/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/081226.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Friday, December 26, 2008, Vol. 9, No. 255 Headlines A U S T R I A FAQT LLC: Claims Registration Period Ends January 13 HOUDEK TANKSTELLE: Claims Registration Period Ends January 14 GASTAR LLC: Claims Registration Period Ends January 14 DAGDEMIR LLC: Claims Registration Period Ends January 15 C Z E C H R E P U B L I C KEY PLASTICS: Taps Chanin Capital as Financial Advisors F R A N C E NATIXIS: Moody's Downgrades BSFR to 'D+'; Outlook Stable PHENIX CFO: Moody's Downgrades Ratings on Three Class Notes RMF FOUR: Moody's Downgrades Rating on EUR16.45MM Notes to 'B1' G E R M A N Y BAYERISCHE LANDESBANK: Fitch Downgrades Long-Term Rating to 'CCC+' BAYERNLB: EU Commission Approves Recapitalization Measures B-O-GASTRO GMBH: Claims Registration Period Ends Jan. 19 DAIMLER CHRYSLER: Poor Fin'l Condition Cues Fitch's Junk Rating ESCADA AG: Moody's Junks Corporate Family Rating from B3 FRANZ HANIEL: S&P Cuts Rating on EUR32 Million Securities to 'BB' GILDEMEISTER AG: S&P Affirms 'BB-' Long-Term Corp. Credit Rating HAIEN INTERNATIONAL: Claims Registration Period Ends Feb. 18 HYPO REAL ESTATE HOLDING: Investors' Suit Alleges Misleading Info O.B.B. BAUGESELLSCHAFT: Claims Registration Period Ends Jan. 20 PRO INTEGRA: Claims Registration Period Ends January 20 WEL-HAUS GMBH: Claims Registration Period Ends January 16 G R E E C E SCIENS CFO: Moody's Junks Rating on EUR13.9 Mln Class C Notes I C E L A N D KAUPTHING BANK: Luxembourg Gov't Inks Initial Sale Deal for Unit I R E L A N D EIRLES TWO: Moody's Downgrades Ratings on Two Note Classes to 'C' IXION PLC: S&P Withdraws 'CCC-' Rating on Class E Notes I T A L Y IT HOLDING: Defers Installment on EUR85 Million Loan IT HOLDING: Moody's Downgrades Corporate Family Rating to 'Ca' IT HOLDING: S&P Downgrades Corporate Credit Rating to 'SD' K A Z A K H S T A N AKTOBE-VERTIKAL LLP: Proof of Claim Deadline Slated for Feb. 5 BARYS LLP: Creditors Must File Claims by February 10 ELIT SERVICE: Claims Filing Period Ends February 5 GAUHAR JSC: Creditors' Claims Due on February 5 JEZKAZGAN AGRO: Claims Registration Ends February 10 K Y R G Y Z S T A N AGRO HIMIK: Creditors Must File Claims by February 12 L U X E M B O U R G KAUPTHING LUXEMBOURG: Luxembourg Gov't Inks Initial Sale Deal R U S S I A ANGARSKAYA CONSTRUCTION: Irkutsk Bankruptcy Hearing Set Feb. 11 CERAMIC FACTORY LLC: Creditor Must File Claims by February 12 KOKSO-KHIM-MONTAZH: Creditors Must File Claims by February 12 LES-EKSPO-PROM LLC: Creditors Must File Claims by January 12 LES-TORG LLC: Creditors Must File Claims by January 12 SINTEZ-OIL LLC: Creditors Must File Claims by January 12 SISTEMA-HALS: Moody's Downgrades Corporate Family Rating to 'B3' SLAVYANSKIY MECHANICAL: Creditors Must File Claims by Feb. 12 STROY-PROFIL LLC: Creditors Must File Claims by February 12 SURAN MINING: Court Names A. Sayfetdinov as Insolvency Manager TERMO-STROY-KOMPLEKT 21: Creditors Must File Claims by Jan. 12 S P A I N IM SABADELL: Moody's Assigns Ba2 Rating on EUR121.8 Mil. Notes KING STURGE: Spanish Unit to Enter Into Administration TDA CCM: Moody's Assigns Ba3 Rating on EUR100MM Series C Notes S W E D E N FORD MOTOR: Moody's Lowers Ratings Deeper Into Junk Territory S W I T Z E R L A N D ACEVANTAGE MANAGEMENT: Creditors Must File Claims by Jan. 1 AUF DEM STEI: Deadline to File Proofs of Claim Set Jan. 1 CRYSTAL CREDIT: S&P Puts All Ratings on CreditWatch Negative GENERAL MOTORS: To Mull Alternatives for Saturn, May Sell Brand GENERAL MOTORS: Fitch Downgrades IDR to 'C'; Default Imminent INTERPLANO JSC: Creditors Have Until Jan. 1 to File Claims KEBAPHAUS HONGG: Proofs of Claim Filing Deadline is Jan. 1 UBS AG: To Liquidate Two Spanish Hedge Fund Units T U R K E Y PETROL OFISI: Fitch Affirms Issuer Default Ratings at 'BB-' SEKERBANK TAS: Fitch Affirms Individual Rating at 'D' TURKIYE PETROL: Fitch Affirms LT Foreign Currency IDR at 'BB' VESTEL ELEKTRONIK: S&P Cuts LT Corporate Credit Rating to 'B-' U K R A I N E AKTAR LLC: Creditors Must File Claims by January 4 AVT COURIER: Creditors Must File Claims by January 4 BROCARD LLC: Creditors Must File Claims by January 4 ENERGYTRANSINVEST CJSC: Creditors Must File Claims by Jan. 3 GOROKHOV BREADRECEIVING: Creditors Must File Claims by Jan. 4 NOVOSELITSA FOOD: Creditors Must File Claims by January 3 TECHNOPLAST-007 LLC: Creditors Must File Claims by January 3 U N I T E D K I N G D O M BETTER REMOVALS: Appoints Joint Liquidators from Tenon Recovery CORIOLANUS LIMITED: Moody's Cuts Rating on US$10 Mln Notes to Caa2 CRUST LANE: Brings in Joint Liquidators from Baker Tilly DUNCANNON CRE: S&P Cuts Ratings on Cl. E1 and E2 Notes to Low-B EVOLUTION MORTGAGE: Taps Joint Liquidators from Tenon Recovery FREE RADICAL: Goes Into Administration HOLMES MASTER: S&P Assigns 'BB' Rating on GBP190 Mln Class D Notes KING FINANCE: Calls in Joint Liquidators from Baker Tilly LIGHTMAKER MANCHESTER: Peter Gabriel Acquires Assets QUEBECOR WORLD: Appoints Joint Liquidators from Ernst & Young RANK GROUP: Like-For-Like Revenue Down 7% for 50-Wks Ended Dec. 14 RECOMAC SURFACING: Road Spraying Buys Business; 15 Jobs Saved RICHMOND HILL: Operations Continuing Despite Owner's Collapse ROBERT WYPER: Goes Into Provisional Liquidation SCHOLASTIC CORP: Moody's Puts 'Ba1' CFR on Review for Likely Cut SCHOLASTIC CORP: S&P Puts 'BB' Corp. Credit Rating on WatchNeg. SWIFT-LITE CHARCOAL: Taps Joint Liquidators from Tenon Recovery TATA MOTORS: To Inject Millions Into Jaguar Land Rover VEDANTA RESOURCES: Moody's Cuts Corporate Family Rating to 'Ba1' WAGON AUTOMOTIVE: To Cut 292 Jobs at Walsall Plant WHINSTONE 2: Fitch Assign 'BB' Rating on EUR129 Mln Class C2 Notes X X X X X X X X * Moody's Downgrades Ratings on 144 CDO Transactions * S&P Affirms Ratings on Three Natural Peril Catastrophe Bonds * BOOK REVIEW: The First Junk Bond: A Story of Corp. Boom & Bust ********* ============= A U S T R I A ============= FAQT LLC: Claims Registration Period Ends January 13 ---------------------------------------------------- Creditors owed money by LLC Faqt (FN 261803f) have until Jan. 13, 2009, to file written proofs of claim to the court-appointed estate administrator: Maria-Christina Nau Bahnhofsplatz 1a/Stg. 1/Top 5 2340 Modling Austria Tel: 02236/22 050 Fax: 02236/49239 E-mail: office@viehboeck.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on Jan. 27, 2009, for the examination of claims at: Land Court of Innsbruck Room 31 Innsbruck Austria Headquartered in Maria Enzersdorf am Gebirge, Austria, the Debtor declared bankruptcy on Nov. 17, 2008, (Bankr. Case No. FN 261803f). HOUDEK TANKSTELLE: Claims Registration Period Ends January 14 ------------------------------------------------------------- Creditors owed money by LLC Houdek Tankstelle (FN 115183m) have until Jan. 14, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr. Thomas Hofer-Zeni Landstrasser Hauptstrasse 14-16/8 1030 Wien Austria Tel: 715 25 26 Fax: 715 25 26 27 E-mail: michael@lesigang.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:15 a.m. on Jan. 28, 2009, for the examination of claims at: Trade Court of Vienna Room 1606 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Nov. 12, 2008, (Bankr. Case No. 4 S 172/08h). GASTAR LLC: Claims Registration Period Ends January 14 ------------------------------------------------------ Creditors owed money by LLC Gastar (FN 288896y) have until Jan. 14, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr. Hannelore Pitzal Paulanergasse 9 1040 Wien Austria Tel: 587 31 11 Fax: 587 87 50-50 E-mail: office@pitzal-partner.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Jan. 28, 2009, for the examination of claims at: Trade Court of Vienna Room 1606 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Nov. 13, 2008, (Bankr. Case No. is 4 S 173/08f). DAGDEMIR LLC: Claims Registration Period Ends January 15 -------------------------------------------------------- Creditors owed money by LLC Dagdemir (FN 231588x) have until Jan. 15, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr. Peter Sommerer Nottendorfer Gasse 11 1030 Wien Austria Tel: 503 17 90 Fax: 503 17 90 444 E-mail: office@sommerer.co.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Jan. 29, 2009, for the examination of claims at: Trade Court of Vienna Room 1703 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Nov. 18, 2008, (Bankr. Case No. 5 S 120/08v). =========================== C Z E C H R E P U B L I C =========================== KEY PLASTICS: Taps Chanin Capital as Financial Advisors ------------------------------------------------------- Key Plastics LLC and Key Plastics Finance Corp. ask the United States Bankruptcy Court for the District of Delaware for permission to employ Chanin Capital Partners LLC as their financial advisors. The firm is expected to: a) evaluate the Debtors' potential debt capacity in light of their projected cash flows; b) assist in determining a capital structure for the Debtors; c) assist in the determination of a range of values for the Debtors on a going concern basis; d) render financial advice to the Debtors and participate in meetings or negotiations with stakeholders, ratings agencies, or other appropriate parties in connection with the Chapter 11 cases; e) advise the Debtors on the timing, nature, and terms of new securities, other consideration or other inducements to be offered pursuant to the Chapter 11 cases; f) assist the Debtors in identifying and evaluating and obtaining potential financing including debtor in possession financing, contacting potential sources of capital, as the Debtors may designate, and assist the Debtors in implementing the financing; and g) provide testimony, as necessary, with respect to matters on which the firm has been engaged to advise the Debtors in any proceeding before the Court. The firm will be paid US$115,000 per month and US$1,000,000 in restructuring fee upon consummation of a restructuring. Brian J. Cullen, Esq., a managing director at the firm, assures that the firm does not hold any interests adverse to the Debtors' estate and is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. Headquartered in Northville, Michigan, Key Plastics LLC aka Key Plastics Technology LLC -- http://www.keyplastics.com-- supply plastic components to the automotive industry. The Debtors have 24 manufacturing facilities located in the United States, Canada, Mexico, Germany, Portugal, Spain, the Czech Republic, France, Slovakia, Italy and China. According to Bloomberg News, the company filed for bankruptcy in March 23, 2000, in Detroit and emerged a year later under the ownership of private-equity firm Carlyle, Bloomberg said. The company and Key Plastics Finance Corp. filed for Chapter 11 protection on December 15, 2008 (Bankr. D. Del. Case Nos. 08-13326 and 08-13324). Mark D. Collins, Esq., Richards Layton & Finger PA, represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed assets and debts between US$100 million to US$500 million each. =========== F R A N C E =========== NATIXIS: Moody's Downgrades BSFR to 'D+'; Outlook Stable -------------------------------------------------------- Moody's Investors Service has downgraded Natixis' Bank Financial Strength Rating to D+ from C. The outlook on the BFSR was changed to stable from negative. Moody's also affirmed the Aa3 long-term deposit and senior unsecured debt ratings and the bank's short- term Prime-1 deposit rating, with a stable outlook, in line with the deposit and senior unsecured debt ratings of Natixis' two parent companies: Caisse Nationale des Caisses d'Epargne and Banque Federale des Banques Populaires. The bank's preferred stocks and junior subordinated debts were downgraded by one notch to A3 from A2 with a stable outlook. Commenting on the downgrade of Natixis' BFSR to D+ from C, Moody's said that it reflects a deterioration of the bank's franchise, the scope for additional pressure on profitability and efficiency indicators, and the bank's high dependence on wholesale funding and especially its increasing reliance on its parents for meeting its financing needs. Moody's takes note of the plan announced on Friday, December 19 of a further downsizing of the corporate and investment banking division, notably a decrease of the bank's riskier capital markets activities and a geographical refocus. Moody's believes that the recent deterioration of Natixis' capital markets activities have impaired the group's franchise and negatively affected its underlying revenue generation capacity going forward. In addition, a sustained economic slowdown in the bank's main markets along with the potential sale of non-core assets could further reduce Natixis' revenue base and profitability levels, including those of the more stable asset management, private banking, services or retail banking businesses. According to Moody's stress tests and based on Natixis current exposure to structured finance and monoline products, Natixis may still have to recognize additional write-downs and provisions. Additionally, Moody's believes that a likely increase of the cost of risk -- Natixis disclosed a material indirect exposure of EUR450 million on the US investment manager Bernard L. Madoff Investments Securities LLC on 15 December 2008 --will make it difficult for Natixis to restore its profitability and efficiency levels in the coming quarters. Also, the high dependence on parental support and central banks with respect to funding requirements remains a matter of concern motivating the rating action. The stable outlook incorporates Moody's expectation that the revised strategic positioning of Natixis and the ongoing de-risking of the bank will result in a less volatile and more sustainable business model over the medium- term. Going forward, Moody's will monitor the implementation of the bank's strategic re-positioning. Moody's observes that the issuance of deeply subordinated notes by its parents BFBP and CNCE of EUR950 million and EUR1.1 billion, respectively, on December 11, 2008 -- as part of the French government package to restore confidence in banks -- should be mostly channeled to Natixis. This should provide additional loss absorption capacity in view of the bank's 8.6% Tier 1 ratio at the end of September 2008, and is in line with Natixis' commitment to maintain a Tier 1 ratio between 8.5% and 9%, an element fully factored in the bank's BFSR of D+. Moody's views positively the combined strong support from Natixis' parent companies and their respective mutualist groups as evidenced via this hybrid capital contribution which came shortly after a capital injection of EUR3.7 billion undertaken in September 2008 (including EUR2.5 billion from the parents, the remainder was raised through the capital markets). Moody's expectation of full support from the mutualist goups for Natixis, as well as very high systemic support for the groups themselves, continue to be factored into Natixis' Aa3 deposit and senior unsecured debt ratings. The last rating action on Natixis was on July 18, 2008, when Moody's downgraded to Aa3 with a stable outlook, from Aa2, the deposit and senior unsecured debt ratings of Natixis. Moody's also assigned a negative outlook to Natixis' C BFSR. The bank's short-term Prime-1 deposit rating was unchanged. Based in Paris, Natixis reported audited, consolidated assets of EUR520 billion and a net profit -- Group share -- of EUR1.1 billion at year-end 2007. The bank disclosed a Tier 1 ratio (after early application of Basel 2 / CRD rules) of 8.3% at year- end 2007. PHENIX CFO: Moody's Downgrades Ratings on Three Class Notes ----------------------------------------------------------- Moody's Investors Service has downgraded debt instruments issued by Phenix CFO Ltd: EUR120,000,000 Credit Facility provided by Natixis -- Current Rating: A3, on review for possible downgrade -- Prior Rating: A1, on review for possible downgrade EUR60,000,000 Class S Floating Rate Notes due 2013 -- Current Rating: A3, on review for possible downgrade -- Prior Rating: A1, on review for possible downgrade EUR24,000,000 Class M1 Floating Rate Notes due 2013 -- Current Rating: Ba1, on review for possible downgrade -- Prior Rating: Baa2, on review for possible downgrade EUR15,000,000 Class M2 Floating Rate Notes due 2013 -- Current Rating: Ba3, on review for possible downgrade -- Prior Rating: Ba3, on review for possible downgrade EUR21,000,000 Class M3 Floating Rate Notes due 2013 -- Current Rating: Caa1, on review for possible downgrade -- Prior Rating: Caa1, on review for possible downgrade Originally rated on February 10, 2006, Phenix CFO Ltd is a collateralized fund obligation backed by equity interests in a diversified fund of hedge funds. The fund is managed by Allianz Alternative Asset Management (formerly AGF Alternative Asset Management S.A.). The last rating action on the affected securities was on November 21, 2008 when several debt tranches were downgraded and all debt tranches were maintained on review for further possible downgrade. The rating action reflects continued deterioration of the net asset values of the underlying hedge funds within the structure. The ratings reflect concern over the vehicle's ability to liquidate portfolio assets within the covenanted timeframe. Moody's considered the increased likelihood of suspension or gating of redemptions in the underlying funds within the portfolio as a negative factor during its review. RMF FOUR: Moody's Downgrades Rating on EUR16.45MM Notes to 'B1' --------------------------------------------------------------- Moody's Investors Service has downgraded these debt securities of RMF Four Seasons CFO Ltd. EUR141,000,000 Credit Facility provided by Natixis (formerly Ixis Corporate & Investment Bank) -- Current Rating: Aa1, on review for downgrade -- Prior Rating: Aaa, on review for downgrade EUR23,500,000 Class S Floating Rate Notes due 2013 -- Current Rating: Aa1, on review for downgrade -- Prior Rating: Aaa, on review for downgrade EUR18,800,000 Class M1 Floating Rate Notes due 2013 -- Current Rating: A1, on review for downgrade -- Prior Rating: Aa1, on review for downgrade EUR11,750,000 Class M2 Floating Rate Notes due 2013 -- Current Rating: Baa2, on review for downgrade -- Prior Rating: Aa3, on review for downgrade EUR16,450,000 Class M3 Floating Rate Notes due 2013 -- Current Rating: B1, on review for downgrade -- Prior Rating: Baa1, on review for downgrade Originally rated on August 23 2006, RMF Four Seasons CFO Ltd. is a collateralized fund obligation backed by equity interests in a diversified fund of hedge funds. The fund is managed by RMF Investment Management. The last rating action on the affected securities was on October 15, 2008 when all tranches of debt were placed on review for possible downgrade. The rating action reflects continued deterioration of the net asset values of the underlying hedge funds within the structure. The ratings reflect concern over the vehicle's ability to liquidate portfolio assets within the covenanted timeframe. Moody's considered the increased likelihood of suspension or gating of redemptions in the underlying funds within the portfolio as a negative factor during its review. ============= G E R M A N Y ============= BAYERISCHE LANDESBANK: Fitch Downgrades Long-Term Rating to 'CCC+' ------------------------------------------------------------------ Fitch Ratings has downgraded the Long-Term Rating of Bayerische Landesbank's US$850 million Tier 1 securities to 'CCC+' from 'BBB'. A recovery rating of 'RR2' is assigned, reflecting superior recovery prospects on these notes. The rating action follows an announcement by BayernLB on December 18, 2009 that the bank, contrary to its previous intention, will not make any interest payments or distributions on profit participation capital (Genussrechtskapital), hybrid capital instruments and silent participations, unless the bank is contractually obliged to do so. Despite this limitation, in Fitch's opinion, it has become unlikely that the bank will make interest payments on the Tier 1 instrument in the light of the European Commission's approval of the bank's EUR10 billion recapitalization and a sizable net loss expected for 2008. However, BayernLB has some flexibility to avoid a write-down on the instrument's nominal value, as capital payments on the Tier 1 instrument are linked to the bank's unconsolidated distributable profit that may benefit from releasing capital and silent reserves under German accounting standards. The rating of BayernLB's US$850 million Tier 1 securities is linked to BayernLB's standalone financial strength, which is indirectly supported by the incoming capital from the state of Bavaria. The issue remains classified as Class E (100% equity, 0% debt) in accordance with Fitch's hybrids methodology. RR2 rated securities have characteristics in line with securities historically recovering 71%-90% of current principal and related interest. BayernLB, based in Munich, is Germany's second-largest Landesbank by equity. Its ratings are Individual 'C/D', Long-term Issuer Default 'A+'/Stable, Short-term IDR 'F1+', Support '1' and Support Rating Floor 'A+'. BAYERNLB: EU Commission Approves Recapitalization Measures ---------------------------------------------------------- The EU Commission on Thursday, December 18, 2008, approved the measures proposed by the Free State of Bavaria to recapitalize BayernLB. As a result, the Government of Bavaria will be able to pay the first tranche of EUR3 billion for the bank's recapitalization before the end of 2008. Additional tranches up to EUR10 billion will be made available in the first quarter of 2009. Agreements to protect the Bank against losses of up to EUR4.8 billion from its ABS investment portfolio will also be concluded this year. BayernLB's Board of Management and Board of Administration presented the core elements of the bank's new business model on December 1, 2008. Approval of the stabilization measures is an important step towards implementing the new business model. After examining the proposed measures, the EU Commission endorsed the recapitalization package on the understanding that the bank, contrary to its previous intention, will not make any interest payments or distributions on profit participation capital and hybrid capital (tier I capital) or capital contributions from silent partners unless the bank is contractually obliged to do so. Headquartered in Munich, Germany, Bayerische Landesbank -- http://www.bayernlb.de-- acts as the principal bank to the state of Bavaria and as the central clearing house for the 75 Bavarian sparkassen (savings banks). Also serving corporations, national and local governments, financial institutions, and real estate firms, the bank offers a variety of services, including financing, security underwriting and trading, and risk management. It provides retail and private banking services for individuals through its Internet bank, Deutsche Kreditbank, and through banking subsidiaries in central and southeastern Europe. BayernLB's Landesbank Saar subsidiary (75% owned) provides financing to small and midsized businesses in the German state of Saarland and in France. B-O-GASTRO GMBH: Claims Registration Period Ends Jan. 19 -------------------------------------------------------- Creditors of B-O-Gastro 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 10:20 a.m. on Feb. 