/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/090128.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 Wednesday, January 28, 2009, Vol. 10, No. 19 Headlines A U S T R I A AKTIV-HAUSBAU LTD: Claims Registration Period Ends February 2 AVD-AUTOMOBILE LLC: Claims Registration Period Ends Feb. 19 BI JSC: Claims Registration Period Ends January 27 LUDWIG RIEDLER: Claims Registration Period Ends February 25 SCHOEGGL LLC: Claims Registration Period Ends February 11 URI SPIELBETRIEB: Claims Registration Period Ends February 12 VER 2 REAL: Claims Registration Period Ends February 10 WAFA IBRAHIM: Claims Registration Period Ends February 12 B E L G I U M KBC BANK: Impairments on Portfolio Cues Moody's Rating Downgrades D E N M A R K ATLAS SHIPPING: Files for Chapter 15 Protection G E R M A N Y BOXENSTOPP MOTORRADTECHNIK: Claims Registration Ends March 23 DOLPHIN TELECOM: Claims Registration Period Ends February 19 FCC GMBH: Claims Registration Period Ends March 10 PRONOVA BAUUNTERNEHMEN: Claims Registration Period Ends March 5 VISTEON CORP: Hires Advisers for Possible Bankruptcy ZL MOBIL TECHNIK: Claims Registration Period Ends February 11 * GERMANY: EU Commission Approves EUR6.7 Billion Guarantee for SDB I R E L A N D AMERICAN INT'L: Seeks Bids for Fund Management Business I T A L Y SESTANTE FINANCE: Moody's Concludes Reviews for Likely Rating Cuts K A Z A K H S T A N ALLIANCE AS: Proof of Claim Deadline Slated for March 6 BATYS INVEST B: Creditors Must File Claims by March 6 INSERVICE STROY: Claims Filing Period Ends March 6 MEGA PRODUCTS: Creditors' Proof of Claims Due on March 6 MORGAN STENLI: Claims Registration Ends March 6 NEKSUS LLP: Proof of Claim Deadline Slated for March 6 PODSHIPNIK LLP: Creditors Must File Claims by March 6 SAS KAZ TRADING: Claims Filing Period Ends March 6 K Y R G Y Z S T A N TRUB SERVICE: Creditors Must File Claims by Feb. 24 L I T H U A N I A FLYLAL: Lithuanian Ministry Seeks Probe Into Bankruptcy N E T H E R L A N D S ERICK VAN EGERAAT: Goes Into Receivership; 150 Jobs at Risk LYONDELLBASELL INDUSTRIES: Chapter 11 Prompts S&P's 'D' Rating R U S S I A EKO-STROY CJSC: Creditors Must File Claims by February 16 KAPITAL-STROY LLC: Creditors Must File Claims by March 16 KARBO-KHIM OJSC: Nizhegorodskaya Bankruptcy Hearing Set April 14 KARELSKIY SURIMI: Creditors Must File Claims by March 16 NOVYY DOM CJSC: Creditors Must File Claims by February 16 PENOIZOL LLC: Creditors Must File Claims by February 16 RYAZANSKIY MACHINE: Creditors Must File Claims by March 16 SITRONICS JSC: Fitch Assigns 'B-' Senior Unsecured Rating URAL-STROY-MEKHANIZATSIA: Creditors Must File Claims by Feb. 16 UYSKIY MEAT: Creditors Must File Claims by March 16 S W I T Z E R L A N D CALANIT LLC: Creditors Must File Proofs of Claim by February 5 EASTERN GATE: Deadline to File Proofs of Claim Set February 4 FUHRUNG AND ABSATZ: Creditors Have Until Feb. 5 to File Claims PISTAG VERWALTUNG: Proof of Claim Filing Deadline Set Jan. 31 RENTRAP JSC: Creditors' Proofs of Claim Due by January 31 SIDUS CAPITAL: February 5 Set as Deadline to File Claims SIMPLE SOLUTIONS: Creditors Must File Proofs of Claim by Feb. 5 U K R A I N E ATLANT-SERVICE-GROUP: Creditors Must File Claims by February 7 AUTO FOB: Creditors Must File Claims by February 7 BPK LLC: Creditors Must File Claims by February 7 KREDITPROMBANK: Fitch Downgrades Issuer Default Rating to 'CCC' RADAMANT GROUP: Creditors Must File Claims by February 7 RODOVID BANK: Fitch Cuts Issuer Default Rating to 'CC' from 'CCC' SLOBOZHANSCHINA AGRICULTURAL: Claims Deadline Set February 7 TMTMET LLC: Creditors Must File Claims by February 7 UKRGASBANK: Fitch Downgrades Issuer Default Rating to 'CCC' VSEUKRAINSKY AKSIONERNY: Fitch Cuts Issuer Default Rating to 'CCC' * UKRAINE: State Debt Increased in the Past Two Months U N I T E D K I N G D O M ALBA 2007-1: S&P Downgrades Rating on Class E Notes to 'BB' ARGON CAPITAL: S&P Corrects Ratings on Preference Shares BARRATTS SHOES: Goes Into Administration; Deloitte Appointed BERNSTEIN GROUP: Creditors Will Not Receive Dividend, KPMG Says INEOS GROUP: Weak Liquidity Cues Moody's Junk Corporate Rating INFORMATION TECHNOLOGY: Goes Into Administration LAND OF LEATHER: To Begin Stock Liquidation Sales in 33 Stores LANZET LTD: Appoints Joint Administrators from PKF LB HOLDINGS: Names Joint Administrators from PwC NICKEL BLANKS: Acquired by Carrs of Sheffield POTENTIAL VEHICLE: Appoints Joint Administrators from KPMG PRICELESS SHOES: Goes Into Administration; Deloitte Appointed PRINTHAUS: Goes Into Administration SOUTHERN PACIFIC: S&P Affirms BB+ Ratings on Two Classes of Notes SYMINGTON: Goes Into Administration TATA STEEL: Corus Unveils Strategic Measures, 3,500 Jobs at Risk * RBS Says Half of Commodity Shippers at Risk of Breaching Loans * UK: FTSE350 Pensions Deficit Estimated at GBP33 Bln, Mercer Says * EUROPE: GDP Growth in the European Union to Drop by 1.8% in 2009 ********* ============= A U S T R I A ============= AKTIV-HAUSBAU LTD: Claims Registration Period Ends February 2 ------------------------------------------------------------- Creditors owed money by Aktiv-Hausbau Ltd. (FN 269582w) have until Feb. 2, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Bernhard Astner Schloegelgasse 1 8010 Graz Austria Tel: 0316/832527 Fax: 0316/814315 E-mail: b.astner@hba.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:45 a.m. on Feb. 17, 2009, for the examination of claims at: Graz Land Court Room 205 2nd. Floor Hall K Austria Headquartered in Graz - Puntigam, Austria, the Debtor declared bankruptcy on Dec. 23, 2008, (Bankr. Case No. 40 S 72/08y). AVD-AUTOMOBILE LLC: Claims Registration Period Ends Feb. 19 ----------------------------------------------------------- Creditors owed money by LLC AVD-Automobile (FN 296089a) have until Feb. 19, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Arno Maschke Mariahilfer Strasse 50 1070 Wien Austria Tel: 523 62 00 Fax: 526 72 74 E-mail: maschke@sup.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:20 a.m. on March 5, 2009, for the examination of claims at: Trade Court of Vienna Room 1707 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Dec. 23, 2008, (Bankr. Case No. 2 S 170/08z). BI JSC: Claims Registration Period Ends January 27 -------------------------------------------------- Creditors owed money by JSC BI (FN 206148i) have until Jan. 27, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr. Ulla Reisch Praterstrasse 62-64 1020 Wien Austria Tel: 212 55 00 Fax: 212 55 00 5 E-mail: office.wien@ulsr.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 12:00 p.m. on Feb. 10, 2009, for the examination of claims at: Trade Court of Vienna Room 1701 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Dec. 23, 2008, (Bankr. Case No. 6 S 135/08g). LUDWIG RIEDLER: Claims Registration Period Ends February 25 ----------------------------------------------------------- Creditors owed money by KG Ludwig Riedler (FN 172367g) have until Feb. 25, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Peter Wilhelm Ringstrasse 9 3500 Krems Austria Tel: 02732/82265 Fax: 02732/822656 E-mail: rechtsanwalt@ra-wilhelm.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:15 a.m. on March 11, 2009, for the examination of claims at: Land Court of Krems an der Donau Hall A 2nd. Floor Krems an der Donau Austria Headquartered in Zwettl, Austria, the Debtor declared bankruptcy on Dec. 22, 2008, (Bankr. Case No. 9 S 71/08a). SCHOEGGL LLC: Claims Registration Period Ends February 11 --------------------------------------------------------- Creditors owed money by LLC Schoeggl (FN 79281s) have until Feb. 11, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Heinz Pichler Burggasse 61 8750 Judenburg Austria Tel: 03572-82372 Fax: 03572-82372-19 E-mail: h.pichler@scwp.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on Feb. 25, 2009, for the examination of claims at: Land Court of Leoben Hall IV 1st. Floor Austria Headquartered in St. Peter ob Judenburg, Austria, the Debtor declared bankruptcy on Dec. 22, 2008, (Bankr. Case No. 17 S 70/08z). URI SPIELBETRIEB: Claims Registration Period Ends February 12 ------------------------------------------------------------- Creditors owed money by LLC Uri Spielbetrieb u. Gastro (FN 290764w) have until Feb. 12, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr. Klemens Dallinger Schulerstrasse 18 1010 Wien Austria Tel: 513 28 33, Fax: 513 28 33 22 E-mail: dallinger@anwaltsteam.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 1703 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Dec. 22, 2008, (Bankr. Case No. 5 S 147/08i). VER 2 REAL: Claims Registration Period Ends February 10 ------------------------------------------------------- Creditors owed money by LLC Ver 2 Real Estate (FN 274520g) have until Feb. 10, 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: 513 16 55 33 E-mail: Hoedl@anwaltsteam.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:30 a.m. on Feb. 24, 2009, for the examination of claims at: Trade Court of Vienna Room 1607 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Dec. 22, 2008, (Bankr. Case No. 28 S 170/08s). WAFA IBRAHIM: Claims Registration Period Ends February 12 --------------------------------------------------------- Creditors owed money by LLC Wafa Ibrahim (FN 291944f) have until Feb. 12, 2009, to file written proofs of claim to the court- appointed estate administrator: Markus Siebinger Krugerstrasse 17/3 1010 Wien Austria Tel: 513 22 31 Fax: 513 22 31-1 E-mail: markus.siebinger@der-rechtsanwalt.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on Feb. 26, 2009, for the examination of claims at: Trade Court of Vienna Room 1703 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Dec. 22, 2008, (Bankr. Case No. 5 S 148/08m). ============= B E L G I U M ============= KBC BANK: Impairments on Portfolio Cues Moody's Rating Downgrades ----------------------------------------------------------------- Moody's Investors Service downgraded KBC Bank's bank financial strength rating to C+ from B- and its long-term debt and deposit ratings to Aa3 from Aa2. At the same time, KBC Group's long-term debt rating was also downgraded to A1 from Aa3. All long-term ratings and the bank's BFSR continue to carry a negative outlook. All short-term ratings were affirmed at Prime-1. As a consequence of the rating action on KBC Bank, a number of its subsidiaries ratings have also been affected. The rating actions follow -- but are not solely driven by -- KBC's announcement of further impairments on its Structured Finance portfolio (EUR1.9 billion) as well as on the group's equity portfolio (EUR0.7 billion) beyond the impairments that had already been announced in December 2008. Over FY2008, KBC will have written down over EUR5 billion and is expected to post a net loss of around EUR2.5 billion. Moody's acknowledges that a significant part of the potential impairments on the structured finance portfolio have already been recognized by KBC. However, the group still maintains a sizable exposure to structured finance asset classes, in particular to those from the super senior CDO and RMBS portfolios. In addition, Moody's views the KBC Financial Products activities as an area of concern in the current volatile environment although KBC has stated that it will take measures to scale down its derivatives activities. The negative outlook on KBC's ratings is primarily a reflection of those concerns and going forward Moody's will closely review the performance and the risks entailed by KBC FP's activities and actively monitor the effectiveness of the de- risking measures, to determine whether the current ratings remain compatible with the associated level of risk. Beyond the challenges caused by the financial markets activities the downgrade to Aa3/C+ for the bank, and to A1 for the group, was also triggered by Moody's expectation of deteriorating operating environments in the markets where KBC operates. In particular, Moody's noted significantly weakening market conditions in Central and Eastern Europe and Russia and in Ireland. CEER and Ireland represented approximately 37% and 5%, respectively, of KBC's net banking income for the first nine months of 2008. Furthermore, Moody's expects a more challenging macro-economic environment in Belgium. On the positive side supporting the C+ BFSR, Moody's notes that KBC's liquidity position remains solid, that its capital position provides it with a significant buffer and that the franchise in Flanders has been strengthening in recent months, with the bank seeing a net inflow of deposits. KBC also announced Thursday last week that it would receive a capital injection in the form of hybrid securities subscribed by the Flemish Government. Those hybrid securities are similar to those subscribed by the Federal Government in December 2008 and are thus expected to be considered as Core Tier 1 by the Belgian regulator. KBC Bank will receive EUR2 billion by the end of the first quarter of 2009 while another EUR1.5 billion will be available over the coming five years for the Group through a stand-by facility. Moody's notes that KBC has actively sought to increase its regulatory capital since 2Q 2008, including through the EUR2 billion tier 1 issuance of May 2008, the December 2008 EUR3.5 billion capital injection from the Belgian Government and the above-mentioned EUR2 billion capital injection from the Flemish Government. In respect of the group's main units, these rating actions have been taken: - KBC Bank N.V.'s BFSR downgraded to C+ from B-, long-term deposits and senior unsecured debt ratings downgraded to Aa3 from Aa2, junior subordinated and backed junior subordinated debt downgraded to A2 from A1. All ratings continue to carry a negative outlook. The Prime-1 short-term deposit ratings are affirmed. - KBC Group N.V.'s long-term senior unsecured debt rating and issuer rating downgraded to A1 from Aa3. All ratings continue to carry a negative outlook. The Prime-1 short-term issuer rating is affirmed. In respect of the group's funding vehicles, these rating actions have been taken: - Kredietbank North America Finance Corp's Prime-1 backed commercial paper rating is affirmed. - KBC International Finance N.V. backed long-term senior unsecured ratings downgraded to Aa3 from Aa2, and backed long- term subordinated and junior subordinated ratings downgraded to A1 from Aa3. All ratings continue to carry a negative outlook. - KBC Bank Funding Trust II's backed preferred stock rating downgraded to A2 from A1. The rating continues to carry a negative outlook. - KBC Bank Funding Trust III's backed preferred stock rating downgraded to A2 from A1. The rating continues to carry a negative outlook. - KBC Bank Funding Trust IV's backed preferred stock rating downgraded to A2 from A1. The rating continues to carry a negative outlook. - KBC IFIMA N.V.'s backed senior unsecured rating downgraded to Aa3 from Aa2, backed subordinated debt rating downgraded to A1 from Aa3. The ratings continue to carry a negative outlook. The Prime-1 short-term debt rating is affirmed. - KBC Dublin Capital Prime-1 backed commercial paper rating is affirmed. - KBC Financial Products International Ltd's backed senior unsecured debt rating downgraded to Aa3 from Aa2. The rating continues to carry a negative outlook. The Prime-1 short-term debt and commercial paper ratings are affirmed. - KBC Financial Products International VI Ltd's backed senior unsecured debt rating downgraded to Aa3 from Aa2. The rating continues to carry a negative outlook. In respect of the bank's operating subsidiaries, these rating actions have been taken: - KBC Bank's Irish subsidiary KBC Bank Ireland's long-term deposit and senior unsecured debt ratings were downgraded to A2 from A1, and the subordinated debt and junior subordinated debt ratings were downgraded to A3 from A2. The short-term Prime-1 rating was affirmed as was the C- BFSR (mapping to a baseline credit assessment of Baa1). The rating outlook is stable. The downgrade of the long-term ratings is a result of the similar rating action on KBC Bank N.V. The A2 senior rating of KBC Bank Ireland reflects Moody's assessment of a very high probability of parental support from KBC Bank N.V. as well as a high probability of systemic support. Due to the downgrade to A2 of the senior debt rating of KBC Bank Ireland, Moody's has also downgraded the Mortgage Backed Promissory Notes of the bank to Aa3. The rating of the Mortgage Backed Promissory Notes benefit from a two notch uplift from the issuers' senior debt rating. Moody's last rating action on KBC Bank Ireland was on December 16, 2008 when the BFSR was downgraded to C- from C. At the same time the A1 long-term bank deposit and senior debt ratings were affirmed with a negative outlook, in line with the outlook on KBC Bank N.V. - KBC Bank N.V.'s Czech subsidiary Ceskoslovenska obchodni Banka, a.s.(CSOB CZ)'s long-term local currency deposit ratings downgraded to Aa3 from Aa2. The rating continues to carry a negative outlook. The bank's long-term foreign currency deposit rating of A1 with stable outlook, BFSR of C with stable outlook and Prime-1 short-term deposit ratings were not affected by the rating action on the parent. Moody's previous rating action on CSOB CZ was on December 9, 2008, when the outlook on the long-term foreign currency deposit rating was changed to stable from positive due to the same change in the outlook on the Czech Republic's A1 ceiling for foreign currency deposits. - KBC Bank N.V.'s Slovak subsidiary Ceskoslovenska obchodna Banka, a.s.