/raid1/www/Hosts/bankrupt/TCREUR_Public/081124.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
E U R O P E
Monday, November 24, 2008, Vol. 9, No. 233
Headlines
A U S T R I A
AUSTRIAN AIRCRAFT: Claims Registration Period Ends January 1
BERANEK & CO: Claims Registration Period Ends December 24
PVG CALL CENTER: Claims Registration Period Ends December 29
RWH GASTRO: Claims Registration Period Ends December 29
SYSTEMTE? LLC: Claims Registration Period Ends December 23
TONI LLC: Claims Registration Period Ends December 24
F R A N C E
CHESAPEAKE CORP: Sept. 28 Balance Sheet Upside-Down by US$500,000
G E R M A N Y
ACE SICHERHEITSTECHNIK: Claims Registration Period Ends Dec. 17
ATU AUTO-TEILE-UNGGER: S&P Junks Long-Term Corporate Credit Rating
CPI DISTRIBUTIONS: Claims Registration Period Ends December 19
HYPO REAL: Posts EUR3.052 Bln Net loss in Third Quarter 2008
INGENIEURGESELLSCHAFT FUER BAUSTATIK: Claims Period Ends Dec. 17
TELDACOM SERVICE: Claims Registration Period Ends December 19
WW INTERNATIONAL: Claims Registration Period Ends December 19
ZAS PRODUKTIONS: Claims Registration Period Ends December 15
* GERMANY: Slips Into Recession; GDP Down 0.5% in Third Quarter
G R E E C E
WIND HELLAS: S&P Cuts Corp. Credit Rating to 'B-'; Outlook Neg.
I R E L A N D
GERKROS BOILERS: Goes Into Examinership
I T A L Y
SAFILO SPA: S&P Downgrades Corporate Credit Rating to B From B+
K A Z A K H S T A N
BIRLIK LLP: Creditors Must File Proofs of Claim by Jan. 14
BYT LLP: Creditors' Claims Deadline Slated for January 14
GROUP SEMEY: Creditors' Claims Filing Period Ends Jan. 9
KAZ ING STROY: Creditors Must Register Claims by Jan. 9
SPETS STROY REMONT: Creditors' Claims Due on Jan. 9
SERVICE OIL: Creditors Must File Proofs of Claim by Jan. 9
VOSTOK & OIL: Creditors' Claims Deadline Slated for Jan. 9
K Y R G Y Z S T A N
ASIA PASIFIC: Creditors Must File Claims by December 17
TECH SNUB PLUS: Creditors Must File Claims by December 17
VNESH PROD: Creditors Must File Claims by December 27
L U X E M B O U R G
HELLAS TELECOMMUNICATIONS: S&P Cuts Ratings on Sub. Notes to CCC
N E T H E R L A N D S
NXP BV: Expects Fourth Quarter Sales to Drop by 15% to 25%
NXP BV: Liquidity Concerns Cues S&P to Junk Corp. Credit Rating
ROMPETROL GROUP: Fitch Changes Outlook to Neg.; Keeps B+ Rating
R U S S I A
41 WOOD ENTERPRISE: Creditors Must File Claims by December 14
CONSTRUCTION MANUFACTURING: Claims Deadline on December 14
DALNEVOSTOCHNAYA TRADE: Creditors Must File Claims by Dec. 14
EAST AND EUROPE: Creditors Must File Claims by December 14
KB TIMBER: Court Names Temporary Insolvency Manager
KRAFT-STROY-KOM LLC: Creditors Must File Claims by January 14
MARIYSKIY MECHANICAL: Creditors Must File Claims by January 14
MOBILE OJSC: Fitch Maintains 'BB+' Long-Term Issuer Rating
MOSCOW BANK: Fitch Changes Outlook on 'B+' Ratings to Negative
SISTEMA JOINT: Fitch Maintains 'BB-' Issuer Default Ratings
SISTEMSHALS JSC: Fitch Confirms Long-term Issuer Rating at 'B'
VOLGOGRADSKIY GUBERNSKIY: Court Names Insolvency Manager
VOSTOK-ROS-STROY LLC: Creditors Must File Claims by December 14
YUVIS-STROY LLC: Creditors Must File Claims by January 14
S W I T Z E R L A N D
ARTEFFEKT EVENT: Creditors Must File Proofs of Claim by Dec. 5
BILL + CO: Deadline to File Proofs of Claim Set December 5
BRANDT SYSTEMS: Creditors Have Until December 5 to File Claims
BUSCH AUTOMOBIL: Proofs of Claim Filing Deadline is December 6
INTER-MARKA JSC: Creditors' Proofs of Claim Due by December 5
LEUCA BAU: December 5 Set as Deadline to File Claims
SCDR JSC: Creditors Must File Proofs of Claim by December 4
SG INVESTMENT: Deadline to File Proofs of Claim Set December 5
UBS AG: To Implement New Compensation System in 2009
T U R K E Y
EREGLI DEMIR: S&P Keeps BB- Corp. Credit Rating; Negative Outlook
U K R A I N E
ACTIVE PLUS: Creditors Must File Claims by December 3
EXPO-COMPLEX LLC: Creditors Must File Claims by December 3
MKS TECHNOLOGY: Creditors Must File Claims by December 3
MOLODEZHNAYA MODA: Creditors Must File Claims by December 3
PKF MAKSI-MARKETING: Creditors Must File Claims by December 3
VESK-LTD LLC: Creditors Must File Claims by December 3
VPTO COMPASS: Creditors Must File Claims by December 3
VTO PAMIR: Creditors Must File Claims by December 3
UTK DELTA: Creditors Must File Claims by December 3
YALTUSHKOV BREADPRODUCTS: Creditors Must File Claims by Dec. 3
U N I T E D K I N G D O M
ACTIVANT SOLUTIONS: Orlando Bravo Resigns from Board of Directors
AMETHYST MOTOR: Names Joint Administrators from Deloitte
BRITISH ENERGY: Pre-Tax Earnings Down 50% to GBP257Bln in 1H08
CIG CIBYN: Goes Into Administration
CLOROX CO: September 30 Balance Sheet Upside-Down by US$400MM
CYC HOLDINGS: Appoints Joint Liquidators from Tenon Recovery
GRANITE FINANCE: Fitch Says Breach Unlikely to Impact Ratings
HBOS PLC: Lloyds TSB Shareholders Back Proposed Takeover
NARDINI'S AT REGATTAS: Placed Into Administration
TULLETT PREBON: Fitch Changes Outlook to Pos.; Keeps BB+ Rating
WOOLWORTHS GROUP: Lenders Block Sale of Retail Arm
ZESTDEW LTD: Names Joint Administrators from PwC
* Fitch Says UK RMBS Ratings Resilient to Housing Deterioration
* BCC Says UK Businesses to Face Painful and Prolonged Recession
* EUROZONE: Slips Into Recession; GDP Fell 0.2% in Third Quarter
* Ford and GM Fail to Convince Lawmakers on Bailout Urgency
* BOND PRICING: For the Week Nov. 17 to Nov. 21, 2008
*********
=============
A U S T R I A
=============
AUSTRIAN AIRCRAFT: Claims Registration Period Ends January 1
------------------------------------------------------------
Creditors owed money by Austrian Aircraft Association have until
Jan. 1, 2009, to file written proofs of claim to the court-
appointed estate administrator:
Petra Diwok
Landstrasser Hauptstrasse 34
1030 Wien
Austria
Tel: 01/713 80 57
713 80 58
Fax: 01/713 07 76
E-mail: diwok@aon.at
Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:00 a.m. on Jan. 14, 2009, for the
examination of claims at:
Land Court of Korneuburg
Room 204
Korneuburg
Austria
Headquartered in Schwechat, Austria, the Debtor declared
bankruptcy on Oct. 31, 2008, (Bankr. Case No. 36 S 122/08w).
BERANEK & CO: Claims Registration Period Ends December 24
---------------------------------------------------------
Creditors owed money by LLC Beranek & Co (FN 238156f) have until
Dec. 24, 2008, to file written proofs of claim to the court-
appointed estate administrator:
Susanne Poeltenstein-Rosenegger
Schulerstrasse 18
1010 Wien
Austria
Tel: 512 40 13
Fax: 512 40 13 22
E-mail: poeltenstein@anwaltsteam.at
Creditors and other interested parties are encouraged to attend
the creditors' meeting at 11:15 a.m. on Jan. 7, 2009, for the
examination of claims at:
Trade Court of Vienna
Room 1607
Vienna
Austria
Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Nov. 6, 2008, (Bankr. Case No. 28 S 140/08d).
PVG CALL CENTER: Claims Registration Period Ends December 29
------------------------------------------------------------
Creditors owed money by LLC PVG Call Center (FN 292342s) have
until Dec. 29, 2008, to file written proofs of claim to the court-
appointed estate administrator:
Dr. Peter Hajek, Jr.
Blumengasse 5
7000 Eisenstadt
Austria
Tel: 02682/63108
Fax: 02682/65640
E-mail: eisenstadt@hbw.co.at
Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:00 a.m. on Jan. 12, 2009, for the
examination of claims at:
Trade Court of Vienna
Hall F
Vienna
Austria
Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Oct. 24, 2008, (Bankr. Case No. 28 S 140/08d).
RWH GASTRO: Claims Registration Period Ends December 29
-------------------------------------------------------
Creditors owed money by LLC RWH Gastro (FN 91567h) have until Dec.
29, 2008, to file written proofs of claim to the court-appointed
estate administrator:
Dr. Herbert Veit
Coulinstrasse 20
4020 Linz
Austria
Tel: 650524
Fax: 656976
E-mail: dr.veit@utanet.at
Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:00 a.m. on Jan. 9, 2009, for the
examination of claims at:
Trade Court of Linz
Room 522
Linz
Austria
Headquartered in Linz, Austria, the Debtor declared bankruptcy on
Oct. 28, 2008, (Bankr. Case No. 12 S 87/08v).
SYSTEMTE? LLC: Claims Registration Period Ends December 23
----------------------------------------------------------
Creditors owed money by LLC Systemtec (FN 287631m) have until
Dec. 23, 2008, to file written proofs of claim to the court-
appointed estate administrator:
Rudolf Nokaj
Hauptplatz 6
3370 Ybbs/Donau
Austria
Tel: 07412/52 731
Fax: 07412/52 731-22
E-mail: kanzlei@hofbauer-nokaj.at
Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:20 a.m. on Jan. 13, 2009, for the
examination of claims at:
Land Court of St. Poelten
Room 216
St. Poelten
Austria
Headquartered in Sausenstein, Austria, the Debtor declared
bankruptcy on Nov. 6, 2008, (Bankr. Case No. 14 S 180/08y).
TONI LLC: Claims Registration Period Ends December 24
-----------------------------------------------------
Creditors owed money by LLC Toni (FN 238156f) have until Dec. 24,
2008, to file written proofs of claim to the court-appointed
estate administrator:
Dr. Georg Kahlig
Siebensterngasse 42
1070 Wien
Tel: 523 47 91 0
Fax: 523 47 91 33
E-mail: kahlig.partner@aon.at
Creditors and other interested parties are encouraged to attend
the creditors' meeting at 11:15 a.m. on Jan. 7, 2009, for the
examination of claims at:
Trade Court of Vienna
Room 1607
Vienna
Austria
Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Nov. 6, 2008, (Bankr. Case No. 28 S 140/08d).
===========
F R A N C E
===========
CHESAPEAKE CORP: Sept. 28 Balance Sheet Upside-Down by US$500,000
---------------------------------------------------------------
Chesapeake Corporation's balance sheet at Sept. 28, 2008, showed
total assets of US$936.6 million total liabilities of US$937.1
million and stockholders' deficit of US$500,000.
Sales dropped to US$248.2 million in third quarter of 2008,
compared with US$266.4 million during the same period in 2007.
Sales during the nine-month period total US$752.5 million,
compared with US$789.3 million during the first 9 months of 2007.
For three months ended Sept. 28, 2008, the company reported a net
loss of US$8.3 million compared with net income of US$4.3 million
of the same period in the previous year. For the nine-month
period, the company incurred net loss of US$277.1 million compared
to net loss of US$5.5 million for the same period in the previous
year.
The company has reported losses during its last three fiscal
years. For the fiscal years ended Dec. 30, 2007, Dec. 31, 2006
and Dec. 31, 2005, it incurred net losses of US$11.2 million,
US$36.7 million and US$318.3 million, respectively.
Factors contributing to these net losses included, but were not
limited to goodwill impairment charges, costs associated with its
cost-savings plan and other restructuring efforts, environmental
remediation costs, price competition, rising raw material costs
and lost customer business due to geographic shifts in production
within the consumer products industry which we serve. Certain of
those factors, such as goodwill or other asset impairments, are
non-cash charges and therefore are not expected to impact the
company's liquidity.
The company's senior credit facility, amended in 2004, and which
provides borrowings of up to US$250 million, matures in February
2009. The senior credit facility is collateralized by a pledge of
the inventory, receivables, intangible assets and other assets of
Chesapeake Corporation and certain U.S. subsidiaries. The
facility is guaranteed by Chesapeake Corp., each material U.S.
subsidiary and each United Kingdom (U.K.) subsidiary borrower,
although most U.K. subsidiary borrowers only guarantee borrowings
made by U.K. subsidiaries.
The company sought amendments to its senior credit facility due to
its inability to meet certain milestones:
-- a March 5 amendment affected financial maintenance covenants
in all four quarters of fiscal 2008, providing an increase in
the total leverage ratios and a decrease in the interest
coverage ratios. During the third quarter of fiscal 2008 the
lenders under the Credit Facility obtained security interests
in certain of the Company's assets located in the U.K.,
Ireland, France, Germany, Belgium and the Netherlands.
-- On July 15, the permissible total leverage ratio to 7.00:1
for the second fiscal quarter of 2008 and the senior leverage
ratio to 3.40:1 for the second fiscal quarter. In exchange,
interest rates were increased to 550 basis points over LIBOR.
On August 1, 2008, the company announced a proposed comprehensive
refinancing plan to address the upcoming maturity of its credit
facility as well as its general liquidity needs. The proposed
refinancing plan was expected to include: (1) new senior secured
credit facilities to be used to fully repay or replace its
existing US$250-million Credit Facility and provide incremental
liquidity, and (2) an offer to exchange its outstanding 10-3/8%
Sterling-denominated senior subordinated notes due in 2011 and its
7% euro-denominated senior subordinated notes due in 2014 for new
debt or equity securities.
On October 1, 2008, the company agreed with its lenders on an
amendment to its Credit Facility which included a waiver,
effective as of September 28, 2008, of compliance with certain
financial condition covenants through October 31, 2008. The
amendment waived any potential event of default for failure to
meet the financial condition covenants. Effective November 1,
2008, upon the expiration of that waiver, the company is in
default of the financial condition covenants under the Credit
Facility. On November 1, 2008, it entered into a Forbearance
Agreement with its Credit Facility lenders. Under the Forbearance
Agreement, the lenders agreed that they will not exercise their
rights and remedies in respect of the existing financial condition
covenant defaults under the Credit Facility, including
accelerating the maturity of outstanding borrowings, through
December 10, 2008, subject to the company's compliance with the
terms and conditions of the Forbearance Agreement.
The company has acknowledged that failure to successfully
implement a restructuring or refinancing plan or otherwise address
access to alternative sources of liquidity raises substantial
doubt about its ability to continue as a going concern.
