and Poland. =================== K A Z A K H S T A N =================== ALMA LTD: Creditors Must File Proofs of Claim by December 9 ----------------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Alma insolvent. Creditors have until Dec. 9, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Sain Str. 8-94 Almaty Kazakhstan Tel: 8 777 293 23-15 BUILD INDUSTRIES: Creditors' Claims Deadline Slated for Dec. 9 -------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Build Industries insolvent. Creditors have until Dec. 9, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Micro District Taugul-1, 57-7 Almaty Kazakhstan Tel: 8 (7272) 55-10-08 8 777 396 92-07 BYT LLP: Creditors' Claims Filing Period Ends December 9 -------------------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Byt insolvent. Creditors have until Dec. 9, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Aktube Altynsarin Str. 31 Aktobe Aktube Kazakhstan Tel: 8 (3132) 21-30-32 DJEYRAN LLP: Creditors Must Register Claims by December 9 --------------------------------------------------------- The Specialized Inter-Regional Economic Court of Mangistau has declared LLP Djeyran insolvent. Creditors have until Dec. 9, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Mangistau Micro District 28, 25-12 Aktau Mangistau Kazakhstan Tel: 8 (7292) 40-03-12 8 701 416 22-23 KAZSAK LLP: Creditors' Claims Due on December 9 ----------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Kazsak insolvent on Aug. 4, 2008. Creditors have until Dec. 9, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Bogenbai batyr Str. 52 Almaty Kazakhstan Tel: 8 702 108 00-34 PROIZVODSTVENNO-ECOLOGICHESKOYE: Creditors' Claims Due on Dec. 9 ---------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Proizvodstvenno-Ecologicheskoye Predpriyatiye Moskovskoi Rayonnoi Administratsiyi (Manufacturing-Ecological Enterprise of Moscow Regional Administration) declared insolvent. Creditors have until Dec. 9, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Sain Str. 8-94 Almaty Kazakhstan Tel: 8 777 293 23-15 PROMSERVICE KOMPANIYASY: Claims Deadline Slated for Dec. 5 ---------------------------------------------------------- LLP Promservice Kompaniyasy has declared liquidation. Creditors have until Dec. 5, 2008, to submit written proofs of claims to: LLP Promservice Kompaniyasy Kabanbai batyr Str. 164 Almaty Kazakhstan PUSK LLP: Creditors' Claims Filing Period Ends Dec. 5 ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Pusk insolvent on April 9, 2008. Creditors have until Dec. 5, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Rayimbek Str. 12 Erkin Talgarsky Almaty Kazakhstan Tel: 8 701 558 34-19 SPETS MASH: Creditors Must Register Claims by December 5 -------------------------------------------------------- LLP Spets Mash Export has declared liquidation. Creditors have until Dec. 5, 2008, to submit written proofs of claims to: LLP Spets Mash Export Ospanov Str. 52-91 Aktobe Aktube Kazakhstan VILUS LLP: Creditors Must File Proofs of Claim by Dec. 9 -------------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Vilus insolvent. Creditors have until Dec. 9, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Bogenbai batyr Str. 52 Almaty Kazakhstan Tel: 8 702 108 00-34 * Kazakhstan Government to Inject US$5 Billion Into Four Banks -------------------------------------------------------------- The Government of Kazakhstan, in cooperation with the National Bank of Kazakhstan and the FMSA, unveiled a set of comprehensive proposals to further strengthen the capitalization and liquidity of the Kazakhstan banking sector. Since the summer of 2007, the global financial system has been undergoing a severe downturn. Despite a lack of access to external debt markets, the Kazakhstan banking sector has successfully overcome the external challenges and has been able to meet its external and domestic debt redemptions. During this period, the Government and the National Bank have supported the banking sector extensively. The recent further contraction of liquidity and declines in share prices have caused a steady deterioration in the quality of banking assets (hence the need to build additional loan loss reserves), a reduction in lending to the real economy and ultimately, a decline in economic activity of local enterprises. In these circumstances, the coordinating and supportive role of the government is crucial, as evidenced by the actions taken by governments and regulators around the world. By supporting the banks, the state expects the banks to be in a position to continue lending to the domestic economy, increase financing to the SME sector, and maintain acceptable rates on mortgages to single property owner-occupied borrowers. In accordance with recommendations from the FMSA, the Government has approached the shareholders of four systemically important banks, namely Alliance Bank, BTA Bank, Halyk Bank and Kazkommertsbank, with a request to provide additional capital needed to further enhance the capital adequacy of those banks. The Government intends to discuss the implementation of similar proposals with the foreign majority shareholders of ATF and Bank CenterCredit. The total amount of capital injected under this plan will take the form of common and preferred shares for up to US$5 billion. The right to subscribe to common and preferred stock will be offered initially to the existing shareholders in view of them providing sufficient capital to sustain financial stability of these banking institutions. To the extent the existing shareholders forego the opportunity to inject adequate capital into the banks, the Government stands ready to become the shareholder of banks. The Government does not intend to own or control a majority of the share capital of any bank. More specifically, it is envisaged that the Government will take an equity stake of 25% in the four aforementioned banking institutions and will provide any additional capital in the form of preferred stock and subordinated debt. The Government has asked the National Well-being Fund SamrukKazyna to represent the Government as a potential new shareholder in the aforementioned banks. To provide the means to purchase these securities, SamrukKazyna will receive as capital US$5billion from the National Fund. Finally, the Government does not intend to remain a long term provider of capital to these banks, and will look to exit as a shareholder within medium-term perspective depending on the conditions in the international capital markets. At that time, any shares owned by the Government will be disposed of in a market-conform way. The proposals would provide the banks both with capital as well as liquidity to meet any debt repayments that may come due. The National Fund will provide SamrukKazyna with another US$5 billion of liquidity by subscribing to a bond which will be issued by SamrukKazyna. These funds are intended to be directed towards lending to the real economy, including to important projects and sectors such as SMEs and infrastructure projects. Initially, these funds will be deposited with selected banks and over time, provide support to the real economy while alleviating the pressure on banks to roll-over existing loans. The proposed plans also include liquidity support measures provided by the National Bank of Kazakhstan, which will be made available to the entire banking system. The National Bank will move to support current and short-term liquidity of banks by offering additional sources, such as lower minimum reserve requirements and expansion of the list of financial instruments acceptable as collateral against repo-based loans. Finally, the Distressed Asset Fund, designed to help improve the average quality of the loan portfolios of banks, will begin operations shortly. The Fund will be capitalized with US$1 billion. =================== K Y R G Y Z S T A N =================== FELLSTOCK TRADE: Creditors Must File Claims by Nov. 26 ------------------------------------------------------ LLC Fellstock Trade Ltd. has shut down. Creditors have until Nov. 26, 2008, to submit written proofs of claim to: LLC Fellstock Trade Ltd. Maldybayev Str. 40a-38 Bishkek Kyrgyzstan ================= L I T H U A N I A ================= BITE LIETUVA: S&P Junks Credit Rating to CCC- on Default Risks -------------------------------------------------------------- Standard & Poor's Ratings Services has lowered its long-term corporate credit rating on Lithuania-headquartered mobile telecommunications operator UAB Bite Lietuva and its 100% owner Bite Finance International B.V. to 'CCC-' from 'B-' as a result of increasing concerns regarding liquidity and covenant headroom. The outlook is negative. At the same time, S&P lowered its debt rating on the EUR190 million senior secured floating-rate notes due 2014 to 'CCC-' from 'B-' and its debt rating on the EUR110 million subordinated floating-rate notes due 2017 to 'C' from 'CCC', both issued by Bite Finance International. "The downgrades reflect a substantial risk of default in 2009," said S&P's credit analyst Michael O'Brien. "They are linked to a further reduction in liquidity headroom as Bite will likely draw down the bulk of the remaining undrawn EUR12 million portion of its EUR30 million revolving credit facility over the coming months and use its low cash balance of EUR2.3 million at Sept. 30, 2008, to support its business needs and make interest payments. "Covenant headroom is also extremely tight on Bite's revolving credit facility, with the possibility of a breach within the next eight to 12 months. This leaves no margin for underperformance in Bite's business plan and calls for very tight control over capital expenditures." On the positive side, Bite hopes to rapidly achieve positive EBITDA in its growing Latvian business, while continuing to maintain its established market position in the Lithuanian market. The ratings could be further lowered -� with a material risk of lowering to 'D' (default) during 2009. Such a downgrade would arise if the group's liquidity were to deteriorate further over the next six months, ultimately proving to be insufficient, or if the group were to breach its financial maintenance covenant. Alternatively, the outlook could revert to stable or the rating could be raised if Bite shows an improving operating performance providing protection of its liquidity and better visibility on the achievement of positive FOCF on a consolidated basis and if the group successfully renegotiates the debt to EBITDA financial maintenance covenant on its revolving credit facility to avoid a potential breach. ===================== N E T H E R L A N D S ===================== AEGON NV: Obtains EUR3BB Core Capital From Vereniging Shareholder ----------------------------------------------------------------- Alex Wynaendts, CEO of Aegon N.V., stated he welcomes an additional capital buffer that the Dutch State has provided via Vereniging AEGON in this time of uncertainty and unprecedented economic turmoil. Aegon said it has secured EUR3 billion of additional core capital from the Dutch State via its largest shareholder, Vereniging Aegon. Aegon will issue 750 million non- voting securities at EUR4 per security to Vereniging Aegon. In turn, Vereniging Aegon will be funded on back-to-back terms and conditions by the Dutch State. Aegon expects the transaction to close before the end of November 2008. Aegon believes that, given today's market levels and the ongoing uncertainty regarding the financial and economic environment, it is prudent to reinforce its capital buffer to a level substantially in excess of its AA rating requirements. This additional core capital complements Aegon's previously announced acceleration of its risk reduction and capital release strategy, the company said. The structure provides Aegon with security in the event that markets deteriorate significantly and flexibility to avoid excessive overcapitalization in the event that markets stabilize. These actions, combined with the decision to forego the final dividend for 2008 will enable Aegon to enter 2009 with a significantly enhanced buffer. Aegon's ability to repurchase securities minimizes potential future dilution of common shareholders. Aegon's overall ownership structure is not changing. Aegon's move follows an announcement on October 9 by the Dutch government that it would make EUR 20 billion of capital available to companies in the financial sector that are fundamentally sound and viable. Alex Wynaendts, CEO of Aegon, stated: ". . . Together with the steps we are taking to release capital and further reduce risk from our businesses, this allows us to enter 2009 with a significantly reinforced capital position and to focus on executing our strategy. There should be no doubt whatsoever about Aegon's ability to fulfill its long-term obligations. Safeguarding the trust and confidence of our shareholders, customers and employees remains our main priority." Preliminary Third Quarter Results Aegon will announce its results for the third quarter of 2008 as planned on Thursday 6 November. These are expected to include: * Underlying earnings before tax of approximately EUR500 million, mainly affected by lower equity markets and unfavorable mortality experience. * Net loss for the quarter of approximately EUR350 million. -- Underperformance of fair value items to total approximately EUR400 million pre-tax. -- Total impairment charges of approximately EUR400 million pre-tax. * Shareholders' equity including revaluation reserve of approximately EUR9.4 billion at the end of third quarter. -- Shareholders' equity, excluding revaluation reserve, will account for approximately 71% of capital base -� above target. -- Decline in revaluation reserve estimated at EUR2.5 billion, driven by widening in credit spreads. -- Excess capital in operating units of approximately EUR300 million above S&P AA rating requirements. Aegon has a capital surplus of EUR 5 billion, equivalent to a solvency ratio of 160%, under the European Insurance Group Directive. Dividend Aegon will forego a final dividend for 2008. Consequently, the dividend for this year will total EUR0.30 a share -� an amount already paid out to shareholders as an interim dividend earlier in September. Additional Core Capital Financial Details The 750 million non-voting securities issued to Vereniging Aegon will be funded on back-to-back terms and conditions by the Dutch State. The new securities will rank equal to common shares (pari passu), but will carry no voting rights. This structure is designed to avoid dilution of existing common shareholders. Before Oct. 10, 2009, Aegon has the right to repurchase 250 million of the securities at a price between EUR4 and EUR4.52 per security, depending on Aegon's share price and the date of the repurchase, and after that date at EUR6 per security. Aegon may at any time repurchase the remaining 500 million securities at EUR6 per security (equivalent to 150% of the original issue price). Alternatively, after three years, Aegon may choose to convert these securities into common shares on a one-for-one basis. In this situation, the Dutch State may opt for repayment either in cash (at the original issue price of EUR4) or in shares. Aegon retains full discretion over its policy regarding dividends paid on common shares. The coupon on the non-voting securities will be paid only if a dividend is also paid to holders of common shares. As the holder of the non-voting securities, Vereniging Aegon will receive either an annual coupon of EUR0.34 per security or, if higher, an amount linked to the value of the dividend paid on Aegon common shares. This amount has been fixed at 110% for 2009, rising to 120% for 2010 and 125% for 2011 and beyond. The coupon is not tax deductible. Vereniging Aegon will use income from the non-voting securities to service the loan from the Dutch State. Governance As part of the transaction, the Dutch state will nominate two representatives to Aegon's Supervisory Board. These representatives will be members of AEGON�s Audit, Compensation and Nominating Committees. Shareholders will be asked to approve the appointments at Aegon's next General Meeting of Shareholders. Pending approval, the State representatives will attend meetings as observers. Approval from the State representatives will be required for certain decisions, including share repurchases, changes to Aegon's executive remuneration policy and any acquisitions or divestments with a value of one quarter or more of Aegon's issued capital and reserves. Remuneration Aegon's Supervisory Board will review the remuneration policy for the Executive Board and senior management to ensure that it is fully aligned with new international standards. All members of Aegon Executive Board forego all variable income, either in cash, options or shares, relating to the performance in 2008 and limit exit-arrangements to a maximum of one year�s fix'd salary. Seeking Capital Injection from Government As reported by the Troubled Company Reporter-Europe on Oct. 28, 2008, Aegon announced a decision to consider tapping a EUR20 billion (US$25.17 billion) fund established by the Netherlands to shore up its financial institutions. News of the possible capital infusion sent Aegon's shares -- which has fallen 68% so far this year -- down 16% Friday last week, according to The Wall Street Journal. The Journal said the company derives about two-thirds of its profits from the U.S. Aegon said earlier this month it would have a EUR275 million third-quarter hit to net income from credit impairments, in part from exposure to Lehman Brothers Holdings Inc. and Washington Mutual Inc., The Journal recalled. About Vereniging Aegon Vereniging Aegon is Aegon N.V.'s largest shareholder and represents approximately 34% of the company's existing voting rights. Under normal circumstances the Vereniging exercises 24% of Aegon's existing voting rights. Vereniging Aegon's sole purpose is to safeguard the long-term interests of all Aegon stakeholders �- its customers, employees, shareholders and business partners. About Aegon NV Headquartered in The Hague, Netherlands, Aegon N.V. -- http://www.aegon.com/-- operates as a life insurance and pension company. The company's businesses focus on life insurance, pensions, savings and investment products. The AEGON Group is also active in accident, supplemental health, general insurance and some limited banking activities. The company's major markets are the United States, the Netherlands and the United Kingdom. In addition, AEGON operates in over 20 other markets in the Americas, Europe and Asia. The AEGON Group has four geographic segments: the Americas (which include the United States, Canada and Mexico), the Netherlands, the United Kingdom, and Other Countries, which include Hungary, Spain, Taiwan, China, Poland and a number of other countries with smaller operations. In December 2007, AEGON USA acquired 100% of the shares of Merrill Lynch Life Insurance Company and ML Life Insurance Company of New York. * Moody's Comments on Dutch Government's Support to Banks --------------------------------------------------------- Moody's Investors Service commented on the announcements made by the Dutch Ministry of Finance and the Dutch Central Bank regarding the measures taken to restore stability and confidence in the Dutch financial and banking system. Moody's views these announcements as a very positive development helping the banks to restore liquidity and capitalization. Moody's believes that these actions will provide greater stability in the Dutch financial system. However, since external support is already incorporated in the large banks' ratings, the rating agency does not expect wholesale rating changes in the sector due to the announcements. In addition to the announcement made on October 9, 2008, the Dutch authorities announced on October 23, the formation of a Credit Guarantee Scheme specifically aimed at Dutch banks. The EUR200 billion scheme will be in place from October 23, 2008, until December 31, 2009. It will be operated by the Dutch State Treasury Agency in order to guarantee debt instruments issued by eligible Dutch banks. The Dutch Credit Guarantee scheme is aimed at banks headquartered in the Netherlands and with substantial business in the Netherlands. The Dutch Central Bank will be consulted upon application to determine the bank's solvency, taking into account the requirements of the Financial Markets and Service Authority (FMSA) as well as its liquidity profile in relation to the loans. The scheme covers both interest and principal and applies to non- complex debt instruments denominated in Euros, US dollars or British Pounds with the following characteristics: (i) senior unsecured debt instruments: * Certificates of deposits * Commercial paper or * Fixed or floating rate bullet medium term notes (ii) issuance on or after October 23, 2008, until December 31, 2009 (iii) maturity of more than three months and no more than three years (iv) the terms of the debt instruments may not include any cross default, cross-acceleration of default, or any call option on the principal (v) the issuance of guaranteed debt for any institution is limited to the amount of existing debt falling due between October 23, 2008, and December 31, 2009. The pricing of the guarantee scheme will depend on the maturity of the debt instrument as well as on the creditworthiness of the banks involved for debt exceeding a maturity of one year. On October 