(CSOB SK)'s foreign and local currency long-term deposit ratings affirmed at A2. The outlook was changed to negative from stable. The bank's Prime-1 short-term deposit ratings and the BFSR of D with stable outlook were not affected by the rating action on the parent. Moody's previous rating action on CSOB SK was on February 27, 2008, when Moody's assigned first-time ratings to the bank. - KBC Bank N.V.'s Slovak subsidiary Istrobanka, a.s.'s national scale ratings of Aa1.sk/SK-1 and BFSR of D- with positive outlook were not affected by the rating action on the parent. Moody's previous rating action on Istrobanka was on July 7, 2008, when Moody's upgraded Istrobanka's national scale deposit rating to Aa1.sk from A1.sk and affirmed the BFSR of D- with positive outlook after KBC Bank N.V. concluded the acquisition of the entity. - KBC Bank N.V.'s Hungarian subsidiary Kereskedelmi & Hitel bank Rt.'s local currency long-term deposit rating was affirmed at Aa3 while the outlook was changed to negative from stable. The bank's foreign currency long-term deposit rating of A3 with negative outlook, BFSR of C- with stable outlook, Prime-1 short-term local currency deposit ratings and Prime-2 short- term foreign currency deposit ratings were not affected by the rating action on the parent. Moody's previous rating action on K&H Bank was on November 7, 2008, when its foreign currency deposit ratings were downgraded to A3 (negative outlook)/Prime-2 from A2 (stable outlook)/Prime-1 due to a sovereign rating action that resulted in the downgrade of Hungary's ceiling for foreign currency deposits to A3 (negative outlook) from A2 (stable outlook). - KBC Bank N.V.'s Polish subsidiary Kredyt Bank's foreign and local currency long-term deposit ratings were affirmed at A2. The outlook was changed to negative from stable. The bank's Prime-1 short-term deposit ratings and the BFSR of D with stable outlook were not affected by the rating action on the parent. Moody's last rating action on Kredyt Bank was on February 14, 2008, when Moody's affirmed its ratings with a stable outlook following change in outlook to negative from stable on KBC Bank N.V.'s BFSR. - KBC Bank N.V.'s Russian subsidiary Absolut Bank's foreign and local currency long-term deposit and foreign currency long- term senior unsecured ratings were affirmed at Baa3. The outlook was changed to negative from stable. The bank's BFSR of D- with stable outlook, the long-term National Scale Rating of Aaa.ru and the bank's Prime-3 foreign and local short-term deposit ratings were not affected by the rating action on the parent. The negative outlook on Absolut Bank's long-term deposit and debt ratings reflects Moody's downgrade of the parent bank's BFSR and the negative outlook assigned to it and means that a further downgrade of KBC's BFSR by one notch would result in a respective one-notch downgrade of Absolut Bank's deposit and debt ratings. Moody's previous rating action on Absolut Bank was taken on February 14, 2008, when the rating agency affirmed the bank's Baa3/Prime 3 long- and short-term local and foreign currency deposit ratings and its D- BFSR, as well as Baa3 long-term foreign currency senior unsecured debt rating of Absolut Bank with stable outlook on all of the ratings. The last rating action on KBC Bank N.V. and KBC Group N.V. was on February 14, 2008, when Moody's assigned negative outlooks to KBC Bank's BFSR and KBC Bank's and KBC Group's long-term deposit and debt ratings, as Moody's concluded that there was a strong likelihood that KBC's ratings could come under pressure if the market turmoil were to develop further and specifically affect KBC's CDO portfolio. Based in Brussels, KBC Group had total assets amounting to EUR383.6 billion at end-September 2008. KBC Group's consolidated total income for the first nine months of 2008 (IFRS) stood at EUR4.771 billion, down 35% from EUR7.329 billion for the first nine months of 2007. In the same period, the net profit group share stood at EUR141 million (9M 2007: EUR2.572 billion). ============= D E N M A R K ============= ATLAS SHIPPING: Files for Chapter 15 Protection ----------------------------------------------- Copenhagen, Denmark-based Atlas Shipping A/S filed a Chapter 15 petition before the U.S. Bankruptcy Court for the Southern District of New York. According to Bloomberg News, the company listed as much as US$500 million in debt and up to US$50 million in assets in its Chapter 15 petition. Affiliate Atlas Bulk Shipping separately listed as much as US$50 million in debt and up to US$10 million in assets. Atlas Shipping A/S said Jan. 18 on its Web site that it filed a petition for bankruptcy with the Bankruptcy Division of the Maritime and Commercial Court in Copenhagen, Denmark. The Copenhagen Court entered bankruptcy orders with respect to Atlas Shipping A/S and its affiliates Atlas Bulk Shipping A/S and Atlas Shipping Holding A/S. The Atlas Shipping Group has been operating as an international contractor of tonnage and provider of transport solutions in the dry bulk sector with tonnages ranging from 25,000 to 80,000 DWT (Dead Weight Tons). Since it was founded in 1996, the group has operated successfully but due to the historic drops in freight rates the management has had to realize that if the group continues its operations it will not be able to fulfill its obligations as they fall due. The Atlas Shipping Group is owned and operated by Bo Kristensen who has been involved in the shipping business for more than 25 years. In connection with the bankruptcy filing, Mr. Kristensen said in connection with the bankruptcy: "It is extremely unfortunate, not least for all our highly skilled employees and our loyal customers, that due to the historic drop in freight rates since August 2008, we have had to realize that within a foreseeable timeframe the group will no longer be able to fulfill all its financial obligations as they fall due." In 2007 the Atlas Shipping Group had net revenues of US$789 million and a profit from operating activities of US$109 million. Total revenue in 2008 has been close to US$1 billion, but due to the global crisis in shipping the group has more than halved its profit from ordinary activities, i.e. before making the substantial loss provisions in respect of contracts. "We unfortunately have to recognize that the present freight rates and the charter-parties we have entered into before the crisis in the shipping business commenced will imply a liquidity loss of approximately US$3 [million] a week if we continue our operations in their present form. If we continue our operations, our present -- and considerable -- liquidity, will be spent within three months unless the international freight rates increase dramatically within the same period", says Bo Kristensen and continues, "Therefore we have in consultation with our advisors decided that in the present situation the sensible thing to do is to file a petition for bankruptcy." "We have informed our employees at a meeting today and we have now, with the liquidator, Michael Ziegler of Plesner Law Firm and liquidator Lisa Bo Larsen, Kromann Reumert, started helping our customers get their vessels to the destinations," says Bo Kristensen. The Atlas Shipping Group operates 41 vessels worldwide and has a total of 25 employees. Please direct all inquiries to Bo Kristensen or Per Moller at +45 3927 9400. Any inquiries in respect of the estate should be directed to Michael Ziegler, Attorney-at-Law, Plesner Law Firm, at +45 3312 1133 or Lisa Bo Larsen, Attorney-at-Law, Kromann Reumert, at +45 7012 1211. ============= G E R M A N Y ============= BOXENSTOPP MOTORRADTECHNIK: Claims Registration Ends March 23 ------------------------------------------------------------- Creditors of Boxenstopp Motorradtechnik GmbH have until March 23, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 2:20 p.m. on April 20, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Delmenhorst Hall 2 Branch 1 Cramerstrasse 183 27749 Delmenhorst 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: Berend Boehme Richtweg 1 28195 Bremen Germany Tel: 0421/515756-0 Fax: 0421/515756-10 E-mail: bremen@bo-oelb.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: Boxenstopp Motorradtechnik GmbH Allensteiner Str. 10 27243 Harpstedt Germany Attn: Thomas Richter, Manager Einsteinstr. 18 28309 Bremen Germany DOLPHIN TELECOM: Claims Registration Period Ends February 19 ------------------------------------------------------------ Creditors of Dolphin Telecom 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 11:10 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 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: Hans-Gerd Jauch Sachsenring 81 50677 Cologne 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: Dolphin Telecom GmbH Attn: Oliver Wilps, Manager Kaltenbornweg 6 50679 Cologne Germany FCC GMBH: Claims Registration Period Ends March 10 -------------------------------------------------- Creditors of FCC GmbH have until March 10, 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 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 Dortmund Hall 3.201 Gerichtsplatz 22 44135 Dortmund 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. Winfrid Andres Stefanstrasse 2 44135 Dortmund 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: FCC GmbH Oberbank 9 44149 Dortmund Germany Attn: Murat Soyumer, Manager Heilsberger Weg 4 44369 Dortmund Germany PRONOVA BAUUNTERNEHMEN: Claims Registration Period Ends March 5 --------------------------------------------------------------- Creditors of Pronova Bauunternehmen und Baustoffhandel GmbH have until March 5, 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 March 30, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Hildesheim Hall 124 Main Building Kaiserstrasse 60 31134 Hildesheim 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. Steffen Koch Sophienstr. 1 30159 Hannover Germany Tel: 0511/3539910 Fax: 0511/35399110 E-mail: www.hww-kanzlei.de The District Court opened bankruptcy proceedings against the company on Jan. 9, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Pronova Bauunternehmen and Baustoffhandel GmbH Attn: Detlev Kupfer, Manager Breite Str. 5 31174 Schellerten Germany VISTEON CORP: Hires Advisers for Possible Bankruptcy ---------------------------------------------------- Visteon Corp. has hired Kirkland & Ellis LLP as bankruptcy counsel and Rothschild Inc. as financial adviser to prepare for a possible bankruptcy filing, John D. Stoll and Jeffrey McCracken report, citing people familiar with the matter. The sources said that Visteon's hiring of the experts doesn't mean a bankruptcy filing is imminent, WSJ relates. WSJ states that the sources said that Visteon and its advisers are studying whether it should file for bankruptcy pre-emptively to conserve its cash. According to Bloomberg, Visteon, a former unit of Ford Motor Co., fell to a record low in New York trading after a report that the supplier had hired advisers to prepare for a possible bankruptcy filing. The company's shares fell 7 cents, or 32 percent, to 15 cents at 4:15 p.m. in New York Stock Exchange composite trading. That was the lowest close since trading began in June 2000, according to data compiled by Bloomberg. WSJ states that Visteon's bonds trade below 20 cents on the dollar, indicating that investors believe that the company wouldn't be able to pay off its debt. Sources said that Visteon has plenty of cash right now, but it burned through more than US$400 million in 2008, according to WSJ. The report says that Visteon is worried that it could face a liquidity crisis later in 2009. According to WSJ, a person familiar with the matter said that Visteon's probability of filing for bankruptcy is "about 65% to 70%," mainly depending of on the outcome of high-levels talks with Ford Motor Co. Visteon is one of Ford Motor's biggest parts suppliers. Visteon, says WSJ, and will cut pay by as much as 10% for any employee making more than US$75,000. WSJ reports that a bankruptcy filing by Visteon could affect Ford Motor. Visteon, in bankruptcy protection, might be able to reject and renegotiate parts contracts with Ford Motor that it felt were unprofitable, according to the report. Visteon, WSJ states, might also be able to evade or beat back any concessions that Ford Motor demands from its suppliers. Visteon also supplies parts to General Motors Corp., Chrysler LLC, Nissan Motor Co., and BMW AG. Restructuring and Other Actions Visteon completed its three-year improvement plan at a lower cost and with greater savings than originally planned. Recent actions taken at two Western European manufacturing locations bring to 30 the total number of facilities addressed. As of Dec. 31, 2008, US$68 million was available in the escrow account to fund future restructuring actions. Visteon continues to take other aggressive actions in light of the current vehicle production environment. The company is on track to complete, by the end of first quarter 2009, the reduction of 800 salaried employees globally, announced in October 2008. This action will generate an estimated per annum savings of US$60 million once completed. For the month of January 2009, Visteon adopted a four-day workweek schedule for about 2,000 salaried employees at its Van Buren Township and Plymouth, Mich., facilities commensurate with a 20% reduction in base salaries. This action will be reassessed based on future market conditions. The company also has implemented other actions to reduce costs including the suspension of 401(k) matching contributions and 2009 salary increases, the elimination of certain benefit programs, and a reduction in new hiring. Additional actions are being taken to reduce capital expenditures, working capital and non-personnel expenses. Preliminary 2008 Financial Data Visteon has provided preliminary estimates of certain financial information for the fourth quarter and full year 2008. Visteon expects to release its final fourth-quarter and full-year 2008 financial results on Feb. 25, 2009. Product sales for fourth quarter 2008 are estimated to be US$1.55 billion, while full year 2008 sales are estimated at US$9.1 billion. Approximately 22% of total fourth quarter product sales were in North America, with 37% in Europe and 35 percent in Asia-Pacific. The reduction in fourth quarter sales compared with a year ago is largely attributable to significantly lower vehicle production by Visteon's global customers. Visteon continues to win new business with a broad spectrum of customers across all regions, a reflection of the company's significant global footprint and breadth of innovative products. New business wins in 2008 were about US$650 million. Many of the innovations in Visteon's climate, interiors, electronics and lighting products are featured on vehicles prominently displayed at the 2009 North American International Auto Show in Detroit. This includes significant products for both the NAIAS 2009 Car of the Year -- Hyundai Genesis -- and the 2009 Truck of the Year, Ford F-150. Visteon's year-end 2008 cash balances were US$1.18 billion, which include US$75 million drawn under the company's principal U.S. credit line. Visteon's debt balances at year-end 2008 were approximately US$2.76 billion and include US$92 million for the non-cash impact of on-balance sheet accounting treatment for the Europe securitization facility, which was amended in fourth quarter 2008. About Visteon Corp. Headquartered in Van Buren Township, Michigan, Visteon Corporation (NYSE: VC) -- http://www.visteon.com/-- is an automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic and lighting products for vehicle manufacturers, and also provides a range of products and services to aftermarket customers. The company also has corporate offices in Shanghai, China; and Kerpen, Germany; the company has facilities in 26 countries and employs approximately 38,500 people. As reported in the Troubled Company Reporter on Nov. 4, 2008, Visteon Corporation's balance sheet at Sept. 30, 2008, showed total assets of US$5.9 billion and total liabilities of US$6.4 billion, resulting in shareholders' deficit of roughly US$530 million. The company reported a net loss of USUS$188 million on total sales of US$2.11 billion. For third quarter 2007, Visteon reported a net loss of US$109 million on sales of US$2.55 billion. Visteon reported a net loss of US$335 million for the first nine months of 2008, compared with a net loss of US$329 million for the same period a year ago. * * * The Troubled Company Reporter said on Jan. 14, 2009, that Standard & Poor's Ratings Services lowered its corporate credit rating on Visteon Corp. to 'CCC' from 'B-' and removed all the ratings from CreditWatch, where they had been placed on Nov. 13, 2008, with negative implications. The outlook is negative. At the same time, S&P also lowered its issue-level ratings on the company's debt. TCR reported on Nov. 27, 2008, that Moody's Investors Service lowered Visteon Corporation's corporate family and probability of default ratings to Caa2, and Caa1, respectively. In a related action, Moody's also lowered the ratings of Visteon's senior secured term loan to B3 from Ba3, unguaranteed senior unsecured notes to Caa3 from Caa2, and guaranteed senior unsecured notes to Caa2 from Caa1. Visteon's Speculative Grade Liquidity remains SGL-3. The outlook is negative. ZL MOBIL TECHNIK: Claims Registration Period Ends February 11 ------------------------------------------------------------- Creditors of ZL Mobil Technik Fahrzeugbau Verwaltungs GmbH have until Feb. 11, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 8:00 a.m. on March 10, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Stuttgart Room 176 Hauffstr. 