A full-text copy of the SEC 10-Q filing is available for free at
http://ResearchArchives.com/t/s?3504
About Chesapeake Corporation
Headquartered in Richmond, Virginia, Chesapeake Corporation
(NYSE: CSK) -- http://www.cskcorp.com/-- is a supplier of
specialty paperboard packaging products in Europe and an
international supplier of plastic packaging products to niche end-
use markets. Chesapeake has 47 locations in France, Ireland,
United Kingdom, North America, China, HongKong, among others and
employs approximately 5,500 people.
* * *
As disclosed in the Troubled Company Reporter on Aug. 11, 2008,
Moody's Investors Service downgraded Chesapeake Corporation's
Corporate Family Rating to Caa2 from B2 and its Probability of
Default Rating to Caa2 from B3. Concurrently, Moody's downgraded
the company's senior unsecured revenue bonds to Caa3 from B3 and
senior subordinated notes to Caa3 from Caa1. All credit ratings
remain on review for possible downgrade.
Standard & Poor's Ratings Services lowered its ratings on
Chesapeake Corp. The corporate credit rating was lowered to
'CCC+' from 'B'. The ratings remain on CreditWatch, where they
were placed on July 2, 2008, with negative implications.
=============
G E R M A N Y
=============
ACE SICHERHEITSTECHNIK: Claims Registration Period Ends Dec. 17
---------------------------------------------------------------
Creditors of ACE Sicherheitstechnik GmbH have until Dec. 17, 2008,
to register their claims with court-appointed insolvency manager.
Creditors and other interested parties are encouraged to attend
the meeting at 1:15 p.m. on Jan. 7, 2009, at which time the
insolvency manager will present his first report.
The meeting of creditors will be held at:
The District Court of Essen
Meeting Hall 293
Second Floor
Zweigertstr. 52
45130 Essen
Germany
Claims set out in the insolvency manager's report will be verified
by the court during this meeting. Creditors may also constitute a
creditors' committee or opt to appoint a new insolvency manager.
The insolvency manager can be reached at:
Dr. Dirk Andres
Neuer Zollhof 3
40221 Duesseldorf
Germany
The District Court opened bankruptcy proceedings against the
company on Oct.31, 2008. Consequently, all pending proceedings
against the company have been automatically stayed.
The Debtor can be reached at:
ACE Sicherheitstechnik GmbH
Unterstrasse 36
45359 Essen
Germany
Attn: Kai Uwe Knuemann, Manager
Rabenhorst 60
45355 Essen
Germany
ATU AUTO-TEILE-UNGGER: S&P Junks Long-Term Corporate Credit Rating
------------------------------------------------------------------
Standard & Poor's Rating Services said that it had lowered its
long-term corporate credit rating on Germany-based auto parts
retailer and integrated workshop operator A.T.U Auto-Teile-Unger
to 'CCC+' from 'B-'. The outlook is negative.
At the same time, the issue rating on a EUR150 million floating
rate senior subordinated note due 2014, issued by finance vehicle
A.T.U Auto-Teile-Unger Investment Gmbh & Co. KG, which is
guaranteed by ATU, was lowered to 'CCC-' from 'CCC'. This
reflects its longstanding subordination to secured creditors.
"The downgrade reflects a further deterioration of the company's
operating and financial performance in 2008. It also reflects
concerns about ATU's ability to sustainably remain in compliance
with financial covenants that the company renegotiated during
financial restructuring in early 2008," said S&P's credit analyst
Anna Stegert.
In the first nine months of 2008, the company reported a like-for-
like decrease in revenues of almost 10%, and a drop in its
adjusted EBITDA margin to about 2% from about 7% for full year
2007. The gap between the group's EBITDA generation and budget
widened during the third quarter of 2008, raising concern over
tight covenant headroom in the coming quarters.
The company's reported year-to-date free operating cash flow
generation is negative to a larger extent than previously expected
(negative EUR114 million, including about EUR27 million in one-off
expenses mostly related to the financial restructuring). Fourth
quarter FOCF is expected to be significantly positive. However,
as the fourth quarter is generally the strongest in terms of
EBITDA and cash flow generation, S&P thinks that financial
flexibility to cope with further negative developments is limited.
The increasingly challenging economic outlook is expected to
further negatively weigh on the company's prospects.
CPI DISTRIBUTIONS: Claims Registration Period Ends December 19
--------------------------------------------------------------
Creditors of CPI Distributions GmbH have until Dec. 19, 2008, to
register their claims with court-appointed insolvency manager.
Creditors and other interested parties are encouraged to attend
the meeting at 10:20 a.m. on Jan. 21, 2009, at which time the
insolvency manager will present his first report.
The meeting of creditors will be held at:
The District Court of Hamburg
Hall B 405
Fourth Floor Annex
Civil Justice Bldg.
Sievkingplatz 1
20355 Hamburg
Germany
Claims set out in the insolvency manager's report will be verified
by the court during this meeting. Creditors may also constitute a
creditors' committee or opt to appoint a new insolvency manager.
The insolvency manager can be reached at:
Michael W. Kuleisa
Gertrudenstrasse 3
20095 Hamburg
Germany
The District Court opened bankruptcy proceedings against the
company on Nov. 5, 2008. Consequently, all pending proceedings
against the company have been automatically stayed.
The Debtor can be reached at:
CPI Distributions GmbH
Attn: Dr. Horst Pfleger, Manager
Pferdmengesstrasse 23
50968 Koeln
Germany
HYPO REAL: Posts EUR3.052 Bln Net loss in Third Quarter 2008
------------------------------------------------------------
Hypo Real Estate Group published its interim financial statements
for the period ending September 30, 2008. As announced on
November 12 on the basis of provisional figures, the Group is
reporting a consolidated pre-tax loss of EUR3.105 billion for the
third quarter of 2008 in view of the fact that the financial
crisis has become more severe, compared with a pre-tax profit of
EUR237 million in the corresponding previous year period. The
quarterly loss is mainly attributable to the writeoff of goodwill
and other intangible assets attributable to the initial
consolidation of DEPFA Bank Plc (EUR2.482 billion).
Effects of the financial crisis
The main events of the international financial crisis in the third
quarter of 2008 had the following effects recognized in the income
statement of the Hypo Real Estate Group:
* The impairments of EUR2.482 billion relating to DEPFA Bank
Plc includes an adjustment of EUR2.223 billion for
goodwill. Further amounts are attributable for instance
to the correction of the brand value of DEPFA. Overall,
the adjustments are impairments relating to carrying
amounts, and have not resulted in outflows of cash.
* Further charges of EUR307 million were recognized in the
third quarter in relation to the CDO portfolio of the
Group, following EUR320 million in the first half of this
year. A change in value of EUR-112 million relating to
synthetic CDOs had a negative impact on net trading
income, and an impairment of EUR195 million relating to
cash CDOs had a negative impact on net income from
financial investments.
* Re-hedging measures, the revaluation of derivatives and
the impairment of securities following the collapse of the
investment bank Lehman Brothers had a negative impact of
EUR175 million on net trading income and net income from
financial investments.
* The exposure to Icelandic issuers resulted in impairments
of EUR43 million reflected in net trading income and net
income from financial investments.
* A further impairment of EUR39 million was recognized in
the third quarter in relation to the holding in the
Australian Babcock & Brown.
In addition, the third quarter was the last time that a positive
effect of EUR19 million was recognized in relation to the market
valuation of a derivative on shares of Hypo Real Estate Holding AG
which is a mandatory requirement under IFRS. The derivative is
embedded in the mandatory convertible bond issued for partially
financing the DEPFA acquisition.
Group development Q3 2008
* Operating revenues (the sum of net interest income and
similar income, net commission income, net trading income,
net income from financial investments, net income from
hedge relationships and the balance of operating income/
expenses) amounted to EUR-345 million between July and
September, compared with EUR412 million in the same
quarter of 2007 (all figures for 2007 on a pro-forma
basis, incl. DEPFA).
* Net interest income and similar income amounted to EUR354
million, and was thus roughly unchanged compared with the
corresponding previous year quarter (EUR357 million), and
was also higher than the figures for the first and second
quarters of this year.
* Net commission income amounted to EUR35 million, and was
accordingly only around half of the figure reported for
the third quarter of 2007 (EUR69 million). This is due to
the fact that new business so far this year has been
moderate and considerably lower than originally budgeted
in all areas of operation.
* Net trading income of EUR-349 million (Q3 2007: EUR-73
million) were negatively affected by a number of factors:
the widening of credit spreads, the revaluation of the
synthetic CDOs reported under this item (EUR-112 million),
declines in the values of monoliners (EUR-117 million) as
well as the necessary re-hedging and revaluation of
derivatives with regard to Lehman Brothers (EUR-150
million). In accordance with the change to IAS 39
("Reclassification of financial assets") adopted in October
2008 by the IASB and recognized by the EU, the Hypo Real
Estate Group has reclassified assets in the category
"held-for-trading" with a carrying amount of EUR3.5
billion with retrospective effect as of July 1, 2008;
these are now classified as "loans and receivables".
Without this reclassification, net trading income would
have been EUR159 million lower.
* Net income from financial investments is reported as
EUR-364 million (Q3 2007: EUR49 million). The additional
impairment relating to the cash CDOs recorded under this
item amounted to EUR195 million. In addition, net income
from financial investments also includes the additional
impairment in relation to Babcock & Brown as well as a
portfolio-based allowance of EUR70 million in relation to
assets which were reclassified as "loans and receivables"
in accordance with IAS39.
* The net income from hedge relationships amounted to
EUR-30 million, and was negatively affected by the change
in credit spreads (Q3 2007: EUR-7 million).
* Provisions for losses on loans and advances amounted to
EUR177 million in the third quarter, and were considerably
higher than the corresponding previous year figure (EUR17
million) as well as the figures reported for the first two
quarters of 2008. The additions to provisions for losses
on loans and advances also include an increase of EUR105
million in the portfolio-based allowances. The increase
million in the portfolio-based allowances. The increase
was segment, and reflects the deterioration in the climate
on some real estate markets.
* General administrative expenses amounted to EUR119
million, and were accordingly lower than the figure for
the third quarter of 2007 (EUR162 million), due to a
reduction in the number of employees (1,848 as of
September 30, 2008 compared with 2,000 as of December 31,
2007) and also as a result of much lower accruals for
bonuses.
* The balance of other income/expenses amounted to EUR18
million (Q3 2007: EUR0), and includes the income
attributable to the change in value of the derivative
embedded in the mandatory convertible bond for partially
financing the DEPFA acquisition.
* The consolidated pre-tax loss amounted to EUR3.105
billion, compared with a pre-tax profit of EUR233 million
in the previous year quarter.
* The reported consolidated net loss (including the DEPFA
impairments) amounted to EUR3.052 billion.
Assets and capital ratios as of September 30, 2008
* The total assets of the Hypo Real Estate Group amounted to
EUR392.5 billion as of September 30, 2008, compared with
EUR400.2 billion as of December 31, 2007. The reduction
is mainly due to lower trading portfolios, lower
intangible assets and a reduced cash reserve.
* As of the end of September 2008, the total volume of
lending amounted to EUR260.9 billion compared with
EUR256.2 billion at the end of 2007.
* At the end of September 2008, the Group reported financial
investments of EUR105.2 billion; this figure is EUR16.4
billion higher than the corresponding figure at the end of
2007.
* The revaluation reserve in the consolidated balance sheet
(AfS reserve and cash flow hedge reserve) was reported as
EUR-3.28 billion at the end of September ( December 31,
2007: EUR-1.86 billion).
* Shareholders' equity (excl. revaluation reserve) declined
from EUR7.9 billion to EUR5.2 billion as a result of the
loss reported for the first nine months. The core capital
ratio of the Group (including market risks) declined to
6.8% in the third quarter. It is true that the DEPFA
goodwill and the intangible assets resulting from the
initial consolidation of DEPFA had been deducted in the
past for reporting regulatory core capital, which is the
reason why the loss attributable to the impairment of
EUR2.482 billion has not led to any reduction of the core
capital ratio. However, in the third quarter, the Group
has deducted the asset side difference of EUR742 million
attributable to the consolidation of the German
subsidiaries of the Group from core capital on the basis
of German GAAP (HGB) accounting. The Group has thus
already anticipated the adjustment of the carrying amounts
of the German subsidiaries to a figure equivalent to their
shareholders' equity in accordance with HGB. Any
additional losses from operations will be recognized in
line with the regulatory requirements at the point at
which the net income for the year is adopted. The own
funds ratio amounted to 9.6% compared with 11.3% as of
June 30, 2008 and 9.4% (according to Basel I) at the
end of 2007.
Development of the operating segments in the third quarter of 2008
* The Commercial Real Estate segment has reported a pre-tax
profit of EUR3 million for the third quarter of 2008 (Q3
2007 pro-forma: EUR193 million). The operating revenues
amounted to EUR226 million compared with EUR247 million in
the same previous year quarter. Asset sales were only
able to partially compensate for declines in net interest
income and net commission income, mainly due to weak new
business. Earnings were affected by the need to top up
provisions for losses on loans and advances by EUR179
million (incl.portfolio-based provisions; Q3 2007: EUR8
million).
* The Public Sector & Infrastructure Finance segment
reported a pretax profit of EUR16 million in the third
quarter, which is accordingly considerably lower than the
corresponding previous year pro-forma figure (Q3 2007:
EUR153 million). Net interest income increased from
EUR153 million to EUR189 million, also due to the
appreciable improvement in margins in new business.
General administrative expenses declined from EUR37
million in the previous quarter to EUR25 million, also as
a result of the strong Euro.
* The Capital Markets & Asset Management segment reported a
pretax loss of EUR58 million for the third quarter
(Q3 2007 pro-forma: pre-tax loss of EUR50 million). A net
trading loss of EUR32 million), mainly due to a widening
of credit spreads.
Dr. Markus Fell, CFO of Hypo Real Estate Holding AG: "The
tremendous force which hit the Hypo Real Estate Group as a result
of the unparalleled financial crisis can clearly be seen in the
figures for the period ending September 30. We are predicting an
extremely negative consolidated result for the whole of 2008. The
necessary restructuring of the Hypo Real
Estate Group and the costs of the agreed or planned liquidity
lines and capital assistance will continue to pose a major strain
on consolidated result in 2009."
Measures for assuring liquidity
The Hypo Real Estate Group has reached agreement with a finance
syndicate, the Deutsche Bundesbank and the German federal
government for a liquidity facility of EUR50 billion, which is
partially backed by the government. The funds from the facility
were made available on November 13, 2008. Subject to the
government guarantee being extended beyond March 31, 2009, the
liquidity facility will run until December 31, 2009. In line with
the EU regulations, the government guarantee is initially
limited until March 31, 2009. The Hypo Real Estate Group and the
government will meet at an appropriate time to agree an extension
of the guarantee beyond that time.
The Hypo Real Estate Group is providing collateral, i.e. loans and
securities, worth EUR60 billion for the liquidity lines. In
addition, Hypo Real Estate Holding AG has also pledged its shares
in the operating subsidiary banks of the Group as collateral for
the government guarantee. The facility has
replaced emergency liquidity assistance of EUR35 billion provided
by the Bundesbank, which was backed by the government, and also
replaced a bridging arrangement of EUR15 billion provided by the
Bundesbank, which was backed by guarantees of the Financial
Markets Stabilisation Fund ("SoFFin").