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 Aachen Room D 1.409 Adalbertsteinweg 92 52070 Aachen 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 Bremen Sternstr. 58 40479 Duesseldorf Germany Tel: 02114914412 Fax: 02114914434 The District Court opened bankruptcy proceedings against the company on Dec. 15, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: B-O-Gastro GmbH Poststr. 1 52428 Juelich Germany Attn: Klaus-Willi Odenbrett, Manager Josef-Meisen-Weg 5 52428 Juelich Germany DAIMLER CHRYSLER: Poor Fin'l Condition Cues Fitch's Junk Rating --------------------------------------------------------------- Fitch Ratings has downgraded and placed on Rating Watch Negative the Issuer Default Rating of Daimler Chrysler Financial Services America LLC to 'CC' from 'B-'. A 'CC' rating indicates that default of some kind appears probable. Approximately US$8 billion of debt is affected by this action. The action reflects the deteriorating financial condition of DCFS' parent company Chrysler LLC. Chrysler's downgrade was driven by the terms of federal government support, whereby the company has until March 31, 2009 to produce a plan for long-term profitability, including concessions from unions, creditors, suppliers and dealers. Terms also include a reduction in Chrysler's current debt load, which Fitch believes could take the form of a distressed debt exchange. Chrysler's IDR of 'C' indicates that default is imminent. Where appropriate, Fitch has recognized a one-notch differential between the IDR of a captive finance company and that of an original equipment manufacturer in the past. However, Fitch believes that a one-notch differential would not be supported if Chrysler declares bankruptcy or its viability becomes suspect. Fitch would also downgrade and equalize the ratings of DCFS with those of Chrysler should the debt of DCFS be restructured or become subordinate to obligations purchased by the U.S. Treasury. Negative rating actions would also result if the existing escrow backstop that supports any obligation Chrysler may owe to DCFS is amended. Similarly, DCFS' Recovery Ratings could be revised to reflect the impact of debt restructuring or diminished collateral valuations from the bankruptcy of one or more U.S automakers. The Recovery Ratings on the first-lien term loan and second-lien revolver are 'RR1' and 'RR3', respectively, and are based on the respective collateral coverage for these instruments. 'RR1' implies recovery between 90%-100%, while 'RR3' implies recovery between 51%-70%. Fitch has downgraded and placed on Rating Watch Negative these: Daimler Chrysler Financial Services Americas LLC -- Long-term IDR to 'CC' from 'B-' -- Secured first lien to 'CCC+/RR1' from 'BB-/RR1' -- Secured second lien to 'CCC-/RR3' from 'B/RR3' -- Short-term IDR to 'C' from 'B.' ESCADA AG: Moody's Junks Corporate Family Rating from B3 -------------------------------------------------------- Moody's Investors Service has downgraded the Corporate Family Rating, the Probability Default Rating of Escada AG and the senior unsecured rating on the EUR200 million notes due 2012 to Caa2 from B3. The outlook on the ratings remains negative. "The further ratings downgrade follows the company's announcement of key preliminary figures for FYE October 2008 and Moody's view that the current operating performances, in conjunction with ongoing pressure in the market, are not seen as sustainable and are likely to add pressure on the liquidity profile of the company", says Paolo Leschiutta, a Senior Analyst -- Vice President at Moody's and responsible for Escada. FYE October 2008 results showed additional deterioration in operating performances compared to the third EBITDA revision guidance provided to the market earlier in the year as trading in October was particularly difficult. "The downgrade and the negative outlook reflect also Moody's expectation that operating performances are likely to remain subdued for good part of the current FYE October 2009 as softness in consumer spending will continue to challenge the execution of the restructuring program. The current ratings, however, assume the ongoing support from the company's shareholders and key banks", continued Mr. Leschiutta. Financial leverage, estimated at FYE October 2008 to be at around 11x on a reported preliminary Debt to EBITDA bases, is seen as unsustainable given the current economic environment and remains above previous Moody's expectations. In addition, Moody's views the liquidity profile of the group as weak given that cash burning rate is expected to remain high while modest cash generation is likely to remain constrained by interest payments and challenging working capital management. In addition Moody's notes that the company needs to invest heavily in advertising and promotion in order to maintain strong brand perception with customers. Moody's acknowledges management's effort in restructuring the business and the success earlier in 2008 to renegotiate a new EUR60 million bank facility and in securing EUR50 million of new capital in July. Soft consumer spending and market pressure in the luxury segment are likely, however, to challenge the company in completing successfully its restructuring program. The negative outlook reflects Moody's view that 2009 will remain a year of transition for ESCADA as the pressure on top line and the relative high operating leverage of Group's activities reduce the company's flexibility. The outlook could be changed to stable following improvements in the liquidity profile of the company and clear evidence of recovery in market conditions that had to lead to positive changes in operating margins and successful implementation of the restructuring program. Deterioration in Escada's liquidity profile, erosion in cash flow generation capability or further deterioration in market conditions could result in further negative pressure on the rating. Downgrades: Issuer: Escada AG -- Probability of Default Rating, Downgraded to Caa2 from B3 -- Corporate Family Rating, Downgraded to Caa2 from B3 -- Senior Unsecured Regular Bond/Debenture, Downgraded to Caa2 from B3 The last rating action on Escada was on the October 7, 2008, when Moody's downgraded the company's CFR to B3, leaving the negative outlook on the ratings. The rating action followed the third revision of EBITDA guidance for the full year made by the company in less than 12 months. ESCADA, headquartered in Munich, is one of the leading European manufacturers and distributors of ready-to-wear luxury apparel for women. In the financial year ended October 31, 2008, the company reported on a preliminary basis consolidated sales of EUR582.5 million and EBITDA of EUR19.7 million. FRANZ HANIEL: S&P Cuts Rating on EUR32 Million Securities to 'BB' ----------------------------------------------------------------- Standard & Poor's Ratings Services said it lowered its long- and short-term corporate credit ratings on Germany-based operating holding company Franz Haniel & Cie GmbH to 'BBB-/A-3' from 'BBB+/A-2'. At the same time, the EUR32 million junior subordinated hybrid securities (issued by Haniel Finance B.V. and guaranteed on a subordinated basis by FHC) were lowered to 'BB' from 'BBB-'. The long-term ratings were removed from CreditWatch, where they were placed with negative implications on Sept. 3, 2008. The outlook is negative. "The downgrade reflects FHC's lack of significant progress in reducing debt and subsequently its loan-to-value ratio to within S&P's rating requirements," said Standard & Poor's credit analyst Andreas Kindahl. "The LTV is now at about 45% and is likely to exceed 40% by year's end. S&P had expected this ratio to be less than 35% by year-end 2008 and to fall to less than 30% very early in 2009." Although FHC intended to reduce debt gradually, this task has been more difficult than anticipated. S&P continue to expect the company to reduce debt, although more modestly than initially projected, because FHC is mindful not to destroy the long-term equity value of the company. Consequently, S&P has reassessed its financial risk profile to incorporate this higher-than-expected level of financial risk. Significant drops in equity values over the past 12 months have continually reduced the value of FHC's investment portfolio. The share prices of the company's two main investments--German retailer Metro AG (BBB+/Stable/A-2) and Europe's largest drug distributor Celesio AG (not rated)--have fallen by 51% and 55%, respectively, over the past 12 months. This, combined with much higher debt levels following a large add-on investment in Metro shares in 2007, have resulted in FHC's LTV ratio weakening significantly beyond that incorporated in the ratings. This high leverage is not commensurate with a 'BBB+' rating and is also excessive for the 'BBB-' rating. For the current ratings and portfolio profile, FHC's LTV rating threshold is 35%, which it has already breached. Although stock markets could rebound and mechanically restore the ratio, S&P is very cautious about making any predictions based on future stock market movements, given the extreme uncertainty about the future direction of share prices. S&P will instead focus on management's efforts to reduce debt in line with rating expectations. The ratings on FHC reflect the company's portfolio of listed and, to some extent, unlisted corporate and financial investments, which provide financial flexibility and annual dividend inflows that cover overheads and interest expenses at the parent company. From time to time, however, FHC operates with fairly high leverage at the parent company level, and its portfolio is concentrated on two large investments (Celesio and Metro represent about three- fourths of the portfolio's value). The estimated fair market value of FHC's portfolio was EUR9 billion as of Sept. 30, 2008, but has since fallen. "The outlook is negative because of FHC's excessive market-value leverage for the current ratings," said Mr. Kindahl. "S&P expects the company to continue to gradually reduce debt so that its LTV falls within S&P's 35% rating threshold. S&P will monitor equity market trends and the company's efforts in the near term to assess progress." GILDEMEISTER AG: S&P Affirms 'BB-' Long-Term Corp. Credit Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services said it revised its outlook on Germany-based machine-tool maker Gildemeister AG to stable from positive. The 'BB-' long-term corporate credit rating was affirmed. "The outlook revision reflects a lower upside potential in the rating on Gildemeister over the next 12 months," said Standard & Poor's credit analyst Varvara Nikanorava. "S&P expects the company's financial performance and resulting credit measures to weaken from their currently strong level, but to still remain adequate for the current rating." Meanwhile, Gildemeister's ability to sustainably reach a financial profile adequate for a higher rating has been impaired by the economic weakening leading to lower machine-tool demand, and overall very uncertain market conditions. Over recent months, the prospects for Gildemeister's end markets have deteriorated sharply. This development affected the company's order intake during the third quarter of 2008, which declined by 16% compared with third-quarter 2007. S&P recognizes Gildemeister's well-diversified customer base and that, at the moment, not all end markets have been hit to the same extent. This trend is likely to continue, however, because companies in the manufacturing sector are revising their capital expenditure programs. Although some moderation of demand from the high levels of the past few years was expected because of the anticipated cyclical downturn, S&P believes that the slowdown will be accelerated by the global economic weakening and tight lending conditions in financial markets. This would have an impact on operating margins and consequently on credit measures, which we, however, expect to remain adequate for the rating. As of Sept. 30, 2008, funds from operations to debt was about 41% and debt to EBITDA was 2.3x, which was strong for the rating. "The stable outlook incorporates S&P's view that, despite the difficult market conditions, Gildemeister's leading position in the global machine-tool industry and a substantial share of its earnings generated by the service business will allow it to maintain credit measures and liquidity that are consistent with the current rating," said Ms. Nikanorava. At the 'BB-' level, Gildemeister should maintain FFO to debt of about 20% and debt to EBITDA between 3.0x and 4.0x. HAIEN INTERNATIONAL: Claims Registration Period Ends Feb. 18 ------------------------------------------------------------ Creditors of Haien International GmbH have until Haien International GmbH, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on March 11, 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: Jan H. Wilhelm Albert-Einstein-Ring 11/15 22761 Hamburg Germany The District Court opened bankruptcy proceedings against the company on Dec. 16, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Haien International GmbH Attn: Dr. Daniel Albrecht, Liquidator Buxtehuder Strasse 96 21073 Hamburg Germany HYPO REAL ESTATE HOLDING: Investors' Suit Alleges Misleading Info ----------------------------------------------------------------- Investors has sued Hypo Real Estate Holding AG for failure to disclose the extent of its exposure to the financial crisis in a timely way, Reuters reports citing law firm Rotter. According to the report, the law firm said it represented plaintiffs who bought Hypo Real Estate shares between November 2007 and January 2008 for an average price of EUR35 per share. Hypo Real Estate stock fell sharply after the bank said in mid- January it would have to write down assets as a result of the market turmoil, the report recalls. The law firm, the report relates, said investors also felt misled by statements about the situation at Hypo Real Estate's Depfa subsidiary. "On Sept. 29, 2008, HRE finally admitted that it was facing insolvency due to inadequate refinancing of Depfa, which it bought on Oct. 2, 2007," Rotter said in a statement obtained by Reuters. "Shortly before that management said refinancing of Depfa was secured despite the financial market crisis." Job Cuts The Financial Times reports that Hypo Real Estate is to slash more than 40 per cent of its workforce and retreat from some business areas to secure its survival. According to FT, staff numbers would fall from 1,800 to 1,000 in the next three years. FT adds the company was terminating the contracts of Markus Fell, finance chief, and Frank Lamby, responsible for commercial real estate operations. 4th Qtr Outlook Kevin Crowley at Bloomberg News relates that Hypo Real Estate said fourth-quarter results will be hurt by restructuring costs. According to a company statement obtained by Bloomberg News, Hypo Real Estate will spend EUR400 million (US$560 million) to restructure its public-sector finance business and invest in information technology, about EUR267 million of which will come off fourth-quarter results. As reported in the Troubled Company Reporter-Europe on Nov. 25, 2008, the German Financial Markets Stabilisation Fund ("SoFFin") granted a EUR20 billion framework guarantee to Hypo Real Estate Group, to strengthen the Group's liquidity. Hypo Real Estate Bank AG, part of Hypo Real Estate Group, was authorized to use the guarantees to be issued by SoFFin to collateralize debt securities to be issued, which must be due for repayment by January 15, 2009 at the latest. Hypo Real Estate Bank AG will pay to SoFFin a pro-rata commitment commission of 0.1% of the undrawn portion of the frame work guarantee. The fee for guarantees drawn will be 1.5% p.a. The agreed framework guarantee is a result of the ongoing negotiations of Hypo Real Estate Group with SoFFin regarding longer-term and comprehensive liquidity and capital support measures for the Group. About Hypo Real Estate Germany-based Hypo Real Estate Holding AG (FRA:HRXG) -- http://www.hyporealestate.com/-- is a German holding company for the Hypo Real Estate Group. It is an international real estate financing company, combining commercial real estate financing products with investment banking. The Company divides its operations into three business units: Commercial Real Estate, which provides real estate financing on the international and German market; Public Sector & Infrastructure Finance, and Capital Markets & Asset Management. Hypo Real Estate Group operates through a number of subsidiaries, including, among others, Hypo Real Estate Bank International AG that focuses on Pfandbrief-based commercial real estate financing in all international markets, and offers large-volume investment banking and structured finance transactions; Hypo Real Estate Bank AG that focuses on the commercial real estate financing and refinancing business in Germany, and DEPFA Bank plc in Dublin, Ireland, which is a provider of public finance. O.B.B. BAUGESELLSCHAFT: Claims Registration Period Ends Jan. 20 --------------------------------------------------------------- Creditors of O.B.B. Baugesellschaft mbH have until Jan. 20, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Feb. 10, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Lueneburg Hall 302 Ochsenmarket 3 21335 Lueneburg 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. Tjark Thies Domstrasse 15 20095 Hamburg Germany Tel: 040/415 22-400 Fax: 040/415 22-411 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: O.B.B. Baugesellschaft mbH Attn: Otto Burmester, Manager Pieperstrasse 20 21357 Bardowick Germany PRO INTEGRA: Claims Registration Period Ends January 20 ------------------------------------------------------- Creditors of Pro Integra GmbH have until Jan. 20, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 8:30 a.m. on March 3, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Chemnitz Insolvency Tribunal Hall 3.011 Fuerstenstr. 21-23 09130 Chemnitz 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: Olaf Kupke Leipziger Strasse 58 09113 Chemnitz Germany Tel: (0371) 335170 Fax: (0371) 3351715 The District Court opened bankruptcy proceedings against the company on Dec. 15, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Pro Integra GmbH Attn: Dietmar Mueller, Manager Waldenburger Strasse 136 09212 Limbach-Oberfrohna Germany WEL-HAUS GMBH: Claims Registration Period Ends January 16 --------------------------------------------------------- Creditors of WEL-HAUS GmbH Bernburg-Leipzig have until Jan. 16, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 11:30 a.m. on Feb. 17, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Leipzig Hall 145 Enforcement Court Bernhard Goering Strasse 64 04275 Leipzig 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 Hawelka Nonnenstr. 