/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/081223.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Tuesday, December 23, 2008, Vol. 9, No. 254 Headlines A U S T R I A AIGNER LEOPOLD: Claims Registration Period Ends January 7 HAFRA LLC: Claims Registration Period Ends January 7 STRASSMAYR LLC : Claims Registration Period Ends January 7 VIPS SOFTWARE: Claims Registration Period Ends January 7 C Y P R U S DELANCE LTD: Moody's Downgrades Rating to 'B1' & Reviews Rating D E N M A R K ATLAS SHIPPING: Files for Bankruptcy F R A N C E BANQUE D'ORSAY'S: Fitch Downgrades Individual Rating to 'D' CALYON CREDIT: Moody's Junks Rating on US$5 Million Tranche C DELPHI CORP: Can Sell Global Exhaust Biz to Bienes for US$17MM LES DELICES: Put Into Liquidation by Dinan Court WINDERMERE XII: S&P Downgrades Rating on Class G Notes to 'B' G E O R G I A VTB BANK: Fitch Affirms Individual Rating at D/E G E R M A N Y ANTIOCH CO: Committee Taps Taft Stettinius as Counsel APS GMBH: Claims Registration Period Ends January 19 CONTINENTAL AG: May Get Lenders' Approval on Debt Restructuring FLYING DUTCHMAN: Claims Registration Period Ends February 6 GROHE HOLDING: Moody's Reviews 'B2' Rating for Possible Downgrade KEY PLASTICS: Court OKs Payment of Claims, Other 1st Day Motions KLOECKNER & CO: French Unit Fined EUR169 Mln Over Price-Fixing KLOECKNER & CO: EUR169 Mil. Fine Won't Affect S&P's 'BB' Rating MARSCHNER DRUCK GMBH: Claims Registration Period Ends Feb. 6 MOBEWA GMBH: Claims Registration Period Ends January 30 PHOTOTRONIC INC: Posts US$210 Million Net Loss for Fiscal 2008 RAPEOIL BIOKRAFT: Claims Registration Period Ends Jan. 28 SCHENCK-AUTOMATEN GMBH: Claims Registration Period Ends Jan. 22 I R E L A N D ATHENEE CDO: Moody's Junks Ratings on Two Classes of Notes I T A L Y LUSITANO MORTGAGES: Moody's Cuts Rating on Class D Notes to B3 K A Z A K H S T A N AINA-2007 LLP: Proof of Claim Deadline Slated for Feb. 3 ASIA CART: Creditors Must File Claims by Feb. 3 BOTASAN LLP: Claims Filing Period Ends Feb. 4 KAMAZ-DIESEL LLP: Creditors' Claims Due on Feb. 4 KAZAKHGOLD GROUP: Fitch Puts B Issuer Default Rating on WatchNeg. KOBDA LLP: Claims Registration Ends Feb. 4 NEWSPAPER CENTER: Proof of Claim Deadline Slated for Feb. 3 SARAPSHY ATYRAU: Creditors Must File Claims by Feb. 3 SKIBUS LLP: Claims Filing Period Ends Feb. 4 TEMIR MERDIGER: Creditors' Claims Due on Feb. 4 K Y R G Y Z S T A N ITIG RISK: Creditors Must File Claims by February 3 GALACTICA LLC: Creditors Must File Claims by January 3 N E T H E R L A N D S JAZZ CDO: Fitch Downgrades Class C Notes to 'B' P O R T U G A L BPN SGPS: Moody's Keeps 'Caa1' Issuer Rating & Puts Neg. Outlook R U S S I A ALROSA CO: Gets RUR44.3 Bln Refinancing Loan from VTB ASTRA-LES LLC: Creditors Must File Claims by January 12 AVENUE OSTEUROPA: Moody's Junks Corporate Family Rating INDUSTRIAL TECHNOLOGIES: Creditors Must File Claims by Jan. 12 KAZAN-INSTRUMENT-SERVIS: Creditors Must File Claims by Jan. 12 KLIMOVSKIY CANNERY: Creditors Must File Claims by January 12 MM-METAL LLC: Creditors Must File Claims by January 12 ROOF RUSSIA: Fitch Downgrades Ratings on Three Tranches to Low-B ROSSIYA INSURANCE: Fitch Puts B+ Insurer FS Rating on WatchNeg. SAKH-LES LLC: Court Names Temporary Insolvency Manager STROY-SERVIS LLC: Creditors Must File Claims by February 12 TRANS OIL LLC: Creditors Must File Claims by February 12 UDOMLYA LLC: Creditors Must File Claims by February 12 ZEYA AIRPORT LLC: Creditors Must File Claims by February 12 S P A I N AYT CAIXANOVA: Fitch Assigns 'BB-' Rating on EUR26 Mil. Notes GC FTGENCAT: Moody's Assigns 'Ca' Rating on Series D Notes S W E D E N FORD MOTOR: To Hold Talks with UAW for Cost Savings S W I T Z E R L A N D ALBRECHT LLC: Creditors Must File Proofs of Claim by Dec. 31 ALPENRESTAURANT WIRZWELI: Deadline to Claims Set January 2 GENERAL MOTORS: Will Start Talks With UAW in January LANUS LLC: Creditors Have Until December 31 to File Claims LOT CLOTHING: Proofs of Claim Filing Deadline is December 31 RENDIA LLC: Creditors' Proofs of Claim Due by December 31 RW SPENGLEREI: December 31 Set as Deadline to File Claims T U R K E Y YASAR HOLDING: Fitch Downgrades Issuer Default Ratings to 'B' U K R A I N E ENERGY-TECH-MACH-K LLC: Creditors Must File Claims by Jan. 2 ENTERPRISE MOVIPACK: Creditors Must File Claims by January 2 ESPRIT-VV LLC: Creditors Must File Claims by January 2 INTERPIPE LIMITED: Fitch Downgrades Issuer Ratings to 'B-' KARAT OF XXI: Creditors Must File Claims by January 2 KOLORIT-M LLC: Creditors Must File Claims by January 2 KRONOS-INVEST LLC: Creditors Must File Claims by January 2 OLETRADE LLC: Creditors Must File Claims by January 2 PARITET LLC: Creditors Must File Claims by January 2 PISCICULTURAL ENTERPRISE: Creditors Must File Claims by Jan. 2 POLYPACK LLC: Creditors Must File Claims by January 2 SOYUZ MERIDIAN: Creditors Must File Claims by January 2 TENDER PROCEDURES: Creditors Must File Claims by January 2 * Fitch Reports Negative Outlook for Ukrainian Energy Sector * Fitch Affirms 'B' Currency Rating of Ukraine's City of Kyiv * UKRAINE: Foreign Debt Doubled to US$105 Billion U N I T E D K I N G D O M ADEPTIAS LTD: Appoints Joint Administrators from Tenon Recovery ARCTIC WINDOWS: Placed Into Administration; Tenon Appointed BERNSTEIN GROUP: Taps PwC as Joint Administrators BEVAN BUILDERS: Names Joint Administrators from Grant Thornton COOLREC UK: Goes Into Administration; 40 Jobs at Risk DTZ HOLDINGS: Could Go Into Administration if Fund-Raising Fails ELECTRO-MEC Ltd: Brings in Joint Administrators from Baker Tilly EMF-UK 2008-1: Fitch Downgrades 4 Tranches on Lehman Exposure EUROSAIL 2006-1: Fitch Downgrades Ratings on Class E Notes to 'CC' EUROSAIL UK: Fitch Downgrades Ratings on 39 Tranches FOTO PROCESSING: Appoints Joint Administrators from KPMG GREEN CONTRACTS: Calls in Joint Administrators from Tenon Recovery HOLMES MASTER: Moody's Assigns Ba2 Rating on Class D Notes HOLMES MASTER: Fitch Assigns 'BB' Rating on GBP190 Mil. Notes KINGSBOURNE ESTATES: Taps Joint Administrators from PwC MFI GROUP: Closes 111 Stores; 1,400 Jobs Affected NEARBY STORES: Taps Joint Administrators from KPMG P.C.M. LTD: Assets Sold to Confluence; 64 Jobs Secured SOUTHERN PACIFIC: Fitch Downgrades Ratings on 15 Tranches SPIRE TOOLS: Appoints Joint Liquidators from Tenon Recovery SUMMERHALL: Bought Out of Administration by Stewarts WORKING INTERIORS: Taps Liquidators from Smith & Williamson X X X X X X X X * Moody's Cuts Ratings on 273 Notes Issued by Certain CDO Deals * S&P Takes Rating Actions on 404 European Synthetic CDO Tranches * Gov't Loans Can Convert into DIP Facility for GM & Chrysler * Large Companies with Insolvent Balance Sheet ********* ============= A U S T R I A ============= AIGNER LEOPOLD: Claims Registration Period Ends January 7 --------------------------------------------------------- Creditors owed money by LLC Aigner Leopold (FN 15980a) have until Jan. 7, 2009, to file written proofs of claim to the court- appointed estate administrator: Wilhelm Hermann Deutschmann Stelzhamerstrasse 12/3 4020 Linz Austria Tel: 0732 602080 Fax: 0732 60208020 E-mail: info@df-ra.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Jan. 20, 2009, for the examination of claims at: Land Court of Linz Room 522 Linz Austria Headquartered in Pregarten, Austria, the Debtor declared bankruptcy on Nov. 14, 2008, (Bankr. Case No. 36 S 125/08m). HAFRA LLC: Claims Registration Period Ends January 7 ---------------------------------------------------- Creditors owed money by LLC Hafra (FN 126645v) have until Jan. 7, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr. Ulla Reisch Praterstrasse 62-64 1020 Wien Austria Tel: 01/212 55 00 Fax: 01/212 55 00 5 E-mail: office.wien@ulsr.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 1:45 p.m. on Jan. 21, 2009, for the examination of claims at: Land Court of Korneuburg Room 204 Korneuburg Austria Headquartered in Grossenzersdorf, Austria, the Debtor declared bankruptcy on Nov. 14, 2008, (Bankr. Case No. 36 S 125/08m). STRASSMAYR LLC : Claims Registration Period Ends January 7 ---------------------------------------------------------- Creditors owed money by LLC Strassmayr (FN 119473x) have until Jan. 7, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Erhard Hackl Hofgasse 7 4020 Linz Austria Tel: 0732/776234 0732/776235 Fax: DW 22 E-mail: hackl.hatak@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 2:00 a.m. on Jan. 20, 2009, for the examination of claims at: Land Court of Feldkirch Hall 7 Feldkirch Austria Headquartered in Waldneukirchen, Austria, the Debtor declared bankruptcy on Nov. 13, 2008, (Bankr. Case No. 14 S 57/08g). VIPS SOFTWARE: Claims Registration Period Ends January 7 -------------------------------------------------------- Creditors owed money by LLC VIPS Software (FN 37070s) have until Jan. 7, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Michael Kropiunig Max-Tendler-Strasse 28 8700 Leoben Austria Tel: 03842-45019 Fax: 03842-45019-30 E-mail: office@ra-kropiunig.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on Jan. 21, 2009, for the examination of claims at: Land Court of Leoben Hall 4 Leoben Austria Headquartered in Bad Aussee, Austria, the Debtor declared bankruptcy on Nov. 14, 2008, (Bankr. Case No. 17 S 60/08d). =========== C Y P R U S =========== DELANCE LTD: Moody's Downgrades Rating to 'B1' & Reviews Rating --------------------------------------------------------------- Moody's Investors Service has downgraded the rating of Delance Ltd. to B1 with further review for possible downgrade. Falk Frey, Senior Vice President and lead analyst at Moody's for Rolf, commented: "The downgrade reflects Moody's expectation of a declining Russian car market based, the severe negative impact of the devaluation of the Russian Ruble on the company's financial flexibility as well as the challenge to continue to maintain the ability to renew short-term funding needs with its existing banks or the ability to access new funding sources." Moody's acknowledges that the funding needs arise largely from financing the import and inventory of cars. In November Russian foreign vehicle sales were down 15% yoy hit by declining consumer confidence and tighter lending terms. Year-to date demand of foreign brands is still up by 31%. However, Moody's believes that the expected increase in import taxes on new cars to 30% from 25% could fuel further decline in demand in the months to come adding to the anticipation of an overall decline in the growth of the Russian economy. Moody's review will focus on (i) the vulnerability of Rolf's overall profitability and cash generation capability to the expected downturn new car registration and the ability to mitigate the negative impact by revenues and profits from the spare parts and repair business; (ii) the potential risk regarding the renewal of the exclusive importer contract with Mitsubishi maturing in 2009; (iii) the threat of increasing competition from large foreign dealership companies; (iv) the ability to adjust prices to rising import duties as well as (v) the rollover risk of the company's short-term bank facilities and (vi) the currency risk resulting the dollar denominated liabilities and interest payments in contrast to the revenues and profits mainly generated in Russian currency. Downgrades: Issuer: Colgrade Limited -- Senior Unsecured Regular Bond/Debenture, Downgraded to B1 from Ba3 Issuer: Delance Limited ROLF -- Corporate Family Rating, Downgraded to B1 from Ba3 Outlook Actions: Issuer: Colgrade Limited -- Outlook, Changed To Rating Under Review From Stable Issuer: Delance Limited ROLF -- Outlook, Changed To Rating Under Review From Stable Rolf's ratings were assigned by evaluating factors Moody�s believes are relevant to the credit profile of the issuer, such as i) the business risk and competitive position of the company versus others within the industry, ii) the capital structure and financial risk of the company, iii) the projected performance of the company over the near to intermediate term, and iv) management's track record and tolerance for risk. These attributes were compared against other issuers both within and outside of Rolf's core industry and Rolf's ratings are believed to be comparable to those of other issuers of similar credit risk. Moody's last rating action on Rolf was the assignment of a Corporate Family rating of Ba3 to Delance Limited which is the Holding company of the Rolf Group on June 5, 2007. Headquartered in Cyprus, Delance Limited, the holding company of the ROLF Group is an automotive group with its principal operations in Russia. ROLF is the leading importer and retailer of foreign-made cars in Russia with revenues of US$ 3.6 billion in fiscal 2007 (excluding de-consolidated Hyundai distribution sales of approximately US$400 million). ============= D E N M A R K ============= ATLAS SHIPPING: Files for Bankruptcy ------------------------------------ Atlas Shipping A/S on Thursday, December 18, 2008, filed a petition for bankruptcy with the Bankruptcy Division of the Maritime and Commercial Court in Copenhagen. Simultaneously with the bankruptcy order in respect of Atlas Shipping A/S, bankruptcy orders were issued in respect of Atlas Bulk Shipping A/S and Atlas Shipping Holding A/S. The Atlas Shipping Group has been operating as an international contractor of tonnage and provider of transport solutions in the dry bulk sector with tonnages ranging from 25,000 to 80,000 DWT (Dead Weight Tons). Since it was founded in 1996 the group has operated successfully but due to the historic drops in freight rates the management has had to realize that if the group continues its operations it will not be able to fulfill its obligations as they fall due. The Atlas Shipping Group is owned and operated by Bo Kristensen who has been involved in the shipping business for more than 25 years; Bo Kristensen states in connection with the bankruptcy: "It is extremely unfortunate, not least for all our highly skilled employees and our loyal customers, that due to the historic drop in freight rates since August 2008, we have had to realize that within a foreseeable timeframe the group will no longer be able to fulfill all its financial obligations as they fall due". In 2007 the Atlas Shipping Group had net revenues of US$789 million and a profit from operating activities of US$109 million. Total revenue in 2008 has been close to US$1 billion, but due to the global crisis in shipping the group has more than halved its profit from ordinary activities, i.e. before making the substantial loss provisions in respect of contracts. "We unfortunately have to recognize that the present freight rates and the charter-parties we have entered into before the crisis in the shipping business commenced will imply a liquidity loss of approximately US$3 million a week if we continue our operations in their present form. If we continue our operations, our present - and considerable - liquidity, will be spent within three months unless the international freight rates increase dramatically within the same period", says Mr. Kristensen and continues "Therefore we have in consultation with our advisors decided that in the present situation the sensible thing to do is to file a petition for bankruptcy." "We have informed our employees at a meeting today and we have now, with the liquidator, Michael Ziegler of Plesner Law Firm and liquidator Lisa Bo Larsen, Kromann Reumert, started helping our customers get their vessels to the destinations", says Mr. Kristensen. Today the Atlas Shipping Group operates 41 vessels worldwide and has a total of 25 employees. Altas Shipping A/S -- http://www.atlas-shipping.com-- is headquartered in Copenhagen, Denmark. =========== F R A N C E =========== BANQUE D'ORSAY'S: Fitch Downgrades Individual Rating to 'D' ----------------------------------------------------------- Fitch Ratings has affirmed Banque d'Orsay's Long-term Issuer Default Rating at 'BBB+' with Stable Outlook, Short-term IDR at 'F2' and Support Rating at '2'. At the same time, the agency has downgraded Orsay's Individual rating to 'D' from 'C/D', on account of its reduced equity base. The downgrade reflects the severe erosion to Orsay's equity base following write-offs of some exposures to failed Icelandic banks in 2008. The Individual rating reflects the bank's modest size, a good track record in its niche fields of expertise, albeit marred in H207 and 2008 when results were severely impacted by market and credit shocks. Orsay's IDRs are based on the support available from its parent, WestLB AG (rated 'F1'/ 'A-' (A minus)/Outlook Stable). WestLB's commitment to the bank is publicly stated through a 'Patronatserklarung' declaration and Fitch has received assurances from WestLB that it would provide liquidity and solvency support as required. Thus, West LB's propensity to provide support to Orsay is considered high. Any change in WestLB's IDRs or in Orsay's ownership structure would result in a change in the latter's IDRs. Orsay's core 'arbitrage' business comprises both the opportunistic purchasing of shares in takeover targets and position-taking in fixed-income instruments, often backed by matching credit default swaps, for trading and longer-term investment purposes. These activities have been loss-making so far this year and total losses reported by the bank for the year will be significant. Orsay's other activities are asset management (EUR3.6bn currently) and a small private banking business. It has experienced a sharp outflow of managed funds since the onset of the crisis in mid- 2007; with the help of West LB, investors have been able to redeem their investments and management believes this has helped preserve the bank's reputation and client relationships. A new CEO, seconded by WestLB, was appointed in Q408. Risk limits have been substantially reduced and management is focusing on de- leveraging to free up liquidity and improve capital ratios. End- 2008 assets should total around EUR5bn and regulatory capital (including qualifying subordinated debt) should reach around EUR135 million. Since June 2008, around 70% (EUR4bn) of the bank's refinancing needs have been met by ECB and US Fed lines, as is the case with many banks. WestLB has provided Orsay with EUR665 million funding, including EUR65 million subordinated debt and EUR300 million certificates of deposits. Additional funding lines are available from the shareholder if required. The tier 1 capital ratio is expected to be above 7% at end-2008. CALYON CREDIT: Moody's Junks Rating on US$5 Million Tranche C ------------------------------------------------------------- Moody's Investors Service has downgraded its rating of CALYON - Credit Derivative Transaction "Piccadilly II US$5,000,000 Tranche C due 20 March 2017". The transaction is a managed synthetic CDO referencing corporate securities. According to Moody's, the rating action is the result of deterioration in the credit quality of the transaction's reference portfolio, which includes but is not limited to exposure to Lehman Brothers Holdings Inc., which filed for protection under Chapter 11 of the U.S. Bankruptcy Code on September 15, 2008; Washington Mutual Inc., which was seized by federal regulators on September 25, 2008 and subsequently virtually all of its assets were sold to JPMorgan Chase; Fannie Mae and Freddie Mac, which were placed into the conservatorship of the U.S. government on September 8, 2008; Landsbanki Islands hf, for which a receivership committee was appointed on Tuesday, October 7, 2008. The transaction also has a significant exposure to other corporate names which continue to deteriorate in the current economic environment. This will weigh on the rating of the swap. The small subordination and thickness of the tranche has contributed to the transaction's significant rating migration. The rating action is: CALYON - Credit Derivative Transaction: (1) Piccadilly II US$5,000,000 Tranche C due 20 March 2017 Unfunded CDS between Calyon and Citibank N.A. NY - Reference No: PS578 -- Current Rating: Caa3 -- Prior Rating: A3 -- Prior Rating Date: 1 June 2007 DELPHI CORP: Can Sell Global Exhaust Biz to Bienes for US$17MM -------------------------------------------------------------- Delphi Corporation said it received approval from the U.S. Bankruptcy Court for the Southern District of New York for the sale of assets related to the company's global exhaust business to Bienes Turgon for US$17 million, subject to adjustments. "Delphi's sale of its global exhaust business is a significant, meaningful step as the company progresses with ongoing corporate and divisional transformation plans," said Ron Pirtle, president, Delphi Powertrain Systems. "This move further refines our powertrain product portfolio to feature core, differentiated technologies in which Delphi possesses competitive advantages and for which customers are calling." Delphi selected Bienes Turgon as the lead bidder and received court approval to proceed with the sale process for the global exhaust business. Delphi will carefully manage the transition of the business, and the sale will be completed in coordination with Delphi's customers, suppliers, employees, unions and other stakeholders. The transaction, which is subject to certain closing conditions, including completion of consultation procedures with certain unions and works councils, and completion of the closing documents, is expected to close during the first half of 2009. Although the company is divesting its exhaust business, Delphi Powertrain continues to provide full engine management systems -- including air and fuel management, combustion and valvetrain technology -- through its gas EMS product business unit. About Delphi Corp. Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for Chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represent the Official Committee of Unsecured Creditors. As of June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000 in total assets and US$23,742,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. The Plan has not been consummated after a group led by Appaloosa Management, L.P., backed out from their proposal to provide US$2,550,000,000 in equity financing to Delphi. LES DELICES: Put Into Liquidation by Dinan Court ------------------------------------------------ FlexNews reports that the court of Dinan has put Les Delices de Ninon into liquidation Tuesday last week. Les Delices de Ninon, which was acquired by maison Delmotte in July 2006, has been placed in bankruptcy since October this year, the report recounts. Based in Malemort, France, Delices de Ninon is a pastry firm. It employs 102 people. WINDERMERE XII: S&P Downgrades Rating on Class G Notes to 'B' ------------------------------------------------------------- Standard & Poor's Rating Services lowered and kept on CreditWatch negative its credit ratings on the class D, E, and G notes issued by Windermere XII FCC due to concerns regarding the loan backing the transaction. The other notes in this deal remain unaffected. The notes are backed by a single-loan secured by "Coeur Defense", a prime office property located in Paris, La Defense, France. The property comprises two high-rise towers interlinked with three other buildings providing 159,000 sq. m. of office and 18,000 sq. m. of ancillary accommodation. The rated note-to-value ratio is 94.8% based on a valuation as of October 2008. In addition, the borrower has recently been placed under the protection of French "procedure de sauvegarde" (safeguard proceedings), a form of pre-insolvency proceeding available in France for distressed companies. It is a precursor to reorganization or, in a worst-case scenario, insolvency. The rating actions reflect the increased risks associated with the loan in view of value deterioration, uncertainty about the outcome of the borrower proceedings, and the effect this will have on the loan performance. S&P expects these notes to remain on CreditWatch for an extended period of time while S&P continues to monitor developments of the loan. Ratings List Windermere XII FCC EUR1.519 Billion Commercial Mortgage-Backed Floating-Rate Notes Ratings Lowered And Kept On CreditWatch Negative Class To From ----- -- ---- D BBB/Watch Neg A/Watch Neg E BBB-/Watch Neg A/Watch Neg G B/Watch Neg BB/Watch Neg ============= G E O R G I A ============= VTB BANK: Fitch Affirms Individual Rating at D/E ------------------------------------------------ Fitch Ratings has affirmed the ratings of JSC VTB Bank (Georgia) (VTB Georgia), including its Long-term Issuer Default rating of 'B+' with a Negative Outlook and its Individual rating of 'D/E'. A full list of the bank's ratings is provided at the end of this announcement. VTB Georgia's IDRs continue to be driven by potential support from the bank's largest shareholder, Russian state-controlled JSC Bank VTB (VTB; IDR 'BBB+'/Outlook Negative), which currently owns a 77.6% stake. In Fitch's view, VTB would have a strong propensity to support the bank, and the agency has received renewed assurances from VTB of its intention to provide such support following the August Russia-Georgian military conflict. At the same time, Georgian transfer and convertibility risks, as reflected in the Country Ceiling of 'B+', limit the extent to which VTB Georgia may be able to receive and utilize this support. The Negative Outlook on the bank's IDR reflects the Outlook on the Georgian sovereign, and hence the potential for a downgrade of the Country Ceiling. VTB Georgia's Individual rating reflects the bank's small size, high levels of loan impairment under the bank's previous management, the limited track record of new management, the potential for asset quality and liquidity to deteriorate in a challenging operating environment and the bank's possible exposure to a renewed escalation of tensions in Russian-Georgian relations. However, the rating also considers currently reasonable loan impairment reserve coverage and capitalization and the efforts of new management to strengthen governance and performance. VTB Georgia has also managed to maintain a reasonable liquidity cushion during H208, notwithstanding the sharp deposit outflow it suffered (largely in line with other Georgian banks) during the Russia-Georgia military conflict in August. To date, the conflict does not seem to have had a substantial negative impact on the bank's franchise or its ability to operate on the Georgian market. Asset quality is currently weak, with loans overdue by more than 90 days accounting for 9% of adjusted total loans (net of those guaranteed by VTB) at mid-December 2008 (down from 11.8% at end- H108 following write-offs). Fitch has been informed that all of the non-performing loans were granted under the previous management of the bank in 2006-2007, when credit underwriting appeared to have been weak. Fitch considers there to be potential for further deterioration in asset quality as the loan book seasons in a challenging operating environment, although reserve coverage of NPLs of 1.2x in statutory accounts at mid-December 2008 provides some cushion to recognize further impairment. Additional credit risk, as for most other Georgian banks, results from the high proportion of foreign currency lending (72% in end- Q308 statutory accounts). The recent deterioration in asset quality follows write-offs during 2006-Q108 of GEL63 million of loans (equal to around 2.5x end-2005 equity). These loans date back to the 1990s and were discovered to be non-performing following VTB's acquisition of the bank. During 2007-Q108, a GEL84 million recapitalization (by means of a GEL45 million equity injection and GEL39 million gains on a securities transaction) was completed to offset these write- offs and more recent loan impairment. As a result, the equity/adjusted net loans ratio in the bank's end-Q308 statutory accounts stood at a reasonable 21% (regulatory tier 1 ratio 16.9%). In H109, the bank intends to increase its capital by a further US$16 million (equal to 56% of end-Q308 equity), although some of the new capital may be contributed as subordinated debt. The Individual rating could be downgraded if the so far better asset quality record of the bank's new management turns out to be unsustainable and loan impairment rises in a tough operating environment. Any renewed escalation of tensions in Russian- Georgian relations could also be negative for franchise and deposit stability, although in H208 the impact of such tensions on the bank has been largely manageable. In common with most Georgian banks, any sizable depreciation of the GEL could also negatively impact both asset quality and deposit stability. VTB Georgia (formerly United Georgian Bank) is the sixth-largest bank by assets in Georgia, and since January 2005 has been majority-owned by VTB. The European Bank for Reconstruction and Development holds an 8.9% stake. VTB Georgia aims to be one of the leading banks in the country, but market positions have slipped in 2007-9M08 as management has focused on strengthening its balance sheet and implementing management changes rather than achieving growth. Rating actions: -- Long-term Issuer Default rating: affirmed at 'B+'; Outlook Negative -- Short-term IDR: affirmed at 'B' -- Individual: affirmed at 'D/E' -- Support: affirmed at '4' ============= G E R M A N Y ============= ANTIOCH CO: Committee Taps Taft Stettinius as Counsel ----------------------------------------------------- The Official Committee of Unsecured Creditors