9, 2008, the Dutch authorities announced two measures to support both capitalizations and liquidity positions of all financial enterprises (banks and insurance companies) in the Netherlands supporting the solvency of Dutch financial institutions at levels deemed necessary by the Supervisor on a case by case basis. EUR20 billion have been made immediately available, including EUR10 billion provided to ING, as announced on October 19, 2008. Furthermore, the Dutch Central Bank declared that it would grant special loans to individual financial enterprises against adequate collateral, if and as long as necessary. Moody's Perspective While to varying degrees, systemic support already had been incorporated into our ratings for the larger banks the provision of liquidity and capital by government actions will result in reduced downward rating pressure on banks in need of liquidity support. However, rating actions (positive or negative) will continue to be influenced by underlying credit and franchise fundamentals utilizing Moody's established bank rating methodology and will anticipate franchise strength following the scaling back of these support programs when the financial crisis abates. The exception will be for obligations of banks for which there is clear substitution of risk by the government for that of the bank, as in the case of explicit guarantees. Here, Moody's will de-link the risk assessment from the bank and apply the appropriate government rating to the specific obligations. On October 8, Moody's released a Special Comment on its approach towards incorporating government support for banking systems into its ratings titled "Assessing the Rating Implications for Banks of the Current Market Turmoil and Governmental Interventions to Support Their Banking Systems" and on October 14, Moody's released another Special Comment on the coordinated European response to the crisis titled "Actions by European Sovereigns provide substantial de-risking for large European banks". ============= R O M A N I A ============= * BUCHAREST: S&P Shifts Outlook to Neg.; Holds BB+ Credit Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services has revised its outlook on the Romanian City of Bucharest to negative from stable, following a similar action on the sovereign. At the same time, the 'BB+' long-term issuer credit rating was affirmed. "We revised the outlook as a result of our downgrade of the sovereign," said S&P's credit analyst Jean-Louis Renaud. The rating reflects the city's high debt burden, need to enhance both debt and liquidity management, low financial flexibility, and obstacles in implementing key infrastructure projects. These constraints are mitigated by Bucharest's strategic position as Romania's capital, its consistently sound operating balances, and strong revenue growth. The outlook is negative because the outlook on Romania is negative. The evolution of the ratings on Bucharest will follow those on Romania. "The outlook on Bucharest could be revised to stable if the outlook on Romania is revised to stable or positive, assuming that the city's fundamentals do not fall below our initial expectations," said Mr. Renaud. "The ratings would be lowered either in the event of a further drop in the sovereign rating or in the event of a deterioration in the city's financial profile." =========== R U S S I A =========== BOLSHERECHENSKY REPAIR: Creditor Must File Claims by November 17 ---------------------------------------------------------------- Creditors of LLC Bolsherechenskiy Repair Works have until Nov. 17, 2008, to submit proofs of claims to: A. Volokitin Temporary Insolvency Manager Post User Box 3320 656037 Barnaul Russia The Arbitration Court of Altayskiy will convene at 9:15 a.m. on April 1, 2009, to hear bankruptcy supervision procedure on the company. The case is docketed under Case No. AO3-9499/2008B. The Debtor can be reached at: LLC Bolsherechenskiy Repair Works Yuzhny pereulok 1 Troitskoe Altayskiy Russia FENIKS-MASH-KHIM: Creditors Must File Claims by November 17 ----------------------------------------------------------- Creditors of LLC Feniks-Mash-Khim have until Nov. 17, 2008, to submit proofs of claims to: S. Toropova Temporary Insolvency Manager Post User Box 59 603086 Nizhny Novgorod Russia The Arbitration Court of Nizhegorodskaya commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. A43-21748/2008-36-182. The Debtor can be reached at: LLC Feniks-Mash-Khim Territory of OJSC Dzerzhinsk-Khim-Mash Dzerzhinsk Nizhegorodskaya Russia KRAS-WOOD-T: Creditors Must File Claims by December 17 ------------------------------------------------------ Creditors of LLC Kras-Wood-T (Forestry) have until Dec. 17, 2008, to submit proofs of claims to: V. Kustikov Insolvency Manager Post User Box 13082 660069 Krasnoyarsk Russia The Arbitration Court of Krasnoyarskiy commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A33-5272/2008. The Debtor can be reached at: LLC Kras-Wood-T Dachnaya Str.5 Taseyevo Russia KUZNETSK-AVTO-YUG: Bankruptcy Hearing Set Feb. 11, 2009 ------------------------------------------------------- The Arbitration Court of Kemerovskaya will convene on Feb. 11, 2009, to hear bankruptcy proceedings on CJSC Kuznetsk-Avto-Yug (Freight Transportation). The case is docketed under Case No. A27�8602/2007�4. The Insolvency Manager is: A. Shestakov Apt.5 Lesnoy pereulok 4 634041 Tomsk Russia The Debtor can be reached at: CJSC Kuznetsk-Avto-Yug Proezd Burkatskogo 30 Novokuznetsk 654005 Kemerovskaya Russia SARATOVSKIY CERAMIC: Creditors Must File Claims by November 17 -------------------------------------------------------------- Creditors of LLC Saratovskiy Ceramic Materials Plant have until Nov. 17, 2008, to submit proofs of claims to: L. Nikonov Insolvency Manager Barnaulskaya Str. 34 410049 Saratov Russia The Arbitration Court of Saratovskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-57-2172/08-40. The Debtor can be reached at: LLC Saratovskiy Ceramic Materials Plant Peschanoumetskaya Str. 10 Saratov Russia SIB-VTOR-MET CJSC: Creditors Must File Claims by December 17 ------------------------------------------------------------ Creditors of CJSC Sib-Vtor-Met have until Dec. 17, 2008, to submit proofs of claims to: O. Kosilova Insolvency Manager Post User Box 69 656015 Barnaul Russia The Arbitration Court of Altayskiy commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. AO3-1894/08B. The Debtor can be reached at: CJSC Sib-Vtor-Met Kalinina Prospect 28 656037 Barnaul Russia SIBIR-PROM-SINTEZ LLC: Creditors Must File Claims by November 17 ---------------------------------------------------------------- Creditors of LLC Sibir-Prom-Sintez (Chemical Industry) have until Nov. 17, 2008, to submit proofs of claims to: Yu. Zlobin Insolvency Manager Pochtovy pereulok 12 659300 Biysk Russia The Arbitration Court of Altayskiy commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. AO3-8624/2008B. The Debtor can be reached at: LLC Sibir-Prom-Sintez Biysk Altayskiy Russia SIBIRSKAYA CONSTRUCTION: Creditor Must File Claims by Nov. 17 ------------------------------------------------------------- Creditors of CJSC Sibirskaya Construction Company have until Nov. 17, 2008, to submit proofs of claims to: M. Bogatova Insolvency Manager Post User Box 3084 650024 Kemerovo Russia The Arbitration Court of Kemerovskaya will convene on Feb. 9, 2009, to hear bankruptcy proceedings. The case is docketed under Case No. A27 � 8970\2008�4. The Debtor can be reached at: CJSC Sibirskaya Construction Company Avtotransportnaya Str. 45 Novokuznetsk Kemerovskaya Russia TOMSK-PODVOD-TRUBOPROVOD-STROY: Claims Filing Ends November 17 -------------------------------------------------------------- Creditors of LLC Tomsk-Podvod-Truboprovod-Stroy Management Company (TIN 7005005654) have until Nov. 17, 2008, to submit proofs of claims to: S. Yedygenov Temporary Insolvency Manager Office 1 5 Armii Str. 4 Omsk Russia The Arbitration Court of Tomskaya will convene on Mar. 27, 2009, to hear bankruptcy supervision procedure on the company. The case is docketed under Case No. A67�4647/08. The Debtor can be reached at: LLC Tomsk-Podvod-Truboprovod-Story Office 5 Prospect Frunze 109a 634021 Tomsk Russia VOLGO-MET LLC: Astrakhan Bankruptcy Hearing Set December 23 ----------------------------------------------------------- The Arbitration Court of Astrakhan will convene at 2:00 p.m. on Dec. 23, 2008, to hear bankruptcy supervision procedure on LLC Volga-Met (Plastic) (TIN 3016043679, PSRN 1043001305698). The case is docketed under Case No. A06-477/2008-11. The Temporary Insolvency Manager is: T. Bushneva Kurinskaya Str. 8 4000081 Volgograd Russia The Debtor can be reached at: LLC Volga-Met Sadovskikh Str. 17 414011 Astrakhan Russia VOLOGRA-LES-PRODUKT: Creditors Must File Claims by November 17 -------------------------------------------------------------- Creditors of LLC Vologda-Les-Produkt (Forestry) have until Nov. 17, 2008, to submit proofs of claims to: O. Goreva Insolvency Manager Office 14 Gertsena Str. 15 610002 Kirov Russia The Arbitration Court of Vologodskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A13�4650/2008. The Debtor can be reached at: LLC Vologda-Les-Produkt Fedotovo Vologodskaya Russia VTB BANK: Inks Memorandum of Cooperation with BIDV -------------------------------------------------- VTB Bank and Bank for Investment and Development of Vietnam on Oct. 28, signed a Memorandum of Cooperation in the presence of Nguyen Minh Triet, President of the Socialist Republic of Vietnam. The document provides for stronger cooperation in trade finance, investment projects support, treasury operations and operations in international capital markets, as well as support and assistance in operation and development of Vietnam-Russia Bank. The Central Bank of the Russian Federation had earlier authorized VRB to open a representative office in Moscow, the bank's first step towards a subsidiary in Russia to be launched in second quarter of 2009. VRB Office in Russia shall promote Russian-Vietnamese business and banking relations, increase awareness of business community in both countries on available banking services and products offered by VRB. One of its main tasks will be the participation of VRB in servicing projects in trade, economic and investment cooperation between the Russian Federation and the Socialist Republic of Vietnam. About OJSC VTB Bank Headquartered in St. Petersburg, Russia, OJSC VTB -- http://www.vtb.com/-- is a leading Russian universal banking group offering a wide range of banking services and products across Russia, certain CIS countries and selected countries in Western Europe, Asia and Africa. * * * OJSC VTB continues to carry a D bank financial strength rating from Moody's Investors