37 04229 Leipzig Germany The District Court opened bankruptcy proceedings against the company on Dec. 17, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: WEL-HAUS GmbH Bernburg-Leipzig Attn: Klaus Uwe Marsch, Manager Industriestrasse 30 04229 Leipzig Germany =========== G R E E C E =========== SCIENS CFO: Moody's Junks Rating on EUR13.9 Mln Class C Notes ------------------------------------------------------------- Moody's Investors Service has downgraded these debt securities of Sciens CFO I Limited: EUR121,200,000 Class A Floating Rate Notes due 2014 -- Current Rating: A3, on review for downgrade -- Prior Rating: Aa3, on review for downgrade EUR21,000,000 Class B Floating Rate Notes due 2014 -- Current Rating: B3, on review for downgrade -- Prior Rating: Ba1, on review for downgrade EUR13,900,000 Class C Floating Rate Notes due 2014 -- Current Rating: Caa3, on review for downgrade -- Prior Rating: B2, on review for downgrade Originally rated on 14 December 2006, Sciens CFO I Limited is a collateralized fund obligation backed by equity interests in a diversified fund of hedge funds. The fund is managed by SF Management Ltd. The last rating action on the affected securities was on December 10, 2008 when several debt tranches were downgraded and all debt tranches were maintained on review for further possible downgrade. The rating action reflects continued deterioration of the net asset values of the underlying hedge funds within the structure. The ratings reflect concern over the vehicle's ability to liquidate portfolio assets within the covenanted timeframe. Moody's considered the increased likelihood of suspension or gating of redemptions in the underlying funds within the portfolio as a negative factor during its review. ============= I C E L A N D ============= KAUPTHING BANK: Luxembourg Gov't Inks Initial Sale Deal for Unit ---------------------------------------------------------------- Michele Sinner and Dale Hudson at Reuters report that Luxembourg's budget minister Luc Frieden has signed a declaration of intent for the sale of Kaupthing Luxembourg SA, a unit of Iceland's Kaupthing Bank hf, to a group of investors from Arab countries. In a statement on Saturday, the Luxembourg government, as cited by Reuters, said the agreement needs acceptance from the Belgian state and creditor banks. It added that together with Belgium and the creditor banks, it would provide credit to Kaupthing Luxembourg, enabling the unit to keep functioning and reimburse depositors, Reuters relates. Reuters recounts a decision on the takeover of Kaupthing Luxembourg had been postponed earlier this month, with the Belgian government citing technical reasons. Belgian accounts, Reuters notes, are held by the Luxembourg unit of Kaupthing and their money was frozen in November by Luxembourg's financial regulator after the Icelandic parent company was taken over by the Icelandic state. Reuters discloses that according to Belgian Prime Minister Yves Leterme there was a serious candidate to buy Kaupthing Luxembourg, and that three or four other parties were also eyeing a takeover of Kaupthing's Belgian customers. Potential buyers for the Belgin customers included online lender Keytrade Bank, German bank Landesbank Nord and the Libyan Investment Autority fund, Reuters discloses citing Luxembourg daily Tageblatt. Suspension of Payment Status On October 9, 2008, the Board of Directors of Kaupthing Bank Luxembourg SA applied for suspension of payments status with the Luxembourg District Court sitting in commercial matters. The bank was granted this status with monitoring of the bank's management by the administrators. The Court appointed PriceWaterhouseCoopers Luxembourg - represented by Mrs Emmanuelle Caruel-Henniaux - and Mr Franz Fayot, Attorney at law, to act as the bank's administrators. Monitoring of the Bank's Operations Among other things, the bank has been unable to reimburse its customers' cash deposits since it was granted suspension of payment status on October 9, 2008. Also, the bank is not authorized to make any other payments unless the administrators give their prior consent. As a result, the administrators signed off on a limited number of transactions in the interest of the bank's creditors and customers. Some of those transactions were the subject of judgments by the Luxembourg District Court sitting in commercial matters. These judgments are dated October 29, 2008 and relate to the suspension of payment status of the Bank and that of another Luxembourg-based Icelandic bank. The administrators apply the solutions proposed by the judgments as they manage the suspension of payment. These solutions include: * The income made up of securities (such as interest and dividends) owned by the bank's customers and the related cash are not included in the bank's assets. * Those transfer orders and share buy orders which have not yet been closed as of the receivership date must be canceled. The related amounts must be credited to the relevant customers' accounts. * If certain requirements are met, securities, which are not subject to a pledge, guarantee or lien, may be transferred. Takeover Efforts The administrators would like to come to a solution which will enable the bank to remain in business. This would have the advantage of putting an end to the suspension of payment status. To achieve this, the administrators, together with the bank's management, have facilitated contacts and discussions with potential buyers about the terms of a potential takeover with them. Using a Data Room made available to them by the bank, potential buyers can have access to the information they need to confirm their interest and communicate their offers. Talks with potential buyers are still ongoing. Making sure the bank and /or its Belgian and Swiss branches can be taken over is a key priority for the administrators and for the bank's management. About Kaupthing Bank Luxembourg Kaupthing Bank Luxembourg SA is a unit of Iceland-based Kaupthing Bank hf. About Kaupthing Bank Headquartered in Reykjavik, Iceland, Kaupthing Bank -- http://www.kaupthing.com-- is engaged in the provision of financial services, such as private banking, asset management, pension services, brokerage services, investment banking, as well as corporate and retail banking. The Bank's offer is targeted at companies, institutional investors and individuals. The Bank is operational in thirteen countries, including Luxembourg, Switzerland, the Nordic countries, the United Kingdom and the United States. The main subsidiaries include Kaupthing Singer & Friedlander and FIH Erhvervsbank. * * * As reported in the Troubled Company Reporter, on Nov. 30, 2008, Olafur Gardasson, assistant for Kaupthing Bank hf., in a proceeding under Act No. 21/1991, pending before the Reykjavik District Court, and foreign representative of the Debtor, filed a petition under chapter 15 of title 11 of the United States Code in the United States Bankruptcy Court for the Southern District of New York commencing the Debtor's chapter 15 case ancillary to the Icelandic Proceeding and seeking recognition for the Icelandic Proceeding as a "foreign main proceeding" under the Bankruptcy Code and relief in aid of the Icelandic Proceeding. Citing a court filing by Olafur Gardarsson, Reuters disclosed Kaupthing has about US$14.8 billion of principal assets, including US$222 million located in the United States, and US$26 billion of principal indebtedness. ============= I R E L A N D ============= EIRLES TWO: Moody's Downgrades Ratings on Two Note Classes to 'C' ----------------------------------------------------------------- Moody's Investors Service announced it has downgraded its ratings of two classes of notes issued by Eirles Two Limited. The transactions are managed synthetic CDOs exposed to the credit risk of a pool of corporate names. 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 Lehman Brothers Holdings Inc., which filed for protection under Chapter 11 of the U.S. Bankruptcy Code on September 15, 2008; Fannie Mae and Freddie Mac, which were placed into the conservatorship of the U.S. government on September 8, 2008; and two Icelandic banks, specifically Kaupthing Bank hf, and Glitnir Banki hf. These credit events will likely lead to a complete writedown of both tranches. The tranches are thin and supported by small credit enhancements. Moody's initially analyzed and continues to monitor this transaction using primarily the methodology and its supplements for corporate synthetic CDOs as described in Moody's Special Reports below: -- Moody's Approach To Rating Synthetic CDOs (July 2003) -- Moody's Revisits Its Assumptions Regarding Corporate Default (and Asset) Correlations for CDOs (November 2004) -- Understanding Collateral Risks of Funded Synthetics in CDOs (June 2006) The rating actions are: Eirles Two Limited: (1) The Series 177 EUR10,000,000 Floating Rate Credit-Linked Secured Notes due 2010 -- Current Rating: C -- Prior Rating: A3 -- Prior Rating Date: 15 November 2007, upgraded from Baa2 to A3 (2) The Series 256 EUR7,500,000 Series 256 Floating Rate Credit Linked Secured Notes due 2013 -- Current Rating: C -- Prior Rating: Ba1 -- Prior Rating Date: 17 July 2006, assigned Ba1 IXION PLC: S&P Withdraws 'CCC-' Rating on Class E Notes ------------------------------------------------------- Standard & Poor's Ratings Services withdrew its 'CCC-' rating on the class E notes issued by Ixion PLC's Matrix 2007-1 series 20, a synthetic collateralized debt obligation of asset-backed securities transaction. The withdrawal follows the repurchase of the class by the issuer pursuant to the Dec. 17, 2008, deed of release and repurchase. Rating Withdrawn Ixion PLC Matrix 2007-1 series 20 Rating ------ Class To From ----- -- ---- E NR CCC- NR -- Not rated. ========= I T A L Y ========= IT HOLDING: Defers Installment on EUR85 Million Loan ---------------------------------------------------- Reuters reports that IT Holding SpA has asked its creditors to postpone the installment on its EUR85 million (US$119 million) loan until April 18, 2009. The company, the report relates, was due to pay the installment on the loan on Monday, December 22, 2008. In a statement on Monday, the company, as cited by the report, said "IT Holding's management has met the representatives of the group's major banks to discuss possible short-term actions aimed at giving financial support to the group." According to the report, the remaining amount due on the loan is EUR29 million at the end of September. The loan, the report discloses, was syndicated by a group of banks led by Intesa Sanpaolo in 2004. The report recounts the payment of the EUR9.4 million installment was postponed for the first time last month. The new date for the installment was moved to Dec. 22 from Oct. 20, the report recalls. Headquartered in Milan, Italy, IT Holding SpA -- http://www.itholding.com-- operates in the luxury goods market. The company and its subsidiaries design, produce and distribute apparel, accessories, eyewear and perfumes. Its brand portfolio embraces: owned brands, Gianfranco Ferre, Malo, Exte, as well as licensed brands, Versace Jeans Couture, Versace Sport, Just Cavalli, C'N'C Costume National and Galliano. * * * As reported in the TCR-Europe on Nov. 25, 2008, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Italy-based fashion company IT Holding SpA to 'CC' from 'SD'. The outlook is negative. At the same time, the 'C' debt rating on the EUR185 million senior secured notes issued by IT Holding Finance S.A. was affirmed. The recovery rating is unchanged at '5', indicating S&P's expectation of modest (10%-30%) recovery for senior noteholders in the event of a payment default. As reported in the TCR-Europe on Nov. 19, 2008, Moody's Investors Service downgraded IT Holding SpA Corporate Family Rating and Probability of Default Rating to Caa1 from B3, and the Senior Secured rating on the EUR 185 million notes due 2012 issued by IT Holding Finance SpA to Caa2 (LGD4, 69%) from B3. The ratings are on review for further possible downgrade. IT HOLDING: Moody's Downgrades Corporate Family Rating to 'Ca' -------------------------------------------------------------- Moody's Investors Service has downgraded IT Holding SpA Corporate Family Rating and Probability of Default Rating to Ca from Caa1, and the Senior Secured rating on the EUR185 million notes due 2012 issued by IT Holding Finance SpA to Ca (LGD3, 49%) from Caa2. The outlook on the ratings is developing. The rating action concludes the review initiated on the November 17, 2008. "The rating downgrade follows the operating difficulties the company is facing due to adverse market conditions and soft consumer spending and Moody's view that ongoing uncertainties on future operating performances might challenge the company to obtain further support from key banks", says Paolo Leschiutta, Vice President at Moody's and lead analyst for IT Holding. "In November 2008 IT Holding's core banks provided the company with an agreement to delay a EUR9.4 million payment that was due by the end of October 2008 under the EUR85 million senior bank loan. The extension was granted until December 22. The company has recently requested a further postponement of the payment as trading activity during the last quarter of the year has been affected by weaknesses in the apparel market and have been below expectations. Failure to secure a further extension would result in an event of default". Moody's understands the company is considering different line of actions to restore profitability and remove immediate liquidity pressure, and the likelihood of a potential restructuring has increased at this stage. Uncertainties on any potential outcome, however, remain high at the moment as indicated by the developing outlook. In addition the difficult economic and financial environments heighten the execution risk of management's plans. The developing outlook incorporates both the uncertainty surrounding the potential recovery rate for bond holders in case of restructuring and also the limited downward potential at current rating levels. Moody's highlights the risk of potential default of the company should banks stop supporting the company and the liquidity pressure in light of next year bond coupon payments and the need to finance inventory build up for next year seasons. Ratings affected by the action are as follow: -- Corporate Family Rating and Probability of Default Rating downgraded to Ca from Caa1; -- Senior secured rating on the EUR 185 million notes due 2012 downgraded to Ca (LGD3, 49%) from Caa2; The last rating action on IT Holding was on the November 17, 2008 when Moody's downgraded the company's CFR to Caa1 and placed ratings under review for further possible downgrade. Based in Italy, IT Holding S.p.A. is a European leading operator in the branded apparel and accessories market mainly focused on the young lines segment. During the first nine months ended September 2008, IT Holding reported EUR468 million of consolidated net revenues and EUR38.2 million of EBITDA (adjusted for investments in collection development during the period). IT HOLDING: S&P Downgrades Corporate Credit Rating to 'SD' ---------------------------------------------------------- Standard & Poor's Ratings Services said that it has lowered its long-term corporate credit rating on Italy-based fashion company IT Holding SpA to 'SD' from 'CC'. At the same time, the senior unsecured debt rating on the EUR185 million senior secured notes issued by IT Holding Finance S.A. was affirmed at 'C'. The recovery rating on the notes is unchanged at '5', indicating S&P's expectation of modest (10%-30%) recovery for senior noteholders in the event of a payment default. The rating actions reflect the announcement by ITH on Dec. 22 that it has once again requested a deferral of a EUR9.4 million principal payment on its unrated bank loan. The initial payment fell due Oct. 20, 2008, but the pool of banks had accepted a waiver until Dec. 22 and has now been requested to further extend the waiver until April 18, 2009. The semiannual coupon on the EUR185 million senior secured notes due Nov. 15, 2008, was paid. Standard & Poor's has lowered the corporate credit rating on ITH to 'SD' as the due date of ITH's bank loan payment has passed and the payment was missed; S&P's default definitions include payment defaults on both rated and unrated financial obligations. ITH has, however, confirmed that the payments on the senior secured notes remain current, which is why S&P see this default as selective. =================== K A Z A K H S T A N =================== AKTOBE-VERTIKAL LLP: Proof of Claim Deadline Slated for Feb. 5 -------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Aktobe-Vertikal insolvent. Creditors have until Feb. 5, 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 BARYS LLP: Creditors Must File Claims by February 10 ---------------------------------------------------- LLP Construction Company Barys has declared insolvency. Creditors have until Feb. 10, 2009, to submit written proofs of claim to: LLP Construction Company Barys Altynsarin Str. 10a Telman Abaisky Shymkent 160050 South Kazakhstan Kazakhstan ELIT SERVICE: Claims Filing Period Ends February 5 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Mangistau has declared LLP Elit Service insolvent. Creditors have until Feb. 5, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Mangistau Building of Former Kindergarten 51 Micro District 27 Aktau Mangistau Kazakhstan GAUHAR JSC: Creditors' Claims Due on February 5 ----------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda has declared JSC Gauhar insolvent. Creditors have until Feb. 5, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Karaganda Jambyl Str. 9 Karaganda Kazakhstan JEZKAZGAN AGRO: Claims Registration Ends February 10 ---------------------------------------------------- JSC Jezkazgan Agro Zoo Vet Service has declared insolvency. Creditors have until Feb. 10, 2009, to submit written proofs of claim to: JSC Jezkazgan Agro Zoo Vet Service Promzona Jezkazgan Karaganda Kazakhstan =================== K Y R G Y Z S T A N =================== AGRO HIMIK: Creditors Must File Claims by February 12 ----------------------------------------------------- OJSC Agro Himik has declared insolvency. Creditors have until Feb. 12, 2009, to submbit claims to: OJSC Agro Himik Tolstoy Str. 6 Kyzyl-Jyldyz Manassky Talas Kyrgystan =================== L U X E M B O U R G =================== KAUPTHING LUXEMBOURG: Luxembourg Gov't Inks Initial Sale Deal ------------------------------------------------------------- Michele Sinner and Dale Hudson at Reuters report that Luxembourg's budget minister Luc Frieden has signed a declaration of intent for the sale of Kaupthing Luxembourg SA, a unit of Iceland's Kaupthing Bank hf, to a group of investors from Arab countries. In a statement on Saturday, the Luxembourg government, as cited by Reuters, said the agreement needs acceptance from the Belgian state and creditor banks. It added that together with Belgium and the creditor banks, it would provide credit to Kaupthing Luxembourg, enabling the unit to keep functioning and reimburse depositors, Reuters relates. Reuters recounts a decision on the takeover of Kaupthing Luxembourg had been postponed earlier this month, with the Belgian government citing technical reasons. Belgian accounts, Reuters notes, are held by the Luxembourg unit of Kaupthing and their money was frozen in November by Luxembourg's financial regulator after the Icelandic parent company was taken over by the Icelandic state. Reuters discloses that according to Belgian Prime Minister Yves Leterme there was a serious candidate to buy Kaupthing Luxembourg, and that three or four other parties were also eyeing a takeover of Kaupthing's Belgian customers. Potential buyers for the Belgin customers included online lender Keytrade Bank, German bank Landesbank Nord and the Libyan Investment Autority fund, Reuters discloses citing Luxembourg daily Tageblatt. Suspension of Payment Status On October 9, 2008, the Board of Directors of Kaupthing Bank Luxembourg SA applied for suspension of payments status with the Luxembourg District Court sitting in commercial matters. The bank was granted this status with monitoring of the bank's management by the administrators. The Court appointed PriceWaterhouseCoopers Luxembourg - represented by Mrs Emmanuelle Caruel-Henniaux - and Mr Franz Fayot, Attorney at law, to act as the bank's administrators. Monitoring of the Bank's Operations Among other things, the bank has been unable to reimburse its customers' cash deposits since it was granted suspension of payment status on October 9, 2008. Also, the bank is not authorized to make any other payments unless the administrators give their prior consent. As a result, the administrators signed off on a limited number of transactions in the interest of the bank's creditors and customers. Some of those transactions were the subject of judgments by the Luxembourg District Court sitting in commercial matters. These judgments are dated October 29, 2008 and relate to the suspension of payment status of the Bank and that of another Luxembourg-based Icelandic bank. The administrators apply the solutions proposed by the judgments as they manage the suspension of payment. These solutions include: * The income made up of securities (such as interest and dividends) owned by the bank's customers and the related cash are not included in the bank's assets. * Those transfer orders and share buy orders which have not yet been closed as of the receivership date must be canceled. The related amounts must be credited to the relevant customers' accounts. * If certain requirements are met, securities, which are not subject to a pledge, guarantee or lien, may be transferred. Takeover Efforts The administrators would like to come to a solution which will enable the bank to remain in business. This would have the advantage of putting an end to the suspension of payment status. To achieve this, the administrators, together with the bank's management, have facilitated contacts and discussions with potential buyers about the terms of a potential takeover with them. Using a Data Room made available to them by the bank, potential buyers can have access to the information they need to confirm their interest and communicate their offers. Talks with potential buyers are still ongoing. Making sure the bank and /or its Belgian and Swiss branches can be taken over is a key priority for the administrators and for the bank's management. About Kaupthing Bank Headquartered in Reykjavik, Iceland, Kaupthing Bank -- http://www.kaupthing.com-- is engaged in the provision of financial services, such as private banking, asset management, pension services, brokerage services, investment banking, as well as corporate and retail banking. The Bank's offer is targeted at companies, institutional investors and individuals. The Bank is operational in thirteen countries, including Luxembourg, Switzerland, the Nordic countries, the United Kingdom and the United States. The main subsidiaries include Kaupthing Singer & Friedlander and FIH Erhvervsbank. About Kaupthing Bank Luxembourg Kaupthing Bank Luxembourg SA is a unit of Iceland-based Kaupthing Bank hf. =========== R U S S I A =========== ANGARSKAYA CONSTRUCTION: Irkutsk Bankruptcy Hearing Set Feb. 11 --------------------------------------------------------------- The Arbitration Court of Irkutsk will convene on Feb. 11, 2009, to hear bankruptcy supervision procedure on LLC Angarskaya Construction Company (PSRN 1023800515298). The case is docketed under Case No. ?19-13196/08-8. The Temporary Insolvency Manager is: Yu. Nikonov Dzerzhinskogo Str. 45 664007 Irkutsk Russia CERAMIC FACTORY LLC: Creditor Must File Claims by February 12 ------------------------------------------------------------- Creditors of LLC Ceramic Factory have until Feb. 12, 2009, to submit proofs of claims to: E. Teplyakov Insolvency Manager Post user Box 13023 454091 Chelyabinsk Russia The Arbitration Court of Chelyabinsk will convene at 2.00 p.m. on Apr.15, 2009, to hear bankruptcy proceedings. The case is docketed under Case No. ?76-2007/2008-55-293. The Debtor can be reached at: LLC Ceramic Factory Bobrovaya Str. 5 Kyshtym 456871 Chelyabinskaya Russia KOKSO-KHIM-MONTAZH: Creditors Must File Claims by February 12 ------------------------------------------------------------- Creditors of OJSC Kokso-Khim-Montazh-Magnitogorsk (TIN 7414001499 ) (Construction) have until Feb. 12, 2009, to submit proofs of claims to: G. Mufazalov Insolvency Manager Apt. 84 Shafiyeva Str. 10 450083 Ufa Bashkortostan Russia Tel: (347) 248-81-17 