/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/090123.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, January 23, 2009, Vol. 10, No. 16 Headlines A U S T R I A AUSTRIAN AIRLINES: EU Commission Authorizes EUR200 Mln Rescue Aid EUO LLC: Claims Registration Period Ends February 12 EUROCHEM LLC: Claims Registration Period Ends February 18 MERLIN LLC: Claims Registration Period Ends February 11 PEMAR LLC: Claims Registration Period Ends February 12 PROJEKTGRUPPE LICHTKUNST: Claims Registration Period Ends Feb. 9 STADE MEDIZIN: Claims Registration Period Ends February 5 WIESER DACH: Claims Registration Period Ends February 11 WK-BAU LLC: Claims Registration Period Ends February 11 F I N L A N D FREESTAR TECHNOLOGY: Changes Name to Rahaxi, Amends Stock Plan KAUPTHING BANK: EU Commission Approves Finish State Guarantee F R A N C E * FRANCE: Banks to Get EUR10.5 Billion Government Aid * FRANCE: Commission Okays Temporary Aid Scheme for Businesses G E R M A N Y BALI RESTAURANT: Claims Registration Period Ends February 13 DISC TECHNOLOGIE: Claims Registration Period Ends February 13 EASTERN SPRING: Claims Registration Period Ends February 12 HEAT MEZZANINE: Fitch Cuts Ratings on Two Notes to Low-B HYPO REAL ESTATE HOLDING: Gets Add'l EUR12 Bln Debt Guarantee MEDIA CONSULT: Claims Registration Period Ends February 10 QUAMT VERWALTUNGS: Claims Registration Period Ends February 26 SYBA SYSTEMBAU: Claims Registration Period Ends February 19 WOLF-GARTEN GMBH: Placed In Administration I R E L A N D ANGLO IRISH: Government Nationalization Cues S&P's 'D' Rating LAMBAY CAPITAL: Moody's Junks Rating on GBP300 Mil. Securities LAMBAY CAPITAL: Fitch Lowers Rating on GBP300 Mil. Notes to 'BB-' NEW BOND: S&P Junks Rating on Class A2 Notes from 'AA+' O'REILLY & CO: Goes Into Liquidation TITAN EUROPE: S&P Cuts Ratings on Class D and E Notes to Low-B I T A L Y CHRYSLER LLC: Fiat Deal to Proceed If Co. Gets US$3BB Gov't Loans CHRYSLER LLC: Moody's Says Fiat Alliance Won't Affect Junk Rating CHRYSLER LLC: S&P Says 'CC' Ratings Not Affected By Fiat Alliance FIAT SPA: Sales Decline, Debt Soars to US$7.67 Bln in 2008 TISCALI SPA: Cuts 250 Jobs in Italy, British Ops Up for Sale K A Z A K H S T A N AUTO INVEST: Proof of Claim Deadline Slated for February 27 BESLAN & K: Creditors Must File Claims by February 26 JAINAK BN: Claims Filing Period Ends February 27 JIDEK-S LLP: Creditors' Proofs of Claim Due on February 27 KAZTEMIRTRANS JSC: Moody's Reviews Issuer Rating for Likely Cut KTZ JSC: Moody's Reviews Issuer Rating for Possible Downgrade LOKADA LTD: Claims Registration Period Ends February 27 MONTAGE SERVICE: Proof of Claim Deadline Slated for February 27 STR PROJECTS: Creditors Must File Claims by February 27 UNIVERSAL-PLUS LLP: Claims Filing Period Ends February 27 VODNIK LLP: Creditors' Proofs of Claim Due on February 27 WOOD BANK: Claims Registration Ends February 27 K Y R G Y Z S T A N NIPPON CONCEPT: Creditors Must File Claims by February 20 L A T V I A * LATVIA: European Union Council Approves EUR3.1 Billion Loan L U X E M B O U R G BERNARD L. MADOFF: 17 Luxembourg Funds Forced to Halt Redemptions P O R T U G A L PORTUGAL: Commission Okays EUR500,000 Aid Scheme for Businesses R U S S I A DAGESTAN OJSC: Creditors Must File Claims by Mar. 16 DOMOSTROY LLC: Ryazan Bankruptcy Hearing Set June 9 EXPERIMENTAL MECHANICAL: Creditors Must File Claims by Feb. 16 FORD MOTOR: Production Resumed at St. Petersburg Plant LOKOMOTIV-TRANS-SEVER LLC: Creditors Must File Claims by March 16 METEO-PRIBOR KIMOVSKIY: Creditors Must File Claims by March 16 MIKO OIL CJSC: Creditors Must File Claims by March 16 RUSAL UC: Appoints Oleg Deripaska as Chief Executive SIBIRSKAY TIMBER: Creditors Must File Claims by February 16 SMOLENSKAYA NEFTEPROMYSHLENNAYA: Claims Filing Ends March 16 TUVINSKIE AIRWAYS FSUE: Creditors Must File Claims by March 16 * Fitch Reports Negative Credit Outlook for Russian Construction S E R B I A & M O N T E N E G R O * SERBIA: IMF Approves EUR402.5 Mln Stand-By Arrangement S P A I N CEMEX SAB: S&P Downgrades Corporate Credit Rating to 'BB+' EMPRESAS HIPOTECARIO: S&P's Ratings on Two Notes Tumble to 'D' S W E D E N TELEFONAKTIEBOLAGET LM ERICSSON: Cuts Jobs as Net Income Drops S W I T Z E R L A N D COATEC HOLDING: Creditors Must File Proofs of Claim by Feb. 5 HOSTELIA JSC: Creditors Must File Proofs of Claim by Jan. 31 LISDA LLC: Deadline to File Proofs of Claim Set January 31 MENTAL GUIDE: Creditors Have Until February 5 to File Claims TELIT COMMUNICATION: Proof of Claim Filing Deadline is Jan. 30 VISENDA LLC: Creditors' Proofs of Claim Due by February 2 WICK & WEHRLI: February 5 Set as Deadline to File Claims WICKLI BAUPLANUNGEN: Creditors Must File Claims by Feb. 19 WINDPOWER TRUST: Deadline to File Proofs of Claim Set Jan. 30 ZYKLUS GARTENBAU: Creditors Have Until Feb. 15 to File Claims U K R A I N E AVISTA LLC: Creditors Must File Claims by January 25 DATA GROUP-NIKOLAYEV: Creditors Must File Claims by January 25 GEOTEKS LLC: Creditors Must File Claims by January 25 METAL INDUSTRY: Creditors Must File Claims by January 25 NIKOPOL PLANT: Creditors Must File Claims by January 25 PMB-1 LLC: Creditors Must File Claims by January 25 PODOLEVSKAYA LLC: Creditors Must File Claims by January 28 RA-TEL LLC: Creditors Must File Claims by January 25 SANTA M LLC: Creditors Must File Claims by January 25 TARTAS LLC: Creditors Must File Claims by January 25 UKRPROMBANK: Placed in Receivership VO METAL: Creditors Must File Claims by January 25 * UKRAINE: Cabinet, NBU Mulls Bank Refinancing Plan U N I T E D K I N G D O M BISHOPSGATE ASSET: Moody's Withdraws 'Ba2' Rating on Notes CO-OPERATIVE BANK: Fitch Affirms Support Rating Floor at 'BB+' CTF MIDLANDS: Names Joint Administrators from Smith & Williamson ESP TECHNOLOGIES: Appoints Liquidators from Smith & Williamson FISHWORKS: Goes Into Administration; 90 Jobs Affected FOUR SEASONS: Has Six Months to Restructure Defaulted Loans GEORGE CARTER: Enters Administration; KPMG Appointed GRAND PRIX RACEWEAR: Taps Joint Administrators from PKF HAMMONDS SUPPORT: Goes Into Administration; Deloitte Appointed KAUPTHING SINGER: Action Group Seeks GBP550Mln Loan from IoM Gov't KAUPTHING SINGER: Tynwald Approves Early Payment Scheme JOHN NICHOLLS: Goes Into Administration LANDSBANKI GUERNSEY: Action Group Backs Creating Creditors Panel LUXFER HOLDINGS: Moody's Cuts Probability of Default Rating to B3 MACKINTOSH & PARTNERS: Names Joint Liquidators from Tenon MAPELEY: May Become Insolvent MIDAS CAPITAL: Expects to Get Temporary Debt Waiver from Bankers REAL HOTEL: Goes Into Administration; BDO Stoy Hayward Appointed SABRE PRINT: Taps Joint Liquidators from PKF VAN AAKEN: Appoints Joint Liquidators from Tenon Recovery * BOOK REVIEW: Crafting Solutions for Troubled Businesses ********* ============= A U S T R I A ============= AUSTRIAN AIRLINES: EU Commission Authorizes EUR200 Mln Rescue Aid ----------------------------------------------------------------- The European Commission on Monday, January 19, 2009, decided to authorize rescue aid for the Austrian flag carrier. The aid will be in the form of a guarantee on a loan facility worth some EUR200 million to keep the company operating until the Commission can take a position on another issue involving possible State aid linked to its privatization. The Commission has examined the rescue aid for Austrian Airlines notified by Austria and has authorized it after checking that it complies with Community rules, notably: * the aid is in the form of a loan guarantee for EUR200 million granted at market rates. * the amount of aid is limited to what is needed to manage the company; The decision deals only with a short-term measure to tackle liquidity problems that Austrian Airlines has encountered as a result of the financial crisis. Having examined the information provided by the Austrian authorities the Commission has concluded that the rescue aid is warranted and complies with the applicable provisions of the Community framework for rescue and restructuring of firms in difficulty. The decision adopted does not concern the planned sale of Austrian Airlines to Lufthansa or the long term plans of the airline which have also been notified to the Commission by Austria as possible State aid and are still being examined. Headquartered in Vienna, The Austrian Airlines Group -- http://www.austrianairlines.co.at/-- divides its activities into three segments: scheduled services, charter and complementary services. EUO LLC: Claims Registration Period Ends February 12 ---------------------------------------------------- Creditors owed money by LLC Euo (FN 302458t) have until Feb. 12, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr. Guenther Hoedl Schulerstrasse 18 1010 Wien Austria Tel: 513 16 55 Fax: DW 33 E-mail: Hoedl@anwaltsteam.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:55 a.m. on Feb. 26, 2009, for the examination of claims at: Trade Court of Vienna Room 1707 Vienna Austria Headquartered in Wien, Austria, the Debtor declared bankruptcy on Dec. 12, 2008, (Bankr. Case No. 2 S 163/08w). EUROCHEM LLC: Claims Registration Period Ends February 18 --------------------------------------------------------- Creditors owed money by LLC Eurochem (FN 115172x) have until Feb. 18, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Andreas Alzinger Kärntner Ring 12 1010 Wien Austria Tel: 515 50 333 Fax: 515 50 50 E-mail: a.alzinger@baierboehm.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:10 a.m. on March 4, 2009, for the examination of claims at: Trade Court of Vienna Room 707 Vienna Austria Headquartered in Wien, Austria, the Debtor declared bankruptcy on Dec. 16, 2008, (Bankr. Case No. 2 S 164/08t). MERLIN LLC: Claims Registration Period Ends February 11 ------------------------------------------------------- Creditors owed money by LLC Merlin (FN 256966t) have until Feb. 11, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Felix Stortecky Schulerstrasse 18 1010 Wien Austria Tel: 01/513 88 37 Fax: 01/513 88 37 22 E-mail: office@stortecky.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:50 a.m. on Feb. 25, 2009, for the examination of claims at: Land Court of Korneuburg Room 204 Korneuburg Austria Headquartered in Leopoldsdorf bei Wien, Austria, the Debtor declared bankruptcy on Dec. 11, 2008, (Bankr. Case No. 36 S 135/08g). PEMAR LLC: Claims Registration Period Ends February 12 ------------------------------------------------------ Creditors owed money by LLC Pemar (FN 307943h) have until Feb. 12, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr. Maximilian Schludermann Reisnerstrasse 32/12 1030 Wien Austria Tel: 715 50 45 Fax: 715 50 474 E-mail: office@anwalt-vienna.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:15 a.m. on Feb. 26, 2009, for the examination of claims at: Trade Court of Vienna Room 1707 Vienna Austria Headquartered in Wien, Austria, the Debtor declared bankruptcy on Dec. 11, 2008, (Bankr. Case No. 2 S 161/08a). PROJEKTGRUPPE LICHTKUNST: Claims Registration Period Ends Feb. 9 --------------------------------------------------------------- Creditors owed money by LLC Projektgruppe Lichtkunst (FN 265281w) have until Feb. 9, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr. Gernot Klocker Mozartstrasse 18 6850 Dornbirn Austria Tel: 05572/386869 Fax: 05572/386869-3 E-mail: office@kgk.co.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Feb. 19, 2009, for the examination of claims at: Land Court of Feldkirch Room 45 Feldkirch Austria Headquartered in Altach, Austria, the Debtor declared bankruptcy on Dec. 15, 2008, (Bankr. Case No. 13 S 46/08g). STADE MEDIZIN: Claims Registration Period Ends February 5 --------------------------------------------------------- Creditors owed money by LLC Stade Medizin (FN 247861b) have until Feb. 5, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Annemarie Kosesnik-Wehrle OElzeltgasse 4/6 1030 Wien Austria Tel: 713 61 92 Fax: 713 61 92 22 E-mail: kanzlei@kosesnik-langer.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:45 a.m. on Feb. 19, 2009, for the examination of claims at: Trade Court of Vienna Room 1703 Vienna Austria Headquartered in Wien, Austria, the Debtor declared bankruptcy on Dec. 16, 2008, (Bankr. Case No. 5 S 142/08d). WIESER DACH: Claims Registration Period Ends February 11 -------------------------------------------------------- Creditors owed money by LLC Wieser Dach (FN 274998i) have until Feb. 11, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Karl Maier Hauptplatz 12 8720 Knittelfeld Austria Tel: 03512-83428 Fax: 03512-83428-50 E-mail: office@ra-maier.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on Feb. 25, 2009, for the examination of claims at: Land Court of Leoben Hall IV 1st. Floor Austria Headquartered in Judenburg, Austria, the Debtor declared bankruptcy on Dec. 16, 2008, (Bankr. Case No. 17 S 68/08f). WK-BAU LLC: Claims Registration Period Ends February 11 ------------------------------------------------------- Creditors owed money by LLC WK-Bau (FN 30476v) have until Feb. 11, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr. Ilse Korenjak Gusshausstrasse 6 1040 Wien Austria Tel: 01/512 21 02 Fax: 01/512 21 02 20 E-mail: office@buresch-korenjak.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Feb. 25, 2009, for the examination of claims at: Land Court of Korneuburg Room 204 Korneuburg Austria Headquartered in Maria Lanzendorf, Austria, the Debtor declared bankruptcy on Dec. 11, 2008, (Bankr. Case No. 36 S 134/08k). ============= F I N L A N D ============= FREESTAR TECHNOLOGY: Changes Name to Rahaxi, Amends Stock Plan -------------------------------------------------------------- FreeStar Technology Corporation disclosed in a regulatory filing with the Securities and Exchange Commission that it filed an amendment to its articles of incorporation with the Secretary of State of Nevada to change the company's name to Rahaxi, Inc. The company stated that the amendment was also made to implement a 1-for-3 reverse stock split of its common stock. The amendment was approved by holders of a majority of the outstanding shares of the company through a proxy statement or written consent solicitation that was mailed to stockholders and filed with the SEC. The amendment to the company's Articles of Incorporation to implement the reverse stock split and name change became effective on Nov. 21, 2008. At that time, each 3 outstanding shares of common stock of the company will be combined into and become 1 outstanding share of common stock of the company. No fractional shares will be issued in connection with the reverse stock split, all fractional shares that would have resulted from the reverse split shall be rounded up to the next whole share. In a separate filing, the company stated that the board of directors of Rahaxi, Inc., fka FreeStar Technology Corporation, adopted an amendment to the company's 2007 Stock Incentive Plan. The amendment increased the number of shares available under the Stock Incentive Plan by an additional 35 million shares of Common Stock for a total of 58,333,333 shares authorized thereunder (on a post one for three reverse stock split on Nov. 21, 2008). A full-text copy of the 2007 Stock Incentive Plan is available for free at: http://ResearchArchives.com/t/s?3855 About FreeStar Technology Corp. Based in Dublin, Ireland, FreeStar Technology Corp. (OTC BB: FSRT) -- http://www.freestartech.com/-- nka Rahaxi, Inc provides electronic payment processing services, including credit and debit card transaction processing, point-of-sale related software applications and other value-added services. The company was incorporated in the State of Nevada. The company also has offices in Helsinki, Finland; Stockholm, Sweden; Geneva, Switzerland; and Santo Domingo, the Dominican Republic. Freestar Technology's balance sheet at Sept. 30, 2008, showed total assets of US$3,466,150 and total liabilities of US$5,648,246, resulting stockholders' deficit of US$2,182,096. For three months ended Sept. 30, 2008, the company posted net loss of US$3,351,972 compared with net loss of US$5,639,278 for the same period in the previous year. As of Sept. 30, 2008, the company has total current assets of US$1,615,817 and total current liabilities of US$5,072,241, resulting in a working capital deficiency of US$3,456,424. The company has cash and cash equivalents of US$506,915 at Sept. 30, 2008, and an accumulated deficit of US$100,921,784. Going Concern Doubt New York-based RBSM LLP expressed substantial doubt about FreeStar Technology Corp.