appointed in the bankruptcy cases of Antioch Company and its debtor-affiliates asks the United States Bankruptcy Court for the Western District of Ohio for permission to employ Taft Stettinius & Hollister LLP as its counsel. The firm is expected to: a) advise the Committee with respect to its powers, duties and responsibilities in these cases; b) provide assistance in the Committee's investigation of the acts, conduct, assets, liabilities and financial condition of the Debtors, the operation of the Debtors' businesses and desirability of the continuance of such businesses, and any other matters relevant to the case or the proposed plan; c) prepare on behalf of the Committee all necessary pleadings and other documentation; d) advise the Committee with respect to the Debtors' proposed reorganization plan, the Debtors' proposed plan with respect to the prosecution of claims against various third parties and any other matters relevant to the case; e) provide assistance, advice and representation with respect to any legal decision involving interests represented by this Committee; f) represent the Committee in hearings and proceedings involving the Committee; and g) perform such other legal services as may be necessary and in the interest of the creditors and this Committee. The firm's professionals and their compensation rates are: Professionals Hourly Rates ------------- ------------ Members US$200-US$475 Associates US$165-US$325 Paralegals US$115-195 W. Timothy Miller, Esq., an attorney at the firm, assures the Court that the firm does not hold any interest adverse to the Debtors' estate and their creditors, and is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. About Antioch Co. The Antioch Co. -- http://www.antiochcompany.com/-- owns St. Cloud-based Creative Memories. The company was founded in 1926. It consists of operating and business units located in Ohio, Minnesota, Nevada, and Virginia. The direct-selling division encompasses the U.S. and Puerto Rico, Canada, Australia, New Zealand, Germany, Japan and the United Kingdom, with expansion planned in other European countries. The Antioch employs more than 1,090 people and manufactures, packages and markets more than 3,000 products to tens of thousands of independent sales consultants and retail dealers. As reported in the Troubled Company Reporter on Nov. 17, 20 08, The Antioch reached an agreement with lenders to restructure its debt. To facilitate this agreement, Antioch and six of its subsidiaries filed voluntary petitions for Chapter 11 protection on Nov. 13, 2008 (Bankr. S.D. Ohio Lead Case No. 08-35741). McDonald Hopkins LLC represents the Debtors in their restructuring efforts. The United States Trustee for Region 9 appointed creditors to serve on an Official Committee of Unsecured Creditors. In their summary of schedules, the Debtors listed US$66,388,321 in total assets and US$141,142,236 in total liabilities. APS GMBH: Claims Registration Period Ends January 19 ---------------------------------------------------- Creditors of APS GmbH have until Jan. 19, 2009, 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 March 4, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Dresden Hall D131 Olbrichtplatz 1 01099 Dresden 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: Harald Busshardt Boltenhagener Platz 9 01109 Dresden Germany Web site: www.schubra.de The District Court opened bankruptcy proceedings against the company on Dec. 10, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: APS GmbH Grossenhainer Strasse 2 01561 Thiendorf Germany Attn: Matthias Pusch, Manager Grossenhainer Str. 2 01561 Thiendorf Germany CONTINENTAL AG: May Get Lenders' Approval on Debt Restructuring --------------------------------------------------------------- Angela Cullen of Bloomberg News reports that Continental AG is close to an agreement with banks on the renegotiation of debt. As reported in the Troubled Company Reporter-Europe on Dec. 15, 2008, The Wall Street Journal, citing sources familiar with the matter, said Continental AG could breach terms of loans it took on in the EUR11 billion (US$14.33 billion) acquisition of Siemens AG's VDO auto-electronics business last year. Continental's earnings, hit by a sharp decline in global auto demand, could fall below a level stipulated in the loan agreement as early as March, the Journal's sources said. Power Struggle Citing the Financial Times Deutschland, Ms. Cullen of Bloomberg News relates Continental's talks with lenders may strengthen its hand in a power struggle that is emerging against Schaeffler Group, which is acquiring the German car-parts maker. According to Ms. Cullen, Financial Times Deutschland said some of the pledges by Continental that may sway the lenders stem from an agreement with Schaeffler excluding the payment of a special dividend to shareholders. On Dec. 19, Lenka Ponikelska of Bloomberg News, citing sources cited by the Financial Times, wrote Schaeffler Group may load Continental with �significant additional debt� and may be able to make the move after its tender offer for Continental closes in January. In a Dec. 12 press statement, Continental disclosed its Executive Board is concerned about the intervention of the Schaeffler Group in Continental's business negotiations. "We have been made aware of a letter from the management of the Schaeffler Group to several of our banks. In this letter, the Schaeffler Group is obviously attempting to influence the talks being held proactively by Continental with regard to securing our long-term financing. This move is a massive encroachment upon the sovereignty and independence of Continental's management. We are irritated by this action of the Schaeffler Group, as we feel that it clearly goes against the spirit of the jointly reached investment agreement. To top it off, this intervention is at a point in time when an approval of the EU Commission has not yet been granted," Continental Executive Board chairman Dr. Karl- Thomas Neumann said. The vice chairman of the Executive Board and CFO Dr. Alan Hippe pointed out that Continental will continue to hold talks with the banks as planned. "Our business partners in the banks have been familiar with our experience and reliability for many years. With this proactive step, we are safeguarding our financing as best as possible in a forward-looking manner, with a view to the uncertainties we are facing in the crisis year 2009. This has a positive effect for Continental, and at the same time is in the interest of all our shareholders, in particular the Schaeffler Group. This holds all the more true as Continental will continue to have a substantial free cash flow in 2008, 2009 and 2010 and thus further reduce its indebtedness steadily, as in 2008," Dr. Hippe said. According to Continental, the open-ended investment agreement jointly reached with the Schaeffler Group in August 2008 contains extensive provisions to safeguard the interests of Continental AG, its shareholders, employees and customers. It cannot be terminated by the parties before spring 2014. In the agreement, Continental said Schaeffler has undertaken, among other things, to limit its position to a minority shareholding in Continental AG (up to 49.99%) for a period of four years. Schaeffler has also undertaken to support the ongoing strategy and business policies of the Executive Board while maintaining its current market and brand appearance, and to not demand a sale of operations or seek other significant restructuring measures. Former German Chancellor Dr. Gerhard Schroeder is involved as a guarantor for ensuring the obligations specified in the investment agreement are fulfilled. Cost-Cutting Plan On Dec. 10, Continental said it is implementing a cost-cutting program in the high three-digit millions range, including: -- postponement of investments; -- stretching of expenditures in the area of research and development; and -- debt reduction through non-payment of dividends. "Our customers have cut their production in the fourth quarter much more than had been expected: In total, 1.5 million fewer vehicles than planned will be built this quarter in the US and Europe alone. This corresponds roughly to the entire decrease in production in the first three quarters in these regions and affects nearly all vehicle manufacturers. Nonetheless, based on the latest figures we have for fiscal 2008, we feel that an EBIT margin of 7.5% to 8.0% can still be achieved, before amortization and depreciation resulting from the purchase price allocation (PPA) as well as restructuring and integration expense," Dr. Neumann said. Dr. Hippe meanwhile stressed that the Executive Board continues to have its eyes firmly set on reducing debt, noting that "If we refrain from dividend payments, there would be a considerable contribution to debt reduction in fiscal 2008 and 2009. Such a move would thus also contribute to the stabilization of our financial situation. Based upon the dividend of EUR2 per share paid out for 2007, this would relieve result in a relief of some EUR338 million per year." Impairment Charge Dr. Neumann pointed out that, in view of the drastic drop in car sales predicted for 2009 down to the level of the early 90s, especially in Western Europe and North America, there is the risk that goodwill impairment up to about EUR1 billion will have to be posted for the Automotive Group on the 2008 balance sheet. "A key goal is still to again strengthen the equity ratio as much as possible. In this connection, we are looking into all other conceivable options," Dr. Neumann stressed. About Continental AG Headquartered in Hanover, Germany, Continental AG (OTC:CTTAY) -- http://www.conti-online.com/-- is an automotive industry supplier. The Company focuses its activities on the development, production and distribution of products that improve driving safety, driving dynamics and ride comfort. It operates in six main divisions. Chassis and Safety provides active and passive driving safety, safety and chassis sensor systems, as well as chassis components. Powertrain offers gasoline and diesel systems, actuators, motor drives and fuel supply, as well as hybrid electric vehicles systems. Interior manufactures information management modules and wireless mobile devices. Passenger and Light Truck Tires provides tires for passenger cars, light trucks, motorcycles and bicycles. Commercial Vehicle Tires offers tires for trucks, as well as industrial and off-the-road vehicles. ContiTech specializes in the rubber and plastics technology, offering functional parts, components and systems for the automotive industry and other sectors. * * * As reported in the Troubled Company Reporter-Europe on Dec. 17, 2008, Fitch Ratings downgraded Continental AG's Long-term Issuer Default and senior unsecured ratings to 'BB+' from 'BBB-' (BBB minus) and its Short-term IDR to 'B' from 'F3'. The Long-term IDR and senior unsecured ratings have been placed on Rating Watch Negative. FLYING DUTCHMAN: Claims Registration Period Ends February 6 ----------------------------------------------------------- Creditors of Flying Dutchman Productions GmbH have until Feb. 6, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on March 9, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Aalen Hall 0.11 Ground Floor Stuttgarter Strasse 7, 73430 Aalen 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 Winterhoff C/o Kanzlei Froehlich and Kuenkele Radgasse 2 89073 Ulm Germany Tel: 0731/20559930 Fax: 0731/205599390 The District Court opened bankruptcy proceedings against the company on Dec. 10, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Flying Dutchman Productions GmbH Attn: Ruediger Benz, Manager Paul-Klee-Str. 52 89520 Heidenheim Germany GROHE HOLDING: Moody's Reviews 'B2' Rating for Possible Downgrade ----------------------------------------------------------------- Moody's Investors Service has placed the ratings of Grohe Holding GmbH under review for possible downgrade, including the company's B2 corporate family rating. The rating action mainly reflects the rapid deterioration of the outlook for most of the company's key markets and the expectation of weaker results in the medium term. "The rating action reflects several factors, including the deteriorating economic outlook for Grohe's key German and Western European markets, coupled with the expectation of a lower contribution to the company's volumes from emerging markets and continued weakness in the US and UK -- which experienced a real estate market downturn earlier than Europe and show limited signs of stabilization," says Stefano del Zompo, Moody's lead analyst for Grohe. Moody's also has taken into account the expectation that in an environment of decreasing demand for sanitary products, and hence a likely decrease in sales volumes, the company will have limited pricing flexibility as a result of its hedging policy which will likely make any attempt to gain market share more challenging, notwithstanding the company's approach to stimulate demand through innovation and quality rather than price reductions. The rating action also reflects Grohe's limited financial flexibility, with leverage likely to increase in 2009 to levels incompatible with a B2 rating. Finally, the rating action takes into account the possible impact on the company's liquidity position from the possible payment of the up to 10% of total sales fine from the EU for anti-competitive behavior, the cash outflow related to restructuring, the company's reduced profitability and the likely impact on the company's working capital from more challenging market conditions. "The rating review will focus on the company's ability to sustain margins while maintaining volume levels at least in line with 2008, its medium-term prospects for cash flow generation in light of a likely deterioration in its working capital position and ongoing cash restructuring costs, and the evolution of the company's liquidity position as a result of the timing of the payment of the fine expected to be imposed by the EU," says Mr. del Zompo. "Moody's recognizes the improvement in the company's cost structure achieved through the implementation of Grohe's restructuring plan, as well as the high recognition of Grohe's brands, the focus of its sales force and the effectiveness of its internal control systems," comments Mr. del Zompo. "However, maintaining sales volumes, margins and working capital at current levels to generate sufficient cash flow to finance its operations is deemed extremely challenging." These ratings are affected by the rating action: -- B2 CFR -- Ba2 senior secured debt rating on the EUR150 million revolving credit facility -- B2 senior secured debt rating on the EUR800 million floating- rate notes -- B3 senior unsecured debt rating on the EUR335 million subordinated notes The previous rating action on the company was implemented on June 10, 2008, when Moody's changed the outlook on Grohe's ratings to stable from negative. Grohe Holding GmbH is one of the leading single-brand manufacturers and suppliers of sanitary fittings in the world, offering a broad range of products for handling water in bathrooms and kitchens. In the first nine months of 2008, the company reported revenues in excess of EUR772 million (2007: EUR764 million) and normalized EBITDA (before refinancing fees, restructuring charges and exceptional items) of around EUR161 million (2007: EUR150 million). KEY PLASTICS: Court OKs Payment of Claims, Other 1st Day Motions ---------------------------------------------------------------- Key Plastics L.L.C. has received a variety of first day orders from the U.S. Bankruptcy Court for the District of Delaware that will allow it to continue managing its operations in the ordinary course. It received court orders authorizing the company to pay certain prepetition claims of unsecured creditors in the ordinary course of business. In addition, the company received authorization to utilize its existing cash management system. As a result, all obligations owed to trade creditors, suppliers, customers and employees in the ordinary course of business will be unaffected by the restructuring. Moreover, the company will also provide timely payments to providers of goods and services delivered post-petition. Ralph Ralston, President and Chief Operating Officer of the company's North American operations, stated, "We are pleased to have received approval of all of the requested first day orders. We are on schedule and hope to move through our consensual restructuring process quickly. We hope to have our prepackaged plan approved by the end of January, 2009." Headquartered in Northville, Michigan, Key Plastics LLC -- http://www.keyplastics.com/-- supplies plastic components to the automotive industry. The company has 24 manufacturing facilities located in the United States, Canada, Mexico, Germany, Portugal, Spain, the Czech Republic, France, Slovakia, Italy and China. On March 23, 2000, Key Plastics L.L.C. and certain of its domestic affiliates filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Eastern District of Michigan, Southern Division. The case number is 00-44478-R. Sandra Mayerson, Esq., at Holland & Knight ((212) 513-3200) in NYC is attorney to the debtor. Automotive News said David Resnick of Peter J. Solomon Co. was working as the company's financial advisor immediately prior to the filing. Key Plastics LLC sold substantially all of its North American and European assets to Carlyle Management Group. As reported by the Troubled Company Reporter on December 13, 2000, financial consultants pegged consideration for the transaction in the range of US$185 million to US$195 million, which includes a combination of cash, notes, equity and assumption of certain debts. In addition, CMG also assumed payables that Key has incurred in the ordinary course during chapter 11 which are outstanding on the closing date. The TCR reported on April 3, 2001, that the Court confirmed Key Plastics' plan of reorganization, allowing the Debtors to close the CMG deal and emerge from Chapter 11 by the end of that month. On April 26, 2001, Carlyle Management Group finalized and closed its acquisition of Key Plastics. On December 15, 2008, Key Plastics LLC made its second trip to the bankruptcy court together with affiliate Key Plastics Finance Corp. (Bankr. D. Del. Lead Case No. 08-13326). Mark D. Collins, Esq., at Richards Layton & Finger PA, in Wilmington, Delaware ((302) 651-7700), serves as bankruptcy counsel. When they filed for bankruptcy, the Debtors estimated both assets and debts to be between US$100 million and US$500 million. KLOECKNER & CO: French Unit Fined EUR169 Mln Over Price-Fixing -------------------------------------------------------------- The French anti-trust authority (DGCCRF) in a press statement on Tuesday, December 16, 2008, said that it has imposed fines totaling almost EUR600 million on KDI SAS (a subsidiary of Kloeckner & Co SE), members of the Arcelor group, Descours et Cabaud, Morel and other steel distributors in France. The companies were accused of taking part in anti-competitive price- fixings from 1999 to 2004. The company and its legal advisers maintain that the fine of EUR169 million imposed on KDI SAS is unjustifiably high. Contrary to its previous practice, the French anti-trust authority obviously used global sales of Kloeckner & Co as the basis for the fine's calculation, even though the violations were committed exclusively by the French subsidiary, KDI SAS, and only affected the French market. For this reason, KDI SAS will appeal the fine with the aim of significantly reducing the amount and of obtaining a suspension of payment until a final judgment has been rendered. The fine will negatively impact the 2008 group results of Kloeckner & Co SE by a total of EUR79 million. Reserves had been made in the amount of EUR20 million. In addition, today�s Kloeckner & Co SE (the former acquisition vehicle of private equity investors Lindsay Goldberg & Bessemer) possesses a compensation claim totaling EUR70 million towards the previous owners of the Kloeckner & Co group resulting from the sale of the group in 2005. About Kloeckner & Co Kloeckner & Co -- http://www.kloeckner.de/-- is the largest producer-independent distributor of steel and metal products in the European and North American markets combined. The core business of the Kloeckner & Co Group is the storage and distribution of steel and non-ferrous metals. About 210,000 active customers are supplied through more than 260 distribution locations in 15 countries in Europe and North America. During the financial year 2007, the Company achieved sales of approximately EUR6.3 billion with more than 10,000 employees. KLOECKNER & CO: EUR169 Mil. Fine Won't Affect S&P's 'BB' Rating --------------------------------------------------------------- Standard & Poor's Ratings Services said that its rating and outlook on Germany-based steel distributor Kloeckner & Co. S.E. (Kloeckner; BB/Stable/--) are not immediately affected by the imposition of a fine of EUR169 million by the French antitrust authority. The fine relates to alleged anticompetitive behavior in a certain French subsidiary of the group during 1999-2004, prior to its acquisition by Kloeckner in 2005. Kloeckner's fine of EUR169 million is part of a total EUR575 million fine levied on European steel distributors. Kloeckner has stated that it will appeal against the fine, and that it expects the amount to be paid will be partly mitigated by a compensation claim of EUR70 million from the former owners of the Kloeckner subsidiary involved. S&P did not factor this development into S&P's last rating action on Dec. 11, 2008, when S&P revised the outlook to stable from positive. Although the payment can be met from available liquidity, this adds a further negative factor to Kloeckner's profitability and cash flow, at a time of sharply weaker market conditions, and so S&P will continue to monitor the situation closely. MARSCHNER DRUCK GMBH: Claims Registration Period Ends Feb. 6 ------------------------------------------------------------ Creditors of Marschner Druck GmbH have until Feb. 6, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on March 2, 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: Burckhardt Reimer Domstrasse 15 20095 Hamburg Germany The District Court opened bankruptcy proceedings against the company on Dec. 9, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Marschner Druck GmbH Neuer Hoeltigbaum 11 22143 Hamburg Germany Attn: Wolfgang Bahls and Dieter Marschner, Managers MOBEWA GMBH: Claims Registration Period Ends January 30 ------------------------------------------------------- Creditors of MOBEWA GmbH have until Jan. 30, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on March 4, 2009, at which time the insolvency manager will present his 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. Harald Hess Leipziger Strasse 71 99085 Erfurt Germany The District Court opened bankruptcy proceedings against the company on Dec. 10, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: MOBEWA GmbH Attn: Martin Holzhause, Manager Boyneburgufer 5 99089 Erfurt Germany PHOTOTRONIC INC: Posts US$210 Million Net Loss for Fiscal 2008 ------------------------------------------------------------ Photronics Inc. reported US$210.8 million in net loss, or US$5.06 per share, for fiscal 2008 compared to US$24.5 million in net income, or US$0.56 per diluted share, in the prior fiscal year. The company said that the net loss for fiscal 2008 includes primarily goodwill and long-lived assets impairment charges of US$199.5 million net of tax, or US$4.79 per diluted share. On a non-GAAP basis, excluding the effect of the above-mentioned charges, the company's net loss for fiscal 2008 was US$11.2 million, or US$0.27 per share. Net income for fiscal 2007 included a net benefit of US$7.9 million, or US$0.16 per share, relating to the resolution and settlement of U.S. and foreign tax liabilities associated with uncertain tax positions in prior years. The company also reported sales for the quarter were US$103.3 million, up 1.7% from US$101.6 million in the fourth quarter of fiscal 2007. Semiconductor photomasks accounted for US$77.5 million, or 75.0% of revenues during the fourth quarter of fiscal 2008, while sales of flat panel display (FPD) photomasks accounted for US$25.8 million, or 25.0%, of revenues. Net income for the fourth quarter of fiscal 2008 amounted to US$0.2 million, or US$0.01 per diluted share, compared to net income in the fourth quarter of fiscal 2007 of US$0.4 million, or US$0.01 per diluted share. According to the company, sales for the 2008 fiscal year were US$422.5 million, up slightly from the US$421.5 million reported in fiscal 2007. Semiconductor photomasks accounted for US$314.9 million, or 74.5% of revenues during fiscal 2008, while sales of FPD photomasks accounted for US$107.6 million, or 25.5%. Year-over-year, semiconductor photomask revenues decreased 7.2%, while FPD photomask revenues increased 31.1%. Constantine S. Macricostas, Photronics' chairman and interim chief executive officer commented, "Our financial results for the fourth quarter reflect solid execution in the face of a difficult market environment. I was pleased that our strict cost control measures allowed Photronics to be profitable for the fourth quarter. For the full 2008 fiscal year, our FPD business performed well, offsetting softness in the integrated circuit mask market. Now that our credit facility is in place, our goal is to return to profitability on an annual basis and to strengthen our balance sheet. We remain committed to executing our cost reduction and growth strategy." A full-text copy of the company's condensed consolidated statements of operations is available for free at: http://ResearchArchives.com/t/s?3681 About Photronics Inc. Headquartered in Brookfield, Connecticut, Photronics Inc. -- http://www.photronics.com/-- is a manufacturer of photomasks, which are high precision quartz plates that contain microscopic images of electronic circuits. A key element in the manufacture of semiconductors and flat panel displays, photomasks are used to transfer circuit patterns onto semiconductor wafers and flat panel substrates during the fabrication of integrated circuits, a variety of flat panel displays and, to a lesser extent, other types of electrical and optical components. They are produced in accordance with product designs provided by customers at strategically located manufacturing facilities in Asia, Europe, and North America. In Europe, the company maintains operations in Dresden, Germany and Manchester, U.K. * * * According to the Troubled Company Reporter on Nov. 10, 2008, Standard & Poor's Ratings Services lowered its corporate credit on Brookfield, Conn.-based Photronics Inc. (PLAB) to 'B-' from 'BB-' and placed the ratings on CreditWatch with developing implications. RAPEOIL BIOKRAFT: Claims Registration Period Ends Jan. 28 --------------------------------------------------------- Creditors of Rapeoil Biokraft Vertriebs GmbH have until Jan. 28, 2009, 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 Feb. 25, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Gifhorn Hall 118 Am Schlossgarten 4 38518 Gifhorn 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: Friedemann U. Schade Seelhorststrasse 64 30175 Hannover Germany Tel: 0511/515122-0 Fax: 0511/515122-19 Website: www.kuebler-gbr.de The District Court opened bankruptcy proceedings against the company on Dec. 9, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Rapeoil Biokraft Vertriebs GmbH Attn: Graue Riethe 3 29378 Wittingen Germany SCHENCK-AUTOMATEN GMBH: Claims Registration Period Ends Jan. 22 --------------------------------------------------------------- Creditors of Schenck-Automaten GmbH have until Jan. 22, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Feb. 19, 2009, at which time the insolvency manager will present her first report. The meeting of creditors will be held at: The District Court of Neumuenster Meeting Hall B.126 Law Courts Boostedter Strasse 26 Neumuenster 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: Kirstin Kruhl Strassenbahnring 3 20251 Hamburg Germany The District Court opened bankruptcy proceedings against the company on Dec. 10, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Schenck-Automaten GmbH Holstenstrasse 16 24582 Bordesholm Germany Attn: Herrn Peter Meinke, Manager An der Alten Schule 17 24235 Stein Germany ============= I R E L A N D ============= ATHENEE CDO: Moody's Junks Ratings on Two Classes of Notes ---------------------------------------------------------- Moody's Investors Service has downgraded and left on review for further possible downgrade its ratings of two classes of notes issued by Athenee CDO Plc. The transaction is a managed synthetic CDO referencing, among other assets US and European corporate names. The banking and Insurance sectors constitute approximately 40% of the underlying pool. According to Moody's, the rating actions are the result of deterioration in the credit quality of the transaction's reference portfolio, which includes but is not limited to exposure to GMAC LLC, which was downgraded by Moody's to C on 20 November 2008. The transaction has a significant exposure to corporate names which continue to deteriorate in the current economic environment. This will weigh on the ratings of both transactions. The rating actions are: Athenee CDO Plc: (1) The Series 2006-5 EUR20,000,000 Tranche A2 Secured Step Up Floating Rate Notes due 2013 -- Current Rating: Caa1 -- Prior Rating: B1, on review for possible downgrade -- Prior Rating Action Date: 28 November 2008 (2) The Series 2006-6 EUR10,000,000 Tranche A2 Secured Floating Rate Notes due 2013 -- Current Rating: Caa1 -- Prior Rating: B1, on review for possible downgrade -- Prior Rating Action Date: 28 November 2008 ========= I T A L Y ========= LUSITANO MORTGAGES: Moody's Cuts Rating on Class D Notes to B3 -------------------------------------------------------------- Moody's Investors Service has taken these rating actions on the notes issued by Lusitano Mortgages No. 5 plc: -- Class A Mortgage-Backed Floating-Rate Notes due 2059, Confirmed at Aaa; previously on 31 July 2008 placed under review for possible downgrade, -- Class B Mortgage-Backed Floating-Rate Notes due 2059, Confirmed at A2; previously on 31 July 2008 downgraded to A2 from Aa2 and placed under review for possible downgrade, -- Class C Mortgage-Backed Floating-Rate Notes due 2059, Confirmed at Baa2; previously on 31 July 2008 downgraded from A1 and placed under review for possible downgrade, and -- Class D Mortgage-Backed Floating-Rate Notes due 2059, Downgraded to B3 from B1; previously on 31 July 2008 downgraded to B1 from Baa2 and placed under review for possible downgrade. -- Last rating action date: 31 July 2008. All ratings of the notes have been under review for possible downgrade since July 31, 2008, when Moody's took a rating action on the notes due to worse-than-expected collateral performance. On September 29, Moody's announced that it had concluded the review of the hedge arrangements for Lusitano 5 and had determined that there were, as per Moody's current understanding, no incremental risks stemming from these arrangements that could translate into increased losses for noteholders. However, the review for weaker-than-expected performance was still continuing. The rating action concludes Moody's review of the transaction from a performance point of view. The action takes into account the increased portfolio loss expectations resulting from the relatively high delinquency and default levels shown in the collateral performance. 