5 70190 Stuttgart 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. Reinhard Th. Schmid Hasenbergsteige 5 70178 Stuttgart Germany Tel: 0711/66 90 70 Fax: 0711/66 45 068 The District Court opened bankruptcy proceedings against the company on Jan. 7, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ZL Mobil Technik Fahrzeugbau Verwaltungs GmbH Attn: Alois Zwerschina, Manager Schatzweg 2 70597 Stuttgart Germany * GERMANY: EU Commission Approves EUR6.7 Billion Guarantee for SDB ------------------------------------------------------------------ The European Commission has approved, under EC Treaty state aid rules, a EUR6.7 billion SoFFin-guarantee for SdB � Sicherungseinrichtungsgesellschaft deutscher Banken mbH, a banking entity of the German private banking industry. The guarantee aims to bolster the German Deposit Protection Fund and to pre-finance future proceeds from the estates of insolvent Lehman Brothers entities. The Commission found the measure to be in line with its Guidance Communication on state aid to overcome the current financial crisis. The guarantee is necessary to avoid a serious disturbance in the German economy and to ensure the stability of the German banking sector while avoiding undue distortions of competition and is therefore compatible with Article 87.3.b. of the EC Treaty. Competition Commissioner Neelie Kroes said: "The Commission's very rapid decision supports the German authorities' efforts to stabilise financial markets. The present decision is an example that our rules are adaptable enough to support not only individual banks but also the banking industry of a Member State as a whole." On January 15, 2009, the German authorities notified a guarantee to be granted by the German Special Fund for Financial Market Stabilization (SoFFin). The guarantee aims at providing collateral for a bond in the amount of EUR6.7 billion issued by Sicherungseinrichtungsgesellschaft deutscher Banken mbH (SdB) and subscribed by the member banks of the Association of German Banks (BdB). The SoFFin-guarantee enables the subscribers the refinancing of the bond via the German Central Bank. SdB is a newly created banking entity, which supports the Deposit Protection Fund of the German private commercial banks in processing the compensation payments. The Deposit Protection Fund of the German commercial banks fully secures the deposits of each and every customer at the private commercial banks up to a ceiling of 30% of the relevant liable capital of each member banks. On September 15, 2008, Lehman Brothers Holdings Inc., a major global US based investment bank, filed for Chapter 11 bankruptcy protection and triggered the insolvency of its German subsidiary Lehman Brothers Bankhaus AG. The Deposit Protection Fund envisages compensating the depositors of Lehman Brothers Bankhaus AG until end of January 2009. The aim of the bond issue is to pre-finance the future incoming payments the Deposit Protection Fund will receive from the insolvency assets of the insolvent Lehman Brothers Bankhaus AG and its parent company Lehman Brothers Holdings Inc. The pre- financing will provide more financial maneuvering room to the Deposit Protection Fund with regard to the compensation of the depositors of Lehman Brothers Bankhaus AG and potential additional future compensation or support measures to avoid banking insolvencies. The measure will therefore contribute to increase the confidence in the German private banking sector and the effectiveness of its Protection Fund. ============= I R E L A N D ============= AMERICAN INT'L: Seeks Bids for Fund Management Business ------------------------------------------------------- American International Group Inc plans to divest its Fund Management Business, which operates 15 existing fund programs with over US$12.4 billion in assets under management and US$5.2 billion in equity capital commitments as of September 30, 2008. In a statement Monday, AIG said the Fund Management Business is a global asset advisor headquartered in New York with regional operations in Europe, Japan, Latin America and Asia and includes committed equity capital that has been funded or is to be funded by AIG as a sponsor or co-investor. Bank of America and Merrill Lynch, GRE's financial advisors, have begun to solicit interest for the Fund Management Business. Separately, Bloomberg News reports that according to Reuters, AIG has received bids from investors including sovereign wealth funds in Singapore, China and the Middle East for its aircraft leasing unit, International Lease Finance Corp. The report relates Reuters's sources said among the initial bidders for the unit are Singapore's Temasek Holdings Pte, Dubai's investment arm Istithmar World, the Kuwait Investment Authority and China Investment Corp. Private equity firms including Carlyle Group, TPG Capital LP and Kohlberg Kravis Roberts & Co. are also bidding, the report says citing Reuters. While the timing of the auction for the unit, which could be worth as much as US$8 billion, is unclear, the second round of bids could come in the third week of February, Bloomberg News adds, citing Reuters. About AIG Based in New York, American International Group, Inc. (AIG) is the leading international insurance organization with operation in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo. During the third quarter of 2008, requirements to post collateral in connection with AIG Financial Products Corp.'s credit default swap portfolio and other AIGFP transactions and to fund returns of securities lending collateral placed stress on AIG's liquidity. AIG's stock price declined from US$22.76 on Sept. 8, 2008, to US$4.76 on Sept. 15, 2008. On that date, AIG's long-term debt ratings were downgraded by Standard & Poor's, a division of The McGraw-Hill Companies, Inc., Moody's Investors Service and Fitch Ratings, which triggered additional requirements for liquidity. These and other events severely limited AIG's access to debt and equity markets. On Sept. 22, 2008, AIG entered into an US$85 billion revolving credit agreement with the Federal Reserve Bank of New York and, pursuant to the Fed Credit Agreement, AIG agreed to issue 100,000 shares of Series C Perpetual, Convertible, Participating Preferred Stock to a trust for the benefit of the United States Treasury. At Sept. 30, 2008, amounts owed under the facility created pursuant to the Fed Credit Agreement totaled US$63 billion, including accrued fees and interest. Since Sept. 30, AIG has borrowed additional amounts under the Fed Facility and has announced plans to sell assets and businesses to repay amounts owed in connection with the Fed Credit Agreement. In addition, subsequent to Sept. 30, 2008, certain of AIG's domestic life insurance subsidiaries entered into an agreement with the NY Fed pursuant to which the NY Fed has borrowed, in return for cash collateral, investment grade fixed maturity securities from the insurance subsidiaries. On Nov. 10, 2008, the U.S. Treasury agreed to purchase, through its Troubled Asset Relief Program, US$40 billion of newly issued AIG perpetual preferred shares and warrants to purchase a number of shares of common stock of AIG equal to 2% of the issued and outstanding shares as of the purchase date. All of the proceeds will be used to pay down a portion of the Federal Reserve Bank of New York credit facility. The perpetual preferred shares will carry a 10% coupon with cumulative dividends. AIG and the Fed also agreed to revise the existing FRBNY credit facility. The loan terms were extended from two to five years to give AIG time to complete its planned asset sales in an orderly manner. The equity interest that taxpayers will hold in AIG, coupled with the warrants, will total 79.9%. At Sept. 30, 2008, AIG had US$1.022 trillion in total consolidated assets and US$950.9 billion in total debts. Shareholders' equity was US$71.18 billion, including the addition of US$23 billion of consideration received for preferred stock not yet issued. ========= I T A L Y ========= SESTANTE FINANCE: Moody's Concludes Reviews for Likely Rating Cuts ------------------------------------------------------------------ Moody's Investors Service concluded its review for possible downgrade of the notes issued by Sestante Finance S.r.l. in three RMBS transactions: Sestante Finance S.r.l. Series 2004, Sestante Finance S.r.l. Series 2005, and Sestante Finance S.r.l. Series 2006. All ratings were placed on review for possible downgrade on September 17, 2008, following the announcement by Lehman Brothers Holdings Inc. that it intended to file a petition under Chapter 11 of the U.S. Bankruptcy Code on September 15. In the Sestante RMBS transactions, Lehman Brothers Special Financing Inc. was acting as interest rate cap provider. On December 4, 2008, new cap agreements have been entered into with the new cap provider, BNP Paribas (Aa1/P-1). These new cap agreements entail the payment of an upfront premium by the SPV to the cap provider. In its rating review, Moody's has evaluated the impact of the premium payment and the role of the cap provider. Moody's have concluded that there are, as per Moody's current understanding, no incremental risks stemming from these cap arrangements that could translate into increased losses to noteholders, ultimately affecting ratings of the notes. The downgrade of the Class C2 issued by Sestante 2006 was prompted by worse-than-expected collateral performance. The rating downgrade takes into account an increased portfolio loss expectation resulting from higher than expected delinquency and default levels. With 23 months seasoning since closing, Sestante 2006 shows delinquencies 90+ days at 4.62% of the current portfolio balance, while cumulative defaults equal 1.77% of the original portfolio balance. The delinquency ratio was calculated as the proportion of loans with 3 to 11 missed installments compared to the current amount of the non-defaulted part of the portfolio. Sestante 2005 has 35 months of seasoning since closing and delinquencies 90+ days stand at 4.26% of the current portfolio balance, while defaults equal 1.28% of the original portfolio balance. Sestante 2004 has 4.5% of delinquencies 90+ days of current balance, while defaults equal 2.1% of the original portfolio balance. As part of its analysis, Moody's has assessed updated loan-by-loan information of the outstanding transactions to determine the increase in credit support needed to address the current portfolio performance and to assess the volatility of future losses. Taking into account the current amount of cumulative defaults and completing a delinquency/default roll-rate and severity analysis for the non-defaulted portion of the portfolio, Moody's has adjusted its loss expectations for these portfolios to these ranges: - Sestante 2004: a range of 2.5%-3% (from 1.5%-2%), - Sestante 2005: a range of 2.5%-3% (from 1.5%-2%) and - Sestante 2006: a range of 2.8%-3.2% (from 1.5%-2.5%) of the original pool balance. Investors should also note that the reserve fund has been drawn for the last three consecutive periods in Sestante 2004. Indeed, it stands at EUR4.37 million after the January 2009 interest payment date as opposed to the required target of EUR6.25 million. Moody's will continue to monitor the transaction closely to assess the impact of the reduction of the reserve fund on the issued notes. Under the Sestante RMBS transaction series, Meliorbanca (Baa3/P- 3/D+) securitized first-lien mortgage loans granted to individuals, all of whom are using these loans to acquire, construct or refurbish residential properties in Italy. The issued Class A, B and C1 notes were backed by a portfolio of mortgage loans. The Class C2 are repaid by excess spread, both in terms of interest and principal. Ratings List Sestante Finance S.r.l. Series 2004: - Class A Asset-Backed Floating-Rate Notes due 8 July 2042, current rating Aaa, previously on 17 Sept 2008 put on review for possible downgrade; confirmed; - Class B Asset-Backed Floating-Rate Notes due 8 July 2042, current rating Aa3, previously on 17 Sept 2008 put on review for possible downgrade; confirmed; - Class C1 Asset-Backed Floating-Rate Notes due 8 July 2042, current rating A3, previously on 17 Sept 2008 put on review for possible downgrade; and confirmed; - Class C2 Asset-Backed Floating-Rate Notes due 8 July 2042, current rating Baa3, previously on 17 Sept 2008 put on review for possible downgrade; confirmed. -- Previous rating action date: 17 September 2008 Sestante Finance S.r.l. Series 2005: - Class A Asset-Backed Floating-Rate Notes due 2045, current rating Aaa, previously on 17 Sept 2008 put on review for possible downgrade, confirmed; - Class B Asset-Backed Floating-Rate Notes due 2045, current rating Aa3, previously on 17 Sept 2008 put on review for possible downgrade, confirmed; - Class C1 Asset-Backed Floating-Rate Notes due 2045, current rating A3, previously on 17 Sept 2008 put on review for possible downgrade, confirmed; and - Class C2 Asset-Backed Floating-Rate Notes due 2045, current rating Baa3, previously on 17 Sept 2008 put on review for possible downgrade, confirmed. - Previous rating action date: 17 September 2008 Sestante Finance S.r.l. Series 2006: - Class A1 Asset-Backed Floating-Rate Notes due 2046, current rating Aaa, previously on 17 Sept 2008 put on review for possible downgrade, confirmed; - Class A2 Asset-Backed Floating-Rate Notes due 2046, current rating Aaa, previously on 17 Sept 2008 put on review for possible downgrade, confirmed; - Class B Asset-Backed Floating-Rate Notes due 2046, current rating Aa3, previously on 17 Sept 2008 put on review for possible downgrade, confirmed; - Class C1 Asset-Backed Floating-Rate Notes due 2046, current rating A3, previously on 17 Sept 2008 put on review for possible downgrade, confirmed; and - Class C2 Asset-Backed Floating-Rate Notes due 2046 , previously on 17 Sept 2008 put on review for possible downgrade, downgraded to Ba1 from Baa3. - Previous rating action date: 17 September 2008. Moody's ratings address the expected loss posed to investors by the legal final maturity of the notes. Moody's ratings address only the credit risks associated with the transaction. Other non- credit risks have not been addressed, but may have a significant effect on yield to investors. =================== K A Z A K H S T A N =================== ALLIANCE AS: Proof of Claim Deadline Slated for March 6 ------------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Alliance AS insolvent on Dec. 10, 2008. Creditors have until March 6, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Timiryazev Str. 61-2 Almaty Kazakhstan Tel: 8 (7272) 75-67-84 BATYS INVEST B: Creditors Must File Claims by March 6 ----------------------------------------------------- LLP Batys Invest B has declared insolvency. Creditors have until March 6, 2009, to submit written proofs of claim to: LLP Batys Invest B Eset-Batyr Str. 103-93 Aktobe Aktube Kazakhstan INSERVICE STROY: Claims Filing Period Ends March 6 -------------------------------------------------- LLP Construction Company Inservice Stroy has declared insolvency. Creditors have until March 6, 2009, to submit written proofs of claim to: LLP Construction Company Inservice Stroy Burundaiskaya Str. 61-1 Turksibsky Almaty Kazakhstan MEGA PRODUCTS: Creditors' Proof of Claims Due on March 6 -------------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Mega Products insolvent on Dec. 15, 2008. Creditors have until March 6, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Office 508 Maulenov Str. 92 Almaty Kazakhstan Tel: 8 (7272) 67-63-55 8 777 803 44-33 MORGAN STENLI: Claims Registration Ends March 6 ----------------------------------------------- LLP Morgan Stenli Kazakhstan has declared insolvency. Creditors have until March 6, 2009, to submit written proofs of claim to: LLP Morgan Stenli Kazakhstan Kairbekov Str. 38 Medeusky Almaty Kazakhstan Tel: 8 (7272) 34-06-57 8 (7272) 34-06-58 NEKSUS LLP: Proof of Claim Deadline Slated for March 6 ------------------------------------------------------ The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Neksus insolvent. Creditors have until March 6, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Kostanai Baitursynov Str. 70 Kostanai Kazakhstan PODSHIPNIK LLP: Creditors Must File Claims by March 6 ----------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan has declared LLP Auto Prom Podshipnik insolvent. Creditors have until March 6, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of East Kazakhstan Peschanaya Str. 3 Ust-Kamenogorsk East Kazakhstan Kazakhstan SAS KAZ TRADING: Claims Filing Period Ends March 6 -------------------------------------------------- LLP Sas Kaz Trading Ltd. has declared insolvency. Creditors have until March 6, 2009, to submit written proofs of claim to: LLP Sas Kaz Trading Ltd. Micro District Samal, 4-4 Saryarka Astana Kazakhstan =================== K Y R G Y Z S T A N =================== TRUB SERVICE: Creditors Must File Claims by Feb. 24 --------------------------------------------------- LLC Prom Trub Service has declared insolvency. Creditors have until Feb. 24, 2009, to submit written proofs of claim to: LLC Prom Trub Service Isanov Str. 198 Bishkek Kyrgyzstan ================= L I T H U A N I A ================= FLYLAL: Lithuanian Ministry Seeks Probe Into Bankruptcy ----------------------------------------------- ------- AFP reports that the Lithuania's transport ministry has asked the national prosecutor's office to probe into the collapse of Lithuanian airline FlyLAL. According to AFP, the ministry believes intentional mismanagement drove the airline into bankruptcy. In a statement, the ministry, as cited by AFP, said that it had grounds to suspect that the carrier's leadership had knowingly mismanaged the formerly state-owned company in order to send it bankrupt. However, transport minister spokeswoman Irina Sklepovic, declined to say why the authorities' suspicions had been aroused, or why it could have been in the interests of FlyLAL's management to send the airline to the wall, AFP notes. On Jan. 26, 2009, the TCR-Europe reported that according to Reuters, FlyLAL, which was privatized in 2005, grounded its flights last weekend after failing to find an investor, Reuters recounted. "Being unable to continue flights and without seeing any real chances to renew operations, we were forced to file for bankruptcy," CEO Vytautas Kaikaris said in a statement obtained by Reuters. Reuters disclosed that according to Mr. Kaikaris, the airline's financial situation "worsened significantly at the end of 2008 and beginning of 2009 and there were no possibilities to improve it without additional investments". Reuters recalled the Lithuanian government rejected a proposal to buy the airline back for a symbolic LTL1 and cover its debts, which stood at LTL89 million (US$33.41 million) at the end of 2008. Citing Vilnius airport spokesman Arunas Marcinkevicius, Reuters said the airport is currently in talks with six airlines