Service. The rating was placed in November 2007. =========== S W E D E N =========== CARNEGIE INVESTMENT: Government Raises Loan Offer to SEK5 Billion ----------------------------------------------------------------- Sveriges Riksbank, the Swedish Central Bank, confirmed Tuesday that it will raise its loan to Carnegie Investment Bank AB from SEK1 billion to SEK5 billion, various reports say. On Monday, Carnegie's shares plunged 50% after news on the increased loan from the central bank spread. Carnegie said Tuesday the "larger credit facility enhances financial flexibility, the reports note. This does not imply that Carnegie will use the entire facility." "The Riksbank is prepared to provide the liquidity that is needed to safeguard the stability of the financial system," the reports quoted deputy Riksbank governor Lars Nyberg as saying. The central bank and the Swedish Financial Supervisory Authority said Carnegie was solvent, the reports relate. The financial watchdog was also to review Carnegie's internal management and control "concerning possible deficits in handling of large credit exposures." Founded in 1803 as a trading company, Carnegie Investment Bank AB is engaged in stockbroking, equity analysis, equity trading, asset management and advice on corporate acquisitions in the Nordic region. ===================== S W I T Z E R L A N D ===================== AIR OPERATING: Creditors Must File Proofs of Claim by Nov. 7 ------------------------------------------------------------ Creditors owed money by JSC AOP Air Operating are requested to file their proofs of claim by Nov. 7, 2008, to: Dufourstrasse 121 9001 St.Gallen Switzerland The company is currently undergoing liquidation in St.Gallen. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Sept. 4, 2008. DAO LAFOES: Deadline to File Proofs of Claim Set Dec. 18 -------------------------------------------------------- Creditors owed money by LLC Dao Lafoes are requested to file their proofs of claim by Dec. 18, 2008, to: Maria Clara Concalves Ferreira de Sousa LLC Dao Lafoes Zentrumstrasse 14 5607 Hagglingen Switzerland The company is currently undergoing liquidation in Hagglingen. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Aug. 19, 2008. GINGER FASHION: Creditors Have Until Dec. 15 to File Claims ----------------------------------------------------------- Creditors owed money by LLC GINGER Fashion are requested to file their proofs of claim by Dec. 15, 2008, to: LLC Duss Treuhand Baarerstrasse 86/Mail Box 6302 Zug Switzerland The company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Aug. 27, 2008. IMMOBILIEN TELLEN: Proofs of Claim Filing Deadline is Nov. 21 ------------------------------------------------------------- Creditors owed money by JSC Immobilien, Tellen are requested to file their proofs of claim by Nov. 21, 2008, to: Nelli Grubenmann-Wyss Eggerstandenstrasse 24 9050 Appenzell Switzerland The company is currently undergoing liquidation in Gaiserwald. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Aug. 29, 2008. SPAGOMED JSC: Creditors' Proofs of Claim Due by Dec. 23 ------------------------------------------------------- Creditors owed money by JSC Spagomed are requested to file their proofs of claim by Dec. 23, 2008, to: Schwendigrat 3453 Heimisbach Switzerland The company is currently undergoing liquidation in Trachselwald. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on June 10, 2008. WABIC LLC: Nov. 28 Set as Deadline to File Claims ------------------------------------------------- Creditors owed money by LLC Wabic are requested to file their proofs of claim by Nov. 28, 2008, to: Brttenweg 11 8052 Zurich Switzerland The company is currently undergoing liquidation in Zurich. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Aug. 11, 2008. ============= U K R A I N E ============= ARNIKA-GROUP LLC: Creditors Must File Claims by November 2 ---------------------------------------------------------- Creditors of LLC Arnika-Group (code EDRPOU 30963993) have until Nov. 2, 2008, to submit proofs of claim to: I. Gusar Liquidator/Insolvency Manager P.O. Box 29 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on July 8, 2008. The case is docketed as 15/881-b. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Arnika-Group General Naumov Str. 23-b Kiev Ukraine ARTEKS LLC: Creditors Must File Claims by November 2 ---------------------------------------------------- Creditors of LLC Arteks (code EDRPOU 30018588) have until Nov. 2, 2008, to submit proofs of claim to: The Economic Court of Kiev Komintern Str. 16 01032 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Oct. 1, 2008. The case is docketed as B 11/275-08. The Debtor can be reached at: LLC Arteks Kiev Highway Str. 1 Ivankov Kiev Ukraine DONBASS-ONLINE LLC: Creditors Must File Claims by November 2 ------------------------------------------------------------ Creditors of LLC Donbass-Online (code EDRPOU 33913719) have until Nov. 2, 2008, to submit proofs of claim to: Maxim Kosinevsky Temporary Insolvency Manager Ap. 40 April 12th Str. 22 Kharkov Ukraine The Economic Court of Kharkov commenced bankruptcy supervision procedure on the company on Sept. 9, 2008. The case is docketed as B-24/171-08. The Economic Court of Kharkov Derzhprom 8th Entrance Svoboda Square 5 61022 Kharkov Ukraine The Debtor can be reached at: LLC Donbass-Online Kotlov Str. 19 61052 Kharkov Ukraine ENERGY TECHNICAL: Creditors Must File Claims by November 5 ---------------------------------------------------------- Creditors of LLC Energy Technical Resource (code EDRPOU 32142127) have until Nov. 5, 2008, to submit proofs of claim to: Alexander Tereschenko Temporary Insolvency Manager Ap. 1 Frunze Str. 113-b 36002 Poltava Tel/Fax: 8(0532)59-22-88 The Economic Court of Poltava commenced bankruptcy supervision procedure on the company on Aug. 7, 2008. The case is docketed as 4/68. The Economic Court of Poltava Zigin Str. 1 36000 Poltava Ukraine The Debtor can be reached at: LLC Energy Technical Resource Churayevny Str. 3/2 Poltava Ukraine NOVAYA ODESSA: Creditors Must File Claims by November 2 ------------------------------------------------------- Creditors of OJSC Novaya Odessa Breadreceiving Enterprise (code EDRPOU 34808405) have until Nov. 2, 2008, to submit proofs of claim to: Irene Zakharchenko Temporary Insolvency Manager Ap. 53 Oktiabrsky Lane 325\4 54052 Nikolaev Ukraine Tel: (0512)63-57-72 The Economic Court of Nikolaev commenced bankruptcy supervision procedure on the company on Sept. 9, 2008. The case is docketed as 5/410/08. The Economic Court of Nikolaev Admiralskaya Str. 22 54009 Nikolaev Ukraine The Debtor can be reached at: OJSC Novaya Odessa Breadreceiving Enterprise Resheteyev Str. 79 Novaya Odessa Nikolaev Ukraine PROGRESS-GNAROVSKAYA: Creditors Must File Claims by November 2 -------------------------------------------------------------- Creditors of LLC Progress-Gnarovskaya (code EDRPOU 32607563) have until Nov. 2, 2008, to submit proofs of claim to: The Economic Court of Zaporozhje Shaumiana Str. 4 69001 Zaporozhje Ukraine The Economic Court of Zaporozhje commenced bankruptcy supervision procedure on the company on Sept. 19, 2008. The case is docketed as 12/139/08. The Debtor can be reached at: LLC Progress-Gnarovskaya Patrioticheskaya Str. 40 96000 Zaporozhje Ukraine ROMAN LLC: Creditors Must File Claims by November 2 --------------------------------------------------- Creditors of LLC Roman (code EDRPOU 24903497) have until Nov. 2, 2008, to submit proofs of claim to: The Economic Court of Vinnica Hmelnickiy Str. 7 21036 Vinnica Ukraine The Economic Court of Vinnica commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 7, 2008. The case is docketed as 10/124-08. The Debtor can be reached at: LLC Roman Tsentralnaya Str. 14 Zhmerinka Vinnica Ukraine TELECOMPANY SKTEL: Creditors Must File Claims by November 2 ----------------------------------------------------------- Creditors of LLC Telecompany Sktel (code EDRPOU 24803554) have until Nov. 2, 2008, to submit proofs of claim to: Maxim Kosinevsky Temporary Insolvency Manager Ap. 40 April 12th Str. 22 Kharkov Ukraine The Economic Court of Kharkov commenced bankruptcy supervision procedure on the company on Sept. 9, 2008. The case is docketed as B-24/170-08. The Economic Court of Kharkov Derzhprom 8th Entrance Svoboda Square 5 61022 Kharkov Ukraine The Debtor can be reached at: LLC Telecompany Sktel Timurovtsev Str. 35-G 61121 Kharkov Ukraine TVORCHESTVO LLC: Creditors Must File Claims by November 5 --------------------------------------------------------- Creditors of LLC Production-Commerce Firm Tvorchestvo (code EDRPOU 21416466) have until Nov. 5, 2008, to submit proofs of claim to: Tatiana Dutchak Liquidator Krasnoarmeyskaya Str. 52/2 58001 Chernovcy Ukraine Tel: 8(050)1061306 The Economic Court of Chernovcy commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 23, 2008. The case is docketed as 10/109/b. The Economic Court of Chernovcy O. Kobylianska Str. 14 58000 Chernovcy Ukraine The Debtor can be reached at: LLC Production-Commerce Firm Tvorchestvo Golovnaya Str. 198-A/35 58000 Chernovcy Ukraine VIDANA LLC: Creditors Must File Claims by November 2 ---------------------------------------------------- Creditors of LLC Vidana (code EDRPOU 33787264) have until Nov. 2, 2008, to submit proofs of claim to: Sergey Kitsul Liquidator/Insolvency Manager Ap. 15 Leskovskaya Str. 28 02097 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 44/249-b. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Vidana Yaroslavsky Lane 3-b 04071 Kiev Ukraine ZHOVTNEVE OJSC: Creditors Must File Claims by November 2 -------------------------------------------------------- Creditors of OJSC Zhovtneve (code EDRPOU 00414121) have until Nov. 2, 2008, to submit proofs of claim to: V. Cherepenko Liquidator/Insolvency Manager Moscow Str. 54a 54017 Nikolaev Ukraine Tel: (0512)47-34-64 The Economic Court of Nikolaev commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 18, 2008. The case is docketed as 14/238/08. The Economic Court of Nikolaev Admiralskaya Str. 22 54009 Nikolaev Ukraine The Debtor can be reached at: OJSC Zhovtneve Tsentralnaya Str. 1 Galitsinovoye Zhovtnevy District Nikolaev Ukraine =========================== U N I T E D K I N G D O M =========================== BARCLAYS PLC: Seeks GBP6.5BB Add'l Capital from Two Russian Banks ----------------------------------------------------------------- Barclays PLC is reportedly in discussion with two Russian banks in hopes to get GBP6.5 billion (US$10.34 billion) additional capital in order to meet government capital benchmarks, various reports write. According to the reports, Barclays has spoken to OAO VTB and OAO Sberbank about potential capital injections, but it wasn't clear Monday if Barclays' efforts had been successful. Unlike other banks which have sought the government for help, Barclays decided to tap private sources. The Wall Street Journal writes that Barclays sought to avoid selling shares to the U.K. government, a move that would carry conditions such as a limit on dividend payments to shareholders and would give the government a say in some board seats. The Journal notes that Russia, while it has been struggling with a plunging stock market, wobbling ruble and falling prices for oil, still has the third-largest currency reserves in the world, and the Kremlin has made clear that it will back state-controlled banks like Sberbank and VTB through the crisis. VTB, according to the Journal, said its board has not received a proposal from Barclays about a share swap. It declined to comment further Tuesday. When Barclays has needed capital, it has sought investments from institutions with which it can potentially do business in the long term, the Journal observes. The Journal and Citywire recall that earlier this year, the group raised GBP4.5 billion after attracting investment from the Qatar Sovereign Wealth fund, Japan's Sumitomo Mitsui Banking Corp., and state-owned China Development bank. Barclays has said it will raise capital by selling preferred shares by the end of the year and by selling equity by March, the Journal notes. The Financial Times notes that Barclays already has a presence in Russia after it bought Expobank for GBP373 million earlier in the year, and it offers investment banking services in Russia through its Barclays Capital subsidiary. As reported by the Troubled Company Reporter-Europe on Oct. 14, 2008, Barclays Bank PLC will raise in excess of GBP6.5 billion of Tier 1 Capital which will result in a pro forma Tier 1 Capital ratio as at June 30, 2008 of over 11%. The additional capital, Barclays said, will be raised from investors without calling on the Government funding which has been offered to U.K. Banks. About Barclays Bank PLC Barclays Bank PLC -- http://www.barclays.com/-- is a global financial services provider engaged in retail and commercial banking, credit cards, investment banking, wealth management and investment management services with international presence in Europe, the United States, Africa and Asia. Barclays operates in over 50 countries and employs over 150,000 people. BEST VALUE: Brings in Joint Administrators from KPMG ---------------------------------------------------- Howard Smith and Allan Watson Graham of KPMG LLP were appointed joint administrators of Best Value Conservatories Ltd. (Company Number 5332643) on Oct. 15, 2008. The company can be reached at: Best Value Conservatories Ltd. c/o KPMG LLP Quayside House 110 Quayside Newcastle upon Tyne England BJNC LTD: Appoints Liquidators from Vantis Business Recovery ------------------------------------------------------------ Martin Weller and Glyn Mummery of Vantis Business Recovery Services were appointed joint liquidators of BJNC Ltd. on Oct. 15, 2008, for the creditors' voluntary winding-up procedure proceeding. The company can be reached at: BJNC Ltd. c/o Vantis Business Recovery Services 43-45 Butts Green Road Hornchurch Essex England CHINA GATE: Calls in Joint Administrators from KPMG --------------------------------------------------- Paul Nicholas Dumbell, Paul Andrew Flint and Brian Green of KPMG LLP were appointed joint administrators of China Gate Ltd. (Company Number 04345850) on Oct. 7, 2008. The company can be reached at: China Gate Ltd. c/o The Wilson Henry Partnership Edge Lane Edge Hill Liverpool L7 2PF England CHOCOLATE EMPIRE: Taps Baker Tilly to Administer Assets ------------------------------------------------------- Susan Maund and Andrew White of Baker Tilly Restructuring & Recovery LLP were appointed joint administrators of The Chocolate Empire Ltd. (Company Number 06054196) on Oct. 14, 2008. The company can be reached at: The Chocolate Empire Ltd. c/o Baker Tilly Restructuring & Recovery LLP International House Queens Road Brighton East Sussex BN1 3XE England DAVID MCLEAN: Appoints Deloitte as Joint Administrators ------------------------------------------------------- David McLean has gone into administration. Nick Edwards, from Deloitte, has been appointed joint administrator, Sarah Richardson of building.co.uk reports. Mr. Edwards, said, "Whilst the property downturn has impacted the group's cash flow, the land and property assets are high quality, and combined with the excellent reputation of the group, should make the house building division an attractive prospect for potential purchasers. We are continuing to trade this part of the business whilst we seek a buyer." Mr. Edwards added, "The contracting division has struggled to generate a critical mass of profitable contracts, and regrettably we have had to take the decision to close that part of the business, other than retaining a significantly reduced headcount to work with customers to complete or transfer limited works on outstanding contracts." DINO UK: Appoints Liquidators from Moore Stephens ------------------------------------------------- Nigel Price and Colin Prescott of Moore Stephens LLP were appointed joint liquidators of Dino UK Ltd. on Oct. 13, 2008, for the creditors' voluntary winding-up proceeding. The company can be reached at: Dino UK Ltd. c/o Moore Stephens LLP Beaufort House 94-96 Newhall Street Birmingham B3 1PB England HIGH TIDE: Fitch Cuts Ratings on Two Classes of Notes to Low-B -------------------------------------------------------------- Fitch Ratings has downgraded High Tide CDO 1 S.A.'s notes due to deterioration in the underlying asset quality and assigned all classes a Negative Outlook as: -- Class A (ISIN XS0169669081) downgraded to 'BBB' from 'AAA'; Outlook Negative -- Class B (ISIN XS0169669164) downgraded to 'BB' from 'AA+'; Outlook Negative -- Class C (ISIN XS0169669248) downgraded to 'B' from 'A'; Outlook Negative This transaction, which initially referenced an all-investment grade structured finance portfolio, has seen a marked increase in speculative-grade names as a result of rating migration over the past year. Using Fitch derived ratings, 14 assets, representing 5.6% of the reference portfolio, are currently classified as speculative-grade. In addition, 25 assets or 14% of the portfolio are on Rating Watch Negative, making further rating migration likely. The lowest rated portfolio assets are three tranches from two synthetic U.S. collateralized debt obligations and one tranche from a U.S. residential mortgage backed securities transaction (totaling 1.7% of the portfolio). All RWN names have been notched down by three notches for the purpose of this analysis. Regarding the senior tranche, the Class A notes continue to hold an investment-grade rating. This class can withstand significant stress. In particular, the credit enhancement of 8.22% would allow for the total loss of all assets rated 'BBB-' and below without causing a loss to the Class A notes. In contrast the Class C notes feature a credit enhancement of only 3.04%. Further migration would likely lead to impairment of the Class C notes. As a result, the Class C notes have been downgraded to 'B'. In addition, all classes are assigned a Negative Outlook. This indicates the expectation of further negative migration affecting the reference portfolio assets in the near- to medium-term. High Tide is a synthetic arbitrage CDO of mainly investment-grade European and North American structured finance securities. The ratings address the likelihood of full and timely payment of interest and ultimate payment of principal of all classes of notes by the scheduled maturity on 15 February 2040. This likelihood is largely dependent on the aggregate losses on High Tide's structured finance portfolio, as defined and determined in accordance with a portfolio credit default swap between High Tide and Citibank, N.A., London Branch during the life of the transaction. Fitch announced proposals to change its rating methodology for structured finance CDOs on 14 October 2008 and, at that time, noted that the updated approach will apply to CDOs exposed to all types of global structured finance assets following the issuance of final criteria. In this case, Fitch took rating action prior to the finalization of SF CDO criteria due to the negative portfolio performance. This transaction is not expected to suffer additional rating action due to the pending methodology change. Fitch's rating Outlook indicates the likely direction of any rating change over a one- to two-year period and may be Positive, Negative, Stable or, occasionally, Evolving. HITCHENS GROUP: Put Into Administration by Parent Company --------------------------------------------------------- Hitchens store chain is put into administration by its parent the Wallgate Group Plc. According to Wallgate, the store chain was losing money, Crains Manchester Business reports. A Wallgate statement said, "In the event that a minimum of GBP1 million has not been raised by Nov. 28 through the proposed placing, the company will need to explore alternative sources of funding as a matter of urgency and may be required significantly to curtail its operations and further review its business strategy." Hot Deals and Best Price Trading, two of Hitchens' 13 stores, will remain open. ITV PLC: Fitch Trims LT Issuer Default Rating to BB+ from BBB- -------------------------------------------------------------- Fitch Ratings downgraded ITV plc's Long-term Issuer Default rating and senior unsecured rating to 'BB+' from 'BBB-'. Following the downgrade, the rating Outlook is now Stable. Fitch also downgraded ITV's Short-term IDR to 'B' from 'F3' and withdrew the Short-term rating. The rating action follows further downward revisions in Fitch's expectations for the UK advertising market over the medium term. "The events of the last six weeks suggest there is more than an outside chance that the current UK TV advertising downturn may be materially worse than those in 1990-91 and 2000-01," says Alex Griffiths, Senior Director in Fitch's TMT group in London. "While Fitch had factored these scenarios in as a possibility when it changed ITV's Outlook to Negative in July 2008, they have now been given a higher weighting in our analysis." Fitch had adopted the approach of rating ITV through the business cycle, and was prepared to allow significant variance in credit metrics throughout the cycle for any given rating level. Fitch's current downside analysis suggests that, in a severe and prolonged downturn, unadjusted net debt/EBITDA could peak above 3.5x, and remain at these levels for a protracted period. This is not consistent with a 'BBB-' profile. The 'BB+' rating level allows room for