As a result of the liquidity lines and the further support
measures to be requested from the Financial Markets Stabilisation
Fund, the Management Board is drawing up plans for restructuring
and repositioning the Hypo Real Estate Group. The aim is to
establish a group which is more strongly integrated, less complex
and equipped with improved asset/liability
management of the balance sheet.
Dr. Axel Wieandt, CEO of Hypo Real Estate Holding AG: "Management
of the Hypo Real Estate Group is currently devoting maximum
priority to revising the business model of the Group in order to
bring it into line with the fundamentally changed conditions. A
restructuring and reorganization resulting from this will demand
difficult decisions from all parties involved
in the Hypo Real Estate Group. The assistance from the German
financial industry, the Deutsche Bundesbank, the German federal
government and the Financial Markets Stabilisation Fund is
essential. For the time being, the Hypo Real Estate Group will
not be able to adequately refinance the company via the money and
capital markets alone, even if this is of course our objective in
the medium term."
About Hypo Real Estate Group
Following the acquisition of DEPFA Bank plc in October 2007,
Munich, Germany-based Hypo Real Estate Group –-
http://www.hyporealestate.com/-- has evolved into one of the
leading international financial services providers for commercial
real estate lending, public finance and infrastructure finance.
The Group, with total assets of EUR395 billion, 1,900 employees
and offices across Europe, the Americas and Asia, consists of the
non-operational listed Hypo Real Estate Holding AG and operational
entities. Hypo Real Estate Bank International AG and Hypo Real
Estate Bank AG conduct the international real estate financing
business. DEPFA and DEPFA Deutsche Pfandbriefbank AG conduct the
public sector and infrastructure finance business.
INGENIEURGESELLSCHAFT FUER BAUSTATIK: Claims Period Ends Dec. 17
----------------------------------------------------------------
Creditors of IBK Ingenieurgesellschaft fuer Baustatik und
Konstruktion GmbH have until Dec. 17, 2008, to register their
claims with court-appointed insolvency manager.
Creditors and other interested parties are encouraged to attend
the meeting at 11:00 a.m. on Jan. 19, 2009, at which time the
insolvency manager will present his first report.
The meeting of creditors will be held at:
The District Court of Walsrode
Hall 130
Lange Strasse 29-33
29664 Walsrode
Germany
Claims set out in the insolvency manager's report will be verified
by the court during this meeting. Creditors may also constitute a
creditors' committee or opt to appoint a new insolvency manager.
The insolvency manager can be reached at:
Dr. Christian Willmer
Georgstrasse 5
27283 Verden/Aller
Germany
Tel: (0 42 31) 8 84 45
Fax: (0 42 31) 8 84 55
The District Court opened bankruptcy proceedings against the
company on Nov. 6, 2008. Consequently, all pending proceedings
against the company have been automatically stayed.
The Debtor can be reached at:
IBK Ingenieurgesellschaft fuer Baustatik und
Konstruktion GmbH
C/o Frau Eike Marschall
Scharnhorststrasse 3
29683 Bad Fallingbostel
Germany
TELDACOM SERVICE: Claims Registration Period Ends December 19
-------------------------------------------------------------
Creditors of TelDaCom Service GmbH have until Dec. 19, 2008, to
register their claims with court-appointed insolvency manager.
Creditors and other interested parties are encouraged to attend
the meeting at 10:15 a.m. on Jan. 28, 2009, at which time the
insolvency manager will present her first report.
The meeting of creditors will be held at:
The District Court Erfurt
Hall 12
Judicial Center
Rudolfstr. 46
99092 Erfurt
Germany
Claims set out in the insolvency manager's report will be verified
by the court during this meeting. Creditors may also constitute a
creditors' committee or opt to appoint a new insolvency manager.
The insolvency manager can be reached at:
Dr. Metzger
Steigerstr. 30
99096 Erfurt
Germany
The District Court opened bankruptcy proceedings against the
company on Nov. 6, 2008. Consequently, all pending proceedings
against the company have been automatically stayed.
The Debtor can be reached at:
TelDaCom Service GmbH
Attn: Christian Tandel, Manager
Turnvater Jahn Strasse 14
99310 Arnstadt
Germany
WW INTERNATIONAL: Claims Registration Period Ends December 19
-------------------------------------------------------------
Creditors of WW International Trading GmbH have until
Dec. 19, 2008, to register their claims with court-appointed
insolvency manager.
Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Jan. 19, 2009, at which time the
insolvency manager will present his first report.
The meeting of creditors will be held at:
The District Court of Schwerin
Hall 7
Demmlerplatz 14
Germany
Claims set out in the insolvency manager's report will be verified
by the court during this meeting. Creditors may also constitute a
creditors' committee or opt to appoint a new insolvency manager.
The insolvency manager can be reached at:
Andreas Franz
Steinstrasse 26
19053 Schwerin
Germany
Tel: 0385/714446
The District Court opened bankruptcy proceedings against the
company on Nov. 12, 2008. Consequently, all pending proceedings
against the company have been automatically stayed.
The Debtor can be reached at:
WW International Trading GmbH
Attn: Thomas Dietz, Manager
Ludwigsluster Chaussee 2
19370 Parchim
Germany
ZAS PRODUKTIONS: Claims Registration Period Ends December 15
------------------------------------------------------------
Creditors of ZAS Produktions GmbH have until Dec. 15, 2008, to
register their claims with court-appointed insolvency manager.
Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on Jan. 8, 2009, at which time the
insolvency manager will present his first report.
The meeting of creditors will be held at:
The District Court of Duesseldorf
Meeting Hall A 341
Fourth Floor
Muehlenstrasse 34
40213 Duesseldorf
Germany
Claims set out in the insolvency manager's report will be verified
by the court during this meeting. Creditors may also constitute a
creditors' committee or opt to appoint a new insolvency manager.
The insolvency manager can be reached at:
Georg Kreplin
Breite Strasse 27
40213 Duesseldorf
Germany
The District Court opened bankruptcy proceedings against the
company on Nov. 14, 2008. Consequently, all pending proceedings
against the company have been automatically stayed.
The Debtor can be reached at:
ZAS Produktions GmbH
Hofstrasse 64
40723 Hilden
Germany
Attn: Ralf Blumenkamp, Manager
Bahlenstrasse 148
40589 Düsseldorf
Germany
* GERMANY: Slips Into Recession; GDP Down 0.5% in Third Quarter
---------------------------------------------------------------
BBC News reported that Germany, Europe's largest economy, has
officially slipped into a recession, the first since the first
half of 2003.
BBC disclosed that according to EU figures, the country's economy
contracted by 0.5% in the third quarter and shrank 0.4% in the
second quarter.
Klaus Schruefer at SEB expects a further contraction in the fourth
quarter, BBC added.
According to BBC, the gloomy forecasts are based on the glut of
recent indicators showing a slowdown in the German economy.
Citing the economy ministry in Berlin, BBC noted orders for goods
produced by the world's largest exporter fell 8% between August
and September. Orders from outside Europe fell 11.4%, while
domestic orders dropped 4.3%.
===========
G R E E C E
===========
WIND HELLAS: S&P Cuts Corp. Credit Rating to 'B-'; Outlook Neg.
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered its long-
term corporate credit ratings on Greek mobile telecommunications
operator WIND Hellas Telecommunications S.A. and related entities
to 'B-' from 'B' on the group's weakening liquidity. The outlook
is negative.
At the same time, S&P lowered its debt ratings on the senior
secured notes issued by WIND Hellas' wholly owned financial
subsidiary Hellas Telecommunications (Luxembourg) V to 'B-', in
line with the corporate credit rating. The recovery rating on the
notes is unchanged at '3', indicating S&P's expectation of
meaningful (50%-70%) recovery in the event of a payment default.
S&P also lowered the ratings on Hellas Telecommunications
(Luxembourg) III's subordinated notes and Hellas
Telecommunications (Luxembourg) II's subordinated notes to 'CCC',
two notches below the corporate credit rating on the group. The
recovery rating on both issues is unchanged at '6', indicating
our expectation of negligible (0%-10%) recovery for unsecured
creditors in the event of a payment default.
Furthermore, S&P lowered its rating on Hellas Telecommunications
Finance SARL's payment-in-kind notes to 'CCC'.
"The downgrade mainly reflects the group's weakening liquidity and
persistently very high leverage, which are no longer commensurate
with 'B' ratings," said Standard & Poor's credit analyst Melvyn
Cooke.
The negative outlook reflects the group's weak liquidity,
resulting from the development of the currently loss-making Tellas
business, and its possible deterioration over the next 12-18
months. It also reflects Standard & Poor's view that the group's
very aggressive capital structure is likely to make it very
difficult for the group to raise any form of new financing, as
significant deleveraging is unlikely in the face of weak EBITDA
growth prospects during that period.
"The outlook also reflects S&P's concerns on the risk of EBITDA
decline if the group is unable to defend its market positions--due
to a lack of financial muscle--or as a result of the macroeconomic
downturn," said Mr. Cooke.
S&P expects WIND Hellas' lease-adjusted gross debt (including PIK
notes) to EBITDA to remain in the high 7x by year-end 2008, with
little or no deleveraging prospects in 2009.
A downgrade could arise if liquidity shows a continuing negative
trend, with no prospects for future improvement. Similarly, S&P
will lower the ratings if the group's operating performance proves
significantly weaker than expected, including consolidated EBITDA
that significantly declines on a 12-month rolling basis.
On the other hand, S&P could revise the outlook back to stable if
WIND Hellas continues to grow revenues and EBITDA and if Tellas'
funding needs materially reduce from current levels, resulting in
a significant strengthening of WIND Hellas' liquidity to levels
more commensurate with the ratings.
=============
I R E L A N D
=============
GERKROS BOILERS: Goes Into Examinership
---------------------------------------
Ben Hall at h&v news reports that Gerkros Boilers (Tipperary)
has entered examinership in Ireland after running into severe
cash flow problems.
Barry Forrest, from insolvency firm Barry Lennon, has been
appointed examiner, the report relates.
Gerkos, the report says, is under the protection of the court for
100 days. The examiner will now seek new investors for the
company and restructure its debts, believed to be EUR5 million.
Citing a spokesman for Gerkros, the report discloses the
examinership would not have an impact on the company's
UK business.
Gerkros supplies oil-fired and biomass boilers across Europe, the
USA and Canada.
=========
I T A L Y
=========
SAFILO SPA: S&P Downgrades Corporate Credit Rating to B From B+
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term corporate
credit rating on Italy-based eyewear manufacturer Safilo SpA to
'B' from 'B+'. The outlook is negative.
The one-notch downgrade also applies to the issue rating on
Safilo's EUR195 million 9.625% senior subordinated notes due 2013,
issued by Safilo Capital International S.A.
The recovery rating of '4' on these notes remains unchanged,
indicating S&P's expectation of average (30%-50%) recovery in the
event of a payment default.
The rating action reflects a significant weakening in both the
operating environment and in Safilo's liquidity, resulting in the
company asking for an amendment on its loan covenants.
Net sales in the first nine months of 2008 were down 4% year on
year at current exchange rates, and EBITDA by 22% in the same
period. Its EBITDA margin fell 264 basis points to 11.8%. The
drop in performance is a result of softer discretionary consumer
spending, with consumers preferring lower-priced products,
unfavorable currency movements, and the proportion of sales in
less profitable markets increasing. With revenues falling,
Safilo's high fixed costs -- including for marketing, staff, and
operating leases -- are weighing heavily on profitability. In the
first nine months of 2008, free operating cash flow after
dividends and acquisitions was negative at EUR48 million, from a
near zero level in 2007.
In 2008, Safilo has increased its discretionary expenditure,
outlaying EUR27 million on dividends, about four times higher than
in 2007. Capital expenditure was already set to rise, with the
company building a new production facility in Shanghai. In
addition, in January 2008 the company also acquired two small
retail chains (Sunglass Island and Just Spectacles) for a total of
EUR25.5 million.
The weaker operating environment combined with a more aggressive
financial policy have caused the ratio for gross debt-to-EBITDA
(adjusted for operating leases, pensions, and accrued interest) to
drop to 4.9x in the 12 months to September 2008. Consequently,
Safilo requested an amendment to its bank loan covenants to be
tested at the end of December 2008. These amendments include
raising the reported ratio of debt-to-EBITDA to 4.85x from 3.5x,
and reducing EBITDA interest cover to 3.0x from 3.5x for the test
at Dec. 31, 2008. Safilo obtained the amendments at the expense
of an interest increase to 180 from 60 basis points on the senior
loan.
The company has cut its forecast for FY 2008, and now expects
revenues to decline by 2% year on year (on constant exchange
rates), and its EBITDA margin to drop to between 11.0%-11.5% from
14.7% in 2007.
The rating on Safilo continues to reflect its highly leveraged
financial profile and a business profile dependent on license
renewals for top brands, including Gucci, Christian Dior, and
Giorgio Armani. S&P estimates these account for more than 50% of
sales. Nevertheless, Safilo has renewed the license agreement for
Gucci prescription frame and sunglass collections to 2018 from
2010, and Bottega Veneta and Alexander McQueen. S&P estimates
that Gucci represented more than 20% of the group's operating
profits in 2007.
The rating also reflects Safilo's vulnerability to a weak U.S.
dollar.
In S&P's view, these weaknesses are mitigated by the company's
leading position in the eyewear manufacturing industry and strong
brand recognition in the consolidating premium eyewear segment. At
the end of September 2008, Safilo had 307 directly operated stores
compared to 171 a year earlier.
The negative outlook reflects S&P's expectations that weakening
consumer confidence will result in a tougher environment for
Safilo, at a time when its aggressive discretionary spending and
rising debt are adding to pressure on its profitability.
The rating could be lowered if Safilo is unable to close the gap
between its actual ratios and the bank loan covenants in the near
term.
The outlook could be revised to stable if the company returns to
its previous less-aggressive financial structure, particularly
keeping its ratio of adjusted debt-to-EBITDA below 4.0x.
===================
K A Z A K H S T A N
===================
BIRLIK LLP: Creditors Must File Proofs of Claim by Jan. 14
----------------------------------------------------------
The Specialized Inter-Regional Economic Court of Aktube has
declared LLP Birlik insolvent.
Creditors have until Jan. 14, 2009, 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
BYT LLP: Creditors' Claims Deadline Slated for January 14
---------------------------------------------------------
The Specialized Inter-Regional Economic Court of Aktube has
declared LLP BYT insolvent.
Creditors have until Jan. 14, 2009, 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
GROUP SEMEY: Creditors' Claims Filing Period Ends Jan. 9
--------------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
has declared LLP Transport Company Trans Group Semey insolvent.
Creditors have until Jan. 9, 2008, to submit written proofs of
claims to:
The Specialized Inter-Regional
Economic Court of East Kazakhstan
Office 105
Myzy Str. 2/1
Ust-Kamenogorsk
East Kazakhstan
Kazakhstan
Tel: 8 (7232) 57-83-69
KAZ ING STROY: Creditors Must Register Claims by Jan. 9
-------------------------------------------------------
LLP Kaz Ing Stroy has declared liquidation. Creditors have until
Jan. 9, 2009, to submit written proofs of claims to:
LLP Kaz Ing Stroy
Kommunalnaya Str. 12
Almaty
Kazakhstan
Tel: 8 (7272) 33-04-60
SPETS STROY REMONT: Creditors' Claims Due on Jan. 9
---------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
has declared LLP Construction Company Spets Stroy Remont
insolvent.