The Arbitration Court of Chelyabinsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?76-2914/2008-36-37. The Debtor can be reached at: OJSC Kokso-Khim-Montazh-Magnitogorsk Building 1 Stalevarov Str. 11 455038 Magnitogorsk Russia LES-EKSPO-PROM LLC: Creditors Must File Claims by January 12 ------------------------------------------------------------ Creditors of LLC Les-Ekspo-Prom (TIN 3823015713) (Forestry) have until Jan. 12, 2009, to submit proofs of claims to: Ye. Romanova Insolvency Manager Office 802 Sotsialisticheskaya Str. 74 344002 Rostov-on-Don Russia The Arbitration Court of Krasnodarskiy commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?32-10224/2008-27/377B. The Debtor can be reached at: LLC Les-Ekspo-Prom Office 9 Altayskaya Str. 101 Novokubansk Krasnodarskiy Russia LES-TORG LLC: Creditors Must File Claims by January 12 ------------------------------------------------------ Creditors of LLC Les-Torg (Forestry) have until Jan. 12, 2009, to submit proofs of claims to: N. Nikonorov Insolvency Manager Post User Box 9484 454092 Chelyabinsk Russia The Arbitration Court of Chelyabinsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?76-6169/2008-55- 102. The Debtor can be reached at: LLC Les-Torg Solnechnya Str. 22a/6 Chelyabinsk Russia SINTEZ-OIL LLC: Creditors Must File Claims by January 12 -------------------------------------------------------- Creditors of LLC Sintez-Oil have until Jan. 12, 2009, to submit proofs of claims to: V. Makov Temporary Insolvency Manager Apt. 40 Molodezhnaya Str. 8 443031 Samara Russia The Arbitration Court of Samaraskaya commenced bankruptcy supervision procedure. The case is docketed under Case No. ?55- 12356/2008. SISTEMA-HALS: Moody's Downgrades Corporate Family Rating to 'B3' ---------------------------------------------------------------- Moody's Investors Service has downgraded the corporate family rating and NSR of Sistema-Hals to B3 from B1 and to Baa3.ru from A1.ru. The ratings remain on review for possible downgrade subject to a resolution of the review for downgrade already underway relating to Sistema-Hals' parent Sistema Joint Stock Financial Corporation (Ba3, on review for downgrade). This action is prompted by continuing concerns arising from the substantial deterioration that is occurring in the operating performance and outlook -- as well as expectations that the challenges the company is facing on the operating performance and liquidity fronts will continue into 2009 -- as a result of deteriorating conditions in the Russian real estate sector as being experienced by the company. Sistema-Hals ratings were originally placed on review for downgrade on October 16, 2008 due to the above concerns. The rating action takes into account these factors: (i) the deterioration being reported in financial metrics including profitability, return on assets, and interest coverage during 2007 and the first 9 months of 2008; (ii) the substantial increase in aggregate debt levels and leverage in this environment where debt levels have increased from US$378 million as at the end 2006 to a forecast US$1.6 billion as at December 2008 in the absence of a comparable increase in revenue and EBITDA, and (iii) the expectation that the company will be continuing to report weak operating performance and negative operating cash flow looking ahead into 2009. Moody's regards Sistema-Hals as having now become even further reliant upon support from its parent, Sistema. A key consideration in the review - and therefore the continued direct linkage to the assessment already underway with respect to Sistema's credit profile - is not only the willingness but also the capacity of Sistema to provide support in the current market environment acknowledging the role that Sistema has already played to date in providing assistance to Sistema-Hals in the renegotiation of its financing arrangements. Sistema-Hals last rating action was on October 16, 2008 when the ratings were placed on review for downgrade. Sistema-Hals is a 71.1% subsidiary of Sistema JSFC (Ba3, on review for downgrade) and headquartered in Moscow, Russia, is one of the leading property developers in Moscow and the Moscow region, with operations in six regions in Russia as well as Yalta and Kiev in Ukraine. During fiscal year 2007, Sistema-Hals reported revenue of US$452 million and EBITDA of US$64 million (US$163 million excluding stock-based compensation). In the first nine months of 2008, the company reported revenue of US$326 million and EBITDA of US$42.9 million, and a net loss of US$72.5 million. SLAVYANSKIY MECHANICAL: Creditors Must File Claims by Feb. 12 ------------------------------------------------------------- Creditors of CJSC Slavyanskiy Mechanical Plant have until Feb. 12, 2009, to submit proofs of claims to: A. Savelyev Insolvency Manager Severnaya Str. 309 Krasnodar Russia The Arbitration Court of Krasnodar commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?32�2248/08�27/57B. The Debtor can be reached at: CJSC Slavyanskiy Mechanical Plant Druzhby narodov Str. 13 Slavyansk-on-Kuban Russia STROY-PROFIL LLC: Creditors Must File Claims by February 12 ----------------------------------------------------------- Creditors of LLC Stroy-Profil (Construction Materials) have until Feb. 12, 2009, to submit proofs of claims to: A. Savelyev Insolvency Manager Severnaya Str.309 Krasnodar Russia The Arbitration Court of Krasnodar commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?32�4076/08�1/101B. The Debtor can be reached at: LLC Stroy-Profil Voskresenskiy Anapskiy Krasnodarskiy Russia SURAN MINING: Court Names A. Sayfetdinov as Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Bashkortostan appointed A. Sayfetdinov as Insolvency Manager for OJSC Suran Mining Company. The case is docketed under Case No. ?07-2455/07-G-NLV. He can be reached at: Bessonova Str. 2B 450001 Ufa Bashkortostan Russia TERMO-STROY-KOMPLEKT 21: Creditors Must File Claims by Jan. 12 -------------------------------------------------------------- Creditors of LLC Termo-Stroy-Komplekt 21 (TIN 2319038436) (Molded Steel Shape Production) have until Jan. 12, 2009, to submit proofs of claims to: Ye. Romanova Insolvency Manager Office 802 Sotsialisticheskaya Str. 74 344002 Rostov-on-Don Russia The Arbitration Court of Krasnodarskiy commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?32-2487/08-38/68B. The Debtor can be reached at: LLC Termo-Stroy-Komplekt Shosseynaya Str. 2 Sochi Krasnodarskiy Russia ========= S P A I N ========= IM SABADELL: Moody's Assigns Ba2 Rating on EUR121.8 Mil. Notes -------------------------------------------------------------- Moody's Investors Service has assigned these ratings to the debt issued by IM Sabadell Empresas 3, FTA: -- Aaa to the EUR1,409.4 million Series A notes; -- A3 to the EUR208.8 million Series B notes; and -- Ba2 to the EUR121.8 million Series C notes. IM Sabadell Empresas 3, FTA is a securitization fund created with the aim of purchasing a pool of loans granted by Banco de Sabadell, S.A. (Aa3/P-1/B-) to Spanish enterprises and self- employed individuals, out of the scope of any public guarantee programme. According to Moody's, this deal benefits from strong features, including: (i) a strong swap agreement guaranteeing an excess spread of 0.25%; (ii) an excess spread-trapping mechanism through a 12-month "artificial write-off"; (iii) a reserve fund that will be fully funded upfront to cover a potential shortfall in interest and principal; (iv) a trigger whereby if Banco de Sabadell's rating falls below Baa3, a back-up servicer is appointed; and (v) eligibility criteria that will limit the amount of loans in arrears (up to 30 days) at closing date and will prevent the securitization of loans corresponding to the restructuring or refinancing of debts. However, Moody's notes that the deal also has weaknesses, including: (i) high borrower concentration, with the top borrower representing 9.35% of the issuance amount; (ii) lack of pool information to assess the pool concentration by group of borrowers and the occupancy type of mortgaged properties; (iii) regional concentration in Catalonia (40%); (iv) the deferral of interest payments on each of Series B and C, which increases the expected loss on these subordinated series; and (v) the pro-rata amortization of the B and C Series of notes, which leads to reduced credit enhancement of the senior series in absolute terms. These features were reflected in Moody's credit enhancement calculation. As of November 2008, the provisional pool of underlying assets comprised a portfolio of 4,665 loans granted to 4,327 borrowers, all of which are Spanish corporates or self-employed individuals. The loans were originated between 1998 and September 2008, and have a weighted-average seasoning of 2.0 years and a weighted- average remaining term of 9.2 years. The weighted-average interest rate is 5.7%, with the majority of the loans linked to floating reference rates. 49.5% of the outstanding of the portfolio is secured by a first-lien mortgage guarantee over different types of properties (25% residential properties and 9% land), with a weighted-average loan to value equal to 52%. Geographically the pool is concentrated in Catalonia (40%), a natural consequence of the location of the originator. The pool is around 39% concentrated in the "buildings and real estate" sector according to Moody's industry classification. Moody's has based the ratings primarily on these factors: (i) an evaluation of the underlying portfolio of loans; (ii) historical performance and other statistical information; (iii) the swap agreement hedging the interest rate risk; (iv) the credit enhancement provided through the GIC accounts, the excess spread, the reserve fund 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 (October 2044). In Moody's opinion, the structure allows for timely payment of interest and ultimate payment of principal at par with respect to the notes on or before the 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. Moody's initially analyzed and monitors this transaction using the rating methodology for European SME securitizations as described in the Rating Methodology reports "Moody's Approach to Rating Granular SME Transactions in Europe, Middle East and Africa", June 2007 and "Moody's Approach to Rating CDOs of SMEs in Europe", February 2007. Date of previous rating action: assignment of provisional ratings on the December 18, 2008. KING STURGE: Spanish Unit to Enter Into Administration ------------------------------------------------------ Jonathan Brasse at Property Week reports that King Sturge International LLP applied to the Spanish courts to allow its Spanish unit King Sturge Espana to enter into administration proceedings. Property Week relates an administrator is expected to be appointed by the new year. Richard Batten, joint senior partner at King Sturge LLP, as cited by the report, said the Spanish arm had relied too heavily on fees from development-related services such as project management and agency on completed developments. Property Week discloses the company's turnover fell to just EUR2.7 million (GBP2.4 million) for the six months to October, compared with EUR18 million (GBP16.1 million) a year over the previous three years. Mr. Batten added the company, which is 75%-owned by King Sturge International LLP, has bank debts that are due to be repaid, although he declined to state how much was owed, and to whom, Property Week discloses. "There are ongoing discussions with these banks and we are trying to arrive at a solution going forward," Mr. Batten was quoted by Property Week as saying. According to Property Week, a cash injection of about EUR3 million (GBP2.7 million) would have been needed to keep the business going but the shareholders could not reach an agreement. Property Week recounts King Sturge Espana general manager Sergio Martinez, who holds a 25% stake in the company, quit his post. He has been replaced with Lucio Gomez, Property Week notes. About King Sturge International LLP King Sturge International LLP -- http://www.kingsturge.co.uk/-- provides property services to owners and occupiers in the UK industrial, office, retail and leisure and residential sectors through over 1,400 people in 26 locations. The company's services include agency, asset management, building consultancy, business recovery, corporate real estate services, investment, landlord and tenant, planning and valuations. It also offers a complete range of financial services to the property sector and plant & machinery valuations and sales. About King Sturge Espana King Sturge Espana -- http://www.kingsturge.es/en/-- employs a staff of 150 property consultants in five offices across Spain - Madrid, Barcelona, Valencia, Getafe and Tarragona. TDA CCM: Moody's Assigns Ba3 Rating on EUR100MM Series C Notes -------------------------------------------------------------- Moody's Investors Service has assigned these definitive ratings to the debt issued by the Spanish securitization fund TDA CCM EMPRESAS 1, Fondo de Titulizacion de Activos: -- Aaa to the EUR240.0 million Series A notes; -- A3 to the EUR60.0 million Series B notes; -- Ba3 to the EUR100.0 million Series C notes; TDA CCM EMPRESAS 1, FTA is a securitization fund created to purchase a pool of loans granted by Caja Castilla-La Mancha to Spanish corporates. This is the first SME transaction launched by CCM. In Moody's view, the strengths of this transaction include, among others: (i) a swap agreement guaranteeing the weighted-average margin on the notes plus an excess spread of 0.50%; (ii) a 27.5% reserve fund, which can be used to cover potential interest and/or principal shortfalls; this reserve has a liquidity ledger that provides liquidity protection to the structure; (iii) a commingling reserve equal to 5% of the initial portfolio; and (iv) the triggers in place to mitigate servicer disruption risk. However, Moody's notes that the transaction includes several challenging features, namely: (i) the obligor concentration of the portfolio, with the top debtor accounting for 7.72%; (ii) geographical concentration in the regions of Madrid and Albacete; (iii) exposure to the building and real estate sector; (iv) pro- rata amortization of the notes; and (v) the negative impact of the interest deferral trigger on the subordinated series. These risks were taken into account in the credit enhancement calculation. As of December 2008, the provisional pool of underlying assets comprised a portfolio of 3,625 loans and leases granted to 3,053 borrowers. 100% of the loans hold a personal guarantee. Geographically, the pool is concentrated in Madrid (29%) and Albacete (21%), and around 45% of the portfolio is concentrated in the "buildings and real estate" sector according to Moody's industry classification. At closing, the management company will determine the final portfolio based on a random selection, after having eliminated receivables that are more than 30 days in arrears. Moody's initially analyzed and monitors this transaction using the rating methodology for EMEA SME ABS transactions as described in the Rating Methodology report, June 2007. Moody's based the provisional ratings primarily on: (i) an evaluation of the underlying portfolio of loans; (ii) historical performance and bank internal information; (iii) the swap agreements hedging the interest rate risk; (iv) the credit enhancement provided by the reserve fund, the subordination of the notes, and the excess spread; and (v) the legal and structural integrity of the transaction. The ratings address the expected loss posed to investors by the legal final maturity (February 2029). In Moody's opinion, the structure allows for timely payment of interest and ultimate payment of principal on or before the 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. Date of previous rating action: Assignment of provisional ratings on the December 17, 2008. =========== S W E D E N =========== FORD MOTOR: Moody's Lowers Ratings Deeper Into Junk Territory ------------------------------------------------------------- Moody's Investors Service lowered the Corporate Family Rating and Probability of Default Rating of Ford Motor Company to Caa3 from Caa1 and lowered the company's Speculative Grade Liquidity rating to SGL-4 from SGL-3. The outlook is negative. The downgrade reflects the increased risk that Ford will have to undertake some form of balance sheet restructuring in order to achieve the same UAW concessions that General Motors (GM) and Chrysler are likely to achieve as a result of the recently-approved government bailout loans. Such a balance sheet restructuring would likely entail a loss for bond holders and would be viewed by Moody's as a distressed exchange and consequently treated as a default for analytic purposes. Bruce Clark, Senior Vice President with Moody's said, "In return for its loans to GM and Chrysler, Washington is going to demand that all stake holders step up and make sacrifices. This will mean wage and benefit concessions from the UAW, and haircuts to debt for creditors." Clark went on to explain, "Even if Ford ends up not needing government loans because of its stronger liquidity position, the company must have UAW parity with GM and Chrysler. But, the UAW is unlikely to make concessions to Ford unless Ford's creditors also bear some pain in the form of a debt restructuring." The terms of the recently-approved US$17.4 billion in short-term government financing for GM and Chrysler include important operational and financial targets. Substantial progress in achieving these targets will be important to: the government's decision to extend these loans beyond March 31, 2009; the provision of any additional funds that might be needed; and, the restoration of the companies' operational competitiveness. These targets include substantial wage and benefit concessions by the UAW and a reduction in debt by as much as two-thirds through a debt for equity exchange. Moody's expects that considerable progress will be made in both of these targeted areas. Ford has maintained that it is not facing a near-term liquidity shortfall, and it is not seeking short-term financial assistance from the government. Rather, it has requested the provision of up to US$9 billion in bridge financing that would be available should market and demand conditions during 2009 be worse than the company anticipates. Nevertheless, if GM and Chrysler achieve UAW concessions in conjunction with a forced reduction in debt, Moody's believes it will be critical for Ford to obtain similar labor concessions in order to remain competitive. However, Ford is unlikely to receive those concessions in the absence of some form of debt reduction that would entail a loss to bond holders. Moody's expects that the framework of the government loans extended to GM and Chrysler will create considerable labor and cost of capital motivations for Ford to undertake a debt restructuring even if the company does not have to draw on bailout funds from the government. Moreover, it is possible that the provision of the committed borrowing facility that Ford is requesting from the government could have labor concession and debt reduction provisions similar to those contained in the loans granted to GM and Chrysler. Ford's liquidity position at September 30, 2008 consisted of US$18.9 billion in cash and US$10.7 billion in undrawn committed credit facilities. The company believes that this liquidity profile, combined with the cash saving initiatives it is undertaking, should enable it to fund itself through 2009. However, the weak outlook for the US economy, depressed consumer confidence, and falling automotive demand in the US and Europe could severely strain the company's liquidity position during 2009. Ford's current operating plan anticipates that US light vehicle sales will approximate 12.2 million units during 2009. This planning assumption is significantly higher than the 10.3 million seasonally adjusted annual rate of US automotive shipments for November. As a result of these mounting operating pressures Ford's Speculative Grade Liquidity rating was lowered to SGL-4, indicating weak liquidity during the coming 12 to 15 months. These same operating pressures result in the negative rating outlook. The last rating action on Ford was an affirmation of the company's Caa1 Corporate Family Rating on December 3, 2008. The principal methodology used in rating Ford was Moody's Global Automotive Manufacturer Methodology, which can be found at http://www.moodys.comin the Credit Policy & Methodologies directory, in the Ratings Methodologies subdirectory. Other methodologies and factors that may have been considered in the process of rating this issuer can also be found in the Credit Policy & Methodologies directory." Ford Motor Company, headquartered in Dearborn, MI, is a leading global automotive manufacturer. ===================== S W I T Z E R L A N D ===================== ACEVANTAGE MANAGEMENT: Creditors Must File Claims by Jan. 1 ----------------------------------------------------------- Creditors owed money by LLC ACEvantage Management Beratung are requested to file their proofs of claim by Jan. 1, 2009, to: Marcus Johannes Meissner Liquidator Sommerhaldenstrasse 19B 5405 Baden-Dattwil Switzerland The company is currently undergoing liquidation in Baden. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Nov. 17, 2008. AUF DEM STEI: Deadline to File Proofs of Claim Set Jan. 1 --------------------------------------------------------- Creditors owed money by LLC Auf dem Stei are requested to file their proofs of claim by Jan. 1, 2009, to: Zwislenstrasse 15 9056 Gais Switzerland The company is currently undergoing liquidation in Gais. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Nov. 13, 2008. CRYSTAL CREDIT: S&P Puts All Ratings on CreditWatch Negative ------------------------------------------------------------ Standard & Poor's Ratings Services placed on CreditWatch negative all the classes of principal-at-risk variable-rate notes issued by Crystal Credit Ltd., due to concerns about the potential deterioration in claim activity and potential increase in aggregate losses in that deal. This transaction involves the securitization of payments related to an indemnity-based excess-of-loss retrocession agreement between Swiss Re and Crystal Credit, covering the risk on a defined portfolio of credit reinsurance treaties for the underwriting years 2006 to 2008. Given the stresses observed in the macroeconomic environment and an increase in overall claim activity, S&P is cautious about the level of aggregate losses. In S&P's view, Swiss Re's recent decision to extend the maturity of the notes, coupled with S&P's macroeconomic forecasts, indicates that potential losses may be higher than S&P expected. As such, S&P is placing all classes of notes on CreditWatch negative until S&P receive from Swiss Re additional data on the performance of 2008 to date. S&P expects to receive the 2008 performance information in Q1 2009. S&P will then factor this into its analytical process when resolving the CreditWatch placements. The current ratings reflect the underlying quality of the defined portfolio of credit reinsurance treaties and the structural features that address the financial ability of the issuer to meet full and timely payment of interest and ultimate payment of principal on all classes of notes. Ratings List Ratings Placed On CreditWatch Negative Crystal Credit Ltd. EUR252 Million Principal-At-Risk Variable-Rate Notes Rating ------ Class To From ----- -- ---- A BBB-/Watch Neg BBB- B BB/Watch Neg BB C B/Watch Neg B GENERAL MOTORS: To Mull Alternatives for Saturn, May Sell Brand --------------------------------------------------------------- Sharon Terlep at Dow Jones Newswires reports that General Motors promised to explore alternatives for its Saturn brand, including joining it with another automaker, selling it, or closing the brand, as part of the restructuring plan the company rolled out to secure federal loans. GM's sales chief Mark LaNeve, to try to minimize speculation that the company will kill the Saturn brand, said on Monday that GM is focused on finding a new business model for the "money-losing lineup," promising aggressive incentives beginning in January to move 2009 cars and trucks, Dow Jones relates. According to Dow Jones, GM launched the Saturn brand in 1985 to battle Toyota Motor Co. and Honda Motor Corp. Dow Jones says that despite major investments from GM and an all-new lineup of vehicles, Saturn has struggled with "red ink" and dropping sales for years. Dow Jones quoted Mr. LaNeve as saying, "We have a very successful consumer brand with Saturn. We need to find the right business model. We are completely behind Saturn." GM has received hundreds of letters from Saturn clients supporting the brand, the report states, citing Mr. LaNeve. Mr. LaNeve, according to Dow Jones, said that the franchise agreements GM has with Saturn dealers gives the automaker more freedom to restructure the brand. GM is concentrating on clearing its 2007 and 2008 model-year vehicles from showrooms by year-end, so that the company would be able to make discounts on 2009 vehicles, Dow Jones says, citing Mr. LaNeve. The report quoted Mr. LaNeve as saying, "We need to sell to generate cash. We will be aggressive," on incentives. 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. GENERAL MOTORS: Fitch Downgrades IDR to 'C'; Default Imminent ------------------------------------------------------------- Fitch Ratings has downgraded the Issuer Default Rating of General Motors Corporation to 'C', indicating that default is imminent. The rating action reflects the terms of federal government assistance that were announced, which include a reduction in the company's current debt load. Debt reduction is expected to take the form of a distressed debt exchange, which is a default under Fitch's methodology, although how the exchange is to be accomplished remains highly uncertain. The ability of GM to use equity to address debt and VEBA obligations is very limited given the size of the obligations and GM's current market capitalization. The threat of a bankruptcy remains, given the terms of the federal assistance, and the maturity. Fitch expects the current agreement will be significantly restructured prior to its maturity. Recovery ratings for unsecured holders could move down further from current estimates of 10%-30%. Under GM's plan, unsecured holders could lose 50% immediately under a distressed debt exchange. Recoveries will also be impaired by the potential elimination of any remaining value ascribed to GM's equity interest in GMAC, and the fact that government loans (or loan guarantees) will be placed in a senior position to exiting unsecured debt. Changes to other liabilities, such as health care, and other changes to GMs cost structure will also be factored into the recovery analysis as details become available. Fitch has downgraded these ratings: General Motors Corporation -- IDR to 'C' from 'CCC'; -- Senior secured to 'CCC/RR1' from 'B/RR1'; -- Senior unsecured to 'C/RR5' from 'CCC-/RR5'. General Motors of Canada Ltd. -- Long-term IDR to 'C' from 'CCC'; -- Senior unsecured to 'C/RR5' from 'CCC-/RR5'. INTERPLANO JSC: Creditors Have Until Jan. 1 to File Claims ---------------------------------------------------------- Creditors owed money by JSC Interplano are requested to file their proofs of claim by Jan. 1, 2009, to: Franziska Horber-Stadlin Liquidator Gartenstrasse 2 6300 Zug Switzerland The company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Nov. 11, 2008. KEBAPHAUS HONGG: Proofs of Claim Filing Deadline is Jan. 1 ---------------------------------------------------------- Creditors owed money by LLC Kebaphaus Hongg are requested to file their proofs of claim by Jan. 1, 2009, to: Uste Aziz Im Rank 6 6300 Zug Switzerland The company is currently undergoing liquidation in Zurich. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on July 11, 2008. UBS AG: To Liquidate Two Spanish Hedge Fund Units ------------------------------------------------- Victor Mallet at the Financial Times reports that UBS AG plans to liquidate its hedge fund investment vehicles in Spain. According to the FT, UBS is winding up its funds, UBS Alpha Select Hedge and UBS Stable Growth, after the global financial crisis hit the two-year-old hedge fund sector in the country and generated intense public suspicion about wealth managers in general. UBS Alpha Select Hedge was established in 2007 while UBS Stable was established in 2008, the FT discloses. "It's only in Spain and the reason is the repayments we've had to make and the liquidity conditions in the market," Monica Garay, UBS chief executive in Spain, told the FT. Ms. Garay, however, stressed that the liquidation was unconnected to the suspected US$50 billion investment fraud by Bernard Madoff in New York, the FT relates. She said UBS-managed funds were not exposed to Mr. Madoff either in Spain or elsewhere. The FT meanwhile notes several other Spanish hedge fund units have been closed or reduced in size in recent months. About UBS AG Based in Zurich, Switzerland, UBS AG -- http://www.ubs.com/-- is a global provider of financial services for wealthy clients. UBS's financial businesses are organized on a worldwide basis into three Business Groups and the Corporate Center. Global Wealth Management & Business Banking consists of three segments: Wealth Management International & Switzerland, Wealth Management US and Business Banking Switzerland. The Business Groups Investment Bank and Global Asset Management constitute one segment each. The Industrial Holdings segment holds all industrial operations controlled by the Group. Global Asset Management provides investment products and services to institutional investors and wholesale intermediaries around the globe. The Investment Bank operates globally as a client-driven investment banking and securities firm. The Industrial Holdings segment comprises the non-financial businesses of UBS, including the private equity business, which primarily invests UBS and third-party funds in unlisted companies. =========== T U R K E Y =========== PETROL OFISI: Fitch Affirms Issuer Default Ratings at 'BB-' ----------------------------------------------------------- Fitch Ratings has affirmed Turkey-based Petrol Ofisi A.S.'s Long- term local and foreign currency Issuer Default ratings at 'BB-' (BB minus). Fitch has also affirmed POAS's National Long-term rating at 'AA-(AA minus)(tur)'. The Outlooks on all Long-term ratings are Stable. Fitch has also simultaneously affirmed the senior unsecured rating on the US$175 million notes issued by POAS's 100%-owned and guaranteed subsidiary, PO Oil Financing Ltd, at 'BB-' (BB minus). The ratings reflect POAS's leading market position in the Turkish fuel distribution market (30% market share in diesel sales and 24% in gasoline sales), strong and relatively resilient profit margins, solid free cash flow and low financial leverage. The ratings also incorporate POAS's strong position in fuel storage (25% of domestic capacities). This enables the company to import a substantial proportion of its product volumes and achieve cost- and working capital-related benefits of imported fuels, when compared to purchases from sole domestic refining company Turkiye Petrol Rafinerileri A.S. (TUPRAS, Long-term local currency rating of 'BBB-'/Stable). The ratings also take into account management's plan to increase capital expenditure in the next five years, focusing on petrol station network expansion and modernization, fuel terminals and selected acquisitions in the oil exploration and production segment. The ratings are constrained by the company's high exposure to foreign currency risk given its short position in US$. Within its strategy of becoming a vertically integrated regional energy player, POAS plans to build a large 10 million tones per annum refinery in Ceyhan, Turkey's energy hub. This US$3 billion- US$4 billion project will be conducted together with POAS's two owners, Dogan Sirketler Grubu Holding A.S. and Austria's OMV AG ('A-'/Stable), who are expected to provide most of the project- related funding. The agency notes that POAS, on a standalone basis, does not have the financial capacity to fund a substantial part of the refinery project. Fitch will analyze the impact of the refinery project on POAS's ratings once the financial structure of the transaction is unveiled. Fitch notes that the refinery project may be delayed as the license application process by the Energy Market Regulatory Authority is still pending. In addition, the impact of the current global financial crisis and expectations of a weaker market environment for refining companies may put this project, as well as two competitive refinery projects in Turkey, on hold. The company reported solid cash flow in the first nine months of 2008. EBITDA was up by 37% due to higher distribution margins and increased volumes as growth in diesel and jet fuel more than offset declining petrol volumes. The company has sufficient liquidity - at end-September 2008 it had cash of TRY777 million against short-term debt of TRY358 million. POAS does not have committed bank lines, which is common for Turkish corporates. As a result of its substantial cash position, POAS decided to redeem the US$175 million 5-year Eurobond in December 2008 ahead of its maturity in July 2009. Liquidity related to outstanding letters of credit is largely covered by inventories and trade receivables. POAS's net debt/EBITDA was relatively stable in the past two years. It stood at 0.5x at end-September 2008, up from 0.4x at YE07. SEKERBANK TAS: Fitch Affirms Individual Rating at 'D' ----------------------------------------------------- Fitch Ratings has affirmed Turkey-based Sekerbank T.A.S.'s Long- term foreign and local currency and Short-term foreign and local currency Issuer Default Ratings at 'B', respectively. The agency has simultaneously affirmed Sekerbank's National Long-term rating at 'BBB+(tur)', Individual 'D', Support '5' and Support Rating Floor at 'NF'. The Outlooks for the Long-term IDRs and National Long-term rating are Stable. Sekerbank's ratings reflect a high cost base which constrains profitability, and rapid loan growth which may lead to a deterioration in asset quality. These factors are counterbalanced by declining, though still adequate, capitalization, improved risk management controls and a well diversified core deposit base. The bank's operating profitability remained moderate in Q308, mainly due to a high cost base and growing loan impairment charges, despite strong margins. The high cost base is mainly a reflection of low customer penetration at Sekerbank's large branch network which is due to the bank's focus on small-sized and micro businesses which are more labor intensive to manage compared to corporate and commercial lending. The loan portfolio is dominated by short-term Turkish lira SME loans. The impaired loan ratio improved to 3.55% at end-Q308, mainly due to substantial write-offs, collections, and also aided by loan growth. Reserve coverage remained strong at 110% at end-Q308. However, the bank's rapid loan growth will increase potential asset quality risks when loans season, especially in a tougher economic environment. The bank's stable, well-diversified core deposit base remains its main strength and major funding source, which also serves to partly mitigate liquidity risk. Fitch eligible capital equaled 14.30% of weighted risk at end-Q308, mainly reflecting strong growth in risk weighted assets and also additional regulatory capital charges. Sekerbank envisages slower loan growth of 15% in 2009 and plans to increase paid-in capital by TRY100 million in H109. Sekerbank's adequate capitalization provides a buffer against potential risks which might arise from recent rapid loan growth and a volatile operating environment. The bank's pension fund and TuranAlem Securities JSC of Kazakhstan have each held 33.98% of Sekerbank's shares since March 2007. The remaining shares are publicly held. Sekerbank, which provides a full range of banking services through its 250 branches, has increasingly focused on SMEs, including micro borrowers and agricultural customers, and retail lending. TURKIYE PETROL: Fitch Affirms LT Foreign Currency IDR at 'BB' ------------------------------------------------------------- Fitch Ratings has affirmed Turkiye Petrol Rafinerileri A.S's Long- term local currency Issuer Default rating at 'BBB-' (BBB minus) and Long-term foreign currency IDR at 'BB' (the latter is capped by the Country Ceiling of Turkey). The Outlooks for both Long- term ratings are Stable. The National Long-term rating is also affirmed at 'AAA(tur)' with a Stable Outlook. The ratings reflect TUPRAS's leading position in the Turkish oil refining and marketing sector, refining margins that exceed regional benchmarks, its strong position in Turkey's storage market, solid cash flow from operations, and also its prudent financial policy that is reflected in low financial leverage. The ratings are constrained by TUPRAS's generous dividend policy, substantial capex program (largely related to a delayed coker project) and its exposure to foreign currency risk given the company's short position in the US dollar. Fitch expects that the US$1.6 billion delayed coker project, which TUPRAS plans to fund primarily with debt, as well as other investments, will result in higher financial leverage in the next five years. However, the agency anticipates that leverage will peak at around 1.0x net debt to EBITDA in 2011-2012 (assuming similar market conditions as in 2008), which it still considers commensurate with TUPRAS's rating level given the company's business profile. In addition, the coker project, once completed in 2013, will enhance the company's business profile due to an improvement in the refining product mix (particularly as a result of increased production of diesel) and stronger EBITDA, which will likely have a positive impact on the credit profile. The ratings also take into account high business risks in the refining sector given its cyclicality and capital intensity. The agency expects the market environment for refiners in Europe to worsen in 2009 and 2010 as the global economic slowdown and new refining capacity coming on stream will impact refining margins, which have remained strong since 2004. The company's solid cash flow generation, partly driven by its strong domestic position in the refining sector as the sole refiner, may weaken when new refining capacity is commissioned in Turkey in the next 5-10 years. There are currently three large refinery projects planned with total refining capacity of around 35 million tones per annum compared to TUPRAS's existing capacity of 28.1 mpta. The new refineries planned to be built in Ceyhan are expected to sell refined products on the undersupplied domestic market and also export markets. Fitch believes that the impact of the current global financial crisis and expectations of a weaker refining market environment may put some of those projects on hold. TUPRAS has sufficient liquidity - as at end-September 2008 its short-term debt of TRY309 million was comfortably covered with cash of TRY487 million. The company does not have committed bank facilities, which is common among Turkish corporates. Its net debt to EBITDA ratio stood at a solid 0.1x at end-September 2008. VESTEL ELEKTRONIK: S&P Cuts LT Corporate Credit Rating to 'B-' -------------------------------------------------------------- Standard & Poor's Ratings Services said that it lowered its long- term corporate credit rating on Turkey-based consumer electronics and white goods manufacturer Vestel Elektronik Sanayi Ve Ticaret A.S. to 'B-' from 'B'. The outlook is negative. At the same time, S&P lowered the issue rating on the US$225 million guaranteed notes issued by Vestel Electronics Finance Ltd. to 'B-' from 'B', in line with the corporate credit rating. The notes carry a recovery rating of 4, indicating S&P's expectation of average (30%-50%) recovery in the event of a payment default. At Sept. 30, 2008, Vestel had gross unadjusted debt of about US$543 million. "The downgrade reflects Vestel's continued low headroom under its financial covenants in a very difficult operating environment, including in the key business of TV exports to the EU," said Standard & Poor's credit analyst Patrice Cochelin. The rapid demand shift to flat (liquid crystal display, or LCD, and plasma) TVs away from cathode ray tube based models continues to challenge Vestel's volume growth. Vestel's competitive and flexible manufacturing base and the Turkish lira's recent weakening against the euro should continue to support the company's competitiveness, however. Support from diversified group Zorlu (not rated), Vestel's owner, could become increasingly important, including through a planned TRY160 million restricted cash rights issue, for which Vestel is awaiting regulatory approval. The rights issue would be a positive development for Vestel's credit quality. "The negative outlook reflects S&P's concerns about the group's trading prospects, weak margins, and tight liquidity," said Mr. Cochelin. S&P could lower the ratings if the company's liquidity position does not rapidly improve. S&P would deem any discounted exchange offer for the US$225 million bonds -- currently trading at low levels -- as distressed given the company's weak liquidity and deteriorating trading environment. The execution of distressed exchange offers are tantamount to default under S&P's criteria. It should be noted that S&P has no indication that Vestel's management intends to explore such a route, but also that many low-rated companies have recently executed or considered discounted exchange offers. S&P could revise the outlook to stable if Vestel uses proceeds from the planned TRY160 million cash rights issue from Zorlu Holding for gross debt reduction -- notably reducing its reliance on short-term funding -- and improves covenant headroom. ============= U K R A I N E ============= AKTAR LLC: Creditors Must File Claims by January 4 -------------------------------------------------- Creditors of LLC Aktar (EDRPOU 32536938) have until Jan. 4, 2009, to submit proofs of claim to: Mrs. Helen Fink Liquidator / Insolvency Manager Apt. 322 Panphilov avenue, 1 83048 Donetsk Ukraine The Arbitration Court of Donetsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed as 42/156b. The Economic Court of Donetsk Artema Str. 157 83048 Donetsk Ukraine The Debtor can be reached at: LLC Aktar Ovnatanian Str. 4 83017 Donetsk Ukraine AVT COURIER: Creditors Must File Claims by January 4 ---------------------------------------------------- Creditors of LLC AVT Courier (EDRPOU 32524063) have until Jan. 4, 2009, to submit proofs of claim to: Mrs. Zhanna Efremova Liquidator Apt. 89 Lesnoy avenue, 15 Kiev Ukraine The Arbitration Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Nov. 20, 2008. The case is docketed as 44/405-b. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC AVT Courier Volgogradskaya Str. 41-A 03141 Kiev Ukraine BROCARD LLC: Creditors Must File Claims by January 4 ---------------------------------------------------- Creditors of LLC Brocard (EDRPOU 31976799) have until Jan. 4, 2009, to submit proofs of claim to: The Economic Court of Odessa Shevchenko Avenue 29 65032 Odessa Ukraine The Arbitration Court of Odessa commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 3, 2008. The case is docketed as 2/217-08-4995. The Debtor can be reached at: LLC Brocard Black See Kosatstvo Str. 72 Odessa Ukraine ENERGYTRANSINVEST CJSC: Creditors Must File Claims by Jan. 3 ------------------------------------------------------------ Creditors of CJSC Corporation Energytransinvest (EDRPOU 32209097) have until Jan. 3, 2009, to submit proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Arbitration Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Nov. 19, 2008. The case is docketed as 23/155-b. The Debtor can be reached at: CJSC Corporation Energytransinvest Kikvidze Str. 18-A 01103 Kiev Ukraine GOROKHOV BREADRECEIVING: Creditors Must File Claims by Jan. 4 ------------------------------------------------------------- Creditors of OJSC Gorokhov Breadreceiving Enterprise have until Jan. 4, 2009, to submit proofs of claim to: State Tax Inspection in Gorokhov District Liquidator: Zelenaya Str. 4 Gorokhov 45700 Volin Ukraine Tel: 0337921334 The Arbitration Court of Volin commenced bankruptcy proceedings against the company after finding it insolvent on Nov. 20, 2008. The case is docketed as 1/137-B. The Economic Court of Volin Volia Avenue 54-a 43010 Lutsk Volin Ukraine The Debtor can be reached at: OJSC Gorokhov Breadreceiving Enterprise Privokzalnaya Str. 17 Marianovka Gorokhov Volin Ukraine NOVOSELITSA FOOD: Creditors Must File Claims by January 3 --------------------------------------------------------- Creditors of OJSC Novoselitsa Food-Flavouring Plant (EDRPOU 00380913) have until Jan. 3, 2009, to submit proofs of claim to: Mr. Rabaniuk Victor Liquidator Zalozetsky Str. 38/1 58022 Chernovcy Ukraine Tel: 8(095)362-6813 The Arbitration Court of Chernovcy commenced bankruptcy proceedings against the company after finding it insolvent on Nov. 24, 2008. The case is docketed as 10/159/B. The Economic Court of Chernovcy O. Kobylianska Str. 14 58000 Chernovcy Ukraine The Debtor can be reached at: OJSC Novoselitsa Food-Flavouring Plant Lenin Str. 93 Novoselitsa 63000 Chernovcy Ukraine TECHNOPLAST-007 LLC: Creditors Must File Claims by January 3 ------------------------------------------------------------ Creditors of LLC Company Technoplast-007 (EDRPOU 35700798) have until Jan. 3, 2009, to submit proofs of claim to: LLC Special Technology-XXI Liquidator Apt. 173 Barabashov Str. 46 61168 Kharkov Ukraine Tel: 8(097)4757686 The Arbitration Court of Kharkov commenced bankruptcy proceedings against the company after finding it insolvent on Nov. 26, 2008. The case is docketed as B-39/156-08. The Economic Court of Kharkov Derzhprom 8th Entrance Svoboda Square 5 61022 Kharkov Ukraine The Debtor can be reached at: LLC Company Technoplast-007 Krasnoshkolnaya naberezhnaya Str. 16 61010 Kharkov Ukraine =========================== U N I T E D K I N G D O M =========================== BETTER REMOVALS: Appoints Joint Liquidators from Tenon Recovery --------------------------------------------------------------- S. J. Parker and T. J. Binyon of Tenon Recovery were appointed joint liquidators of Better Removals Ltd. on Dec. 2, 2008, for the creditors' voluntary winding-up proceeding. The company can be reached through Tenon Recovery at: Sherlock House 73 Baker Street London W1U 6RD England CORIOLANUS LIMITED: Moody's Cuts Rating on US$10 Mln Notes to Caa2 ------------------------------------------------------------------ Moody's Investors Service has downgraded its rating of one class of notes issued by Coriolanus Limited. The transaction is a managed synthetic CDO referencing a pool of 131 corporate names. 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; Fannie Mae and Freddie Mac, which were placed into the conservatorship of the U.S. government on September 8, 2008; and three Icelandic banks, specifically Kaupthing Bank hf, Landsbanki Islands hf, and Glitnir Banki hf. 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 ratings of the tranches in this transaction. Moody's initially analyzed and continues to monitor this transaction using primarily the methodology and its supplements for corporate synthetic CDOs as described in Moody's Special Reports: -- Moody's Approach To Rating Synthetic CDOs (July 2003) -- Moody's Revisits Its Assumptions Regarding Corporate Default (and Asset) Correlations for CDOs (November 2004) -- Understanding Collateral Risks of Funded Synthetics in CDOs (June 2006) The rating action is: Coriolanus Limited: (1) The Series 71 US$10,000,000 Floating Rate Secured Portfolio Credit-linked Notes due June 2017 -- Current Rating: Caa2 -- Prior Rating: Aa3 -- Prior rating action: 15 August 2007, assigned Aa3 CRUST LANE: Brings in Joint Liquidators from Baker Tilly -------------------------------------------------------- Peter John Robertson Souster and Michael Rollings of Baker Tilly Restructuring and Recovery LLP were appointed joint liquidators of Crust Lane Davis LLP on Dec. 5, 2008, for the creditors' voluntary winding-up proceeding. The company can be reached through Baker Tilly Restructuring and Recovery LLP at: 5 Old Bailey London EC4M 7AF England DUNCANNON CRE: S&P Cuts Ratings on Cl. E1 and E2 Notes to Low-B --------------------------------------------------------------- Standard & Poor's Ratings Services lowered and placed on CreditWatch negative its credit ratings on the class A to E-2 notes issued by Duncannon CRE CDO I PLC due to collateral performance concerns. The ratings on the class X and RCF notes remain unaffected. The notes were issued in 2007 and were used to acquire a portfolio of loans backed by pan-European commercial real estate. The portfolio has a concentration of junior debt, representing 55% of the loans by principal balance outstanding. Approximately 40% of the portfolio by balance is secured by assets located in the U.K. The rating actions are the result of S&P's increased concerns about the future performance of the underlying collateral given the portfolio's exposure to junior debt and the U.K. property market. S&P expects to publish a full report in the early part of 2009. Ratings List Duncannon CRE CDO I PLC EUR808.75 Million Senior And Mezzanine Deferrable-Interest Floating-Rate Notes Ratings Lowered And Placed On CreditWatch Negative Ratings ------- Class To From ----- -- ---- A AA/Watch Neg AAA B A/Watch Neg AA C1 def BBB/Watch Neg A C2 def BBB-/Watch Neg A- D1 def BB+/Watch Neg BBB+ D2 def BB/Watch Neg BBB D3 def BB-/Watch Neg BBB- E1 def B/Watch Neg BB E2 def B-/Watch Neg BB- EVOLUTION MORTGAGE: Taps Joint Liquidators from Tenon Recovery -------------------------------------------------------------- Peter John Forsey and Nick Simmonds of Tenon Recovery were appointed joint liquidators of Evolution Mortgage Planning Ltd. on Dec. 5, 2008, for the creditors' voluntary winding-up proceeding. The company can be reached at: Evolution Mortgage Planning Ltd. 54 Clarendon Road Watford WD17 1DU England FREE RADICAL: Goes Into Administration -------------------------------------- Tanya Holden at thisisnottingham.co.uk reports that computer games company Free Radical Design has gone into administration. It is understood the company, which employs 185 people, had been working on a Star Wars game for LucasArts, but the deal fell through in October after two years of development, the report recounts. The administrators, the report relates, are expected to put the business up for sale. "We are very confident that we will achieve a sale if we decide to market the business," Cameron Gunn, of Resolve Partners, was quoted by the report as saying. "It's a testament to the employees and the regard of the company that a significant interest has already been shown." According to the report, a number of publishers have shown an interest in buying Free Radical Design, although Mr. Gunn would not disclose what companies had shown an interest in the company, or how many. Mr. Gunn, as cited by the report, said "No one has yet been made redundant and all staff have been paid until the end of December." Free Radical was founded in 1999 by former Rare developers including David Doak, Steve Ellis, Graeme Norgate and Karl Hilton. HOLMES MASTER: S&P Assigns 'BB' Rating on GBP190 Mln Class D Notes ------------------------------------------------------------------ Standard & Poor's Ratings Services has assigned its credit ratings to the floating-rate notes series 2008-2 issued by Holmes Master Issuer PLC. The notes are a mixture of scheduled amortization and pass-through notes. This is Abbey National PLC's 16th issuance from its Holmes Funding issuance platform, and the sixth issuance out of Holmes Master Issuer PLC. This structure provides for the creation of a third reserve if the CPR is lower than 15%. The third reserve is funded by funding available revenue receipts. The third reserve required level is 0.5% of the class A outstanding (subject to a floor of GBP1 million). The issuer issued the notes and lent the proceeds to Holmes Funding Ltd. under an intercompany loan agreement. Funding used the money to acquire part of the seller's share of the trust property. Funding pays its obligations to the issuer from the money it receives for this share in the trust property, allowing the issuer to meet its obligations. Ratings List Holmes Master Issuer PLC GBP9.860 Billion and US$5.425 Million Floating-Rate Residential Mortgage-Backed Notes Series 2008-2 Class Rating Amount (Million) ----- ------ --------------- A1 AAA GBP2,000.0 A2 AAA GBP7,000.0 A3 AAA $5,425.0 B AA GBP450.0 C BBB GBP220.0 D BB GBP190.0 KING FINANCE: Calls in Joint Liquidators from Baker Tilly --------------------------------------------------------- John David Ariel and Susan Maund of Baker Tilly Restructuring and Recovery LLP were appointed joint liquidators of King Finance Ltd. on Nov. 28, 2008, for the creditors' voluntary winding-up proceeding. The company can be reached through Baker Tilly Restructuring and Recovery LLP at: 12 Gleneagles Court Brighton Road Crawley West Sussex RH10 6AD England LIGHTMAKER MANCHESTER: Peter Gabriel Acquires Assets ---------------------------------------------------- How-Do reports that rock legend and digital pioneer Peter Gabriel has bought the Manchester site of new media agency Lightmaker out of administration. Citing insiders, How-Do relates that the agency, which was put into administration on December 11, has been struggling over recent months in the economic downturn, forcing it to close offices in Scotland, Boston, San Francisco and Melbourne. Matt Farrar, the managing director of the Manchester outpost of the agency, however, noted that the new operation although distinct from Lightmaker, would be retaining the same staff and building, How-Do discloses. "The economy has been effecting everyone," Mr. Farrar was quoted by How-Do as saying. "It became apparent that it was becoming harder to chase the funds that were owed to us for the inter-group work that we had been carrying out� and that made us uneasy about exactly what was going on." According to How-Do, the agency struggled to meet wage demands. Mr. Farrar told How-Do at the end of November he was informed by HSBC that the agency's funds had run dry and they would not provide the facility to cover the staff wages. QUEBECOR WORLD: Appoints Joint Liquidators from Ernst & Young ------------------------------------------------------------- Ian Best and David Kenneth Duggins of Ernst & Young LLP were appointed joint liquidators of Quebecor World Plc on Dec. 3, 2008, for the creditors' voluntary winding-up proceeding. The company can be reached through Ernst & Young LLP at: One Bridewell Street Bristol BS1 2AA England RANK GROUP: Like-For-Like Revenue Down 7% for 50-Wks Ended Dec. 14 ------------------------------------------------------------------ The Rank Group Plc released trading results for the 50 weeks to December 14, 2008. Group Rank said "During the 15 weeks to December 14, 2008, we achieved 1% growth in like-for-like revenue. This period covers Group trading since the anniversary of the Gambling Act (implemented on September 1, 2007) and reflects the actions taken in Mecca Bingo and Grosvenor Casinos to counter the negative effects of the Act. "For the 50-week period to December 14, 2008, Group like-for-like revenue declined by 7%, with total revenue down by 5%. Over the course of the year, we have reduced operating costs and taken a number of actions to strengthen the Group's financial position. Mecca Bingo "During the 15 weeks to December 14, 2008, like-for-like revenue in Mecca Bingo was in line with the comparable period in 2007, with a 5% increase in spend per head offsetting a 5% decline in admissions. "For the year to week 50, like-for-like revenue declined by 11% with admissions down by 11% and spend per head up 1% on the first 50 weeks in 2007. "A statutory order to increase the maximum entitlement of B3 gaming machines (GBP1 maximum stake and GBP500 maximum prize) in bingo clubs from four to eight was laid before Parliament on 24 November 2008. We expect to install an additional 300 B3 gaming machines in our Mecca Bingo clubs, should the provisions of the order take effect during the first quarter of 2009. "In addition, the Group continues to seek opportunities to develop adult gaming centers within Mecca Bingo properties and currently has 80 operating with a further 10 licenses approved. As a consequence of this program, we have now deployed more than 310 B3 gaming machines in addition to the 406 in operation at the start of the year. Top Rank Espana "Trading at our Spanish bingo clubs business, Top Rank Espana, remained difficult as a result of high levels of unemployment and weak consumer confidence in Spain. In local currency, revenue declined by 9% for the 15 weeks to December 14, 2008, with admissions down by 3% and spend per head 6% lower than in the comparable period in 2007. This was offset by the strength of the Euro against Sterling, which resulted in a 4% increase in reported revenue. "For the first 50 weeks of the financial year, revenue in local currency was down 5% with admissions and spend per head both lower than in 2007. Reported revenue (Sterling) for the period rose by 6%. Grosvenor Casinos "During the 15 weeks to December 14, 2008, like-for-like revenue in Grosvenor Casinos grew by 4%. Higher average handle and an improved win margin resulted in a 16% increase in spend per head, which offset a 12% decline in admissions. "Our London casinos grew revenue by 8% in the period with admissions down 3% and spend per head up 11%. Revenue from our provincial casinos was down by 1% versus the comparable period in 2007 with a 15% rise in spend per head mitigating a 14% decline in admissions. "For the period covering the first 50 weeks of the financial year, like-for-like revenue declined by 3% with admissions down 14% and spend per head up 10%. "At the end of October, we opened the G Casino Aberdeen, our first casino in Scotland and our sixth in the UK under the G Casino brand. During the first quarter of 2009 we will convert our Bolton casino to the G Casino brand. Blue Square "During the 15 weeks to December 14, 2008, like-for-like revenue from Blue Square, our interactive gaming and betting business, increased by 1%. The performance of meccabingo.com continued to drive revenue growth from gaming, although sportsbook remained disappointing. For the first 50 weeks of the financial year, Blue Square's revenue grew by 3%. "On December 3, 2008, Mark Jones was appointed managing director of Blue Square. Mark has considerable experience in online retail, having founded Online Travel Corporation and been UK managing director of lastminute.com. Value Added Tax (VAT) "On November 10, 2008, we received from Her Majesty's Revenue & Customs (HMRC) GBP59.1 million in overpaid VAT, following the VAT & Duties Tribunal's ruling in May that the application of VAT to games of interval bingo contravened European Union law. The benefit will be partially offset by higher gross profits tax and associated costs. "Also as a result of the Tribunal's ruling, we have not paid VAT on revenues from interval game bingo since July 1, 2008. "Following consultation with our auditors, PricewaterhouseCoopers, we now intend to recognize in our financial statements, the effects of both the VAT repayment from HMRC and the ongoing non- payment of VAT on games of interval bingo. We estimate that this will benefit Mecca Bingo's revenues by approximately GBP13 million and increase operating profit by approximately GBP6 million in the current year. Also, we will recognize a one-off exceptional gain of GBP44 million in Group profit before tax, which reflects the element of the net VAT repayment relating to the period 2003 to 2007. "In order to ensure comparability with prior periods, the effect of this change in VAT treatment is not reflected in this trading statement's revenue disclosure for either the Group or for Mecca Bingo. "HMRC has appealed the ruling of the Tribunal and this appeal is scheduled to be heard during the first quarter of 2009. Financing "Rank's convertible bonds mature in January 2009. It remains the Group's intention to redeem the bonds using the available headroom under existing banking facilities put in place in April 2007 and which are committed until 2012. Outlook "While the outlook for the UK economy in 2009 is uncertain, Rank has taken a number of key actions this year to strengthen the Group's position - stabilizing trading; reducing operating costs; and exiting its final salary pension plan - and the Board is confident in the Group's longer-term strategy. Trading for the current financial year remains in line with market expectations." About Rank Group Headquartered in London, United Kingdom, Rank Group PLC -- http://www.rank.com-- is an international leisure and entertainment company. The Group provides services to the film industry, including film processing, video duplication and cinema exhibition. The Group's leisure and entertainment activities entail gambling services, encompassing Mecca Bingo Clubs and Grosvenor Casinos, and owned and franchises Hard Rock cafes. * * * Rank Group plc continues to carry a B1 corporate family rating from Moody's Investors Service, while its subsidiary Rank Group Finance Plc carries a B3 debt rating. The ratings were confirmed in June 2008. The rating outlook is negative. RECOMAC SURFACING: Road Spraying Buys Business; 15 Jobs Saved ------------------------------------------------------------- The joint administrators of Recomac Surfacing Ltd in a press statement on Monday, December 22, 2008, announced that the company's business and assets have been sold to Road Spraying Ltd. The sale secures a total of 15 jobs. Paul Flint and Brian Green from KPMG Restructuring in Manchester were appointed joint administrators to Recomac on October 28 2008. The sale and purchase agreement also provides a three month option for Road Spraying to acquire Recomac's trading premises based in Kearsley, Manchester. Paul Flint, associate partner, KPMG Restructuring in Manchester, commented, "In addition to securing fifteen jobs, this deal demonstrates that even in this increasingly difficult economic climate, we have the tenacity and the creativity to identify and deliver finance solutions to ensure that deals can still be done." Based in Manchester Recomac Surfacing Ltd manufactures specialist surfacing for motorways, roads, car parks and footpaths. 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. RICHMOND HILL: Operations Continuing Despite Owner's Collapse ------------------------------------------------------------- Ian Mason at Richmond Twickenham Times reports that it is business as usual at Richmond Hill Hotel despite its owner Folio Hotels Group going into administration. "People are guaranteed their jobs and do get paid. We are running as if nothing has happened because we still need people to serve the customers," Richmond general manager Mark Barber was quoted by the report as saying. "We are honoring bookings and still taking bookings," Mr. Barber stressed. "We are just being operated under an administrator rather than a head office." The report relates the administration firm MCR has taken responsibility of contracts for the 65 permanent workers at the 149-bedroom hotel. Mr. Barber meanwhile disclosed Folio Hotels, which has an annual turnover of around GBP70 million, is set to streamline its portfolio of hotels from 36 to 20. He, however, was optimistic a management buyout could be completed before Christmas for the remaining properties, including Richmond. ROBERT WYPER: Goes Into Provisional Liquidation ----------------------------------------------- Martin Williams at The Herald reports that Robert Wyper's car firm Robert Wyper Ltd has gone into provisional liquidation. Charles Moore of Glasgow-based Moore & Co. has been appointed provisional liquidator. According to the report, a collection of used vehicles from the Renault dealership in Dean Street, which is understood to have employed more than 20 staff, has been removed for auction and the workshop and sales departments have closed down. The report relates that Mr. Moore said Renault decided to terminate its dealership agreement with Wyper and repossess the cars that were located at the company's garage in Kilmarnock following a failed payment. "Once that happened the business of the company was at the end. It was then decided just to put the company into liquidation because it was clear also the company was insolvent," Mr. Moore was quoted by the report as saying. The liquidator, the report notes, was still trying to assess the amount of debt left by the company. SCHOLASTIC CORP: Moody's Puts 'Ba1' CFR on Review for Likely Cut ---------------------------------------------------------------- Moody's Investors Service placed Scholastic Corporation's Ba1 Corporate Family rating, Ba1 Probability of Default rating and Ba2 senior unsecured note ratings on review for possible downgrade. The review is prompted by Moody's concern that cutbacks in consumer and educational spending will continue to create revenue pressure and make it difficult for Scholastic to improve its credit metrics to the levels necessary to maintain the Ba1 rating. Debt-to-EBITDA leverage (approximately 4.0x LTM 11/30/08 incorporating Moody's standard adjustments) and free cash flow are currently weak for the rating. LGD rates were updated based on the current debt mix. On Review for Possible Downgrade: Issuer: Scholastic Corporation -- Corporate Family Rating, Placed on Review for Possible Downgrade, currently Ba1 -- Probability of Default Rating, Placed on Review for Possible Downgrade, currently Ba1 -- Senior Unsecured Regular Bond/Debenture, Placed on Review for Possible Downgrade, currently Ba2, LGD5 - 89% (from LGD6 - 90%) Outlook Actions: Issuer: Scholastic Corporation -- Outlook, Changed to Rating Under Review For Possible Downgrade From Negative In the review, Moody's will evaluate Scholastic's revenue outlook including the potential that consumers and school districts trade down to lower priced items and lengthen re-order cycles in response to budget pressures. Moody's will consider Scholastic's ability to mitigate any softness in client spending through new product introductions such as the System 44 reading intervention program, cost saving initiatives and rationalization of the business portfolio in order to improve free cash flow and credit metrics. In addition, Moody's will review