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended June 30, 2007. The auditing firm said the company is experiencing difficulty in generating sufficient cash flow to meet its obligations and sustain its operations. KAUPTHING BANK: EU Commission Approves Finish State Guarantee ------------------------------------------------------------- The European Commission has approved under EC Treaty state aid rules a Finnish state guarantee accompanying a private sector arrangement to the benefit of depositors in the Finnish branch of the insolvent Kaupthing Bank hf. The measure guarantees the banks who ensured full compensation of Kaupthing's Finnish depositors against legal risks. The Commission found the measure to be in line with its Guidance Communication on state aid to overcome the financial crisis. In particular, the measure is necessary to preserve confidence in the financial markets and is limited to the minimum necessary to achieve this objective. The Commission therefore concluded that the scheme was an adequate means to remedy a serious disturbance of the Finnish economy and as such in line with Article 87.3.b of the EC Treaty. Competition Commissioner Neelie Kroes said: "The state guarantee combined with the Finnish banks' initiative will help to maintain depositors' confidence and stability in the Finnish banking sector. The Commission decision demonstrates once again the value of state aid policy in this time of financial crisis." The failure of the Icelandic Kaupthing hf. triggered also the failure of its Finnish branch. As a result, the branch's depositors were unable to make immediate withdrawals or might have lost part of their deposits. Fearing a broader loss of confidence among Finnish depositors in general, the main Finnish banks offered to compensate depositors in full. The three commercial banks involved, - Nordea Bank Finland plc, OP-Pohjola Group Central Cooperative and Sampo Bank plc, and a special purpose vehicle took over the credit claims and other assets of Kaupthing Bank hf. and settled all the deposit claims in Finland. The Finnish State provided a guarantee to the participants, to cover the legal risks, i.e. potential economic losses suffered from recovery claims or equivalent insolvency claims. While this guarantee includes state resources, the measure clearly helps to implement a private arrangement to restore the confidence in the Finnish banking sector and more generally in the Finnish economy. Public confidence is, beside adequate liquidity, one of the essential conditions for the proper functioning of the banking sector. Hence, if the issue of lack of confidence were not addressed, it would result not only in difficulties for the banking sector, but also, due to the financial sector's pivotal role in providing financing to the rest of the economy, have a systemic and harmful spillover effect on the Finnish economy as a whole. In addition, in the light of planned co-operation between the Finnish and Icelandic authorities, the risk of recovery claims materializing appears low. This, in turn, minimizes the legal risk of claims and thus the amount of potential indemnity payments by the state. Therefore, the Commission concluded that the guarantee would not give rise to disproportionate distortions of competition within the Single Market. About Kaupthing Bank Headquartered in Reykjavik, Iceland, Kaupthing Bank hf. -- 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. =========== F R A N C E =========== * FRANCE: Banks to Get EUR10.5 Billion Government Aid ----------------------------------------------------- France will provide a further EUR10.5 billion (US$13.5 billion) in aid to the country's biggest lenders in exchange for their top executives giving up bonuses, Bloomberg News reports. Last month, the report recalls, the government pumped EUR10.5 billion into its six largest financial institutions. The new funds, which is intended to boost every bank's Tier 1 ratio by 50 basis points, will be made available "shortly," said a finance ministry statement cited by Bloomberg News. According to the report, the finance ministry said banks will have a choice to issue by Aug. 31 either subordinated debt, the instrument used in the last aid package, or preferential shares without voting rights. Preferential shares will be better remunerated for the government, with a rate up to twice as high as for debt, the ministry said. French President Nicolas Sarkozy, the report relates, has been pressuring banks in recent days, saying repeatedly that they shouldn't pay bonuses to management or dividends to shareholders. "We ask banks that make a profit to finance the economy" and not reward shareholders, Finance Minister Christine Lagarde was cited by Bloomberg News as saying. The state wants banks to use 2008 earnings to boost shareholder equity while the more profitable banks may still pay a dividend, she said. * FRANCE: Commission Okays Temporary Aid Scheme for Businesses -------------------------------------------------------------- The European Commission has authorized, under EC Treaty state aid rules, the first in a series of aid measures for businesses adopted by France to tackle the current economic crisis. The scheme will allow state, regional or local authorities and certain public bodies to grant aid of up to EUR500,000 in 2009 and 2010 to businesses which find themselves in difficulty as a result of the current economic crisis or are experiencing financing problems because of the credit squeeze. Competition Commissioner Neelie Kroes said that the measure would give a shot in the arm to businesses affected by the current economic situation without leading to undue distortions of competition. The effectiveness of the French authorities' response had enabled the Commission to come to a decision very quickly. The scheme meets the conditions imposed by the Commission's temporary framework giving Member States additional possibilities for providing businesses with improved access to financing during the economic and financial crisis. It is therefore, compatible with Article 87(3)(b) of the EC Treaty, which permits aid intended to remedy a serious disturbance in the economy of a Member State. The scheme is based on the provisions of the temporary framework that deal with compatible aid of a limited amount. In particular, the maximum amount of aid does not exceed EUR500,000 per company and the scheme applies only to businesses which were not in difficulty on July 1, 2008 or which were not in difficulty then but became so subsequently as a result of the economic crisis. This scheme is the first measure authorized for France under the new temporary framework for state aid adopted in principle by the Commission on December 17, 2008. France is the second country, after Germany, to avail itself of this new temporary framework. ============= G E R M A N Y ============= BALI RESTAURANT: Claims Registration Period Ends February 13 ------------------------------------------------------------ Creditors of Bali Restaurant X.Sense GmbH have until Feb. 13, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 10:25 a.m. on March 13, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Cologne Meeting Hall 1240 Luxemburger Strasse 101 50939 Cologne 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. Ruediger Werres Friesenplatz 17 a 50672 Koeln Germany The District Court opened bankruptcy proceedings against the company on Jan. 1, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: BALI Restaurant X.Sense GmbH Attn: Ting Soan Tio, Manager Bruesseler Platz 2 50672 Koeln Germany DISC TECHNOLOGIE: Claims Registration Period Ends February 13 ------------------------------------------------------------- Creditors of Disc Technologie Center GmbH have until Feb. 13, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on March 23, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Schwerin Hall 7 Demmlerplatz 14 Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dirk Decker Obotritenring 98 19053 Schwerin Germany The District Court opened bankruptcy proceedings against the company on Jan. 1, 1009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Disc Technologie Center GmbH Attn: Steen Knuppert-Hansen, Manager Gewerbestrasse 1 23942 Dassow Germany EASTERN SPRING: Claims Registration Period Ends February 12 ----------------------------------------------------------- Creditors of EASTERN SPRING Outdoor Traveller Shop GmbH have until Feb. 12, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9.30 a.m. on March 19, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Nuernberg Meeting Hall 152/I Flaschenhofstr. 35 Nuernberg Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Andreas Roemer Äußere Sulzbacher Str. 155, 90491 Nuernberg Germany The District Court opened bankruptcy proceedings against the company on Jan. 8, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Eastern Spring Outdoor Traveller Shop GmbH Attn: Bogdan Fegus-Sandulescu, Manager Laufertorgraben 4 90489 Nuernberg Germany HEAT MEZZANINE: Fitch Cuts Ratings on Two Notes to Low-B -------------------------------------------------------- Fitch Ratings has downgraded the ratings of H.E.A.T Mezzanine S.A. Compartment 3 notes due February 2015 and removed them from Rating Watch Negative: - EUR229,740,000 class A notes (ISIN: XS0286893572): downgraded to 'A' from 'AAA'; off RWN; Outlook Stable - EUR31,000,000 class B notes (ISIN: XS0286893903): downgraded to 'BB' from 'A'; off RWN; Outlook Stable - EUR25,500,000 class C notes (ISIN: XS0286894208): downgraded to 'B' from 'BBB'; off RWN; Outlook Stable Fitch has simultaneously withdrawn the ratings of all H.E.A.T Mezzanine S.A. Compartment 3 notes as the arranger notified Fitch in December 2008 that it would no longer provide updated portfolio information following noteholder consent to waive the issuer's obligation to maintain a Fitch rating. The notes were placed on RWN on July 10, 2008 reflecting the potential downgrades due to the new Global Rating Criteria for Corporate CDOs. The downgrade action taken reflects the effect of these new criteria as well as the deterioration in the portfolio. For this review Fitch used the latest investor report dated 31 October 2008 containing details about repaid loan agreements, portfolio companies on the monitoring list and merged companies. Additionally, the credit assessment of the individual portfolio companies by Creditreform Rating AG based mostly on 2006 financial year-end financial figures provided to Fitch in November 2007 was integrated into the analysis. Having tracked the performance of 11 Fitch-rated German Mezzanine SME CLOs, which were initially assessed by means of mapping, Fitch notes that the average credit quality of the borrowers in these transactions lies one notch below the initial credit assessment. In resolving the RWN status of the H.E.A.T Mezzanine S.A. Compartment 3 notes, Fitch assumed the same average portfolio migration (one notch lower) and combined this assumption with the available portfolio information. This transaction is a cash securitization of subordinated loans to German small and medium-sized enterprises. As of the review in January 2009, based on the latest portfolio information available to Fitch, the portfolio contained 58 obligors (59 assets). Two portfolio companies have merged and are therefore regarded by Fitch as one borrower. The largest exposure accounted for 4.8% of the outstanding portfolio amount and the top three obligors for 12.5% of the portfolio. Since closing in February 2007 two loan agreements have been terminated with full repayment of the loan notional, and in one case also including the make-whole amount. As of the last payment date, the balance of the principal deficiency ledger had been reduced to zero. There is uncertainty about the issuer's actions regarding the change of control in two further portfolio companies. Overall, in Fitch's view, the portfolio has deteriorated. There has been one default event. Several companies on the issuer's monitoring list are experiencing financial difficulties ranging from liquidity constraints to restructuring and search for a new investor. Additionally, the issuer's actions are pending regarding another company whose management is discussing waiver of loan nominal or reduction of interest payments with the issuer. The securitized debt instruments comprising the portfolio are deeply subordinated. As a result, Fitch assumes no recovery in its analysis. In addition to default simulations using its Portfolio Credit Model, Fitch has performed cash-flow analysis to stress possible interest rate and default timing patterns. The transaction benefits from excess spread and a principal deficiency mechanism for excess spread trapping. The structure is most sensitive to front-loaded default timing. The influence of interest rate changes is limited due to an interest rate hedge referencing the outstanding note balance. Based on the analysis, the credit enhancement derived from both subordination and excess spread was not sufficient to justify the previous ratings of the notes. HYPO REAL ESTATE HOLDING: Gets Add'l EUR12 Bln Debt Guarantee ------------------------------------------------------------- The German Financial Markets Stabilisation Fund ("SoFFin") has extended its framework guarantee granted to Hypo Real Estate Group by an additional EUR12 billion, bringing the aggregate guarantee amount to EUR42 billion, Hypo Real Estate Holding AG, the holding company for the Group, said in a statement Tuesday. Hypo Real Estate Bank AG, part of Hypo Real Estate Group, can use the additional guarantees to be issued by SoFFin to collateralize debt securities to be issued, which must be due for repayment by June 12, 2009 at the latest. Hypo Real Estate Bank AG will pay to SoFFin a pro-rata commitment commission of 0.1% on the undrawn portion of the framework guarantee, and a 0.5% p.a. fee on guarantees drawn upon. Negotiations between Hypo Real Estate and SoFFin regarding more extensive and longer-term liquidity and capital support measures for the Group have not yet been finalised. About two weeks ago, SoFFin extended its EUR30 billion framework guarantee for the Group from January 15, 2009 until April 15, 2009. Under the extended guarantee, Hypo Real Estate Bank AG can use the SoFFin guarantees to collateralize debt securities to be issued, which must be due for repayment by April 15, 2009 at the latest. Hypo Real Estate Bank AG will then pay to SoFFin a pro- rata commitment commission of 0.1% of the undrawn portion of the framework guarantee. The fee for guarantees drawn will be 0.5% p.a. (previously 1.5% p.a.). Bloomberg News relates the Group received a EUR50 billion bailout in October after its Dublin-based Depfa unit failed to get short- term funding from the German government, central bank and financial institutions. 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. * * * As reported in the Troubled Company Reporter-Europe on Dec. 2, 2008, Dominion Bond Rating Service downgraded its long-term ratings for Hypo Real Estate Holding AG (Holding) and related entities (together Hypo Real Estate or the Group), including the Senior Unsecured Long-Term Debt rating for Holding, which was downgraded to A (low) from "A". Concurrently, all ratings have been placed Under Review with Negative Implications. DBRS's rating action followed the announcement of Hypo Real Estate's Q3 2008 results, the announcement of an additional EUR20 billion short-term debt guarantee and of additional information about the Group's liquidity challenges, earnings outlook and pending application for more comprehensive external support. The downgrade and the Under Review Negative status reflect DBRS's concern that Hypo Real Estate's franchise has been weakened by its ongoing liquidity challenges. The Group's lack of access to market funding currently restricts its ability to write new business and requires it to seek more comprehensive support, demonstrating the weakening of its intrinsic fundamentals, the rating agency said. A TCR-Europe report on Nov. 24, 2008, said Hypo Real Estate Group incurred a consolidated pre-tax loss of EUR3.105 billion for the third quarter of 2008 compared with a pre-tax profit of EUR237 million in the corresponding previous year period. The quarterly loss is mainly attributable to the writeoff of goodwill and other intangible assets attributable to the initial consolidation of DEPFA Bank Plc (EUR2.482 billion). On Oct. 28, 2008, the TCR-Europe reported Standard & Poor's Ratings Services lowered its long-term counterparty credit ratings on the seven rated entities of Hypo Real Estate (HRE) group to 'BBB' from 'BBB+', namely, Germany-based commercial real estate lenders Hypo Real Estate Bank International AG and Hypo Real Estate Bank AG, public-finance lenders Depfa Deutsche Pfandbriefbank AG, Ireland-based DEPFA BANK PLC, Depfa ACS, and Hypo Public Finance Bank, and Luxembourg-based Hypo Pfandbriefbank Bank International S.A. "These rating actions reflect the group's strained financial profile, weak funding position, and concerns about the viability of its business model," said Standard & Poor's credit analyst Volker von Kruechten. "We expect HRE to restructure and downsize, which may cause further pressure on earnings and capital, owing to the difficult market environment and a deteriorating credit cycle." MEDIA CONSULT: Claims Registration Period Ends February 10 ---------------------------------------------------------- Creditors of Media Consult Werbeagentur GmbH have until Feb. 10, 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 19, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Bochum Hall A29 Ground Floor Main Building Viktoriastrasse 14 44787 Bochum 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: Moritz Hansberg Huestrasse 34 44787 Bochum Germany The District Court opened bankruptcy proceedings against the company on Jan. 6, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Media Consult Werbeagentur GmbH Hattinger Str. 405 44795 Bochum Germany Attn: Hans-Guenter Macho, Manager Lothingstr. 8 42289 Wuppertal Germany QUAMT VERWALTUNGS: Claims Registration Period Ends February 26 -------------------------------------------------------------- Creditors of Quamt Verwaltungs-GmbH have until Feb. 26, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at a.m. on MD, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Stade Hall 113 Main Building Wilhadikirchhof 1 21682 Stade 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. Jur. Achim Ahrendt Albert-Einstein-Ring 11 22761 Hamburg Germany Tel: 040/899 56-0 Fax: 040/899 56-41 The District Court opened bankruptcy proceedings against the company on Jan. 8, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Quamt Verwaltungs-GmbH Sophie-Scholl-Weg 6 21684 Stade Germany Attn: Mathias Müggenburg, Manager Bremervoerder Strasse 79 a 21682 Stade Germany SYBA SYSTEMBAU: Claims Registration Period Ends February 19 ----------------------------------------------------------- Creditors of Syba Systembau GmbH have until Feb. 19, 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 April 2, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Dresden Hall D131 Olbrichtplatz 1 01099 Dresden Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Olaf Seidel Am Schiesshaus 1-3 01067 Dresden Website: www.worako.de The District Court opened bankruptcy proceedings against the company on Jan. 8, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Syba Systembau GmbH Attn: Holger Schlage, Manager Hohe Strasse 8 01662 Meissen Germany WOLF-GARTEN GMBH: Placed In Administration ------------------------------------------ DIYWEEK.net reports that Wolf-Garten GmbH has been placed in administration after running into severe cash flow problems. According to the report, 200 jobs at the company's Betzdorf factory are at risk, although directors remain optimistic that the business won't go under. "There are a number of conversations underway with possible strategic investors," Manfred Eckermeier, a company spokesman, was quoted by the report as saying. However, the UK division of the company is currently unaffected by the situation in Germany, the report notes. The report relates personnel at the Worcester office have been told to continue working and that it is business as usual until further information is provided from the German parent company. Established in 1922 Wolf-Garten GmbH supplies garden tools and equipment to 35 countries internationally. ============= I R E L A N D ============= ANGLO IRISH: Government Nationalization Cues S&P's 'D' Rating ------------------------------------------------------------- Standard & Poor's Ratings Services said that it lowered its ratings on GBP300 million 6.25% Tier 1 preference shares issued by Anglo Irish Bank Corp. Ltd. (previously a public limited company; A-/Watch Neg/A-1) to 'D' from 'B'. At the same time, the 'B' issue ratings on these preference shares were removed from CreditWatch, where they had been placed with negative implications on Sept. 30, 2008. The 'B' issue ratings on Anglo's other undated perpetual instruments are unchanged. The lowering of the ratings on the GBP300 million 6.25% Tier 1 preference shares to 'D' reflects their nationalization by the government of Ireland, along with all the common equity in Anglo. The preference shares, unlike Anglo's other undated subordinated debt, carry voting rights in some circumstances and are included in the nationalization legislation approved by the Irish parliament. Nationalization of the preference shares means that the investors in the instruments suffer a loss of principal and all future coupons. They will receive compensation, but S&P expects this to be limited. The 'B' issue ratings on Anglo's other undated perpetual instruments reflect S&P's view of the increased probability of payment deferral on these instruments following Anglo's nationalization. S&P notes that the government in its statement announcing the nationalization of Anglo stated that Anglo would "continue to service its obligations and will repay its debts at maturity," and that this