to fill the gap left by the former national carrier. On Jan. 21, 2009, the TCR-Europe reported that according to Reuters, flyLAL's rescue deal with Swiss Capital Holding failed to materialize. Citing airline officials, The Associated Press stated the Swiss company failed to pay US$1 million (EUR756,000) that would have cleared the airline's debts and potentially saved it from bankruptcy. flyLAL, which employs 360 people, ceased its operations from January 17, 2009. ===================== N E T H E R L A N D S ===================== ERICK VAN EGERAAT: Goes Into Receivership; 150 Jobs at Risk ----------------------------------------------------------- Liz Bury at Building Design reports that Erick van Egeraat's Rotterdam-based architecture firm Erick van Egeraat Associates has gone into receivership, putting 150 jobs at risk. The report relates law firm De Bok Roijers Gasseling was appointed by the Dutch courts after Mr. van Egeraat himself declared the practice insolvent. The firm, the report recounts, called in the receivers after a number of major projects were put on hold due to the credit crunch. According to the report, the sudden cancellation of work caused a cashflow crisis at the firm. The firm, which also has offices in London, Budapest, Moscow and Prague, has about 50 projects on its books, the report states. "We are still investigating the possibility to continue some projects they are involved in, or to find a suitable partner to take over. We would sell it to them under the condition that they will finalize the building or design [of the firm's projects]. No decisions have been made," Raymond De Bok from law firm De Bok Roijers Gasseling was quoted by the report as saying. Dan Stewart at building.co.uk recalls the firm had previously gone into voluntary insolvency in 2005, blaming the British planning system. LYONDELLBASELL INDUSTRIES: Chapter 11 Prompts S&P's 'D' Rating -------------------------------------------------------------- In a report published, Standard & Poor's Ratings Services addresses frequently asked questions regarding recovery expectations for LyondellBasell creditors. On Jan. 7, 2009, S&P lowered its long-term corporate credit rating on the three main U.S. subsidiaries of European holding company LyondellBasell Industries AF S.C.A. (LyondellBasell) -- namely Lyondell Chemical Co., Equistar Chemicals L.P., and Millennium Chemicals Inc. -- to 'D' from 'CC'. This action followed the voluntary filings for Chapter 11 bankruptcy protection by these entities, along with other U.S. subsidiaries of LyondellBasell and a related German holding company on Jan. 6, 2009. The long-term rating on LyondellBasell, meanwhile, remains at 'SD', indicating a selective default. This is because LyondellBasell and its European subsidiaries (other than the German holding company previously referenced) are not currently in insolvency proceedings. Further, S&P understand that the company is current on its payments on its senior secured bank debt, as well as on its bonds due 2015 and its bonds due 2027 (the European bonds). In response to the many questions that have been raised by market participants regarding this rating action, S&P has prepared an FAQ article to clarify S&P's view of the effects of the debtor-in- possession financing package on the group's recovery ratings. The article should be read in conjunction with S&P's publication discussing the rating actions taken by Standard & Poor's on Jan. 7, 2009. =========== R U S S I A =========== EKO-STROY CJSC: Creditors Must File Claims by February 16 --------------------------------------------------------- Creditors of CJSC Eko-Stroy (TIN 5916015893, RVC 591601001, PSRN 1055905529393) (Construction) have until Feb. 16, 2009, to submit proofs of claims to: S. Permyakov Temporary Insolvency Manager Post User Box 9755 614112 Perm-112 Russia The Arbitration Court of Perm will convene on April 24, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. A50�18075/2008-B7. The Debtor can be reached at: CJSC Eko-Stroy Vostochnaya Str.55a Nytva 617000 Permskiy Russia KAPITAL-STROY LLC: Creditors Must File Claims by March 16 ---------------------------------------------------------------- Creditors of LLC Kapital-Stroy (TIN 6168006081)(Construction) have until March 16, 2009, to submit proofs of claims to: S. Shatalov Insolvency Manager Office 419 Menzhinskogo Str. 2L 344029 Rostov-on-Don Russia The Arbitration Court of Rostovskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A53-11854/2008-S1-8. The Debtor can be reached at: LLC Kapital-Stroy Profsoyuznaya Str. 134 Rostov-on-Don Russia KARBO-KHIM OJSC: Nizhegorodskaya Bankruptcy Hearing Set April 14 ---------------------------------------------------------------- The Arbitration Court of Nizhegorodskaya will convene at 3:30 a.m. on April 14, 2009, to hear bankruptcy supervision procedure on OJSC Karbo-Khim (Wood Charcoal). The case is docketed under Case No. A43-29797/2008. The Temporary Insolvency Manager is: O. Shelyakin Post User Box 6854 614068 Perm Russia Tel: 342-236-84-92 The Court is located at: The Arbitration Court of Nizhegorodskaya Building 9 Kremlin Nizhny Novgorod Russia The Debtor can be reached at: OJSC Karbo-Khim Lenina Str. 24 Syava Shakhunskogo 606903 Nizhegorodskaya Russia KARELSKIY SURIMI: Creditors Must File Claims by March 16 -------------------------------------------------------- Creditors of LLC Karelskiy Surimi Plant (Food Industry) (TIN 7801379680) have until March 16, 2009, to submit proofs of claims to: V. Yegorenkov Insolvency Manager Post User Box 49 Sedova Str. 23 192148 Saint-Petersburg Russia Tel/Fax: 328�44-81 The Arbitration Court of Saint-Petersburg commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56�11753/2008. The Debtor can be reached at: LLC Karelskiy Surimi Plant Room 9N Birzhevaya Liniya Str. 16a 199034 Saint-Petersburg Russia NOVYY DOM CJSC: Creditors Must File Claims by February 16 --------------------------------------------------------- Creditors of CJSC Novyy Dom (TIN 7224017035) (Construction) have until Feb. 16, 2009, to submit proofs of claims to: D. Seleznev Temporary Insolvency Manager Post User box 33 620041 Yekaterinburg Russia The Arbitration Court of Tumen will convene at 10:15 a.m. on March 31, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. A70-7605/3-2008. The Debtor can be reached at: CJSC Novyy Dom Sakko Str. 43 Tumen Russia PENOIZOL LLC: Creditors Must File Claims by February 16 ------------------------------------------------------- Creditors of LLC Penoizol (Heat- and Sound-Insulating Materials and Items Production) have until Feb. 16, 2009, to submit proofs of claims to: V. Kevarkov Insolvency Manager Apt. 15 Generalskaya Str. 12 620062 Yekaterinburg Russia The Arbitration Court of Chelyabinskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A76-7442/2008-55-121. The Debtor can be reached at: LLC Penoizol Postysheva Str. 2 454091 Chelyabinsk Russia RYAZANSKIY MACHINE: Creditors Must File Claims by March 16 ---------------------------------------------------------- Creditors of OJSC Ryazanskiy Machine Tool Plant have until March 16, 2009, to submit proofs of claims to: A. Khromov Insolvency Manager Barnaulskaya Str. 34 410049 Saratov Russia The Arbitration Court of Ryazanskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A54�1392/2008. The Debtor can be reached at: OJSC Ryazanskiy Machine Tool Plant Stankozavodskaya Str. 7 390042 Ryazan Russia SITRONICS JSC: Fitch Assigns 'B-' Senior Unsecured Rating --------------------------------------------------------- Fitch Ratings has assigned Concern Sitronics JSC's domestic bond issue, totaling RUB3 billion and with headline maturity of three years, a senior unsecured foreign currency rating of 'B-'. Sitronics is currently rated Long-term Issuer Default 'B-' (B minus) with a Negative Outlook. The bond constitutes senior unsecured obligations of Sitronics. The bond prospectus does not contain any financial or other covenants. Bondholders have an option to put the bond 18 months after the September 2007 placement date, which reduces the effective maturity of this bond to one-and-a-half years (March 2009). Sitronics' ratings continue to be underpinned by its leading position and established franchise within the Russian micro- electronics business. Following a disappointing performance during 2007, 2008 year-to-date results provided evidence of a rebound. The recently announced 50% slash of the 2009 capex budget and cost cutting initiatives should support cash flow generation. Furthermore Sitronics's status as a material subsidiary of Sistema Joint Stock Financial Corp.'s ('BB-' (BB minus)/Negative) is viewed positively provided that the parent will step in to offer financial assistance in case of need. The Negative Outlook reflects Sitronics' weakened credit profile and increased refinancing risk. Fitch notes that in December 2008 Sitronics secured a US$230 million one-year credit facility with State Corporation "Bank for Development and Foreign Economic Affairs" (Vnesheconombank) as part of the Russian state program aimed at supporting strategically important assets. Proceeds will be used to refinance loan facilities totaling US$200 million provided by Dresdner Bank AG, and other short-term borrowings. While the recent refinancing provided some respite from the sizable maturities falling in 4Q08-1Q09, Fitch will continue to closely monitor the company's efforts to secure external funding in the challenging capital markets environment. Sitronics is a leading provider of telecommunication solutions, including software, equipment and systems integration, IT solutions and microelectronic solutions in Russia and the Commonwealth of Independent States. It has a strong presence in Central and Eastern Europe and a growing presence in the Middle East and Africa. URAL-STROY-MEKHANIZATSIA: Creditors Must File Claims by Feb. 16 --------------------------------------------------------------- Creditors of LLC Ural-Stroy-Mekhanizatsiya Engineer-Constructor have until Feb. 16, 2009, to submit proofs of claims to: M. Yakovlev Temporary Insolvency Manager G.Zvezda Str. 13 614045 Perm Russia The Arbitration Court of Perm will convene at 10:00 a.m. on April 22, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. A50�18133/2008-B6. The Debtor can be reached at: LLC Ural-Stroy-Mekhanizatsiya Novosadovaya Str. 7 618404 Berezniki Russia UYSKIY MEAT: Creditors Must File Claims by March 16 --------------------------------------------------- Creditors of LLC Uyskiy Meat Works (TIN 7420011061, PSRN 1067420016487) have until March 16, 2009, to submit proofs of claims to: A. Lavrov Insolvency Manager Post User Box 406 Zlatoust 456219 Chelyabinskaya Russia The Arbitration Court of Chelyabinskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A76-6528/08-52-70. The Debtor can be reached at: LLC Uyskiy Meat Works Oktyabrskaya Str. 1 Uyskoe 456470 Chelyabinskaya Russia ===================== S W I T Z E R L A N D ===================== CALANIT LLC: Creditors Must File Proofs of Claim by February 5 -------------------------------------------------------------- Creditors owed money by LLC Calanit are requested to file their proofs of claim by Feb. 5, 2009, to: Dr. Martin L. Muller Liquidator, Advocacy Pestalozzi Rechtsanwalte Lowenstrasse 1 8001 Zurich 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. EASTERN GATE: Deadline to File Proofs of Claim Set February 4 -------------------------------------------------------------- Creditors owed money by JSC Eastern Gate Finance are requested to file their proofs of claim by Feb. 4, 2009, to: Blegistrasse 5 6340 Baar Switzerland The company is currently undergoing liquidation in Baar. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 4, 2008. FUHRUNG AND ABSATZ: Creditors Have Until Feb. 5 to File Claims -------------------------------------------------------------- Creditors owed money by JSC Fuhrung und Absatz are requested to file their proofs of claim by Feb. 5, 2009, to: Verena Kunz Liquidator Foehrenweg 9 6343 Rotkreuz Switzerland The company is currently undergoing liquidation in Hunenberg. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 1, 2008. PISTAG VERWALTUNG: Proof of Claim Filing Deadline Set Jan. 31 ---------------------- -------------------------------------- Creditors owed money by JSC Pistag Verwaltung are requested to file their proofs of claim by Jan. 31, 2009, to: LLC Kolb Treuhand Dorfstrasse 12 8505 Dettighofen Switzerland The company is currently undergoing liquidation in Wittenbach. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 16, 2008. RENTRAP JSC: Creditors' Proofs of Claim Due by January 31 --------------------------------------------------------- Creditors owed money by JSC Rentrap are requested to file their proofs of claim by Jan. 31, 2009, to: JSC Interconsulta Nordstrasse 190 8037 Zurich 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. SIDUS CAPITAL: February 5 Set as Deadline to File Claims -------------------------------------------------------- Creditors owed money by JSC Sidus Capital are requested to file their proofs of claim by Feb. 5, 2009, to: Matthias Trinler Liquidator, T-Rex Trinler Consulting Bosch 41 6331 Hunenberg Switzerland The company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Nov. 10, 2008. SIMPLE SOLUTIONS: Creditors Must File Proofs of Claim by Feb. 5 --------------------------------------------------------------- Creditors owed money by LLC Simple Solutions are requested to file their proofs of claim by Feb. 5, 2009, to: Jost Wafler Kanalweg 11 3380 Wangen an der Aare Switzerland The company is currently undergoing liquidation in Biel. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 5, 2008. ============= U K R A I N E ============= ATLANT-SERVICE-GROUP: Creditors Must File Claims by February 7 -------------------------------------------------------------- Creditors of LLC Atlant-Service-Group (EDRPOU 35379944) have until Feb. 7, 2009, to submit proofs of claim to: LLC Bionis Advertising Liquidator Melnikov Str. 12 04050 Kiev Ukraine The Arbitration Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 29, 2008. The case is docketed as 15/81-b. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Atlant-Service-Group Apt. 1 40 years of October Avenue, 120 Kiev Ukraine AUTO FOB: Creditors Must File Claims by February 7 -------------------------------------------------- Creditors of LLC Auto FOB Holding (EDRPOU 33632103) have until Feb. 7, 2009, to submit proofs of claim to: Mr. V. Shevchenko Liquidator Apt. 199 Kniazhy Zaton Str. 12 02095 Kiev Ukraine The Arbitration Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 25, 2008. The case is docketed as 44/469-b. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Auto FOB Holding Geophysicists lane, 12 02068 Kiev Ukraine BPK LLC: Creditors Must File Claims by February 7 ------------------------------------------------- Creditors of LLC Trading Company BPK (EDRPOU 35531623) have until Feb. 7, 2009, to submit proofs of claim to: Mr. Alexander Ocheretiany Liquidator Apt. 7/4 Stalsky Str. 26 02139 Kiev Ukraine The Arbitration Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 29, 2008. The case is docketed as 15/80-b. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Trading Company BPK Vanda Vasilevskaya Str. 18 04116 Kiev Ukraine KREDITPROMBANK: Fitch Downgrades Issuer Default Rating to 'CCC' --------------------------------------------------------------- Fitch Ratings has downgraded the Long-term Issuer Default Ratings of four Ukrainian banks: Kreditprombank, Ukrgasbank and Vseukrainsky Aksionerny Bank to 'CCC' from 'B-' (B minus) and Rodovid Bank to 'CC' from 'CCC'. The agency has also downgraded the National Long-term rating of Bank Diamant and the Individual rating of Swedbank (Ukraine). At the same time, the ratings of seven other Ukrainian banks - Privatbank, First Ukrainian International Bank, Bank Credit Dnepr, Bank Khreschatyk, Industrialbank, Pivdennyi Bank and Bank Forum - are affirmed. The Outlooks on the Long-term IDRs (where assigned) of all of the above mentioned banks are Negative. The rating actions follow a review of all 11 private, domestically-owned Ukrainian banks, as well as two foreign-owned institutions: Swedbank (Ukraine) and Bank Forum. The downgrades reflect the heightened liquidity and asset quality risks and greater pressure on capital which Ukrainian banks have faced as a result of the sharp depreciation of the UAH in Q408, as well as the weaker outlook for the Ukrainian economy. In Fitch's view, the downgraded banks are most exposed to these risks in light of the growth-focused strategies pursued in recent years and the deterioration already evident in asset quality, capital and/or liquidity metrics at those institutions. The affirmations of BCD, Khreschatyk, Industrialbank and Pivdennyi take into account those banks' niche regional franchises and generally somewhat stronger (although still potentially vulnerable) capital positions, while the affirmations of Privatbank and FUIB reflect those institutions' greater franchise strength, more significant loss absorption capacity and better- than-average (for the Ukrainian market) risk management. At the same time, the Negative Outlooks on the ratings of all of the domestically-owned banks reflect the potential for further downgrades, including of banks which have been affirmed, as the tough operating environment continues to negatively impact banks' asset quality, capital and liquidity. Fitch will publish separate commentaries on each of the banks mentioned in this announcement. In addition, Fitch will in the near future review the ratings of Ukrainian state-owned banks and foreign-owned banks not covered in this announcement, focusing in particular on their Individual ratings. Rating actions: CJSC Privatbank -- Long-term IDR: affirmed at 'B'; Outlook Negative -- Senior unsecured debt: Long-term rating affirmed at 'B', Recovery Rating affirmed at 'RR4' -- Short-term IDR: affirmed at 'B' -- Individual rating: affirmed at 'D' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'B-' (B