Creditors have until Jan. 9, 2008, to submit written proofs of
claims to:
The Specialized Inter-Regional
Economic Court of East Kazakhstan
Office 105
Myzy Str. 2/1
Ust-Kamenogorsk
East Kazakhstan
Kazakhstan
Tel: 8 (7232) 57-83-69
SERVICE OIL: Creditors Must File Proofs of Claim by Jan. 9
----------------------------------------------------------
LLP Service Oil has declared liquidation. Creditors have until
Jan. 9, 2009, to submit written proofs of claims to:
LLP Service Oil
Muhita Str. 78
Uralsk
West Kazakhstan
Kazakhstan
Tel: 8 (7112) 51-08-28
VOSTOK & OIL: Creditors' Claims Deadline Slated for Jan. 9
----------------------------------------------------------
LLP Vostok & Oil has declared liquidation. Creditors have until
Jan. 9, 2009, to submit written proofs of claims to:
LLP Vostok & Oil
Ryskulov Str. 147
Almaty
Kazakhstan
===================
K Y R G Y Z S T A N
===================
ASIA PASIFIC: Creditors Must File Claims by December 17
-------------------------------------------------------
LLC Asia Pasific Trading has declared insolvency. Creditors have
until Dec. 17, 2008, to submit written proofs of claims to:
LLC Asia Pasific Trading
Ogonbayev Str. 208-87
Bishkek
Kyrgyzstan
Tel: (+996 312) 43-03-97
TECH SNUB PLUS: Creditors Must File Claims by December 17
---------------------------------------------------------
LLC Tech Snub Plus has declared insolvency. Creditors have until
Dec. 17, 2008, to submit written proofs of claims:
The company can be reached at: (0-772) 35-42-02
VNESH PROD: Creditors Must File Claims by December 27
-----------------------------------------------------
LLC External Food Industrial Trade Vnesh Prod Prom Torg has
declared insolvency. Creditors have until Dec. 27, 2008, to
submit written proofs of claims to:
LLC External Food Industrial Trade
Vnesh Prod Prom Torg
FEZ Bishkek
Mir ave. 303
Bishkek
Kyrgyzstan
Tel: (0-772) 36-31-71
===================
L U X E M B O U R G
===================
HELLAS TELECOMMUNICATIONS: S&P Cuts Ratings on Sub. Notes to CCC
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered its long-
term corporate credit ratings on Greek mobile telecommunications
operator WIND Hellas Telecommunications S.A. and related entities
to 'B-' from 'B' on the group's weakening liquidity. The outlook
is negative.
At the same time, S&P lowered its debt ratings on the senior
secured notes issued by WIND Hellas' wholly owned financial
subsidiary Hellas Telecommunications (Luxembourg) V to 'B-', in
line with the corporate credit rating. The recovery rating on the
notes is unchanged at '3', indicating S&P's expectation of
meaningful (50%-70%) recovery in the event of a payment default.
S&P also lowered the ratings on Hellas Telecommunications
(Luxembourg) III's subordinated notes and Hellas
Telecommunications (Luxembourg) II's subordinated notes to 'CCC',
two notches below the corporate credit rating on the group. The
recovery rating on both issues is unchanged at '6', indicating
our expectation of negligible (0%-10%) recovery for unsecured
creditors in the event of a payment default.
Furthermore, S&P lowered its rating on Hellas Telecommunications
Finance SARL's payment-in-kind notes to 'CCC'.
"The downgrade mainly reflects the group's weakening liquidity and
persistently very high leverage, which are no longer commensurate
with 'B' ratings," said Standard & Poor's credit analyst Melvyn
Cooke.
The negative outlook reflects the group's weak liquidity,
resulting from the development of the currently loss-making Tellas
business, and its possible deterioration over the next 12-18
months. It also reflects Standard & Poor's view that the group's
very aggressive capital structure is likely to make it very
difficult for the group to raise any form of new financing, as
significant deleveraging is unlikely in the face of weak EBITDA
growth prospects during that period.
"The outlook also reflects S&P's concerns on the risk of EBITDA
decline if the group is unable to defend its market positions--due
to a lack of financial muscle -- or as a result of the
macroeconomic downturn," said Mr. Cooke.
S&P expects WIND Hellas' lease-adjusted gross debt (including PIK
notes) to EBITDA to remain in the high 7x by year-end 2008, with
little or no deleveraging prospects in 2009.
A downgrade could arise if liquidity shows a continuing negative
trend, with no prospects for future improvement. Similarly, S&P
will lower the ratings if the group's operating performance proves
significantly weaker than expected, including consolidated EBITDA
that significantly declines on a 12-month rolling basis.
On the other hand, S&P could revise the outlook back to stable if
WIND Hellas continues to grow revenues and EBITDA and if Tellas'
funding needs materially reduce from current levels, resulting in
a significant strengthening of WIND Hellas' liquidity to levels
more commensurate with the ratings.
=====================
N E T H E R L A N D S
=====================
NXP BV: Expects Fourth Quarter Sales to Drop by 15% to 25%
----------------------------------------------------------
NXP Semiconductors on Thursday provided updated sales guidance for
the fourth quarter of 2008 in light of weakening macroeconomic
conditions and a deteriorating sales environment.
NXP said visibility of sales remains very limited. The company
disclosed that based on overall consumer sentiment, recent order
book development, and expected future trading levels, it now
foresees a 15% to 25% sequential sales decline in the fourth
quarter on a business and currency comparable basis. This
compares to the previous guidance of an 8 to 14% sequential sales
decline as announced on October 21, 2008, the company noted.
Headquartered in Eindhoven, Netherlands, NXP B.V. --
http://www.nxp.com/-- creates semiconductors, system solutions
and software that deliver better sensory experiences in TVs,
set-top boxes, identification applications, mobile phones, cars
and a wide range of other electronic devices. The company has
31,000 employees working in more than 20 countries and posted
sales of US$6.3 billion (including the Mobile & Personal
business) in 2007.
* * *
As reported in the TCR-Europe on Oct. 6, 2008, Standard & Poor's
Ratings Services affirmed its 'B-' long-term corporate credit
rating on Dutch semiconductor company NXP B.V. The outlook is
negative.
NXP BV: Liquidity Concerns Cues S&P to Junk Corp. Credit Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered its long-
term corporate credit rating on Dutch Semiconductor company NXP
B.V. to 'CCC' from 'B-'. The outlook remains negative.
At the same time, the ratings on NXP's revolving credit facility,
senior secured notes, and senior unsecured notes were also lowered
by two notches, to 'B', 'CCC', and 'CCC-', respectively. The
recovery ratings on these issues remain unchanged, at '1+' for the
revolver, '3' for the senior secured notes, and '5' for the
unsecured notes.
At Sept. 30, 2008, NXP had gross on-balance-sheet debt of $6.1
billion.
"The downgrade reflects S&P's increased concerns about NXP's
liquidity following the company's trading update of this morning,"
said Standard & Poor's credit analyst Patrice Cochelin.
Amid a rapidly deteriorating environment, NXP now expects sales to
fall by 15%-25% sequentially in fourth-quarter 2008, at constant
currencies and perimeter. This is a significantly more rapid fall
than the 8%-14% that NXP anticipated one month ago, and S&P is
concerned that NXP will struggle to operate profitably in the near
term, and that the company's already high cash burn will further
increase as a result.
The negative outlook primarily reflects Standard & Poor's rising
concerns about NXP's near-term liquidity, as the company is likely
to use a large portion of its cash balances in the next few
quarters to meet its debt service obligations and fund its
restructuring plan, while its operating cash flow could shrink.
"These concerns are adding to questions regarding the
sustainability of the company's capital structure in the current
trading environment," said Mr. Cochelin.
The negative outlook also reflects uncertainties about the
company's ability to rapidly monetize its 20% stake in the
wireless joint venture.
A positive rating action would likely require a successful sale of
the 20% stake in the wireless joint venture for an amount in line
with S&P's expectations, and marked improvements in cash flow
generation prospects.
ROMPETROL GROUP: Fitch Changes Outlook to Neg.; Keeps B+ Rating
---------------------------------------------------------------
Fitch Ratings has revised Netherlands-based The Rompetrol Group
N.V.'s Outlook to Negative from Stable. Its Long-term foreign
currency Issuer Default rating is affirmed at 'B+'.
The Outlook revision is based on TRG's weak operating cash flow
and profitability in the first nine months of 2008, high financial
leverage, very tight interest coverage and high short-term
refinancing risk given the weak liquidity profile of the company.
TRG's rating reflects the company's weak standalone credit profile
balanced against its strong strategic and operational ties with
its Kazakhstan-based integrated oil & gas parent, KazMunaiGaz
National Company (NC KMG, 'BBB-'/'F3'/Negative). It also factors
in tangible support from NC KMG and TRG's minority shareholder
Rompetrol Holding S.A. in the form of subordinated shareholder
loans (US$533 million to date with further loans expected).
Fitch expects TRG's free cash flow for 2008 to be negative given
the company's weak funds from operations and sizable capital
expenditure. The company plans to substantially increase its
capex for 2009-2013 to about US$1 billion in order to modernize
the Petromidia refinery, increase its throughput from 4 to 5
million tonnes per annum in 2010 and expand fuel retail operations
in Romania and neighboring countries. According to market
conditions and the company's debt levels, some additional projects
may be included in the capex plan. TRG plans to fund the capex
program largely from its cash flow from operations and additional
shareholder loans.
The company's liquidity position remains weak, with short-term
debt maturities of US$800 million at end-September 2008 exceeding
cash and undrawn committed facilities. This leaves the company
dependent on the renewal of its trading and working capital
facilities amid difficult conditions in the credit market, and/or
on additional shareholder loans to fund its obligations. TRG
plans to refinance a major part of its short-term debt with a US$1
billion syndicated bank facility in the first half of 2009.
Fitch notes NC KMG does not guarantee TRG's debt and the agency
understands that there is currently no plan for an enhancement of
TRG's capital structure via equity injections from TRG
shareholders. However, NC KMG's subordinated loans provide an
option to convert into equity on loan maturity in 2011. TRG's
operational ties with NC KMG increased in H108 after the parent
started to supply most of the crude oil needs for TRG's refining
business with favorable payment terms.
===========
R U S S I A
===========
41 WOOD ENTERPRISE: Creditors Must File Claims by December 14
-------------------------------------------------------------
Creditors of SE 41 Wood Enterprise of Russian Federation
Ministry of Defense (TIN 2707000048) have until Dec. 14, 2008, to
submit proofs of claims to:
A. Krylov
Temporary Insolvency Manager
Office 9
Amurskiy Boulevard 11
680028 Khabarovsk
Russia
Tel: 8 (4212) 57-46-50
8 (4212) 56-15-16.
The Arbitration Court of Khabarovsk commenced bankruptcy
supervision procedure. The case is docketed under Case No. A73–
10498/2008,–38.
CONSTRUCTION MANUFACTURING: Claims Deadline on December 14
----------------------------------------------------------
Creditors of LLC Construction Manufacturing Company (TIN
3442090616) have until Dec. 14, 2008, to submit proofs of claims
to:
A. Vershinin
Temporary Insolvency Manager
Post User Box 2791
400064 Volgograd
Russia
The Arbitration Court of Volgogradskaya commenced bankruptcy
supervision procedure. The case is docketed under Case No. A12–
16648/08-s49.
The Debtor can be reached at:
LLC Construction Manufacturing Company
7 Gvardeyskou Str. 4a/320
Volgograd
Russia
DALNEVOSTOCHNAYA TRADE: Creditors Must File Claims by Dec. 14
-------------------------------------------------------------
Creditors of LLC Dalnevostochnaya Trade and Transportation
Company (TIN 2721119197, PSRN 1042740160979) have until
Dec. 14, 2008, to submit proofs of claims to:
G. Smirnova
Temporary Insolvency Manager
Post User Box 105/34
Sheronova Str. 7
680020 Khabarovsk-20
Russia
The Arbitration Court of Khabarovsk commenced bankruptcy
supervision procedure. The case is docketed under Case No. A73–
5048/2008,–37.
The Debtor can be reached at:
LLC Dalnevostochnaya Trade and Transportation Company
Krasnorechenskaya Str. 94
680023 Khabarovsk
Russia
EAST AND EUROPE: Creditors Must File Claims by December 14
----------------------------------------------------------
Creditors of LLC East and Europe Investment Financial Company
(TIN 2310110381) have until Dec. 14, 2008, to submit proofs of
claims to:
A. Yevtushenko
Insolvency Manager
Post User Box 737
404130 Bolzhskiy
Volgogradskaya
Russia
The Arbitration Court of Krasnodarskiy commenced bankruptcy
proceedings against the company after finding it insolvent. The
case is docketed under Case No. A-3218348/2008,–1/1201B.
The Debtor can be reached at:
LLC East and Europe Investment Financial Company
Krasnodar
Russia
KB TIMBER: Court Names Temporary Insolvency Manager
---------------------------------------------------
The Arbitration Court of Khabarovsk appointed A. Shportko as
Temporary Insolvency Manager for LLC KB Timber Trade Ltd. The
case is docketed under Case No. A73–11066/2008,–36. He can be
reached at:
Kirova Str. 48/8
690068 Vladivostok
Russia
The Debtor can be reached at:
LLC KB Timber Trade Ltd
Tikhookeanskaya Str. 200/28
Khabarovsk
Russia
KRAFT-STROY-KOM LLC: Creditors Must File Claims by January 14
-------------------------------------------------------------
Creditors of LLC Kraft-Stroy-Kom (TIN 7702356360) (Demolition
Works) have until Jan. 14, 2009, to submit proofs of claims to:
A. Vasilyev
Insolvency Manager
Post User Box 2691
400120 Volgograd
Russia
The Arbitration Court of Moscow commenced bankruptcy proceedings
against the company after finding it insolvent. The case is
docketed under Case No. A40–31236/06–103-565B.
The Debtor can be reached at:
LLC Kraft-Stroy-Kom
Kuznetskiy Most 18/1
107031 Moscow
Russia
MARIYSKIY MECHANICAL: Creditors Must File Claims by January 14
--------------------------------------------------------------
Creditors of OJSC Maryiskiy Mechanical Plant Scientific Production
Association (TIN 1215085542, PSRN 1031200403530) have until
Jan. 14, 2009, to submit proofs of claims to:
A. Fominykh
Insolvency Manager
Office 1
Yarmarochnaya Str. 11
428003 Cheboksary
Russia
The Arbitration Court of Mariy El commenced bankruptcy
proceedings against the company after finding it insolvent. The
case is docketed under Case No. A-38–33/2008,–9-35.