included obligations to bondholders. Nevertheless, S&P considers that there is heightened payment deferral risk following the government's seizure of control of Anglo's stock. S&P considers it possible that the European Commission, in the course of approval of a potential state-aid package for Anglo at a future date, may prohibit Anglo from servicing its hybrid debt obligations. The CreditWatch placement on the ratings on Anglo reflect S&P's view of the significant uncertainties about Anglo's future, notably the government's plans in relation to Anglo's strategy, and Anglo's funding plans and capital requirements. S&P will resolve the CreditWatch status following discussions with the Irish authorities and Anglo's management in the coming weeks. Given the Irish government's strong statements of support, S&P does not expect to lower the counterparty credit rating on Anglo by more than one notch in the event of a downgrade. LAMBAY CAPITAL: Moody's Junks Rating on GBP300 Mil. Securities -------------------------------------------------------------- Moody's Investors Service announced it has downgraded its rating of the GBP300,000,000 Perpetual Tier-One Pass-Through Securities issued by Lambay Capital Securities PLC. The rating action is the result of the downgrade to C of the rating of the preference shares of Anglo Irish Bank Corporation plc. The Notes are secured by preference shares issued by AIBC and holders of the Notes will have effectively similar credit risk exposure to that of the AIBC preference shares. The transaction structure allows for a pass-through of cash flows (coupon and principal redemption, if called) on the AIBC preference shares to the Notes holders. Full detailed analyses and information on Anglo Irish Bank Corporation plc's credit ratings can be found on www.moodys.com. Moody's initially analyzed and continues to monitor this transaction using primarily the methodology and its supplements for repackaged securities as described in Moody's Special Reports below: -- Repackaged Securities (October 2001) -- Moody's Refines Its Approach to Rating Structured Notes (July 1997) The rating action is: Lambay Capital Securities PLC: (1) GBP300,000,000 Perpetual Tier-One Pass-Through Securities -- Current Rating: C -- Prior Rating: A3, on review for possible downgrade -- Prior Rating Date: 12 November 2008, A3 placed under review for possible downgrade LAMBAY CAPITAL: Fitch Lowers Rating on GBP300 Mil. Notes to 'BB-' ----------------------------------------------------------------- Fitch Ratings has downgraded Lambay Capital Securities Plc's GBP300 million perpetual tier-one pass-through securities to 'BB-' (BB minus) from 'A' and placed them on Rating Watch Negative. The rating addresses the full repayment of interest and principal to noteholders. Lambay Capital Securities plc is a limited liability company incorporated in Ireland. The rating of the notes is credit-linked to the rating of the GBP300 million Series A fixed- and floating- rate non-cumulative callable preference shares of Anglo Irish Bank Corporation Plc ('A-'((A minus))/Stable/'F1+'), which were downgraded to 'BB-' (BB minus) on January 16, 2009 and placed on RWN. The notes are secured over the aforementioned shares. The perpetual tier-one pass-through securities have no maturity and are callable upon the redemption of the preference shares. The interest payments on the notes are equal to the net dividend received and are passed through to the investors. NEW BOND: S&P Junks Rating on Class A2 Notes from 'AA+' ------------------------------------------------------- Standard & Poor's Ratings Services lowered and placed on CreditWatch negative its credit rating on the class X notes issued by New Bond Street CDO 1 PLC. The rating on the class A1 notes was lowered and kept on CreditWatch negative, while the rating on the class A2 notes was lowered and removed from CreditWatch negative. The portfolio has experienced negative rating migration following the CreditWatch negative placements and lowering of the ratings on U.S. collateralized debt obligations of asset-backed securities in the underlying portfolio. This has led to an increase in the scenario default rates for the class A1 and A2 notes, and the current credit enhancement in the transaction is therefore, in S&P's opinion, insufficient to support the current ratings. In addition, on Jan. 19, 2009, S&P received notice that the issuer did not have sufficient funds to pay all of the interest due on the senior notes. S&P is seeking clarification of which note(s) did not receive full interest payments. If S&P rate these notes, it is likely that S&P would lower the rating on the affected note(s) to 'D'. S&P will closely monitor the performance of the transaction and the outcome of the event of default on the transaction before resolving these CreditWatch placements. Ratings List New Bond Street CDO 1 PLC US$1.0026 Billion Floating-Rate Notes Ratings Lowered and Placed on CreditWatch Negative Rating ------ Class To From ----- -- ---- X A/Watch Neg AAA Ratings Lowered and Remaining on CreditWatch Negative Rating ------ Class To From ----- -- ---- A1 BB+/Watch Neg AAA/Watch Neg Ratings Lowered and Removed from CreditWatch Negative Rating ------ Class To From ----- -- ---- A2 CC AA+/Watch Neg O'REILLY & CO: Goes Into Liquidation ------------------------------------ Laura Noonan at Independent.ie reports that plumbing company O'Reilly & Co (Roscommon) has gone into liquidation after 36 years of trading. Tom Kavanagh of Kavanagh Fennell was appointed liquidator, the report relates. According to the report, the company racked up debts of more than EUR2.1 million, while its assets are expected to realize just EUR422,000, leaving a deficit of more than EUR1.73 million. The report discloses the company's statement of affairs showed co-owners Ciaran Casey and Seamus O'Reilly were among the biggest unsecured creditors, with Mr. Casey owed EUR231,800 and Mr. O'Reilly owed EUR190,000. TITAN EUROPE: S&P Cuts Ratings on Class D and E Notes to Low-B -------------------------------------------------------------- Standard & Poor's Ratings Services lowered and kept on CreditWatch negative its credit ratings on the class D and E notes issued by Titan Europe 2007-3 Ltd. The other notes in the transaction remain unaffected. The downgrades address S&P's increasing loss expectations for some of the loans backing the deal. The notes issued by Titan Europe 2007-3 are backed by 19 loans secured on commercial properties spread throughout the U.K. Ratings List Titan Europe 2007-3 Ltd. GBP778.82 Million Commercial Mortgage-Backed Floating-Rate Notes Ratings Lowered and Kept On CreditWatch Negative Class To From ----- -- ---- D BB/Watch Neg BBB/Watch Neg E B-/Watch Neg B+/Watch Neg ========= I T A L Y ========= CHRYSLER LLC: Fiat Deal to Proceed If Co. Gets US$3BB Gov't Loans --------------------------------------------------------------- Chrysler LLC's alliance with Fiat SpA will proceed if Chrysler gets US$3 billion more in financial aid from the U.S. government, John D. Stoll and Stacy Meichtry report, citing people familiar with the matter. As reported by the Troubled Company Reporter on Jan. 21, 2009, Fiat is in talks with Chrysler about acquiring a stake in the U.S. car maker and forming a partnership to let the Italian auto maker build and sell its small cars in the U.S. Fiat is likely to take a 35% stake in Chrysler by the middle of the year. WSJ relates that the Fiat-Chrysler deal is contingent on Chrysler getting additional government loans. Chrysler spokesperson Shawn Morgan said that Chrysler believes the US$3 billion in loans are necessary for its viability, the report states. Chrysler almost ran out of cash before the U.S. Treasury agreed in December 2008 to lend the company US$4 billion, WSJ says. Chrysler, WSJ report, must submit a plan by Feb. 17 that shows how it intends to return to profitability, as part of the Treasury's terms for loans and to qualify for an additional US$3 billion in aid. According to WSJ, having Fiat as a partner helps Chrysler offer a longer-term vision, but it does little to ease its current cash crunch. The report says that Chrysler's plants have been closed temporarily since December, and dealers have been cutting orders as sales dropped steeply in the last few months. Citing people familiar with the matter, the report states that Chrysler barely generated any revenue and would need more government loans to continue operations beyond the first quarter. WSJ reports that Chrysler could face tough questions about why the government should provide it more loans when neither its majority owner, Cerberus, nor its new partner, Fiat, are doing the same. According to the report, Sen. Bob Corker said that he is worried that by investing more money in Chrysler, the government is allowing Cerberus, which is privately held, to be in a better position to offload its stake in Chrysler. About Chrysler LLC Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * As reported in the Troubled Company Reporter on Dec. 3, 2008, Dominion Bond Rating Service downgraded the ratings of Chrysler LLC, including Chrysler's Issuer Rating to CC from CCC (high). Chrysler's First Lien Secured Credit Facility and Second Lien Secured Credit Facility have also been downgraded to CCC and CC (low) respectively. All trends are Negative. The ratings action reflects Chrysler's challenge to maintain sufficient liquidity balances amid severe industry conditions that have deteriorated alarmingly over the past few months and are not expected to improve in the near term. With this ratings action, Chrysler is removed from Under Review with Negative Implications, where it was placed on Nov. 7, 2008. As reported in the Troubled Company Reporter on Aug. 11, 2008, Standard & Poor's Ratings Services lowered its ratings on Chrysler LLC, including the corporate credit rating, to 'CCC+' from 'B-'. On July 31, 2008, TCR said that Fitch Ratings downgraded the Issuer Default Rating of Chrysler LLC to 'CCC' from 'B-'. The Rating Outlook is Negative. The downgrade reflects Chrysler's restricted access to economic retail financing for its vehicles, which is expected to result in a further step-down in retail volumes. Lack of competitive financing is also expected to result in more costly subvention payments and other forms of sales incentives. Fitch is also concerned with the state of the securitization market and the ability of the automakers to access this market on an economic basis over the near term, given the steep drop in residual values, higher default rates, higher loss severity being experienced and jittery capital market. As reported in the TCR on Dec. 3, 2008, Dominion Bond Rating Service downgraded on Nov. 20, 2008, the ratings of Chrysler LLC, including Chrysler's Issuer Rating to CC from CCC (high). Chrysler's First Lien Secured Credit Facility and Second Lien Secured Credit Facility have also been downgraded to CCC and CC (low) respectively. All trends are Negative. The ratings action reflects Chrysler's challenge to maintain sufficient liquidity balances amid severe industry conditions that have deteriorated alarmingly over the past few months and are not expected to improve in the near term. With this ratings action, Chrysler is removed from Under Review with Negative Implications, where it was placed on Nov. 7, 2008. CHRYSLER LLC: Moody's Says Fiat Alliance Won't Affect Junk Rating ----------------------------------------------------------------- Moody's Investors Service said that the Ca Corporate Family Rating (CFR) and Negative outlook of Chrysler LLC (Chrysler) remain unchanged following the announcement of a non-binding agreement to establish a global alliance between Chrysler and Fiat S.p.A. Chrysler's Ca CFR and negative outlook continue to reflect the likelihood that the company will face either some form of debt exchange that Moody's would view as a default or a bankruptcy filing. The proposed agreement with Fiat could help to address the weaknesses in Chrysler's product portfolio by providing it with access to Fiat's line-up of smaller, more fuel efficient vehicles. However, the alliance is unlikely to provide any near-term relief from Chrysler's most pressing near-term challenges. These include the company's sizable pace of cash consumption, a liquidity position that can not cover cash requirements during 2009 without government bailout loans, and the steep decline in the US automotive market. Chrysler has been able to avoid a liquidity shortfall only because of the US$4 billion in emergency loans already approved by the US government on December 19, 2009, and additional loans may be needed. The continued extension of government loans beyond March 31, 2009 will require the submission of a restructuring plan by Chrysler that demonstrates, to the government's satisfaction, that the company is viable. Terms of the proposed alliance would have to be consistent with the terms of the government loans to Chrysler and are subject to approval by the US Treasury. The current terms of the government loans contemplate that a degree of shared sacrifice by all constituents -- including creditors, management, and the UAW -- will be a key component of Chrysler's plan. Chrysler has not specifically identified the mechanism for implementing the balance sheet restructuring, nor has it disclosed any specific proposals to debt holders. Nevertheless, the terms of the government loan are suggestive of a debt forgiveness that would be viewed as a distressed exchange by Moody's if implemented. The last rating action on Chrysler was a downgrade of the company's Corporate Family Rating to Ca on December 3, 2008. Chrysler Automotive, LLC is headquartered in Auburn Hills, Michigan. CHRYSLER LLC: S&P Says 'CC' Ratings Not Affected By Fiat Alliance ----------------------------------------------------------------- Standard & Poor's Ratings Services said that its ratings on U.S. automaker Chrysler LLC (CC/Negative/--) and finance affiliate DaimlerChrysler Financial Services Americas LLC (CCC-/Watch Dev/ --) are not immediately affected by the announcement that Fiat SpA (BBB-/Negative/A-3) may acquire a 35% equity interest in Chrysler as part of a broad alliance. Under the non-binding agreement, no upfront cash will be paid by Fiat to Chrysler. The two companies will share vehicle platforms and Fiat will provide access to its small engine capability. "We view Fiat's possible stake and resulting collaboration as just one component of Chrysler's viability plan, which is to be submitted to the U.S. government by Feb. 17. Chrysler would need to address some related issues, including Chrysler's existing agreement with Nissan Motor Co. Ltd. for a Nissan-produced, Chrysler-branded small car to be sold in the U.S., as well as the future of Daimler AG's existing 20% stake in Chrysler," S&P says. "Our most serious concern regarding Chrysler remains the pressure on the company's liquidity during 2009 from the very weak state of most global automotive markets and the constrained state of the capital markets. We believe that the Chrysler-Fiat alliance could create substantial cost savings over time, but that significant execution risks exist, including the possible need for incremental liquidity to accelerate benefits. "We would be skeptical that a Chrysler-Fiat partnership alone could address our primary concern for Chrysler, which is a dearth of current liquidity. However, we believe that the viability plan that Chrysler plans to submit will propose changes to the debt structure and labor agreements that could help reduce cash use. We continue to expect that Chrysler could approach its lenders for a reduction in debt or an exchange at a substantial discount to par -- which we consider tantamount to a default -- and our 'CC' rating reflects that opinion." FIAT SPA: Sales Decline, Debt Soars to US$7.67 Bln in 2008 ---------------------------------------------------------- Fiat SpA has EUR5.94 billion (US$7.67 billion) in industrial debt as at the end of 2008, a huge increase from EUR355 million at the end of 2007, Stacy Meichtry at The Wall Street Journal reports. The report relates according to several people familiar with the matter, Fiat has been in talks with several banks, including Italian banks Unicredit Spa and Intesa Sanpaolo Spa, over the past few weeks over the possibility of large medium-term credit facilities. The group of banks is negotiating with Fiat to provide up to EUR5 billion (US$6.46 billion) in loans, two people familiar with the matter was cited by the Journal as saying. Adding to Fiat's woes is the declining car sales amid the global economic slowdown, the report says. According to the Journal, Fiat's net income plunged 71% in the last three months of 2008 to EUR163 million, down from EUR570 million a year earlier, while revenue fell 17.2% to EUR13.09 billion in the quarter. For all of 2008, Fiat's net profit fell 16.2% to EUR1.7 billion, the report notes. Warning that sales will fall further, Fiat halted a share-buyback program, lowered its forecast for 2009 and planned to cut its dividend, the Journal discloses. Forbes.com reports the carmaker cut its profit outlook for 2009 to EUR1.0 billion (US$1.3 billion) from a previous forecast of between EUR1.5 and EUR2.3 billion (US$1.9 and US$3.0 billion). Chrysler Deal As reported by the Troubled Company Reporter on Jan. 21, 2009, Fiat is in talks with Chrysler LLC about acquiring a stake in the U.S. car maker and forming a partnership to let the Italian auto maker build and sell its small cars in the U.S. Fiat is likely to take a 35% stake in Chrysler by the middle of the year. The Journal relates both auto makers say Fiat doesn't plan to inject any money into Chrysler as part of the potential deal. However, the deal is contingent on Chrysler getting US$3 billion more in financial aid from the U.S. Government, the Journal said in an earlier report citing people familiar with the matter. Meanwhile, Bloomberg News adds to this report that Fiat Chief Executive Officer Sergio Marchionne may still regard a European alliance as his top priority. According to Bloomberg News, Mr. Marchionne said he's "willing to start a dialogue" with any company that favors consolidation. The CEO acknowledged that many in the industry view a Fiat-Peugeot combination as a "marriage made in heaven," stating he needs to proceed "softly and quietly" toward his goals, Bloomberg News relates. About Chrysler LLC Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. About Fiat SpA Headquartered in Turin, Italy, Fiat SpA (BIT:F) -- http://www.fiatgroup.com/-- is principally engaged in the design, manufacture and sale of automobiles, trucks, wheel loaders, excavators, telehandlers, tractors and combine harvesters. Through its subsidiaries, Fiat operates mainly in five business areas: Automobiles, including sectors led by Maserati SpA, Ferrari SpA and Fiat Group Automobiles SpA, which design, produce and sell cars under the Fiat, Alfa Romeo, Lancia, Fiat Professional, Abarth, Ferrari and Maserati brands; Agricultural and Construction Equipment, which is led by Case New Holland Global NV; Trucks and Commercial Vehicles, which is led by Iveco SpA; Components and Production Systems, which includes the sectors led by Magneti Marelli Holding SpA, Teksid SpA, Comau SpA and Fiat Powertrain