the company's planned capital allocation strategy in light of recent increases in share repurchase activity and the introduction of a quarterly dividend. Moody's will also evaluate the liquidity position, although the company has capacity under its financial covenants to absorb incremental operating weakness. Moody's last rating action on Scholastic was a change in the rating outlook to negative from stable and affirmed the company's Ba1 CFR on June 4, 2007. Scholastic'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 its 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 Scholastic's core industry and Scholastic's ratings are believed to be comparable to those of other issuers of similar credit risk." Scholastic, headquartered in New York, is a publisher and distributor of children's books, classroom and professional magazines, educational technology, and instructional materials, with operations in the United States, Canada, the United Kingdom, Australia, New Zealand and Southeast Asia. Annual revenues approximate US$1.9 billion. SCHOLASTIC CORP: S&P Puts 'BB' Corp. Credit Rating on WatchNeg. --------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'BB' corporate credit rating for New York City-based Scholastic Corp., as well as its issue-level ratings for the company, on CreditWatch with negative implications. Scholastic had US$449 million in debt as of Nov. 30, 2008, including capital leases. "The CreditWatch placement reflects the company's weak operating performance in the second quarter and its meaningful revision to earnings and cash flow guidance," said Standard & Poor's credit analyst Tulip Lim. In the quarter ended Nov. 30, 2008 (the company's most important quarter), revenue declined 3.8% and EBITDA declined 20%. The company reduced its full-year 2009 earnings from operations guidance to a range of US$1.20 to US$1.50 per share, or roughly US$45 million to US$57 million, from a range of US$1.75 to US$2.00 per share, or US$66 million to US$75 million. Business segments posting the largest underperformance in operating income were Children's Book Publishing & Distribution and International. Although revenue declined 1% in Children's Book Publishing & Distribution, operating income declined 9% because of higher reserves for unearned royalty advances, increased bad debt in Trade Publishing, and higher investments in Clubs. International operating income declined 44%, partially because of unfavorable exchange movements. Scholastic now expects cash flow from operations for full-year 2009 of US$55 million to US$80 million, from a previously expected range of US$90 million to US$100 million. S&P is concerned that reduced earnings could lead to a narrowing of headroom under the company's financial covenants. Scholastic ended the quarter with US$30.8 million in cash. The company's term loan due 2012 requires annual principal repayments of US$42.8 million. In resolving the CreditWatch listing, S&P will assess the company's margin of compliance with financial covenants and its near-term earnings prospects. SWIFT-LITE CHARCOAL: Taps Joint Liquidators from Tenon Recovery --------------------------------------------------------------- S. J. Parker and T. J. Binyon of Tenon Recovery were appointed joint liquidators of Swift-Lite Charcoal Company Ltd. on Dec. 1, 2008, for the creditors' voluntary winding-up proceeding. The company can be reached through Tenon Recovery at: Sherlock House 73 Baker Street London W1U 6RD England TATA MOTORS: To Inject Millions Into Jaguar Land Rover ------------------------------------------------------ Jean Eaglesham and Joe Leahy at the Financial Times report that Tata Motors Ltd agreed to inject "tens of million" of pounds into Jaguar Land Rover to prevent an immediate cash flow crisis. The report relates that people close to Tata said the emergency aid provided to Jaguar Land Rover comes on top of "hundreds of millions" of working capital it had provided since it bought the car manufacturer for US$2.3 billion from Ford in March. On Dec. 22, 2008, the TCR-Europe reported that according to BBC News, Business Secretary Lord Mandelson confirmed that the UK government held talks with Jaguar Land Rover over the possibility of state aid for the carmaker. He, however, noted no decision had yet been made, and there was not "an open chequebook", BBC disclosed. "We are analyzing very carefully what is going on in the [car] sector, and we will make good judgments in good time if it is appropriate for the government to take any action or if it is possible for us to do so," Lord Mandelson was quoted by BBC as saying. "I have had discussions with the owners and management of Jaguar Land Rover in particular, because they argue that they are under particular strain." He stressed Tata, owner of Jaguar Land Rover, had first and primary responsibility for the carmaker's financial requirements, BBC noted. About Tata Motors India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the company. The company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. TML is listed on the Bombay Stock Exchange, the National Stock Exchange of India and New York Stock Exchange. It was ultimately 33.4% owned by the Tata Group as of December 2007. Tata Motors has operations in Russia and the United Kingdom. * * * As reported in the Troubled Company Reporter-Asia Pacific on July 9, 2008, Standard & Poor's Ratings Services kept its 'BB' corporate credit rating on India's Tata Motors Ltd. On CreditWatch with negative implications, pending finalization of the long-term financing plans for funding the company's purchase of Jaguar and Land Rover from Ford Motor Co. (B/Watch Neg/--). At the same time, Standard & Poor's ratings on all Tata Motors' rated debt remain on CreditWatch with negative implications. The rating on Tata Motors was lowered on April 4, 2008, to 'BB', from 'BB+', after the announcement of the agreement with Ford Motor Co. for the purchase of Jaguar and Land Rover. Tata Motors paid about US$2.3 billion in cash for Jaguar and Land Rover (comprising brands, plants, and intellectual property rights). Ford contributed US$600 million to the Jaguar-Land Rover (JLR) pension plans. As reported in the Troubled Company Reporter-Asia Pacific on Dec. 2, 2008, Moody's Investors Service downgraded the corporate family rating of Tata Motors Ltd to B1 from Ba2. The outlook remains negative. "The rating change reflects the slowdown in demand seen in both Tata Motors Ltd's domestic and overseas markets. This translates into pressure on profitability, and happens at a time when the company has increased its leverage. Tata Motors Ltd's financial flexibility is therefore significantly weakened," Elizabeth Allen, a Moody's Vice President/Senior Credit Officer said. VEDANTA RESOURCES: Moody's Cuts Corporate Family Rating to 'Ba1' --------------------------------------------------------------- Moody's Investors Service has downgraded to Ba1 from Baa3 the corporate family rating of Vedanta Resources plc. Concurrently, Moody's has downgraded to Ba2 from Ba1 the company's senior unsecured rating. The outlook on the ratings is stable. These rating actions complete the rating review process for possible downgrade initiated on September 10, 2008, when Vedanta announced a substantial investment plan to increase its fully- integrated aluminum smelting capacity to nearly 2.6 million tonnes per annum by 2012. "The ratings downgrade reflects Moody's concerns over Vedanta's plans to continue substantial capital investment at a time when operating cash flow generation will be under pressure due to the very challenging environment for base metals", says Ivan Palacios, a Moody's AVP/Analyst. "Since September 2008, this operating environment has dramatically deteriorated as demand has collapsed and prices for Vedanta's major products have dropped by 40-55%", says Palacios. "The magnitude of the ongoing downturn and the moribund state of the credit markets make it difficult to develop a forecast for the industry and for Vedanta." "There is a lack of visibility as to how much further prices can fall and the state of demand at the new pricing levels," says Palacios. "As a result, Vedanta's credit metrics are expected to weaken over the next 2 years and the timing and speed of any recovery remains uncertain." Although the company has recently cut to around US$6.3 billion from US$9.8 billion the total cost of its aluminum expansion plan, it has other capital requirements, such as planned minority buy- outs, the construction of substantial power generation capacity, and potentially, the acquisition of Asarco, which is currently being renegotiated. These capital spendings remain substantial when compared to other mining companies which are curtailing capital expenditures to conserve cash and manage uncertainty. In addition, the aluminum expansion projects, which will not start to generate significant cash flows until they begin progressive commissioning from March 2010 and are fully commissioned by 2012, will expose Vedanta to execution risk relative to its ability to bring them on-stream on schedule and within budget. However, this risk is partly mitigated by management's demonstrated track record for implementing large-scale projects and the staggered nature of the projects. The stable outlook is underpinned by Vedanta's very strong liquidity profile, as evidenced by high levels of cash and liquid assets in excess of its debt balance, as well as its limited refinancing needs over the next 12 months. Upward pressure on the rating is unlikely over the next 12-18 months. However, positive pressure could develop once the operating environment for base metals stabilizes in terms of demand and price levels and the planned expansion projects start generating the expected returns. On the other hand, the ratings could be downgraded if 1) Vedanta's profitability declines beyond Moody's expectations for FY2009 and FY2010 as a result of further weaknesses in base metals prices, 2) the company undertakes further acquisitions, investments or shareholder remuneration policies that include incremental debt, or 3) faces material disappointments in executing its expansion projects. Credit metrics that Moody's would consider for a ratings downgrade include CFO (less dividends)/Adjusted Debt falling below 15%, Adjusted Debt to EBITDA exceeding 4x, or EBIT interest coverage declining to 3.5x or less on a sustained basis. The last rating action was taken on September 10, 2008, when the ratings of Vedanta were placed under review for possible downgrade. Headquartered in London, UK, Vedanta Resources plc is a metals and mining company focusing on integrated zinc, alumina/aluminum and copper smelting and refining and iron ore mining. Its operations are predominantly located in India. The company is listed on the London Stock Exchange and is 54% owned by Volcan Investments Ltd. WAGON AUTOMOTIVE: To Cut 292 Jobs at Walsall Plant -------------------------------------------------- BBC News reports that 292 jobs at the Walsall manufacturing plant of Wagon Automotive will go after administrators Zolfo Cooper failed to sell the business. The administrators will close the company's Walsall plant, which makes panels and door parts for Honda, Ford, General Motors, Land Rover and Nissan. Its sister site in Coventry, however, remains open, BBC notes. "Understandably, the current trading conditions have made it very difficult to secure an ongoing commitment from Wagon's customers, and we have therefore been left with no option but to close the Brownhills facility," Alastair Beveridge at Zolfo Cooper was quoted by BBC as saying. On Dec. 11, 2008, the TCR-Europe reported that according to the Financial Times, Wagon, which employs 4,500 staff across Europe, went into administration after its banks, led by Royal Bank of Scotland, refused to back an emergency funding package. Wagon , the FT disclosed, had been hit by a downturn in European car sales. Its shares were suspended in October, the FT recalled. WHINSTONE 2: Fitch Assign 'BB' Rating on EUR129 Mln Class C2 Notes ------------------------------------------------------------------ Fitch Ratings has assigned Whinstone 2 Capital Management Limited's currency swap payment obligations on its EUR129 million Class C2 notes due January 2055 a rating of 'BB' with Stable Outlook. The rating reflects that on the Class C2 notes. Whinstone 2 is a fully funded synthetic securitization referencing the performance of Granite Master Issuer plc reserve fund and the Granite Finance Funding 2 Limited reserve fund. The reserve funds, at the closing of Whinstone 2, acted as credit enhancement for six mortgage-backed securitizations launched by Northern Rock plc from GMI. Granite is backed by residential mortgage loans originated by Northern Rock plc. To determine the appropriate rating, Fitch analyzed the swap agreement and underlying transaction documents in conjunction with its criteria report. The rating is based on Fitch's assessment that the currency swap payment obligations rank pro rata and equally with the Class C2 notes. Consequently, the credit profile of the currency swap payment obligations is consistent with the rating of the notes. Whinstone 2's payment obligations to the currency swap counterparty include the interim and final principal payments required to redeem the note and the floating-rate payments necessary to pay ongoing interest on the note (issuer's payment obligations). Fitch's rating does not address any swap termination payments due by the issuer to the currency swap counterparty. =============== X X X X X X X X =============== * Moody's Downgrades Ratings on 144 CDO Transactions ---------------------------------------------------- Moody's Investors Service has downgraded its ratings of 144 Notes issued by certain collateralized debt obligation transactions backed by structured finance securities, each of which originated in 2003 - 2004. Moody's explained that the rating actions taken are the result of the application of revised and updated key modeling 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 announced the changes to these assumptions in a press release published on December 11, 2008. 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. Moody's initially analyzed and continues to monitor these transactions using primarily the methodology and its supplements for ABS CDOs as described in Moody's Special Reports below: -- Moody's Approach to Rating Multisector CDOs (15/09/2000) -- Moody's Approach To Rating Synthetic Resecuritizations (29/10/2003) -- Moody's Revisits its Assumptions Regarding Structured Finance Default (and Asset) Correlations for CDOs (27/06/2005) -- Moody's Modeling Approach to Rating Structured Finance Cash Flow CDO Transactions (26/09/2005) The rating actions are: Issuer: ABSolute II Synthetic CDO Limited (1) Class A -- Current Rating: Ba1, on review for possible downgrade -- Prior Rating: Baa1, on review for possible downgrade -- Prior Rating Date: 25 November 2008 (2) Class B -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa2, on review for possible downgrade -- Prior Rating Date: 25 November 2008 Issuer: ABSolute III Synthetic CDO Limited (1) Class A -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 26 March 2004 (2) Class B1 -- Current Rating: A3, on review for possible downgrade -- Prior Rating: Aa3 -- Prior Rating Date: 26 March 2004 (3) Class B2 -- Current Rating: A3, on review for possible downgrade -- Prior Rating: Aa3 -- Prior Rating Date: 26 March 2004 Issuer: Alexandria Capital Plc. Series 2003-2 (1) Alexandria Class A Secured Floating Rate Credit Linked Notes -- Current Rating: Aa2, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 24 December 2003 (2) Alexandria Class B Secured Floating Rate Credit Linked Notes -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 24 December 2003 (3) Alexandria Class C Secured Floating Rate Credit Linked Notes -- Current Rating: A3, on review for possible downgrade -- Prior Rating: Aa3 -- Prior Rating Date: 24 December 2003 (4) Alexandria Class D Secured Floating Rate Credit Linked Notes -- Current Rating: Baa1, on review for possible downgrade -- Prior Rating: A1 -- Prior Rating Date: 24 December 2003 Issuer: Argon Capital PLC - Series 21 (1) Series 21 EUR13,020,000 Class A+1 Limited Recourse Secured Credit-Linked Fixed Rate Notes due 2043 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 06 May 2003 (2) Series 21 EUR2,790,000 Class A+3 Limited Recourse Secured Credit-Linked Floating Rate Notes due 2043 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 06 May 2003 Issuer: Arosa Funding Limited - Series 2003-2 (1) Class A -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: B3 -- Prior Rating Date: 22 October 2008 (2) Class B1 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa1 -- Prior Rating Date: 22 October 2008 (3) Class B2 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa1 -- Prior Rating Date: 22 October 2008 Issuer: Arosa Funding Limited - Series 2003-3 (1) Class A1 -- Current Rating: B3, on review for possible downgrade -- Prior Rating: Ba3 -- Prior Rating Date: 22 October 2008 (2) Class A2 -- Current Rating: B3, on review for possible downgrade -- Prior Rating: Ba3 -- Prior Rating Date: 22 October 2008 Issuer: Arosa Funding Limited - Series 2003-4 (1) Series 2003-4 -- Current Rating: B1, on review for possible downgrade -- Prior Rating: Ba1 -- Prior Rating Date: 22 October 2008 Issuer: Arosa Funding Limited - Series 2004-6 (1) Class A Notes -- Current Rating: B3, on review for possible downgrade -- Prior Rating: Ba3 -- Prior Rating Date: 22 October 2008 (2) Class B Notes -- Current Rating: B3, on review for possible downgrade -- Prior Rating: Ba3 -- Prior Rating Date: 22 October 2008 Issuer: Brooklands Euro Referenced Linked Notes 2004-1 Limited (1) Class A1-a Floating Rate Notes due 2054 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 11 August 2005 (2) Class A1-b Floating Rate Notes due 2054 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 11 August 2005 (3) Class A2 Floating Rate Notes due 2054 -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aa1 -- Prior Rating Date: 11 August 2005 Issuer: Bruckner CDO I B.V. (1) Class A-1 Secured Floating Rate Notes -- Current Rating: Aa2, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 30 September 2004 (2) Class A2-1 Secured Floating Rate Notes -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 30 September 2004 (3) Class B Secured Floating Rate Notes -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aa1 -- Prior Rating Date: 30 September 2004 (4) Class C-1 Deferrable Interest Secured Floating Rate Notes -- Current Rating: A3, on review for possible downgrade -- Prior Rating: Aa3 -- Prior Rating Date: 30 September 2004 (5) Class D-1 Deferrable Interest Secured Floating Rate Notes -- Current Rating: B2, on review for possible downgrade -- Prior Rating: Baa2 -- Prior Rating Date: 30 September 2004 (6) Class A2-2 Secured Fixed Rate Notes -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 30 September 2004 (7) Class C-2 Deferrable Interest Secured Fixed Rate Notes -- Current Rating: A3, on review for possible downgrade -- Prior Rating: Aa3 -- Prior Rating Date: 30 September 2004 (8) Class D-2 Deferrable Interest Secured Fixed Rate Notes -- Current Rating: B2, on review for possible downgrade -- Prior Rating: Baa2 -- Prior Rating Date: 30 September 2004 (9) Class Q Combination Notes -- Current Rating: Ba1, on review for possible downgrade -- Prior Rating: Baa1 -- Prior Rating Date: 30 September 2004 (10) Class R Combination Notes -- Current Rating: Caa2, on review for possible downgrade -- Prior Rating: Ba2 -- Prior Rating Date: 30 September 2004 (11) Class S Combination Notes -- Current Rating: Ba1, on review for possible downgrade -- Prior Rating: Baa1 -- Prior Rating Date: 30 September 2004 Issuer: Camber 4 plc (1) Class A1-A Floating Rate Notes due 2053 -- Current Rating: Ba3, on review for possible downgrade -- Prior Rating: Baa3, on review for possible downgrade -- Prior Rating Date: 15 August 2008 Issuer: CDC Ixis Capital Markets - Credit-Linked Note linked to Chrome Funding Must 50/5 (1) EUR10,000,000 Series 1388 Fixed Rate Credit-linked Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa1, on review for possible downgrade -- Prior Rating Date: 01 December 2008 Issuer: Chrome Funding Ltd - Series Must 50/5 (1) Class A1-A Floating Rate Secured Portfolio Credit-linked Notes -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: A2, on review for possible downgrade -- Prior Rating Date: 01 December 2008 (2) Class A2-A Floating Rate Secured Portfolio Credit-linked Notes -- Current Rating: Ba3, on review for possible downgrade -- Prior Rating: Baa3, on review for possible downgrade -- Prior Rating Date: 01 December 2008 (3) Class B Floating Rate Secured Portfolio Credit-linked Notes -- Current Rating: B3, on review for possible downgrade -- Prior Rating: Ba3, on review for possible downgrade -- Prior Rating Date: 01 December 2008 (4) Class C1 Floating Rate Secured Portfolio Credit-linked Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: B3, on review for possible downgrade -- Prior Rating Date: 01 December 2008 (5) Class C2 Floating Rate Secured Portfolio Credit-linked Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa1, on review for possible downgrade -- Prior Rating Date: 01 December 2008 (6) Class D Floating Rate Secured Portfolio Credit-linked Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa2, on review for possible downgrade -- Prior Rating Date: 01 December 2008 (7) Class A1-B -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: A2, on review for possible downgrade -- Prior Rating Date: 01 December 2008 (8) Class A2-B -- Current Rating: Ba3, on review for possible downgrade -- Prior Rating: Baa3, on review for possible downgrade -- Prior Rating Date: 01 December 2008 Issuer: Claris Limited Series 20, 21, 22 and 23/2004 (Millesime) (1) Series 20 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 15 June 2004 (2) Series 21 -- Current Rating: A2, on review for possible downgrade -- Prior Rating: Aa2 -- Prior Rating Date: 15 June 2004 (3) Series 22 -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: A2 -- Prior Rating Date: 15 June 2004 (4) Series 23 -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: A2 -- Prior Rating Date: 15 June 2004 Issuer: Claris Limited Series 25/2004 (Millesime) (1) Series 25 -- Current Rating: Baa3, on review for possible downgrade -- Prior Rating: A3 -- Prior Rating Date: 13 July 2004 Issuer: Claris Limited Series 29/2004 (1) Series 29/2004 Tranche 1 EUR 40,000,000 Napa Valley II Synthetic CDO of ABS Floating Rate Notes due 2024 -- Current Rating: A3, on review for possible downgrade -- Prior Rating: Aa3, on review for possible downgrade -- Prior Rating Date: 28 November 2008 Issuer: Cloverie Plc - Ghibli CDO I (1) Series 2004-26 Class A -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aa1, on review for possible downgrade -- Prior Rating Date: 03 November 2008 (2) Series 2004-27 Class B -- Current Rating: Caa2, on review for possible downgrade -- Prior Rating: B2, on review for possible downgrade -- Prior Rating Date: 03 November 2008 Issuer: Cloverie Plc - Rotonda CDO: Series 2004- 56, 59, 61, 63 (1) Series 2004-56 Portfolio Credit Linked Note -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa, on review for possible downgrade -- Prior Rating Date: 01 December 2008 Issuer: Cloverie Plc - Series 2004-72, 2004-77 & 2005-04 (US Onyx) (1) EUR30,000,000 Class C Secured Floating Rate Portfolio Linked Notes due 2024 -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aa1, on review for possible downgrade -- Prior Rating Date: 02 June 2008 (2) EUR50,000,000 Class C Secured Floating Rate Series 77 -- 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 64-65 (Brera) (1) Series 2004-64 US$37,500,000 Class A Brera CDO I Secured Floating Rate Portfolio Credit Linked Notes due 2030 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa1, on review for possible downgrade -- Prior Rating Date: 15 July 2008 Issuer: Cloverie PLC: Rotonda CDO Series 2004-59 (1) Series No: 2004-59 US$60,000,000 Class A Floating Rate Portfolio Credit Linked Notes due 2009 -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aa1 -- Prior Rating Date: 01 December 2008 Issuer: Corsair (Jersey) No 3 Limited Series 7 (Alhambra) (1) Series 7 Floating ate Portfolio Credit Linked Notes due 2013 -- Current Rating: B2, on review for possible downgrade -- Prior Rating: Ba2 -- Prior Rating Date: 23 October 2008 Issuer: Credit Derivative Transaction between Mizuho International plc and Cradle Limited (1) Mizuho - Cradle - SS Swap -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 30 November 2004 Issuer: Deutsche Bank AG, London Branch - N-Tsar (1) Class B Swap -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: B3, on review for possible downgrade -- Prior Rating Date: 31 July 2008 Issuer: Deutsche Bank AG, London Branch - Tsar_05 (1) Class A-(1) Swap -- Current Rating: Caa1, on review for possible downgrade -- Prior Rating: B1, on review for possible downgrade -- Prior Rating Date: 18 November 2008 (2) Class A(2) Swap - Earls Four Limited Series 899 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa1, on review for possible downgrade -- Prior Rating Date: 18 November 2008 (2) Class A(3) Swap -- Current Rating: B1, on review for possible downgrade -- Prior Rating: Ba1, on review for possible downgrade -- Prior Rating Date: 18 November 2008 Issuer: Eirles Four Limited - Series 32 due 2013 (1) Series 32 Floating and Variable Rate Secured Notes -- Current Rating: Caa1, on review for possible downgrade -- Prior Rating: B1, on review for possible downgrade -- Prior Rating Date: 18 November 2008 Issuer: Eirles Four Series 60 (Tsar_05 Class A and Class A- Swap) (1) Series 60 Floating and Variable Rate Secured Notes -- Current Rating: B3, on review for possible downgrade -- Prior Rating: Ba3, on review for possible downgrade -- Prior Rating Date: 18 November 2008 Issuer: Eirles Two Limited - Series 101, 102, 103, 104 (1) Eirles Two Limited - Series 101 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: B3, on review for possible downgrade -- Prior Rating Date: 31 July 2008 Issuer: Eirles Two Limited, Series 153 and 156 (1) Series 153 US$32,000,000 Floating and Variable Rate Secured Notes due 2038 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 21 December 2004 (2) Series 156 US$8,000,000 Floating and Variable Rate Secured Notes DUE 2038 -- Current Rating: Baa1, on review for possible downgrade -- Prior Rating: A1 -- Prior Rating Date: 21 December 2004 Issuer: Eirles Two Series 71 (Tsar_05 Class A-(1) Swap) (1) Eirles Two Series 71 Floating and Variable Rate Secured Notes -- Current Rating: Caa1, on review for possible downgrade -- Prior Rating: B1, on review for possible downgrade -- Prior Rating Date: 18 November 2008 Issuer: FAB CBO 2003-1 B.V. (1) Class A-1E Floating Rate Notes -- Current Rating: Aa2, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 31 July 2003 (2) Class A-1F Zero Coupon Notes -- Current Rating: Aa2, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 31 July 2003 (3) Class A-2E Floating Rate Notes -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 31 July 2003 (4) Class A-2F Fixed Rate Notes -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 31 July 2003 (5) Class A-3E Floating Rate Notes -- Current Rating: A2, on review for possible downgrade -- Prior Rating: Aa2 -- Prior Rating Date: 31 July 2003 (6) Class A-3F Fixed Rate Notes -- Current Rating: A2, on review for possible downgrade -- Prior Rating: Aa2 -- Prior Rating Date: 31 July 2003 (7) Class BE Floating Rate Notes -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: A2 -- Prior Rating Date: 31 July 2003 (8) Class BF Fixed Rate Notes -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: A2 -- Prior Rating Date: 31 July 2003 (9) Class S1 Combination Notes -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 31 July 2003 (10) Class S2 Combination Notes -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 31 July 2003 (11) Class S3 Combination Notes -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 31 July 2003 Issuer: Faxtor ABS 2003-1 B.V. (1) Class A-1E Floating Rate Notes -- Current Rating: Aa1, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 19 May 2003 (2) Class A-2E Floating Rate Notes -- Current Rating: Aa2, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 19 May 2003 (3) Class A-2F Fixed Rate Notes -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 19 May 2003 (4) Class A-3E Floating Rate Notes -- Current Rating: Ba1, on review for possible downgrade -- Prior Rating: Aa2 -- Prior Rating Date: 19 May 2003 (5) Class A-3F Fixed Rate Notes -- Current Rating: Ba1, on review for possible downgrade -- Prior Rating: Aa2 -- Prior Rating Date: 19 May 2003 (6) Class BE Floating Rate Notes -- Current Rating: B2, on review for possible downgrade -- Prior Rating: Baa2 -- Prior Rating Date: 19 May 2003 (7) Class BF Fixed Rate Notes -- Current Rating: B2, on review for possible downgrade -- Prior Rating: Baa2 -- Prior Rating Date: 19 May 2003 Issuer: Faxtor ABS 2004-1 B.V. (1) Class A-1 Floating Rate Notes -- Current Rating: Aa2, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 25 May 2004 (2) Class A-2 Floating Rate Note -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 25 May 2004 (3) Class A-3 Floating Rate Notes -- Current Rating: A2, on review for possible downgrade -- Prior Rating: Aa2 -- Prior Rating Date: 25 May 2004 (4) Class BE Floating Rate Notes -- Current Rating: Ba1, on review for possible downgrade -- Prior Rating: Baa1 -- Prior Rating Date: 25 May 2004 (5) Class BF Fixed Rate Notes -- Current Rating: Ba1, on review for possible downgrade -- Prior Rating: Baa1 -- Prior Rating Date: 25 May 2004 (6) Class S Combination Notes -- Current Rating: Ba1, on review for possible downgrade -- Prior Rating: Baa1 -- Prior Rating Date: 25 May 2004 Issuer: G Square Finance Limited (1) Class A Notes -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: B3, on review for possible downgrade -- Prior Rating Date: 28 November 2008 Issuer: Heather Finance Limited 2004-8 (CoRDS) (1) Series 2004-8 JPY1,100,000,000 Secured Credit-Linked Floating Rate Notes -- Current Rating: Baa3, on review for possible downgrade -- Prior Rating: A3 -- Prior Rating Date: 09 June 2008 Issuer: High Tide CDO I S.A. (1) Class A Senior Secured Floating Rate Notes -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 16 June 2003 (2) Class B Senior Secured Floating Rate Notes -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aa1 -- Prior Rating Date: 16 June 2003 (3) Class C Senior Secured Floating Rate Notes -- Current Rating: Baa3, on review for possible downgrade -- Prior Rating: A3 -- Prior Rating Date: 16 June 2003 Issuer: Iliad Investments P.L.C. Series 8 (1) Class A Series 8 Secured Floating Rate Notes -- Current Rating: Ba1, on review for possible downgrade -- Prior Rating: Aa2, on review for possible downgrade -- Prior Rating Date: 16 May 2008 (2) Class B Series 8 Secured Floating Rate Note -- Current Rating: B1, on review for possible downgrade -- Prior Rating: A1, on review for possible downgrade -- Prior Rating Date: 16 May 2008 (3) Class C Series 8 Secured Floating Rate Note -- Current Rating: Caa1, on review for possible downgrade -- Prior Rating: Baa1, on review for possible downgrade -- Prior Rating Date: 16 May 2008 Issuer: Iona CDO I Limited (1) Class A Secured Floating Rate Credit-Linked Notes due 2049 -- Current Rating: B2, on review for possible downgrade -- Prior Rating: Ba2, on review for possible downgrade -- Prior Rating Date: 12 December 2008 Issuer: Menton CDO I (Lunar Funding V plc) (1) Series 2 US$50,000,000 Secured Asset-Backed Floating Rate Notes due 2041 -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aa1, on review for possible downgrade -- Prior Rating Date: 25 November 2008 (2) Series 3 US$40,000,000 Secured Asset-Backed Floating Rate Notes due 2041 -- Current Rating: B1, on review for possible downgrade -- Prior Rating: Ba1, on review for possible downgrade -- Prior Rating Date: 25 November 2008 (3) Series 4 US$40,000,000 Secured Asset-Backed Floating Rate Notes due 2041 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa2, on review for possible downgrade -- Prior Rating Date: 25 November 2008 Issuer: Merak CDO Limited - Series 2003-3 (1) Class B -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aa1, on review for possible downgrade -- Prior Rating Date: 10 December 2003 (2) Class C -- Current Rating: A3, on review for possible downgrade -- Prior Rating: Aa3, on review for possible downgrade -- Prior Rating Date: 10 December 2003 Issuer: Merak CDO Limited Series 2003-01 (1) Class B Credit-Linked Notes due 2010 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa, on review for possible downgrade -- Prior Rating Date: 19 September 2003 Issuer: Merak CDO Limited Series 2003-02 (1) Class C Credit-Linked Notes due 2010 -- Current Rating: A2, on review for possible downgrade -- Prior Rating: Aa2, on review for possible downgrade -- Prior Rating Date: 19 September 2003 Issuer: Rhodium 1 B.V. (1) Class A -- Current Rating: Aa2, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 07 June 2004 (2) Class B -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 07 June 2004 (3) Class C -- Current Rating: A2, on review for possible downgrade -- Prior Rating: Aa2 -- Prior Rating Date: 07 June 2004 (4) Class D -- Current Rating: Ba2, on review for possible downgrade -- Prior Rating: Baa2 -- Prior Rating Date: 07 June 2004 Issuer: Ryder Square Limited - Evergreen (1) Series No: 3 EUR29,000,000 Evergreen-ABS Secured Credit Linked Notes due 2009 -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aa1 -- Prior Rating Date: 10 November 2008 (2) Series No: 4 EUR38,000,000 Evergreen-ABS Secured Credit Linked Notes due 2009 -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: A2 -- Prior Rating Date: 10 November 2008 Issuer: SAGA Investment Series Limited (1) JPY700,000,000 Class A1 Secured Fixed/Floating Rate Credit- Linked Notes due 2011 -- Current Rating: Caa2, on review for possible downgrade -- Prior Rating: B2, on review for possible downgrade -- Prior Rating Date: 13 May 2008 (2) JPY2,300,000,000 Class A2 Secured Floating Rate Credit-Linked Notes due 2011 -- Current Rating: Caa2, on review for possible downgrade -- Prior Rating: B2, on review for possible downgrade -- Prior Rating Date: 13 May 2008 (3) EUR7,500,000 Class A3 Secured Floating Rate Credit-Linked Notes due 2011 -- Current Rating: Caa2, on review for possible downgrade -- Prior Rating: B2, on review for possible downgrade -- Prior Rating Date: 13 May 2008 (4) JPY4,000,000,000 Class B Secured Fixed Rate Credit-Linked Notes due 2011 -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa1, on review for possible downgrade -- Prior Rating Date: 13 May 2008 Issuer: SGA Societe Generale Acceptance N.V. Series 7040/04-09 (1) Series 7040/04-09 Tranche 1 EUR28,500,000 Napa Valley II Synthetic CDO of ABS Floating Rate Notes due 2024 -- Current Rating: Caa1, on review for possible downgrade -- Prior Rating: B1, on review for possible downgrade -- Prior Rating Date: 28 November 2008 Issuer: SGA Societe Generale Acceptance N.V. Series 7041/04-09 (1) Series 7041/04-09 Tranche 1 EUR5,000,000 Napa Valley II Synthetic CDO of ABS Floating Rate Notes due 2024 -- Current Rating: Caa1, on review for possible downgrade -- Prior Rating: B1, on review for possible downgrade -- Prior Rating Date: 28 November 2008 Issuer: Skylark Limited Series 2004-3 (US$Saqqara) (1) US$ denominated Saqqara Class A Floating Rates Credit Linked Notes -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 16 June 2004 Issuer: Societe Generale - Napa Valley II Synthetic CDO of ABS Swap (1) CDS providing protection on the reference portfolio for losses exceeding 0.05% up to 1.65% of the portfolio related to SGA Series 7041/04-09 Notes -- Current Rating: Caa1, on review for possible downgrade -- Prior Rating: B1, on review for possible downgrade -- Prior Rating Date: 28 November 2008 (2) CDS providing protection on the reference portfolio for losses up to 1.65% of the portfolio related to SGA Series 7040/04-09 Notes -- Current Rating: Caa1, on review for possible downgrade -- Prior Rating: B1, on review for possible downgrade -- Prior Rating Date: 28 November 2008 Issuer: Stanton MBS I p.l.c. (1) Class A1 Senior Secured Floating Rate Delayed Draw Notes due 2054 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 08 November 2004 (2) Class A1 Senior Secured Floating Rate Term Notes due 2054 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 08 November 2004 (3) Class A1 Senior Secured Floating Rate Revolving Notes due 2054 -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 08 November 2004 Issuer: Tempo CDO 1 Limited (1) Class A -- Current Rating: Ba2, on review for possible downgrade -- Prior Rating: Baa2, on review for possible downgrade -- Prior Rating Date: 06 November 2008 (2) Class B -- Current Rating: Caa3, on review for possible downgrade -- Prior Rating: Caa2, on review for possible downgrade -- Prior Rating Date: 06 November 2008 Issuer: Triplas IV Limited (1) EUR17,000,000 Class A Secured Floating Rate Credit-Linked Notes due 2011 -- Current Rating: A3, on review for possible downgrade -- Prior Rating: Aa3, on review for possible downgrade -- Prior Rating Date: 24 November 2008 (2) EUR17,000,000 Class B Secured Floating Rate Credit-Linked Notes due 2011 -- Current Rating: Baa2, on review for possible downgrade -- Prior Rating: A2, on review for possible downgrade -- Prior Rating Date: 24 November 2008 (3) EUR10,300,000 Class C1 Secured Floating Rate Credit-Linked Notes due 2011 -- Current Rating: Ba1, on review for possible downgrade -- Prior Rating: Baa1, on review for possible downgrade -- Prior Rating Date: 24 November 2008 (4) EUR2,000,000 Class C2 Secured Floating Rate Credit-Linked Notes due 2011 -- Current Rating: Ba1, on review for possible downgrade -- Prior Rating: Baa1, on review for possible downgrade -- Prior Rating Date: 24 November 2008 (5) EUR750,000 Class D Secured Floating Rate Credit-Linked Notes due 2011 -- Current Rating: Ba2, on review for possible downgrade -- Prior Rating: Baa2, on review for possible downgrade -- Prior Rating Date: 24 November 2008 Issuer: Triplas Series II Synthetic CDO Limited (1) Class A -- Current Rating: A1, on review for possible downgrade -- Prior Rating: Aa1, on review for possible downgrade -- Prior Rating Date: 24 November 2008 (2) Class B -- Current Rating: A3, on review for possible downgrade -- Prior Rating: Aa3, on review for possible downgrade -- Prior Rating Date: 24 November 2008 (3) Class C -- Current Rating: Baa3, on review for possible downgrade -- Prior Rating: A3, on review for possible downgrade -- Prior Rating Date: 24 November 2008 (4) Class D -- Current Rating: Ba2, on review for possible downgrade -- Prior Rating: Baa2, on review for possible downgrade -- Prior Rating Date: 24 November 2008 (5) Class E -- Current Rating: Ba3, on review for possible downgrade -- Prior Rating: Baa3, on review for possible downgrade -- Prior Rating Date: 24 November 2008 Issuer: Triplas Synthetic CDO S.A. (1) Class A -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 09 January 2003 (2) Class B -- Current Rating: A2, on review for possible downgrade -- Prior Rating: Aa2 -- Prior Rating Date: 09 January 2003 (3) Class C -- Current Rating: Baa1, on review for possible downgrade -- Prior Rating: A1 -- Prior Rating Date: 09 January 2003 Issuer: Vespucci Investments Plc (1) Class A -- Current Rating: Aa3, on review for possible downgrade -- Prior Rating: Aaa -- Prior Rating Date: 06 July 2004 (2) Class B * S&P Affirms Ratings on Three Natural Peril Catastrophe Bonds -------------------------------------------------------------- Standard & Poor's Ratings Services said that it affirmed its ratings on three natural peril catastrophe bonds. The ratings on Ajax Re Ltd.'s class A principal-at-risk variable-rate series 1 notes and Carillon Ltd.'s class A-1 principal-at-risk variable- rate notes are 'CC'. The ratings on Newton Re Ltd.'s class A 2008-1 principal-at-risk variable-rate notes are 'CCC'. At the same time, Standard & Poor's removed the ratings on Ajax Re Ltd. and Carillon Ltd. from CreditWatch with negative implications, where they had been placed on Sept. 15, 2008. The ratings on Newton Re Ltd. were removed from CreditWatch with developing implications, where they had been placed on Sept. 30, 2008 (originally on CreditWatch negative on Sept. 15). The original CreditWatch placement was due to the notes' exposure to Lehman Brothers Holdings Inc., which was the guarantor of Lehman Brothers Special Financing Inc., the total return swap counterparty in all the transactions. Since then, S&P has withdrawn its ratings on Lehman Brothers Holdings and downgraded the notes on Sept. 30, 2008. All the issuers have terminated their swaps and the ratings now reflect the risk embedded within the transaction assuming that no replaced TRS are provided. Furthermore, timely scheduled interest payments were made on each of the cat bonds on Dec. 15, 2008. Accordingly, the CreditWatch placements are no longer applicable. Carillon Ltd. and Ajax Re Ltd. notes remain highly vulnerable regarding future scheduled interest payments on the notes and ultimately paying the principal at maturity. The significant issues are a) the cash flow on the assets in the collateral account are not necessarily matched to those on the notes (this is part of the protection offered by a TRS counterparty), and b) a default in payment on any of these assets could result in a payment shortfall. Ultimate payment of principle now relies on the realizable value of the collateral assets at the maturity of the notes. Given the current disruption in the credit markets, asset valuations are difficult to assess. Based on the quality of the assets in the collateral trust, S&P expects significant impairment and therefore modest recovery. Given the significant difference between the current market value and the notional amount of the notes, S&P is not expecting the entire notional amount to be paid in full at maturity. Newton Re Ltd.'s class A 2008-1 notes remain vulnerable and are dependent upon favorable financial and economic conditions to make scheduled interest payments on the notes and ultimately pay the principal at maturity. However, based on the quality of the assets in the collateral trust, S&P believes there is a better chance of the notional amount being paid in full at maturity even though the current market value is below the notional amount of the notes. Standard & Poor's will continue to monitor events related to the notes. The next scheduled interest payment date for the Ajax Re Ltd., Newton Re Ltd., and Carillon Ltd. transactions is March 15, 2009. The ratings on the notes will be lowered to 'D' if these issuers miss a scheduled payment. Ratings List Ajax Re Ltd.'s class A principal-at-risk variable-rate series 1 notes To From -- ---- CC CC/Watch Neg Carillon Ltd.'s class A-1 principal-at-risk variable-rate series 1 notes To From -- ---- CC CC/Watch Neg Newton Re Ltd.'s class A 2008-1 principal-at-risk variable-rate notes To From -- ---- CCC CCC/Watch Dev * BOOK REVIEW: The First Junk Bond: A Story of Corp. Boom & Bust ---------------------------------------------------------------- Author: Harlan D. Platt Publisher: Beard Books Paperback: 256 pages List Price: US$34.95 Order your personal copy at http://amazon.com/exec/obidos/ASIN/1587981203/internetbankrupt This is a book that business people will find particularly enlightening. It details how Texas International, Inc.'s bankruptcy filing affected various stakeholders, the bankruptcy negotiation process, and the alternative post-bankruptcy structures that were considered. This engrossing book follows the extraordinary journey of the company through its corporate growth and decline, debt exchange offers, and corporate rebirth. It is a case study of a company that exemplified the 1980s, complete with fascinating people, financial innovations, and successive rounds of high stakes poker, as the misfortunes of the company unfold. Detailed is the involvement of Drexel Lambert banking house and its guiding spirit Michael Milken, who secured fresh capital for the company through the issuance of a high-yield bond with an above-market rate of interest to counterbalance its elevated credit risk. ********* 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 * * *