The Debtor can be reached at:
OJSC Maryiskiy Mechanical Plant
Lunacharskogo Str. 28
424016 Ioshkar-Ola
Mariy El
Russia
MOBILE OJSC: Fitch Maintains 'BB+' Long-Term Issuer Rating
----------------------------------------------------------
Fitch Ratings has affirmed Russia-based OJSC Mobile TeleSystems's
Long-term Issuer Default rating at 'BB+', National Long-term
rating at 'AA(rus)' and Short-term IDR at 'B'. The Outlooks for
the Long-term IDR and National Long-term rating have been revised
to Negative from Stable. The agency also assigned MTS's
outstanding domestic bonds series 1 and 2 a final senior unsecured
foreign currency rating of 'BB+' and a National Long-Term rating
of 'AA(rus)'.
The rating action follows a revision of the Outlook on Joint Stock
Financial Corporation Sistema's IDRs to Negative from Stable. MTS
is majority-controlled by Sistema ('BB-'/Outlook Negative), which
exercises significant influence on MTS's financial and operating
strategies including its dividend payments and treasury policies.
The Negative Outlook reflects MTS' continued exposure to the
increased risks in the non-telecom segments of the Sistema group
and a likely increase in its stand-alone refinancing risks by 2010
if the HoldCo pressures MTS for more dividend payments, and if the
Russian Ruble continues to depreciate.
MTS is exposed to significant foreign currency risks because its
revenues are derived in Russian rubles and other local currencies
of CIS countries where it operates, while a significant share of
its debt is denominated in USD and, to a lesser extent, in Euro.
MTS' stand-alone operating and financial performance is likely to
remain strong in the expected challenging economic environment.
Its mobile business is expected to be reasonably resilient to
macroeconomic deterioration. Although further growth is likely to
stall, relatively low ARPUs across MTS's entire geographic
franchise will protect it against a fall in revenues on the back
of expected stable usage. After many years of strong growth, the
company has the opportunity to oversee efficiency improvements and
cost-cutting in a less dynamic market which will help support its
margins.
MTS's domestic RUR10 billion bond series 1 has a headline maturity
in October 2013, and its RUB10 billion series 2 has a headline
maturity in October 2015. However, both bonds were issued with
18-month put options attached which limits their effective
maturity to 1.5 years.
MOSCOW BANK: Fitch Changes Outlook on 'B+' Ratings to Negative
--------------------------------------------------------------
Fitch Ratings has revised its rating Outlooks on the Moscow Bank
for Reconstruction and Development (MBRD - 'B+') and Dalcombank
(DCB - 'B+') to Negative from Stable.
The Outlook revisions for MBRD and Dalcombank follow a revision of
the rating Outlook on Sistema Joint Stock Financial Corp. (Sistema
- 'BB-') to Negative from Stable. Sistema is the majority
shareholder of MBRD and the 100%-owner of Dalcombank. MBRD and
Dalcombank's ratings, which have been affirmed, reflect Fitch's
view of the strong propensity of Sistema to provide support to the
banks in case of need. However, the Negative Outlooks on the
banks reflect the possibility that Sistema's ability to provide
support could be hampered in future.
Fitch notes that MBRD's liquidity position has not come under
heightened pressure during recent weeks, having been supported by
increased customer balances of Sistema's subsidiaries (customer
accounts have increased 30% since the end of September 2008).
Dalcombank experienced a marked tightening of liquidity at the
beginning of October following a deposit run, but received support
from MBRD at that time and customer account balances have since
stabilised. The agency also notes that both banks have access to
funds offered by Russia's Central Bank.
MBRD is a medium-sized Russian bank, 95%-owned by Sistema.
Servicing the needs of Sistema remains an important part of MBRD's
business, but the bank is also developing a third-party customer
franchise and diversifying into the retail segment.
DCB is a small-sized Russian bank based in Khabarovsk with a broad
presence in other regions of far east Russia. The bank engages in
corporate and retail lending and is 100%-owned by Sistema.
Rating actions:
MBRD
-- Long-term Issuer Default rating (IDR): affirmed at 'B+';
-- Outlook revised to Negative from Stable
-- Short-term IDR: affirmed at 'B'
-- Individual: affirmed at 'D/E'
-- Support: affirmed at '4'
-- National Long-term: affirmed at 'A-(A minus)(rus)'; Outlook
revised to Negative from Stable
DCB
-- Long-term IDR: affirmed at 'B+'; Outlook revised to Negative
from Stable
-- Short-term IDR: affirmed at 'B'
-- Individual: affirmed at 'E'
-- Support: affirmed at '4'
-- National Long-term: affirmed at 'A-(A minus)(rus)'; Outlook
revised to Negative from Stable
SISTEMA JOINT: Fitch Maintains 'BB-' Issuer Default Ratings
-----------------------------------------------------------
Fitch Ratings has affirmed Russia-based Sistema Joint Stock
Financial Corp.'s Long-term foreign and local currency Issuer
Default ratings at 'BB-', respectively. The Outlooks on both
ratings were revised to Negative from Stable.
"The Negative Outlook reflects increasing refinancing and
liquidity risks at the Sistema Holding Company level and building
pressures to potentially provide support to some of its weaker
subsidiaries that have found themselves in a deteriorating
operating and financial environment," says Nikolay Lukashevich,
Senior Director with Fitch's TMT team. "At the same time,
Sistema's ratings continue to be underpinned by strong cash flow
generation at MTS, its key mobile subsidiary, and HoldCo's
flexibility to influence MTS's dividend payments and cash
management."
HoldCo cash flows are primarily comprised of dividends from its
subsidiaries, assets sales and intercompany loan repayment from
its subsidiaries. In the current tight market environment with
depressed asset valuations and rising debt redemption calls at
many of Sistema's operating subsidiaries, dividends from MTS are
likely to be the main contributor to HoldCo's cash flows. Sistema
received US$676 million in dividends from its 53% stake in MTS in
2008, and future dividend payments are expected to remain
sufficient to service HoldCo's stand-alone financial obligations
and provide limited support to its opcos. MTS's net leverage
remains low at 0.5x Net Debt/OIBDA at end-Q208 on the last-twelve-
month basis providing significant headroom for increased dividend
payouts without putting pressure on its ratings. With MTS being a
pure-play mobile provider, its operating performance is likely to
be resilient in a downturn scenario. However, its financial
performance may be impaired and its refinancing risks are likely
to increase if the Russian rouble and other currencies of CIS
countries, where MTS also operates, depreciate. While all of
MTS's revenues are in local CIS currencies, a significant share of
its debt is in USD and Euro.
Some of Sistema's opcos are currently renegotiating the terms of
their bank loans, and some have applied for refinancing from VEB,
a state-controlled bank for strategic development projects, under
a government-sponsored facility that offers potential support to
Russian corporates. If at least some of these efforts prove
successful, pressure for potential support from the HoldCo is
expected to diminish.
Sistema has taken a number of steps to improve free cash flow
generation across the group reducing the group's capex by 30% vs.
the budget in Q408, and putting on hold new projects and M&A deals
that were in the pipeline. However, Fitch understands that many
of Sistema's non-telecom opcos will require additional
restructuring efforts to adapt these businesses to the new market
conditions, stabilize their financial performance, improve their
cash flow generation and ultimately reduce a need for potential
support from the Holdco. Sistema's ratings could face pressure if
the company struggles to address these issues regarding its non-
telecom opcos.
The group's leverage was moderate at 1.3x ND/EBITDA at end-Q208 on
an LTM basis. This is expected to rise to 1.6x at end-2008 on the
back of involuntary share buy-backs at Comstar and MTS, and the
latter paying out dividends in Q408. As the group's focus has
shifted to debt repayments, leverage is expected to decline from
this level, potentially down to 1.0x by end-2009 which should help
address refinancing risks in 2010.
SISTEMSHALS JSC: Fitch Confirms Long-term Issuer Rating at 'B'
--------------------------------------------------------------
Fitch Ratings has affirmed Russian property developer JSC Sistema-
Hals' Long-term Issuer Default rating and Short-term IDR at 'B',
respectively. The agency has simultaneously downgraded the
company's National Long-term rating to 'BBB-(rus)' from
'BBB(rus)'. The Outlooks on the Long-term IDR and National Long-
term rating have been revised to Negative from Stable.
The downgrade of SH's National Long-term rating and the revision
of the Long-term IDR Outlook reflects a weakening in both the
company's stand-alone profile and the implied level of support
from SH's parent company, AFK Sistema (rated 'BB-'/Negative).
In terms of potential parental support, Fitch continues to believe
there is willingness on the part of Sistema, which owns
approximately 80% of SH, to support SH should such support be
required. Moreover, tangible evidence of support has been
observed in recent months, most notably the pledge of assets by
Sistema in relation to certain debt facilities of SH. Given the
perceived linkage between SH and its stronger parent, Fitch
continues to notch up SH's ratings to reflect the possibility of
support.
However, Sistema's ability (as opposed to a willingness) to
support SH could be impaired should its own credit profile weaken
going forward. Fitch views such future weakening as a
possibility, reflected by the agency's separate rating action in
which the Outlook on Sistema's Long-term IDR was revised to
Negative from Stable.
The Negative Outlook on SH's ratings also reflect concern
regarding SH's stand-alone profile. SH is currently operating in
a difficult environment, with a weakening Russian real estate
market likely to reduce earnings, asset values and operating cash
flows going forward. The difficult financing environment also
restricts the company's ability to fund new projects and refinance
existing debt.
The stand-alone profile is also adversely affected by the size of
the company's leverage (net debt/LTM EBITDAR), which as of H108
stood at 6.6x. Leverage of this magnitude is viewed as risky,
especially as SH's portfolio is less than mature, with many of its
projects being in the development stage, and not yet yielding much
contracted, steady rental income. Fitch also has some concerns
that a weakening market and high debt levels could eventually lead
to covenant problems.
The Negative Outlook indicates that SH's ratings could be lowered
within the next 6-18 months, especially if SH's stand-alone
profile deteriorates yet further without further tangible evidence
of increased support from Sistema A downgrade could also occur
if the rating of Sistema were to be downgraded, thus implying a
reduced ability on the part of Sistema to support SH, or if Fitch
perceived a reduced willingness on the part of Sistema to provide
support.
VOLGOGRADSKIY GUBERNSKIY: Court Names Insolvency Manager
--------------------------------------------------------
The Arbitration Court of Volgogradskaya appointed A. Shirochenko
as Insolvency Manager for OJSC Volgogradskiy Gubernskiy Cannery
Holding (TIN 3445048443). The case is docketed under Case No.
A12–911/05-s49. He can be reached at:
Apt. 32
Yeliseyeva Str. 15a
400120 Volgograd
Russia
The Debtor can be reached at:
OJSC Volgogradskiy Gubernskiy Cannery Holding
Maykopskaya Str. 5
Volgograd
Russia
VOSTOK-ROS-STROY LLC: Creditors Must File Claims by December 14
---------------------------------------------------------------
Creditors of LLC Vostok-Ros-Story (Construction) have until
Dec. 14, 2008, to submit proofs of claims to:
S. Aliyeva
Insolvency Manager
Office 21
Komsomolskiy Prospect 1
Amursk
682640 Khabarovskiy
Russia
The Arbitration Court of Khabarovskiy commenced bankruptcy
proceedings against the company after finding it insolvent. The
case is docketed under Case No. A73–2616/2008,–9.
The Debtor can be reached at:
LLC Vostok-Ros-Story
Matveyevskoe shosse 42
680000 Khabarovsk
Russia
YUVIS-STROY LLC: Creditors Must File Claims by January 14
---------------------------------------------------------
Creditors of LLC Yuvis-Stroy (TIN 2724059193) (Construction)
have until Jan. 14, 2009, to submit proofs of claims to:
G. Chmutina
Insolvency Manager
Office 5
Frunze Str. 119
680028 Khabarovsk
Russia
The Arbitration Court of Khabarovsk commenced bankruptcy
proceedings against the company after finding it insolvent. The
case is docketed under Case No. A73–2409/2008,–38.
The Debtor can be reached at:
LLC Yuvis-Story
Stantsionnuy Pereulok 12/404
Khabarovsk
Russia
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S W I T Z E R L A N D
=====================
ARTEFFEKT EVENT: Creditors Must File Proofs of Claim by Dec. 5
--------------------------------------------------------------
Creditors owed money by JSC Arteffekt Event are requested to file
their proofs of claim by Dec. 5, 2008, to:
JSC awit Treuhand
Landquartstrasse 3
9320 Arbon
Switzerland
The company is currently undergoing liquidation in Arbon. The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on May 22, 2007.
BILL + CO: Deadline to File Proofs of Claim Set December 5
----------------------------------------------------------
Creditors owed money by LLC Bill + Co Schweisstechnik are
requested to file their proofs of claim by Dec. 5, 2008, to:
Siegfried Bill
Pfaffenzielstrasse 3a
5300 Turgi
Switzerland
The company is currently undergoing liquidation in Untersiggenthal
AG. The decision about liquidation was accepted at an
extraordinary shareholders' meeting held on Sept. 23, 2008.
BRANDT SYSTEMS: Creditors Have Until December 5 to File Claims
--------------------------------------------------------------
Creditors owed money by LLC Brandt Systems & Support are requested
to file their proofs of claim by Dec. 5, 2008, to:
Jonathan Brandt
Bruggmoosstrasse 21
5454 Bellikon
Switzerland
The company is currently undergoing liquidation in Bellikon AG.
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Aug. 15, 2008.
BUSCH AUTOMOBIL: Proofs of Claim Filing Deadline is December 6
--------------------------------------------------------------
Creditors owed money by JSC Busch Automobil are requested to file
their proofs of claim by Dec. 6, 2008, to:
Kurt Krummenacher
Gassliweg 1
8955 Oetwil a.d.L
Switzerland
The company is currently undergoing liquidation in Zurich. The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Oct. 5, 2007.
INTER-MARKA JSC: Creditors' Proofs of Claim Due by December 5
-------------------------------------------------------------
Creditors owed money by JSC Inter-Marka are requested to file
their proofs of claim by Dec. 5, 2008, to:
Lorenz Camenzind
Brambergrain 4
6004 Luzern
Switzerland
The company is currently undergoing liquidation in Zug. The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Oct. 17, 2008.
LEUCA BAU: December 5 Set as Deadline to File Claims
----------------------------------------------------
Creditors owed money by JSC Leuca Bau are requested to file their
proofs of claim by Dec. 5, 2008, to:
Albert Bass
Liquidator
Trust Company JSC Treuhand und Revision
Bahnhofstrasse 8
3904 Naters
Switzerland
The company is currently undergoing liquidation in Brig-Glis. The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Dec. 17, 1984.
SCDR JSC: Creditors Must File Proofs of Claim by December 4
-----------------------------------------------------------
Creditors owed money by JSC SCDR (Switzerland) are requested to
file their proofs of claim by Dec. 4, 2008, to:
Siegfried Bill
Pfaffenzielstrasse 3a
5300 Turgi
Switzerland
The company is currently undergoing liquidation in Schlieren. The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Aug. 29, 2006.
SG INVESTMENT: Deadline to File Proofs of Claim Set December 5
--------------------------------------------------------------
Creditors owed money by JSC SG Investment are requested to file
their proofs of claim by Dec. 5, 2008, to:
JSC ATAG Private Client Services
St. Jakobs-Str. 17
4052 Basel
Switzerland
The company is currently undergoing liquidation in Baar. The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Oct. 14, 2008.
UBS AG: To Implement New Compensation System in 2009
----------------------------------------------------
UBS AG said in a press statement Monday last week that beginning
in 2009, it will adopt a new compensation model for the Board of
Directors and the Group Executive Board.