Technologies SpA, and Other Businesses, which includes the sectors led by Fiat Services SpA, a publishing house Editrice La Stampa SpA and an advertising agency Publikompass SpA. TISCALI SPA: Cuts 250 Jobs in Italy, British Ops Up for Sale ------------------------------------------------------------ Tiscali SpA plans to cut 250 jobs at its domestic unit as part of its new business plan, Reuters reports citing a company statement. Bloomberg News relates, citing daily MF, Tiscali has about 850 staff at its Italian unit. According to Reuters, Tiscali's business plan, to be discussed with trade unions, will include a voluntary redundancy plan. "The plan for the Italian unit foresees an overall reduction in operating costs and of its structure for about 40 million euros," the company said in the statement cited by Reuters. The company is scheduled to meet with unions on Feb. 3, daily MF said in a report obtained by Bloomberg News. Tiscali is also seeking to sell its British activities and talks on the sale are still underway, Reuters says. In November, Reuters recalls Tiscali said it was in talks with British Sky Broadcasting Group PLC about selling its British assets. Headquartered in Cagliari, Italy, Tiscali SpA (BIT:TIS) -- http://www.tiscali.com/-- is an Internet communications company providing broadband and narrowband access for consumer and business applications, as well as communications services and content. The company's portfolio includes Internet access in the form of dial-up, broadband, satellite and leased lines, and hosting services, such as co-location, shared hosting and managed hosting. Tiscali also offers streaming media, telephony and such services as virtual private networks (VPN), allowing companies to communicate with remote branches. Its consumer products and services include Internet access, voice, media, Internet Protocol Television (IPTV) and value-added services, such as e-mail, Net calendar, Net fax, Net phone, mail, instant messaging and Web hosting. It is operational in Europe through its subsidiaries and joint ventures. As of June 30, 2008, Tiscali had approximately 3.2 million active users in Italy and the United Kingdom. =================== K A Z A K H S T A N =================== AUTO INVEST: Proof of Claim Deadline Slated for February 27 ----------------------------------------------------------- LLP Auto Invest has declared insolvency. Creditors have until Feb. 27, 2009, to submit written proofs of claim to: LLP Auto Invest Alihanov Str. 37-101 Karaganda Kazakhstan BESLAN & K: Creditors Must File Claims by February 26 ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda has declared LLP Beslan & K insolvent. Creditors have until Feb. 26, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Karaganda Jambyl Str. 9 Karaganda Kazakhstan JAINAK BN: Claims Filing Period Ends February 27 ------------------------------------------------ The Specialized Inter-Regional Economic Court of Aktube has declared LLP Jainak BN insolvent. Creditors have until Feb. 27, 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 JIDEK-S LLP: Creditors' Proofs of Claim Due on February 27 ---------------------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Jidek-S insolvent. Creditors have until Feb. 27, 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 KAZTEMIRTRANS JSC: Moody's Reviews Issuer Rating for Likely Cut --------------------------------------------------------------- Moody's Investors Service has placed JSC Kaztemirtrans' Baa3 issuer rating on review for possible downgrade. The review was launched simultaneously with the review of JSC National Company Kazakhstan Temir Zholy as KTT is a wholly-owned subsidiary of KTZ and is managed as integral part of the KTZ group. Moody's comments that the rating of KTT is based upon the fundamentals of the company, its role within the KTZ group and the support it therefore indirectly benefits from the state because of this affiliation. The review on KTT's rating reflects risks of a worsening economic and financial environment going forward, which may affect the operations of the group and impact its ability to fund its capital expenditures program. At the same time, though Moody's notes KTT's important role for KTZ and hence for the economy of Kazakhstan, the support and dependence assumptions embodied in KTT's rating under Moody's rating methodology for Government Related Issuers might need to be reassessed in conjunction with those for KTZ to take into account the increasing reliance of key domestic businesses on the government financial support. In accordance with Moody's rating methodology for GRIs, the Baa3 rating of KTT reflects the Baa1 local currency rating of the Kazakhstan government and the combination, which is now reassessed by Moody's, of these inputs: - Baseline credit assessment of 14 (on a scale of 1 to 21, where 1 represents the lowest risk and 14 corresponds to the B1 category) - Moderate dependence assessment - High support Moody's review will mainly focus on i) 2009 tariff decisions for KTT and the company's ability to adjust its investment program and financing policy in line with tariff decisions and changing market conditions, and ii) forms, timeliness and certainty of the government support available to the KTZ group and hence to the company in case of need. The previous rating action on KTT was implemented on May 28, 2008, when Moody's assigned a Baa3 issuer rating to the company. Headquartered in the city of Astana, KTT is a 100%-owned subsidiary of KTZ, which is the 100% state-controlled vertically integrated railway business in the Republic of Kazakhstan. The sole shareholder of KTZ is the state represented by JSC National Welfare Fund SamrukKazyna. KTT owns and operates the largest railcar fleet in Kazakhstan, generating its revenues largely from leasing railcars out to the KTZ group. The latter provides about 94% of KTT's 2007 revenues of KZT30.6 billion (approximately US$250 million). KTZ JSC: Moody's Reviews Issuer Rating for Possible Downgrade ------------------------------------------------------------- Moody's Investors Service has placed on review for possible downgrade JSC National Company Kazakhstan Temir Zholy's A3 issuer rating and the A3 rating of the senior unsecured eurobonds, amounting to USD800 million, issued by Kazakhstan Temir Zholy Finance B.V., a special purpose financial company, and guaranteed by KTZ and its operating subsidiaries. The review reflects risks of a worsening economic and financial environment for KTZ going forward, which may affect the operations of the company and impact its ability to fund its current capital expenditures program. At the same time though Moody's notes KTZ's strategic importance for the economy of the Republic of Kazakhstan, the government support and default dependence assumptions embodied in the rating under Moody's rating methodology for Government Related Issuers might need to be reassessed to take into account the developments in the financial markets and the increasing reliance of key domestic businesses on the government financial support. In particular, Moody's comments that its support assessment for the company is likely to remain high, however, it notes that the assessment of default dependence between the company and the government may increase, resulting in a smaller uplift from an intrinsic creditworthiness of the company reflected in a BCA to a final rating. In accordance with Moody's rating methodology for GRIs, the A3 rating of KTZ reflects the Baa1 local currency rating of the Kazakhstan government and the combination, which is now reassessed by Moody's, of these inputs: - Baseline credit assessment ("BCA") of 11 (on a scale of 1 to 21, where 1 represents the lowest risk and 11 corresponds to the Ba1 category) - Moderate dependence assessment - High support Moody's review will mainly focus on i) 2009 tariff decisions for KTZ and the company's ability to adjust its long-term investment program and financing policy in line with tariff decisions and changing market conditions, and ii) forms, timeliness and certainty of the government support available for the company in case of need. The previous rating action on KTZ was implemented on June 12, 2006, when Moody's upgraded the company and its eurobonds to A3 following actions on the Kazakhstan sovereign rating and country ceiling. KTZ is the 100% state-controlled vertically integrated rail group operating the national rail network of the Republic of Kazakhstan. The sole shareholder of KTZ is the state represented by JSC National Welfare Fund SamrukKazyna. KTZ is the monopoly provider of rail infrastructure services and has the leading position in the railway market in Kazakhstan. The company has more than 135 thousand employees. Its reported 2007 consolidated revenues amounted to KZT423.6 billion. LOKADA LTD: Claims Registration Period Ends February 27 ------------------------------------------------------- LLP Lokada Ltd. Semey has declared insolvency. Creditors have until Feb. 27, 2009, to submit written proofs of claim to: LLP Lokada Ltd. Semey 17 liniya Str. 49b Vostochny Semey East Kazakhstan Kazakhstan MONTAGE SERVICE: Proof of Claim Deadline Slated for February 27 --------------------------------------------------------------- LLP Prom Montage Service has declared insolvency. Creditors have until Feb. 27, 2009, to submit written proofs of claim to: LLP Prom Montage Service Almazov Str. 71-39 Uralsk West Kazakhstan Kazakhstan STR PROJECTS: Creditors Must File Claims by February 27 ------------------------------------------------------- LLP Str Projects has declared insolvency. Creditors have until Feb. 27, 2009, to submit written proofs of claim to: LLP Str Projects Severnaya promzona Str. 87 Atyrau Kazakhstan Tel: 8 (7122) 76-31-27 UNIVERSAL-PLUS LLP: Claims Filing Period Ends February 27 --------------------------------------------------------- The Specialized Inter-Regional Economic Court of South Kazakhstan has declared LLP Universal-Plus insolvent. Creditors have until Feb. 27, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of South Kazakhstan Ilyaev Str. 24 Shymkent South Kazakhstan Kazakhstan VODNIK LLP: Creditors' Proofs of Claim Due on February 27 ---------------------------------------------------------- The Specialized Inter-Regional Economic Court of South Kazakhstan has declared LLP Vodnik insolvent. Creditors have until Feb. 27, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of South Kazakhstan Ilyaev Str. 24 Shymkent South Kazakhstan Kazakhstan WOOD BANK: Claims Registration Ends February 27 ----------------------------------------------- LLP Wood Bank Co. Ltd. has declared insolvency. Creditors have until Feb. 27, 2009, to submit written proofs of claim to: LLP Wood Bank Co. Ltd. Satpaev Str. 40 Almaty Kazakhstan =================== K Y R G Y Z S T A N =================== NIPPON CONCEPT: Creditors Must File Claims by February 20 --------------------------------------------------------- LLC Nippon Concept has declared insolvency. Creditors have until Feb. 20, 2009, to submit written proofs of claim to: LLC Nippon Concept Krasnaya Str. 26 Bishkek Kyrgystan The company can be reached at: (+996 312) 65-35-36 =========== L A T V I A =========== * LATVIA: European Union Council Approves EUR3.1 Billion Loan ------------------------------------------------------------- The Council of the European Union on Tuesday, January 20, 2009, adopted decisions approving the granting of a loan of EUR3.1 billion to Latvia to enable it to deal with the country's current financial crisis. The loan is part of a EUR7.5 billion package of assistance to support Latvia's balance of payments in the medium term. The package also includes EUR1.7 billion from the International Monetary Fund as well as contributions from the World Bank, the European Bank for Reconstruction and Development and other European countries: Czech Republic, Denmark, Estonia, Norway, Poland, Sweden and Finland. The EU loan will be made available over a three-year period, with a maximum average maturity of seven years. The assistance will help Latvia cope with pressure on its capital and financial markets, which results from a deterioration in market sentiment and concerns about the health of its economy, given the imbalances related to its external debt, weakening public finances and high rates of cost and price inflation. The Latvian banking sector has experienced serious liquidity and confidence problems, and the level of foreign currency reserves has decreased as the central bank intervened to preserve the currency peg. The loan is conditional on the Latvian authorities taking measures to stem immediate liquidity pressures, to restore long-term stability by strengthening the banking sector and to correct fiscal imbalances. Latvia has agreed to pursue domestic policies to improve competitiveness, whilst maintaining a narrow-band exchange rate at its existing central rate. These measures include an immediate and sustained fiscal consolidation, a comprehensive bank resolution strategy, a strengthened crisis management capacity for Latvia's regulatory authorities, as well as structural reforms and other measures. The Council decisions are based on the EU's support facility for medium-term assistance to the balances of payments of non-euro- area member states in the event of financial difficulty. The Council granted a similar loan to Hungary at its meeting on November 4( doc. 15103/08 ), and on December 2 raised the ceiling for assistance available under the support facility, from EUR12 billion to EUR25 billion ( doc. 16565/1/08 REV 1 ). =================== L U X E M B O U R G =================== BERNARD L. MADOFF: 17 Luxembourg Funds Forced to Halt Redemptions ----------------------------------------------------------------- Seventeen Luxembourg funds and sub funds suspended redemptions on concerns the Bernard L. Madoff investment scam will damage the country's fund industry, Bloomberg News reports. Luxembourg, the world's second-largest mutual fund market after the U.S., was the first nation to implement a set of harmonized rules passed by the European Union in 1985, according to Bloomberg News. The report discloses the funds at issue are mostly Undertakings for Collective Investment in Transferable Securities, or UCITS. Almost 3,400 registered Luxembourg funds hold assets of more than EUR1.6 trillion (US$2 trillion), a value that's 30 percent of the EUR5.2 trillion funds in Europe, Bloomberg News says citing data from the country's fund industry association. "Considering the size of our industry, it's not surprising that Luxembourg funds also invested money (directly or indirectly) with Madoff and are now among his victims," Luxembourg Fund Industry Association's deputy director-general, Charles Muller, was quoted by Bloomberg News as saying. "Lessons have to be learned to avoid such situations from happening again." According to an e-mail message Luxembourg's financial regulator Commission de Surveillance du Secteur Financier sent to Bloomberg News, these Luxembourg-registered sub-funds and funds have suspended their net asset valuations, the subscription and redemptions of their shares since the Madoff fraud: *U.S. Absolute Return of Herald (Lux) *U.S. Equity Plus of Luxembourg Investment Fund *American Selection of Luxalpha Sicav *Arbitrage of Norvest *Balanced sub-fund, Growth sub-fund et Xtra Alternative Investments Sub-fund of GLOBAL FUND SELECTION Sicav *Global One of Carat (Lux) Sicav *LRI Invest Alpha Stable EUR *BG Global Classic, BG Global Dynamic, BG Global Challenge, BG Global Balance, BG Global Discovery, BG Stable Value of BG Umbrella Fund *One (c) of the fund MARS *Best Selection of Pareturn About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC was a market maker in US stocks, including all of the S&P 500 and more than 350 Nasdaq stocks. The firm moved large blocks of stock for institutional clients by splitting up orders or arranging off-exchange transactions between parties. It also performed clearing and settlement services. Clients included brokerages, banks, and other financial institutions. In addition, Madoff Securities managed assets for high-net-worth individuals, hedge funds, and other institutional investors. The firm is being liquidated in the aftermath of a fraud scandal involving founder Bernard L. Madoff. As reported by the Troubled Company Reporter on Dec. 15, 2008, the Securities and Exchange Commission charged Bernard L. Madoff and his investment firm, Bernard L. Madoff Investment Securities LLC, with securities fraud for a multi-billion dollar Ponzi scheme that he perpetrated on advisory clients of his firm. The estimated losses from Madoff's fraud were at least US$50 billion. Also on Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. Irving H. Picard, Esq., was appointed as trustee for the liquidation of BLMIS, and Baker & Hostetler LLP was appointed as counsel. =============== P O R T U G A L =============== PORTUGAL: Commission Okays EUR500,000 Aid Scheme for Businesses --------------------------------------------------------------- The European Commission has, under the state aid rules of the EC Treaty, authorised the first in a series of aid measures for businesses planned by Portugal to deal with the current economic crisis. This measure will enable aid of up to EUR500,000 to be granted in 2009 and 2010 to businesses in difficulty as a consequence of the current economy crisis or facing funding problems because of the credit crunch. The scheme meets the conditions imposed by the Commission's temporary framework giving Member States additional possibilities for providing businesses with improved access to financing during the economic and financial crisis. It is therefore compatible with Article 87(3)(b) of the EC Treaty, which permits aid intended to remedy a serious disturbance in the economy of a Member State. Competition Commissioner Neelie Kroes said: "This measure will help alleviate the difficulties faced by Portuguese businesses affected by the current situation without giving rise to any undue distortions of competition. Thanks to the excellent cooperation of the Portuguese authorities, it was possible to approve the measure very quickly." The scheme is based on the provisions of the temporary framework that deal with compatible aid of a limited amount. In particular, the maximum amount of aid does not exceed EUR500,000 per company and the scheme applies only to businesses which were not in difficulty on July 1, 2008. This scheme is the first measure authorized for Portugal under the new temporary framework for state aid adopted in principle by the Commission on December 17, 2008. Portugal is the third country, after Germany and France, to avail itself of this new temporary framework. =========== R U S S I A =========== DAGESTAN OJSC: Creditors Must File Claims by Mar. 16 ---------------------------------------------------- Creditors of OJSC Dagestan Wine and Cannery Plant have until March 16, 2009, to submit proofs of claims to: M. Baymurzayev Insolvency Manager Gagarina Str. 56/88 Makhachkala Russia The Arbitration Court of Dagestan commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?15–570/08. The Debtor can be reached at: OJSC Dagestan Wine and Cannery Plant Manas Karabudakhkentskiy Dagestan Russia DOMOSTROY LLC: Ryazan Bankruptcy Hearing Set June 9 --------------------------------------------------- The Arbitration Court of Ryazan will convene at 11:00 a.m. on June 9, 2009, to hear bankruptcy supervision procedure on LLC Domostroy (Construction). The case is docketed under Case No. ?54–4990/2008. The Temporary Insolvency Manager is: I. Khlystov Post User Box 155 390035 Ryazan Russia The Debtor can be reached at: LLC Domostroy Gorkogo Str. 17 390000 Ryazan Russia EXPERIMENTAL MECHANICAL: Creditors Must File Claims by Feb. 16 -------------------------------------------------------------- Creditors of LLC Experimental Mechanical Plant have until Feb. 16, 2009, to submit proofs of claims to: S. Stolyarova Insolvency Manager Post user Box 18 600005 Vladimir Russia The Arbitration Court of Vladimir commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?11–10033/2008-?1–222B. The Debtor can be reached at: LLC Experimental Mechanical Plant Vladimir Russia FORD MOTOR: Production Resumed at St. Petersburg Plant ------------------------------------------------------ RIA Novosti reports that a Ford factory near Russia's second city of St. Petersburg resumed work Wednesday after it shut down on December 24. "The plant is resuming work in the normal regime," the Ford press office, as cited by the report, said. The report recalls the company decided to halt production late in December in connection with the New Year vacations, the ongoing global financial crisis and the necessity to cut output and costs due to an expected slump in 2009 sales in Russia. According to the report, the company paid its workers two-thirds of their salaries during the extended holidays in line with Russia's Labor Code . The factory, which produces Ford Focus cars, earlier announced it planned to produce 125,000 cars in 2009, the report discloses. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin-American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter on Nov. 11, 2008, Moody's Investors Service lowered the debt ratings of Ford Motor Company, Corporate Family and Probability of Default Ratings to Caa1 from B3. The company's Speculative Grade Liquidity rating remains at SGL-3 and the rating outlook is negative. In a related action Moody's also lowered the long-term rating of Ford Motor Credit Company to B3 from B2. The outlook for Ford Credit is negative. As reported in the Troubled Company Reporter on Oct. 10, 2008, Fitch Ratings downgraded the Issuer Default Rating of Ford Motor Company and Ford Motor Credit Company by one notch to 'CCC' from 'B-'. LOKOMOTIV-TRANS-SEVER LLC: Creditors Must File Claims by March 16 ---------------------------------------------------------------- Creditors of LLC Lokomotiv-Trans-Sever (Industrial Railway Transport) have until March 16, 2009, to submit proofs of claims to: P. Ostroumov Insolvency Manager Building 8Gasheka Str. 8/10 125047 Moscow Russia The Arbitration Court of Saint-Petersburg will convene at 10:30 a.m. on Nov.23, 2009, to hear bankruptcy proceedings. The case is docketed under Case No. ?56–7757/2008. The Court is located at: The Arbitration Court of Saint-Petersburg Suvorovskiy prospect 50/52 191015 Saint-Petersburg Russia METEO-PRIBOR KIMOVSKIY: Creditors Must File Claims by March 16 -------------------------------------------------------------- Creditors of OJSC Meteo-Pribor Kimovskiy Plant (TIN 7115001155) (Radio, Radio-Navigation and Radar Equipment Production) have until March 16, 2009, to submit proofs of claims to: R. Kutlin Insolvency Manager Arsenalnaya Str. 1 300002 Tula Russia The Arbitration Court of Tula commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?68–954/08–22B. The Debtor can be reached at: OJSC Meteo-Pribor Kimovskiy Plant Shakhtinskiy Kimovsk Tulskaya Russia MIKO OIL CJSC: Creditors Must File Claims by March 16 ----------------------------------------------------- Creditors of CJSC MiKo Oil have until March 16, 2009, to submit proofs of claims to: A. Kiselev Insolvency Manager Bezverkhova Str. 5 628408 Surgut Khanty-Mansiysk Russia The Arbitration Court of Khanty-Mansiysk will convene at 9:00 a.m. on Dec. 14, 2009, to hear bankruptcy proceedings. The case is docketed under Case No. ?75–3151/2008. The Court is located at: The Arbitration Court of Khanty-Mansiysk Office 401 Lenina Str. 54/1 Khanty-Mansiysk Russia The Debtor can be reached at: CJSC MiKo Omskaya Str. 4/38 628600 Nizhnevartovsk Khanty-Mansiysk Russia RUSAL UC: Appoints Oleg Deripaska as Chief Executive ---------------------------------------------------- Oleg Deripaska was appointed CEO of United Company RUSAL on Sunday January 18, 2009. His candidacy was proposed by EN+ and supported by other shareholders of RUSAL. Alexander Bulygin, who has until recently been the CEO of RUSAL, will move to chair the Board of Directors of EN+ Group, the main shareholder of RUSAL. In this position, he will oversee matters of integration of the Russian metal and mining assets, be responsible for raising the efficiency of En+ Group, as well as coordinate the interests of RUSAL shareholders on the Norilsk Nickel Board of Directors. Commenting on the management changes, Oleg Deripaska said: "Alexander Bulygin has headed RUSAL for more than five years. Under his management the company, which was the largest Russian aluminium producer, became the leader of the world's aluminium industry, a truly global company with diversified and one of the most competitive operations in the global metal and mining sector. I am confident that Alexander's experience in consolidating assets and executing large deals will be applied in full in his new role." Mr. Deripaska was already the CEO of RUSAL for a three year period after the company was established in 2000. In the following years he took an active part in the company's development as a member of the Board of Directors. Now his role as CEO will be focused on providing for the sustainable development of the company under the conditions of the global financial crisis and implementing a series of crisis management measures. On Nov. 28, 2008, the TCR-Europe reported that according to Reuters, RusAl said it will be able to pay on time a deferred US$700 million tranche to billionaire Mikhail Prokhorov for the purchase of his stake in Norilsk Nickel. Citing Vedomosti newspaper, Reuters stated RusAl had agreed with Mr. Prokhorov to defer again the tranche originally due on Oct. 24. Reuters disclosed Vedomosti said, RusAl, which had already agreed with Mr. Prokhorov to move the original deadline of the payment to Nov. 15, is to make the payment in two tranches, by Dec.1 and Feb.1. About RusAl Headquartered in Moscow, Russia, Russky Alyuminiyum - http://www.rusal.ru/en/-- is the world's largest producer of aluminium and alumina, was established in March 2007 following the merger of assets of three companies: RUSAL, previously the third largest global aluminium company; SUAL, one of the world's top ten players in the aluminium business; and the alumina assets of Glencore (Switzerland). SIBIRSKAY TIMBER: Creditors Must File Claims by February 16 ----------------------------------------------------------- Creditors of LLC Sibirskaya Timber Company (TIN 3804025650) have until Feb. 16, 2009, to submit proofs of claims to: S. Kamayev Temporary Insolvency Manager Post User Box 281 Karla Marksa Str. 26b 664003 Irkutsk Russia The Arbitration Court of Irkutsk will convene on April 29, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?19-14293/08-8-60. The Debtor can be reached at: LLC Sibirskaya Timber Company Prom. Ploshchadka 10150101 Bratsk 665716 Irkutskaya Russia SMOLENSKAYA NEFTEPROMYSHLENNAYA: Claims Filing Ends March 16 ------------------------------------------------------------ Creditors of LLC Smolenskaya Neftepromyshlennya Kompaniya have until March 16, 2009, to submit proofs of claims to: A. Popov Insolvency Manager Post user Box 345 115230 Moscow-230 Russia The Arbitration Court of Smolenskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A62–3092/08. The Debtor can be reached at: LLC Smolenskaya Neftepromyshlennya Kompaniya Przhevalskogo Str. 9/27/5 Smolensk Russia TUVINSKIE AIRWAYS FSUE: Creditors Must File Claims by March 16 -------------------------------------------------------------- Creditors of FSUE Tuvinskie Airways have until March 16, 2009, to submit proofs of claims to: A. Sherykhanov Insolvency Manager Airport Building Kyzyl 667008 Tyva Russia The Arbitration Court of Tyva commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?69–650/07–10. The Debtor can be reached at: FSUE Tuvinskie Airways Airport Building Kyzyl 667008 Tyva Russia * Fitch Reports Negative Credit Outlook for Russian Construction ---------------------------------------------------------------- Fitch Ratings says that the credit outlook for Russian construction and property companies will continue to be negative in 2009 as the property market extends its downturn and financing remains tight. "The property market downturn in Russia, which started in late 2008, is expected to intensify in 2009. Main factors driving the downturn are slowing Russian GDP growth, corporates' and individual homebuyers' lower access to funds to finance property purchases, reduced investor activity, and increasingly negative sentiment overall," says Artem Frolov, Associate Director in Fitch's EMEA Construction and Property team. "Both volumes and prices are expected to fall significantly, and Fitch estimates Russian property prices will decrease by 20%-40% in 2009, depending on the region and sector." Along with a fall in demand, 2009 is likely to see a severe reduction in supply within the primary property market. Many property developers will be unable to finance planned projects given their low levels of internal cash resources, due to negative free cash flows, low cash balances, and a lack of access to external funding, with banks and investors increasingly unwilling, or simply unable, to provide new debt and equity financing. "Build-and-sell" developers are now less able to part-finance projects with pre-sales, as customers become increasingly reluctant to make cash deposits on non-completed projects for fear that developers are unable to deliver the final product. Although asset and project disposals, as well as investment partners, could provide financing, these could be challenging to achieve in the current difficult climate. Scaling back operating expenses is expected to only release limited additional funds - insufficient to meet considerable construction costs. Following a severe contraction in lending to the Russian property sector in 2008, Fitch believes the financing environment is unlikely to materially improve in 2009. New public debt issuance will be especially challenging to achieve. Access to bank financing - a major source of funding for the sector over the past several years - will continue to be highly rationed, due to liquidity constraints within the domestic banking system and with the reduced activity of foreign banks in the sector. Similarly, financing via the equity market is unlikely to be a feasible option during 2009. Companies that are able to obtain financing from state-controlled banks or from supportive parent companies, such as Sistema-Hals JSC, are likely to fare better. Fitch notes that only one company in its rated universe of Russian developers, OJSC LSR Group, was explicitly included in the recent government list of corporates qualifying for potential federal support. This implies that a large-scale state bailout of the sector is unlikely. The historical reliance on short-term debt to finance long-term projects will leave some property and construction companies facing substantial debt maturities during 2009. In many cases, the prospect for repaying or refinancing these debts is uncertain because of weakening operating cash flows, the difficult environment for asset sales, limited availability of new debt and low levels of back-up liquidity including cash and long-term undrawn committed credit facilities. The risk could be even higher for companies with substantial foreign currency-denominated debt. These companies are particularly vulnerable to further rouble depreciation, unless they have a sufficient proportion of operating cash inflows denominated in or linked to foreign currency. Fitch also notes that the expected fall in profitability and asset values during 2009 could lead to covenant problems, which in turn could intensify liquidity pressures by triggering the early repayment of certain debt packages. Credit profiles within the sector have been under pressure since the spring of 2008, as reflected in a number of negative ratings actions in the past year. Fitch currently rates four top-tier Russian construction and property companies: JSC OPIN ('B'/Stable), Sistema-Hals JSC ('B'/Negative), OJSC LSR Group ('B'/Rating Watch Negative), and Mirax Group LLC ('B'/Rating Watch Negative). Given the negative trends across the sector, further negative rating actions remain a possibility during 2009. ===================================== S E R B I A & M O N T E N E G R O ===================================== * SERBIA: IMF Approves EUR402.5 Mln Stand-By Arrangement -------------------------------------------------------- The Executive Board of the International Monetary Fund on Friday, January 16, 2009, approved a 15-month SDR350.8 million Stand-By Arrangement (about EUR402.5 million or US$530.3) to support the authorities' program aimed at maintaining macroeconomic and financial stability. The approval makes SDR233.9 million (about EUR268.4 million or US$353.3) immediately available. However, the Serbian authorities intend to treat the arrangement as precautionary, and not to draw on Fund resources unless the need arises. The authorities' program aims at safeguarding macroeconomic and financial stability, in view of the global financial turmoil. It focuses on measures aimed at maintaining market confidence, complementing the large buffers in the financial system. Policies include upfront fiscal restraint, with the 2009 deficit limited to 1¾ percent of GDP; containing inflation, while maintaining a managed float to facilitate external adjustment; strengthening crisis preparedness; and reforms to boost the economy's supply side. Following the Executive Board discussion, Mr. Murilo Portugal, Deputy Managing Director and Acting Chair, issued the following statement: "Serbia's recent stretch of robust growth and moderate underlying inflation—underpinned by large capital inflows—has been accompanied by the build-up of sizable external imbalances and vulnerabilities. With the global financial turmoil spilling over to Serbia, a rebalancing of the economy through a sharp slowing of credit and domestic demand seems necessary. "The authorities' program—supported by the SBA—is an appropriate response to the current challenges, and seeks to safeguard macroeconomic and financial stability through a comprehensive policy package. Determined implementation of this program should poise the Serbian economy to resume more balanced and sustained real income growth. "Strong fiscal measures are being taken to achieve the tighter 2009 deficit target. Because of the procyclical fiscal policy stance since 2006, limited budgetary financing options, and the need to ensure the credibility of the program, there is no scope now for countercyclical fiscal loosening. The slowdown in public wage and pension growth, as well as other savings measures, preserve fiscal space for much-needed infrastructure investment. "Monetary policy will continue to focus on inflation within a strengthened framework, supported by a managed float with foreign exchange interventions limited to ensuring orderly market conditions. Given the uncertain economic environment, the monetary stance will need to be adjusted flexibly. "Past prudential policies are now paying off in providing a strong first line of defense against spillovers from the financial turmoil. These policies have succeeded in building large liquidity and capital buffers in the banking system, although they may also have encouraged risky cross-border borrowing. The authorities need to strengthen the financial stability framework, mainly by improving the monitoring of risks and setting up comprehensive contingency plans. "Structural policies need to address the economy's weak supply side, with a view to delivering balanced and sustainable catch-up growth toward EU income levels. The program calls for privatizing, restructuring, or liquidating a wide range of state- and socially owned- enterprises, as well as lowering the cost of doing business, to help expand the undersized private sector. "The authorities have started to implement their program steadfastly. This gives confidence that the Serbian economy, with the support of the international community, will succeed in overcoming the present difficulties," Mr. Portugal said. Recent Economic Developments The global financial turmoil began to spill over to Serbia in the fourth quarter of 2008, as for the region as a whole. The stock market plummeted; sovereign spreads soared; households withdrew some of their deposits; and, amid high volatility and frequent NBS interventions to maintain foreign exchange market liquidity, the dinar depreciated. Growth, which so far was strong, seemed to be losing momentum. A t the same time, the reversal of the region- wide food and energy price shocks eased headline inflation pressures. These outcomes were accompanied by the build-up of an increasingly unbalanced external position. The current account deficit could reach 18 percent of GDP in 2008, although it has so far been easily financed by capital inflows, resulting in rising international reserves. Consequently, external stability risks have increased substantially in the current international environment. These reflect Serbia's unsustainably large external deficit; the private sector's high external indebtedness; high euroization; and indications of weak export competitiveness. Financial stability risks have also increased, but the banking sector's liquidity and capital buffers are comforting. Program Summary The authorities' program, supported by the SBA, responds to the abrupt deterioration in the short-term outlook: trading partner growth and prices of key Serbian exports, particularly metals, are projected to slow sharply in 2009; and formerly plentiful capital inflows can no longer be taken for granted, further constraining domestic and cross-border credit growth. The program's objective is to safeguard macroeconomic and financial stability through strengthened policies, designed to underpin an orderly rebalancing of the economy. The policy package focuses on four main features: * Tightening of the fiscal stance in 2009-10, with the 2009 general government deficit limited to 1 3/4 percent of GDP, followed by further fiscal consolidation in 2010. This involves strict incomes policies for containing public sector wage and pension growth and a streamlining of non- priority recurrent spending, which helps create fiscal space to expand infrastructure investment. * Strengthening the inflation targeting framework while maintaining a managed floating exchange rate regime. * Making good use of the accumulated financial sector buffers, while enhancing financial crisis preparedness. * Implementing structural policies