minus) First Ukrainian International Bank -- Long-term IDR: affirmed at 'B'; Outlook Negative -- Senior unsecured debt: Long-term rating affirmed at 'B', Recovery Rating affirmed at 'RR4' -- Short-term IDR: affirmed at 'B' -- Individual rating: affirmed at 'D' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' -- National Long-term rating: affirmed at 'A(ukr)'; Outlook Negative Bank Credit Dnepr -- Long-term IDR: affirmed at 'B-' (B minus); Outlook Negative; -- Short-term IDR: affirmed at 'B' -- Individual rating: affirmed at 'D/E' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' -- National Long-term rating: affirmed at 'BBB-(ukr)' (BBB minus (ukr)); Outlook Negative Bank Khreschatyk -- Long-term foreign currency IDR: affirmed at 'B-' (B minus); Outlook Negative -- Short-term foreign currency IDR: affirmed at 'B' -- Long-term local currency IDR: affirmed at 'B-' (B minus); Outlook Negative -- Individual rating: affirmed at 'D/E' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' -- National Long-term rating: affirmed at 'BBB-(ukr)' (BBB minus (ukr)); Outlook Negative Industrialbank -- Long-term IDR: affirmed at 'B-' (B minus); Outlook Negative -- Short-term IDR: affirmed at 'B' -- Individual rating: affirmed at 'D/E' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' Pivdennyi Bank -- Long-term IDR: affirmed at 'B-' (B minus); Outlook Negative -- Senior unsecured debt: Long-term rating affirmed at 'B-' (B minus), Recovery Rating affirmed at 'RR4' -- Short-term IDR: affirmed at 'B' -- Individual rating: affirmed at 'D/E' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' Kreditprombank -- Long-term IDR: downgraded to 'CCC' from 'B-' (B minus); Outlook Negative -- Short-term IDR: downgraded to 'C' from 'B' -- Individual rating: downgraded to 'E' from 'D/E' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' -- National Long-term rating: downgraded to 'BB(ukr)' from 'BBB- (ukr)' (BBB minus (ukr)); Outlook Negative OJSC Ukrgasbank -- Long-term IDR: downgraded to 'CCC' from 'B-' (B minus); Outlook Negative -- Short-term IDR: downgraded to 'C' from 'B' -- Individual rating: downgraded to 'E' from 'D/E' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' -- National Long-term rating: downgraded to 'BB(ukr)' from 'BBB- (ukr)' (BBB minus (ukr)); Outlook Negative Vseukrainsky Aksionerny Bank (VAB) -- Long-term IDR: downgraded to 'CCC' from 'B-' (B minus); Outlook Negative -- Senior unsecured debt: downgraded to 'CCC' from 'B-', Recovery Rating affirmed at 'RR4' -- Short-term IDR: downgraded to 'C' from 'B' -- Individual rating: downgraded to 'E' from 'D/E' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' -- National Long-term rating: downgraded to 'BB-(ukr)' (BB minus (ukr)) from 'BBB- (ukr)' (BBB minus (ukr)); Outlook Negative Rodovid Bank -- Long-term IDR: downgraded to 'CC' from 'CCC'; Rating Watch Negative removed; Negative Outlook assigned -- Short-term IDR: affirmed at 'C'; Rating Watch Negative removed -- Individual rating: affirmed at 'E' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' -- National Long-term rating: downgraded to 'B'(ukr) from 'BB- (ukr)' (BB minus (ukr)); Rating Watch Negative removed; Negative Outlook assigned Bank Diamant -- National Long-term rating: downgraded to 'B+'(ukr) from 'BB- (ukr)' (BB minus (ukr)); Outlook Negative Bank Forum -- Long-term foreign currency IDR: affirmed at 'B+'; Outlook Negative -- Senior unsecured debt: Long-term rating affirmed at 'B+', Recovery Rating affirmed at 'RR4' -- Long-term local currency IDR: affirmed at 'BB-' (BB minus); Outlook Negative -- Short-term foreign currency IDR: affirmed at 'B' -- Individual rating: affirmed at 'D/E' -- Support rating: affirmed at '4' -- National Long-term rating affirmed at 'AAA(ukr)'; Outlook Stable OJSC Swedbank (Ukraine) -- Long-term foreign currency IDR: affirmed at 'B+'; Outlook Negative -- Long-term local currency IDR: affirmed at 'BB-' (BB minus); Outlook Negative -- Short-term foreign currency IDR: affirmed at 'B' -- Individual rating: downgraded to 'E' from 'D/E' -- Support rating: affirmed at '4' -- National Long-term rating: affirmed at 'AAA'(ukr)'; Outlook Stable RADAMANT GROUP: Creditors Must File Claims by February 7 -------------------------------------------------------- Creditors of LLC Radamant Group (EDRPOU 35644524) have until Feb. 7, 2009, to submit proofs of claim to: LLC Ukrainian Building Reserve-O Liquidator Artem Str. 37-41 04053 Kiev Ukraine The Arbitration Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 29, 2008. The case is docketed as 15/82-b. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Radamant Group Apt. 1 Burmistenko Str. 11 03040 Kiev Ukraine RODOVID BANK: Fitch Cuts Issuer Default Rating to 'CC' from 'CCC' ----------------------------------------------------------------- Fitch Ratings has downgraded the Long-term Issuer Default Ratings of four Ukrainian banks: Kreditprombank, Ukrgasbank and Vseukrainsky Aksionerny Bank to 'CCC' from 'B-' (B minus) and Rodovid Bank to 'CC' from 'CCC'. The agency has also downgraded the National Long-term rating of Bank Diamant and the Individual rating of Swedbank (Ukraine). At the same time, the ratings of seven other Ukrainian banks - Privatbank, First Ukrainian International Bank, Bank Credit Dnepr, Bank Khreschatyk, Industrialbank, Pivdennyi Bank and Bank Forum - are affirmed. The Outlooks on the Long-term IDRs (where assigned) of all of the above mentioned banks are Negative. The rating actions follow a review of all 11 private, domestically-owned Ukrainian banks, as well as two foreign-owned institutions: Swedbank (Ukraine) and Bank Forum. The downgrades reflect the heightened liquidity and asset quality risks and greater pressure on capital which Ukrainian banks have faced as a result of the sharp depreciation of the UAH in Q408, as well as the weaker outlook for the Ukrainian economy. In Fitch's view, the downgraded banks are most exposed to these risks in light of the growth-focused strategies pursued in recent years and the deterioration already evident in asset quality, capital and/or liquidity metrics at those institutions. The affirmations of BCD, Khreschatyk, Industrialbank and Pivdennyi take into account those banks' niche regional franchises and generally somewhat stronger (although still potentially vulnerable) capital positions, while the affirmations of Privatbank and FUIB reflect those institutions' greater franchise strength, more significant loss absorption capacity and better- than-average (for the Ukrainian market) risk management. At the same time, the Negative Outlooks on the ratings of all of the domestically-owned banks reflect the potential for further downgrades, including of banks which have been affirmed, as the tough operating environment continues to negatively impact banks' asset quality, capital and liquidity. Fitch will publish separate commentaries on each of the banks mentioned in this announcement. In addition, Fitch will in the near future review the ratings of Ukrainian state-owned banks and foreign-owned banks not covered in this announcement, focusing in particular on their Individual ratings. Rating actions: CJSC Privatbank -- Long-term IDR: affirmed at 'B'; Outlook Negative -- Senior unsecured debt: Long-term rating affirmed at 'B', Recovery Rating affirmed at 'RR4' -- Short-term IDR: affirmed at 'B' -- Individual rating: affirmed at 'D' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'B-' (B minus) First Ukrainian International Bank -- Long-term IDR: affirmed at 'B'; Outlook Negative -- Senior unsecured debt: Long-term rating affirmed at 'B', Recovery Rating affirmed at 'RR4' -- Short-term IDR: affirmed at 'B' -- Individual rating: affirmed at 'D' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' -- National Long-term rating: affirmed at 'A(ukr)'; Outlook Negative Bank Credit Dnepr -- Long-term IDR: affirmed at 'B-' (B minus); Outlook Negative; -- Short-term IDR: affirmed at 'B' -- Individual rating: affirmed at 'D/E' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' -- National Long-term rating: affirmed at 'BBB-(ukr)' (BBB minus (ukr)); Outlook Negative Bank Khreschatyk -- Long-term foreign currency IDR: affirmed at 'B-' (B minus); Outlook Negative -- Short-term foreign currency IDR: affirmed at 'B' -- Long-term local currency IDR: affirmed at 'B-' (B minus); Outlook Negative -- Individual rating: affirmed at 'D/E' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' -- National Long-term rating: affirmed at 'BBB-(ukr)' (BBB minus (ukr)); Outlook Negative Industrialbank -- Long-term IDR: affirmed at 'B-' (B minus); Outlook Negative -- Short-term IDR: affirmed at 'B' -- Individual rating: affirmed at 'D/E' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' Pivdennyi Bank -- Long-term IDR: affirmed at 'B-' (B minus); Outlook Negative -- Senior unsecured debt: Long-term rating affirmed at 'B-' (B minus), Recovery Rating affirmed at 'RR4' -- Short-term IDR: affirmed at 'B' -- Individual rating: affirmed at 'D/E' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' Kreditprombank -- Long-term IDR: downgraded to 'CCC' from 'B-' (B minus); Outlook Negative -- Short-term IDR: downgraded to 'C' from 'B' -- Individual rating: downgraded to 'E' from 'D/E' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' -- National Long-term rating: downgraded to 'BB(ukr)' from 'BBB- (ukr)' (BBB minus (ukr)); Outlook Negative OJSC Ukrgasbank -- Long-term IDR: downgraded to 'CCC' from 'B-' (B minus); Outlook Negative -- Short-term IDR: downgraded to 'C' from 'B' -- Individual rating: downgraded to 'E' from 'D/E' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' -- National Long-term rating: downgraded to 'BB(ukr)' from 'BBB- (ukr)' (BBB minus (ukr)); Outlook Negative Vseukrainsky Aksionerny Bank (VAB) -- Long-term IDR: downgraded to 'CCC' from 'B-' (B minus); Outlook Negative -- Senior unsecured debt: downgraded to 'CCC' from 'B-', Recovery Rating affirmed at 'RR4' -- Short-term IDR: downgraded to 'C' from 'B' -- Individual rating: downgraded to 'E' from 'D/E' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' -- National Long-term rating: downgraded to 'BB-(ukr)' (BB minus (ukr)) from 'BBB- (ukr)' (BBB minus (ukr)); Outlook Negative Rodovid Bank -- Long-term IDR: downgraded to 'CC' from 'CCC'; Rating Watch Negative removed; Negative Outlook assigned -- Short-term IDR: affirmed at 'C'; Rating Watch Negative removed -- Individual rating: affirmed at 'E' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' -- National Long-term rating: downgraded to 'B'(ukr) from 'BB- (ukr)' (BB minus (ukr)); Rating Watch Negative removed; Negative Outlook assigned Bank Diamant -- National Long-term rating: downgraded to 'B+'(ukr) from 'BB- (ukr)' (BB minus (ukr)); Outlook Negative Bank Forum -- Long-term foreign currency IDR: affirmed at 'B+'; Outlook Negative -- Senior unsecured debt: Long-term rating affirmed at 'B+', Recovery Rating affirmed at 'RR4' -- Long-term local currency IDR: affirmed at 'BB-' (BB minus); Outlook Negative -- Short-term foreign currency IDR: affirmed at 'B' -- Individual rating: affirmed at 'D/E' -- Support rating: affirmed at '4' -- National Long-term rating affirmed at 'AAA(ukr)'; Outlook Stable OJSC Swedbank (Ukraine) -- Long-term foreign currency IDR: affirmed at 'B+'; Outlook Negative -- Long-term local currency IDR: affirmed at 'BB-' (BB minus); Outlook Negative -- Short-term foreign currency IDR: affirmed at 'B' -- Individual rating: downgraded to 'E' from 'D/E' -- Support rating: affirmed at '4' -- National Long-term rating: affirmed at 'AAA'(ukr)'; Outlook Stable SLOBOZHANSCHINA AGRICULTURAL: Claims Deadline Set February 7 ------------------------------------------------------------ Creditors of LLC Slobozhanschina Agricultural Investment Company (EDRPOU 33389840) have until Feb. 7, 2009, to submit proofs of claim to: Mr. Petro Korobko Temporary Insolvency Manager Office 301 20 years of Victory Str. 7 40021 Sumy Ukraine Tel: 8(0542)783830 The Arbitration Court of Sumy commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 1, 2008. The case is docketed as 6/239-08. The Economic Court of Sumy Shevchenko Avenue 18/1 40030 Sumy Ukraine The Debtor can be reached at: LLC Slobozhanschina Agricultural Investment Company Newspaper Pravda Str. 19/106 40011 Sumy Ukraine TMTMET LLC: Creditors Must File Claims by February 7 ---------------------------------------------------- Creditors of LLC TMTMET (EDRPOU 33631487) have until Feb. 7, 2009, to submit proofs of claim to: Mr. V. Shevchenko Liquidator Apt. 199 Kniazhy Zaton Str. 12 02095 Kiev Ukraine The Arbitration Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 25, 2008. The case is docketed as 44/470-b. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC TMTMET A. Akhmatova Str. 13A 01033 Kiev Ukraine UKRGASBANK: Fitch Downgrades Issuer Default Rating to 'CCC' ----------------------------------------------------------- Fitch Ratings has downgraded the Long-term Issuer Default Ratings of four Ukrainian banks: Kreditprombank, Ukrgasbank and Vseukrainsky Aksionerny Bank to 'CCC' from 'B-' (B minus) and Rodovid Bank to 'CC' from 'CCC'. The agency has also downgraded the National Long-term rating of Bank Diamant and the Individual rating of Swedbank (Ukraine). At the same time, the ratings of seven other Ukrainian banks - Privatbank, First Ukrainian International Bank, Bank Credit Dnepr, Bank Khreschatyk, Industrialbank, Pivdennyi Bank and Bank Forum - are affirmed. The Outlooks on the Long-term IDRs (where assigned) of all of the above mentioned banks are Negative. The rating actions follow a review of all 11 private, domestically-owned Ukrainian banks, as well as two foreign-owned institutions: Swedbank (Ukraine) and Bank Forum. The downgrades reflect the heightened liquidity and asset quality risks and greater pressure on capital which Ukrainian banks have faced as a result of the sharp depreciation of the UAH in Q408, as well as the weaker outlook for the Ukrainian economy. In Fitch's view, the downgraded banks are most exposed to these risks in light of the growth-focused strategies pursued in recent years and the deterioration already evident in asset quality, capital and/or liquidity metrics at those institutions. The affirmations of BCD, Khreschatyk, Industrialbank and Pivdennyi take into account those banks' niche regional franchises and generally somewhat stronger (although still potentially vulnerable) capital positions, while the affirmations of Privatbank and FUIB reflect those institutions' greater franchise strength, more significant loss absorption capacity and better- than-average (for the Ukrainian market) risk management. At the same time, the Negative Outlooks on the ratings of all of the domestically-owned banks reflect the potential for further downgrades, including of banks which have been affirmed, as the tough operating environment continues to negatively impact banks' asset quality, capital and liquidity. Fitch will publish separate commentaries on each of the banks mentioned in this announcement. In addition, Fitch will in the near future review the ratings of Ukrainian state-owned banks and foreign-owned banks not covered in this announcement, focusing in particular on their Individual ratings. Rating actions: CJSC Privatbank -- Long-term IDR: affirmed at 'B'; Outlook Negative -- Senior unsecured debt: Long-term rating affirmed at 'B', Recovery Rating affirmed at 'RR4' -- Short-term IDR: affirmed at 'B' -- Individual rating: affirmed at 'D' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'B-' (B minus) First Ukrainian International Bank -- Long-term IDR: affirmed at 'B'; Outlook Negative -- Senior unsecured debt: Long-term rating affirmed at 'B', Recovery Rating affirmed at 'RR4' -- Short-term IDR: affirmed at 'B' -- Individual rating: affirmed at 'D' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' -- National Long-term rating: affirmed at 'A(ukr)'; Outlook Negative Bank Credit Dnepr -- Long-term IDR: affirmed at 'B-' (B minus); Outlook Negative; -- Short-term IDR: affirmed at 'B' -- Individual rating: affirmed at 'D/E' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' -- National Long-term rating: affirmed at 'BBB-(ukr)' (BBB minus (ukr)); Outlook Negative Bank Khreschatyk -- Long-term foreign currency IDR: affirmed at 'B-' (B minus); Outlook Negative -- Short-term foreign currency IDR: affirmed at 'B' -- Long-term local currency IDR: affirmed at 'B-' (B minus); Outlook Negative -- Individual rating: affirmed at 'D/E' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' -- National Long-term rating: affirmed at 'BBB-(ukr)' (BBB minus (ukr)); Outlook Negative Industrialbank -- Long-term IDR: affirmed at 'B-' (B minus); Outlook Negative -- Short-term IDR: affirmed at 'B' -- Individual rating: affirmed at 'D/E' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' Pivdennyi Bank -- Long-term IDR: affirmed at 'B-' (B minus); Outlook Negative -- Senior unsecured debt: Long-term rating affirmed at 'B-' (B minus), Recovery Rating affirmed at 'RR4' -- Short-term IDR: affirmed at 'B' -- Individual rating: affirmed at 'D/E' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' Kreditprombank -- Long-term IDR: downgraded to 'CCC' from 'B-' (B minus); Outlook Negative -- Short-term IDR: downgraded to 'C' from 'B' -- Individual rating: downgraded to 'E' from 'D/E' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' -- National Long-term rating: downgraded to 'BB(ukr)' from 'BBB- (ukr)' (BBB minus (ukr)); Outlook Negative OJSC Ukrgasbank -- Long-term IDR: downgraded to 'CCC' from 'B-' (B minus); Outlook Negative -- Short-term IDR: downgraded to 'C' from 'B' -- Individual rating: downgraded to 'E' from 'D/E' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' -- National Long-term rating: downgraded to 'BB(ukr)' from 'BBB- (ukr)' (BBB minus (ukr)); Outlook Negative Vseukrainsky Aksionerny Bank (VAB) -- Long-term IDR: downgraded to 'CCC' from 'B-' (B minus); Outlook Negative -- Senior unsecured debt: downgraded to 'CCC' from 'B-', Recovery Rating affirmed at 'RR4' -- Short-term IDR: downgraded to 'C' from 