UBS said its new compensation model will be focused on the long-
term and more closely aligned with the value creation of the firm.
The fundamental changes are:
* The Chairman of the Board of Directors is no longer bound
to the same incentive system as the Group Executive Board
and will no longer receive variable compensation
components.
* Variable cash compensation for the Group Executive Board
is based on a bonus/malus system.
* A similar concept to the bonus/malus system is effective
for variable equity compensation
UBS noted the Chairman of the Board and the members of the Group
Executive Board will not receive any variable compensation for
2008. The size, composition and allocation of 2008 variable
compensation for other employees will be determined by the Board
of Directors once 2008 Group results are known and after
consultation with the Swiss Federal Banking Commission (SFBC).
The new compensation system was discussed with the SFBC in
accordance with the requirements listed in the action plan of the
Swiss authorities and the standards for the financial sector which
are currently being established. These discussions will be
continued and the salary system will be regularly assessed with
respect to these standards.
About UBS AG
Based in Zurich, Switzerland, UBS AG -- http://www.ubs.com/--
is a global provider of financial services for wealthy clients.
UBS's financial businesses are organized on a worldwide basis
into three Business Groups and the Corporate Center. Global
Wealth Management & Business Banking consists of three segments:
Wealth Management International & Switzerland, Wealth Management
US and Business Banking Switzerland. The Business Groups
Investment Bank and Global Asset Management constitute one
segment each. The Industrial Holdings segment holds all
industrial operations controlled by the Group. Global Asset
Management provides investment products and services to
institutional investors and wholesale intermediaries around the
globe. The Investment Bank operates globally as a client-driven
investment banking and securities firm. The Industrial Holdings
segment comprises the non-financial businesses of UBS, including
the private equity business, which primarily invests UBS and
third-party funds in unlisted companies.
* * *
As reported in the Troubled Company Reporter-Europe on July 8,
2008, Moody's Investors Service downgraded to B- from B the
financial strength rating (BFSR) of UBS AG. The rating outlook is
stable.
For second quarter of 2008, UBS reported a Group net loss
attributable to shareholders of CHF358 million.
As reported in the Troubled Company Reporter-Europe on Nov. 5,
2008, UBS AG said its fourth quarter results will be impacted by a
possible reversal of own credit gains and a loss on the equity in
the fund to be controlled by the Swiss National Bank (SNB). In
October, UBS and the SNB have reached an agreement to transfer up
to US$60 billion of currently illiquid securities and other assets
from UBS's balance sheet to a separate fund entity.
===========
T U R K E Y
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EREGLI DEMIR: S&P Keeps BB- Corp. Credit Rating; Negative Outlook
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it revised its
outlook on Turkey-based steel producer Eregli Demir ve Celik
Fabrikalari T.A.S. to negative from stable. At the same time, S&P
affirmed the 'BB-' long-term corporate credit rating.
"The outlook revision reflects a combination of sharply
deteriorating global steel market conditions, together with
heightened liquidity risks arising from Erdemir's reliance on
uncommitted bank financing at times of turbulent credit markets,"
said S&P's credit analyst Paulina Grabowiec.
S&P expects Erdemir to report lower steel volumes in 2009 due to
sharply deteriorating demand in its key markets of automotive,
construction, and consumer sectors. Consequently, S&P expects
Erdemir to cut its production. Sector peers already cut the
production by an average of 25%-30%. Coupled with rapidly
weakening flat and long steel prices, Erdemir's profitability is
expected to be significantly eroded in the near term. The extent
of production cuts and level of steel prices will dep end on the
magnitude and duration of the steel market slowdown, which in
S&P's view will extend well into 2009.
Positively, S&P notes Erdemir's partial rescheduling of its
capital expenditure program to US$386 million (TRY488 million)
from US$865 million (TRY1.1 billion) in 2009 to 2010, which should
assist in preserving financial flexibility during a market
downturn.
Although cash flow generation is likely to be supported by
expected inflows of working capital due to moderating steel
prices, Erdemir's reliance on multiple and mostly uncommitted
credit lines during the dislocation in credit markets is also a
key source of concern. S&P regards possible financial support
from Erdemir's controlling shareholder Oyak (Ordu Yardimlasma
Kurumu) (BB/Stable/B), a Turkey-based pension fund, to be a
mitigating factor.
During the nine months to Sept. 30, 2008, Erdemir's performance
was strong, reflecting high selling prices and healthy volumes of
long steel products that were in evidence until the recent sharp
correction. Funds from operations (FFO) more than doubled to
TRY1.7 billion, but were consumed by sizable working capital
outflows of TRY1.5 billion. Coupled with expansionary capital
expenditure of TRY485 million and a dividend payout of TRY289
million, discretionary cash flow was negative at TRY557 million.
Adjusted debt was TRY3.1 billion at Sept. 30, 2008, about 32%
higher year on year. On the basis of FFO of TRY1.8 billion for
the past 12 months, the FFO-to-adjusted debt ratio was strong for
the ratings at about 59%.
The ratings reflect Erdemir's position as the largest Turkey-based
steelmaker in a cyclical and capital-intensive industry; ongoing
raw material cost pressures exacerbated by low self-sufficiency in
iron ore and coking coal; concentration in an increasingly
competitive domestic market; and country risks in the Republic of
Turkey (foreign currency BB-/Negative/B; local currency
BB/Negative/B). The ratings are supported by Erdemir's leading
domestic market position and well diversified customer base.
S&P may possibly downgrade the long-term corporate credit rating
on Erdemir if the sector downturn is even more severe and
prolonged than anticipated and leads to notable weakening of the
company's credit metrics below S&P's expectations for the rating
category. S&P expects FFO-to-adjusted debt ratio of 30% or more
on a continued basis for the rating. Weakening liquidity
prospects could also lead to additional downward pressure, for
example if Erdemir reported losses or funding became more
difficult to obtain.
Revision of the outlook to stable could be considered if Erdemir's
credit metrics remain in line with the ratings, possibly due to a
quicker recovery in demand and steel prices, although S&P does not
expect this to occur in the near term. A more robust liquidity
position could also lead to revision of the outlook to stable.
=============
U K R A I N E
=============
ACTIVE PLUS: Creditors Must File Claims by December 3
-----------------------------------------------------
Creditors of LLC Active Plus (code EDRPOU 31570475) have until
Dec. 3, 2008, to submit proofs of claim to:
The Economic Court of Kiev
B. Hmelnitskij Boulevard 44-B
01030 Kiev
Ukraine
The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on DD. The case is
docketed as 24/239-b.
The Debtor can be reached at:
LLC Active Plus
Streletskaya Str. 4
01025 Kiev
Ukraine
EXPO-COMPLEX LLC: Creditors Must File Claims by December 3
----------------------------------------------------------
Creditors of LLC Building Expo-Complex (code EDRPOU 34693984) have
until Dec. 3, 2008, to submit proofs of claim to:
Mr. I. Cherny
Liquidator
P.O.B. l 89
01024 Kiev
Ukraine
The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Oct. 30, 2008.
The case is docketed as 24/436-b.
The Economic Court of Kiev
B. Hmelnitskij Boulevard 44-B
01030 Kiev
Ukraine
The Debtor can be reached at:
LLC Building Expo-Complex
Pilipovsky Lane, 4
04050 Kiev
Ukraine
MKS TECHNOLOGY: Creditors Must File Claims by December 3
--------------------------------------------------------
Creditors of LLC MKS Technology (code EDRPOU 34490801) have until
Dec. 3, 2008, to submit proofs of claim to:
Mr. I. Cherny
Liquidator
P.O.B. l 89
01024 Kiev
Ukraine
The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Oct. 30, 2008.
The case is docketed as 24/437-b.
The Economic Court of Kiev
B. Hmelnitskij Boulevard 44-B
01030 Kiev
Ukraine
The Debtor can be reached at:
LLC MKS Technology
Zhylianskaya Str. 26
01033 Kiev
Ukraine
MOLODEZHNAYA MODA: Creditors Must File Claims by December 3
-----------------------------------------------------------
Creditors of LLC Molodezhnaya Moda (code EDRPOU 21730412) have
until Dec. 3, 2008, to submit proofs of claim to:
Vinnica State Tax Inspection
Liquidator
30 Years of Victory Str. 21
Vinnica
Ukraine
Tel: 46-04-04
46-49-56
The Arbitration Court of Vinnica commenced bankruptcy proceedings
against the company after finding it insolvent on April 21, 2008.
The case is docketed as 10/53-08.
The Economic Court of Vinnica
Hmelnickiy Str. 7
21036 Vinnica
Ukraine
The Debtor can be reached at:
LLC Molodezhnaya Moda
Tseglianoy Lane, 12
Vinnica
Ukraine
PKF MAKSI-MARKETING: Creditors Must File Claims by December 3
-------------------------------------------------------------
Creditors of LLC PKF Maksi-Marketing (code EDRPOU 34731762) have
until Dec. 3, 2008, to submit proofs of claim to:
LLC Optimal-Trade
Liquidator
P.O.B. l 101-V
Kiev 01001
Ukraine
The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Oct. 16, 2008.
The case is docketed as 24/394-b.
The Economic Court of Kiev
B. Hmelnitskij Boulevard 44-B
01030 Kiev
Ukraine
The Debtor can be reached at:
LLC PKF Maksi-Marketing
Ap. 272
Sviatoshynskaya Square, 1
03115 Kiev
Ukraine
VESK-LTD LLC: Creditors Must File Claims by December 3
------------------------------------------------------
Creditors of LLC Vesk-Ltd. (code EDRPOU 02774355) have until
Dec. 3, 2008, to submit proofs of claim to:
The Economic Court of Kiev
B. Hmelnitskij Boulevard 44-B
01030 Kiev
Ukraine
The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Sept. 29, 2008.
The case is docketed as 24/240-b.
The Debtor can be reached at:
LLC Vesk-Ltd.
Ap. 7
Degtiarevskaya Str. 38-44
03119 Kiev
Ukraine
VPTO COMPASS: Creditors Must File Claims by December 3
------------------------------------------------------
Creditors of LLC VPTO Compass (code EDRPOU 34354562) have until
Dec. 3, 2008, to submit proofs of claim to:
Mr. Ivan Radik
Liquidator
P.O.B. l 284
Kiev
Ukraine
Tel: 8(067)979-29-49
The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent. The court can be
reached at:
The Economic Court of Kiev
B. Hmelnitskij Boulevard 44-B
01030 Kiev
Ukraine
The Debtor can be reached at:
LLC VPTO Compass
Kosovsky Str. 27
Kiev
Ukraine
VTO PAMIR: Creditors Must File Claims by December 3
---------------------------------------------------
Creditors of LLC VTO Pamir (code EDRPOU 34494481) have until
Dec. 3, 2008, to submit proofs of claim to:
Mr. Radik Ivan
Liquidator
P.O.B. l 284
Kiev
Ukraine
Tel: 8(067)979-29-49
The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent. The court can be
reached at:
The Economic Court of Kiev
B. Hmelnitskij Boulevard 44-B
01030 Kiev
Ukraine
The Debtor can be reached at:
LLC VTO Pamir
Makarovskaya Str. 4
Kiev
Ukraine
UTK DELTA: Creditors Must File Claims by December 3
---------------------------------------------------
Creditors of LLC UTK Delta (code EDRPOU 34821280) have until
Dec. 3, 2008, to submit proofs of claim to:
Mr. Ivan Radik
Liquidator
P.O.B. l 284
Kiev
Ukraine
Tel: 8(067)979-29-49
The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent. The court can be
reached at:
The Economic Court of Kiev
B. Hmelnitskij Boulevard 44-B
01030 Kiev
Ukraine
The Debtor can be reached at:
LLC UTK Delta
Tankovaya Str. 4
Kiev
Ukraine
YALTUSHKOV BREADPRODUCTS: Creditors Must File Claims by Dec. 3
--------------------------------------------------------------
Creditors of LLC Yaltushkov Breadproducts Enterprise (code EDRPOU
32938843) have until Dec. 3, 2008, to submit proofs of claim to:
Mr. Oleg Boyko
Liquidator
Kozitsky Str. 46
21000 Vinnica
Ukraine
Tel: 8(0432)57-54-73
The Arbitration Court of Vinnica commenced bankruptcy proceedings
against the company after finding it insolvent on Oct. 9, 2008.
The case is docketed as 5/227-08.
The Economic Court of Vinnica
Hmelnickiy Str. 7
21036 Vinnica
Ukraine
The Debtor can be reached at:
LLC Yaltushkov Breadproducts Enterprise
Zheleznodorozhnaya Str. 4
Yaltushkov
Barsky
23021 Vinnica
Ukraine
===========================
U N I T E D K I N G D O M
===========================
ACTIVANT SOLUTIONS: Orlando Bravo Resigns from Board of Directors
-----------------------------------------------------------------
Orlando Bravo resigned from the board of directors of Activant
Solutions Inc. Mr. Bravo was a member of the company's
Compensation Committee of the Board. Mr. Bravo was appointed as a
director of the company pursuant to the Stockholders Agreement,
dated May 2, 2006.
Additionally, the company stated that S. Scott Crabill would
continue to serve as a director of the company, as a designee of
entities affiliated with Thoma Cressey Bravo, Inc.
Headquartered in Livermore, California, Activant Solutions Inc. --
http://www.activant.com/-- is a technology provider of vertical
business management solutions serving small and medium-sized
retail and wholesale distribution businesses. The company serves
three primary vertical markets: automotive aftermarket; hardlines
and lumber; and wholesale distribution.
Founded in 1972, Activant provides customers with industry
tailored proprietary software, professional services, content,
supply chain connectivity, and analytics. Activant has operations
in California, Colorado, Connecticut, Illinois, New Jersey,
Pennsylvania, South Carolina, Texas, Utah, Canada, Ireland, and
the United Kingdom.
* * *
Activant Solutions Inc. senior subordinated notes continue to
carry Moody's Investors Service's Caa1 rating which was placed in
April 2006.
AMETHYST MOTOR: Names Joint Administrators from Deloitte
--------------------------------------------------------
Robin David Allen and Dominic Lee Zoong Wong of Deloitte & Touche
LLP were appointed joint administrators of Amethyst Motor Company
Ltd. on Oct. 31, 2008
The company can be reached at:
Amethyst Motor Company Ltd.
Gloucester Road
Cheltenham
Gloucestershire
GL51 8NR
England
BRITISH ENERGY: Pre-Tax Earnings Down 50% to GBP257Bln in 1H08
--------------------------------------------------------------
The Scotsman reports that British Energy Group plc's pre-tax
earnings dropped by 50% to GBP257 million in the first six months
to September 28 as a result of lower electricity output.
Total output in the period was 22.7 terrawatt hours (TWh), against
30.7 TWh in the same period last year, the report discloses.
The report however notes that while the company blamed power
station shutdowns for the decline, it is confident it can extend
the lives of its existing nuclear power stations and, with the
help of EDF, build new reactors.
About British Energy
Headquartered in Livingston, Scotland, British Energy Limited
-- http://www.british-energy.com/-- is the UK's largest
electricity generator, employing over 6,000 people. The British
Energy Group owns and operates eight nuclear power stations in the
UK: seven of these are Advanced Gas-cooled Reactor (AGR) stations,
located at Dungeness, Hartlepool, Heysham (two stations), Hinkley
Point, Hunterston, Torness and the only civil Pressurised Water
Reactor (PWR) station in the UK, located at Sizewell in Suffolk.