to address the roots of the economy's low capacity to produce, save, and export. The main elements of the fiscal package include The program's macroeconomic framework assumes a decline of foreign inflows and domestic credit, which should lead to a slowdown in domestic demand, output growth, and inflation, and a narrowing of external imbalances. Real GDP growth is projected to decelerate to 3 1/2 percent in 2009 but should rebound in 2010. With the inflation-reducing effects of commodity price declines and slowing activity being counteracted by pressures on the exchange rate, inflation is projected to slow only gradually to 8 percent by end- 2009. Serbia joined the IMF on December 14, 1992; its quota is SDR467.7 million (about EUR541 million or US$707 million) and it has no outstanding use of IMF credit. Its latest arrangement with the IMF was an Extended Fund Facility, completed on February 28, 2006. ========= S P A I N ========= CEMEX SAB: S&P Downgrades Corporate Credit Rating to 'BB+' ---------------------------------------------------------- Standard & Poor's Ratings Services said that it had lowered its long-term corporate credit rating on Cemex S.A.B. de C.V. and Cemex's key operating subsidiaries (Cemex Espana, S.A., Cemex Mexico S.A. de C.V., and Cemex Inc.) to 'BB+' from 'BBB-', and placed the ratings on CreditWatch with negative implications, meaning that the rating could either be lowered or affirmed following the completion of S&P's review. The long-term Mexican national scale rating on Cemex also was lowered, to 'mxAA-' from 'mxAA'. At the same time, S&P lowered its rating on Cemex's fixed-to-floating callable perpetual debentures to 'BB' from 'BB+'. The rating downgrades reflect S&P's expectations that Cemex's financial performance for 2009 will be under further pressure given the weakening of economic growth prospects in Cemex's principal markets and around the world. About 74% of the company's revenue is concentrated in the U.S., Mexico, and Spain -- all of which S&P expects to record negative growth in this year, which will translate into lower volumes and cash flow generation compared with 2008. As a result, S&P believes that the financial target of the ratio of funds from operations-to-adjusted net debt in 2009 will be below S&P's expected 2008 ratio of 15%. "Although Cemex has succeeded in its debt-refinancing efforts (covering almost 60% of the total debt maturing in 2009) and consented to amending the leverage ratio covenant in its existing loan facilities, S&P believes that maturities in 2009 will still be relatively high compared with Cemex's expected cash flow generation and cash position," said Juan Pablo Becerra, of Standard & Poor's Corporate & Infrastructure Ratings group. "Additionally, S&P considered Cemex´s liquidity as weak." The CreditWatch placement reflects S&P's concerns that Cemex will experience further deterioration in its key financial ratios, as well as the fact that the company will have to rely on asset disposals to cover part of its maturities in 2009. "Additionally, S&P is concerned that Cemex's asset sales may be hampered by depressed asset prices and the near-freeze in the credit markets," added Mr. Becerra. "We expect to resolve the CreditWatch listing upon a full review of the issuer's plans to address its maturities in 2009." EMPRESAS HIPOTECARIO: S&P's Ratings on Two Notes Tumble to 'D' -------------------------------------------------------------- Standard & Poor's Ratings Services took various rating actions on the notes issued by Empresas Hipotecario TDA CAM 3, Fondo de Titulizacion de Activos (Empresas Hipotecario TDA CAM 3), FTPYME TDA CAM 4, Fondo de Titulizacion de Activos (FTPYME TDA CAM 4), and EMPRESAS HIPOTECARIO TDA CAM 5, Fondo de Titulizacion de Activos (Empresas Hipotecario TDA CAM 5). Specifically, S&P: -— Lowered the rating on FTPYME TDA CAM 4's class B notes; —- Lowered and removed from CreditWatch negative the ratings on Empresas Hipotecario TDA CAM 3's and TDA FTPYME CAM 4's class C notes, and Empresas Hipotecario TDA CAM 5's class B and C notes; —- Placed Empresas Hipotecario TDA CAM 3's class B notes on CreditWatch negative; —- Kept on CreditWatch negative the 'AAA' rated notes in all three transactions; and —- Affirmed FTPYME TDA CAM 4's and Empresas Hipotecario TDA CAM 5's class D notes. S&P placed the class C notes issued by Empresas Hipotecario TDA CAM 3 and FTPYME TDA CAM 4 and the class B and C notes in Empresas Hipotecario TDA CAM 5 on CreditWatch negative on Oct. 21, 2008, following an initial analysis of the performance of those deals. At that time, the collateral performance had highlighted factors that had increased the possibility of negative rating actions for certain junior classes. The rating actions follow a full credit and cash flow analysis of the most recent transaction information and loan-level data that S&P has received for these particular Spanish small and midsize enterprise, originated by Caja de Ahorros del Mediterraneo. The collateral in these transactions shows a high geographical concentration in the Valencia region that represents 39.81% of the outstanding collateral in Empresas Hipotecario TDA CAM 3, 52.81%% in FTPYME TDA CAM 4, and 45.90% in Empresas Hipotecario TDA CAM 5. While these deals show an industry concentration in real estate and construction sectors slightly lower than the typical Spanish SME deals that S&P has rated, its analysis of the data provided suggests that each securitized pool contains a higher-than-average portion of loans granted to developers. Those loans, in S&P's opinion, are more exposed to an expected rapid deterioration in performance in the current economic environment. Empresas Hipotecario TDA CAM 3 This transaction is backed by a less granular pool than those backing TDA FTPYME CAM 4 and TDA Empresas Hipotecario 5. According to the latest available information, the collateral includes 430 loans and the top 10 borrowers represent 19.54% of the current outstanding balance. As a result, the deal's performance is more sensitive to individual loan defaults, and S&P reflected this concentration in S&P's analysis. 90+ day delinquent loans currently represent 2.24% of the outstanding balance, or EUR11.24 million. Gross cumulative defaults represent only 0.16% of the original outstanding balance; however, given the current economic environment, S&P expects defaults to increase in the near to medium term. S&P's credit and cash flow analysis demonstrated that the class C notes can no longer maintain their current rating. In addition, the results illustrated that the probability of a negative rating action for the class B notes has increased. FTPYME TDA CAM 4 Loans in arrears for more than 90 days have almost doubled to EUR16.58 million as of Nov. 30, 2008, from EUR8.90 million as of March 2008. Gross cumulative defaults represent only 0.36% of the original balance; however, given the current economic environment, S&P expects a significant portion of the 90+ day arrears to default in the near to medium term. This could potentially increase the likelihood of a breach of the deferral of interest trigger. The deferral of interest triggers are based on cumulative defaults reaching 4.85% of the initial collateral balance for the class C notes, and 8.00% for the class B notes. S&P considers that a breach of the trigger could potentially result in the junior and mezzanine notes experiencing an interest shortfall, while senior notes would deleverage more quickly. S&P's credit and cash flow analysis demonstrates that the credit enhancement available to the class B and C notes is, in S&P's opinion, insufficient to maintain the current ratings. Empresas Hipotecario TDA CAM 5 This transaction closed in October 2007. According to the latest available information, 90+ day arrears reached 2.51% of the outstanding collateral. Gross cumulative defaults increased to 0.4% of the original collateral balance, or EUR5.6 million— slightly higher than those observed for TDA FTPYME CAM 4, which closed in December 2006. This suggests that TDA Empresas Hipotecario CAM 5 is experiencing a more rapid deterioration in collateral performance, with a significant portion of loans in arrears rolling into default. S&P expects this trend to continue over the near to medium term. This will increase the likelihood of a breach of the deferral of interest trigger, potentially resulting in the junior and mezzanine notes experiencing an interest shortfall, while the senior notes will be repaid faster. In TDA Empresas Hipotecario CAM 5, this trigger is based on cumulative defaults reaching 7.3% of the initial collateral balance for class C notes and 10.4% for the class B notes. The outcomes of S&P's credit and cash flow analysis showed that the class B and C notes no longer pass S&P's 'A-' and 'BBB' stresses, respectively, so S&P has lowered the ratings on these notes to the level at which they passed S&P's rating stresses —'BBB' and 'BB-', respectively. The CreditWatch negative placement of the 'AAA' rated notes in all three transactions is not driven by collateral performance issues, but continues to reflect unresolved issues relating to the substitution of Caja de Ahorros del Mediterraneo as swap counterparty. Following CAM's downgrade to 'A-2' on Dec. 10, 2008, it has been replaced as treasury account provider for these transactions by Confederacion Espanola de Cajas de Ahorros (AA-/Negative/A-1+). Ratings List Rating Lowered FTPYME TDA CAM 4, Fondo de Titulizacion de Activos EUR1.5 Billion Floating-Rate Notes Rating ------ Class To From ----- -- ---- B BBB+ A Ratings Lowered and Removed from Creditwatch Negative Empresas Hipotecario TDA CAM 3, Fondo de Titulizacion de Activos EUR750 Million Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- C BB BBB/Watch Neg FTPYME TDA CAM 4, Fondo de Titulizacion de Activos EUR1.5 Billion Floating-Rate Notes Rating ------ Class To From ----- -- ---- C BB- BBB-/Watch Neg Empresas Hipotecario TDA CAM 5, Fondo de Titulizacion de Activos EUR1,430.8 Million Floating-Rate Notes Rating ------ Class To From ----- -- ---- B BBB A-/Watch Neg C BB- BBB/Watch Neg Rating Placed On Creditwatch Negative Empresas Hipotecario TDA CAM 3, Fondo de Titulizacion de Activos EUR750 Million Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- B A/Watch Neg A Ratings Remaining On Creditwatch Negative Empresas Hipotecario TDA CAM 3, Fondo de Titulizacion de Activos EUR750 Million Mortgage-Backed Floating-Rate Notes Rating ------ To From -- ---- A2 AAA/Watch Neg FTPYME TDA CAM 4, Fondo de Titulizacion de Activos EUR1.5 Billion Floating-Rate Notes Rating ------ To From -- ---- A2 AAA/Watch Neg A3 AAA/Watch Neg Empresas Hipotecario TDA CAM 5, Fondo de Titulizacion de Activos EUR1,430.8 Million Floating-Rate Notes Rating ------ To From -- ---- A1 AAA/Watch Neg A2 AAA/Watch Neg A3 AAA/Watch Neg Ratings Affirmed FTPYME TDA CAM 4, Fondo de Titulizacion de Activos EUR1.5 Billion Floating-Rate Notes Rating ------ To From -- ---- D CCC- Empresas Hipotecario TDA CAM 5, Fondo de Titulizacion de Activos EUR1,430.8 Million Floating-Rate Notes Rating ------ To From -- ---- D CCC- =========== S W E D E N =========== TELEFONAKTIEBOLAGET LM ERICSSON: Cuts Jobs as Net Income Drops -------------------------------------------------------------- Telefonaktiebolaget LM Ericsson's ("Ericsson") net income for the fourth quarter 2008 declined 31% to SEK3.9 billion from SEK5.6 billion in the same period in 2007, impacted by restructuring charges and a dramatic drop in the contribution from Sony Ericsson Mobile Communication Ltd., its handset venture with Sony Corp. According to Bloomberg News, last week, Sony Ericsson reported a net loss of EUR187 million (US$245 million) in the quarter. The unit expects to remain unprofitable for the first half of this year, the news agency relates. Ericsson's sales for the current quarter increased 23% to SEK67.0 billion from SEK54.5 billion in 2007 fourth quarter due to currency exchange rate swings, especially towards the end of the year. After exceeding cost reduction targets launched in 2008, Ericsson said it will continue to reduce costs, across all parts of the company at the same pace as in 2008 with restructuring charges of SEK6-7 billion, targeting annual savings of SEK10 billion from the second half of 2010. "To date, our infrastructure business is hardly impacted at all, but it would be unreasonable to think that this would be the case also throughout 2009," Bloomberg News quoted Ericsson Chief Executive Officer Carl-Henric Svanberg as saying during a press meeting in Stockholm Wednesday. "We will prepare for tougher times to defend our margins." In February 2008, the company announced a cost reduction plan of SEK4 billion in annual savings, including estimated charges of the same size. All activities with related charges were launched by the third quarter, and it was announced that further charges would be made in the fourth quarter. Charges in the fourth quarter amount to SEK2.3 billion and for the full year 2008 to SEK6.7 billion. This resulted in annual savings of approximately SEK6.5 billion from year-end. Ericsson's cost saving plans will continue in 2009. Restructuring charges are estimated to be SEK6-7 billion and annual savings of SEK10 billion are expected by the second half of 2010, with an equal split between cost of sales and operating expenses. Ericsson proposed a dividend of SEK1.85 per share for 2008, representing some SEK6.0 billion, payable on April 27, 2009. The proposed dividend is down from SEK2.50 paid out the previous year, Bloomberg News notes. Also, the company will layoff some 5,000 employees, of which about 1,000 in Sweden, primarily in Stockholm. Bloomberg News says last year, Ericsson announced 4,000 job cuts. The company's global headcount was almost 79,000 at the end of 2008. Headquartered in Stockholm, Sweden, Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) a.k.a Ericsson -- http://www.ericsson.com/ -- is a provider of telecommunications equipment and related services to operators of mobile and fixed networks worldwide. Over 1,000 networks in more than 175 countries utilize its equipment. The company supplies the network equipment and services that enable telecommunication, end-to-end solutions for mobile and fixed communication. The company has four business segments: Networks, which includes communications infrastructure and related deployment services; Professional Services, which includes managed services, services for network systems integration, consulting and education and customer support services; Multimedia, which includes networked media and messaging, enterprise applications, revenue management, service delivery platforms (SDP) and mobile platforms, and Phones, which includes the 50/50 joint venture with SONY corporation, Sony Ericsson Mobile Communications, offering a range of mobile handsets and other mobile devices. ===================== S W I T Z E R L A N D ===================== COATEC HOLDING: Creditors Must File Proofs of Claim by Feb. 5 ------------------------------------------------------------- Creditors owed money by JSC Coatec Holding are requested to file their proofs of claim by Feb. 5, 2009, to: E. Bruderer Bahnhofstrasse 34 Mail Box: 8702 Zollikon Switzerland The company is currently undergoing liquidation in Zollikon. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Nov. 27, 2008. HOSTELIA JSC: Creditors Must File Proofs of Claim by Jan. 31 ------------------------------------------------------------ Creditors owed money by JSC Hostelia are requested to file their proofs of claim by Jan. 31, 2009, to: Dornacherstrasse 8 6003 Luzern Switzerland The company is currently undergoing liquidation in Luzern. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 10, 2008. LISDA LLC: Deadline to File Proofs of Claim Set January 31 ---------------------------------------------------------- Creditors owed money by LLC Lisda are requested to file their proofs of claim by Jan. 31, 2009, to: Trust Company Germann Treuhand Frutigenstrasse 21 3600 Thun Switzerland The company is currently undergoing liquidation in Thun. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Nov. 28, 2008. MENTAL GUIDE: Creditors Have Until February 5 to File Claims ------------------------------------------------------------ Creditors owed money by LLC Mental Guide are requested to file their proofs of claim by Feb. 5, 2009, to: Hanspeter Liechti Heinrichsgasse 19 4055 Basel Switzerland The company is currently undergoing liquidation in Basel. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Nov. 26, 2008. TELIT COMMUNICATION: Proof of Claim Filing Deadline is Jan. 30 -------------------------------------------------------------- Creditors owed money by JSC Telit Communication are requested to file their proofs of claim by Jan. 30, 2009, to: Bachstrasse 56 8200 Schaffhausen Switzerland The company is currently undergoing liquidation in Schaffhausen. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Nov. 28, 2008. VISENDA LLC: Creditors' Proofs of Claim Due by February 2 --------------------------------------------------------- Creditors owed money by LLC Visenda are requested to file their proofs of claim by Feb. 2, 2009, to: LLC Intelligent Business Solutions Baarerstrasse 94 6300 Zug Switzerland The company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 2, 2008. WICK & WEHRLI: February 5 Set as Deadline to File Claims -------------------------------------------------------- Creditors owed money by LLC Wick & Wehrli Oldtimerfahrzeugtechnik are requested to file their proofs of claim by Feb. 5, 2009, to: JSC TREVAG Treuhand und Verwaltung Buelach Ackerstrasse 2 8180 Buelach Switzerland The company is currently undergoing liquidation in Niederhasli. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Nov. 25, 2008. WICKLI BAUPLANUNGEN: Creditors Must File Claims by Feb. 19 ---------------------------------------------------------- Creditors owed money by LLC Wickli Bauplanungen are requested to file their proofs of claim by Feb. 19, 2009, to: Karl Wickli Haldenstrasse 23a 9642 Ebnat-Kappel Switzerland The company is currently undergoing liquidation in Ebnat-Kappel. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 11, 2008. WINDPOWER TRUST: Deadline to File Proofs of Claim Set Jan. 30 ------------------------------------------------------------- Creditors owed money by JSC Windpower Trust are requested to file their proofs of claim by Jan. 30, 2009, to: Stefan Toffol JSC Toffol & Schibli Treuhand Rue de la Banque 3 Mail Box: 360 1701 Fribourg Switzerland The company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Nov. 18, 2008. ZYKLUS GARTENBAU: Creditors Have Until Feb. 15 to File Claims ------------------------------------------------------------- Creditors owed money by LLC Zyklus Gartenbau are requested to file their proofs of claim by Feb. 15, 2009, to: Werner Blattler Grosswis 1770 9534 Gahwil Switzerland The company is currently undergoing liquidation in Wil SG. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 1, 2008. ============= U K R A I N E ============= AVISTA LLC: Creditors Must File Claims by January 25 ---------------------------------------------------- Creditors of LLC Avista (EDRPOU 31517935) have until Jan. 25, 2009, to submit proofs of claim to: Trading House External Trading Service Kikvidze Str. 18 01103 Kiev Ukraine The Arbitration Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 4, 2008. The case is docketed as 24/500-b. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Avista Apt. 701 Industrialnaya Str. 27 03056 Kiev Ukraine DATA GROUP-NIKOLAYEV: Creditors Must File Claims by January 25 -------------------------------------------------------------- Creditors of LLC Data Group-Nikolayev (EDRPOU 34565913) have until Jan. 25, 2009, to submit proofs of claim to: Mrs. Alla Bezabchuk Liquidator / Insolvency Manager P.O.B. 14 54056 Nikolaev Ukraine The Arbitration Court of Nikolaev commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 16, 2008. The case is docketed as 5/589/08. The Economic Court of Nikolaev Admiralskaya Str. 22a 65009 Nikolaev Ukraine The Debtor can be reached at: LLC Data Group-Nikolayev Varnenskaya Str. 14 Nikolaev Ukraine GEOTEKS LLC: Creditors Must File Claims by January 25 ----------------------------------------------------- Creditors of LLC Geoteks (EDRPOU 35222105) have until Jan. 25, 2009, to submit proofs of claim to: LLC Studio Art-Keramik Liquidator Apt. 82 Artem Str. 103 04050 Kiev Ukraine The Arbitration Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 16, 2008. The case is docketed as 23/298-b. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Geoteks Mayakovsky avenue, 91-B 02232 Kiev Ukraine METAL INDUSTRY: Creditors Must File Claims by January 25 -------------------------------------------------------- Creditors of LLC Metal Industry (EDRPOU 32723917) have until Jan. 25, 2009, to submit proofs of claim to: Mrs. Julie Tatarinova Temporary Insolvency Manager Rabkorovskaya Str. 47 49082 Dnipropetrovsk Ukraine Tel: 8(056)740-32-54 The Arbitration Court of Dnipropetrovsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed as B 15/341-08. The Economic Court of Dnipropetrovsk Kujbishev Str. 1a 49600 Dnipropetrovsk Ukraine The Debtor can be reached at: LLC Metal Industry Shevchenko lane, 3 49000 Dnipropetrovsk Ukraine NIKOPOL PLANT: Creditors Must File Claims by January 25 ------------------------------------------------------- Creditors of CJSC Nikopol Plant of Steel Pipes Utist (EDRPOU 30926951) have until Jan. 25, 2009, to submit proofs of claim to: Mrs. Julie Tatarinova Temporary Insolvency Manager Rabkorovskaya Str. 47 49082 Dnipropetrovsk Ukraine Tel: 8(056)740-32-54 The Arbitration Court of Dnipropetrovsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed as B 15/337-08. The Economic Court of Dnipropetrovsk Kujbishev Str. 1a 49600 Dnipropetrovsk Ukraine The Debtor can be reached at: CJSC Nikopol Plant of Steel Pipes Utist Trubnikov avenue, 56 Nikopol 53201 Dnipropetrovsk Ukraine PMB-1 LLC: Creditors Must File Claims by January 25 --------------------------------------------------- Creditors of LLC PMB-1 (EDRPOU 35301773) have until Jan. 25, 2009, to submit proofs of claim to: Mrs. Alla Bezabchuk Liquidator / Insolvency Manager P.O.B. 14 54056 Nikolaev Ukraine The Arbitration Court of Nikolaev commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 16, 2008. The case is docketed as 5/591/08. The Economic Court of Nikolaev Admiralskaya Str. 22a 65009 Nikolaev Ukraine The Debtor can be reached at: LLC PMB-1 Naberezhnaya Str. 42 Galitsynovoye Zhovtneve Nikolaev Ukraine PODOLEVSKAYA LLC: Creditors Must File Claims by January 28 ---------------------------------------------------------- Creditors of declared LLC Agricultural Firm Podolevskaya (EDRPOU 32414467) have until Jan. 28, 2009, to submit proofs of claim to: Mr. Dmitry Tsimberov Temporary Insolvency Manager Apt. 52 Bakulin Str. 9/13 Kharkov Ukraine The Arbitration Court of Kharkov commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed as B-39/194-08. The Economic Court of Kharkov Derzhprom 8th Entrance Svoboda Square 5 61022 Kharkov Ukraine The Debtor can be reached at: LLC Agricultural Firm Podolevskaya Skripnik Str. 6 Skripnik Str. 6 Barvinkovo 64701 Kharkov Ukraine RA-TEL LLC: Creditors Must File Claims by January 25 ---------------------------------------------------- Creditors of LLC Ra-Tel (EDRPOU 25620175) have until Jan. 25, 2009, to submit proofs of claim to: Mr. Dmitry Poddubko Temporary Insolvency Manager Apt. 45 Mir square, 42 Chernigov Ukraine The Arbitration Court of Chernigov commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 15, 2008. The case is docketed as 4/176b. The Economic Court of Chernigov Mir Avenue 20 14000 Chernigov Ukraine The Debtor can be reached at: LLC Ra-Tel Odintsov Str. 17-A 14030 Chernigov Ukraine SANTA M LLC: Creditors Must File Claims by January 25 ----------------------------------------------------- Creditors of LLC Santa M (EDRPOU 35938888) have until Jan. 25, 2009, to submit proofs of claim to: Mrs. Alla Bezabchuk Liquidator / Insolvency Manager P.O.B. 14 54056 Nikolaev Ukraine The Arbitration Court of Nikolaev commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 16, 2008. The case is docketed as 5/590/08. The Economic Court of Nikolaev Admiralskaya Str. 22a 65009 Nikolaev Ukraine The Debtor can be reached at: LLC Santa M Lenin avenue, 183/6 Nikolaev Ukraine TARTAS LLC: Creditors Must File Claims by January 25 ---------------------------------------------------- Creditors of LLC Tartas (EDRPOU 35467003) have until Jan. 25, 2009, to submit proofs of claim to: LLC Grevin Trade Liquidator Bratislavskaya Str. 8 02156 Kiev Ukraine The Arbitration Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 15, 2008. The case is docketed as 23/295-b. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Tartas Office 1 Vladimirskaya Str. 7 01025 Kiev Ukraine UKRPROMBANK: Placed in Receivership ----------------------------------- Reuters reports that Ukraine's central bank placed Ukrprombank, the country's 15th largest bank by assets, in receivership Wednesday, January 21. The receivership, the report says, protects the bank from its creditors for six months. Ukrprombank is headquartered in Kiev, Ukraine. VO METAL: Creditors Must File Claims by January 25 -------------------------------------------------- Creditors of LLC VO Metal Resource (EDRPOU 31161290) have until Jan. 25, 2009, to submit proofs of claim to: Mr. Sergey Bagmet Temporary Insolvency Manager Apt. 77 Yuzhno-Koltsevaya Str. 25 Zaporozhje Ukraine The Arbitration Court of Zaporozhje commenced bankruptcy proceedings against the company after finding it insolvent on Nov. 10, 2008. The case is docketed as 19/301/08. The Economic Court of Zaporozhje Shaumiana Str. 4 69001 Zaporozhje Ukraine The Debtor can be reached at: LLC VO Metal Resource Yuzhnoye highway Str. 69-B Zaporozhje Ukraine * UKRAINE: Cabinet, NBU Mulls Bank Refinancing Plan --------------------------------------------------- The Cabinet of Ministers and the National Bank of Ukraine are intending to draw up and agree an order of refinancing to commercial banks, Ukrainian News reports citing Borys Sobolev, the deputy secretary of the National Security and Defense Council. The report relates that in a meeting on Wednesday, January 21, the Cabinet of Ministers passed a decision to authorize the Economy Ministry and the Council of investors with the Cabinet of Ministers to finalize the draft resolution concerning the order of refinancing. The Cabinet of Ministers and the National Bank of Ukraine plans to issue a joint resolution on the matter within a week, the report notes. =========================== U N I T E D K I N G D O M =========================== BISHOPSGATE ASSET: Moody's Withdraws 'Ba2' Rating on Notes ---------------------------------------------------------- Moody's Investors Service announced it has withdrawn its rating of one class of notes issued by Bishopsgate Asset Finance Limited. Moody's has withdrawn this rating for business reasons. The rating action is: Bishopsgate Asset Finance Limited: (1) Series 1 GBP203,680,000 Guaranteed Asset Backed Fixed Rate Notes due August 2044 -- Current Rating: WR -- Prior Rating: Ba2 -- Prior Rating Date: 20 June 2008, downgraded to Ba2 from Baa3 under review for possible downgrade CO-OPERATIVE BANK: Fitch Affirms Support Rating Floor at 'BB+' -------------------------------------------------------------- Fitch Ratings has placed The Co-operative Bank's Long-term Issuer Default Rating of 'A', Individual Rating of 'B/C' and Short-term IDR of 'F1' on Rating Watch Negative. Fitch has simultaneously affirmed CB's Support Rating of '3' and Support Rating floor of 'BB+'. The rating action has no impact on CB's covered bond rating of 'AAA'. At the same time, Fitch has also placed Britannia Building Society's (Britannia) senior debt rating of 'A' on RWN and affirmed Britannia's other ratings. The rating action is based on the institutions' announcement on 21 January 2009 of their intention to merge their businesses following this week's change in legislation, which now permits such a combination. As a result of the transaction, Britannia will form a large part of the combined institution which will be owned by Co-operative Financial Services. CFS itself is part of the Co-operative Group. Britannia's members will become members of CG. The RWN on CB's Long- and Short-term IDRs and Individual Rating reflects the agency's view that CB's credit and funding risk profile will weaken as a result of the merger. In particular, CB's historically strong deposit/loan ratio will be somewhat diluted by the addition of Britannia's larger wholesale funding component. Fitch considers that certain portions of Britannia's specialist residential mortgage lending may be more susceptible to the weaker operating environment than CB's current residential mortgage portfolio. Fitch also notes CB's smaller size relative to Britannia. However, Fitch understands that CB's liquidity and funding position has historically been strong and should support the new entity's funding and liquidity position. Fitch will analyse the combined bank's liquidity and credit risks in greater detail in the coming months before the transaction is completed which could lead to CB's Short-term IDR being affirmed or downgraded to 'F2'. The affirmation of Britannia's issuer ratings and Outlook reflects the fact that Britannia will contribute the bulk of loans to the new bank. Its funding position should improve as the combined entity will benefit from a larger customer deposit base and a smaller wholesale funding ratio (as calculated by Fitch). The conversion of Britannia from a building society into a commercial bank will result in share accounts no longer ranking behind non- member deposits and other unsubordinated liabilities in the event of liquidation. As a result, the conversion will result in an equalisation of senior debt ratings with Britannia's Long-term IDR, hence the RWN assigned to its senior debt rating. "The merger between The Co-operative Bank and Britannia Building Society creates a larger mutual financial institution which has greater UK market shares in residential mortgages and saving deposits," said Andrea Jaehne, Director of Fitch's financial institutions group. "It will also offer a wider range of products to a larger and more diversified customer base, while strengthening The Co-operative Bank's solid niche franchise." Both businesses will maintain their brand names over the integration period. The combined bank will have a nationwide presence with more than 300 branches serving some eight million customers. The new bank aims to create annual synergies of at least GBP60m by the third year, mainly through cost savings. The loan book of the new bank will be split into corporate lending, including commercial property, and retail lending. Residential mortgages account for the majority of retail loans. Based on November 2008 figures, nearly two-thirds of residential mortgages consist of prime owner-occupied mortgages, with the remainder being split almost equally among buy-to-let, self-certification and adverse mortgages. Fitch views all of the specialist mortgage products as riskier than prime owner occupied mortgages, especially in light of falling house prices, increasing unemployment and a deteriorating economic environment. The new bank's loan book will be mainly funded through customer deposits. The new bank should retain the good liquidity position of both institutions. Capitalization is expected to be adequate in light of the new bank's risks and currently expected moderate profitability in the initial years following the merger. Fitch notes that, as a result of new legislation, for regulatory purposes Britannia's permanent interest bearing shares will no longer be treated as a Tier 1 instrument, but as Tier 2 capital. These capital securities will continue entirely to account as capital in Fitch's analysis of the equity of the new institution. The Co-operative Bank plc: -- Long-term IDR of 'A' placed on RWN -- Short-term IDR of 'F1' placed on RWN -- Individual Rating of 'B/C' placed on RWN -- Support Rating affirmed at '3' -- Support Rating Floor affirmed at 'BB+' -- Britannia Building Society: -- Long-term IDR affirmed at 'A-' (A minus); Outlook Negative -- Short-term IDR affirmed at 'F2' -- Individual Rating affirmed at 'C' -- Support Rating affirmed at '3' -- Support Rating Floor affirmed at 'BB+' -- Senior unsecured debt rating of 'A' placed on Rating Watch Negative -- Subordinated notes and permanent interest bearing shares affirmed at 'BBB+' CTF MIDLANDS: Names Joint Administrators from Smith & Williamson ---------------------------------------------------------------- Anthony Cliff Spicer and Henry Anthony Shinners of Smith & Williamson Ltd. were appointed joint administrators of CTF Midlands Ltd. on Jan. 12, 2009. The company can be reached at: CTF Midlands Ltd. Star House Star Mill Rochester Kent ME1 1UX England ESP TECHNOLOGIES: Appoints Liquidators from Smith & Williamson -------------------------------------------------------------- John Tancock and Adrian Paul Dante of Smith & Williamson Ltd. were appointed joint liquidators of ESP Technologies Group Ltd. on Jan. 9, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through Smith & Williamson Ltd. at: First Floor 89 King Street Maidstone Kent ME14 1BG England FISHWORKS: Goes Into Administration; 90 Jobs Affected ----------------------------------------------------- Mike Jervis and Colin Haig of PricewaterhouseCoopers LLP were appointed as joint administrators of Fishworks on January 20, 2009. Subsequently, four Fishworks sites (Bath; Richmond; Swallow Street, London; Marylebone Street, London), were sold to Boparan Ventures Limited. Fishworks is a specialist fish restaurant chain and has 10 restaurants and fishmongers operating in the UK. Like many restaurant chains Fishworks has been affected by the current economic climate, making trading conditions difficult. Boparan Ventures Limited, a private company based in Sutton Coldfield, purchased 4 sites operated by Fishworks, securing the continued employment of approximately 95 members of staff across the UK. Mike Jervis, joint administrator and partner at PricewaterhouseCoopers LLP said: "Through an extensive accelerated merger and acquisition process, we reached out to around 50 potential buyers and received 5 competitive bids. We are delighted to be able to announce this sale, resulting in the preservation of over 90 jobs and a continuation of the brand, particularly at this challenging time in the sector." The six sites excluded from the sale (Bristol, Christchurch, Chelsea, Islington, Primrose Hill, Chiswick) will unfortunately be closed with immediate effect. There are 90 job losses in total. FOUR SEASONS: Has Six Months to Restructure Defaulted Loans ----------------------------------------------------------- Four Seasons Health Care Ltd's lenders gave the company six more months to restructure GBP1.2 billion (US$1.7 billion) of defaulted senior loans, Bloomberg News reports. In a statement, Four Seasons said it is continuing negotiations with its lenders towards agreeing a consensual restructuring of the company's debt. To facilitate the finalization of these negotiations, the company said it entered into a new standstill agreement with its senior lenders until July 22, 2009, on the same terms as the existing standstill agreement. The company said it has tabled an alternative restructuring proposal for the loans. Details of the proposal were not provided. According to the company, preliminary results for the year ended December 31, 2008, show that its EBITDA for the year will have increased to over GBP100 million. Four Seasons Health Care Ltd. -- http://www.fshc.co.uk/-- with more than 15,000 people in its care, the company is one of the largest care home (nursing home) operators in the U.K. The company runs some 300 nursing homes, and its Huntercombe division operates about eight specialized health care centers (which provide mental health and rehabilitation services) in England, Scotland, North Ireland, and the Isle of Man. Allianz Capital Partners, the private equity arm of Allianz Group, acquired the company from Alchemy Partners for GBP775 million in 2004. GEORGE CARTER: Enters Administration; KPMG Appointed ---------------------------------------------------- Administrators from KPMG were appointed to West Midlands-based George Carter (Pressings) on January 19, 2009. The company, which employs 110 people at its site in Willenhall, manufactures pressings and carries out powder coating, primarily for the commercial vehicle market. Andy McGill, joint administrator from KPMG Restructuring in Birmingham said: "The trading position of George Carter (Pressings) came under pressure following a reduction in demand from the commercial vehicle sector – the business' primary customer. "It is with regret that we have had to make a number of redundancies in order to stem the losses but we have had a number of expressions of interest from potential purchasers and we are hopeful that a buyer will be found for the business." According to the administrators, a quick sale will be necessary in order to preserve a future for the business. The firm employed 110 people – 31 redundancies have been made. GRAND PRIX RACEWEAR: Taps Joint Administrators from PKF ------------------------------------------------------- Ian J. Gould and Brian J. Hamblin of PKF (UK) LLP were appointed joint administrators of Grand Prix Racewear Ltd. on Jan. 13, 2009. The company can be reached through PKF (UK) LLP at: New Guild House 45 Great Charles Street Queensway Birmingham B3 2LX England HAMMONDS SUPPORT: Goes Into Administration; Deloitte Appointed -------------------------------------------------------------- Michael Fahy at Crain's Manchester Business reports that Hammonds Support Services Ltd has gone into administration. The report relates Adrian Berry and Dan Butters from the Leeds office of accountancy firm Deloitte were appointed joint administrators of HSSL. Citing the administrators, the report discloses 230 of the company's 243 employees lost their jobs. The report states that according to Mr. Berry, HSSL "has been hit hard by both the collapse of the residential property market and the significant reduction of re-mortgage work they undertake as fewer borrowers are re-mortgaging at the end of fixed period mortgage deals." Mr. Berry, the report notes, attributed the significant reduction of re-mortgage work to the reduction in the Bank of England base rate and