'B' -- Individual rating: downgraded to 'E' from 'D/E' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' -- National Long-term rating: downgraded to 'BB-(ukr)' (BB minus (ukr)) from 'BBB- (ukr)' (BBB minus (ukr)); Outlook Negative Rodovid Bank -- Long-term IDR: downgraded to 'CC' from 'CCC'; Rating Watch Negative removed; Negative Outlook assigned -- Short-term IDR: affirmed at 'C'; Rating Watch Negative removed -- Individual rating: affirmed at 'E' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' -- National Long-term rating: downgraded to 'B'(ukr) from 'BB- (ukr)' (BB minus (ukr)); Rating Watch Negative removed; Negative Outlook assigned Bank Diamant -- National Long-term rating: downgraded to 'B+'(ukr) from 'BB- (ukr)' (BB minus (ukr)); Outlook Negative Bank Forum -- Long-term foreign currency IDR: affirmed at 'B+'; Outlook Negative -- Senior unsecured debt: Long-term rating affirmed at 'B+', Recovery Rating affirmed at 'RR4' -- Long-term local currency IDR: affirmed at 'BB-' (BB minus); Outlook Negative -- Short-term foreign currency IDR: affirmed at 'B' -- Individual rating: affirmed at 'D/E' -- Support rating: affirmed at '4' -- National Long-term rating affirmed at 'AAA(ukr)'; Outlook Stable OJSC Swedbank (Ukraine) -- Long-term foreign currency IDR: affirmed at 'B+'; Outlook Negative -- Long-term local currency IDR: affirmed at 'BB-' (BB minus); Outlook Negative -- Short-term foreign currency IDR: affirmed at 'B' -- Individual rating: downgraded to 'E' from 'D/E' -- Support rating: affirmed at '4' -- National Long-term rating: affirmed at 'AAA'(ukr)'; Outlook Stable VSEUKRAINSKY AKSIONERNY: Fitch Cuts Issuer Default Rating to 'CCC' ------------------------------------------------------------------ Fitch Ratings has downgraded the Long-term Issuer Default Ratings of four Ukrainian banks: Kreditprombank, Ukrgasbank and Vseukrainsky Aksionerny Bank to 'CCC' from 'B-' (B minus) and Rodovid Bank to 'CC' from 'CCC'. The agency has also downgraded the National Long-term rating of Bank Diamant and the Individual rating of Swedbank (Ukraine). At the same time, the ratings of seven other Ukrainian banks - Privatbank, First Ukrainian International Bank, Bank Credit Dnepr, Bank Khreschatyk, Industrialbank, Pivdennyi Bank and Bank Forum - are affirmed. The Outlooks on the Long-term IDRs (where assigned) of all of the above mentioned banks are Negative. The rating actions follow a review of all 11 private, domestically-owned Ukrainian banks, as well as two foreign-owned institutions: Swedbank (Ukraine) and Bank Forum. The downgrades reflect the heightened liquidity and asset quality risks and greater pressure on capital which Ukrainian banks have faced as a result of the sharp depreciation of the UAH in Q408, as well as the weaker outlook for the Ukrainian economy. In Fitch's view, the downgraded banks are most exposed to these risks in light of the growth-focused strategies pursued in recent years and the deterioration already evident in asset quality, capital and/or liquidity metrics at those institutions. The affirmations of BCD, Khreschatyk, Industrialbank and Pivdennyi take into account those banks' niche regional franchises and generally somewhat stronger (although still potentially vulnerable) capital positions, while the affirmations of Privatbank and FUIB reflect those institutions' greater franchise strength, more significant loss absorption capacity and better- than-average (for the Ukrainian market) risk management. At the same time, the Negative Outlooks on the ratings of all of the domestically-owned banks reflect the potential for further downgrades, including of banks which have been affirmed, as the tough operating environment continues to negatively impact banks' asset quality, capital and liquidity. Fitch will publish separate commentaries on each of the banks mentioned in this announcement. In addition, Fitch will in the near future review the ratings of Ukrainian state-owned banks and foreign-owned banks not covered in this announcement, focusing in particular on their Individual ratings. Rating actions: CJSC Privatbank -- Long-term IDR: affirmed at 'B'; Outlook Negative -- Senior unsecured debt: Long-term rating affirmed at 'B', Recovery Rating affirmed at 'RR4' -- Short-term IDR: affirmed at 'B' -- Individual rating: affirmed at 'D' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'B-' (B minus) First Ukrainian International Bank -- Long-term IDR: affirmed at 'B'; Outlook Negative -- Senior unsecured debt: Long-term rating affirmed at 'B', Recovery Rating affirmed at 'RR4' -- Short-term IDR: affirmed at 'B' -- Individual rating: affirmed at 'D' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' -- National Long-term rating: affirmed at 'A(ukr)'; Outlook Negative Bank Credit Dnepr -- Long-term IDR: affirmed at 'B-' (B minus); Outlook Negative; -- Short-term IDR: affirmed at 'B' -- Individual rating: affirmed at 'D/E' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' -- National Long-term rating: affirmed at 'BBB-(ukr)' (BBB minus (ukr)); Outlook Negative Bank Khreschatyk -- Long-term foreign currency IDR: affirmed at 'B-' (B minus); Outlook Negative -- Short-term foreign currency IDR: affirmed at 'B' -- Long-term local currency IDR: affirmed at 'B-' (B minus); Outlook Negative -- Individual rating: affirmed at 'D/E' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' -- National Long-term rating: affirmed at 'BBB-(ukr)' (BBB minus (ukr)); Outlook Negative Industrialbank -- Long-term IDR: affirmed at 'B-' (B minus); Outlook Negative -- Short-term IDR: affirmed at 'B' -- Individual rating: affirmed at 'D/E' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' Pivdennyi Bank -- Long-term IDR: affirmed at 'B-' (B minus); Outlook Negative -- Senior unsecured debt: Long-term rating affirmed at 'B-' (B minus), Recovery Rating affirmed at 'RR4' -- Short-term IDR: affirmed at 'B' -- Individual rating: affirmed at 'D/E' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' Kreditprombank -- Long-term IDR: downgraded to 'CCC' from 'B-' (B minus); Outlook Negative -- Short-term IDR: downgraded to 'C' from 'B' -- Individual rating: downgraded to 'E' from 'D/E' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' -- National Long-term rating: downgraded to 'BB(ukr)' from 'BBB- (ukr)' (BBB minus (ukr)); Outlook Negative OJSC Ukrgasbank -- Long-term IDR: downgraded to 'CCC' from 'B-' (B minus); Outlook Negative -- Short-term IDR: downgraded to 'C' from 'B' -- Individual rating: downgraded to 'E' from 'D/E' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' -- National Long-term rating: downgraded to 'BB(ukr)' from 'BBB- (ukr)' (BBB minus (ukr)); Outlook Negative Vseukrainsky Aksionerny Bank (VAB) -- Long-term IDR: downgraded to 'CCC' from 'B-' (B minus); Outlook Negative -- Senior unsecured debt: downgraded to 'CCC' from 'B-', Recovery Rating affirmed at 'RR4' -- Short-term IDR: downgraded to 'C' from 'B' -- Individual rating: downgraded to 'E' from 'D/E' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' -- National Long-term rating: downgraded to 'BB-(ukr)' (BB minus (ukr)) from 'BBB- (ukr)' (BBB minus (ukr)); Outlook Negative Rodovid Bank -- Long-term IDR: downgraded to 'CC' from 'CCC'; Rating Watch Negative removed; Negative Outlook assigned -- Short-term IDR: affirmed at 'C'; Rating Watch Negative removed -- Individual rating: affirmed at 'E' -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' -- National Long-term rating: downgraded to 'B'(ukr) from 'BB- (ukr)' (BB minus (ukr)); Rating Watch Negative removed; Negative Outlook assigned Bank Diamant -- National Long-term rating: downgraded to 'B+'(ukr) from 'BB- (ukr)' (BB minus (ukr)); Outlook Negative Bank Forum -- Long-term foreign currency IDR: affirmed at 'B+'; Outlook Negative -- Senior unsecured debt: Long-term rating affirmed at 'B+', Recovery Rating affirmed at 'RR4' -- Long-term local currency IDR: affirmed at 'BB-' (BB minus); Outlook Negative -- Short-term foreign currency IDR: affirmed at 'B' -- Individual rating: affirmed at 'D/E' -- Support rating: affirmed at '4' -- National Long-term rating affirmed at 'AAA(ukr)'; Outlook Stable OJSC Swedbank (Ukraine) -- Long-term foreign currency IDR: affirmed at 'B+'; Outlook Negative -- Long-term local currency IDR: affirmed at 'BB-' (BB minus); Outlook Negative -- Short-term foreign currency IDR: affirmed at 'B' -- Individual rating: downgraded to 'E' from 'D/E' -- Support rating: affirmed at '4' -- National Long-term rating: affirmed at 'AAA'(ukr)'; Outlook Stable * UKRAINE: State Debt Increased in the Past Two Months ------------------------------------------------------ Ukraine's total state debt increased in November and December last year, Bloomberg News reports citing the country's Finance Ministry. In a statement, the report relates the Ukraine Finance Ministry said total state debt increased in November by 33 percent to US$22.1 billion from US$16.6 billion the previous month. In December, the total debt increased by 9 percent to US$24.1 billion from November, according to the Ministry's statement. Ukraine's total state debt in 2008 increased by 37 percent to US$24.1 billion from US$17.6 billion in 2007, the statement cited by Bloomberg News said. According to Bloomberg News, the government initially targeted a budget deficit of UAH18.8 billion (US$2.34 billion) or about 2 percent of gross domestic product in 2008. It later cut the gap below 1 percent of gross domestic product, meeting an agreement with the International Monetary Fund which approved a US$16.4 billion loan to Ukraine to help stabilize the economy, the report adds. =========================== U N I T E D K I N G D O M =========================== ALBA 2007-1: S&P Downgrades Rating on Class E Notes to 'BB' ----------------------------------------------------------- Standard & Poor's Ratings Services took various rating actions on notes issued by ALBA 2007-1 PLC. Specifically, the ratings on: -- The class B, C, D, and E notes were lowered and kept on CreditWatch negative; -- The class A2 and A3 notes were affirmed and kept on CreditWatch negative; -- The class A1a and A1b notes were affirmed and removed from CreditWatch negative; and -- The rating on the MERCs was affirmed. On Oct. 10, 2008, S&P placed all the notes in this transaction on CreditWatch negative. These CreditWatch placements were due to the loss of the liquidity facility after the renewal notice was not delivered under the terms of the liquidity facility agreement and the liquidity facility expired on or about June 17, 2008. Today's downgrades of the class B, C, D, and E notes follow deteriorating collateral performance and the expectation of increasing losses. The fall in U.K. house prices and the effect of depressed sale prices on repossessions has led to significantly increased losses and loss severities. The reserve fund is currently 64.48% of its required amount after three consecutive reserve fund draws. Cumulative losses increased to 0.57% in December 2008 from 0.22% in September. The current loss severity is 34.08% and S&P expects this to increase in 2009, causing further reserve fund draws. S&P has affirmed the ratings on the class A1a and A1b notes because they no longer rely on the liquidity facility in order to pass S&P's 'AAA' stress scenario. At the same time, ratings on all other classes remain on CreditWatch negative due to the continuing absence of a liquidity facility. S&P understand that the issuer is currently in negotiations to find a replacement liquidity facility provider. Ratings List ALBA 2007 - 1 PLC GBP841 Million and EUR190 Million Mortgage-Backed Floating-Rate Notes Ratings Lowered and Kept on CreditWatch Negative Rating ------ Class To From ----- -- ---- B AA/Watch Neg AAA/Watch Neg C A/Watch Neg AA/Watch Neg D BBB/Watch Neg A/Watch Neg E BB/Watch Neg BBB/Watch Neg Ratings Affirmed and Kept on CreditWatch Negative Class Rating ----- ------ A2 AAA/Watch Neg A3 AAA/Watch Neg Ratings Affirmed and Removed from CreditWatch Negative Rating ------ Class To From ----- -- ---- A1a AAA AAA/Watch Neg A1b AAA AAA/Watch Neg Rating Affirmed Class Rating ----- ------ MERCs AAA ARGON CAPITAL: S&P Corrects Ratings on Preference Shares -------------------------------------------------------- Standard & Poor's Ratings Services corrected errors relating to two pass-through securities linked to preference shares of Lloyds Banking Group PLC (LBG; A+/Negative/A-1) and The Royal Bank of Scotland Group PLC (RBSG; A/Stable/A-1), respectively. The issuers of the securities are Saphir Finance PLC in the case of the LBG-related issue, and Argon Capital PLC in the case of the RBSG-related issue. The ratings on the underlying LBG and RBSG preference shares were lowered on Jan. 14, 2009, and Jan. 19, 2009, respectively, in line with the ratings on their other junior subordinated issues. However, due to administrative errors, the ratings on the Saphir and Argon pass-through securities were not lowered on these dates. S&P has now corrected these errors by lowering the rating on the Saphir securities linked to LBG preference shares to 'A-' from 'A', and by lowering the rating on the Argon securities linked to RBSG preference shares to 'BB' from 'BBB+'. The 'BB' rating on the Argon securities is placed on CreditWatch with negative implications. The corrected ratings are in line with LBG's and RBSG's other junior subordinated issues. Ratings List Saphir Finance PLC GBP600 million fixed/floating rate noncumulative perpetual callable nonstep-up debt securities* To From -- ---- A- A Argon Capital PLC GBP750 million 8.162% callable noncumulative perpetual preference stock To From -- ---- BB/Watch Neg BBB+ * Support provided by Lloyds Banking Group PLC. * Support provided by The Royal Bank of Scotland Group PLC. BARRATTS SHOES: Goes Into Administration; Deloitte Appointed ------------------------------------------------------------- Daniel Butters, Neville Kahn, and Lee Manning of Deloitte LLP, the business advisory firm, have been appointed Joint Administrators of Barratts Shoes and Priceless Shoes, the trading subsidiaries of Stylo plc, the high street shoe retailer. The statutory entities in Administration are: -- Stylo Barratt Shoes Limited, -- Stylo Barratt Properties Limited, -- Priceless Shoes Properties Limited, -- Barratts Shoes Properties Limited, and -- Comfort Shoes Limited. Stylo plc, the listed parent is not in Administration. The Administrators are seeking agreement from creditors to place the companies into a Company Voluntary Arrangement (CVA). The stores remain open and continue to trade. Stylo -- http://www.stylo.co.uk/-- operates 400 high street shoe stores in the UK under the Barratts and Priceless brands, employing 5,450 staff in total. It also has a headquarters in Bradford, Yorkshire. Daniel Butters, Deloitte Partner and Joint Administrator, commented: "Stylo has faced a downturn in trading as a result of the current difficult economic and market conditions. We have been appointed as Administrators to Barratt and Priceless while we contact all creditors with a proposal to rescue the companies via a series of CVAs. Under the CVAs, we will be asking creditors and landlords to contractually vary their terms of trade in order to give Barratts and Priceless the necessary breathing space to allow them to deliver value for all stakeholders in the future. We are seeking to enable the rescue of Barratts and Priceless, while giving creditors and landlords certainty over their own positions. Ultimately, we are giving creditors and landlords a chance to vote on the future of the companies. "If creditors accept the proposals, the administration would cease, after a 28 day cooling off period, and the Companies would continue to trade under the CVAs, which would remain in place for two years. The Administrators would become Supervisors to ensure that the Companies meet their obligations to creditors. In the meantime, the stores will continue to trade as normal." On January 22, 2009, the Board of Stylo confirmed that it was exploring strategic options for the business. The Company requested that trading in its shares on the Alternative Investment Market of the London Stock Exchange be suspended pending clarification of these options. Stylo's trading update to the market on December 2, 2008 emphasized the extremely challenging retail conditions affecting the Company. The Board has been actively pursuing a recovery program to return the business to profitability by reducing costs, closing underperforming outlets, selling businesses such as Shellys, improving the management team, reducing stock levels and developing new formats. Notwithstanding these actions, the trading conditions in the retail sector have deteriorated markedly. The Board does not anticipate any improvement in the trading environment in the short-term. Against this background the Board has concluded that current and projected sales can not support the current cost base of the business, in particular the high rent obligations, and therefore a more pro-active restructuring approach is required to return the business to profitability. In a statement on Monday, January 26, 2009, Stylo said the objective of the CVAs is to restore the group's business model to viability primarily by restructuring the rental liabilities on its property portfolio to reflect the ability of each individual store to trade profitably. Michael Ziff, Chairman & Chief Executive of Stylo, said: "After much careful thought and planning, I am satisfied that we are proposing an arrangement which will enable the business to move forward with a stronger foundation and achieve a solution that is in the best interests of all stakeholders." The Ziff family confirmed its intention to make substantial further funds available to the Group if requested to do so by the Board. The terms of such further investment remain subject to final agreement between the independent directors and the Ziff family. BERNSTEIN GROUP: Creditors Will Not Receive Dividend, KPMG Says --------------------------------------------------------------- James Chapelard at Crain's