25 months after issuance, 90+ day delinquencies are at 3.43% of the current portfolio balance, while defaults stand at 0.99% of the original portfolio balance with limited recovery to date. In addition, the notes are slightly under-collateralized due to the way the written-off loan provisioning mechanism works in the structure. Indeed, loans are provisioned for during the course of three consecutive years starting from 12 months after a loan first defaults. Moody's has assessed updated loan-by-loan information of the outstanding portfolio to determine the increase in credit support needed to address the current portfolio performance and to assess the volatility of future losses. Taking into account the current amount of cumulative defaults and completing a delinquency/default roll-rate and severity analysis for the non-defaulted portion of the portfolio, Moody's has adjusted its loss expectations for this portfolio to a range of 1.6%-2% of the original pool balance. Lusitano 5 is Banco Espirito Santo's fifth RMBS transaction. It closed in September 2006. The products securitized are first-lien mortgage loans granted to individuals, all of whom are using these loans to acquire, construct or refurbish residential properties in Portugal. The WALTV at closing was 72.36% and currently it is 70.25%. The current pool factor is 80.32%. Moody's ratings address the expected loss posed to investors by the legal final maturity of the notes. Moody's ratings address only the credit risks associated with the transaction. In Moody's opinion, the structure allows for timely payment of interest and ultimate payment of principal with respect to the Notes by the legal final maturity. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors. Moody's will continue to monitor the performance of this transaction closely. =================== K A Z A K H S T A N =================== AINA-2007 LLP: Proof of Claim Deadline Slated for Feb. 3 -------------------------------------------------------- The Specialized Inter-Regional Economic Court of Atyrau has declared LLP Aina-2007 insolvent. Creditors have until Feb. 3, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Atyrau 3rd. Floor Abai Str. 10a Atyrau Kazakhstan Tel: 8 (71222) 32-90-02 ASIA CART: Creditors Must File Claims by Feb. 3 ----------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Asia Cart insolvent. Creditors have until Feb. 3, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Aiteke bi Str. 50-32 050000 Almaty Kazakhstan Tel: 8 777 223 62-01 BOTASAN LLP: Claims Filing Period Ends Feb. 4 --------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Botasan insolvent on June 20, 2008. Creditors have until Feb. 4, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Aktube Altynsarin Str. 31 Aktobe Aktube Kazakhstan Tel: 8 (7132) 21-30-32 KAMAZ-DIESEL LLP: Creditors' Claims Due on Feb. 4 ------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Kostanai Trade House Kamaz-Diesel insolvent. Creditors have until Feb. 4, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Kostanai Gogol Str. 177a Kostanai Kazakhstan KAZAKHGOLD GROUP: Fitch Puts B Issuer Default Rating on WatchNeg. ----------------------------------------------------------------- Fitch Ratings has placed KazakhGold Group Limited's Long-term Issuer Default Rating and senior unsecured rating, both rated 'B', on Rating Watch Negative. This follows KazakhGold's announcement on 26 September 2008 that it had received an approach from Polyus Gold in relation to a possible partial offer for 50.1% of the company's issued, and to be issued, share capital, as well as an announcement on 14 November 2008 that the government of Kazakhstan had given its consent to the possible partial offer and decided not to exercise its pre-emption right to acquire shares in the issuer. While there can be no certainty that Polyus Gold's partial offer for the issued share capital of KazakhGold will be forthcoming, Fitch understand that if this were to happen, the transaction may represent a change of control event under KazakhGold's US$200 million bond documentation and could trigger the right of bondholders to require KazakhGold to repurchase all or any part of its issued bonds. Given KazakhGold's limited cash reserves (US$68m at end H108), the RWN reflects Fitch's concern that this possible series of events could have on the company's liquidity, and its ability to redeem the US$200 million bonds. In placing KazakhGold on RWN, Fitch has balanced the positive effects of the possible share acquisition against the uncertainties surrounding the possible final term and conditions of a transaction, and the resulting effect on bondholders. Fitch expects to resolve the RWN following disclosure of the possible final terms and conditions of an offer, and following a management meeting to discuss the issuer's strategy going forward. Fitch notes that Polyus Gold's much larger business and stronger balance sheet may, potentially, lead to an enhanced credit profile for KazakhGold depending on the operational and financial support that the former might provide. The controlling Assaubayev family reportedly plans to sell its entire stake of approximately 41% of the outstanding shares of KazakhGold and Polyus Gold and does not seem to be keen to own more than 50.1% of the company. A deal could mark an opportunity for Polyus Gold to access Kazakhstan's substantial mineral wealth with possible further acquisitions. KOBDA LLP: Claims Registration Ends Feb. 4 ------------------------------------------ The Specialized Inter-Regional Economic Court of Aktube has declared LLP Kobda insolvent on June 12, 2008. Creditors have until Feb. 4, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Aktube Altynsarin Str. 31 Aktobe Aktube Kazakhstan Tel: 8 (7132) 21-30-32 NEWSPAPER CENTER: Proof of Claim Deadline Slated for Feb. 3 ----------------------------------------------------------- The Specialized Inter-Regional Economic Court of Astana has declared LLP Editorial Board of Newspaper Center insolvent. Creditors have until Feb. 3, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Astana Respublika ave. 1-40 Astana Kazakhstan Tel: 8 (7172) 21-72-84 SARAPSHY ATYRAU: Creditors Must File Claims by Feb. 3 ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Atyrau has declared LLP Sarapshy Atyrau insolvent. Creditors have until Feb. 3, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Atyrau 3rd. Floor Abai Str. 10a Atyrau Kazakhstan Tel: 8 (71222) 32-90-02 SKIBUS LLP: Claims Filing Period Ends Feb. 4 -------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda has declared LLP Skibus insolvent. Creditors have until Feb. 4, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Karaganda Jambyl Str. 9 Karaganda Kazakhstan TEMIR MERDIGER: Creditors' Claims Due on Feb. 4 ----------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Temir Merdiger insolvent. Creditors have until Feb. 4, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Kostanai Baitursynov Str. 70 Kostanai Kazakhstan =================== K Y R G Y Z S T A N =================== ITIG RISK: Creditors Must File Claims by February 3 --------------------------------------------------- LLC Itig Risk Services has declared insolvency. Creditors have until Feb. 3, 2009, to submit written proofs of claim to: Ibraimov Str. 33a Bishkek Kyrgystan GALACTICA LLC: Creditors Must File Claims by January 3 ------------------------------------------------------ LLC Manufacturing Commercial Firm Galactica has declared insolvency. Creditors have until Jan. 3, 2009, to submit proofs of claim. The company can be reached at: (+996 312) 69-87-86 ===================== N E T H E R L A N D S ===================== JAZZ CDO: Fitch Downgrades Class C Notes to 'B' ----------------------------------------------- Fitch Ratings has downgraded four classes of Jazz CDO I B.V. notes due 2011, affirmed one class and assigned rating outlooks. -- Class A notes (ISIN XS0143237088): affirmed at 'AAA'; assigned Outlook Stable -- Class B notes (ISIN XS0143240033): downgraded to 'BBB-' (BBB minus) from 'AAA'; assigned Outlook Negative -- Class C-1 notes (ISIN XS0143240546): downgraded to 'B' from 'A'; assigned Outlook Negative -- Class C-2 notes (ISIN XS0143900065): downgraded to 'B' from 'A'; assigned Outlook Negative -- Class D-1 notes (ISIN XS0143241197): downgraded to 'CCC' from 'BBB' The downgrades reflect the default of the largest obligor in the portfolio and portfolio deterioration since the last rating actions in August 2008. The portfolio has experienced the default of Lehman Brothers Inc (2% exposure) and 6.5% of the current portfolio is treated as rated 'CCC+' or below in the analysis which includes notching for Ratings Watch Negative and Outlook Negative names of 1 notch. On the same basis the 'CCC+' and below bucket in August 2008 was 0.6%. In addition a further default occurred in December on Tribune Co. (0.5% exposure). In the analysis the current credit enhancement levels for the Class B, C- 1, C-2 and D notes are not sufficient to justify their current ratings. The magnitude of the downgrades reflects the highly leveraged nature of the structure. Unexpected loss stemming from extremely low recovery prospects on defaulted assets have led to significant changes in required credit support for the current ratings of the notes. Whilst there is a high level of excess spread currently in the deal, which can be used to de-leverage the transaction upon failure of coverage tests, defaults occurring at the end of the transaction's life would have limited scope to benefit from this mechanism. As at the 31 October trustee report, the class D overcollateralization test is currently failing with a level of 101.49% against a minimum test trigger of 101.82%. For the Class A notes, the current credit enhancement level is deemed sufficient to justify the current rating. In March 2002, Jazz CDO I B.V., a special purpose vehicle incorporated with limited liability under the laws of the Netherlands, entered into a EUR1,235 million super senior swap and issued EUR270 million of various Classes of notes and invested the proceeds in a portfolio of investment-grade cash and synthetic assets. =============== P O R T U G A L =============== BPN SGPS: Moody's Keeps 'Caa1' Issuer Rating & Puts Neg. Outlook ---------------------------------------------------------------- Moody's Investors Service has confirmed the Caa1 issuer rating of BPN SGPS, SA and assigned a negative outlook. The issuer rating will be withdrawn for business reasons. The confirmation of the rating at Caa1 reflects the fact that BPN SGPS has no debt obligations but will suffer a significant reduction in capital once it recognizes the loss of its former main asset -- Banco Portugues de Negocios, S.A. (BPN, rated Baa3/Prime-3 -- on review with direction uncertain. Its E+ bank financial strength rating (BFSR) carries a negative outlook). The last rating action was on November 21, 2008, when Moody's downgraded the issuer rating of BPN SGPS to Caa1 from Ba1 and maintained it on review for possible further downgrade, following the nationalization of BPN, which was the entity's main asset. Issuer: BPN - SGPS, SA Outlook Actions: -- Outlook, Changed to Negative From Rating Under Review Confirmations: -- Issuer Rating, Confirmed at Caa1 =========== R U S S I A =========== ALROSA CO: Gets RUR44.3 Bln Refinancing Loan from VTB ----------------------------------------------------- VTB has provided a RUR44.3 billion (US$1.6 billion) loan to Alrosa Co. Ltd. to refinance its short-term foreign and domestic debts, RIA Novosti reports citing the bank. The report relates that VTB said the loan has a term of 600 days. Alrosa, the report recounts, earlier planned to pay off its debt by floating Eurobonds in November, but was forced to postpone the placement amid the ongoing financial crisis. About Alrosa ALROSA Co. Ltd. -- http://eng.alrosa.ru/eng/-- is Russia's largest diamond company engaged in the exploration, mining, manufacture and sales of diamonds and one of the world's major rough diamond producers. ALROSA produces about 20% of the world's rough diamond output and accounts for almost 100% of all rough diamonds produced in Russia. * * * As reported in the TCR-Europe on Nov. 28, 2008, Moody's Investors Service affirmed the Ba2 corporate family ratings of ALROSA Company Ltd and Ba2 senior unsecured US$500 million 2014 notes raised by the group at ALROSA Finance SA and guaranteed by ALROSA Company Ltd. The outlook is stable. While Moody's affirmed the ratings, it has also revised the inputs that support the Ba2 corporate family ratings. ASTRA-LES LLC: Creditors Must File Claims by January 12 ------------------------------------------------------ Creditors of LLC Astra-Les (TIN 4345049903) (Forestry) have until Jan. 12, 2009, to submit proofs of claims to: I. Shatunov Insolvency Manager Russia The Arbitration Court of Kirovskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?28�6130/2008�149/24. The Debtor can be reached at: LLC Astra-Les Lenina Str. 127 Kirov Russia AVENUE OSTEUROPA: Moody's Junks Corporate Family Rating ------------------------------------------------------- Moody's Investors Service has downgraded to Caa2 the B3 corporate family rating and probability of default rating of Avenue Osteuropa GmbH the parent company of the Avenue Group, which is based in Moscow, Russia. At the same time, Moody's Interfax Rating Agency, which is majority owned by Moody's, downgraded to B2.ru from Baa2.ru the national scale credit rating of Avenue. The outlook is negative. This concludes the rating review for possible downgrade that was initiated on October 16, 2008. At the same time, the agency withdraws the (P)B1.ru provisional national scale debt rating of senior unsecured notes to be issued by Avenue Finance LLC. The rating has been withdrawn because the company confirmed to Moody's that it has abandoned its planned launch due to prevailing adverse market conditions. The one-notch downgrade primarily reflects the company's exposure to liquidity and funding risks, given the relatively short maturity profile of its debt; about three-quarters of its borrowings are repayable within the next twelve months. Moody's noted that the ability and willingness of local banks in Russia to provide local companies with sufficient funds to finance growth and day to day business has been reduced. This could negatively effect Avenue's liquidity position and, in Moody�s opinion, increases the likelihood of default. In addition, Avenue's cash flow is expected to be put under stress in the coming year as the company has postponed some of its real estate development projects. Moreover, the construction management and plant hire businesses, which historically account for c. 60% of revenues, are facing diminished demand combined with increased working capital as receivables take longer to collect and inventory levels grow. According to management accounts, funds from operations remained adequate and positive through Q3 2008, but free cash flow was negative and the funding requirement was filled by increased short term borrowings, thus adding further pressure on the company's near-term refinancing requirements. The outlook is negative due to the agency's expectation that the challenging economic conditions should continue to pressure cash flows and profits for both the construction and real estate development industries. Moreover, the lack of liquidity in the credit markets should continue generally to make refinancing more difficult. Avenue's Caa2 rating is supported by the company's well- established, 14-year track record; first as a contractor and more recently as a real estate investor and developer. The company's operating income is diversified and it benefits from positive funds from operations and moderate leverage. The land bank is of more modest proportion than its peers with approximately 4 to 5 years supply for new development projects and thus reduces the potential pricing risk for this key development input. The rating is constrained by (i) the refinancing risk relating to its relatively short debt maturity profile; (ii) Avenue's relatively weak financial strength metrics compared to its global peers; (iii) the downturn in the Russian economy and dramatic fall in demand for residential and commercial real estate; (iv) the uncertainties inherent in the current operating environment in the Russian real estate industry, such as unpredictable shifts in licensing and a legal framework that lacks transparency. Moody's last rating action was taken on October 16, 2008 when the agency placed the ratings of Avenue Osteuropa under review for possible downgrade. Avenue Group is a contractor for large-scale complex buildings as well as a residential and commercial real estate developer and investor in Moscow city center and its regions. The company's unaudited accounts reported total revenues of approximately RUR3.7 billion and total assets of RUR20.4 billion as at December 31, 2007. INDUSTRIAL TECHNOLOGIES: Creditors Must File Claims by Jan. 12 -------------------------------------------------------------- Creditors of LLC Industrial Technologies and Machinery have until Jan. 12, 2009, to submit proofs of claims to: S. Kiselev Insolvency Manager Post User Box 333 Post Office 100 170100 Tver Russia The Arbitration Court of Tverskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?66�7945/2008. The Debtor can be reached at: LLC Industrial Technologies and Machinery Lenina Str. 1 Kalashnikovo Likhoslavalskiy 17105 Tverskaya Russia KAZAN-INSTRUMENT-SERVIS: Creditors Must File Claims by Jan. 12 -------------------------------------------------------------- Creditors of LLC Kazan-Instrument-Servis (PSRN1031630205530, TIN/ 1660063714, RVC 166001001) have until Jan. 12, 2009, to submit proofs of claims to: S. Sergeyev Insolvency Manager Post User Box 96 420021 Kazan-21 Tatarstan Russia The Arbitration Court of Tatarstan commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?65�21699/2008-SG4�26. The Debtor can be reached at: LLC Kazan-Instrument-Servis Gubkina Str. 31A 40088 Kazan Tatarstan Russia KLIMOVSKIY CANNERY: Creditors Must File Claims by January 12 ----------------------------------------------------------- Creditors of LLC Klimovskiy Cannery Plant have until Jan. 12, 2009, to submit proofs of claims to: M. Slanko Temporary Insolvency Manager Polevaya Str. 6 Pogar 243550 Bryanskaya Russia Tel: 8-(48349)-2-12-48 The Arbitration Court of Bryanskaya commenced bankruptcy supervision procedure. The case is docketed under Case No. ?09� 10386/2008�32. The Debtor can be reached at: LLC Klimovskiy Cannery Plant Klimovo Bryanskaya Russia MM-METAL LLC: Creditors Must File Claims by January 12 ------------------------------------------------------ Creditors of LLC MM-Metal (TIN 6357041469) have until Jan. 12, 2009, to submit proofs of claims to: N. Kalinin Temporary Insolvency Manager Sovetskaya str. 12 607510 Sergach Russia The Arbitration Court of Samarskaya commenced bankruptcy supervision procedure. The case is docketed under Case No. ?55� 15856/2008. The Debtor can be reached at: LLC MM-Metal Lermontova Str. 11 Pokhvistnevo Samarskaya Russia ROOF RUSSIA: Fitch Downgrades Ratings on Three Tranches to Low-B ---------------------------------------------------------------- Fitch Ratings downgraded all tranches issued by ROOF Russia S.A., removed the Rating Watch Negative and assigned a Negative Outlook to all ratings: -- Class A (ISIN XS0298206193): Downgraded to 'BBB-' (BBB minus) from 'A-' (A minus); Outlook Negative -- Class B (ISIN XS0298206946): Downgraded to 'BB+' from 'BBB'; Outlook Negative -- Class C (ISIN XS0298208058): Downgraded to 'BB-' (BB minus) from 'BB'; Outlook Negative -- Class D (ISIN XS0298208991): Downgraded to 'B-' (B minus) from 'B'; Outlook Negative The downgrade resolves the Rating Watch Negative assigned to the ratings on November 13, 2008. It is driven by the lasting pressure on Russia's currency versus the US dollar. In Fitch's view the continued devaluation will have a detrimental effect on the portfolio's performance. Since August 2008 the rouble has lost 15% of its value versus the US dollar. This continuously increases the liability of borrowers under the US$ denominated loans securitized via ROOF Russia S.A. The Central Bank of Russia has in the past heavily intervened to defend a foreign currency regime that links the rouble to a foreign currency basket consisting of US$ and EUR. However, in recent weeks the trading band was broadened in small steps eight times. If further and more severe depreciation is allowed, the pressure on the currency will be directly passed on to the underlying debtors. As such the indirect protection borrowers benefited from previously, continues to fade away. The increasing debt burden of borrowers under the foreign currency loans can trigger two scenarios that are of concern to Fitch. Firstly, the default frequency of debtors will increase due to the household's income falling short of the rising payment obligation. To take this risk into account, Fitch has revisited its default rate assumptions attached to the various ratings levels. Secondly, rising pressure on the borrowers could prompt the authorities to re-denominate US$ debt into local currency. Depending on the conversion rate used and the subsequent exchange rate movements, such intervention could lead to collections falling short of their expected amounts in US$ terms. The transaction has no structural protection against this risk. The transaction is scheduled to remain revolving until May 2010 and the available credit protection for the notes has only changed slightly since closing. As such the credit enhancement structure falls short of supporting Fitch's revised assumptions at their current rating levels. These two aspects drive the rating action. The Outlook on the ratings remains Negative reflecting Fitch's view that the performance of the portfolio is vulnerable to rapid deterioration in the coming months. The transaction is a securitization of auto loan receivables originated by ZAO Raiffeisenbank (rated 'A-'(A minus), Negative Outlook). Its current outstanding balance amounts to US$398 million. ROSSIYA INSURANCE: Fitch Puts B+ Insurer FS Rating on WatchNeg. --------------------------------------------------------------- Fitch Ratings has placed Russia-based Rossiya Insurance Company's 'B+' Insurer Financial Strength and 'A- (minus)(rus)' National IFS rating on Rating Watch Negative. The RWN reflects Rossiya's weakening capital strength as a result of the rapid pace of premium income growth, and Fitch's uncertainty over the successful completion of a proposed RUR1 billion share issue. Russia's Federal Financial Markets Service announced on 9 December that this issue had been suspended. Fitch notes that Rossiya's net written premiums increased 109% in 2007 to RUR8 billion. In Fitch's opinion, this pace of growth is outstripping the company's ability to maintain capital at a level commensurate with the current rating level. Underwriting performance, however, remains very good and the combined ratio was 82.8% in 2007 and 80.9% at 9M08. Fitch expects to resolve the RWN once the FFMS has given permission for the share issue to take place, at which point the ratings may be affirmed at current levels. If, however, the share issue is not achieved, the most likely outcome would be a downgrade of the IFS ratings. SAKH-LES LLC: Court Names Temporary Insolvency Manager ------------------------------------------------------ The Arbitration Court of Sakhalinskaya appointed N. Mikhnev as Temporary Insolvency Manager for LLC Sakh-Les (TIN 6502004521) (Forestry). The case is docketed under Case No. ?59-2993/08-S4. He can be reached at: Office 539 Dzerzhinskogo Str/ 15 Yuzhno-Sakhalinsk 693008 Sakhalinskaya Russia The Debtor can be reached at: LLC Sakh-Les Lesniy pereulok 1 Aleksandrovsk-Sakhalinskiy 694420 Sakhalinskaya Russia STROY-SERVIS LLC: Creditors Must File Claims by February 12 ----------------------------------------------------------- Creditors of LLC Stroy-Servis (TIN 0276079248) (Construction) have until Feb. 12, 2009, to submit proofs of claims to: I.Latypov Insolvency Manager Apt. 36 Rabkorov Str. 2/7 450024 Ufa Bashkortostan Russia The Arbitration Court of Bashkortostan commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?07�19432/07-G-KhRM. The Debtor can be reached at: LLC Stroy-Servis Bulvar Molodezhy 3/306 Ufa Bashkortostan Russia TRANS OIL LLC: Creditors Must File Claims by February 12 ------------------------------------------------------- Creditors of LLC Trans Oil have until Feb. 12, 2009, to submit proofs of claims to: M. Azizov Insolvency Manager Post User Box 670 420032 Kazan Russia The Arbitration Court of Tatarstan commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?65-11684/2008-SG4-35. The Debtor can be reached at: LLC Trans Oil Sh. Usmanova Str. 32A Kazan Tatarstan Russia UDOMLYA LLC: Creditors Must File Claims by February 12 ------------------------------------------------------ Creditors of LLC Udomlya Large Panel Building Construction have until Feb. 12, 2009, to submit proofs of claims to: S. Kiselev Insolvency Manager Post User Box 333 Post Office 100 170100 Tver Russia The Arbitration Court of Tverskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?66�3907/2008. The Debtor can be reached at: LLC Udomlya Avtodorozhny pereulok 2 Udomlya 171842 Tverskaya Russia ZEYA AIRPORT LLC: Creditors Must File Claims by February 12 ----------------------------------------------------------- Creditors of LLC Zeya Airport (TIN 2815005741) have until Feb. 12, 2009, to submit proofs of claims to: V. Lagutin Insolvency Manager Gorkogo Str. 152 Blagoveshchensk 675000 Amurskaya Russia The Arbitration Court of Amurskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ??4-4153/08-10/329B. The Debtor can be reached at: LLC Zeya Airport 676246 Zeya Amurskaya Russia ========= S P A I N ========= AYT CAIXANOVA: Fitch Assigns 'BB-' Rating on EUR26 Mil. Notes ------------------------------------------------------------- Fitch has assigned AyT CAIXANOVA FTPYME I FTA notes totalling EUR200 million due in March 2030 expected ratings: -- EUR70.2 million Series T: 'AAA' Outlook Stable -- EUR73.8 million Series A: 'AAA' Outlook Stable -- EUR30 million Series B: 'A-' (A minus) Outlook Stable -- EUR26 million Series C: 'BB-' (BB minus) Outlook Stable This transaction is a cash flow securitization of a EUR200 million static pool of unsecured loans granted by Caixa de Aforros de Vigo, Ourense e Pontevedra (Caixanovarated 'A'/'F1' Outlook Negative), a Spanish savings bank, to small- and medium-sized Spanish enterprises with the purpose of financing business activity. The ratings address the payment of interest on the notes according to the terms and conditions of the documentation, subject to a deferral trigger for the Class B, and Class C notes, as well as the repayment of principal by legal maturity in March 2030. AyT CAIXANOVA FTPYME I is the first single-seller SME securitisation transaction originated by Caixanova. The issuer is legally represented and managed by Ahorro y Titulizacion SGFT, SA (AyT, or the Sociedad Gestora), a special-purpose management company with limited liability incorporated under the laws of Spain. The expected ratings on the notes are based on the quality of the collateral, the underwriting and servicing of the loans, available credit enhancement, the characteristics and integrity of the transaction's legal and financial structure and the Sociedad Gestora's administrative capabilities, and incorporate Fitch's most up-to-date view of Spanish SME credit risk. As announced in Fitch's Rating Action Commentary published on 6 November 2007, Fitch is in the process of reviewing its rating methodology and model assumptions for all new issue SME CDO ratings. Investors should be aware that Fitch is reassessing its analytic views which could impact existing ratings, including the expected ratings assigned to the securities. GC FTGENCAT: Moody's Assigns 'Ca' Rating on Series D Notes ---------------------------------------------------------- Moody's Investors Service has assigned these definitive ratings to the debt issued by GC FTGENCAT CAIXA SABADELL 2, Fondo de Titulizacion de Activos: -- Aaa to the EUR50.4 million Series AS notes -- Aaa to the EUR77.6 million Series AG notes -- A3 to the EUR48.0 million Series B notes -- Baa3 to the EUR24.0 million Series C notes -- Ca to the EUR38.0 million Series D notes GC FTGENCAT CAIXA SABADELL 2, Fondo de Titulizacion de Activos, a securitisation of small- and medium-sized enterprise loans under the FTGENCAT programme, comes after the concession by the Generalitat de Catalunya of a guarantee for Class AG. According to Moody's, this deal benefits from several credit strengths including these: (1) a strong swap agreement guaranteeing an excess spread of 0.75% over a notional equal to the outstanding amount of Series AS to C; (2) significant percentage of mortgage loans (81%); (3) a 12-month artificial write-off mechanism; and (4) the guarantee of the Generalitat de Catalunya (Aa2), as concerns the Series AG notes. However, Moody's notes that the deal also features credit weaknesses, notably: (1) very concentrated pool in real estate industry (52%), with a significant percentage of real estate developers (22%); (2) high arrears levels shown in the historical information provided, specially significant in the most recent vintages; (3) concentrated pool in terms of borrowers (top ten debtors represent 9.66% of the provisional pool); (4) geographical concentration in Barcelona province (mainly corresponding to Sabadell's area); (5) the originator is unrated by Moody's; this risk has been mitigated through several features, e.g. a commingling reserve of 2.65%, a large reserve fund of 19% providing liquidity to the notes in case of servicer's disruption, and a stressed servicing fee; and (6) the negative impact of the interest deferral trigger on the subordinated series. These increased risks were reflected in the credit enhancement calculation. The provisional pool of underlying assets was, as of November 2008, composed of a portfolio of 1,334 loans and 1,135 borrowers, granted to enterprises located in Catalonia. The loans were originated between 1997 and May 2008, with a weighted average seasoning of 2.5 years and a weighted average remaining life of 16.5 years. Around 81% of the outstanding of the portfolio is secured by a first-lien mortgage guarantee over different types of properties (with a weighted average LTV of 48.35%). Geographically, the pool is fully concentrated in Catalonia, according to the requirement of the FTGENCAT programme. At closing, there will be a maximum of 5% of the pool in arrears up to 30 days. Moody's based the ratings primarily on: (i) an evaluation of the underlying portfolio of loans; (ii) historical performance information and other statistical information; (iii) the swap agreement hedging the interest rate risk; (iv) the credit enhancement provided through the GIC account, the excess spread, the cash reserve and the subordination of the notes; and (v) the legal and structural integrity of the transaction. The ratings address the expected loss posed to investors by the legal final maturity of the notes. In Moody's opinion, the structure allows for timely payment of interest and ultimate payment of principal at par on or before the rated final legal maturity date on Series AS, AG, B and C, and for ultimate payment of interest and principal at par on or before the rated final legal maturity date on Series D. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors. Date of last rating action: Provisional ratings assigned on December 16, 2008. =========== S W E D E N =========== FORD MOTOR: To Hold Talks with UAW for Cost Savings --------------------------------------------------- Ford spokesman Mark Truby said Friday that the company expected to work with the United Automobile Workers union to achieve any savings that G.M. and Chrysler might negotiate, Bill Vlasic at The New York Times reports. "We have a strong relationship with the U.A.W.," Mr. Vlasic quotes Mr. Truby as saying. "We're going to continue to work to completely close the competitive gap with foreign transplants." Ford has shun any federal assistance unlike its peers. According to Mr. Vlasic, Ford runs the risk of falling behind G.M. and Chrysler if those two companies can wrest concessions from the union and Ford cannot. As reported in today's Troubled Company Reporter, the White House announced Friday that the U.S. Treasury Department will extend a US$9.4 billion secured loan to GM and a US$4.0 billion secured loan to Chrysler from available Troubled Asset Relief Program funds. Another US$4.0 billion will be made available to GM if the Congress approves the transfer of US$350 billion to the TARP. The loans, to the extent legally and contractually permissible, will be secured by first-priority liens on all unencumbered assets, and junior liens on all encumbered assets. GM indicated in testimony before the Congress that its unencumbered assets are its trademarks and equity interests in foreign subsidiaries. Chrysler told the Congress all of its assets are fully encumbered; Chrysler's finance affiliates will guarantee US$2.0 billion of Chrysler's borrowings. The New York Times notes that avoiding government bailout is a risk that Ford is willing and able to take: -- Ford has more cash on hand than its larger rival G.M. -- US$18.9 billion at the end of the third quarter, compared with US$16.2 billion for G.M.; and -- Ford has a backstop of a US$10.8 billion line of credit with banks that it negotiated in 2006. "At the time, industry analysts saw Ford's mortgaging of its assets to get the line of credit as a sign of desperation," Mr. Vlasic wrote. "Now it appears to be a smart move that separates Ford from its Detroit rivals, which have been shut out of the tight credit market and forced to borrow from the government." Mr. Vlasic notes that by not taking government loans now, Ford can legitimately portray itself as the healthiest of Detroit's automakers, and could possibly capitalize on that status in the marketplace. According to Mr. Vlasic, one study showed that Ford benefited during October and November from G.M.'s financial plight. The Times also notes that chairman William C. Ford Jr., has said that Ford is now in a position to lead the industry in its transition to more fuel-efficient cars. Mr. Ford said in an interview last month that Ford hoped to be the model for Detroit's recovery and to work closely on strategic initiatives favored by President-elect Barack Obama, the Times says. "Whether it was lucky or planned, the decision to borrow the money has turned out to be a huge positive for Ford," Mr. Vlasic notes John Casesa, principal in the auto consulting firm Casesa Shapiro Group, as saying." On Friday, Ford welcomed action by the Bush Administration to provide emergency funding for GM and Chrysler. "As we told Congress, Ford is in a different position. We do not face a near-term liquidity issue, and we are not seeking short- term financial assistance from the government," Ford President and CEO Alan Mulally said. "But all of us at Ford appreciate the prudent step the Administration has taken to address the near-term liquidity issues of GM and Chrysler. The U.S. auto industry is highly interdependent, and a failure of one of our competitors would have a ripple effect that could jeopardize millions of jobs and further damage the already weakened U.S. economy." Ford has submitted to Congress its comprehensive business plan, which details the company's plan to return to pre-tax Automotive profitability by 2011. In the plan, Ford said the transformation of its North American automotive business will continue to accelerate through aggressive restructuring actions and the introduction of more high-quality, safe and fuel-efficient vehicles -- including a broader range of hybrid-electric vehicles and the introduction of advanced plug-in hybrids and full electric vehicles. Ford is asking for access to a line of credit of up to US$9 billion in bridge financing, but reiterated that it hopes to complete its transformation without accessing a government loan. "For Ford, a line of credit would serve only as a critical backstop or safeguard against worsening conditions, as we drive transformational change in our company," Mr. Mulally said. Ford said it is more committed than ever to deliver more of the safe, affordable, high-quality, fuel-efficient vehicles that consumers want and value. 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-'. ===================== S W I T Z E R L A N D ===================== ALBRECHT LLC: Creditors Must File Proofs of Claim by Dec. 31 ------------------------------------------------------------ Creditors owed money by LLC Albrecht are requested to file their proofs of claim by Dec. 31, 2008, to: JSC Buchex Treuhand Liquidator Guterstrasse 86a 4008 Basel Switzerland The company is currently undergoing liquidation in Basel. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on June 8, 2004. ALPENRESTAURANT WIRZWELI: Deadline to Claims Set January 2 ---------------------------------------------------------- Creditors owed money by LLC Alpenrestaurant Wirzweli are requested to file their proofs of claim by Jan. 2, 2009, to: Barbara Berlinger-Niederberger Liquidator Wiesenbergstrasse 12 6383 Dallenwil Switzerland The company is currently undergoing liquidation in Dallenwil. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Oct. 22, 2008. GENERAL MOTORS: Will Start Talks With UAW in January ---------------------------------------------------- John D. Stoll and Alex P. Kellogg at The Wall Street Journal report that General Motors Corp. would start talks in January with the United Auto Workers union, bondholders, and the Obama administration to try to work out agreements to comply with the terms of the bailout President George W. Bush disclosed last week. GM said that it appreciates the President extending a financial bridge, which will help preserve many jobs and support the continued operation of GM and the many suppliers, dealers, and small businesses across the country that depend on GM. The loan will also allow the company to accelerate the completion of its aggressive restructuring plan for long-term, sustainable success. Today's Troubled Company Reporter relates that Ford Motor Co. spokesman Mark Truby said Friday the company expects to work with the United Automobile Workers union to achieve any savings that G.M. and Chrysler might negotiate. The White House announced Friday that the U.S. Treasury Department will extend a US$9.4 billion secured loan to GM and a US$4.0 billion secured loan to Chrysler from available Troubled Asset Relief Program funds. Another US$4.0 billion will be made available to GM if the Congress approves the transfer of US$350 billion to the TARP. The loans, to the extent legally and contractually permissible, will be secured by first-priority liens on all unencumbered assets, and junior liens on all encumbered assets. GM indicated in testimony before the Congress that its unencumbered assets are its trademarks and equity interests in foreign subsidiaries. Chrysler told the Congress all of its assets are fully encumbered; Chrysler's finance affiliates will guarantee US$2.0 billion of Chrysler's borrowings. According to WSJ, GM Chief Financial Officer Ray Young said on Friday that the company expects to get its first round of loans from the government by Dec. 29. Mr. Young said that the loans would just be in time to fund US$6 billion to US$8 billion in payments due to autoparts makers at the start of January, the report states. Alex P. Kellogg at WSJ states that even with the government bailout, GM and Chrysler LLC is still facing burdensome union costs, long term financial strain, and a short timeline for getting stakeholders to negotiate. Citing KeyBanc Capital Markets senior automotive analyst Brett Hoselton, GM and Chrysler would have some tough talks with the UAW union, and must come away with significant cost cuts quickly to qualify a second round of loans in the first quarter. WSJ says that GM and Chrysler would seek to eliminate the Jobs Bank, a program in which laid-off workers continue to get paid even when their plants close and they no longer report for work. The union will suspend the Jobs Bank, WSJ relates, citing UAW President Ron Gettelfinger. GM's management team, along with advisers that include high- profile bankruptcy attorneys, started to work on contingency plans in the event it would have to file for Chapter 11 bankruptcy protection, WSJ reports. WSJ quoted turnaround firm O'Keefe & Associates Consulting President Pat O'Keefe as saying, "Bankruptcy is a failed negotiation. If they're unable to get a deal on a negotiated basis, they will use bankruptcy to push the parties that can't seem to come to the table." Monica Langley at WSJ relates that Michigan Gov. Jennifer Granholm was advising car company chief executives last month on improving their request for federal aid. The report says that she was privately urging President-elect Barack Obama to help the automakers and order Michigan to buy about 1,600 vehicles from the automakers' fleet cars. USUS$3.29 Billion in Loans From Canadian Gov't The Canadian government and the province of Ontario said that they will provide at least US$3.29 billion in loans to the Canadian units of GM and Chrysler, WSJ states. According to WSJ, Canada and Ontario were promising to provide loans totaling 20% of whatever the U.S. offered. The report quoted Canadian Prime Minister Stephen Harper as saying, "We cannot afford, in the United States or Canada, the catastrophic short-term collapse of the Big Three auto makers. The U.S. has signaled that they are not going to allow these companies to fail, and we will do our share of the North American package to see that this doesn't happen either." About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM Europe is based in Zurich, Switzerland, while General Motors Latin America, Africa and Middle East is headquartered in Miramar, Florida. As reported in the Troubled Company Reporter on Nov. 10, 2008, General Motors Corporation's balance sheet at Sept. 30, 2008, showed total assets of US$110.425 billion, total liabilities of US$170.3 billion, resulting in a stockholders' deficit of US$59.9 billion. * * * As reported in the Troubled Company Reporter on Nov. 11, 2008, Standard & Poor's Ratings Services lowered its ratings, including the corporate credit rating, on General Motors Corp. to 'CCC+' from 'B-' and removed them from CreditWatch, where they had been placed with negative implications on Oct. 9, 2008. S&P said that the outlook is negative. Fitch Ratings, as reported in the Troubled Company Reporter on Nov. 11, 2008, placed the Issuer Default Rating of General Motors on Rating Watch Negative as a result of the company's rapidly diminishing liquidity position. Given the current liquidity level of US$16.2 billion and the pace of negative cash flows, Fitch expects that GM will require direct federal assistance over the next quarter and the forbearance of trade creditors in order to avoid default. With virtually no further access to external capital and little potential for material asset sales, cash holdings are expected to shortly reach minimum required operating levels. Fitch placed these on Rating Watch Negative: -- Senior secured at 'B/RR1'; -- Senior unsecured at 'CCC-/RR5'. As reported in the Troubled Company Reporter on June 24, 2008, DBRS has placed the ratings of General Motors Corp. and General Motors of Canada Limited Under Review with Negative Implications. The rating action reflects the structural deterioration of the company's operations in North America brought on by high oil prices and a slowing U.S. Economy. LANUS LLC: Creditors Have Until December 31 to File Claims ---------------------------------------------------------- Creditors owed money by LLC Lanus are requested to file their proofs of claim by Dec. 31, 2008, to: JSC Grivo Bahnhofstrasse 94 8001 Zurich Switzerland The company is currently undergoing liquidation in Zurich. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Nov. 3, 2008. LOT CLOTHING: Proofs of Claim Filing Deadline is December 31 ------------------------------------------------------------ Creditors owed money by LLC Lot Clothing and Consulting are requested to file their proofs of claim by Dec. 31, 2008, to: Agnes Ackermann Wildhaber and Roger Wildhaber, Liquidators Alemannengasse 69 4058 Basel Switzerland The company is currently undergoing liquidation in Basel. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Nov. 12, 2008. RENDIA LLC: Creditors' Proofs of Claim Due by December 31 --------------------------------------------------------- Creditors owed money by LLC Rendia are requested to file their proofs of claim by Dec. 31, 2008, to: Rolf Christen Fliederweg 18 3292 Busswil bei Buren Switzerland The company is currently undergoing liquidation in Busswil bei Buren. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Oct. 29, 2008. RW SPENGLEREI: December 31 Set as Deadline to File Claims --------------------------------------------------------- Creditors owed money by LLC RW Spenglerei are requested to file their proofs of claim by Dec. 31, 2008, to: Obere Zollgasse 46 3072 Ostermundigen Switzerland The company is currently undergoing liquidation in Ostermundigen. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Nov. 14, 2008. =========== T U R K E Y =========== YASAR HOLDING: Fitch Downgrades Issuer Default Ratings to 'B' ------------------------------------------------------------- Fitch Ratings has downgraded Turkish company Yasar Holding A.S.'s Long-term foreign and local currency Issuer Default ratings to 'B' from 'B+', and its National Long-term rating to 'BBB-(minus)(tur)' from 'A-(minus)(tur)'. The Outlook for Yasar's IDRs and National Long-term rating remains Negative. Fitch has also downgraded financing subsidiary Troy Capital S.A.'s EUR200 million foreign currency long-term unsecured notes to 'B'/'RR4' from 'B+'/'RR4'. These notes benefit from upstream guarantees from seven of Yasar's subsidiaries, including five of its six Istanbul-listed subsidiaries. As such, the notes rank equally with unsecured debt at the group's subsidiaries. The downgrade reflects Yasar's uneven operating performance and Fitch's expectation for a more challenging economic environment in Turkey over the near term. In 9M08, Yasar's revenue growth slowed to 13.7% from 24.3% in 2007, and the operating margin narrowed to 9.1% from 10.1% in the year earlier period, reflecting competitive pressures and the difficulty in passing on higher commodity costs to its customers. Fitch believes it will be difficult to reverse these trends over the next year, though declining commodity costs will provide some relief as 2009 progresses. The Negative Outlook reflects the recent volatility of the New Turkish lira (lira), limited headroom in certain of the company's loan covenants, and medium-term refinancing risk. The ratings continue to recognise Yasar's diverse range of products in food, beverages and paint, strong market shares within particular product categories, and moderate financial leverage. Yasar has sizable debt maturities in 2011 (EUR200 million Troy Capital notes) and 2013 (EUR119 million loan that has been swapped to lira). The group is not investing heavily in its business, and intends to accumulate cash from operations to help repay these loans. However, margin pressures and growth of working capital have kept the company in a free cash flow-negative position. Management may engage in asset sales to raise additional cash, with one potential sale being an interest in its paint business. However, it is likely that the company may have to refinance a portion of the loans. Net debt/EBITDA increased to 3.1x at September 30, 2008 from 3.0x at September 30, 2007, due to a slight decline in EBITDA and an increase in debt levels due in part to the lira depreciation. Excluding the impact of currency movements, leverage should gradually improve as EBITDAR grows and net debt levels are steady to declining. Yasar is an Izmir, Turkey-based holding company engaged in the food and beverage, paint, tissue and services sectors. The company enjoys leading market shares in UHT milk, spreadable cheese, charcuterie and frozen meals as well as industrial coatings and printing inks. ============= U K R A I N E ============= ENERGY-TECH-MACH-K LLC: Creditors Must File Claims by Jan. 2 ------------------------------------------------------------ Creditors of LLC Energy-Tech-Mach-K (EDRPOU 34208048) have until Jan. 2, 2009, to submit proofs of claim to: The Economic Court of Chernovcy O. Kobylianska Str. 14 58000 Chernovcy Ukraine The Arbitration Court of Chernovcy commenced bankruptcy proceedings against the company after finding it insolvent on Nov. 12, 2008. The case is docketed as 9/106/b. The Debtor can be reached at: LLC Energy-Tech-Mach-K Kosovsky Str. 75 Novoselitsa 60300 Chernovcy Ukraine ENTERPRISE MOVIPACK: Creditors Must File Claims by January 2 ------------------------------------------------------------ Creditors of LLC Joint Enterprise Movipack (EDRPOU 23143771) have until Jan. 2, 2009, to submit proofs of claim to: Mr. Arkady Neverov Liquidator Apt. 178 N. Uzhviy Str. 7 04108 Kiev Ukraine Tel: 8(044)462-00-61 The Arbitration Court of Kharkov commenced bankruptcy proceedings against the company after finding it insolvent on Nov. 24, 2008. The case is docketed as B-39/152-05. The Economic Court of Kharkov Derzhprom 8th Entrance Svoboda Square 5 61022 Kharkov Ukraine The Debtor can be reached at: LLC Joint Enterprise Movipack Shatilova Dacha Str. 4 61140 Kharkov Ukraine ESPRIT-VV LLC: Creditors Must File Claims by January 2 ------------------------------------------------------ Creditors of LLC Esprit-VV (EDRPOU 34059570) have until Jan. 2, 2009, to submit proofs of claim to: Mr. Viacheslav Kolbasa Liquidator B. Hmelnitsky Str. 14-a 49000 Dnipropetrovsk Ukraine The Arbitration Court of Dnipropetrovsk commenced bankruptcy proceedings against the company after finding it insolvent on Nov. 27, 2008. The case is docketed as B 29/284-08. The Economic Court of Dnipropetrovsk Kujbishev Str. 1a 49600 Dnipropetrovsk Ukraine The Debtor can be reached at: LLC ESPRIT-VV Pobediteley Str. 9 49000 Dnipropetrovsk Ukraine INTERPIPE LIMITED: Fitch Downgrades Issuer Ratings to 'B-' ---------------------------------------------------------- Ratings has downgraded Ukraine-based pipes and railway wheels producer Interpipe Limited's Long-term Issuer Default Rating to 'B-'(B minus) from 'B' and downgraded Interpipe's senior unsecured rating to 'B-'(B minus)/'RR4' from 'B'/'RR4'. The Negative Outlook on the Long-Term IDR has been removed and both ratings are placed on Rating Watch Negative. Fitch has also placed Interpipe's Short-term IDR of 'B' on RWN. Interpipe announced on December 11 2008 that Millen Financial Limited, a company owned by Interpipe's ultimate shareholders, had offered to purchase US$200 million 8.875% bonds, due 2010, from Interpipe bondholders at between 47% and 55% of par value. Interpipe simultaneously announced that it was seeking to amend covenants contained in the US$200 million bond documentation, including an amendment of the Gross Debt/EBITDA ratio to 4.5x from 3.5x, and to include a US$344 million Export Credit Agency finance facility within the definition of Permitted Indebtedness. The finance facility is for the completion of the construction of an electric arc furnace. The rating downgrades reflect Fitch's view that Interpipe's request to amend the covenants and expand the list of Permitted Indebtedness signals ongoing and increased negative pressure on the issuer's credit profile. Factors contributing to this view include the ongoing uncertainty affecting the metal and mining industry, due to the global economic recession, an associated sharp downturn in steel prices and a decline in demand for the company's core products, pipes and wheels. Based on a downside scenario, whereby market conditions remain weak throughout FY2009 and production volumes decline by 20%-35% year-on-year, Fitch estimates that Interpipe's FY2009 EBITDAR could potentially fall to around US$230-275 million. This could result in its leverage ratio (Gross Debt/EBITDA) exceeding 3.5x at FY2009, which is Interpipe's existing bond covenant. At 18 December 2008, Interpipe had total debt of US$970 million from which US$465 million was secured by the Company's assets. The recovery rating applied to Interpipe's senior unsecured notes of 'RR4 takes into account the split between secured and unsecured debt and indicates Fitch's expectation of more than 30% recovery of the unsecured debt in the event of default. Fitch expects to resolve the RWN following the outcome of the tender offer for Interpipe's bonds and also once the agency has gained comfort that the issuer will be able to pass quarterly testing of all covenants in 2009. Conversely, a failure to amend the covenants and increased negative pressure on Interpipe's credit profile, as a result of a sharper-than-expected deterioration in market conditions, could place additional negative pressure on the company's ratings. Fitch does not view the tender offer for the bonds as a distressed debt exchange, based on the agency's "Distressed Debt Exchange Criteria", as the agency believes there is no possibility of bankruptcy or insolvency in the near term if the tender offer does not take place. The recent covenant testing, based on Q2 2008 financial reporting, indicated a Net Debt/EBITDAR ratio of 1.86x. Fitch estimates a FY2008 Gross Debt/EBITDAR of 2.5-2.7x which is below the bonds covenants of 3.5x. The company's gearing increased from Net Debt to EBITDA of 0.2x as of FY07 to 1.86x in Q3 FY08 due to both a strategic capital expenditure program to construct an electric arc furnace and demands on working capital due to business expansion. Fitch downgraded Interpipe's Long-term IDR to 'B' from 'B+' on 27 November 2008 while also downgrading the company's senior unsecured rating to 'B'/'RR4' from 'B+'/'RR4'. The agency maintained a Negative Outlook on the Long-term IDR and affirmed Interpipe's Short-term IDR at 'B' on the same date. The late November downgrade was caused by Interpipe's exposure to the global economic recession which could result in a future significant deterioration of Interpipe's operating and financial results. KARAT OF XXI: Creditors Must File Claims by January 2 ----------------------------------------------------- Creditors of LLC Karat of XXI Century (EDRPOU 34532228) have until Jan. 2, 2009, to submit proofs of claim to: Mrs. Vitaliya Varakina Liquidator / Insolvency Manager Balochnaya Str. Makieyevka, 3 Donetsk Ukraine The Arbitration Court of Donetsk commenced bankruptcy proceedings against the company after finding it insolvent on Nov. 24, 2008. The case is docketed as 5/159b. The Economic Court of Donetsk Artema Str. 157 83048 Donetsk Ukraine The Debtor can be reached at: LLC Karat of XXI Century Kiev avenue, 20-A 83054 Donetsk Ukraine KOLORIT-M LLC: Creditors Must File Claims by January 2 ------------------------------------------------------ Creditors of LLC Kolorit-M (EDRPOU 34016982) have until Jan. 2, 2009, to submit proofs of claim to: Mr. Vadim Dundukov Liquidator Apt. 49 B. 10 Gagarin Avenue, 176 Kharkov Ukraine The Arbitration Court of Kharkov commenced bankruptcy proceedings against the company after finding it insolvent on 24, 2008. The case is docketed as B-39/164-08. The Economic Court of Kharkov Derzhprom 8th Entrance Svoboda Square 5 61022 Kharkov Ukraine The Debtor can be reached at: LLC Kolorit-M Chebotarskaya Str. 36 61052 Kharkov Ukraine KRONOS-INVEST LLC: Creditors Must File Claims by January 2 ---------------------------------------------------------- Creditors of LLC Kronos-Invest (EDRPOU 30505761) have until Jan. 2, 2009, to submit proofs of claim to: The Economic Court of Zaporozhje Shaumiana Str. 4 69001 Zaporozhje Ukraine The Arbitration Court of Zaporozhje commenced bankruptcy proceedings against the company after finding it insolvent on Nov. 24, 2008. The case is docketed as 16/138/08. The Debtor can be reached at: LLC Kronos-Invest Apt. 229 Pravda Str. 53 69000 Zaporozhje Ukraine OLETRADE LLC: Creditors Must File Claims by January 2 ----------------------------------------------------- Creditors of LLC Oletrade (EDRPOU 31278201) have until Jan. 2, 2009, to submit proofs of claim to: Mr. Nikolay Zanko Liquidator / Insolvency Manager Apt. 409 Heroes of Dniepr Str. 81 18021 Cherkassy Ukraine The Arbitration Court of Cherkassy commenced bankruptcy proceedings against the company after finding it insolvent on July 1, 2008. The case is docketed as 01/3027. The Economic Court of Cherkassy Shevchenko Avenue 307 18005 Cherkassy Ukraine The Debtor can be reached at: LLC Oletrade Paris Commune Str. 65A 18000 Cherkassy Ukraine PARITET LLC: Creditors Must File Claims by January 2 ---------------------------------------------------- Creditors of LLC Insurance Company Paritet (EDRPOU 35557710) have until Jan. 2, 2009, to submit proofs of claim to: LLC Octopus Liquidator P.O.B. 72 03115 Kiev Ukraine The Arbitration Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Nov. 28, 2008. The case is docketed as 44/348-b. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Insurance Company Paritet Pobeda Str. 9 Kiev Ukraine PISCICULTURAL ENTERPRISE: Creditors Must File Claims by Jan. 2 -------------------------------------------------------------- Creditors of OJSC Lugansk Regional Production Agricultural- Piscicultural Enterprise (Edrpou 00476599) have until Jan. 2, 2009, to submit proofs of claim to: Mr. Alexander Roy Temporary Insolvency Manager Sovetskaya Str. 7 Raygorodka Novoaydarsky 93543 Lugansk Ukraine The Arbitration Court of Lugansk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed as 20/78b. The Economic Court of Lugansk Geroiv VVV Square 3a 91000 Lugansk Ukraine The Debtor can be reached at: OJSC Lugansk Regional Production Agricultural-Piscicultural Enterprise Valuyskoye Stanichno-lugansky 93651 Lugansk Ukraine POLYPACK LLC: Creditors Must File Claims by January 2 ----------------------------------------------------- Creditors of LLC Polypack (EDRPOU 25291858) have until Jan. 2, 2009, to submit proofs of claim to: Mr. Oleg Nechayenko Temporary insolvency manager Apt. 54 Gagarin Str. 114 Drabov Cherkassy Ukraine The Arbitration Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Oct. 28, 2008. The case is docketed as 50/392. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Polypack Pobeda avenue, 67 03062 Kiev Ukraine SOYUZ MERIDIAN: Creditors Must File Claims by January 2 ------------------------------------------------------- Creditors of LLC Soyuz Meridian Yvv (EDRPOU 35334767) have until Jan. 2, 2009, to submit proofs of claim to: Mrs. Vitaliya Varakina Liquidator / Insolvency Manager Balochnaya Str. 3 Makieyevka Donetsk Ukraine The Arbitration Court of Donetsk commenced bankruptcy proceedings against the company after finding it insolvent on Nov. 24, 2008. The case is docketed as 5/160b. The Economic Court of Donetsk Artema Str. 157 83048 Donetsk Ukraine The Debtor can be reached at: LLC Soyuz Meridian Yvv Shevchenko boulevard, 31 83017 Donetsk Ukraine TENDER PROCEDURES: Creditors Must File Claims by January 2 ---------------------------------------------------------- Creditors of LLC Tender Procedures Center (EDRPOU 31307661) have until Jan. 2, 2009, to submit proofs of claim to: LLC Octopus Liquidator P.O.B. 72 03115 Kiev Ukraine The Arbitration Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Nov. 28, 2008. The case is docketed as 44/351-b. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Tender Procedures Center Reuters Str. 37 Kiev Ukraine * Fitch Reports Negative Outlook for Ukrainian Energy Sector ------------------------------------------------------------ Fitch Ratings says in a new report that the credit outlook for the Ukrainian energy and utility sector during 2009 is negative of because of a funding crisis in the state-controlled power generation sector, downward pressure on regulated tariffs due to a severe recession, restricted access to bank lending and debt capital markets, and continued turmoil at NJSC Naftogaz of Ukraine ('B'/Rating Watch Negative). The report assesses the impact of a major shortfall in power generation investment, which has not materialized despite rising tariffs. This critical lack of investment is likely to forestall market liberalization and generate erratic electricity sector policy. Fitch expects an economic recession in Ukraine in 2009 to drive down power demand, providing only temporary respite to falling capacity reserve margins. Fitch expects liquidity and refinancing risk to remain high for the Ukrainian energy and utility sector through most of 2009, as foreign banks and markets remain effectively closed to Ukrainian issuers. Any energy companies with foreign currency denominated debt, but largely hryvnia-based earnings, will experience particular difficulty due to a currency crisis affecting the hryvnia that has led to restrictions in the availability of foreign exchange. Naftogaz will continue to face major challenges in 2009, including potentially insufficient state subsidization for its loss-making residential business, higher import prices, accumulating gas payables and restricted access to external financing. However, Fitch continues to view Naftogaz as an important strategic asset for the Ukrainian government (Ukraine rated at 'B+'/Outlook Negative) and factors state support into the company's rating. Ukrainian energy and utility entities rated by Fitch include NJSC Naftogaz of Ukraine and DTEK Holdings Limited ('B+'/Outlook Negative). * Fitch Affirms 'B' Currency Rating of Ukraine's City of Kyiv ------------------------------------------------------------- Fitch Ratings has affirmed Ukraine's City of Kyiv ratings at Long- term foreign and local currency ratings of 'B+' and a Short-term foreign currency rating of 'B'. Fitch also affirmed Kyiv's National Long-term rating of 'AA+(ukr)'. The Outlooks for the Foreign and Local Long-term ratings are Negative and the National Long-term rating Stable. The ratings factor in the risk of economic instability, which negatively impacts the city's public finances. Further negative factors include Kyiv's weak budget process, the city's unstable institutional framework and political uncertainty. The city is also exposed to foreign exchange risk as the city's direct debt is denominated in US dollars. However, the ratings also reflect the city's sound budgetary performance and stable growth of tax revenues buoyed by the strength of the local service-oriented economy. The 2009 city budget was not adopted as of December 1, 2008 as the central government failed to provide economic forecast and the projected amount of transfers. The exposure of the city to foreign exchange risk and some refinancing risk is increasing in light of the devaluation of the Ukraine Hryvna as the majority of the city's debt issuance is US dollar denominated. The risk of refinancing is in part mitigated by the manageable level of indebtedness and smooth profile of the external bonds, which account for 99% of the city's direct debt stock. The city's budgetary performance was sound in 2003-2007 with operating balance averaging 25.9% of operating expenditure (2007: 23.6%) and the average level of the city's capex amounted to 39.4% in 2005- 2007. The economy of the city is dominated by the services sector (comprising 85% of the gross city product in 2006) and driven by high levels of fixed-capital investments, reaching 18.7% of the total capital investments in Ukraine in H108. However the city's ability to record sound budgetary performance and sustain a high level of capital spending in 2009 might be restricted by its actual ability to collect sufficient revenue with deteriorating economic forecast and increasing financial crisis in the country. The City of Kyiv is the capital of Ukraine. It has a population of 2.7 million inhabitants, which makes up about 5.6% of Ukraine's total population. * UKRAINE: Foreign Debt Doubled to US$105 Billion ------------------------------------------------- Ukraine's gross foreign debt almost doubled in the first nine months of 2008, RIA Novosti reports citing a spokesman for the country's National Bank. The report relates that as of October 1, 2008, the country's foreign debt stood at US$105 billion. According to the report, Ukrainian banks contributed most to the foreign debt growth. The report notes their debt trebled to US$42 billion from January through September. Ukraine, the report recounts, was swept in October by a financial crisis caused by the ongoing global credit crunch with its key exporters - the steel and chemical sectors - hit the hardest. =========================== U N I T E D K I N G D O M =========================== ADEPTIAS LTD: Appoints Joint Administrators from Tenon Recovery --------------------------------------------------------------- T. J. Binyon and S. J. Parker of Tenon Recovery were appointed joint administrators of Adeptias Ltd. on Dec. 5, 2008. The company can be reached through Tenon Recovery at: Sherlock House 73 Baker Street London W1U 6RD England ARCTIC WINDOWS: Placed Into Administration; Tenon Appointed ----------------------------------------------------------- Peter McCusker at The Journal reports that Arctic Windows has been placed into administration Tuesday last week. The administration is being handled by Tenon, of Sunderland, the report relates. "We are currently involved in detailed discussions with a number of interested parties," a spokesman for Tenon was quoted by the report as saying. Based in Newcastle, England, Arctic Windows manufacturers, supplies and installs PVC-u windows and doors 42,000 sq ft factory unit. The company has an annual turnover of GBP4.4 million. BERNSTEIN GROUP: Taps PwC as Joint Administrators ------------------------------------------------- David James Kelly, Ian David Green and Michael John Andrew Jervis of PricewaterhouseCoopers LLP were appointed joint administrators of Bernstein Group Holdings Ltd. on Dec. 5, 2008. The company can be reached at: Bernstein Group Holdings Ltd. Silburn House Great Bank Road Westhoughton Lancashire BL5 3XU England BEVAN BUILDERS: Names Joint Administrators from Grant Thornton --------------------------------------------------------------- Andrew Lawrence Hosking and David John Dunckley of Grant Thornton UK LLP were appointed joint administrators of P.G. Bevan Builders Ltd. on Dec. 5, 2008. The company can be reached at: P.G. Bevan Builders Ltd. 98 Walton Street Aylesbury Buckinghamshire HP21 7QP England COOLREC UK: Goes Into Administration; 40 Jobs at Risk ----------------------------------------------------- Coolrec UK Ltd has gone into administration, putting 40 jobs at risk, letsrecycle.com reports. According to the report, strong competition and the sudden decline in metal prices forced Coolrec to end its UK activities. Coolrec, however, notes that the rest of the company remains unaffected, the report adds. The report relates administrator SIA Group is currently looking for a buyer for the Coolrec site at Basildon. Coolrec UK Ltd -- http://www.coolrec.com/-- recycles electrical and electronic appliances, especially refrigerators, televisions and small household appliances. It is owned by Dutch firm the Van Gansewinkel Groep. The Coolrec Group has three factories in the Netherlands, two in Belgium and one in France, and recycles 1.3 million fridges and 1.5 million televisions and monitors annually. The company also supplies production companies with raw materials like steel, aluminium, copper and a range of plastics. DTZ HOLDINGS: Could Go Into Administration if Fund-Raising Fails ---------------------------------------------------------------- Graham Ruddick at the Daily Telegraph reports that DTZ Holdings plc warned it could be forced into administration if its GBP55 million fund-raising fails. In a press statement on Friday, December 19, 2008, DTZ announced that it plans for a share issue to raise up to GBP55 million (approximately GBP52 million net of expenses) through the issue of up to 203,772,569 new shares by way of the firm placing and the placing and open offer at a price of 27.0 pence per new share. According to the report, the capital from the share issue will be used to pay off debts to Royal Bank of Scotland. DTZ, as cited by the report, said it has a "firm commitment" from its largest shareholder, French property group SGP, that it will take up to GBP40 million of the shares, making SGP the majority shareholder in DTZ. DTZ, however, noted that the failure of the share issue, potentially by the objection to the controlling interest of SGP by competition commissions, would mean the company defaults on a loan, the report relates. "The Royal Bank of Scotland would be permitted to.... place the company or other members of the group into administration and initiate insolvency," DTZ was quoted by the report as saying. Paul Idzik, DTZ's new chief executive, meanwhile insisted the company will retain its management independence, despite the fact SGP could own up to 77.8pc, the report discloses. Headquartered in London, United Kingdom, DTZ Holdings plc -- http://www.dtz.com-- is the holding company of a group of companies acting as national and international property advisers and consultants globally, offering integrated property advice and economic consultancy services to clients. ELECTRO-MEC Ltd: Brings in Joint Administrators from Baker Tilly ---------------------------------------------------------------- Michael David Rollings and Andrew Martin Sheridan of Baker Tilly Restructuring and Recovery LLP were appointed joint administrators of Electro-Mec (Reading) Ltd. on Dec. 2, 2008. The company can be reached at: Electro-Mec (Reading) Ltd. 10 Woodfalls Farm Gravelly Ways Laddingford Kent ME18 6DA England EMF-UK 2008-1: Fitch Downgrades 4 Tranches on Lehman Exposure ------------------------------------------------------------- Fitch Ratings has downgraded four tranches of EMF-UK 2008-1 Plc and Mortgage Funding 2008-1 plc. The transactions have exposure to currency swaps previously provided by Lehman Brothers. The rating actions are primarily driven by the recent movements in the foreign currency exchange rates, which, due to the absence of a currency swap in these deals, will limit the issuers' ability to meet interest and principal payments due on the notes. In addition, Lehman Brothers was the liquidity facility provider on the two transactions, which, given the current market conditions, Fitch believes will be difficult to replace. The agency's opinion is that the initially 'AAA' rated notes are exposed to liquidity risk in higher rating scenarios. The rating actions are: EMF-UK 2008-1 Plc -- Class A1 (ISIN XS0352307184) downgraded to 'CCC' from 'AAA'; removed from RWN; assigned Distressed Recovery Rating 'DR1' -- Class A2 (ISIN XS0352307770) downgraded to 'CC' from 'AAA'; removed from RWN; assigned Distressed Recovery Rating 'DR3' -- Class A3 (ISIN XS0352932643) downgraded to 'CC' from 'AAA'; removed from RWN; assigned Distressed Recovery Rating 'DR3' Mortgage Funding 2008-1 plc -- Class A (ISIN XS0350039912) downgraded to 'CCC' from 'AA-' (AA minus); removed from RWN; assigned Distressed Recovery Rating 'DR2' Following the downgrade of Lehman Brothers Holding Inc., on 26 September 2008, the agency placed the two transactions on Rating Watch Negative. As of the December 2008 interest payment date the transactions remain un-hedged, which has led the Issuer to swap GBP proceeds at the current spot rates to make payments due to Euro and US dollar noteholders. The agency believes that the costs of replacing the swaps will be prohibitive and that the exposure will remain unhedged. In its analysis, Fitch applied its currency stresses to assess the impact of the depreciation of the GBP against the Euro and US dollar on the Issuers' ability to meet principal and interest payments on the notes. The assigned ratings reflect Fitch's view of the level of under-collateralization that is likely to occur if exchange rates continue to move in a direction that is not in favor of the Issuer. The different ratings among the initially 'AAA' rated notes reflect the difference in timing of interest and principal receipts that the noteholders of these notes are expected to receive. The agency will continue to monitor the movements of the exchange rates, as well as the Issuer's ability to meet interest and principal payments, which could lead to some volatility in the ratings. In addition the agency has also taken into consideration the absence of other counterparty obligations also previously provided by LBHI or its subsidiaries. In general the affect of the absence of these counterparties is small in comparison to the absence of the currency swaps. The other counterparty exposure includes interest rate caps, fixed/floating and basis rate swaps. Under current market conditions the interest rate caps are not active, and are unlikely to become so, and the absence of a fixed/floating swap is likely to work in the favor of the transactions given the recent reductions in Libor. The lack of a basis rate hedge will affect the transactions as they contain loans linked to the Bank of England Base Rate, yet the note liabilities reference Euribor. The proportion of loans ultimately linked to BBR in the two transactions is 20.01% (EMF-UK 2008-1 Plc) and 8.85% (Mortgage Funding 2008-1 plc). The affect of the absence of a basis rate swap is therefore dependent on the amount of BBR linked loans in each transaction. EUROSAIL 2006-1: Fitch Downgrades Ratings on Class E Notes to 'CC' ------------------------------------------------------------------ Fitch Ratings has downgraded six tranches of Eurosail 2006-1 plc, and affirmed the other classes. All notes from this transaction were placed on Rating Watch Negative, on September 29, 2008, following the bankruptcy of Lehman Brothers Holding Inc as the transaction has counterparty exposure to LBHI or its subsidiaries via a fixed/floating rate swap and a liquidity facility. Fitch has received notice from the Issuer, that, prior to the bankruptcy, LBHI posted collateral that will be available to help meet the cost of any replacement of the swap. However recent reductions in LIBOR mean that the absence of the swap would be beneficial to the transaction. In current market conditions the replacement of a liquidity facility is considered by the agency to be unlikely and therefore the transaction has been analyzed assuming that neither the fixed/floating swap nor the liquidity facility will be replaced. The downgrades are therefore primarily based on the performance of this transaction rather than the non-replacement of the swap counterparty. As of the December 2008 interest payment date the transaction drew on its reserve fund for the first time by GBP530,191 (i.e. 14% of the target amount). This draw was primarily caused by increasing losses from sold repossessions being written to the transaction's principal deficiency ledgers. In December GBP1.9 million of loss was realized, in comparison to GBP1 million in September 2008. The downgrade of the class C to class E notes reflect this increased loss, and the agency's expectation of further increases in realized losses. Loans currently in repossession account for 5.4% of the current pool and Fitch expects that the loss severity realized on these loans will continue to rise due to the declining housing market in the UK. Further reserve fund draws are therefore expected to occur, reducing credit enhancement support to the notes. The downgrade of class A2c notes was driven by the absence of the liquidity facility, which does not allow this tranche to withstand the potential interest revenue stresses of a 'AAA' rating scenario. The absence of the LF also impacts on the junior notes, as in a situation where the reserve fund is fully utilized the LF would have paid interest on the junior notes (subject to performance triggers). This means that any shortfall in interest revenue would result in interest being deferred on the junior notes. Eurosail 2006-1 plc -- Class A2c (ISIN XS0253567720) downgraded to 'AA+' from 'AAA'; removed from RWN assigned Stable Outlook -- Class B1a (ISIN XS0253569007) affirmed at 'AA'; removed from RWN assigned Negative Outlook -- Class B1c (ISIN XS0253571243) affirmed at 'AA'; removed from RWN assigned Negative Outlook -- Class C1a (ISIN XS0253572050) downgraded to 'BBB' from 'A'; removed from RWN assigned Negative Outlook -- Class C1c (ISIN XS0253573298) downgraded to 'BBB' from 'A'; removed from RWN assigned Negative Outlook -- Class D1a (ISIN XS0253573611) downgraded to 'CCC' from 'BBB-' (BBB minus); removed from RWN assigned Distressed Recovery Rating 'DR3' -- Class D1c (ISIN XS0253574932) downgraded to 'CCC' from 'BBB-' (BBB minus); removed from RWN assigned Distressed Recovery Rating 'DR3' -- Class E (ISIN XS0253576630) downgraded to 'CC' from 'BB'; removed from RWN assigned Distressed Recovery Rating 'DR5' EUROSAIL UK: Fitch Downgrades Ratings on 39 Tranches ---------------------------------------------------- Fitch Ratings has downgraded 39 tranches of five Eurosail-UK transactions with exposure to currency swaps previously provided by Lehman Brothers. The rating actions are listed at the end of this announcement and are primarily driven by the recent movements in the foreign currency exchange rates, which, due to the absence of a currency swap in these deals, will limit the issuers' ability to meet interest and principal payments due on the notes, particularly the junior and mezzanine tranches of these deals. Following the downgrade of Lehman Brothers Holding Inc., on 26 September 2008, the agency placed the five transactions on Rating Watch Negative. As of the December 2008 interest payment date the transactions remain un-hedged, which has led the Issuer to swap GBP proceeds at the current spot rates to make payments due to Euro and US dollar noteholders. The agency believes that the costs of replacing the swaps will be prohibitive and that the exposure will remain unhedged. In its analysis, Fitch applied its currency stresses to assess the impact of the depreciation of the GBP against the Euro and US dollar on the Issuers' ability to meet principal and interest payments on the notes. The assigned ratings reflect Fitch's view of the level of under-collateralization that is likely to occur if exchange rates continue to move in a direction that is not in favor of the Issuer. In the agency's opinion, the notes initially rated below 'AAA' have a high probability of default, which is why these notes have been rated 'C' and assigned a Distressed Recovery Rating. The different ratings among the initially 'AAA' rated notes reflect the difference in timing of interest and principal receipts that the noteholders of these notes are expected to receive. The agency will continue to monitor the movements of the exchange rates, as well as the Issuer's ability to meet interest and principal payments, which could lead to some volatility in the ratings, particularly the mezzanine and junior tranches. In addition the agency has also taken into consideration the absence of other counterparty obligations also previously provided by LBHI or its subsidiaries. In general the affect of the absence of these counterparties is small in comparison to the absence of the currency swaps. The other counterparty exposure includes interest rate caps, fixed/floating and basis rate swaps. Under current market conditions the interest rate caps are not active, and are unlikely to become so, and the absence of a fixed/floating swap is likely to work in the favor of the transactions given the recent reductions in Libor. The lack of a basis rate hedge will affect the transactions as they contain loans linked to the Bank of England Base Rate, yet the note liabilities reference to either Libor or Euribor. The proportion of loans ultimately linked to BBR varies in each transaction, and ranges between 4.9% (in Eurosail-UK 07-6 NC PLC) and 100% (Eurosail Prime-UK 2007-A plc). The affect of the absence of a basis rate swap is therefore dependent on the amount of BBR linked loans in each transaction. The rating actions are: Eurosail - UK 2007-3 BL plc -- Class A1b (ISIN XS0308649309) downgraded to 'BBB' from 'AAA'; removed from RWN; assigned Negative Outlook -- Class A1c (ISIN XS0308653244) downgraded to 'BBB' from 'AAA'; removed from RWN; assigned Negative Outlook -- Class A2a (ISIN XS0308648673) downgraded to 'BB' from 'AAA'; removed from RWN; assigned Negative Outlook -- Class A2b (ISIN XS0308650224) downgraded to 'BB' from 'AAA'; removed from RWN; assigned Negative Outlook -- Class A2c (ISIN XS0308659795) downgraded to 'BB' from 'AAA'; removed from RWN; assigned Negative Outlook -- Class A3a (ISIN XS0308666493) downgraded to 'CC' from 'AAA'; removed from RWN; assigned Distressed Recovery Rating 'DR4' -- Class A3c (ISIN XS0308710143) downgraded to 'CC' from 'AAA'; removed from RWN; assigned Distressed Recovery Rating 'DR4' -- Class B1a (ISIN XS0308672384) downgraded to 'C' from 'AA'; removed from RWN; assigned Distressed Recovery Rating 'DR5' -- Class B1c (ISIN XS0308716421) downgraded to 'C' from 'AA'; removed from RWN; assigned Distressed Recovery Rating 'DR5' -- Class C1a (ISIN XS0308673192) downgraded to 'C' from 'A-' (A minus); removed from RWN; assigned Distressed Recovery Rating 'DR5' -- Class C1c (ISIN XS0308718047) downgraded to 'C' from 'A-' (A minus); removed from RWN; assigned Distressed Recovery Rating 'DR5' -- Class D1a (ISIN XS0308673945) downgraded to 'C' from 'BBB'; removed from RWN; assigned Distressed Recovery Rating 'DR5' -- Class E1c (ISIN XS0308725844) downgraded to 'C' from 'BB+'; removed from RWN; assigned Distressed Recovery Rating 'DR5' -- Class ETc (ISIN XS0309312543) downgraded to 'C' from 'BB+'; removed from RWN; assigned Distressed Recovery Rating 'DR5' Eurosail-UK 07-4 BL PLC -- Class A1a (ISIN XS0311594740) downgraded to 'BBB' from 'AAA'; removed from RWN; assigned Negative Outlook -- Class A1c (ISIN XS0311598907) downgraded to 'BBB' from 'AAA'; removed from RWN; assigned Negative Outlook -- Class A2a (ISIN XS0311680747) downgraded to 'BB' from 'AAA' removed from RWN; assigned Negative Outlook -- Class A3a (ISIN XS0311702657) downgraded to 'CCC' from 'AAA'; removed from RWN; assigned Distressed Recovery Rating 'DR3' -- Class A3c (ISIN XS0311704356) downgraded to 'CCC' from 'AAA'; removed from RWN; assigned Distressed Recovery Rating 'DR3' -- Class B1a (ISIN XS0311705759) downgraded to 'C' from 'AA'; removed from RWN; assigned Distressed Recovery Rating 'DR5' -- Class C1a (ISIN XS0311708696) downgraded to 'C' from 'A-' (A minus); removed from RWN; assigned Distressed Recovery Rating 'DR5' -- Class D1a (ISIN XS0311713001) downgraded to 'C' from 'BBB'; removed from RWN; assigned Distressed Recovery Rating 'DR5' -- Class E1c (ISIN XS0311717416) downgraded to 'C' from 'BB'; removed from RWN; assigned Distressed Recovery Rating 'DR5' Eurosail-UK 07-5 NP PLC -- Class A1a (ISIN XS0328024608) downgraded to 'CCC' from 'AAA' removed from RWN; assigned Distressed Recovery Rating 'DR3' -- Class A1c (ISIN XS0328025241) downgraded to 'CCC' from 'AAA' removed from RWN; assigned Distressed Recovery Rating 'DR3' -- Class B1c (ISIN XS0328025324) downgraded to 'C' from 'AA'; removed from RWN; assigned Distressed Recovery Rating 'DR5' -- Class C1c (ISIN XS0328025597) downgraded to 'C' from 'A'; removed from RWN; assigned Distressed Recovery Rating 'DR5' -- Class D1c (ISIN XS0328025670) downgraded to 'C' from 'BBB+'; removed from RWN; assigned Distressed Recovery Rating 'DR5' Eurosail-UK 07-6 NC PLC -- Class A1a (ISIN XS0332284651) downgraded to 'BB' from 'AAA'; removed from RWN; assigned Negative Outlook -- Class A2a (ISIN XS0332285039) downgraded to 'B' from 'AAA'; removed from RWN; assigned Negative Outlook -- Class A3a (ISIN XS0332285971) downgraded to 'CC' from 'AAA'; removed from RWN; assigned Distressed Recovery Rating 'DR5' -- Class B1a (ISIN XS0332286862) downgraded to 'C' from 'AA'; removed from RWN; assigned Distressed Recovery Rating 'DR5' -- Class C1a (ISIN XS0332287084) downgraded to 'C' from 'A'; removed from RWN; assigned Distressed Recovery Rating 'DR5' -- Class D1a (ISIN XS0332287597) downgraded to 'C' from 'BBB'; removed from RWN; assigned Distressed Recovery Rating 'DR5' Eurosail Prime-UK 2007-A plc -- Class A (ISIN XS0328494157) downgraded to 'CCC' from 'AAA'; removed from RWN; assigned Distressed Recovery Rating 'DR3' -- Class M (ISIN XS0328496368) downgraded to 'C' from 'AAA'; removed from RWN; assigned Distressed Recovery Rating 'DR6' -- Class B (ISIN XS0328504567) downgraded to 'C' from 'AA'; removed from RWN; assigned Distressed Recovery Rating 'DR6' -- Class C (ISIN XS0328511265) downgraded to 'C' from 'A'; removed from RWN; assigned Distressed Recovery Rating 'DR6' -- Class D (ISIN XS0328517205) downgraded to 'C' from 'BBB'; removed from RWN; assigned Distressed Recovery Rating 'DR6' FOTO PROCESSING: Appoints Joint Administrators from KPMG -------------------------------------------------------- On Dec. 2, 2008, Gerard Anthony Friar and Blair Carnegie Nimmo of KPMG LLP were appointed joint administrators of: -- Foto Processing (Holdings) Ltd., -- Foto Processing Ltd., -- Photographic Services (North West) Ltd., -- Specialist Photo Printers (Liverpool) Ltd., and -- Supasnaps Ltd. These companies can be reached at: Unit 1a Chestergates Dunkirk Trading Estate Chester CH1 6LT England GREEN CONTRACTS: Calls in Joint Administrators from Tenon Recovery ------------------------------------------------------------------ S. J. Parker and T. J. Binyon of Tenon Recovery were appointed joint administrators of Green Contracts Ltd. on Dec. 4, 2008. The company can be reached through Tenon Recovery at: Tenon Recovery Sherlock House 73 Baker Street London W1U 6RD England HOLMES MASTER: Moody's Assigns Ba2 Rating on Class D Notes ---------------------------------------------------------- Moody's Investors Service has assigned definitive credit ratings to these classes of Notes issued by Holmes Master Issuer plc: -- Aaa to the GBP2,000,000,000 Series 2008-2 Class A1 Notes due 2040; -- Aaa to the GBP7,000,000,000 Series 2008-2 Class A2 Notes due 2040; -- Aaa to the US$5,425,000,000 Series 2008-2 Class A3 Notes due 2040; -- Aa3 to the GBP450,000,000 Series 2008-2 Class B Notes due 2040; -- Baa2 to the GBP220,000,000 Series 2008-2 Class C Notes due 2040; and -- Ba2 to the GBP190,000,000 Series 2008-2 Class D Notes due 2040. Moody's also affirms that the issue of the notes by Holmes Master Issuer PLC will not adversely affect the existing rating of notes issued by Holmes Financing (No. 1) plc , Holmes Financing (No. 8) plc, Holmes Financing (No. 9) plc, Holmes Financing (No. 10) plc and Holmes Master Issuer plc. The structure allows for a call of any or all of the Series 2008-2 Notes. Moody's will need to review the ratings on the outstanding notes at such time. The last rating action on Holmes Master Issuer plc was on April 10, 2008 when Moody's assigned ratings of Aaa, Aa3, A2 and Baa2 to the Class A, Class B, Class M and Class C Notes respectively for the Series 2008-1 Notes. Moody's ratings of the notes are based upon an analysis of the mortgage pool characteristics, the legal and structural integrity of the issue, and the levels of protection available to the noteholders against defaults and arrears in the mortgage pool. The Notes are backed by a pool of prime UK residential mortgages originated by Abbey National plc. This represents the sixteenth issue out of the Holmes Financing Master Trust structure, and the sixth using the Holmes Master Issuer plc. As at the closing, date the Trust is expected to contain around GBP 53 billion of mortgage loans. Funding's share in the Trust Property will change on the closing date of this transaction to approximately 85.7%. The First Reserve Fund will amount to GBP830 million at closing or 1.83% of all the outstanding notes of the Holmes program. The pool remains of good credit quality: the weighted average original LTV of the pool is approximately 68.0%, the average seasoning of the loans in the pool is 35.0 months, and the originator is rated Aa3/Prime-1. The transaction is substituting. Moody's has sized the credit enhancement taking this into account. The key parameters used by Moody's to calibrate the loss distribution curve for this portfolio include a MILAN Aaa CE range of 9.6% - 9.8% and an expected loss range of 0.65% - 0.75%. The ratings address the expected loss posed to investors by the legal final maturity of the Notes. In Moody's opinion, the structure allows for timely payment of interest and ultimate payment of principal at par on or before the rated final legal maturity date. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors. HOLMES MASTER: Fitch Assigns 'BB' Rating on GBP190 Mil. Notes ------------------------------------------------------------- Fitch Ratings has assigned final ratings to Holmes Master Issuer PLC - Issue 2008-2's GBP-equivalent 13.36bn notes, backed by mortgage loans originated by Abbey National plc (Abbey National): -- GBP2,000,000,000 Series 1 Class A1: 'AAA' -- GBP7,000,000,000 Series 1 Class A2: 'AAA' -- US$5,425,000,000 Series 1 Class A3: 'AAA' -- GBP450,000,000 Series 1 Class B: 'AA' -- GBP220,000,000 Series 1 Class C: 'BBB' -- GBP190,000,000 Series 1 Class D: 'BB' Each rated class in this transaction has a Stable Outlook. The notes are the 16th issue from Abbey National's Holmes master trust program. The final ratings are based on Fitch's assessment of the underlying collateral, available credit enhancement, the origination and underwriting procedures used by Abbey, its servicing capabilities, either direct or by delegation and the transaction's sound legal structure. At closing, credit enhancement for the Class A notes totals 8.81%, which is provided by the subordination of the Class B (2.94%), Class M (1.02%), Class C notes (2.60%) and the Class D notes (0.42%) as well as a reserve account of 1.83%. Credit enhancement is calculated by taking into account outstanding notes from previous issuances. To analyze credit enhancement levels at closing, Fitch evaluated the collateral using its default model. The agency assessed the transaction cash flows using default and loss severity assumptions indicated by the default model under various recession timings, prepayment speeds, interest rates, and originator default scenarios. The cash flow tests showed that each Class of notes could withstand loan losses at a level corresponding to the related stress scenario without incurring any principal loss or interest shortfall and can retire principal by the legal final maturity. At closing, Fitch has also affirmed the ratings of the outstanding notes from each of the nine outstanding prior issuances under the -- Holmes master trust program: -- Holmes Financing (No. 1) PLC -- Holmes Financing (No. 8) PLC -- Holmes Financing (No. 9) PLC -- Holmes Financing (No. 10) PLC -- Holmes Master Issuer PLC - Issue 2006-1 -- Holmes Master Issuer PLC - Issue 2007-1 -- Holmes Master Issuer PLC - Issue 2007-2 -- Holmes Master Issuer PLC - Issue 2007-3 -- Holmes Master Issuer PLC - Issue 2008-1 Each class of notes in these transactions has a Stable Outlook. All classes of notes are backed by mortgage loans secured by residential properties in England, Wales and Scotland. KINGSBOURNE ESTATES: Taps Joint Administrators from PwC ------------------------------------------------------- David James Bennett and Robert William Birchall of PricewaterhouseCoopers LLP were appointed joint administrators of Kingsbourne Estates Ltd. on Dec. 5, 2008. The company can be reached at: Kingsbourne Estates Ltd. 38 Queens Road Lower Parkstone Poole Dorset BH14 9HG England MFI GROUP: Closes 111 Stores; 1,400 Jobs Affected ------------------------------------------------- MFI Group Ltd. has ceased trading after administrators MCR failed to find a buyer for the business, BBC News reports. According to the report, the company's 111 stores have now all been closed, resulting to the loss of 1,400 jobs. The administrators, however, could not say what redundancy payments would be made to the staff who had lost their jobs, the report notes. Customers with outstanding orders will get a refund, the report discloses. The report states that around 30,000 customers have been left with outstanding orders. The report meanwhile adds a huge warehouse used by MFI but run by logistics firm DHL will close on February 23 if a buyer is not found. Phil Duffy, Geoff Bouchier and Paul Clark of MCR were appointed as joint administrators to MFI Group Ltd on the evening of November 26, 2008. In a TCR-Europe report on November 28, 2008, BBC News said MFI blamed falling demand big ticket items, cash-flow problems and the withdrawal of credit for its collapse. BBC recounted increased competition from newer rivals such as Ikea hit MFI's sales. MFI is a retailer of quality fitted furniture in the UK. NEARBY STORES: Taps Joint Administrators from KPMG -------------------------------------------------- Richard John Hill and Jonathan Scott Pope of KPMG LLP were appointed joint administrators of Nearby Stores Ltd. on Dec. 8, 2008. The company can be reached at: Nearby Stores Ltd. Chota Castle Chew Lane Chew Magna Bristol BS40 8QA England P.C.M. LTD: Assets Sold to Confluence; 64 Jobs Secured ------------------------------------------------------ Administrators from KPMG have sold the trade and assets of London- based P.C.M. Ltd, the property and construction consulting arm of Pettifer Group Ltdd, to Confluence Property Management Ltd, preserving 64 jobs in the process. Will Wright, Restructuring Director at KPMG said: "In a difficult market we are delighted to have secured this sale which preserves the jobs of the 64 company staff just prior to the Christmas period. "We are continuing our work on the administrations of Pettifer Construction Limited, Pettifer Estates Ltd and Pettifer Group Ltd." About KPMG LLP (UK) KPMG LLP (UK) -- http://kpmg.co.uk/-- provides professional services including audit, tax, financial and risk advisory. KPMG in the UK has over 10,000 partners and staff working in 22 offices and is part of a strong global network of members firms. As part of KPMG Europe it has merged with its German and Swiss firms, making it the largest integrated accounting firm in Europe. SOUTHERN PACIFIC: Fitch Downgrades Ratings on 15 Tranches --------------------------------------------------------- Fitch Ratings has downgraded 15 tranches of three Southern Pacific Securities transactions. Distressed recovery ratings were assigned on eight tranches across all three deals. The recent rating actions are caused by a combination of factors: the deterioration in the housing and mortgage market conditions, as well as the performance of the three transactions. In actual terms the volume loans in arrears by more than three months continues to decrease in all three transactions, however the high prepayment rates have led to an increase in the three months plus arrears ratio. According to the data as of September 2008, such loans make up 34.35% (SPS 05-2), 30.71% (SPS 05-3) and 33.14% (SPS 06-1) of the current portfolios outstanding, which is higher than those seen in other UK non-conforming transactions rated by Fitch. On the other hand, the volume of loans in repossession continues to rise in the three SPS deals. According to the latest investor reports the portion of loans in repossession stood at 10.6%, 7% and 5.93% of the current portfolios outstanding. The detachable A2 coupons in SPS 05-2 expired in September 2008, which meant that the transaction was likely to generate more excess spread in this quarter. However, in December 2008 the effect of these has been offset by an increase in the volume of losses and according to the latest reports, the transaction was able to generate GBP568 worth of excess spread (compared to GBP111,421 in September 2008). In SPS 05-3 the limited availability of excess spread was reflected in the decrease in the interest rate cap reserve fund, leaving GBP821,071 available in for the next interest payment date. If losses continue to realize at current pace, Fitch believes that reserve fund draws are likely to occur within the next couple of IPDs. Meanwhile, in SPS 06-1 the increase in realized losses has caused the transaction to draw on its reserve fund in December 2008. In December 2008, the issuer fully depleted the interest rate cap reserve fund left as of the last IPD (in the amount of GBP554,727) was used to cover part of the realized losses that occurred in the period (GBP870,691). The reports show that the remaining losses were covered by proceeds available in the reserve fund. The draw in this period was GBP252,614 (i.e. 14.03% of the target amount). The last payment on the DAC coupons of SPS 05-3 was made in December 2008. Fitch expects that this should to some extent help provide additional excess spread, but the agency also believes that these funds will be utilized to cover an increasing volume of realized losses. Although the loans in the securitized pool have now all reverted to standard variable rates, given the recent Bank of England rate cuts, borrowers will continue to make payments that are not much higher than the ones they made in the course of their fixed rate/discount period. Similarly in SPS 06-1, the DAC is due to expire in March 2009 at which point the remaining 2.67% of the pool is due to revert to SVR. As Fitch expects further losses to be realized, as well as further reserve fund draws to occur, the agency assigned Distressed Recovery ratings on the excess spread notes and the most junior tranches. These ratings reflect Fitch's concern on the likelihood of principal payments being made to the noteholders of these notes. The Positive Outlooks on class B1a and B1c notes of SPS 05-2 were affirmed with Positive Outlooks predominantly due to the level of credit support available to these tranches in comparison to the other senior notes in the transactions. Should the performance of this deal continue to deteriorate, further rating actions will be taken as deemed appropriate. Rating actions are: Southern Pacific Securities 05-2 plc -- Class A2c (ISIN XS0225858512) affirmed at 'AAA'; Outlook Stable -- Class B1a (ISIN XS0225861490) affirmed at 'AA'; Outlook Positive -- Class B1c (ISIN XS0225862894) affirmed at 'AA'; Outlook Positive -- Class C1a (ISIN XS0225865483) affirmed at 'A'; Outlook Stable -- Class C1c (ISIN XS0225876688) affirmed at 'A'; Outlook Stable -- Class D1a (ISIN XS0225877652) downgraded to 'BB' from 'BBB'; Outlook revised to Negative from Stable -- Class E1c (ISIN XS0225879278) downgraded to 'CCC' from 'BB'; Distressed Recovery Rating of 'DR2' assigned -- Class E2c (ISIN XS0225879518) downgraded to 'C' from 'BB'; Distressed Recovery Rating of 'DR5' assigned Southern Pacific Securities 05-3 plc: -- Class A2a (ISIN XS0235514972) affirmed at 'AAA'; Outlook Stable -- Class A2c (ISIN XS0235515607) affirmed at 'AAA'; Outlook Stable -- Class B1a (ISIN XS0235516084) affirmed at 'AA'; Outlook Stable -- Class B1c (ISIN XS0235516241) affirmed at 'AA'; Outlook Stable -- Class C1a (ISIN XS0235516324) affirmed at 'A'; Outlook Stable -- Class C1c (ISIN XS0235516753) affirmed at 'A'; Outlook Stable -- Class D1a (ISIN XS0235516837) downgraded to 'BB' from 'BBB'; Outlook Negative -- Class D1c (ISIN XS0235517215) downgraded to 'BB' from 'BBB'; Outlook Negative -- Class E1c (ISIN XS0235517728) downgraded to 'CCC' from 'BB'; Distressed Recovery Rating of 'DR2' assigned -- Class DTc (ISIN XS0235517645) downgraded to 'CCC' from 'BBB'; Distressed Recovery Rating of 'DR3' assigned -- Class ETc (ISIN XS0235517991) downgraded to 'CC' from 'B'; Distressed Recovery Rating of 'DR5' assigned -- Class FTc (ISIN XS0235518296) affirmed at 'C'; Distressed Recovery Rating of 'DR6' Southern Pacific Securities 06-1 plc: -- Class A2a (ISIN XS0240948397) affirmed at 'AAA'; Outlook Stable -- Class A2c (ISIN XS0240957380) affirmed at 'AAA'; Outlook Stable DAC A2c (ISIN XS0240958354) affirmed at 'AAA'; Outlook Stable -- Class B1c (ISIN XS0240950880) affirmed at 'AA'; Outlook Stable -- Class C1a (ISIN XS0240951185) downgraded to 'A-' (A minus) from 'A'; Outlook revised to Negative from Stable -- Class C1c (ISIN XS0240952076) downgraded to 'A-' (A minus) from 'A'; Outlook revised to Negative from Stable -- Class D1a (ISIN XS0240952316) downgraded to 'BB' from 'BBB'; Outlook Negative -- Class D1c (ISIN XS0240953470) downgraded to 'BB' from 'BBB'; Outlook Negative -- Class E1c (ISIN XS0240954015) downgraded to 'CC' from 'BB'; Distressed Recovery Rating 'DR4' assigned -- Class DTc (ISIN XS0240953710) downgraded to 'CCC' from 'BBB'; Distressed Recovery Rating 'DR3' assigned -- Class ETc (ISIN XS0240954957) downgraded to 'CC' from 'B'; Distressed Recovery Rating 'DR5' assigned -- Class FTc (ISIN XS0240956572) affirmed at 'C'; Distressed Recovery Rating of 'DR6' SPIRE TOOLS: Appoints Joint Liquidators from Tenon Recovery ----------------------------------------------------------- Alexander Kinninmonth and Nigel Ian Fox of Tenon Recovery were appointed joint liquidators of Spire Tools Ltd. on Dec. 2, 2008, for the creditors' voluntary winding-up proceeding. The company can be reached through Tenon Recovery at: Highfield Court Tollgate Chandlers Ford Eastleigh Hampshire SO53 3TZ England SUMMERHALL: Bought Out of Administration by Stewarts ---------------------------------------------------- Livingston-based printing firm Stewarts of Edinburgh has bought Summerhall out of administration for an undisclosed amount, the Scotsman reports. The acquisition, the report notes, will nearly treble Stewarts' GBP6.5 million turnover to an estimated GBP18.5 million and add two new sites in Edinburgh. According to the report, all 135 jobs at Summerhall have been transferred to Stewarts although the company is currently in discussion with the employees' union to cut jobs. Summerhall, the report recounts, went into administration late last week. WORKING INTERIORS: Taps Liquidators from Smith & Williamson ----------------------------------------------------------- Peter W. Engel and Mark G. Boughey of Smith & Williamson were appointed joint liquidators of Working Interiors (Bristol) Ltd. on Dec. 4, 2008, for the creditors' voluntary winding-up proceeding. The company can be reached through Smith & Williamson at: Portwall Place Portwall Lane Bristol BS1 6NA England =============== X X X X X X X X =============== * Moody's Cuts Ratings on 273 Notes Issued by Certain CDO Deals --------------------------------------------------------------- Moody's Investors Service has downgraded its ratings of 273 Notes issued by certain collateralized debt obligation transactions backed by structured finance securities, each of which originated in 2005 - 2007. Moody's explained that the rating actions taken are the result of the application of revised and updated key modelling parameter assumptions that Moody's uses to rate and monitor ratings of SF CDOs. The revisions affect the three key parameters in Moody's model for rating SF CDOs: asset correlation, default probability and recovery rate. Moody's noted that the lowered ratings remain on review for possible downgrade due to the continuing weakness in the performance of and outlook for structured finance securities that back SF CDOs. The rating actions are: Issuer: Anthracite Euro CRE CDO 2006-1 plc (1) Class A Senior Floating Rate Notes due 2042 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 18 December 2006 (2) Class B Senior Floating Rate Notes due 2042 -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aa1 -- Prior Rating Date: 18 December 2006 (3) Class C Deferrable Interest Floating Rate Notes due 2042 -- Current Rating: Baa1, on review for possible downgrade -- Prior Rating: A1 -- Prior Rating Date: 18 December 2006 (4) Class D Deferrable Interest Floating Rate Notes due 2042 -- Current Rating: Ba2, on review for possible downgrade -- Prior Rating: Baa2 -- Prior Rating Date: 18 December 2006 (5) Class E Deferrable Interest Floating Rate Notes due 2042 -- Current Rating: B2, on review for possible downgrade -- Prior Rating: Ba2 -- Prior Rating Date: 18 December 2006 Issuer: Argon Capital PLC - Series 77 (Lagonda) (1) EUR10,200,000 Limited Recourse Secured Variable Rate Credit- Linked Notes due 2047 -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: A2 -- Prior Rating Date: 27 April 2007 Issuer: Argon Capital Plc - Series 84, 85 and 87 (1) Series 84 EUR25,500,000 Limited Recourse secured Variable Rate Credit-Linked Notes due 2047-1 -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aa1, on review for possible downgrade -- Prior Rating Date: 23 October 2008 (2) Series 85 EUR23,000,000 Limited Recourse secured Variable Rate Credit-Linked Notes due 2047-2 -- Current Rating: A2, on review for possible downgrade -- Prior Rating: Aa2, on review for possible downgrade -- Prior Rating Date: 23 October 2008 (3) Series 87 EUR10,500,000 Limited Recourse secured Variable Rate Credit-Linked Notes due 2047-4 -- Current Rating: Ba2, on review for possible downgrade -- Prior Rating: Baa2 -- Prior Rating Date: 20 September 2007 Issuer: Arosa Funding Limited - Series 2006-6 (1) EUR20,000,000 Secured Credit-Linked Floating Rate Notes due 2013 -- Current Rating: Ba1 -- Prior Rating: Baa1 -- Prior Rating Date: 04 June 2007 Issuer: Avebury Finance CDO p.l.c. (1) US$9,700,000 Class X Floating Rate Notes due 2012 -- Current Rating: Aaa, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 28 June 2006 (2) US$879,500,000 Class A-1A Revolving Floating Rate Notes due 2051 -- Current Rating: B3, on review for possible downgrade -- Prior Rating: Ba3, on review for possible downgrade -- Prior Rating Date: 02 July 2008 Issuer: Baker Street Finance Limited / Baker Street US$ Finance Limited (1) EUR137,500,000 Class A-1a Floating Credit Linked Notes -- Current Rating: A2, on review for possible downgrade -- Prior Rating: Aa2, on review for possible downgrade -- Prior Rating Date: 14 October 2008 (2) EUR90,200,000 Class A2 Floating Credit Linked Notes -- Current Rating: Ba2, on review for possible downgrade -- Prior Rating: Baa2, on review for possible downgrade -- Prior Rating Date: 14 October 2008 (3) EUR89,100,000 Class B Floating Credit Linked Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: B3, on review for possible downgrade -- Prior Rating Date: 14 October 2008 (4) EUR68,750,000 Class C Floating Credit Linked Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa1, on review for possible downgrade -- Prior Rating Date: 14 October 2008 (5) EUR55,000,000 Class D Floating Credit Linked Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa2, on review for possible downgrade -- Prior Rating Date: 14 October 2008 (6) EUR110,000,000 Class A-1b Floating Credit Linked Notes -- Current Rating: Baa1, on review for possible downgrade -- Prior Rating: A1, on review for possible downgrade -- Prior Rating Date: 14 October 2008 (7) EUR92,400,000 Class A-1c Floating Credit Linked Notes -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: A2, on review for possible downgrade -- Prior Rating Date: 14 October 2008 (8) US$8,400,000 Class A1-US$ Floating Credit-Linked Notes-1 -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: A2, on review for possible downgrade -- Prior Rating Date: 14 October 2008 (9) US$8,200,000 Class A2-US$ Floating Credit-Linked Notes-2 -- Current Rating: Ba2, on review for possible downgrade -- Prior Rating: Baa2, on review for possible downgrade -- Prior Rating Date: 14 October 2008 (10) US$8,100,000 Class B-US$ Floating Credit-Linked Notes-3 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: B3, on review for possible downgrade -- Prior Rating Date: 14 October 2008 (11) US$6,250,000 Class C-US$ Floating Credit-Linked Notes-4 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa1, on review for possible downgrade -- Prior Rating Date: 14 October 2008 (12) US$5,000,000 Class D-US$ Floating Credit-Linked Notes-5 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa2, on review for possible downgrade -- Prior Rating Date: 14 October 2008 Issuer: Bantry Bay CDO I P.L.C. (1) US$127,000,000 Class A-1 Floating Rate Notes, due 2052 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: B3, on review for possible downgrade -- Prior Rating Date: 17 June 2008 Issuer: Cairn High Grade ABS CDO I PLC (1) US$911,000,000 Class A1 Delayed Draw Floating Rate Notes due 2055 -- Current Rating: Baa1, on review for possible downgrade -- Prior Rating: A1, on review for possible downgrade -- Prior Rating Date: 05 August 2008 (2) US$20,000,000 Class A2 Floating Rate Notes due 2055 -- Current Rating: Caa2, on review for possible downgrade -- Prior Rating: B2, on review for possible downgrade -- Prior Rating Date: 05 August 2008 (3) US$20,000,000 Class B Floating Rate Notes due 2055 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa2, on review for possible downgrade -- Prior Rating Date: 05 August 2008 Issuer: Cheyne CLO Investments I Limited (1) Supersenior Financial Guarantee -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 04 April 2005 (2) Class A -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aa1 -- Prior Rating Date: 04 April 2005 (3) Class B -- Current Rating: A2, on review for possible downgrade -- Prior Rating: Aa2 -- Prior Rating Date: 04 April 2005 (4) Class C -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: A2 -- Prior Rating Date: 04 April 2005 (5) Class D -- Current Rating: Ba2, on review for possible downgrade -- Prior Rating: Baa2 -- Prior Rating Date: 04 April 2005 (6) Class E -- Current Rating: B1, on review for possible downgrade -- Prior Rating: Ba1 -- Prior Rating Date: 04 April 2005 Issuer: Chrome Funding Limited Series 15 to 17 (Odeon CDO notes) (1) Series 15 Class A Tranche 1 (Odeon CDO)-1 -- Current Rating: Caa2, on review for possible downgrade -- Prior Rating: B2, on review for possible downgrade -- Prior Rating Date: 23 June 2008 (2) Series 16 Class B Tranche 1 (Odeon CDO) -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa2, on review for possible downgrade -- Prior Rating Date: 23 June 2008 Issuer: Claris IV Limited - Carmel Valley Series 5 (1) Series 5/2006 EUR40,000,000 Carmel Valley 2006-3 Synthetic CDO of RMBS -- Current Rating: Caa1, on review for possible downgrade -- Prior Rating: B1, on review for possible downgrade -- Prior Rating Date: 24 July 2008 Issuer: Claris IV Limited - Carmel Valley Series 6 (1) Series 6/2006 EUR5,000,000 Carmel Valley 2006-3 Synthetic CDO of RMBS -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: B3, on review for possible downgrade -- Prior Rating Date: 24 July 2008 Issuer: Claris IV Limited - Leibnitz (1) Series 8 Tranche 1 Leibnitz 2006-1 Synthetic CDO of RMBS Variable Rate Notes due 2046 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa1, on review for possible downgrade -- Prior Rating Date: 23 June 2008 (2) Series 9 Tranche 1 Leibnitz 2006-1 Synthetic CDO of RMBS Variable Rate Notes due 2046 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa2, on review for possible downgrade -- Prior Rating Date: 13 March 2008 Issuer: Claris IV Limited - Series 7 CARMEL VALLEY (1) Series 7/2006 US$17,500,000 Carmel Valley 2006-3 Synthetic CDO of RMBS -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: B3, on review for possible downgrade -- Prior Rating Date: 24 July 2008 Issuer: Claris IV Limited - Sonoma Valley 2006-1 (1) US$35,000,000 Series 80 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 23 November 2006 (2) US$61,000,000 Series 75 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 23 November 2006 (3) US$23,000,000 Series 74 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 23 November 2006 (4) US$5,000,000 Series 73 -- Current Rating: A3, on review for possible downgrade -- Prior Rating: Aa3 -- Prior Rating Date: 23 November 2006 (5) US$25,000,000 Series 72 -- Current Rating: A3, on review for possible downgrade -- Prior Rating: Aa3 -- Prior Rating Date: 23 November 2006 Issuer: Claris Limited - Napa Valley IV Synthetic CDO of ABS (1) Series 51/2005 Tranche 1 Napa Valley IV Synthetic CDO of ABS Floating Rate Notes -- Current Rating: Caa2, on review for possible downgrade -- Prior Rating: Ba2, on review for possible downgrade -- Prior Rating Date: 01 May 2008 (2) Series 52/2005 Tranche 1 Napa Valley IV Synthetic CDO of ABS Floating Rate Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Ba3, on review for possible downgrade -- Prior Rating Date: 01 May 2008 (3) Series 54/2005 Tranche 1 Napa Valley IV Synthetic CDO of ABS Floating Rate Notes -- Current Rating: Ba1, on review for possible downgrade -- Prior Rating: A1, on review for possible downgrade -- Prior Rating Date: 01 May 2008 (4) Series 55/2005 Tranche 1 Napa Valley IV Synthetic CDO of ABS Floating Rate Notes -- Current Rating: Ba1, on review for possible downgrade -- Prior Rating: A1, on review for possible downgrade -- Prior Rating Date: 01 May 2008 Issuer: Claris Limited - Napa Valley XI Series 102 - 103 - 107 1) Series 102/2007 Tranche 1 JPY2,000,000,000 Napa Valley XI Synthetic CDO of ABS Floating Rate Notes due 2027 -- Current Rating: Caa2, on review for possible downgrade -- Prior Rating: B2, on review for possible downgrade -- Prior Rating Date: 19 August 2008 (2) Series 103/2007 Tranche 1 EUR30,000,000 Napa Valley XI Synthetic CDO of ABS Floating Rate Notes due 2027 -- Current Rating: Ba1, on review for possible downgrade -- Prior Rating: A3, on review for possible downgrade -- Prior Rating Date: 19 August 2008 (3) Series 107/2007 Tranche 1 JPY1,000,000,000 Napa Valley XI Synthetic CDO of ABS Floating Rate Notes due 2027 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: B3, on review for possible downgrade -- Prior Rating Date: 19 August 2008 Issuer: Claris Limited - Series 108, 109 & 110 (Millesime 2007-3) (1) Series 108/2007-Tranche 1- JPY1,000,000,000 -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: A2 -- Prior Rating Date: 25 July 2007 (2) Series 109/2007 - Tranche 1- JPY2,300,000,000 -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: A2 -- Prior Rating Date: 25 July 2007 (3) Series 110/2007-Tranche 1-EUR13,000,000 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 25 July 2007 Issuer: Claris Limited - Series 96/2007 (Sonoma Valley 2007-3) (1) Series 96/2007 Tranche 1 US$10,000,000 Sonoma Valley 2007-3 Synthetic CDO of CMBS Variable Notes due 2037 -- Current Rating: Baa1, on review for possible downgrade -- Prior Rating: A1 -- Prior Rating Date: 24 May 2007 Issuer: Claris Limited - Voltaire Credit-Linked Notes (1) Series 43/2005 Voltaire Floating Rate Credit Linked Notes-1 -- Current Rating: A2, on review for possible downgrade -- Prior Rating: Aa2, on review for possible downgrade -- Prior Rating Date: 20 November 2008 (2) Series 45/2005 Voltaire Fixed Rate Credit Linked Notes -- Current Rating: A2, on review for possible downgrade -- Prior Rating: Aa2 -- Prior Rating Date: 20 November 2008 Issuer: Claris Limited (Napa Valley V(II) Equity Tranche) (1) Series 66/2006 TRANCHE 1 EUR20,000,000 Napa Valley V(II) Synthetic CDO of ABS Floating Rate Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: B3, on review for possible downgrade -- Prior Rating Date: 01 