lenders' Standard Variable Rate of interest. "The two together have caused a significant reduction in the volume of work undertaken and resulted in HSSL incurring losses which it has been unable to withstand," Mr. Berry was quoted by the report as saying. HSSL is the parent firm of volume conveyancing business Hammonds Direct. Hammonds Direct however is not subject to insolvency proceedings and neither business is linked with Hammonds LLP, the report says. Hammonds Direct, the report recounts, restructured its business in 2001 and transferred to HSSL the processing aspects of its activities which were not required to be carried out by solicitors. The report meanwhile adds the administrators were currently in talks to sell all or part of HSSL as a going concern. KAUPTHING SINGER: Action Group Seeks GBP550Mln Loan from IoM Gov't ------------------------------------------------------------------ Simon at The Herald reports that the KSFIOM depositors action group has called on the Isle of Man government to loan Kaupthing Singer & Friedlander Isle of Man GBP550 million to help repay depositors. According to The Herald, expatriate savers and UK savers stand to lose GBP821 million in the bank's liquidation. The court liquidation hearing has twice been postponed to enable high-level discussions aimed at resolving the issue to continue, The Herald recalls. The Herald recounts it was reported last month the mainly expatriate British customers could expect to get back at most GBP350 million, to be subscribed by the island's government and its banks towards funding a previously unfunded depositor protection scheme. "There is a hole of GBP550 million to fill - massive, unthinkable in the old world of just a few months ago, but today when compared to the current UK government's second tranche payment it looks more like pocket money," Stephen Thomas, a spokesman for the action group, was quoted by The Herald as saying. "This outlay would be the equivalent of GBP6870 per islander, compared with the estimated GBP33,000 per taxpayer that Gordon Brown's latest scheme is costing UK taxpayers. While the UK is committing more than two-thirds of its annual GDP to preserve employment in this sector, such a move would cost the IoM just half of its GDP." Mr. Thomas noted half of this might reasonably be expected to be repaid by the Icelandic bank, The Herald adds. About Kaupthing Singer & Friedlander (Isle of Man) Ltd. Kaupthing Singer & Friedlander (Isle of Man) Ltd. -- http://www.kaupthingsingers.co.im/-- is the UK subsidiary of Iceland-based Kaupthing Bank hf. On Oct. 9, 2008, the Isle of Man Court made a provisional liquidation order in relation to Kaupthing Singer & Friedlander (Isle of Man). Subsequently, Michael Simpson of PricewaterhouseCoopers was appointed as provisional liquidator of the bank. On Oct. 8, 2008, The Isle of Man Financial Supervision Commission suspended the banking license of Kaupthing Singer & Friedlander (Isle of Man). KAUPTHING SINGER: Tynwald Approves Early Payment Scheme ------------------------------------------------------- Tynwald on Tuesday, January 20, 2009, approved the Kaupthing Singer and Friedlander (Isle of Man) Limited Early Payment Scheme. This was developed by the Isle of Man Treasury following Tynwald approval in principle for such a scheme in December 2008. On December 17, 2008, Tynwald approved the development of an Early Payment Scheme for depositors with KSF IOM together with the release of GBP11 million from the Reserve Fund to meet depositor claims. The scheme, funded from Isle of Man Government reserves, will make GBP1,000 per account holder available as an initial measure pending the finalization of a more comprehensive solution. According to iomtoday.co.im, Peter Karran (LibVan, Onchan) was the only Tynwald member to vote against the scheme. The market value of government reserves as at December 31, 2008, was GBP317.7 million, iomtoday.co.im discloses. However, iomtoday.co.im notes, Treasury Minister Allan Bell admitted the payment had limited support, but said it would make a difference to the 30 per cent of depositors who had deposits up to GBP4,000 in the collapsed bank. About Kaupthing Singer & Friedlander (Isle of Man) Ltd. Kaupthing Singer & Friedlander (Isle of Man) Ltd. -- http://www.kaupthingsingers.co.im/-- is the UK subsidiary of Iceland-based Kaupthing Bank hf. On Oct. 9, 2008, the Isle of Man Court made a provisional liquidation order in relation to Kaupthing Singer & Friedlander (Isle of Man). Subsequently, Michael Simpson of PricewaterhouseCoopers was appointed as provisional liquidator of the bank. On Oct. 8, 2008, The Isle of Man Financial Supervision Commission suspended the banking license of Kaupthing Singer & Friedlander (Isle of Man). JOHN NICHOLLS: Goes Into Administration --------------------------------------- Sophie Griffiths at building.co.uk reports that John Nicholls Builders has gone into administration after 47 years of trading. The company, the report relates, has appointed international accountancy firm Mazars as its administrator. Tim Ball, joint administrator and Mazars partner, blamed the economic downturn and a significant reduction in orders for the company's collapse, the report discloses. "The business was unable to continue trading, resulting in the redundancies of the majority of staff," Mr. Ball was quoted by the report as saying. Mr. Ball, as cited by the report, said "We are speaking with various parties regarding options for the business, and are progressing discussions with interested parties regarding the sale of current contracts." Based in Truro, Cornwall, John Nicholls Builders is a chartered building company. LANDSBANKI GUERNSEY: Action Group Backs Creating Creditors Panel ---------------------------------------------------------------- The Landsbanki Guernsey Depositors' Action Group is backing a proposal to set up an informal creditors committee, channelonlive.tv reports. According to the report, Landsbanki Guernsey's administrator, Deloitte, wants to establish a creditors committee to meet with them on behalf of the other depositors. The action group, as cited by the report, said they're in favor of that part of their proposals. About Landsbanki Guernsey Ltd. Landsbanki Guernsey Ltd. -- http://www.landsbanki.co.gg/-- is engaged in retail banking. It is a subsidiary of Iceland-based financial institution Landsbanki Islands hf. Landsbanki Guernsey was placed into administration on Oct. 7, 2008. The administration follows the deepening problems of the Icelandic economy and, in particular, of the Icelandic banking system. Rick Garrard and Lee Manning of Deloitte & Touche LLP were appointed as joint administrators of the bank on Oct. 7 and Oct. 10 respectively. The affairs, business and property of the Bank are being managed by the joint administrators. LUXFER HOLDINGS: Moody's Cuts Probability of Default Rating to B3 ----------------------------------------------------------------- Moody's Investors Service downgraded the probability of default rating of Luxfer Holdings to B3 from B2 and placed all ratings on review for downgrade. The downgrade of the PDR is due to the delay in refinancing Luxfer's GBP45 million asset-based bank facility, which matures on April 26, 2009. Moody's had expected the facility to have been refinanced in December 2008. Luxfer now expects the refinancing to happen in the first half of February. However, ongoing turmoil in global financial markets and the strained position of many banks mean that there continues to be greater uncertainty over the process than would otherwise be the case under normal market conditions. The decision to only downgrade the PDR while leaving the Corporate Family Rating of B2 unchanged reflects the view that while default risk has increased, in the event of a default, recovery for creditors would be above the prior 50% family recovery rate assumption. This reflects Moody's assumptions on the underlying value of the business -- which continues to perform well -- together with the relatively low leverage (the company reported LTM net Debt/Ebitda of 3.1x at September 30, 2008). At that date the bank facility was drawn by GBP22.9 million, up from GBP20.6 million on 30 June 2008. Failure to refinance would likely lead to a default unless alternate liquidity became available. Luxfer reported only GBP2 million cash at September 30, 2008, and it does not have significant assets that could be liquidated quickly. Nor is an equity injection from existing shareholders to avoid default likely at this time. Operationally, Luxfer has maintained its good performance in difficult markets, as evidenced by its financial results which saw revenue for the first nine months of 2008 of GBP 194 million (up 22% from 9M 2007) and stable margins. This steady performance -- together with the asset-based secured nature of any new facility, which is attractive to lenders - should help facilitate the refinancing process. However, the same features in the existing facility may allow current ABL lenders to terminate and suffer relatively low loss, even if the termination were to cause Luxfer to default. Despite leverage not being particularly high, Luxfer has limited financial flexibility due to its relatively small size and the need to maintain investment and associated capital expenditure. The company benefits from exposure to a broad range of industrial customers, but given the global economic outlook the prospects for material near-term debt reduction appear low. Moody's also notes Luxfer's announcement in November 2008 of a strategic review to explore options to realize value for shareholders, 87% of whom are creditors who received equity as part of a capital reorganization in 2007 (the balance 13% being held by management). Although the company's options may be limited for some time by the adverse global financial environment, the announcement does increase uncertainty as to the future capital structure of the group. The ratings have been placed on review for downgrade to reflect the continued uncertainty regarding the refinancing process. If Luxfer fails to refinance in the expected timescale, Moody's is likely to take downward rating action to reflect the greater probability of default as the maturity date of the existing facility approaches. Moody's may also take downward rating action depending on the final terms of the facility, if refinancing is successful; or depending on the outcome of the strategic review. The last rating announcement for Luxfer was on October 16, 2008, when the company's rating outlook was changed to negative. Headquartered in Manchester, England, Luxfer specializes in the design and manufacture of high-pressure gas cylinders, and aluminium, zirconium, and magnesium based engineering products for use in the aerospace, automotive, medical and general engineering industries. Revenue for the year ending December 2007 was GBP 213 million. MACKINTOSH & PARTNERS: Names Joint Liquidators from Tenon --------------------------------------------------------- A. J. Pear and I. Cadlock of Tenon Recovery were appointed joint liquidators of Mackintosh & Partners Ltd. on Jan. 7, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through Tenon Recovery at: Third Floor Lyndean House 43/46 Queens Road Brighton East Sussex BN1 3XB England MAPELEY: May Become Insolvent ----------------------------- Devono reports that commercial property group Mapeley is at risk of becoming insolvent. According to the report, the company said it does not have sufficient money to stay afloat and needs to raise GBP48 million. Citing the Sunday Times, the report relates Mapeley told investors "If the transaction does not proceed ... Mapeley Group may become insolvent or unable to continue trading." Mapeley, the report discloses, owns and manages 2.3 million sq metres of commercial property and has a contract with the Inland Revenue. MIDAS CAPITAL: Expects to Get Temporary Debt Waiver from Bankers --------------------------------------------------------------- Midas Capital plc said that at the year end its net debt stood at GBP29.8 million and the business is trading in line with expectations and remains cash generative. Midas noted it has met all of its interest and principal payments on time, but in view of the well reported market conditions is working closely with its bankers and expects to reach agreement shortly on a temporary waiver of its covenants until April 30, 2009 with a view to restructuring its borrowing arrangements. Midas said negotiations are proceeding satisfactorily and the bank has confirmed that Midas continues to enjoy its full support. The company is also considering possible strategic options to strengthen its balance sheet and is in discussions with a number of interested parties. Reuters relates that at 1440 GMT on Wednesday, January 21, 2009, shares in the group fell 60 percent at 14.7 pence. Midas Capital plc -- http://www.iimia.co.uk/-- is the ultimate parent company. MDS plc has three divisions involved in Fund Management, Wealth Management and Corporate Finance and Broking. MDS plc is headquartered in Exeter, with offices in Liverpool, Bournemouth, Falmouth, Guernsey, Plymouth, Northampton, Reading and Capetown. Intelli Corporate Finance Ltd has offices in London and Edinburgh. REAL HOTEL: Goes Into Administration; BDO Stoy Hayward Appointed ----------------------------------------------------------------- Shay Bannon and Tony Nygate of BDO Stoy Hayward LLP were appointed joint administrators of The Real Hotel Company Limited on Wednesday, January 21, 2009. Companies also placed in administration are: RHC Properties (No 1) Limited, RHC Properties (No 3) Plc, Connaught Restaurants Limited, New Cobden Hotel Limited, Parapix Limited, Oltrix Limited, Southcrest Hotels Limited, Ashbrake Limited, Floatels (UK) Limited, Fortply Limited, Friendly Hotels (Coryton) Limited, Glentod Limited, Opaljewel Limited, RHC Properties (No 2) Limited, Holdeed Limited, New Friendly Hotels Limited, Rosenest Limited and Friendly Sleep Inn 2 Limited. The Scotsman relates the appointment of BDO Stoy Hayward follows last week's suspension of shares in the parent company amid uncertainty over its financial position. The Real Hotel Company Limited -- http://www.realhotelcompany.com/ -- currently operates over 50 owned, leased or managed hotels in the UK, France, Germany and Belgium as well as the New Connaught Rooms. The Real Hotel Group Plc (RHG) is the ultimate holding company for the Group which operates The Real Hotel Company and purplehotels. The shares trade on AIM. The Real Hotel Group Plc's country of incorporation and main country of operation is The United Kingdom of Great Britain and Northern Ireland. SABRE PRINT: Taps Joint Liquidators from PKF -------------------------------------------- Edward T. Kerr and Ian J. Gould of PKF (UK) LLP were appointed joint liquidators of Sabre Print Ltd. on Jan. 12, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through PKF (UK) LLP at: Pannell House 159 Charles Street Leicester LE1 1LD England VAN AAKEN: Appoints Joint Liquidators from Tenon Recovery --------------------------------------------------------- T. J. Binyon and S. J. Parker of Tenon Recovery were appointed joint liquidators of Aaken Developments Ltd. on Jan. 10, 2009, 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 * BOOK REVIEW: Crafting Solutions for Troubled Businesses --------------------------------------------------------- Full Title: Crafting Solutions for Troubled Businesses: A Disciplined Approach to Diagnosing and Confronting Management Challenges Author: Stephen J. Hopkins and S. Douglas Hopkins Publisher: Beard Books Hardcover: 316 pages List Price: US$74.95 Order your personal copy at http://www.amazon.com/exec/obidos/ASIN/1587982870/internetbankrupt So the first thing to do when dealing with a troubled business is to find the guilty and lop someone's head off! Don't be so quick to react, advise co-authors Stephen J. Hopkins and S. Douglas Hopkins in their thoughtful, well-researched book, Crafting Solutions for Troubled Businesses. The father-son team of Steve and Doug Hopkins are principals of Kestrel Consulting LLC, a firm they founded in March 2004. Each has more than 25 years of experience working with troubled businesses and providing turnaround advisory and interim management services. Steve got his first taste of a troubled business when, as chief financial officer of an 80-year-old chemical company, Bill Nightingale of Nightingale & Associates assisted him in taking the company through a Chapter 11 filing. The company subsequently emerged from bankruptcy with payment in full to all creditors. Steve then joined Nightingale, staying for 23 years and serving initially as a principal and eventually as president from 1994 to 2000. Doug began working at Nightingale in 1978 as a part- time resource for special projects. After working in this capacity for 10 years, Steve joined Nightingale full time in the 1980s and became a principal in 1994. Both Steve and Doug have served in various C-level roles in troubled companies, including CEO, CFO, COO, and CRO. To write this book, the Hopkinses drew upon their vast experience in dealing with troubled companies. They took 100 of the largest projects they have been involved in and applied a "disciplined analysis" to diagnose problem situations and produce successful outcomes. The projects -- helpfully set apart by shaded boxes -- demonstrate the authors' theories and methods in dealing with troubled businesses. The authors also analyze some well-known cases like Enron, WorldCom, and Sunbeam to help the reader connect the dots in a very real sense and use the book for actionable advice. The book is divided into five parts: 1) Conceptual Approach and Key Issues, 2) Managing the Crisis, 3) The Diagnosis Process, 4) Alternatives and Action Plans, and 5) Lessons Learned in 100 Completed Assignments. Each part has multiple chapters expanding on these themes, and each chapter concludes with a recap of what was discussed. For speed readers and the time crunched, these recaps are an excellent way of extracting from the book the essence of what the authors are advocating. So what about lopping off that head? The authors contend that management's role is much less pivotal than is commonly believed. The real issue when working with a troubled business is determining the viability of the business. To do that, the underlying causes must be identified at different stages of the corporate lifecycle. The authors categorize troubled businesses as Undisciplined Racehorses, Overburdened Workhorses, and Aging Mules. Only through a step-by-step diagnosis can the core problems be dealt with. Pursuing a turnaround may not always be a viable and, in fact, in only one-third of the 100 cases the authors worked on did the company achieve a true operational turnaround. Crafting Solutions to Troubled Businesses should be on the must- read list of anyone involved in dealing with, consulting for, or operating a troubled business. ********* 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. Valerie C. Udtuhan, Marites O. Claro, Rousel Elaine C. Tumanda, Pius Xerxes V. Tovilla, Joy A. Agravante, Marie Therese V. Profetana and Peter A. Chapman, Editors. Copyright 2009. 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 * * *