Manchester Business reports that creditors of Bernstein Group Holdings Ltd will not receive dividend after the Bolton-based kitchen and bedroom unit manufacturer failed to comply with the terms of a voluntary agreement made under an earlier period of administration in 2006. Bernstein, Crain's discloses, had debts of GBP8.6 million under that administration. According to Crain's, the agreement, made by original administrator KPMG, collapsed in December after the company was unable to pay GBP50,000. Subsequently, PricewaterhouseCoopers was appointed new administrators of the company, Crain's adds. Crain's notes that although the company has contributed GBP250,000 over the course of 2008, this money has been absorbed by professional fees. Crain's relates a report by administrators KPMG said "We have been in dialogue with management and unfortunately there is no prospect of future contributions being made or defaults being remedied. As a result, we are obliged to terminate the voluntary agreement because the company is unable to make the final contribution of GBP494,000, there will be no dividend to creditors." Creditors of the company, which is continuing to trade with limited staff, now wait to see if they receive any money from the second administration, Crain's says. Berstein, Crain's recalls, went into administration in December, resulting to the loss of 140 jobs. The administrators, as cited by Crain's, said the business has suffered significant losses as a result of the severe housing and retail downturn in the UK and the slowdown in consumer spending on home improvements. Bernstein Group Holdings Ltd manufactures flat pack and ready assembled kitchens. INEOS GROUP: Weak Liquidity Cues Moody's Junk Corporate Rating -------------------------------------------------------------- Moody's Investors Service has downgraded the Corporate Family Rating of Ineos Group Holdings plc to Caa2 (from B3). The ratings assigned to the instruments raised by its subsidiaries were also downgraded. The outlook on the ratings remains negative. On January 22, Ineos published an update on liquidity and market trading in the last quarter of 2008 that suggested a substantial weakening in the operating environment and some reduction in the liquidity position of the group. Lower liquidity guidance and further deterioration in the market conditions and the outlook for 2009 has increased Moody's estimate of default probability and resulted in the downgrade of the ratings. The negative outlook reflects Moody's expectation of the challenging operating environment that will continue to affect the company's credit profile in the medium term. In Moody's view, the size of the liabilities and the restrictive covenants under the senior secured facilities (temporarily waived by the lenders) remain the major factors driving the credit profile at this stage. The negative outlook reflects the likely need to review the existing terms at the beginning of 2009, the uncertainty associated with the terms and conditions of such a review, as well as the need to strengthen the balance sheet of the group to ensure continuous compliance with the terms of the facilities during this period of cyclical downturn. These ratings are affected by the rating action: Ineos Group Holdings plc: - Corporate Family Rating: Caa2 - 2016 senior g-teed notes - Ca / LGD 5 (89); Ineos Holding Limited - First-lien senior g-teed bank facilities -- Caa1/ LGD 3 (35); - Second lien senior loans -- Caa3 / LGD 5 (79); Ineos Vinyls Finance plc - Senior g-teed notes - Ca / LGD 6 (96). Moody's last rating action on Ineos Group holding was on December 12, 2008 when the rating agency assigned a negative outlook to the company's ratings. Ineos Group Holdings plc is a diversified and integrated chemicals group headquartered in Southampton, the United Kingdom. Ineos reported 2007 Revenues of EUR27.5 billion and EBIT of EUR1.2 billion. INFORMATION TECHNOLOGY: Goes Into Administration ------------------------------------------------ Adam Hooker at PrintWeek reports that Information Technology Incentives (ITI) has gone into administration. Citing Chris Hilbert, manager of the administration team at SFP, the report relates ITI was placed into administration on Jan. 21. ITI, the report discloses, is the parent company of digital printer Cpod and bookbinder Chivers Period. The report however notes it is currently unclear how the two companies will be affected. Cpod and Chivers employ around 12 and 20 staff respectively, the report states. LAND OF LEATHER: To Begin Stock Liquidation Sales in 33 Stores -------------------------------------------------------------- The joint administrators of furniture retailer Land of Leather on Monday disclosed plans to begin stock liquidation sales in 33 stores that are to be closed. Lee Manning, Deloitte Partner and joint administrator, commented: "While we are making every effort to sell Land of Leather as a going concern, it is apparent that interested parties will not buy all of the 109 stores. Therefore, we have taken the decision to begin pre-closure inventory liquidation sales at 33 of the stores. "We have begun discounting the stock in those stores with a view to winding down. However, we continue to talk to prospective buyers for the business, and all other stores remain open and available for purchase as a going concern." The 30 stores in the UK and three stores in Ireland employ 95 staff in total. The administrators are looking at the possibility of relocating some of these employees to other stores where possible. Lee Manning and Nick Edwards of Deloitte LLP, the business advisory firm, were appointed as joint administrators to Land of Leather, the furniture retailer, on January 12, 2009. The administrators continue to talk to interested parties with a view to concluding a sale of the business as a going concern. Land of Leather operates from 109 retail stores across the United Kingdom and Ireland, and has a head office in Kent. LANZET LTD: Appoints Joint Administrators from PKF -------------------------------------------------- Kerry Bailey and Stephen P. Holgate of PKF (UK) LLP were appointed joint administrators of Lanzet (UK) Ltd. on Jan. 15, 2009. The company can be reached through PKF (UK) LLP at: Farringdon Place 20 Farringdon Road London EC1M 3AP England LB HOLDINGS: Names Joint Administrators from PwC ------------------------------------------------ Derek Anthony Howell, Anthony Victor Lomas, Steven Anthony Pearson and Michael John Andrew Jervis of PricewaterhouseCoopers LLP were appointed joint administrators of LB Holdings Intermediate 2 Ltd. on Jan. 14, 2009. The company can be reached at: LB Holdings Intermediate 2 Ltd. 25 Bank Street London E14 5LE England NICKEL BLANKS: Acquired by Carrs of Sheffield --------------------------------------------- Bob Rae at Sheffield Star reports that Carrs of Sheffield has acquired Meadowhall-based cutlery firm Nickel Blanks for an undisclosed sum. Carrs, the report relates, has acquired the intellectual property, plant, machinery, tooling, stock and work in progress of Nickel Blanks and its subsidiaries. The company's subsidiaries snapped up by Carrs include knife blade forgers Jessop and Smith, handle makers and knife assemblers Beatson Drake, blade grinders and polishers Rutland Cutlery, polishers and platers Classic Cutlery, traditional sterling silver, EPNS and stainless steel cutlery manufacturer Osborne, which has a concession at top people's store Harrods, and retailer Dynasty, which trades locally under the name Sheffield Scene. The report recounts 70 of Nickel Blanks' employees were mostly made redundant not long after Ian Schofield and Charles Escott from business advisers PKF were appointed joint administrators of the company, which collapsed for the second time within a year. According to the report, creditors owed money after the first collapse can expect to receive around 40p for every GBP1 they were owed under a voluntary arrangement, while people owed money from the second collapse can only expect 5p for every GBP1 they were owed. The report discloses Nokoy Services, a company connected to Nickel Blanks' previous owners, was among the creditors owed money from the second collapse. It was owed around GBP1.2 million and waived its right to a pay out from the voluntary arrangement, the report notes. POTENTIAL VEHICLE: Appoints Joint Administrators from KPMG ---------------------------------------------------------- Allan Watson Graham, Ian James Corfield and David John Standish of KPMG LLP were appointed joint administrators of Potential Vehicle Hire Ltd. on Jan. 19, 2009. The company can be reached at: Potential Vehicle Hire Ltd. 149-157 Kings Road Brentwood Essex CM14 4EG England PRICELESS SHOES: Goes Into Administration; Deloitte Appointed ------------------------------------------------------------- Daniel Butters, Neville Kahn, and Lee Manning of Deloitte LLP, the business advisory firm, have been appointed Joint Administrators of Barratts Shoes and Priceless Shoes, the trading subsidiaries of Stylo plc, the high street shoe retailer. The statutory entities in Administration are: -- Stylo Barratt Shoes Limited, -- Stylo Barratt Properties Limited, -- Priceless Shoes Properties Limited, -- Barratts Shoes Properties Limited, and -- Comfort Shoes Limited. Stylo plc, the listed parent is not in Administration. The Administrators are seeking agreement from creditors to place the companies into a Company Voluntary Arrangement (CVA). The stores remain open and continue to trade. Stylo -- http://www.stylo.co.uk/-- operates 400 high street shoe stores in the UK under the Barratts and Priceless brands, employing 5,450 staff in total. It also has a headquarters in Bradford, Yorkshire. Daniel Butters, Deloitte Partner and Joint Administrator, commented: "Stylo has faced a downturn in trading as a result of the current difficult economic and market conditions. We have been appointed as Administrators to Barratt and Priceless while we contact all creditors with a proposal to rescue the companies via a series of CVAs. Under the CVAs, we will be asking creditors and landlords to contractually vary their terms of trade in order to give Barratts and Priceless the necessary breathing space to allow them to deliver value for all stakeholders in the future. We are seeking to enable the rescue of Barratts and Priceless, while giving creditors and landlords certainty over their own positions. Ultimately, we are giving creditors and landlords a chance to vote on the future of the companies. "If creditors accept the proposals, the administration would cease, after a 28 day cooling off period, and the Companies would continue to trade under the CVAs, which would remain in place for two years. The Administrators would become Supervisors to ensure that the Companies meet their obligations to creditors. In the meantime, the stores will continue to trade as normal." On January 22, 2009, the Board of Stylo confirmed that it was exploring strategic options for the business. The Company requested that trading in its shares on the Alternative Investment Market of the London Stock Exchange be suspended pending clarification of these options. Stylo's trading update to the market on December 2, 2008 emphasized the extremely challenging retail conditions affecting the Company. The Board has been actively pursuing a recovery program to return the business to profitability by reducing costs, closing underperforming outlets, selling businesses such as Shellys, improving the management team, reducing stock levels and developing new formats. Notwithstanding these actions, the trading conditions in the retail sector have deteriorated markedly. The Board does not anticipate any improvement in the trading environment in the short-term. Against this background the Board has concluded that current and projected sales can not support the current cost base of the business, in particular the high rent obligations, and therefore a more pro-active restructuring approach is required to return the business to profitability. In a statement on Monday, January 26, 2009, Stylo said the objective of the CVAs is to restore the group's business model to viability primarily by restructuring the rental liabilities on its property portfolio to reflect the ability of each individual store to trade profitably. Michael Ziff, Chairman & Chief Executive of Stylo, said: "After much careful thought and planning, I am satisfied that we are proposing an arrangement which will enable the business to move forward with a stronger foundation and achieve a solution that is in the best interests of all stakeholders." The Ziff family confirmed its intention to make substantial further funds available to the Group if requested to do so by the Board. The terms of such further investment remain subject to final agreement between the independent directors and the Ziff family. PRINTHAUS: Goes Into Administration ----------------------------------- Adam Hooker and Simon Nias at PrintWeek report that Northampton- based printing firm Printhaus has gone into administration. Michael Kiely of UHY Hacker Young's London office was appointed administrator of Printhaus on Jan. 19, the report discloses. The report recalls Printhaus managing director Kelly Harris earlier confirmed that a number of redundancies had been made in December. Mr. Harris also declined to comment on speculation that the company was set to be acquired, the report adds. According to the report, administration will come as a surprise to Printhaus's clients. The report recounts clients were sent a letter by Mr. Harris dated December 31, in which he claimed that the company would be kicking off the new year with "new offerings". The report relates the letter stated that the company had secured external investment, "which underpins our future, and enables us to increase the range of services we offer". However, the report notes sources close to the company said that no new kit has been installed at Printhaus's site. SOUTHERN PACIFIC: S&P Affirms BB+ Ratings on Two Classes of Notes ----------------------------------------------------------------- Standard & Poor's Ratings Services raised and removed from CreditWatch positive its credit ratings on the mezzanine classes issued by three U.K. residential mortgage-backed securities Southern Pacific transactions: -- Southern Pacific Financing 04-A PLC; -- Southern Pacific Securities 04-1 PLC; and -- Southern Pacific Securities 04-2 PLC. At the same time, S&P affirmed and removed from CreditWatch positive the subordinate notes in each transaction. S&P also affirmed the senior class A notes. Our actions follow a full credit and cash flow analysis of the most recent information that S&P has received for each transaction. This analysis showed that the levels of credit enhancement available to all classes of notes on CreditWatch positive have improved and the underlying collateral continues to perform as expected. The Southern Pacific portfolios comprise predominately self- certified (about 65%) and first-time borrowers (about 21%). In all these transactions, S&P has seen a reduction in the weighted- average loan-to-value ratio, together with an increase in seasoning. For SPF 04-A, SPS 04-1, and SPS 04-2 the WALTV ratio is 69.34%, 64.17%, and 69.89%, respectively, with seasoning at 54.71 months, 56.18 months, and 52.33 months. Additionally, all three deals have significantly deleveraged. This has substantially increased credit enhancement levels across all tranches, providing some mitigation for the high arrears levels. The current pool factor is 11.32% for SPF 04-A, 8.54% for SPS 04-1, and 12.08% for SPS 04-2. The notes, issued in 2004, are backed by portfolios of first- charge, second-charge, and, only if the first and second charges are in favor of the same lender, third-charge mortgages. These are secured by freehold and leasehold owner-occupied properties in the U.K. and were originated by Southern Pacific Personal Loans Ltd. and Southern Pacific Mortgage Ltd. Ratings List Ratings Raised and Removed from Creditwatch Positive Southern Pacific Financing 04-A PLC GBP350 Million Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- C AAA AA/Watch Pos D AA A/Watch Pos Southern Pacific Financing 04-1 PLC GBP215.2 Million, EUR325.7 Million, and US$310 Million Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- M AA A/Watch Pos Southern Pacific Financing 04-2 PLC GBP493.5 Million, EUR210 Million and US$122.5 Million Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- B1b AAA AA/Watch Pos B1c AAA AA/Watch Pos C1a AA A/Watch Pos C1c AA A/Watch Pos Ratings Affirmed And Removed From Creditwatch Positive Southern Pacific Financing 04-A PLC GBP350 Million Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- E BBB BBB/Watch Pos Southern Pacific Financing 04-1 PLC GBP215.2 Million, EUR325.7 Million, and US$310 Million Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- B BB+ BB+/Watch Pos Southern Pacific Financing 04-2 PLC GBP493.5 Million, EUR210 Million, and US$122.5 Million Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- D1a BBB+ BBB+/Watch Pos D1c BBB+ BBB+/Watch Pos E BB+ BB/Watch Pos Ratings Affirmed Southern Pacific Financing 04-A PLC GBP350 Million Mortgage-Backed Floating-Rate Notes Class Rating ----- ------ A AAA B AAA Southern Pacific Financing 04-1 PLC GBP215.2 Million, EUR325.7 Million, and US$310 Million Mortgage- Backed Floating-Rate Notes Class Rating ----- ------ A2 AAA SYMINGTON: Goes Into Administration ----------------------------------- Retail Jeweller reports that Symington, a discount jewelry chain based in Scotland, has gone into administration. According to the report, attempts to restructure Symington's parent company Martin Groundland & Company following difficult trading failed. The report recalls Martin Groundland & Company, which trades under Red Contemporary Jewellery as well as Symington's, went into administration on Jan. 16 at the request of the company's directors. Blair Nimmo and Tony Friar of KPMG Restructuring were appointed as joint administrators, the report