deterioration in ITV's financial metrics due to cyclical factors. In coming to its conclusion on the downgrade Fitch has factored into its forecasts a 12% cumulative decline in the UK TV advertising market in 2008 and 2009, with no recovery until 2011. Barring an even further fall in ad spend expectations, downward pressure on the rating is likely to arise from any evidence of operational under- performance, particularly falls in share of commercial impacts below those implied by additional penetration of multi-channel viewing. Conversely, continued strong operating performance, better-than- expected ad revenue performance, potentially due to the relaxation of the Contract Rights Renewal mechanism, and ITV gaining real revenue and profit traction from its revised online and production strategies could put positive momentum back into the rating. The group's strong liquidity profile provides considerable support to the ratings. It is underpinned by the GBP110 million FRN issued earlier this year, additional GBP200 million five-year financing negotiated in H108, balance-sheet cash and liquid investments of GBP573 million at June 30, 2008 (including a GBP100 million short-term note due March 2009), and committed bank facilities of GBP450 million. JOHNSTON UK: Colin Prescott Leads Liquidation Procedure ------------------------------------------------------- Colin Prescott of Moore Stephens LLP was appointed liquidator of Johnston UK Ltd. (formerly Gordon Johnston (Pershore) Ltd.) on Oct. 14, 2008, for the creditors' voluntary winding-up procedure. The company can be reached at: Johnston UK Ltd. c/o Moore Stephens LLP 1-2 Little King Street Bristol BS1 4HW England LASER BROADCASTING: Court Appoints Administrators from Begbies -------------------------------------------------------------- Laser Broadcasting is now under administration. Mr. Andy Haslam, from Begbies Traynor, was appointed administrator, Ben Perrin of Swindon Advertiser reports. Mr. Haslam said, "The radio stations will now go under an extended marketing period, where companies can bid for them. I understand that Brunel FM will be part of three radio stations in the south west, and two others, that will be sold together as a group. We have successfully rescued the radio stations. It is up to the new owners to take it from here." On Oct. 10, 2008, TCR-Europe reported that Capital North East No 1 Limited Partnership has petitioned Leeds High Court to wind- up Laser. On the other hand, the company applied to be placed under administration in the same High Court in Leeds. Solicitor Robert Abblestone, presented the winding-up order saying, "Laser has now been placed into administration with immediate effect." M G M LTD: Names Duncan R. Beat Liquidator ------------------------------------------ Duncan R. Beat of Tenon Recovery was appointed liquidator of M G M (Marketing) Ltd. on Oct. 15, 2008, for the creditors' voluntary winding-up procedure. The company can be reached at: M G M (Marketing) Ltd. c/o Tenon Recovery 75 Springfield Road Chelmsford Essex CM2 6JB England RVS MODULAR: Brings in Joint Administrators from Grant Thornton --------------------------------------------------------------- Alistair Gareth Wardell and Nigel Morrison of Grant Thornton UK LLP were appointed Oct. 10, 2008, joint administrators of: -- Sterlings - D.F.C. Ltd. (Company Number 00380143); -- RVS Transport Refrigeration Ltd. (Company Number 05616004)' -- RVS Transport Repair Ltd. (Company Number 05615816); -- RVS Transport Refrigeration Ltd. (Company Number 05616004); -- RVS Transport Repair Ltd. (Company Number 05615816); -- RVS Transport Repair (Bridgend) Ltd. (Company Number 05616007); -- RVS Commercial Refrigeration Ltd. (Company Number 05615404); -- RVS Insulation Services Ltd. (Company Number 05615817); -- RVS Consultants Ltd. (Company Number 05605491); and -- RVS Modular Linings Ltd. (Company Number 05794506). The companies can be reached at: RVS Modular Linings Ltd. Ynys Bridge Heol Yr Ynys Tongwynlais Near Cardiff CF4 7NT Wales SHOW PRESENTATION: Lending Restrictions Prompt Administration ------------------------------------------------------------- Show Presentation Services has gone into administration, Paul Milligan of avinteractive.com.uk reports. According to the report, Grant Thornton has been appointed as administrators. Letters have also been sent out to all creditors to appraise them of the situation. Due to lending restrictions, banks could not to extend the company's credit line resulting to cash flow problems and ultimately administration, the report relates. Show Presentation Services -- http://www.showpres.com/-- is a leading live event agency, based in the UK and operating throughout Europe. STONEGUARD GROUP: Puts Five Companies Under Receivership -------------------------------------------------------- The Stoneguard Group has placed five of its companies under administrative receivership last week. On Oct. 27, 2008, the group placed another company, Stoneguard Protec, under administration, John Leitch of Contract Journal reports. According to the report, in the 12 months ended December 31, 2007, the company had a pre-tax profit of GBP430,000 which was ahead of the previous profit figure of GBP310,000. A spokeswoman said, "The most successful scenario would be that the business and its assets are purchased. But right now it is still in the process of valuation." Baker Tilley is Stoneguard's administrator. STYAL HOMES: Calls in Joint Administrators from PwC --------------------------------------------------- David Thornhill and Ian David Green of PricewaterhouseCoopers LLP were appointed joint administrators of Styal Homes Ltd.(Company Number 04447867) on Oct. 13, 2008. The company can be reached at: Styal Homes Ltd. 651a Mauldeth Road West Chorlton Manchester Lancashire M21 7SA England TAILORED PROPERTY: Taps Liquidators from Tenon Recovery ------------------------------------------------------- Steven Philip Ross and Ian William Kings of Tenon Recovery were appointed joint liquidators of Tailored Property Management Ltd. on Oct. 10, 2008, for the creditors' voluntary winding-up proceeding. The company can be reached at: Tailored Property Management Ltd. c/o Tenon Recovery Tenon House Ferryboat Lane Sunderland Tyne & Wear SR5 3JN TAYLOR WIMPEY: Lenders Choose to Rework Loan Covenants ------------------------------------------------------ Citing senior financial sources, Tom Bill at news website Building reports that banks will restructure lending covenants with Barratt and Taylor Wimpey rather than allow a breach. "If there is the danger of a fresh covenant breach at Barratt or Taylor Wimpey, the banks and the borrowers will sit down and rework those covenants to ensure no breach occurs," Building quotes a senior financial source close to the situation as saying. The financial source however noted that a breach was not currently on the cards at Barratt, Building discloses. Building relates that another source close to the talks said that while both Taylor Wimpey and Barratt have debt of about GBP1.7 billion, lenders had to take a realistic view given that they were not prepared to pull the plug and take on developments themselves. "The banks are only likely to pull the plug if debt coverage ratios become so terrible that a fire sale of assets is the best way out," the financial source said. Meanwhile, a housebuilding analyst said that should banks give new waivers they would demand a heavy price, although he believes they are not necessary given all the stress-testing that has gone on, Building adds. About Taylor Wimpey Headquartered in London, Taylor Wimpey plc -- http://www.taylorwimpey.com/-- builds homes in the U.K., North America, Spain and Gibraltar. Taylor Wimpey also operates in the Construction sector under the Taylor Woodrow brand. Taylor Wimpey plc's major markets are experiencing a significant downturn, characterized by significantly lower weekly sales rates and lower average selling prices than in recent years. Taylor Wimpey remains in full compliance with its banking covenants. However, without an amendment to the terms of its banking facilities, in certain negative market scenarios Taylor Wimpey might breach one or more banking covenants at the first testing date in 2009. * * * As reported in the TCR-Europe on Oct. 7, 2008, Fitch Ratings has downgraded Taylor Wimpey plc's Long-term Issuer Default and senior unsecured ratings to 'B' from 'BB-' and maintained them on Rating Watch Negative. Its Short-term IDR at 'B' is now also on RWN. Fitch has also assigned a Recovery Rating of 'RR4' to TW's senior unsecured debt instruments. TIME MACHINE: Appoints Joint Administrators from PwC ---------------------------------------------------- David Thornhill and Ian David Green of PricewaterhouseCoopers LLP were appointed joint administrators of Time Machine Developments Ltd. (Company Number 05844775) on Oct. 14, 2008. The company can be reached at: Time Machine Developments Ltd. 651a Mauldeth Road West Chorlton Manchester Lancashire M21 7SA England TITAN EUROPE 2006-5: S&P Slashes Rating on Class F Notes to CCC- ---------------------------------------------------------------- Standard & Poor's Rating Services has lowered to 'CCC�' and kept on CreditWatch negative its rating on the class F notes issued by Titan Europe 2006-5 PLC. The ratings on the other classes in the transaction remain unaffected. Titan Europe 2006-5 is backed by seven loans, all of which are secured by properties in Germany. On April 25, 2008, S&P lowered its 'BB' rating on the class F notes to 'B' due to its increased concerns regarding the credit quality of the Hilite loan. On Sept. 26, 2008, S&P placed on CreditWatch negative its ratings on the class E and F notes following further review of the DIVA loan and the filing for insolvency of the DIVA borrowers. The loan was transferred into special servicing on Sept. 15, 2008. The DIVA loan is the largest loan in the pool and is secured by multifamily housing properties, predominantly situated in Berlin. According to the servicer's reports, the rental income from the properties has in fact improved by about 5% since the closing date, and interest coverage currently stands at 1.34x for the securitized portion of the loan. S&P has been informed that no debt service was made under the DIVA loan on the most recent interest payment date. The interest shortfall was entirely covered by the liquidity facility. However, a cost shortfall including special servicing fees of approximately EUR20,000 has already affected the class F note interest payment this month. S&P is aware that there are a number of possible workout scenarios. They include the exercise of a purchase option by the junior lender, which could see the class F notes repaid in