British Energy also owns and operates the Eggborough coal-fired
power station in Yorkshire. British Energy's total current
capacity is 10.6GW (of which 8.7GW from nuclear generation) with
delivered output of 58.4TWh (of which 50.3TWh comprises nuclear
output) for the year ended March 2008. British Energy is the
lowest carbon emitter of the UK's major electricity generators.
* * *
As reported in the TCR-Europe on Sept. 26, 2008, Fitch placed
British Energy Group plc's and British Energy Bond Finance plc's
(BEBF, formerly British Energy Holdings plc) 'BB+' Long-term
Issuer Default Ratings on Rating Watch Positive. BEBF's
amortizing bonds - rated 'BB' - are also put on RWP. The rating
actions follow the announcement of a proposed takeover by France's
EDF SA ('AA-'/ 'F1+'/Rating Watch Negative).
CIG CIBYN: Goes Into Administration
-----------------------------------
BBC News reports that Caernarfon, Gwynedd-based abattoir Cig Cibyn
has gone into administration after running into a series of
difficulties.
According to the report, the company, which earlier laid off 50
workers, owed farmers' unions thousands of pounds.
The company mothballed its operations on Oct. 22 as a result of a
downturn in economy, the report relates.
"The company has had to face numerous national crises such as the
foot and mouth outbreak, in addition to the current difficult
financial situation," a spokesman for Gwynedd council was quoted
by the report as saying.
The spokesman, as cited by the report, noted the council had
worked closely with Cig Cibyn over the years to support them as
they struggled to overcome the difficulties, but the company is
unable to carry on due to the challenging economic situation which
exists at the moment.
The assembly government, the report adds, did not offer financial
help as rules did not permit it to intervene in every
circumstance.
CLOROX CO: September 30 Balance Sheet Upside-Down by US$400MM
-----------------------------------------------------------
The Clorox Company's balance sheet at Sept. 30, 2008, showed total
assets of US$4.5 billion and total liabilities of US$4.9 billion,
resulting in a stockholders' deficit of approximately
US$400 million.
Clorox reported first-quarter net earnings of US$128 million.
Current quarter earnings included about US$6 million in pretax
restructuring-related charges and a pretax loss of US$3 million
related to the Burt's Bees acquisition.
In the year-ago quarter, Clorox reported net earnings of
US$111 million. These year-ago results included about US$27
million in pretax restructuring-related charges. The charges for
both years were associated with the consolidation of the company's
manufacturing network and other actions the company decided to
take in light of its Centennial Strategy.
First-quarter sales grew 12% to US$1.38 billion, compared with
US$1.24 billion in the year-ago quarter. Excluding the Burt's
Bees acquisition, sales in the current quarter grew 8%.
Net cash provided by operations was US$93 million, compared to
US$163 million in the year-ago quarter. The decrease was due to
higher working capital. Working capital reflected the impact of
the Burt's Bees acquisition and higher inventory levels resulting
from increased commodity costs and inventory builds to support
both new product launches and the manufacturing network
consolidation. Also contributing to the decline in cash flow were
higher incentive compensation and interest payments versus the
year-ago quarter.
A full-text copy of the company's 10-Q filing is available for
free at http://ResearchArchives.com/t/s?3506
About The Clorox Company
Headquartered in Oakland, California, The Clorox Company (NYSE:
CLX) -- http://www.thecloroxcompany.com/-- manufactures and
markets household cleaning products with fiscal year 2007
revenues of USUS$4.8 billion. Clorox markets some of consumers'
most trusted and recognized brand names, including its namesake
bleach and cleaning products, Green Works(TM) natural cleaners,
Armor All(R) and STP(R) auto-care products, Fresh Step(R) and
Scoop Away(R) cat litter, Kingsford(R) charcoal, Hidden
Valley(R) and K C Masterpiece(R) dressings and sauces, Brita(R)
water-filtration systems, Glad(R) bags, wraps and containers,
and Burt's Bees(R) natural personal care products.
Clorox has manufacturing facilities in China, Costa Rica,
Dominican Republic, Malaysia, Panama, Peru, United Kingdom,
among others.
CYC HOLDINGS: Appoints Joint Liquidators from Tenon Recovery
-----------------------------------------------------------
Nigel Ian Fox and Stanley Donald Burkett-Coltman of Tenon
Recovery, were appointed joint liquidators of CYC Holdings plc on
Oct. 30, 2008.
The company can be reached through Tenon Recovery at:
Highfield Court
Tollgate
Chandlers Ford
Eastleigh
Hampshire
SO53 3TZ
England
GRANITE FINANCE: Fitch Says Breach Unlikely to Impact Ratings
-------------------------------------------------------------
Fitch Ratings has said that Granite's breach of the non-asset
trigger is unlikely to impact either the ratings assigned to the
Residential Mortgage-Backed Securities issued from Northern Rock's
Granite master trust or the related Whinstone programs. However
the agency cautioned that deteriorating collateral performance
could lead to negative rating action on the lower rated tranches
from these programs.
The non-asset trigger resulted from the seller share being less
than the minimum required seller share for two consecutive monthly
distribution dates, which Fitch had earlier indicated was a
possibility. This means that the mortgage trustee will now
distribute all principal receipts to Granite Finance Funding
Limited and Granite Finance Funding 2 Limited until their
respective shares are reduced to zero. Furthermore, all notes are
now deemed to be pass-through and are immediately due and payable.
Notes will be redeemed sequentially, however the 'AAA' notes will
be repaid in order of their legal final maturity.
It should be noted that Fitch's ratings address repayment of
principal by legal final maturity and that therefore any potential
change to expected repayment profile would not impact ratings
where repayment by legal final maturity is expected within the
agency's rating scenarios. When rating the Granite transactions,
Fitch simulates numerous scenarios which include those whereby NR
is unable to substitute assets into the trust from the outset.
The repayment by legal final maturity is met in all relevant
rating scenarios.
"Although the breach of the non-asset trigger is not expected to
threaten the credit ratings assigned to the notes issued by
Granite or Whinstone, negative rating action on Whinstone and the
lower rated tranches of notes issued from the Granite Master
Issuer could follow as a result of a continuing deterioration in
collateral performance, a situation which will be amplified as a
result of NR being no longer permitted to sell new loans into the
trust" says Francesca Zwolinsky, Director in Fitch's RMBS team.
Arrears performance of the underlying mortgage collateral of the
Granite trust and Whinstone has deteriorated significantly during
the first nine months of 2008 with mortgages 90 days past the due
date comprising 2.07% of the current collateral balance as at the
date of the latest investor report for September, compared to
0.52% as at the end of December 2007.
Although arrears performance has worsened for the mortgage market
as a whole, attributable to the weakening of the housing market in
conjunction with the macroeconomic downturn, delinquencies in
Granite and Whinstone have risen at a considerably faster rate in
comparison to its master trust peers. This has been exacerbated
by the shrinking of the mortgage book as the higher quality end of
the portfolio has re-mortgaged with other lenders, in addition to
the strengthening of NR's mortgage arrears capitalization policy
whereby the ability to capitalize arrears where borrowers have
made less than three monthly payments has been removed.
This deterioration has been mitigated by credit enhancement
levels, which, particularly in the case of the capitalist
issuances from Funding, have risen considerably since closing.
Nevertheless, Fitch expects this performance trend to continue,
driven by Granite's higher than average exposure to both high LTV
mortgages and the 'Together' product, in conjunction with adverse
selection that the agency envisages arising as a result of the
aggressive redemption policies implemented by NR in order to aid
the repayment of facilities provided by the UK Authorities. The
agency notes that this may jeopardize future performance.
HBOS PLC: Lloyds TSB Shareholders Back Proposed Takeover
--------------------------------------------------------
BBC News reports that Lloyds TSB shareholders have overwhelmingly
supported the proposed takeover of HBOS plc.
BBC relates Lloyds TSB shareholders voted 95.98% in favor of the
takeover, which if pushed through will create a banking giant with
145,000 staff and 3,000 branches.
"This is an overwhelming endorsement for the logic of this
transaction," Lloyds TSB chairman Sir Victor Blank was quoted by
the report as saying.
The shareholders also approved plans to raise GBP5.5 billion by
issuing new shares and special preference shares, BBC notes.
Citing BBC News, the TCR-Europe on Nov. 19, 2008, reported that
HBOS urged its shareholders to vote in favor of its merger with
Lloyds TSB.
In the same report HBOS warned the bank could face nationalization
if shareholders turn down a proposed takeover by Lloyds TSB as it
would need significantly more capital, making the loss of private
sector status more likely.
HBOS shareholders are scheduled to vote on the GBP12 billion
(US$18 billion) takeover by Lloyds TSB on December 12, the report
disclosed.
About HBOS Plc
HBOS Plc (LON: HBOS) -- http://www.hbosplc.com/-- is a United-
Kingdom based company. It is the holding company of the HBOS
Group. It operates through five divisions: retail, corporate,
insurance & investment, international and treasury & asset
management. The company's retail range of products includes
personal and business banking products and services to 23 million
customers.
NARDINI'S AT REGATTAS: Placed Into Administration
-------------------------------------------------
Catherine Fegan and Alison Chiesa at the Herald report that
Nardini's at Regattas in Largs has been placed into administration
at the request of its owners.
Ken Pattullo and Scott McGregor, from the Glasgow office of
rescue, recovery and restructuring specialist Begbies Traynor,
have been appointed joint administrators of the restaurant, which
employs 24 people, the report relates.
According to the report, the owners, Ricky Nardini and his wife
Fiona, brought in administrators in an attempt to safeguard the
future of the business.
Mr. Pattullo, as cited by the report, disclosed the business had
"significant liabilities" before it went into administration but
it was "business as usual" in anticipation of a speedy sale.
"Despite the current economic climate we have already had interest
expressed in the business and are extremely hopeful of achieving a
quick sale, in order to protect jobs and allow the restaurant to
continue trading," Mr. Pattullo was quoted by the report as
saying.
TULLETT PREBON: Fitch Changes Outlook to Pos.; Keeps BB+ Rating
---------------------------------------------------------------
Fitch Ratings has revised Tullett Prebon plc's Outlook on its
Long-term Issuer Default to Positive from Stable. The Long-term
IDR is affirmed at 'BB+' and the group's GBP150 million
subordinated debt is affirmed at 'BB-'.
The Positive Outlook reflects Fitch's expectation that net debt
and leverage ratios are capable of further improvement over the
medium-term despite potential earnings pressure for the inter-
dealer broker industry following a period of very strong
profitability amidst the extreme market volatility of the past
year. In Q108 TP repaid GBP30m of its GBP300 million five-year
senior bank loan taken out to finance a capital return to
shareholders in 2007; a further GBP30 million repayment is due in
Q1 of 2009-2011, with the final balance due in Q1 2012. TP's
GBP150 million subordinated bond has a call date in August 2009,
but a final maturity not until 2014, if not called. Consequently,
TP has limited near- and medium-term re-payment needs.
TP, like many IDBs, has benefited in terms of volumes and revenue
from the extreme market volatility experienced recently. The
global de-leveraging process, consolidation in the financial
services sector and a return to more normal levels of volatility
are likely to dampen recent positive revenue trends. However, the
diversity of TP's core franchise and its strength in voice broking
for the more traditional products such as foreign exchange,
interest rate swaps and government bonds should help support its
revenue. The flexibility of its cost structure, where broker
remuneration is heavily performance-linked, should also lead to
more resilient earnings.
TP's Long-term IDR reflects the low credit and market risk profile
of its operating subsidiaries, their good operating cash flow,
their low funding requirements and its good franchise. It also
takes into account the group's relatively small shareholder's
funds, the cyclicality of certain revenue lines, the operational
risks inherent in an IDB business and the leverage taken on
following a debt-financed return of capital to shareholders in
March 2007.
TP's operating profit grew by a good 15% in 2007 and by 30% in
H108 reflecting contribution from new broker hires and the very
favorable market conditions. The heightened levels of volatility
evident during H108 continued into the first four months of H208.
Operating margins improved to 18%, despite being dampened by
investment costs in electronic broking.
In February 2007, the notching between the group's GBP150 million
subordinated debt and TP's Long-term IDR was widened to two
notches from one notch. This widening reflected the deterioration
in recovery assumptions following the capital return.
TP is the world's second largest IDB. It is listed in London and
is the product of numerous mergers and acquisitions.
WOOLWORTHS GROUP: Lenders Block Sale of Retail Arm
--------------------------------------------------
Richard Fletcher at the Daily Telegraph reports that lenders of
Woolworths Group plc last week refused to approve the sale of the
group's retail arm.
Citing executives close to the negotiations, the report says both
the deal and Woolworths were now "teetering on the brink of
collapse".
Woolworths, the report relates, admitted Wednesday it was in talks
with restructuring specialist Hilco about the possible sale of its
800-store retail chain for a nominal GBP1.
The report notes Hilco and the Woolworths board are close to
finalizing the details of the deal under which Hilco would take on
about GBP250 million worth of Woolworths' debt alongside its
stores.
The deal, according to the report, was aimed at securing jobs and
protecting shareholders' investment in the group's profitable DVD
publisher 2entertain, and EUK, a specialist distributor.
Woolworths, the report states, must complete the disposal of the
retail chain before Christmas to avoid the risk of being pushed
into administration by its syndicate of lenders, led by Bank of
Ireland subsidiary Burdale Financial and GMAC Commercial.
Other members of the syndicate include Barclays, Bank of America,
GE, Wachovia, and asset-based lending specialists Frontier and
Venture, the report discloses.
The report recounts the syndicate, which lent Woolworths GBP385
million in January, called in Deloitte last month to review a
turnaround plan drawn up by new chief executive Steve Johnson.
Headquartered in London, England, Woolworths Group plc --
http://www.woolworths.co.uk/-- is principally a UK retailer
focused on the home, family and entertainment.
ZESTDEW LTD: Names Joint Administrators from PwC
------------------------------------------------
Derek Anthony Howell, Anthony Victor Lomas, Dan Yoram Schwarzmann
and Graham Hunter Martin of PricewaterhouseCoopers LLP were
appointed joint administrators of Zestdew Ltd. on Oct. 29, 2008.
The company can be reached at:
Zestdew Ltd.
25 Bank Street
London
E14 5LE
England
* Fitch Says UK RMBS Ratings Resilient to Housing Deterioration
---------------------------------------------------------------
Fitch Ratings said that investment grade UK RMBS master trust
ratings are resilient to the agency's expected UK housing market
deterioration.
The agency tested the ratings of all Fitch-rated UK RMBS master
trust transactions against a decline in UK house prices of
approximately 30% from their peak in October 2007. The analysis
also factored in increasing defaults based on the performance of
prime mortgages during the recession of the early 1990's. Fitch
found that under such stress, negative rating migration is minimal
and confined to the lower rated tranches.
Due to the complex nature of master trust transactions, an in-
depth cash flow analysis has been performed for each program
whereby the ratings were further stressed assuming the occurrence
of a number of possible events, including, but not limited to,
various prepayment speeds, the inability of originators to
replenish the trusts and a breach of a non-asset trigger.