relates. Citing Mr. Nimmo, the report discloses 78 employees have been retained. Mr. Nimmo said the shops will continue to trade as normal under the control of the joint administrators while a buyer for the business is sought. Headquartered in Glasgow, Martin Groundland & Company Limited operates 13 shops. It employs 91 people. TATA STEEL: Corus Unveils Strategic Measures, 3,500 Jobs at Risk ---------------------------------------------------------------- Corus, the European business of Tata Steel, on Monday, January 26, disclosed a series of strategic measures that will improve its competitive position. The initiative focuses on three areas: divestments, asset restructuring and a company-wide efficiency and overhead review. In the last quarter of 2008, Corus addressed the immediate effects of the economic downturn through a series of measures that are expected to yield about GBP600 million in cash benefits in the six months to the end of March. These measures also include taking the opportunity to provide additional training to employees experiencing temporary shortages of work. The company will continue to discuss with employee representatives options to match payroll costs with the new production and demand levels. The initiative is strategic and structural in nature. Elements of the initiative comprise long-term plans that were already under consideration, but which have been brought forward as a result of the slowdown. It should bring annual improvements in operating profit of more than GBP200 million. It will also put around 3,500 jobs at risk around the company as a whole. Corus currently employs about 42,000 people. The company will make every effort to achieve the job losses through voluntary redundancies, while retaining critical skills in the business. A comprehensive range of redundancy packages and outplacement support services will be made available to those leaving the company. There will be full consultations with employees and their representatives throughout the process. Corus CEO Philippe Varin said: "The structural changes we are proposing have been carefully considered. They are essential for the future of the business. The company will keep its focus on priority areas such as training, research and product development, which, together with the initiative, will ensure Corus is in the best possible shape to compete strongly in the future." The key features of the initiative are: * Divestments � sale of Corus' aluminium smelters in Germany and the Netherlands (announced Jan. 21) and advanced discussions on the sale of a majority stake in Teesside Cast Products, which would bring clarity to the future of the Teesside operations beyond the current offtake agreement. * Asset restructuring � mothballing of the Llanwern hot strip mill; restructuring of engineering steels into two businesses � a specialty steels business at Stocksbridge fed by electric furnace steel from Rotherham and a bar business at Rotherham with steel sourced from the integrated works at Scunthorpe; and streamlining of downstream facilities in Distribution, Building Systems and Tubes * Efficiency and overhead review � a company-wide efficiency improvement review, including a review of support functions such as IT, Finance and Human Resources, with a target to reduce costs in these areas by around 20%. In addition, the company intends to make changes to the British Steel Pension Scheme. While the scheme is in a healthy position, the company will, in line with market practice, close the Defined Benefit scheme to new recruits, who will be offered a Defined Contribution scheme. Steps will also be taken to ensure that the company contribution to future service for existing members remains at 12%. Steel Prices Halved According to BBC News, a 40% fall in global demand for steel from its peak of last year caused Corus's order book to drop by more than a third. BBC recalls steel prices have fallen by half since last September. Breakingnews.ie says this is due to the crisis in the construction and car-making industry. BBC, however, notes that according to the Sunday Times, Corus is not planning to close any of its British plants. About Corus Corus is Europe's second largest steel producer with annual revenues of more than GBP12 billion and crude steel production of about 20 million tonnes. With main steelmaking operations primarily in the UK and the Netherlands, Corus supplies steel and related services to the construction, automotive, packaging, mechanical engineering and other markets worldwide. Corus is a subsidiary of Tata Steel, one of the world's top ten steel producers. Following the acquisition of Corus in 2007, the combined enterprise has an aggregate crude steel capacity of more than 28 million tonnes and approximately 82,700 employees across four continents. About Tata Steel Limited Headquartered in Mumbai, India, Tata Steel Limited -- http://www.tatasteel.com/-- is a diversified steel producer. It has operations in 24 countries and commercial presence in over 50 countries. Its operations predominantly relate to manufacture of steel and ferro alloys and minerals business. Other business segments comprises of tubes and bearings. Tata Metaliks Limited, which is engaged in the business of manufacturing and selling pig iron, became a subsidiary of the Company with effect from Feb. 1, 2008. * * * As reported in the Troubled Company Reporter-Asia on Jan. 14, 2008, Moody's Investors Service placed Tata Steel Ltd's Ba1 corporate family rating on review for possible downgrade. The rating action follows the rating downgrade of Tata Steel UK's rating (formerly Corus) to B1, which remains on review for possible downgrade, and reflects the close linkages between the credit profiles of the two entities. * RBS Says Half of Commodity Shippers at Risk of Breaching Loans ---------------------------------------------------------------- Alaric Nightingale at Bloomberg News reported that Royal Bank of Scotland Group plc said as many as half of publicly traded commodity shipping lines are at risk of breaching their loan covenants by April after a record collapse in hire rates. Bloomberg News recounted that according to the Baltic Exchange in London, the cost of second-hand capesizes, the largest group of commodity carriers, plunged 70 percent last year. Bloomberg News recalled last year the Baltic Dry Index, a measure of shipping costs for commodities, slumped 92 percent, causing at least four shipowners to collapse since October. "It's hard to avoid a breach when asset values have fallen so significantly," Lambros Varnavides, RBS' head of of credit to the shipping industry, told Bloomberg News in interviews in London on Jan. 12 and 13. According to Bloomberg News, Mr. Varnavides said about a third of closely held coal, ore and grain shippers could also breach loan covenants. Mr. Varnavides, as cited by Bloomberg News, said shippers in breach of covenants will likely have to renegotiate loans assuming rates and values don't rebound in the next several months. He, however, noted that most banks will be more interested in maintaining their relationship with shippers than seeking the highest possible interest rates when renegotiating loans, which are being made at 200 to 300 basis points over the London interbank offered rate, compared with less than 100 points about 18 months ago, Bloomberg News related. Citing Mr. Varnavides, Bloomberg News disclosed RBS has lent US$25 billion to shippers, of which US$18 billion has actually been used. Mr. Varnavides indicated the ratio of losses on RBS's shipping loans is "not going to change much" in the "long run", Bloomberg News added. The ratio of losses on the bank's shipping loans has averaged about 0.03 percent in the last 15 years, Bloomberg News stated. * UK: FTSE350 Pensions Deficit Estimated at GBP33 Bln, Mercer Says ------------------------------------------------------------------ The pension schemes of the FTSE350 recorded a funding level of 92% equal to deficit of GBP33 billion, according to Mercer's quarterly snapshot of the UK's pensions market. The figure compares to the GBP13 billion deficit reported in December 31, 2007 and illustrates the impact of market volatility on company balance sheets. The research also showed that the insolvency risk for the 10% of FTSE350 companies most in danger of defaulting has increased four-fold in the last quarter of 2008 and by a factor of 17 over the whole year. According the report, AA bond yields remain high, but widely spread, making the selection of IAS19 discount rates a challenging task for companies reporting at December 31, 2008. Mercer's research continues to suggest that companies are adopting a variety of methodologies for deriving their discount rates. Mercer said that based on its insights into market participants' behavior, its estimate of the aggregate funding level of the FTSE350 is 92%, which falls between the funding level of 97% at December 31, 2007 and the value of 90% at December 31, 2006." Deborah Cooper, Principal at Mercer, commented, "There has been much uncertainty around assumption setting, especially with the diverse range of corporate bond yields at the year-end. As reports of falls in asset values being offset by falling liabilities over 2008 have made headlines, a number of people have questioned the suitability of accounting standards which rely on these yields. "It should however be borne in mind that models used for accounting purposes are required to ensure different companies' financial statements are comparable. Even though it has come in for some criticism in recent months, the current approach, which relies on yields derived from AA rate corporate bonds provides a consistent and transparent way of measuring liabilities on corporate balance sheets." During 2008, FTSE350 IAS19 funding levels ranged from 82% to 104%, indicating just how volatile the measure has been and highlighting the financial uncertainty faced by sponsors of defined benefit pension plans in the UK. Dr. Cooper added, "While much attention has been focused on accounting funding levels, the key driver of demands for additional funding will be funding levels on trustees' funding bases. These funding levels will vary considerably between schemes due to the flexibility available to set scheme specific funding targets and bases." Mercer's report shows that deficits on the trustees' funding basis have also increased during 2008 with the rise generally being greater due to the typical basis being driven by gilt rather than bond yields. In Mercer's Pension Update at the end of June 2008, the increasing risk of corporate insolvency was highlighted. Regrettably this analysis proved to be only too accurate with Wedgwood, Zavvi, Woolworths and Whittards of Chelsea all having gone into administration in recent weeks. Dr Cooper continued, "The strength of sponsoring employers' covenants should be at or near the top of trustees' agendas. If economic uncertainty continues, and funding levels remain weak, trustees will have to balance putting pressure on sponsoring employers for additional security for scheme members while, at the same time, considering the effects on the company's financial strength and future prospects. It is likely that some trustees will be seeking additional funding or security to provide a boost to the security of member benefits, while sponsoring employers still have some resources to hand. This will place additional pressure on corporate sponsors at a time when they can least afford it. There will also be circumstances where trustees are prepared and able to accept reduced employer funding over the short term. However, agreement to this might have to be supported by evidence that shareholders and other company creditors are also being asked to share some of the company's pain." * EUROPE: GDP Growth in the European Union to Drop by 1.8% in 2009 ------------------------------------------------------------------ GDP growth in the European Union is expected to fall by 1.8 % in 2009 before recovering moderately to 0.5% in 2010. This is the result of the impact on the real economy of the intensified financial crisis, the ensuing global downturn manifested in the severe contraction of world trade and manufacturing output and, in some countries, housing-market corrections. Government consumption and public investment, however, will provide relief. The fact that inflationary pressures have eased also contributes to private consumption. The discretionary fiscal measures announced since August 2008 will limit the contraction in GDP growth by about 3/4 pp. this year. The severity of the economic downturn will have a significant impact on employment and public finances over the forecast horizon. "The measures to stabilize the financial market, the easing of monetary policies and the economic recovery plans will enable us to put a floor under the deterioration of the economy this year and create the conditions for a gradual recovery in the second part of 2009. The top priority is to make those measures work effectively: to improve the flows of credit at reasonable prices and to implement the fiscal stimulus packages quickly to stimulate investment and private consumption. To boost confidence, it is also crucial that Member States explicitly commit that they will reverse the deterioration of public finances as soon as we return to normal economic times so as to ensure the medium-to-long term sustainability of public finances", said Joaquin Almunia, Economic and Monetary Affairs Commissioner. Economic growth is forecast to have dropped to about 1% in 2008 in both the EU and the euro area, from just below 3% in 2007, according to the advanced interim forecast released January 19, 2009. In 2009, real GDP is expected to fall sharply, by 1.8% in the EU and 1.9 in the euro area, before recovering by about �% in 2010. Global economy in recession this year Economic activity worldwide is expected to have fallen markedly in the last quarter of 2008. Declines in recent survey data and incoming orders, among others, indicate that this weakness is likely to persist in the short term. The economic downturn is expected to be broad-based with negative spillovers increasingly affecting emerging-market economies. For 2009 as a whole, world GDP growth is projected to slow down to 0.5% (from 3.3% in 2008 and the exceptionally strong 5% average in 2004-2007). Starting in the second half of 2009, global growth is expected to rise gradually but moderately as the financial market situation improves and the impact of the macroeconomic policy easing (not least in the US) gains traction. Overall, global GDP growth is expected to be around 2 3/4% in 2010. EU economy also hit hard In the third quarter of 2008 GDP fell by 0.2% in both the euro area and the EU. T his implies that the euro area entered its first technical recession as GDP contracted for the second consecutive quarter. Following the further slump in survey data across sectors and countries and the marked deterioration in other leading indicators during the fourth quarter, the outlook is for a continued fall in GDP throughout the first half of this year. The downswing is expected to be broad-based across countries as the financial crisis, the global cycle and, in some Member States, also a housing bust take their toll. The fall in both private and net foreign demand is expected to be a significant drag on GDP growth, with only government consumption and public investment providing relief. In particular private investment, which was a key driving force in the upturn, faces an abrupt slowdown on the back of a substantial drop in capacity utilization rates, the deterioration in the economic outlook and tighter financing conditions. Unemployment and deficits on the rise The labor market situation started to worsen in most Member States in 2008. Reacting with a certain lag to changes in GDP growth, employment growth is expected to turn negative this year, with EU employment falling by 3 1/2 million jobs. As a result, the unemployment rate is expected to increase to 8 3/4% in the EU in 2009 (and 9 1/4% in the euro area), with a further increase in 2010. The worsened outlook is also expected to take a toll on public finances, which will suffer from the reversal of past revenue windfalls, a generally less tax-rich composition of growth and the impact of important discretionary measures adopted and/or announced by Member States (which amount to some 1% of GDP for 2009 in the EU at the time this forecast was finalized). The headline deficit is therefore expected to more than double this year in the EU to 4 1/2% in 2009 (from some 1 3/4% to 4% in the euro area). Inflation set to fall rapidly Inflationary pressures are abating rapidly. The fierce upsurge in commodity prices that drove inflation to a peak in the summer of 2008 has since been abruptly reversed, amid a rapid weakening in growth prospects for the EU and the global economy as well as deteriorating labor markets. These elements set the stage for a significant downward revision to the inflation outlook compared to the autumn projection. Consumer-price inflation is now expected to fall from 3.7% in 2008 in the EU (3.3% in the euro area) to 1.2% in 2009 (1.0% in the euro area) and just below 2% in 2010 in both regions. Substantial uncertainties at the current juncture This forecast is again surrounded by exceptional uncertainty as the world economy faces its worst crisis since World War II. Risks to the growth outlook are balanced. To the downside, the impact of the financial crisis (including on the housing sector) and the severity of the negative feedback loop between the financial and real sectors of the economy need to be considered. On the other hand, growth could be stronger than expected if inter alia the fiscal packages restore confidence among investors and consumers more swiftly than assumed. Risks to the inflation outlook also appear balanced, following developments in commodity prices and the deterioration of economic prospects globally. ********* 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 * * *