full by legal final maturity. The coverage on the senior loan and ability to divert payments from the junior loan to the senior loan are particularly positive features in this respect. Nevertheless, S&P considers that a small principal loss on the DIVA senior loan, particularly taking into account enforcement and transaction costs, is still the most likely outcome and consequently it has lowered the class F ratings to 'CCC-'. S&P will continue to monitor the loan developments and expect to resolve the class E and F CreditWatch placements in due course. VONAGE HOLDINGS: Amends Financing Terms to Notes Purchase Offer --------------------------------------------------------------- Vonage Holdings Corp. has amended the financing condition to its offer to purchase for cash any and all of its outstanding 5% Senior Unsecured Convertible Notes due 2010. As disclosed on Oct. 20, 2008, Vonage signed definitive agreements to refinance its convertible debt. The agreed upon financing consists of a US$130.3 million senior secured first lien credit facility, a US$72.0 million senior secured second lien credit facility and the sale of US$18.0 million of senior secured third lien convertible notes. The financing condition has been amended such that the offer is conditioned upon the receipt of such financing. Miller Buckfire & Co., LLC is acting as Dealer Manager and D.F. King & Co., Inc. is acting as the Information Agent in connection with the offer. American Stock Transfer & Trust Company, LLC is the Depositary for the offer. For any questions concerning the offer or for copies of the documents related to the offer contact D.F. King & Co., Inc. by calling (212) 269-5550 (for banks and brokers) or 1-888-628-9011 (all others toll free). Headquartered in Holmdel, New Jersey, Vonage Holdings Corp. (NYSE:VG) -- http://www.vonage.com/-- provides broadband telephone services with nearly 2.6 million subscriber lines. The company's Residential Premium Unlimited and Small Business Unlimited calling plans offer consumers unlimited local and long distance calling, and features like call waiting, call forwarding and voicemail for a flat monthly rate. Vonage's service is sold on the web and through national retailers including Best Buy, Circuit City, Wal-Mart Stores Inc. and Target and is available to customers in the U.S., Canada and the United Kingdom. Going Concern Doubt BDO Seidman, LLP, in Woodbridge, New Jersey, raised substantial doubt as to Vonage Holdings Corp.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years Dec. 31, 2007, and 2006. Vonage Holdings's balance sheet at June 30, 2008, showed US$466.1 million in total assets and US$551.9 million in total liabilities, resulting in an US$85.8 million stockholders' deficit. * S&P Analyzes European Corporate Liquidity Over Global Crunch -------------------------------------------------------------- In the current environment, characterized by a global credit squeeze, sharp price falls for equity stocks and commodities, and increased foreign-exchange volatility, Standard & Poor's Ratings Services is refining its assumptions on the liquidity of European corporate entities, as described in the article titled "Credit Crunch Sharpens The Focus On European Corporate Liquidity," published on RatingsDirect. This is despite the record-low default rates registered in recent years. Although only two rated European corporates have defaulted to date since Jan. 1, 2008, S&P expects default rates to increase sharply in the very near term. S&P's general analytical framework is unchanged. S&P's corporate credit analysis methodology is based on an analysis of both the business and financial risk profiles of a company. The business risk profile typically strongly influences the level of financial risk appropriate for any rating category. "However, when the capital and bank markets dry up, we believe that liquidity can become the shortest path to default for companies," said S&P's credit analyst Emmanuel Dubois-Pelerin, "not surprisingly, liquidity becomes the major focus of our analysis for some entities." Liquidity is an important rating factor at all times. However, S&P recognizes that in the current period of stress, the weight of liquidity in its overall analysis has increased, leading us to increasingly differentiate issuer credit ratings based on this factor. Specifically, S&P's ongoing assessment evaluates, on a rolling basis, over the subsequent 12 months, the difference between the sum of liquidity resources and the sum of liquidity needs. S&P expects the difference to be a surplus in most cases, especially for low-investment-grade and speculative-grade issuers -- reflecting its current assumption that the availability of fresh financing may not be reliable for several quarters. S&P views committed facilities as backstop-funding tools, and wouldn't generally view a corporate that taps its committed facilities to substitute commercial paper funding as being under unusual credit stress. However, full or near-full drawing of committed facilities by a seemingly healthy corporate that didn't appear to have a liquidity need in upcoming months would prompt S&P to ask the issuer for further explanations as to whether it has the full picture of current creditworthiness. When access to fresh cash evaporates, the agreed loan documentation becomes critical and covenants can become the weakest link of the structure, decoupling the ratings from underlying credit considerations. S&P is most concerned about those maintenance (as opposed to incurrence) covenants that could restrict access to liquidity or trigger repayment. * European Banks Under Pressure Over Top 50 Borrowers, S&P Reports ------------------------------------------------------------------ Difficult funding conditions in the bank markets, coupled with the prospect of a long and potentially acute economic downturn are likely to negatively affect leading issuers in the nonfinancial and financial sectors alike through 2009, says a research report titled "Banks Under Pressure, Corporate And Insurance Firms Stay The Course As Europe's Top 50 Borrowers Wrestle Financial Uncertainty," published by Standard & Poor's Ratings Services. Nevertheless, S&P expects the creditworthiness of these firms and the banks that make up the top 50 rated borrowers in Europe to remain investment grade. "The major European banks have already experienced exceptionally difficult market conditions as a result of the confluence of reduced asset valuations, higher funding costs, varying levels of capital strains, and extremely fragile investor and client confidence," said S&P's chief credit officer for Europe, Blaise Ganguin. "Across the world, banks have received extraordinary external support form national authorities or from the local banking sector in response to this systemic stress. Mr. Ganguin added, "But while the global financial crisis is testing the credit quality of European financial institutions, nonfinancial corporates and insurance firms have so far remained relatively immune. We believe, however, that most industrial and insurance companies could be affected by these conditions as the region's economies slow and real estate markets enter their most severe downturn in almost 20 years." As the report points out, outside of the banking industry, declining housing prices and lower consumer demand will directly reduce profit margins and cash flows in the construction, retail, consumer products, transportation, auto and many other sectors. It will also cause nonperforming loans to increase within the financial sector. At the same time, industrial investment will likely be curtailed as economic prospects dim. With the current financial conditions evolving into a marked global economic slowdown, both financial and nonfinancial sectors of the economy will therefore be affected. As a consequence, S&P expects ratings on the top 50 corporate borrowers to come under pressure, with downgrades and negative outlooks prevailing in the coming quarters. Nevertheless, it is important to note that this group of credits benefits from considerable competitive strength as leaders in their respective sectors or jurisdictions. As such, S&P expects them to successfully weather these conditions as they have done in previous downturns. * Michael Crosby Joins Proskauer Rose as a Partner in London ------------------------------------------------------------ Proskauer Rose LLP, a global law firm with approximately 800 lawyers worldwide, announced that Michael Crosby will join the firm's London office as a partner. An experienced finance lawyer, Mr. Crosby is the latest addition to the firm's growing international platform and its leading Corporate Finance Group. Mr. Crosby advises a range of lenders and borrowers on all aspects of acquisition financings, debt restructurings, recapitalizations and leveraged buyouts. He has particular expertise working with mezzanine and other specialist junior capital lenders on domestic and international corporate finance transactions. "The changing dynamics of the international capital markets have created even greater opportunities for specialist hedge funds and other junior capital and mezzanine lenders. Michael's background and practice will allow us to fully expand our finance platform into the U.K. and capitalize on these opportunities on behalf of our clients," said Matthew Hudson, head of Proskauer's London office. "His practice, international experience, and entrepreneurial drive make him a uniquely qualified member of our expanding team." Mr. Crosby joins the firm from Addleshaw Goddard LLP's London office, where he was a partner in the Finance and Projects Division. He received his law degree from the College of Law in London and an honours degree in Economics from the University of Durham (University College). The addition of Mr. Crosby to Proskauer follows the firm's recent announcement of the opening of an office in Hong Kong and the planned opening of an office in Beijing. Former Heller Ehrman partners Ying Li, who led the firm's China Business Practice, and Joseph Cha, who led its Beijing office and its Asian Private Equity and Fund Formation Practice, are heading the firm's entry into the Chinese market with Yuval Tal, a New York corporate partner who is an integral part of Proskauer's internationally recognized Lodging & Gaming Practice. About Proskauer Rose Founded in 1875, Proskauer Rose -- http://www.proskauer.com/-- is an international law firm providing a wide variety of legal services to clients worldwide from offices in Boca Raton, Boston, Chicago, Hong Kong, London, Los Angeles, New Orleans, New York, Newark, Paris, SAGBPo Paulo, and Washington, D.C. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Oct. 31, 2008 AMERICAN BANKRUPTCY INSTITUTE International Insolvency Symposium Hilton, Frankfurt, Germany Contact: 1-703-739-0800; http://www.abiworld.org/ Nov. 6, 2008 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast Coach House Diner & Restaurant, Hackensack, New Jersey Contact: 908-575-7333 or www.turnaround.org Nov. 11, 2008 AMERICAN BANKRUPTCY INSTITUTE Detroit Consumer Bankruptcy Conference Marriott, Troy, Michigan Contact: 1-703-739-0800; http://www.abiworld.org/ Nov. 13, 2008 TURNAROUND MANAGEMENT ASSOCIATION Turnaround Case Study Summit Club, Birmingham, Alabama Contact: www.turnaround.org Nov. 13, 2008 TURNAROUND MANAGEMENT ASSOCIATION Effective Turnarounds:A View From Workout Consultants TBA, Buffalo, New York Contact: www.turnaround.org Nov. 13, 2008 TURNAROUND MANAGEMENT ASSOCIATION LI-TMA Social TBD, Melville, New York Contact: 631-251-6296 or www.turnaround.org Nov. 13, 2008 TURNAROUND MANAGEMENT ASSOCIATION Dinner Meeting TBD, Calgary, Alberta Contact: 503-768-4299 or www.turnaround.org Nov. 17-18, 2008 BEARD GROUP & RENAISSANCE AMERICAN CONFERENCES Distressed Investing Contact: 800-726-2524; 903-595-3800; www.renaissanceamerican.com Nov. 19, 2008 TURNAROUND MANAGEMENT ASSOCIATION Special Program Tournament Players Club at Jasna Polana, New Jersey Contact: 908-575-7333 or www.turnaround.org Nov. 19, 2008 TURNAROUND MANAGEMENT ASSOCIATION Interaction Between Professionals in a Restructuring/Bankruptcy Bankers Club, Miami, Florida Contact: 312-578-6900; http://www.turnaround.org/ Nov. 20, 2008 TURNAROUND MANAGEMENT ASSOCIATION Senior Housing & Long Term Care Washington Athletic Club,Seattle, Washington Contact: www.turnaround.org Nov. 27, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona Chapter Meeting - Chris Kaup TBD, Phoenix, Arizona Contact: www.turnaround.org Dec. 3, 2008 TURNAROUND MANAGEMENT ASSOCIATION Holiday Party McCormick & Schmick's, Las Vegas, Nevada Contact: 702-952-2480 or www.turnaround.org Dec. 3, 2008 TURNAROUND MANAGEMENT ASSOCIATION Christmas Function Terminal City Club, Vancouver, British Columbia Contact: 503-768-4299 or www.turnaround.org Dec. 3-5, 2008 AMERICAN BANKRUPTCY INSTITUTE 20th Annual Winter Leadership Conference Westin La Paloma Resort & Spa Tucson, Arizona Contact: http://www.abiworld.org/ Dec. 8, 2008 TURNAROUND MANAGEMENT ASSOCIATION Holiday Gathering TBD, Long Island, New York Contact: 631-251-6296 or www.turnaround.org Dec. 9, 2008 TURNAROUND MANAGEMENT ASSOCIATION Holiday MIxer Washington Athletic Club, Seattle, Washington Contact: 503-768-4299 or www.turnaround.org Dec. 11, 2008 TURNAROUND MANAGEMENT ASSOCIATION Holiday MIxer University Club, Portland, Oregon Contact: 503-768-4299 or www.turnaround.org Dec. 18, 2008 TURNAROUND MANAGEMENT ASSOCIATION Holiday MIxer TBD, Phoenix, Arizona Contact: 623-581-3597 or www.turnaround.org Dec. 31, 2008 TURNAROUND MANAGEMENT ASSOCIATION Sponsorships - Annual Golf Outing, Various Events TBA, New Jersey Contact: 908-575-7333 or www.turnaround.org Jan. 21-22, 2009 TURNAROUND MANAGEMENT ASSOCIATION Corporate Governance Meetings Bellagio, Las Vegas, Nevada Contact: www.turnaround.org Jan. 22-23, 2009 TURNAROUND MANAGEMENT ASSOCIATION Distressed Investing Conference Bellagio, Las Vegas, Nevada Contact: www.turnaround.org Jan. 22-23, 2009 AMERICAN BANKRUPTCY INSTITUTE Rocky Mountain Bankruptcy Conference Westin Tabor Center, Denver, Colorado Contact: 1-703-739-0800; http://www.abiworld.org/ Feb. 5-7, 2009 AMERICAN BANKRUPTCY INSTITUTE Caribbean Insolvency Symposium Westin Casurina, Grand Cayman Island, AL Contact: 1-703-739-0800; http://www.abiworld.org/ Feb. 25-27, 2009 AMERICAN BANKRUPTCY INSTITUTE Valcon Four Seasons, Las Vegas, Nevada Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 13, 2009 AMERICAN BANKRUPTCY INSTITUTE Bankruptcy Battleground West Beverly Wilshire, Beverly Hills, California Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 17-18, 2009 NATIONAL ASSOCIATION OFBANKRUPTCY TRUSTEES NABT Spring Seminar The Peabody, Orlando, Florida Contact: http://www.nabt.com/ Apr. 20, 2009 AMERICAN BANKRUPTCY INSTITUTE Consumer Bankruptcy Conference John Adams Courthouse, Boston, Massachusetts Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 27-28, 2009 TURNAROUND MANAGEMENT ASSOCIATION Corporate Governance Meetings Intercontinental Hotel, Chicago, Illinois Contact: www.turnaround.org Apr. 28-30, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Intercontinental Hotel, Chicago, Illinois Contact: www.turnaround.org May 7-10, 2009 AMERICAN BANKRUPTCY INSTITUTE 27th Annual Spring Meeting Gaylord National Resort & Convention Center National Harbor, Maryland Contact: http://www.abiworld.org/ May 14-16, 2009 ALI-ABA Chapter 11 Business Reorganizations Langham Hotel, Boston, Massachusetts Contact: http://www.ali-aba.org June 11-13, 2009 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa Traverse City, Michigan Contact: http://www.abiworld.org/ June 21-24, 2009 INTERNATIONAL ASSOCIATION OF RESTRUCTURING, INSOLVENCY & BANKRUPTCY PROFESSIONALS 8th International World Congress TBA Contact: http://www.insol.org/ July 16-19, 2009 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Mt. Washington Inn Bretton Woods, New Hampshire Contact: http://www.abiworld.org/ Sept. 10-12, 2009 AMERICAN BANKRUPTCY INSTITUTE 17th Annual Southwest Bankruptcy Conference Hyatt Regency Lake Tahoe, Incline Village, Nevada Contact: http://www.abiworld.org/ Oct. 5-9, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Desert Ridge, Phoenix, Arizona Contact: 312-578-6900; http://www.turnaround.org/ Dec. 3-5, 2009 AMERICAN BANKRUPTCY INSTITUTE 21st Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, California Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 15-18, 2010 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ June 17-20, 2010 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Michigan Contact: 1-703-739-0800; http://www.abiworld.org/ July 7-10, 2010 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Ocean Edge Resort, Brewster, Massachusetts Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 5-7, 2010 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 4-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ Dec. 2-4, 2010 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Camelback Inn, Scottsdale, Arizona Contact: 1-703-739-0800; http://www.abiworld.org/ BEARD AUDIO CONFERENCES 2006 BACPA Library Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES BAPCPA One Year On: Lessons Learned and Outlook Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Calpine's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Carve-Out Agreements for Unsecured Creditors Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changes to Cross-Border Insolvencies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changing Roles & Responsibilities of Creditors' Committees Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Chinas New Enterprise Bankruptcy Law Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Clash of the Titans -- Bankruptcy vs. IP Rights Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Coming Changes in Small Business Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Corporate Bankruptcy Bootcamp: A Nuts & Bolts Primer for Navigating the Restructuring Process Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Dana's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; 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http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Examining the Examiners: Pros and Cons of Using Examiners in Chapter 11 Proceedings Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Fundamentals of Corporate Bankruptcy and Restructuring Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Handling Complex Chapter 11 Restructuring Issues Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Healthcare Bankruptcy Reforms Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES High-Yield Opportunities in Distressed Investing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Homestead Exemptions under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Hospitals in Crisis: The Insolvency Crisis Plaguing Hospitals Across the U.S. Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES IP Rights In Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES KERPs and Bonuses under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES New 'Red Flag' Identity Theft Rules Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Non-Traditional Lenders and the Impact of Loan-to-Own Strategies on the Restructuring Process Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Partnerships in Bankruptcy: Unwinding The Deal Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Privacy Rights, Protections & Pitfalls in Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Real Estate Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Reverse Mergersthe New IPO? Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Second Lien Financings and Intercreditor Agreements Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Surviving the Digital Deluge: Best Practices in E-Discovery and Records Management for Bankruptcy Practitioners and Litigators Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Technology as a Competitive Advantage For Todays Legal Processes Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES The Battle of Green & Red: Effect of Bankruptcy on Obligations to Clean Up Contaminated Property Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES The Subprime Sector Meltdown: Legal Developments and Latest Opportunities Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Twenty-Day Claims Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Using Virtual Data Rooms to Expedite Corporate Restructuring Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Using Virtual Data Rooms to Expedite M&A and Insolvency Proceedings Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Validating Distressed Security Portfolios: Year-End Price Validation and Risk Assessment Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES When Tenants File -- A Landlord's BAPCPA Survival Guide Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ * * * Featured Conferences Renaissance American Management and Beard Conferences presents Oct. 30-31, 2008 Physician Agreements & Ventures The Millennium Knickerbocker Hotel - Chicago Brochure will be available soon! Nov. 17-18, 2008 Distressed Investing The Helmsley Park Lane - New York Brochure will be available soon! * * * Beard Audio Conferences presents Bankruptcy and Restructuring Audio Conference CDs More information and list of available titles at: http://beardaudioconferences.com/bin/topics?category_id=BAR ********* 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 * * *