"Our tests showed that prime UK RMBS master trust ratings are very
well positioned to withstand the expected deterioration in the UK
housing market," says Francesca Zwolinsky, Director in Fitch's
RMBS team. "Although there is the potential for negative rating
migration for the lower rated tranches of some master trust
programs, the ratings of senior notes are stable."
In contrast to the traditional pass-through RMBS transactions,
master trusts are highly structured whereby both the originator
and the note holders have an interest in the trust property. Non-
asset triggers feature within these programs and are designed to
accelerate the repayment of senior notes before any problems arise
within the loan portfolio and structure. This is achieved by
allowing principal that would otherwise have been paid to the
originator, to flow to the note holders.
For notes issued from seasoned capitalist master trust
transactions structured with static reserve funds, credit
enhancement has grown significantly. This is due to the non-
amortizing nature of these reserve funds and the principal pay
down of the notes, allowing for expected losses to be comfortably
absorbed by excess spread and the respective reserve funds.
Whilst credit enhancement levels within seasoned programs which
have seen no recent issuance have increased over time, some of the
programs where notes have been more recently issued have been
structured with substantial first loss buffers accomplished by
inflated reserve funds or in the utilization of deeply
subordinated notes.
* BCC Says UK Businesses to Face Painful and Prolonged Recession
----------------------------------------------------------------
The British Chambers of Commerce published its latest Quarterly
Economic Forecast, which envisages five consecutive quarters of
negative GDP growth and estimates that total government borrowing
may hit GBP111 billion. The Forecast reports that:
* UK public finances have deteriorated sharply and the
fiscal deficit is forecast to be considerably bigger than
Government predictions;
* Total Government borrowing may total GBP111 billion in
2009/10, or 7.6 per cent of GDP, a huge deficit which
entails serious risks for the UK;
* Five consecutive quarters of negative GDP growth expected;
* Distinct risk of temporary deflation at the end of 2009;
* Unemployment will hit nearly three million by mid 2010;
* If the markets interpret Government's fiscal strategy as
reckless, the pound may plummet to dangerous new lows;
* A credible stimulus package must focus on business tax
cuts with reductions in National Insurance the most
effective means of avoiding sharp unemployment rises; and
* Government may have to play a direct role in provision of
finance to business if credit markets remain paralyzed.
British Chambers of Commerce, Director General, David Frost,
commented: "Britain is facing an extraordinary period in its
economic history. Current circumstances are unique, and the
global credit crisis is entering a critical phase.
"Monetary policy alone is not enough to help businesses and
consumers under unprecedented financial pressure. An effective
fiscal package, with tax cuts for businesses at its very core is
paramount."
Chief Economist for the BCC, David Kern, said: "British business
will face a painful and prolonged UK recession in the next few
quarters. The economic climate will be exceptionally difficult
and threatening.
"UK public finances are in a dreadful state. Public sector net
borrowing will inevitably balloon in the short term.
"We predict five consecutive quarterly GDP declines.
"A rise in unemployment to almost 3 million by 2010 is very
probable in the current recession.
"Annual CPI inflation is forecast to fall well below target in the
final months of 2009. UK inflation is likely to be below 1 per
cent at that time, and there is a distinct risk that the UK would
experience temporary deflation at the end of 2009.
"Monetary and fiscal policy must now run in tandem.
"If the Government's fiscal stimulus is inadequate, or lacks
credibility, the UK recession will be worse.
"The markets' reaction to the fiscal stimulus, due to be announced
by the Chancellor in his Pre-Budget Report, will depend on whether
he can present a credible medium-term strategy for strengthening
the UK's budgetary position once the present crisis is over.
"If the markets interpret the UK measures as being reckless, the
pound may plummet to dangerous lows, and yields on gilts could
rise sharply, forcing the Government to change course, frustrating
its policy aims.
"The Chancellor must also establish new and more objective fiscal
rules than the ones that are currently being discarded, and
independent experts must assess these new rules.
"Given the urgency of the economic crisis and the Chancellor’s
limited room for maneuver, we believe the stimulus package should
initially be focused on tax cuts. Lower business taxes, and
reductions in NIC rates, are the most effective methods for
limiting the threat of sharp unemployment increases.
"The vital flow of bank finance to businesses is crucial,
particularly smaller companies. If credit markets remain
paralyzed the Government may have to play a direct role, either in
guaranteeing business finance or in providing it directly."
* EUROZONE: Slips Into Recession; GDP Fell 0.2% in Third Quarter
----------------------------------------------------------------
Citing EU figures, BBC News reported that the Eurozone has
officially slipped into recession after economy in the region
contracted by 0.2% in the third quarter and in the previous
quarter from April to June.
BBC noted it is the first recession the region has seen since the
euro's creation in 1999.
Gilles Moec, senior economist at Bank of America, has forecast
that the region will shrink by 1% next year, BBC disclosed.
"Looking ahead, we can expect further quarters of negative GDP
growth, until the third quarter of 2009, simply because so far we
have not had in the GDP figures the full impact of the credit
market crisis," Mr. Moec was quoted by BBC as saying. "We also
haven't yet seen the full impact of unemployment on consumer
spending."
According to BBC, the gloomy forecasts are being fueled by the
uncertainty relating to the financial panic and slowing exports
exacerbated by the strengthening euro against the dollar and
pound.
The member states of the eurozone are France, Italy, Germany,
Belgium, the Irish Republic, the Netherlands, Luxembourg, Spain,
Portugal, Slovenia, Malta, Greece, Austria, Finland and Cyprus.
* Ford and GM Fail to Convince Lawmakers on Bailout Urgency
----------------------------------------------------------
Greg Hitt, Jeffrey McCracken, and Matthew Dolan at The Wall Street
Journal report that General Motors Corp., Ford Motor, and Chrysler
LLC failed to convince lawmakers of their urgent need for
financial assistance.
According to WSJ, Congressional Democratic leaders wanted to take
out the US$25 billion financial aid for the automakers out of the
government's US$700 billion bailout to the financial markets.
Many Republicans and the Bush administration have resisted the
proposal, and instead favored loosening controls over US$25
billion in already approved loans -- meant to help the industry
retool -- to aid in the current crisis. The report says that the
Republican-backed proposal could be added on Thursday as an
amendment to a separate measure that would extend jobless
benefits. Some Democrats, including Michigan Senator Carl Levin,
suggested they would be willing to consider it, while more senior
Democrats strongly opposed it.
Senate Majority Leader Harry Reid, says WSJ, backed away from
efforts to force a vote this week on a Democratic-backed bill that
will allow the bailout, saying that he might move a Republican
alternative proposal on Thursday, but it faced strong opposition.
According to Detroit Free Press, former Republican presidential
candidate Mitt Romney said automakers should go bankrupt rather
than obtain a US$25-billion government bailout. "A managed
bankruptcy may be the only path to the fundamental restructuring
the industry needs."
Many lawmakers still had grave doubts about whether the auto
makers were too weak to be saved, Patrick Yoest and Josh Mitchell
at WSJ relate, citing Democratic leaders. Many lawmakers were
unconvinced that the executives of GM, Ford Motor, and Chrysler
could turn their companies around, the report says.
According to WSJ, public anger about the prospect of another
taxpayer-funded rescue of corporations appeared to play a major
role in the Democrat's failure to secure government financial
assistance for GM, Ford Motor, and Chrysler. WSJ states that
Senator Reid told reporters, "The sad reality is that no one has
come up with a plan that can pass the House and Senate and get
signed by President Bush. The executives of the auto companies
have not been able to convince the Congress and the American
people that this government bailout will be its last."
Congressional leaders will consider a special session for the
second week of December if GM, Ford Motor, and Chrysler submit
comprehensive business plans showing how they will return their
firms to stability, and the plans must be submitted by Dec. 2, WSJ
reports, citing Senator Reid.
Failure to gain support in Washington could force GM to file for
bankruptcy protection, but the company is resisting suggestions
from advisers that it make preparations for a Chapter 11 filing,
WSJ says, citing people familiar with the matter. The sources
said that GM admitted to the Congress this week that it could soon
run out of cash, WSJ states. Ford Motor and Chrysler also ruled
out filing for bankruptcy, according to the report.
WSJ states that United Auto Workers President Ron Gettelfinger
told the Bush administration and the Congress must come to an
agreement on aid, or one or more of the Detroit Three auto makers
could collapse by the year-end, and "the costs that would come
from this are just too great."
If one of the automakers would file for bankruptcy, some estimates
put U.S. job losses as high as 2.5 million in 2009, according to
WSJ. The report says that GM, Ford Motor, and Chrysler employ
almost a quarter-million workers. More than 730,000 other workers
produce materials and parts that go into cars, and one million
more people work in dealerships nationwide, the report states.
WSJ relates that Senator Reid said that the Bush administration
could act on its own, noting "the authority to provide funds to
the auto industry lies with the Treasury Department," which
administers the market-rescue fund.
Automakers Split Over Condition for US$25BB Bailout
Siobhan Hughes at Dow Jones Newswires reports that GM, Ford Motor,
and Chrysler were split over whether to accept a new round of
mandatory increases in fuel-mileage standards in return for a
US$25 billion in emergency loans from the government.
GM, Ford Motor, and Chrysler are seeking additional, more
immediate loans, Dow Jones states. As reported in the Troubled
Company Reporter on Nov. 20, 2008, the CEOs of GM and Ford said
that they would refuse a US$1 salary in exchange for government
aid, while Chrysler's CEO agreed to the wage.
Congress voted in 2007 to boost fuel-efficiency standards to an
average 35 miles per gallon by 2020, Dow Jones says. According
to the report, the Congress already approved US$25 billion in
loans to help factories make more fuel-efficient cars.
Loans should be contingent upon a commitment to develop a new
generation of cars that reduce greenhouse-gas emissions and
operate more efficiently, Dow Jones says, citing Democratic
lawmakers. The executives of the companies, according to the
report, suggested that automakers were already struggling to meet
the new fuel-efficiency standards mandated by a 2007 law.
Dow Jones quoted Ford Motor CEO Alan Mulally as saying, "I think
the work we did last year was very, very good work. We completely
stretched the enabling technology to be able to meet the fuel-
efficiency improvement. I don't think we know of any more
technology that we can bring to bear to accelerate that."
GM CEO Richard Wagoner, according to Dow Jones, said, "We're
stretching to meet the requirements as they are."
Dow Jones reports that Chrysler Robert Nardelli said that "given
our situation, we'd be open to any requirements that you felt
appropriate."
According to Dow Jones, the Democratic-controlled Congress has
been asking car makers to make more fuel-efficient vehicles, which
Detroit has resisted.
About Ford Motor Co.
Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles in
200 markets across six continents. With about 260,000 employees
and about 100 plants worldwide, the company's core and affiliated
automotive brands include Ford, Jaguar, Land Rover, Lincoln,
Mercury, Volvo, Aston Martin, and Mazda. The company provides
financial services through Ford Motor Credit Company.
The company has operations in Japan in the Asia Pacific region. In
Europe, the company maintains a presence in Sweden, and the United
Kingdom. The company also distributes its brands in various
Latin-American regions, including Argentina and Brazil.
* * *
As reported in the Troubled Company Reporter on Nov. 11,
2008, Moody's Investors Service lowered the debt ratings of
Ford Motor Company, Corporate Family and Probability of
Default Ratings to Caa1 from B3. The company's Speculative
Grade Liquidity rating remains at SGL-3 and the rating outlook
is negative. In a related action Moody's also lowered the
long-term rating of Ford Motor Credit Company to B3 from B2.
The outlook for Ford Credit is negative.
As reported in the Troubled Company Reporter on Oct. 10, 2008,
Fitch Ratings downgraded the Issuer Default Rating of Ford Motor
Company and Ford Motor Credit Company by one notch to 'CCC' from
'B-'.
* BOND PRICING: For the Week Nov. 17 to Nov. 21, 2008
-----------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRIA
-------
Asfinag 4.500 10/16/17 EUR 102.69
BELGIUM
-------
Barry Calle SVCS 6.000 07/13/17 EUR 74.82
CYPRUS
------
Abh Financial Lt 8.200 06/25/12 USD 54.88
Alfa MTN Invest 9.250 06/24/13 USD 55.07
FRANCE
------
Alcatel S.A. 4.750 01/01/11 EUR 11.89
6.380 04/07/14 EUR 68.67
Altran Technologies S.A. 3.750 01/01/09 EUR 12.81
Artemis Conseil 2.000 07/31/11 EUR 71.50
Axa SA 7.130 12/15/20 GBP 77.63
Calyon 6.000 06/18/47 EUR 44.37
Soc Air France 2.750 04/01/20 EUR 17.28
Wavecom S.A. 1.750 01/01/14 EUR 24.08
GERMANY
-------
Bayer AG 5.000 07/29/05 EUR 73.30
HUNGARY
-------
Agrokor 7.000 11/23/11 EUR 70.54
IRELAND
-------
Alfa Bank 8.630 12/09/15 USD 35.34
Allied Irish Bks 5.250 03/10/25 GBP 72.44
5.630 11/29/30 GBP 68.34
Ardagh Glass 7.130 06/15/17 EUR 64.92
Banesto Finance Plc 6.120 11/07/37 EUR 6.12
LUXEMBOURG
----------
AK Bars Bank 8.250 06/28/10 USD 97.93
9.250 06/20/11 USD 48.50
Alrosa Finance 8.880 11/17/14 USD 59.82
Beverage Pack 8.000 12/15/16 EUR 59.71
NETHERLANDS
-----------
ABN Amo Bank B.V. 7.410 01/13/20 USD 30.50
6.000 03/16/35 EUR 57.36
6.250 06/29/35 EUR 56.88
Air Berlin Finance B.V. 1.500 04/11/27 EUR 19.98
ALB Finance BV 9.000 11/22/10 USD 57.40
9.750 02/14/11 GBP 39.94
8.750 04/20/11 USD 97.32
7.880 02/01/12 EUR 34.76
9.250 09/25/13 USD 39.87
Alfa BK Ukraine 9.750 12/22/09 USD 100.33
ASML Holding NV 5.750 06/13/17 EUR 60.01
Astana Finance 7.880 06/08/10 EUR 99.15
9.000 11/16/11 USD 96.92
ATF Capital BV 9.250 02/21/14 USD 58.54
Centercrdt Intl 8.000 02/02/11 USD 49.77
8.630 01/30/14 USD 36.39
Hit Finance BV 4.880 10/27/21 EUR 78.17
RUSSIA
------
Sistema Capital 8.880 01/28/11 USD 62.60
SPAIN
-----
Abertis Infra 4.380 03/30/20 EUR 76.71
Auvisa 4.790 12/15/27 EUR 74.94
UNITED KINGDOM
--------------
Azovstal 9.130 02/28/11 USD 51.21
Amlin Plc 6.500 12/19/26 GBP 74.70
Anglian Water
Finance Plc 2.400 04/20/35 GBP 44.29
Aspire Defence 4.670 03/31/40 GBP 58.78
4.670 03/31/40 GBP 59.38
Aviva Plc 5.250 10/02/23 EUR 76.02
Barclays Bank Plc 11.650 05/20/10 USD 60.50
5.700 07/14/25 USD 73.34
*********
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. Pius Xerxes V. Tovilla, Valerie C. Udtuhan, Marites
O. Claro, Rousel Elaine C. Tumanda, Joy A. Agravante, 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 * * *