May 2008 Issuer: Claris Limited (Napa Valley V(II) Mezzanine Tranche) (1) Series 67/2006 TRANCHE 1 EUR40,000,000 Napa Valley V(II) Synthetic CDO of ABS Floating Rate Notes -- Current Rating: Ba2, on review for possible downgrade -- Prior Rating: Baa2, on review for possible downgrade -- Prior Rating Date: 01 May 2008 Issuer: Claris Limited Napa Valley IX Series 81 (1) Series 81 TRANCHE 1 JPY1,000,000,000 Napa Valley IX Synthetic CDO of ABS Floating Rate Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: B3, on review for possible downgrade -- Prior Rating Date: 16 June 2008 Issuer: Claris Limited Series 101/2007 Napa Valley X CDO of ABS Floating Rate Notes (1) Series 101/2007 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa1, on review for possible downgrade -- Prior Rating Date: 23 June 2008 Issuer: Claris Limited Series 38/2005 (Napa Valley III) (1) Series 38/2005 Napa Valley III -- Current Rating: B1, on review for possible downgrade -- Prior Rating: Ba1, on review for possible downgrade -- Prior Rating Date: 01 May 2008 Issuer: Claris Limited Series 59 to 62 (Napa Valley V) (1) Series 59/2005 Tranche 1 Napa Valley V Synthetic CDO of ABS Floating Rate Notes -- Current Rating: B2, on review for possible downgrade -- Prior Rating: Ba2, on review for possible downgrade -- Prior Rating Date: 02 May 2008 (2) Series 60/2005 Tranche 1 Napa Valley V Synthetic CDO of ABS Floating Rate Notes -- Current Rating: B3, on review for possible downgrade -- Prior Rating: Ba3, on review for possible downgrade -- Prior Rating Date: 02 May 2008 (3) Series 61/2005 Tranche 1 Napa Valley V Synthetic CDO of ABS Variable Rate Notes -- Current Rating: B3, on review for possible downgrade -- Prior Rating: Ba3, on review for possible downgrade -- Prior Rating Date: 02 May 2008 Issuer: Claris Limited Series 63/2006 (Napa Valley 2006-1) (1) Series 63/2006 Tranche 1 Napa Valley 2006-1 Synthetic CDO of ABS Floating Rate Note -- Current Rating: Caa2, on review for possible downgrade -- Prior Rating: B2, on review for possible downgrade -- Prior Rating Date: 07 May 2008 Issuer: Claris Limited Series 88 & 89 (Millesime 2007-2 Portfolio) (1) Series 88/2007-1 -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: A2 -- Prior Rating Date: 30 March 2007 (2) Series 89/2007-1 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 30 March 2007 Issuer: Claris Limited Series 99/2007 - Napa Valley X (1) Series 99/2007 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa1, on review for possible downgrade -- Prior Rating Date: 23 June 2008 Issuer: Clifton Street Finance Limited (1) Class A-1 -- Current Rating: Ba2, on review for possible downgrade -- Prior Rating: Baa2, on review for possible downgrade -- Prior Rating Date: 24 November 2008 (2) Class A-2 -- Current Rating: Ba3, on review for possible downgrade -- Prior Rating: Baa3, on review for possible downgrade -- Prior Rating Date: 24 November 2008 (3) Class B -- Current Rating: B3, on review for possible downgrade -- Prior Rating: Ba3, on review for possible downgrade -- Prior Rating Date: 24 November 2008 (4) Class C -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: B3, on review for possible downgrade -- Prior Rating Date: 24 November 2008 Issuer: Cloverie Plc - Series 2004-72, 2004-77 & 2005-04 (US Onyx) (1) US$50,000,000 Class C Secured Floating Rate Series 2005-04 -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aa1, on review for possible downgrade -- Prior Rating Date: 02 June 2008 Issuer: Cloverie Plc - Series 2005-07 (US Onyx) (1) US$25,000,000 Class C Secured Floating Rate Series 2005-07 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 27 May 2005 Issuer: Cloverie Plc - Series 2005-33 (US Onyx) (1) Series 2005-33 - US$18,750,000 Class C Secured Floating Rate Portfolio Linked Notes due 2025 -- Current Rating: Baa1, on review for possible downgrade -- Prior Rating: A1, on review for possible downgrade -- Prior Rating Date: 02 June 2008 Issuer: Cloverie Plc - Series 2005-34 (US Onyx) (1) Series 2005-34 - US$18,750,000 Class C Secured Floating Rate Portfolio Linked Notes due 2025 -- Current Rating: Baa1, on review for possible downgrade -- Prior Rating: A1, on review for possible downgrade -- Prior Rating Date: 02 June 2008 Issuer: Cloverie Plc - Series 2005-35 (US Onyx) (1) Series 2005-35 - US$18,750,000 Class C Secured Floating Rate Portfolio Linked Notes due 2025 -- Current Rating: Baa1, on review for possible downgrade -- Prior Rating: A1, on review for possible downgrade -- Prior Rating Date: 02 June 2008 Issuer: Cloverie Plc - Series 2005-46 (US Onyx) (1) Series 2005-46 - US$15,000,000 Class C Secured Floating Rate Portfolio Linked Notes due 2025 -- Current Rating: B3, on review for possible downgrade -- Prior Rating: Ba3, on review for possible downgrade -- Prior Rating Date: 02 June 2008 Issuer: Cloverie Plc - Series 2005-47 (US Onyx) (1) Series 2005-47 - US$15,000,000 Class C Secured Floating Rate Portfolio Linked Notes due 2025 -- Current Rating: Caa1, on review for possible downgrade -- Prior Rating: B1, on review for possible downgrade -- Prior Rating Date: 02 June 2008 Issuer: Cloverie Plc - Series 2005-48 (US Onyx) (1) Series 2005- 48 - US$15,000,000 Class C Secured Floating Rate Portfolio Linked Notes due 2025 -- Current Rating: B3, on review for possible downgrade -- Prior Rating: Ba3, on review for possible downgrade -- Prior Rating Date: 02 June 2008 Issuer: Cloverie Plc - Series 2005-49 (US Onyx) (1) Series 2005- 49 - US$15,000,000 Class C Secured Floating Rate Portfolio Linked Notes due 2025 -- Current Rating: B2, on review for possible downgrade -- Prior Rating: Ba2, on review for possible downgrade -- Prior Rating Date: 02 June 2008 Issuer: Cloverie plc - Series 2005-74 (1) Series 2005-74 - EUR40,000,000 Class C Secured Floating Rate Portfolio Linked Notes due 2020 -- Current Rating: A2, on review for possible downgrade -- Prior Rating: Aa2 -- Prior Rating Date: 16 September 2005 Issuer: Cloverie plc - Series 2005-78, 79, 80 & 81 (Maracana) (1) Series 2005-78 - US$15,000,000 Class S-2 Secured Floating Rate Portfolio Credit Linked Notes due 2043 -- Current Rating: Caa2, on review for possible downgrade -- Prior Rating: B2, on review for possible downgrade -- Prior Rating Date: 08 May 2008 (2) Series 2005-79 - US$15,000,000 Class S-4 Secured Floating Rate Portfolio Credit Linked Notes due 2043 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: B3, on review for possible downgrade -- Prior Rating Date: 08 May 2008 (3) Series 2005-80 - US$15,000,000 Class A Secured Floating Rate Portfolio Credit Linked Notes due 2043 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa1, on review for possible downgrade -- Prior Rating Date: 08 May 2008 (4) Series 2005-81 - US$15,000,000 Class B Secured Floating Rate Portfolio Credit Linked Notes due 2043 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa1, on review for possible downgrade -- Prior Rating Date: 08 May 2008 Issuer: Cloverie Plc - Series 2006-1/2/3 (1) Series 2006-1 - Class A Secured Floating Rate Portfolio Credit Linked Notes due 2045-1 -- Current Rating: Ba1, on review for possible downgrade -- Prior Rating: Baa1, on review for possible downgrade -- Prior Rating Date: 21 May 2008 (2) Series 2006-2 - Class B Secured Floating Rate Portfolio Credit Linked Notes due 2045-2 -- Current Rating: B1, on review for possible downgrade -- Prior Rating: Ba1, on review for possible downgrade -- Prior Rating Date: 21 May 2008 (3) Series 2006-3 - Class D Secured Floating Rate Portfolio Credit Linked Notes due 2045-3 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa1, on review for possible downgrade -- Prior Rating Date: 21 May 2008 Issuer: Coriolanus Limited Series 30 (1) Series 30 US$35,000,000 Floating Rate Portfolio Credit Linked Secured Notes due 2040 -- Current Rating: A2, on review for possible downgrade -- Prior Rating: Aa2 -- Prior Rating Date: 22 September 2005 Issuer: Coriolanus Limited Series 63 and 69 (1) Coriolanus Limited Series 69 US$5,000,000 Class B Floating Rate Secured Notes due 2046-2 -- Current Rating: B3, on review for possible downgrade -- Prior Rating: Ba3, on review for possible downgrade -- Prior Rating Date: 01 July 2008 Issuer: Corsair (Jersey) No 4 Limited - Series 11 (1) Series 11 Floating Rate Step-down Secured Portfolio CLN -- Current Rating: A3, on review for possible downgrade -- Prior Rating: Aa3 -- Prior Rating Date: 30 July 2007 Issuer: Credit Derivative Transaction Sonoma Valley 2006-1 (1) US$23,000,000 Sonoma Valley swap -- Current Rating: A3, on review for possible downgrade -- Prior Rating: Aa3 -- Prior Rating Date: 23 November 2006 Issuer: Credit Derivative Transactions Sonoma Valley II 2006-1 (1) US$44,000,000 Sonoma Valley II Swap -- Current Rating: A3, on review for possible downgrade -- Prior Rating: Aa3 -- Prior Rating Date: 23 November 2006 Issuer: Curzon Funding Limited Series 2005-1 (HORIZON CDO Series) (1) Series 2005-1 Horizon Class A Variable Coupon Notes -- Current Rating: A2, on review for possible downgrade -- Prior Rating: Aa2, on review for possible downgrade -- Prior Rating Date: 19 November 2008 (2) Series 2005-1 Horizon Class B Variable Coupon Notes -- Current Rating: B1, on review for possible downgrade -- Prior Rating: Ba1, on review for possible downgrade -- Prior Rating Date: 19 November 2008 (3) Series 2005-1 Horizon Class C Variable Coupon Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa1, on review for possible downgrade -- Prior Rating Date: 19 November 2008 Issuer: Curzon Funding Limited Series 2005-2 (Horizon IIIE) (1) Series 2005-2 Horizon IIIE Class A Variable Coupon Notes -- Current Rating: A2, on review for possible downgrade -- Prior Rating: Aa2, on review for possible downgrade -- Prior Rating Date: 19 November 2008 (2) Series 2005-2 Horizon IIIE Class B Variable Coupon Notes -- Current Rating: B1, on review for possible downgrade -- Prior Rating: Ba1, on review for possible downgrade -- Prior Rating Date: 19 November 2008 (3) Series 2005-2 Horizon IIIE Class C Variable Coupon Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa1, on review for possible downgrade -- Prior Rating Date: 19 November 2008 Issuer: Curzon Funding Limited Series 2006-1 (Horizon CDO VI) (1) Series 2006-1 Class A Variable Coupon Notes -- Current Rating: Ba2, on review for possible downgrade -- Prior Rating: Baa2, on review for possible downgrade -- Prior Rating Date: 11 July 2008 (2) Series 2006-1 Class B Variable Coupon Notes -- Current Rating: B2, on review for possible downgrade -- Prior Rating: Ba2, on review for possible downgrade -- Prior Rating Date: 11 July 2008 (3) Series 2006-1 Class C Variable Coupon Notes -- Current Rating: Caa2, on review for possible downgrade -- Prior Rating: B2, on review for possible downgrade -- Prior Rating Date: 11 July 2008 (4) Series 2006-1 Class D Variable Coupon Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa1, on review for possible downgrade -- Prior Rating Date: 11 July 2008 Issuer: Curzon Funding Limited Series 2006-3 (Horizon CDO VIII) (1) Series 2006-3 Class A Floating Coupon Notes -- Current Rating: B1, on review for possible downgrade -- Prior Rating: Ba1, on review for possible downgrade -- Prior Rating Date: 04 August 2008 (2) Series 2006-3 Class B Floating Coupon Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: B3, on review for possible downgrade -- Prior Rating Date: 04 August 2008 Issuer: Delta CDO plc (1) Series 2005-1 B-1 Floating Rate Credit Linked Secured Notes due 2039 -- Current Rating: Ba2, on review for possible downgrade -- Prior Rating: Baa2, on review for possible downgrade -- Prior Rating Date: 06 May 2008 (2) Series 2005-1 C-1 Floating Rate Credit Linked Secured Notes due 2039 -- Current Rating: Caa1, on review for possible downgrade -- Prior Rating: B1, on review for possible downgrade -- Prior Rating Date: 06 May 2008 (3) Series 2005-1 D-1 Floating Rate Credit Linked Secured Notes due 2039 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa1, on review for possible downgrade -- Prior Rating Date: 06 May 2008 Issuer: Delta CDO plc - Series 2005-2 (1) Series 2005-2 B-1 Floating Rate Credit Linked Secured Notes due 2045-1 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa2, on review for possible downgrade -- Prior Rating Date: 10 November 2008 Issuer: KBC Investments Cayman Islands Ltd - Super Senior CDS Dorset Street Finance Limited (1) Super Senior Swap Dorset Street Finance Limited -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aa1, on review for possible downgrade -- Prior Rating Date: 30 October 2008 Issuer: Dorset Street Finance Limited (1) Class A1 Floating Credit Linked Notes -- Current Rating: Baa3, on review for possible downgrade -- Prior Rating: A3, on review for possible downgrade -- Prior Rating Date: 14 October 2008 (2) Class A2 Floating Credit Linked Notes -- Current Rating: Ba2, on review for possible downgrade -- Prior Rating: Baa2, on review for possible downgrade -- Prior Rating Date: 14 October 2008 (3) Class B Floating Credit Linked Notes -- Current Rating: Ba3, on review for possible downgrade -- Prior Rating: Baa3, on review for possible downgrade -- Prior Rating Date: 14 October 2008 (4) Class C Floating Credit Linked Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: B3, on review for possible downgrade -- Prior Rating Date: 14 October 2008 (5) Class D Floating Credit Linked Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa1, on review for possible downgrade -- Prior Rating Date: 14 October 2008 (6) Class E Floating Credit Linked Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa2, on review for possible downgrade -- Prior Rating Date: 14 October 2008 Issuer: Dublin Oak Ltd. (1) US$207,000,000 Class A Credit-Linked Notes due 2086-1 -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: A2, on review for possible downgrade -- Prior Rating Date: 06 August 2008 (2) US$90,000,000 Class B Credit-Linked Notes due 2086 -- Current Rating: Ba1, on review for possible downgrade -- Prior Rating: Baa1, on review for possible downgrade -- Prior Rating Date: 06 August 2008 (3) US$2,700,000,000 Super Senior Swap -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 30 July 2007 Issuer: Eirles Two Limited Series 176 (1) Series 176 US$20,000,000 Floating Rate Portfolio Credit Linked Secured Notes due 2040 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 06 May 2005 (2) Series 176 US$17,000,000 Floating Rate Portfolio Credit Linked Secured Notes due 2040 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 17 June 2005 Issuer: Eirles Two Limited Series 181 (1) Series 181 US$50,000,000 Floating Rate Portfolio Credit Linked Secured Notes due 2045 -- Current Rating: A3, on review for possible downgrade -- Prior Rating: Aa3, on review for possible downgrade -- Prior Rating Date: 08 May 2008 Issuer: Eirles Two Limited Series 198 (1) Series 198 EUR25,000,000 Floating Rate Portfolio Credit Linked Secured Notes due 2093 -- Current Rating: Baa1, on review for possible downgrade -- Prior Rating: A1 -- Prior Rating Date: 11 August 2005 Issuer: Eirles Two Limited Series 273 & 274 (1) Series 273 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa2, on review for possible downgrade -- Prior Rating Date: 23 May 2008 Issuer: Eirles Two Limited Series 300 (1) Series 300 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa2, on review for possible downgrade -- Prior Rating Date: 15 April 2008 Issuer: ELM B.V. - LABS Series 2007-1 (1) EUR50,000,000 Series 2007-1 - LABS due 2027 -- Current Rating: A3, on review for possible downgrade -- Prior Rating: Aa3 -- Prior Rating Date: 29 March 2007 Issuer: ELM B.V. - Series 57 - Leveraged Asset Backed Securities 2006-3 (1) EUR22,500,000 Floating Rate Credit Linked Secured Notes due 2026 -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: A2 -- Prior Rating Date: 04 July 2006 Issuer: ELM B.V. - Series 79 - Leveraged Asset-Backed Securities 2006-4 (1) EUR22,500,000 Floating Rate Credit Linked Secured Notes due 2026 -- Current Rating: A3, on review for possible downgrade -- Prior Rating: Aa3 -- Prior Rating Date: 14 July 2006 Issuer: ELM B.V. Series 118 LABS 2007-3 (1) Series 118 Variable Coupon Leveraged Asset Backed Securities 2007-3 due 2027 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 17 December 2007 Issuer: ELM B.V. Series 41 (1) EUR84,000,000 Floating Rate Credit Linked Secured Notes due 2056 -- Current Rating: A3, on review for possible downgrade -- Prior Rating: Aa3 -- Prior Rating Date: 21 March 2006 Issuer: ELM B.V. Series 48 - Leveraged Asset Backed Securities 2006-2 (1) EUR22,500,000 Floating Rate Credit Linked Secured Notes due 2056 -- Current Rating: A3, on review for possible downgrade -- Prior Rating: Aa3 -- Prior Rating Date: 04 July 2006 Issuer: FAB CBO 2005-1 B.V. (1) Class A1 Floating Rate Notes -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa, on review for possible downgrade -- Prior Rating Date: 25 November 2008 (2) Class A2 Floating Rate Notes -- Current Rating: Ba2, on review for possible downgrade -- Prior Rating: Baa2, on review for possible downgrade -- Prior Rating Date: 25 November 2008 Issuer: Faxtor HG 2007-1 (1) Class A-1M Floating Rate Delayed Draw Secured Notes due 2049 -- Current Rating: B1, on review for possible downgrade -- Prior Rating: Ba1, on review for possible downgrade -- Prior Rating Date: 09 April 2008 Issuer: G Square Finance 2007-1 Ltd (1) Class A-1 Senior Secured Floating Rate Notes due 2052 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa1, on review for possible downgrade -- Prior Rating Date: 01 July 2008 Issuer: Gennaker I CDO Limited (1) US$521,700,000 Class A-1A Floating Rate Notes Due 2045 -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aa1, on review for possible downgrade -- Prior Rating Date: 01 December 2008 (2) US$0 Class A-1B Floating Rate Notes Due 2045 -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aa1, on review for possible downgrade -- Prior Rating Date: 01 December 2008 (3) US$25,800,000 Class A-2 Floating Rate Notes Due 2045 -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: A2, on review for possible downgrade -- Prior Rating Date: 01 December 2008 (4) US$12,900,000 Class B Floating Rate Notes Due 2045 -- Current Rating: B1, on review for possible downgrade -- Prior Rating: Ba1, on review for possible downgrade -- Prior Rating Date: 01 December 2008 (5) US$13,560,000 Class C Deferrable Floating Rate Notes Due 2045 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa1, on review for possible downgrade -- Prior Rating Date: 01 December 2008 Issuer: Hanover Street Finance Limited (1) Class A1 Floating Rate Credit-Linked Notes -- Current Rating: Baa1, on review for possible downgrade -- Prior Rating: A1, on review for possible downgrade -- Prior Rating Date: 14 October 2008 (2) Class A2 Floating Rate Credit-Linked Notes -- Current Rating: Baa3, on review for possible downgrade -- Prior Rating: A3, on review for possible downgrade -- Prior Rating Date: 14 October 2008 (3) Class B Floating Rate Credit-Linked Notes -- Current Rating: Ba3, on review for possible downgrade -- Prior Rating: Baa3, on review for possible downgrade -- Prior Rating Date: 14 October 2008 (4) Class C Floating Rate Credit-Linked Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: B3, on review for possible downgrade -- Prior Rating Date: 14 October 2008 (5) Class D Floating Rate Credit-Linked Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa2, on review for possible downgrade -- Prior Rating Date: 14 October 2008 (6) Class E Floating Rate Credit-Linked Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa2, on review for possible downgrade -- Prior Rating Date: 14 October 2008 Issuer: Isara - Astir B.V. Series 18 (1) Series 18 Class A2 EUR30,000,000 Floating Rate Variable Coupon Amount Credit Linked Notes due 2019 -- Current Rating: Ba1, on review for possible downgrade -- Prior Rating: Baa1, on review for possible downgrade -- Prior Rating Date: 25 November 2008 Issuer: Lagonda CDO (1) EUR30,000,000 Lagonda CDO CDS -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 18 January 2007 (2) EUR135,000,000 Lagonda CDO CDS Super Senior Tranche -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 27 April 2007 Issuer: Logan CDO II Limited (1) Super Senior Swap -- Current Rating: Caa1, on review for possible downgrade -- Prior Rating: B1, on review for possible downgrade -- Prior Rating Date: 18 June 2008 Issuer: Lunar Funding V plc - Series 36 & 37 (1) Series 2007-36 Notes due 2052 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa2, on review for possible downgrade -- Prior Rating Date: 18 June 2008 Issuer: Mainsail CDO I Limited (1) Mainsail CDO I Ltd - jr. super senior tranche #1 -- Current Rating: Caa1, on review for possible downgrade -- Prior Rating: B1, on review for possible downgrade -- Prior Rating Date: 11 July 2008 Issuer: Mill Reef SCDO 2005-1 LTD (1) Super Senior Swap -- Current Rating: Ba1, on review for possible downgrade -- Prior Rating: A1, on review for possible downgrade -- Prior Rating Date: 11 August 2008 (2) Class A-1L -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa1, on review for possible downgrade -- Prior Rating Date: 11 August 2008 (3) Class X -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa1, on review for possible downgrade -- Prior Rating Date: 11 August 2008 Issuer: New Bond Street CDO 1 plc (1) US$2,500,000 Class X Floating Rate Notes due 2015 -- Current Rating: Aaa, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 18 July 2006 (2) US$700,000,000 Class A1 Floating Rate Delayed Draw Notes due 2066 -- Current Rating: Baa3, on review for possible downgrade -- Prior Rating: A3, on review for possible downgrade -- Prior Rating Date: 10 October 2008 Issuer: New Bond Street CDO 2 plc (1) US$1,750,000 Class X Floating Rate Notes due 2015 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa, on review for possible downgrade -- Prior Rating Date: 10 October 2008 Issuer: North Sea Island CDO I Limited (1) Series of Class A Floating Rate Notes Due September 2095 -- Current Rating: B2, on review for possible downgrade -- Prior Rating: Ba2, on review for possible downgrade -- Prior Rating Date: 28 November 2008 Issuer: Omega Capital Europe p.l.c. Series 41 (Sycamore) (1) Class A Notes -- Current Rating: B2, on review for possible downgrade -- Prior Rating: Ba2, on review for possible downgrade -- Prior Rating Date: 23 May 2008 (2) Class A-Bis Notes -- Current Rating: B2, on review for possible downgrade -- Prior Rating: Ba2, on review for possible downgrade -- Prior Rating Date: 23 May 2008 (3) Class A-J Notes -- Current Rating: B2, on review for possible downgrade -- Prior Rating: Ba2, on review for possible downgrade -- Prior Rating Date: 23 May 2008 (4) Class B Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa1, on review for possible downgrade -- Prior Rating Date: 23 May 2008 (5) Class B-Fixed Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa1, on review for possible downgrade -- Prior Rating Date: 23 May 2008 (6) Class B-U Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa1, on review for possible downgrade -- Prior Rating Date: 23 May 2008 (7) Class B-J Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa1, on review for possible downgrade -- Prior Rating Date: 23 May 2008 (8) Class C Notes -- Current Rating: Caa1, on review for possible downgrade -- Prior Rating: B1, on review for possible downgrade -- Prior Rating Date: 23 May 2008 Issuer: Omega Capital Europe p.l.c. Series 46 (Sycamore Series 2) (1) Class A Notes -- Current Rating: B2, on review for possible downgrade -- Prior Rating: Ba2, on review for possible downgrade -- Prior Rating Date: 11 September 2008 (2) Class C Notes -- Current Rating: Caa2, on review for possible downgrade -- Prior Rating: B2, on review for possible downgrade -- Prior Rating Date: 11 September 2008 Issuer: Omega Capital Europe plc Series 50 (Sycamore Series 3-Bis Pf1) (1) Class AE-10 Notes -- Current Rating: Ba1 -- Prior Rating: Aa3, on review for possible downgrade -- Prior Rating Date: 14 August 2008 (2) Class CE-10 Notes -- Current Rating: B3 -- Prior Rating: Baa3, on review for possible downgrade -- Prior Rating Date: 14 August 2008 Issuer: Oxford Street Finance Limited (1) Class A1 -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: A2, on review for possible downgrade -- Prior Rating Date: 24 November 2008 (2) Class A2 -- Current Rating: Ba1, on review for possible downgrade -- Prior Rating: Baa1, on review for possible downgrade -- Prior Rating Date: 24 November 2008 (3) Class B -- Current Rating: Ba3, on review for possible downgrade -- Prior Rating: Baa3, on review for possible downgrade -- Prior Rating Date: 24 November 2008 (4) Class C -- Current Rating: B2, on review for possible downgrade -- Prior Rating: Ba2, on review for possible downgrade -- Prior Rating Date: 24 November 2008 (5) Class D -- Current Rating: Caa2, on review for possible downgrade -- Prior Rating: B2, on review for possible downgrade -- Prior Rating Date: 24 November 2008 (6) Class E -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa2, on review for possible downgrade -- Prior Rating Date: 24 November 2008 Issuer: Palmer Square 2 plc (1) Class X Floating Rate Notes due 2045 -- Current Rating: Aaa, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 26 October 2005 (2) Class A1-M Floating Rate Notes due 2045 -- Current Rating: Caa2, on review for possible downgrade -- Prior Rating: B2, on review for possible downgrade -- Prior Rating Date: 20 November 2008 (3) Class A1-Q Floating Rate Notes due 2045 -- Current Rating: Caa2, on review for possible downgrade -- Prior Rating: B2, on review for possible downgrade -- Prior Rating Date: 20 November 2008 Issuer: Palmer Square plc (1) Class A1-A Floating Rate Notes due 2045 -- Current Rating: Baa3, on review for possible downgrade -- Prior Rating: A3, on review for possible downgrade -- Prior Rating Date: 07 November 2008 (2) Class A1-A Exchange Offer Floating Rate Notes due 2045 -- Current Rating: Baa3, on review for possible downgrade -- Prior Rating: A3, on review for possible downgrade -- Prior Rating Date: 07 November 2008 Issuer: Panther CDO III B.v. (1) Class A Senior Secured Floating Rate Notes due December 2080 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 22 September 2005 (2) Class B Senior Secured Deferrable Floating Rate Notes due December2080 -- Current Rating: A2, on review for possible downgrade -- Prior Rating: Aa2 -- Prior Rating Date: 22 September 2005 (3) Class C1 Senior Secured Deferrable Floating Rate Notes due December 2080 -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: A2 -- Prior Rating Date: 22 September 2005 (4) Class C2 Senior Secured Deferrable Fixed Rate Notes due December 2080 -- Current Rating: Baa2 -- Prior Rating: A2 -- Prior Rating Date: 22 September 2005 (5) Class P Combination Notes due December 2080 -- Current Rating: B2, on review for possible downgrade -- Prior Rating: Ba2 -- Prior Rating Date: 22 September 2005 Issuer: Pembridge Square Finance Limited (1) EUR17,000,000 Class A1 Floating Rate Credit Linked Notes -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: A2, on review for possible downgrade -- Prior Rating Date: 14 October 2008 (2) EUR80,000,000 Class A2 Floating Rate Credit Linked Notes -- Current Rating: Baa3, on review for possible downgrade -- Prior Rating: A3, on review for possible downgrade -- Prior Rating Date: 14 October 2008 (3) EUR70,000,000 Class B Floating Rate Credit Linked Notes -- Current Rating: B1, on review for possible downgrade -- Prior Rating: Ba1, on review for possible downgrade -- Prior Rating Date: 14 October 2008 (4) EUR60,000,000 Class C Floating Rate Credit Linked Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: B3, on review for possible downgrade -- Prior Rating Date: 14 October 2008 (5) EUR50,000,000 Class D Floating Rate Credit Linked Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa1, on review for possible downgrade -- Prior Rating Date: 14 October 2008 Issuer: Regent Street Finance Limited (1) Class A1 Floating Rate Credit-Linked Notes -- Current Rating: A2, on review for possible downgrade -- Prior Rating: Aa2, on review for possible downgrade -- Prior Rating Date: 14 October 2008 (2) Class A2 Floating Rate Credit-Linked Notes -- Current Rating: Baa1, on review for possible downgrade -- Prior Rating: A1, on review for possible downgrade -- Prior Rating Date: 14 October 2008 (3) Class B Floating Rate Credit-Linked Notes -- Current Rating: Baa3, on review for possible downgrade -- Prior Rating: A3, on review for possible downgrade -- Prior Rating Date: 14 October 2008 (4) Class C Floating Rate Credit-Linked Notes -- Current Rating: Ba3, on review for possible downgrade -- Prior Rating: Baa3, on review for possible downgrade -- Prior Rating Date: 14 October 2008 (5) Class D Floating Rate Credit-Linked Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: B3, on review for possible downgrade -- Prior Rating Date: 14 October 2008 (6) Class E Floating Rate Credit-Linked Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa2, on review for downgrade -- Prior Rating Date: 14 October 2008 (7) Class F Floating Rate Credit-Linked Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa2, on review for downgrade -- Prior Rating Date: 14 October 2008 Issuer: Renoir CDO B.V. (1) Class A Floating Rate Notes -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 19 April 2005 (2) Class B Deferrable Floating rate Notes -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aa1 -- Prior Rating Date: 19 April 2005 (3) Class C Deferrable Floating Rate Notes -- Current Rating: Baa1, on review for possible downgrade -- Prior Rating: A1 -- Prior Rating Date: 19 April 2005 (4) Class D-2 Deferrable Floating Rate Notes -- Current Rating: Ba3, on review for possible downgrade -- Prior Rating: Baa3 -- Prior Rating Date: 19 April 2005 (5) Class D-1 Deferrable Fixed Rate Notes -- Current Rating: Ba3, on review for possible downgrade -- Prior Rating: Baa3 -- Prior Rating Date: 19 April 2005 (6) Combination Notes -- Current Rating: B2, on review for possible downgrade -- Prior Rating: Ba2 -- Prior Rating Date: 19 April 2005 Issuer: Royal Bank of Canada, London Branch - Logan CDO III Tranche SS (1) Royal Bank of Canada London Logan CDO III -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa2, on review for possible downgrade -- Prior Rating Date: 09 September 2008 Issuer: Salisbury International Investments Limited (1) Series 2005-10 - US$18,750,000 Class C Secured Floating Rate Portfolio Linked Notes due 2025 -- Current Rating: Caa1, on review for possible downgrade -- Prior Rating: B1, on review for possible downgrade -- Prior Rating Date: 08 May 2008 (2) Series 2005- 11 - US$18,750,000 Class C Secured Floating Rate Portfolio Linked Notes due 2025 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa2, on review for possible downgrade -- Prior Rating Date: 08 May 2008 (3) Series 2005- 12 - US$18,750,000 Class C Secured Floating Rate Portfolio Linked Notes due 2025 -- Current Rating: Caa2, on review for possible downgrade -- Prior Rating: B2, on review for possible downgrade -- Prior Rating Date: 08 May 2008 (4) Series 2005- 13 - US$18,750,000 Class C Secured Floating Rate Portfolio Linked Notes due 2025 -- Current Rating: Caa2, on review for possible downgrade -- Prior Rating: B2, on review for possible downgrade -- Prior Rating Date: 08 May 2008 Issuer: Salisbury International Investments Ltd - Series 2006-1 (1) US$41,000,000 Class M-2 Secured Floating Rate Portfolio Credit Linked Notes due 2046 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa2, on review for downgrade -- Prior Rating Date: 13 March 2008 Issuer: SGA Societe Generale Acceptance N.V. - Voltaire Credit- Linked Notes (1) Series 9945/05-12 Tranche 1 Voltaire Floating Rate Credit- Linked Note -- Current Rating: Ba2, on review for possible downgrade -- Prior Rating: Baa2 -- Prior Rating Date: 19 December 2005 Issuer: Sheffield CDO, Ltd. (1) Class S Senior Secured Floating Rate Notes due 2041 -- Current Rating: Aaa, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 26 April 2006 (2) Class A-1 Senior Secured Floating Rate Notes due 2041 -- Current Rating: Aa2, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 26 April 2006 (3) Class A-1D Delayed Draw Senior Secured Floating Rate Note due 2041 -- Current Rating: Aa2, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 26 April 2006 (4) Class A-2 Senior Secured Floating Rate Notes due 2041 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 23 October 2008 (5) Class B Senior Secured Floating Rate Notes due 2041 -- Current Rating: A2, on review for possible downgrade -- Prior Rating: Aa2 -- Prior Rating Date: 23 October 2008 (6) Class C Deferrable Interest Secured Floating Rate Notes due 2041 -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: A2, on review for downgrade -- Prior Rating Date: 13 December 2007 (7) Class D Deferrable Interest Secured Floating Rate Notes due 2041 -- Current Rating: B1, on review for possible downgrade -- Prior Rating: Ba1, on review for possible downgrade -- Prior Rating Date: 23 October 2008 (8) Class T Combination Notes due 2041 -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: A2, on review for possible downgrade -- Prior Rating Date: 23 October 2008 Issuer: Sierra Valley 2007-1 (1) Claris Ltd Series 111/2007 Sierra Valley 2007-1 -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: A2 -- Prior Rating Date: 05 September 2007 (2) Claris Ltd Series 112/2007 Sierra Valley 2007-1 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 05 September 2007 (3) Claris Ltd Series 113/2007 Sierra Valley 2007-1 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 05 September 2007 Issuer: Soci�t� G�n�rale - Credit Default Swap (Millesime 2007-2 portfolio) (1) Credit default swap ref EXO-1224830 -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: A2 -- Prior Rating Date: 30 March 2007 Issuer: Soci�t� G�n�rale - Credit Default Swap (Millesime 2007-3 portfolio) (1) Credit Default Swap Ref: EXO-1359959 -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: A2 -- Prior Rating Date: 25 July 2007 Issuer: Soci�t� G�n�rale - Credit Default Swap (Napa Valley IX portfolio) (1) Credit Default Swap -- Current Rating: Ba3, on review for possible downgrade -- Prior Rating: Baa3, on review for possible downgrade -- Prior Rating Date: 16 June 2008 Issuer: Societe Generale Securities - Napa Valley VI (1) Napa Valley VI Credit Default Swap -- Current Rating: Ba2, on review for possible downgrade -- Prior Rating: Baa2, on review for possible downgrade -- Prior Rating Date: 07 May 2008 Issuer: Sonoma Valley 2006-2 (1) Series 83 EUR8,000,000 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 07 March 2007 (2) Series 84 US$7,000,000 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 07 March 2007 (3) Series 86 US$40,000,000 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 07 March 2007 Issuer: Sonoma Valley 2007-2 (1) Series 95/2007 Tranche II EUR40,000,000 Sonoma Valley 2007-2 Synthetic CDO of CMBS Variable Notes due 2046 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 04 May 2007 (2) Series 90/2007 EUR25,000,000 Sonoma Valley 2007-2 Synthetic CDO of CMBS Variable Notes due 2046 -- Current Rating: A3, on review for possible downgrade -- Prior Rating: Aa3 -- Prior Rating Date: 05 April 2007 (3) Series 95/2007 Tranche 1 EUR15,000,000 Sonoma Valley 2007-2 Synthetic CDO of CMBS Variable Notes due 2046 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 05 April 2007 Issuer: Sonoma Valley 2007-3 Series 104-105-106 (1) Series 104/2007 TRANCHE 1 EUR10,000,000 Sonoma Valley 2007 3 Synthetic CDO of CMBS Variable Notes due 2049-1 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 28 June 2007 (2) Series 105/2007 TRANCHE 1 US$31,500,000 Sonoma Valley 2007 3 Synthetic CDO of CMBS Variable Notes due 2049-2 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 28 June 2007 (3) Series 106/2007 TRANCHE 1 US$15,000,000 Sonoma Valley 2007 3 Synthetic CDO of CMBS Variable Notes due 2049-3 -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aa1 -- Prior Rating Date: 28 June 2007 Issuer: Stanton ABS I p.l.c. (1) EUR232,000,000 Class A-1 Notes due 2096 -- Current Rating: Aa2, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 19 May 2005 (2) EUR23,000,000 Class A-2 Notes due 2096 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 19 May 2005 (3) EUR12,500,000 Class A-3 Notes due 2096 -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aa1 -- Prior Rating Date: 19 May 2005 (4) EUR12,500,000 Class A-4 Deferrable Interest Notes due 2096 -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: A2 -- Prior Rating Date: 19 May 2005 (5) EUR12,000,000 Class B-1 Deferrable Interest Notes due 2096 -- Current Rating: Ba3, on review for possible downgrade -- Prior Rating: Baa3 -- Prior Rating Date: 19 May 2005 Issuer: Stanton Vintage CDO P.L.C. (1) Class A Senior Floating Rate Notes due in 2048 -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aa1, on review for possible downgrade -- Prior Rating Date: 23 October 2008 (2) Class B Deferrable Floating Rate Notes due 2048 -- Current Rating: A2, on review for possible downgrade -- Prior Rating: Aa2, on review for possible downgrade -- Prior Rating Date: 13 December 2007 (3) Class C Deferrable Floating Rate Notes due 2048 -- Current Rating: B1, on review for possible downgrade -- Prior Rating: Ba1, on review for possible downgrade -- Prior Rating Date: 23 October 2008 (4) Class D Deferrable Floating Rate Notes due 2048 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa2, on review for possible downgrade -- Prior Rating Date: 23 October 2008 (5) Class P Combination Notes due 2048 -- Current Rating: Caa1, on review for possible downgrade -- Prior Rating: B1, on review for possible downgrade -- Prior Rating Date: 23 October 2008 Issuer: Sydney Street Finance Limited (1) Class A-1 -- Current Rating: Ba2, on review for possible downgrade -- Prior Rating: Baa2, on review for possible downgrade -- Prior Rating Date: 24 November 2008 (2) Class A-2 -- Current Rating: Ba3, on review for possible downgrade -- Prior Rating: Baa3, on review for possible downgrade -- Prior Rating Date: 24 November 2008 (3) Class B -- Current Rating: B3, on review for possible downgrade -- Prior Rating: Ba3, on review for possible downgrade -- Prior Rating Date: 24 November 2008 (4) Class C -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: B3, on review for possible downgrade -- Prior Rating Date: 24 November 2008 (5) Class D -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa2, on review for possible downgrade -- Prior Rating Date: 24 November 2008 Issuer: TABS 2005-02 Oakville (1) US$263,000,000 Class A-1 Senior Secured Floating Rate Notes due 2045 -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aa1, on review for possible downgrade -- Prior Rating Date: 26 June 2008 (2) US$28,400,000 Class A-2 Senior Secured Floating Rate Notes due 2045 -- Current Rating: Caa1, on review for possible downgrade -- Prior Rating: B1, on review for possible downgrade -- Prior Rating Date: 26 June 2008 Issuer: UBS AG, Jersey Branch - eLevate Series 2007-1 (1) Adjustable Spread Leveraged Notes - eLevate Series 2007-1 -- Current Rating: Baa1, on review for possible downgrade -- Prior Rating: A1 -- Prior Rating Date: 30 May 2007 Issuer: UBS AG, Jersey Branch - eLevate Series 2007-2 (1) Adjustable Spread Leveraged Notes - eLevate Series 2007-2 -- Current Rating: A3, on review for possible downgrade -- Prior Rating: Aa3 -- Prior Rating Date: 22 August 2007 Issuer: UBS AG, Jersey Branch - LABS 2006-1 (1) EUR75,000,000 Leveraged Asset-backed Securities due 2056 -- Current Rating: Baa1, on review for possible downgrade -- Prior Rating: A1 -- Prior Rating Date: 06 June 2006 Issuer: UBS AG, Jersey Branch - Series 2005-1 (eLevate) (1) EUR22,500,000 Leveraged Notes (eLevate) Series 2005-1 -- Current Rating: Baa1, on review for possible downgrade -- Prior Rating: A1 -- Prior Rating Date: 21 December 2005 Issuer: UBS AG, London Branch - EUR 225,000,000 Syndicated Loan Facility to TREES (1) EUR225,000,000 Syndicated loan facility to TREES -- Current Rating: A3, on review for possible downgrade -- Prior Rating: Aa3 -- Prior Rating Date: 21 November 2006 Issuer: Zoo ABS II B.V. (1) Class X Senior Secured Floating Rate Notes due 2015 -- Current Rating: Aaa, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 22 December 2005 (2) Class A-1 Senior Secured Floating Rate Notes due 2096 -- Current Rating: Aa2, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 22 December 2005 (3) Class A-1D Delayed Draw Senior Secured Floating Rate Notes due 2096 -- Current Rating: Aa2, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 22 December 2005 (4) Class A-2 Senior Secured Floating Rate Notes due 2096 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 22 December 2005 (5) Class B Senior Secured Floating Rate Notes due 2096 -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aa1 -- Prior Rating Date: 22 December 2005 (6) Class C Deferrable Interest Secured Floating Rate Notes due 2096 -- Current Rating: Baa1, on review for possible downgrade -- Prior Rating: A1 -- Prior Rating Date: 22 December 2005 (7) Class D Deferrable Interest Secured Floating Rate Notes due 2096 -- Current Rating: Ba2, on review for possible downgrade -- Prior Rating: Baa2 -- Prior Rating Date: 22 December 2005 (8) Class E Deferrable Interest Secured Floating Rate Notes due 2096 -- Current Rating: B3, on review for possible downgrade -- Prior Rating: Ba3 -- Prior Rating Date: 22 December 2005 (9) Class P Combination Notes due 2096 -- Current Rating: Ba1, on review for possible downgrade -- Prior Rating: Baa1 -- Prior Rating Date: 22 December 2005 (10) Class Q Combination Notes due 2096 -- Current Rating: Baa3, on review for possible downgrade -- Prior Rating: A3 -- Prior Rating Date: 22 December 2005 (11) Class R Combination Notes due 2096 -- Current Rating: A3, on review for possible downgrade -- Prior Rating: Aa3 -- Prior Rating Date: 22 December 2005 * S&P Takes Rating Actions on 404 European Synthetic CDO Tranches ----------------------------------------------------------------- Standard & Poor's Ratings Services took credit rating actions on 404 European synthetic collateralized debt obligation tranches. Specifically, the ratings on: � 224 tranches were lowered; � 172 tranches were lowered and remain on CreditWatch negative; � Six tranches were raised; and � Two tranches were raised and remain on CreditWatch negative. Of the 396 tranches lowered: � Seven reference U.S. residential mortgage-backed securities and U.S. CDOs that are exposed to U.S. RMBS, which have experienced negative rating actions; and � 389 have experienced corporate downgrades in their portfolio. These actions do not reflect the effect from the downgrades of 12 major European and U.S. banks. S&P will consider the implications for European synthetic CDOs in next month's CreditWatch media release. The rating actions are part of S&P's regular monthly review of synthetic CDOs. These actions incorporate, among other things, the impact of recent rating migration within reference portfolios and recent credit events on several corporate entities. For transactions that have experienced these credit events, and where the final recovery is still to be determined S&P has assumed these recovery valuations: -- 91.51% for senior Fannie Mae debt and 99.90% for subordinated debt; -- 94% for senior Freddie Mac debt and 98% for subordinated debt; -- 8.625% for Lehman Brothers Inc. (Lehman debt);. -- 57% for Washington Mutual Inc. debt; -- 1.25% for senior Landsbanki Islands debt and 0.125% for subordinated debt; -- 3% for senior Glitnir debt and 0.1250% for subordinated debt; and -- 6.625% for senior Kaupthing debt and 2.375% for subordinated debt. The rating actions also reflect the new correlation assumptions for CDOs that have exposure to: -- Financial intermediaries; -- Insurance companies; and -- Real estate investment trusts and real estate operating companies. Rating Action Summary Downgrades Upgrades Key corporate (no. of (no. of downgrades* tranches) tranches) ---------- -------- ------------- Jan-08 57 8 United Parcel Service Inc. (AAA/Watch Neg to AA-/Stable) Jan. 9, 2008 Quebecor World Inc. (CCC/Watch Neg to D) Jan. 16, 2008 Feb-08 90 9 GMAC LLC (BB+/Negative to B+/Negative) Feb. 22, 2008 Residential Capital, LLC (BB+/Negative to B/Negative) Feb. 22, 2008 Mar-08 79 2 FGIC Corp. (BBB/Watch Neg to B/Negative) March 28, 2008 FGIC UK Ltd. (A/Watch Neg to BB/Negative) March 28, 2008 Apr-08 118 9 Royal Caribbean Cruises Ltd. (BBB-/Negative to BB+/Stable) April 3, 2008 Residential Capital, LLC (B/Negative to CCC+/Watch Neg) April 24, 2008 May-08 152 1 Countrywide Home Loans, Inc. (BBB+/Watch Pos to BB+/Watch Dev) May 2, 2008 Residential Capital, LLC (CCC+/Watch Neg to CC/Watch Neg) May 2, 2008 Jun-08 109 0 Ambac Assurance Corp. (AAA/Negative to AA/Watch Neg) June 5, 2008 MBIA Inc. (AA-/Negative to A-/Watch Neg) June 5, 2008 Jul-08 44 41 Radian Asset Assurance Inc. (AA/Watch Neg to A/Watch Neg) June 16, 2008 Countrywide Home Loans, Inc. (BB+/Watch Dev to AA/Negative) July 1, 2008 Aug-08 75 27 Residential Capital, LLC (SD to CCC+/Negative) July 15, 2008 Louisiana-Pacific Corp. (BBB-/Negative to BB+/Watch Neg) July 29, 2008 Sep-08 38 0 Radian Group Inc. (BBB/Watch Neg to BB+/Negative) Aug. 26, 2008 PMI Group Inc. (BBB+/Negative to BBB-/Watch Neg) Aug. 26, 2008 Oct�08 77 0 Lehman Brothers Inc. (A+/Negative to A+/Watch Neg) Sept. 9, 2008 (A+/Watch Neg to BB-/Watch Dev) Sept. 15, 2008 (BB-/Watch Dev to D) Sept. 23, 2008 Washington Mutual, Inc. (BBB-/Negative to BB-/Negative) Sept. 15, 2008 (BB-/Negative to CCC/Negative) Sept. 24, 2008 (CCC/Negative to D) Sept. 26, 2008 American International Group (AA-/Watch Neg to A-/Watch Neg) Sept. 15, 2008 Nov�08 791 0 Fortis N.V. (A-/Developing to BBB-/Watch Neg) Oct. 6, 2008 Glitnir Bank (CCC/Watch Neg to D) Oct. 9, 2008 Dec-08 396 8 Residential Capital, LLC (CCC-/Negative to CC/Watch Neg) Nov. 20, 2008 Financial Guaranty Insurance Co. (BB/Watch Neg to CCC/Negative) Nov. 24, 2008 Clear Channel Communications Inc (B to CC) Dec. 5, 2008 * Those corporate names that have experienced a significant notch downgrade, as well as being highly referenced within European synthetic CDOs. For those transactions that have been on CreditWatch negative for longer than 90 days, where S&P has either not received material levels of information or relative portfolio credit quality has not improved since the CreditWatch placement to a level sufficient to affirm the rating, S&P has modeled recovery rates in accordance with S&P's criteria and assessed portfolio quality based on its credit quality. These rating actions and the CreditWatch updates follow two reviews. The first review was of the CreditWatch placements made on Dec. 12, 2008. For the second review, where SROC (synthetic rated overcollateralization) is less than 100%, S&P run scenarios that project the current portfolio 90 days into the future, assuming no asset rating migration. Where this projection indicates that the SROC would return to a level above 100% at that time, the rating is maintained, and it remains on CreditWatch negative. If, on the other hand, the projection indicates that the SROC would remain below 100%, S&P lower the rating. * Gov't Loans Can Convert into DIP Facility for GM & Chrysler ------------------------------------------------------------- "Upon the filing of a voluntary or involuntary bankruptcy petition by or in respect to" Chrysler or General Motors, the U.S. Treasury Department "shall have the exclusive right, exercisable at its option, to convert" the government loans scheduled to close on Dec. 29, 2008, "into a debtor-in-possession facility," according to the term sheets released by the Treasury Department on Fri., Dec. 19. As widely reported, the White House announced Friday that the Treasury Department will extend a US$9.4 billion secured loan to GM and a US$4.0 billion secured loan to Chrysler from available Troubled Asset Relief Program funds. Another US$4.0 billion will be made available to GM if the Congress approves the transfer of US$350 billion to the TARP. The loans, to the extent legally and contractually permissible, will be secured by first-priority liens on all unencumbered assets, and junior liens on all encumbered assets. GM indicated in testimony before the Congress that its unencumbered assets are its trademarks and equity interests in foreign subsidiaries. Chrysler told the Congress all of its assets are fully encumbered; Chrysler's finance affiliates will guarantee US$2.0 billion of Chrysler's borrowings. Feb. 17 Restructuring Plan By Feb. 17, 2009, the automakers are required to submit to the President's Designee a plan to achieve and sustain the long-term viability, international competitiveness and energy efficiency of the Company and its subsidiaries. That Restructuring Plan must include specific actions intended to result in: (1) Repayment of the Loan Amount and any other financing extended by the Government under all applicable terms and conditions; (2) Ability of the Company and its subsidiaries to (x) comply with applicable Federal fuel efficiency and emissions requirements, and (y) commence domestic manufacturing of advanced technology vehicles, as described in section 136 of the Energy Independence and Security Act of 2007 (Public Law 110-140; 42 U.S.C. 17013); (3) Achievement by the Company and its subsidiaries of a positive net present value, using reasonable assumptions and taking into account all existing and projected future costs, including repayment of the Loan Amount and any other financing extended by the Government; (4) Rationalization of costs, capitalization, and capacity with respect to the manufacturing workforce, suppliers and dealerships of the Company and its subsidiaries; and (5) A product mix and cost structure that is competitive in the United States marketplace. Debt, Wage & VEBA Cuts Additionally, the automakers must use their best efforts to achieve these targets: (A) Reduction of their outstanding unsecured public indebtedness (other than with respect to pension and employee benefits obligations) by not less than two-thirds through conversion of existing public debt into equity or debt and other appropriate means; (B) Reduction of the total amount of compensation, including wages and benefits, paid to their U.S. employees so that, by no later than December 31, 2009, the average of such total amount, per hour and per person, is an amount that is equal to the average total amount of such compensation, as certified by the Secretary of Labor, paid per hour and per person to employees of with Nissan Motor Company, Toyota Motor Corporation, or American Honda Motor Company whose site of employment is in the United States; (C) Elimination of the payment of any compensation or benefits to U.S. employees of the Company or any subsidiary who have been fired, laid-off, furloughed, or idled, other than customary severance pay. (D) Application of the work rules to their U.S. employees, beginning not later than December 31, 2009, in a manner that is competitive with Nissan Motor Company, Toyota Motor Corporation, or American Honda Motor Company whose site of employment is in the United States; and (E) Provision that not less than one-half of the value of each future payment or contribution made by them to the account of the voluntary employees beneficiary association (or similar account) (VEBA) of a labor organization representing the employees of the Company and its subsidiaries shall be made in the form of the stock of the Company or one of its subsidiaries, and the total value of any such payment or contribution shall not exceed the amount of any such payment or contribution that was required for such time period under the collective bargaining agreement that applied as of the day before the Closing Date. Mar. 31 Certification By Mar. 31, 2009, the automakers must submit to the President's Designee a written certification and report detailing the progress they've made in implementing their Restructuring Plans. The report shall identify any deviations from the Restructuring Targets and explain the rationale for these deviations, including an explanation of why such deviations do not jeopardize the Borrower's long-term viability. The report shall also include evidence satisfactory to the President's Designee that these events have occurred: (1) Approval of the Labor Modifications by the members of the Unions; (2) Receipt of all necessary approvals of the VEBA Modifications other than regulatory and judicial approvals, provided that the Company must have filed and be diligently prosecuting applications for any necessary regulatory and judicial approvals; and (3) The commencement of an exchange offer to implement the Bond Exchange. Full-text copies of the 15-page Term Sheets released by the Treasury Department are available at no charge at: General Motors -- http://bankrupt.com/misc/GMTermSheet.pdf -- and -- Chrysler -- http://bankrupt.com/misc/ChryslerTermSheet.pdf American Bankruptcy Institute has noted that Prof. Todd Zywicki told The Wall Street Journal that a chapter 11 filing by the Detroit automakers will likely result in a stronger domestic industry. Prof. Zywicki is Professor of Law at George Mason University School of Law and Senior Fellow of the James Buchanan Center, Program on Politics, Philosophy, and Economics, at George Mason University. * Large Companies with Insolvent Balance Sheet ---------------------------------------------- Shareholders Total Working Equity Assets Capital Ticker (US$MM) (US$MM) (US$MM) ------ ----------- ------- -------- AUSTRIA ------- Libro AG (110) 174 (168) Sky Europe (4) 213 (54) BELGIUM ------- Sabena S.A. (85) 2,215 (279) CYPRUS ------ Allbury Travel (5) 275 (100) Libra Holidays (5) 275 (100) CZECH REPUBLIC -------------- Ceskomoravska Kolben & Danek Praha Holding (89) 192 (59) Setuza A.S. (61) 139 (62) DENMARK ------- Elite Shipping (28) 101 3 Roskilde Bank (533) 7,877 N.A. FRANCE ------ BSN Glasspack (101) 1,151 159 Grande Paroisse S.A. (927) 629 347 Immob Hoteliere (67) 301 (17) Lab Dosilos (28) 110 (44) Matussiere et Forest S.A. MTF (78) 294 (38) Pagesjaunes GRP PAJ (3,023) 1,377 (453) Rhodia SA (342) 6,507 712 SDR Centrest (132) (252) N.A. Selcodis S.A. SPVX (21) 141 (36) Trouvay Cauvin (0) 134 9 GERMANY ------- Alno AG ANO (21) 340 (88) Brokat AG (27) 144 109 CBB Holding AG COB (43) 905 N.A. Cinemaxx AG MXC (38) 178 (47) Dortmunder Actien-Brauerei DABG (13) 118 (27) EECH Group AG 0 109 57 EM.TV AG EV4G.BE (22) 849 19 Kaufring AG KAUG (19) 151 (48) Kunert AG (28) 102 29 Maternus Kliniken AG MAK.F (17) 182 (99) Nordsee AG (8) 195 (14) P & T Technology 0 109 57 Primacom AG PRC (14) 730 (68) Rinol AG 0 168 (6) Sander AG (6) 128 32 Sinnleffers AG (4) 454 (182) Spar Handels- AG SPAG (442) 1,433 (294) TA Triumph-Adler TWN (66) 484 (77) Vivanco Gruppe (10) 131 28 GREECE ------ Empedos SA (34) 175 (57) Noussa Spin (11) 450 (107) Petzetakis-PFC PETZP (15) 294 (143) Radio A.Korassidis KORA (101) 181 (165) Commercial Themeliodome (56) 232 (128) United Textiles (11) 450 (107) HUNGARY ------- Brodograde Indus (322) 264 (366) IPK Osijek DD OS (15) 124 (82) OT Optima Teleko (26) 119 7 ICELAND ------- Decode Genetics (187) 111 48 IRELAND ------- Elan Corp PLC ELN (388) 1,599 705 Waterford Wed Ut WTFU (506) 821 364 ITALY ----- Binda S.p.A. BND (11) 129 (23) Cirio Finanziaria S.p.A. (422) 1,583 N.A. Gruppo Coin S.p.A. GC (152) 791 (61) Compagnia Italia ICT (138) 527 (318) Credito Fondiario e Industriale S.p.A. (200) 4,213 N.A. Fullsix (4) 114 (18) I Viaggi del Ventaglio S.p.A. VVE (73) 540 (127) Lazzio S.p.A. (15) 261 (40) Olcese S.p.A. OLCI.MI (13) 180 (80) Parmalat Finanziaria S.p.A. (18,4219) 4,121 (16,919) Snia S.p.A. SN (25) 488 31 Technodiffusione Italia S.p.A. TDIFF.PK (90) 152 (30) LUXEMBOURG ---------- Carrier1 International S.A. (95) 472 393 NETHERLANDS ----------- Baan Company N.V. BAAN (8) 610 46 James Hardie Ind. (238) 2,357 184 United Pan-Euro Air UPC (5,505) 5,113 (9,170) NORWAY ------ Interoil Exploration IOX (25) 210 (11) Petroleum-Geo Services PGO (18) 400 (758) POLAND ------ Toora (289) 147 (86) PORTUGAL -------- Lisgrafica Impressao e Artes Graficas SA LIG (4) 117 (27) ROMANIA ------- Oltchim RM Valce OLT (7) 673 (170) Rafo Onesti RAF (430) 353 (616) RUSSIA ------ Akcionernoe Brd (117) 135 (24) East Siberia Brd VSNK (113) 148 (11) Gukovugol (58) 144 (148) OAO Samaraneftegas (332) 892 (611) Vanadiy-Tula-Brd (12) 105 (3) Vimpel Ship SOVP (116) 135 (24) Zil Auto ZILLP (240) 478 (447) SWITZERLAND ----------- Fortune Management (119) 265 (54) TURKEY ------ Egs Ege Giyim VE (7) 147 (25) Iktisat Financial (46) 108 N.A. Mudurnu Tavukcul (65) 160 (115) Nergis Holding (77) 299 38 Sifas (17) 117 21 Yasarbank (4,025) 2,644 N.A. UKRAINE ------- Dniprooblenergo DNON (51) 433 (200) Donetskoblenergo DOON (367) 631 (469) UNITED KINGDOM -------------- Advance Display (3,016) 2,590 (411) Airtours Plc (379) 1,818 (932) Alldays Plc (120) 252 (290) Amer Bus Sys (497) 121 (497) Amey Plc AMY (49) 932 (76) Anker Plc (22) 115 16 Atkins (WS) Plc ATK (46) 1,345 58 Black & Edgingto (140) 203 23 BNB Recruitment (10) 104 38 Booker Plc BKRUY (60) 1,298 (13) Bradstock Group BDK (2) 269 7 British Energy Ltd (5,823) 4,921 534 British Energy Plc BGY (5,823) 4,921 534 British Sky Broadcast (334) 8,126 (388) Carlisle Group (12) 204 30 Compass Group CPG (668) 2,972 (440) Danka Bus (497) 121 (497) Dawson Holdings (18) 226 (63) Dignity Plc DTY (9) 648 71 E-II Holdings (199) 651 149 Easynet Group ESY.L (45) 323 68 Electrical and Music Industries Group EMI (2,266) 2,950 (582) European Home (14) 111 (70) Farepak Plc (14) 111 (70) Gartland Whalley (11) 145 (13) Hilton Food Group (21) 256 (12) Kleeneze Plc (14) 111 (70) Ladbrokes Plc LAD (814) 2,403 (706) Lambert Fenchurch Group (1) 1,827 5 Leeds United (73) 144 (48) M 2003 Plc (2,204) 7,204 (1,078) Mytravel Group MT.L (380) 1,818 (931) New Star Asset (398) 293 21 Next Plc (119) 3,161 (125) Orange Plc ORNGF (594) 2,902 12 Orbis Plc (4) 128 (5) Patientline Plc (55) 125 (10) Preedy Alfred (119) 3,161 (125) Rank Group Plc (132) 1,066 (175) Regus Plc (46) 367 (97) Rentokil Initial (8) 4,178 (886) Saatchi & Saatchi SSI (119) 705 (66) Samsonite Corp. (199) 651 (149) SFI Group SUF (108) 178 (265) Skyepharma Plc SKP (140) 203 23 Smiths News Plc (124) 201 (92) Styles & Wood (57) 107 (9) Telewest Communications Plc TLWT (3,702) 7,581 (10,042) Thorn Emi Plc (2,266) 2,950 (582) Topps Tiles Plc (111) 195 18 Trio Finance (14) 592 N.A. UTC Group (12) 204 30 Virgin Mobile (392) 166 (176) Watson & Philip (120) 252 (290) ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than US$3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/booksto order any title today. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. 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 * * *