/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/090311.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, March 11, 2009, Vol. 10, No. 49 Headlines B U L G A R I A KREMIKOVTZI AD: Workers Protest Over Lay-Offs and Unpaid Salaries C Z E C H R E P U B L I C MORAVIA ENERGO: Declared Bankrupt by Ostrava Regional Court * CZECH REPUBLIC: Gov't Approves Amendment on Insolvency Law F R A N C E ROSETTA I: Moody's Cuts Ratings on Three Classes of Notes to 'B1' G E R M A N Y ARTEFAX PROJEKTENTWICKLUNG: Claims Registration Ends April 8 BLACK & BLUE: Claims Registration Period Ends April 9 GENERAL MOTORS: German Unit Not Preparing for Insolvency GEWO VERTRIEBS: Claims Registration Period Ends April 16 GREEN PURITY: Claims Registration Period Ends April 6 VEOVIA GMBH: Claims Registration Period Ends April 20 H U N G A R Y MAGYAR TELECOM: Moody's Gives Neg. Outlook; Affirms 'B1' Rating I C E L A N D STRAUMUR-BURDARAS: Collapses, Iceland Gov't Takes Over STRAUMUR-BURDARAS: Fitch Cuts Issuer Default Ratings to 'D' I R E L A N D MCENANEY CONSTRUCTION: Seeks Fresh Capital Injections STARTS PLC: Moody's Cuts Rating on US$30 Mil. Notes to 'Ba3' TITAN EUROPE: Fitch Junks Ratings on Three Tranches I T A L Y BANCA ITALEASE: To Spinoff Company Into Three TISCALI SPA: Ends Talks with BSkyB Over Sale of UK Assets K A Z A K H S T A N BEK-TAS-1 LLP: Creditors Must File Claims by April 10 BIRLIK LLP: Creditors Must File Claims by April 10 CHAD RB: Creditors Must File Claims by April 10 CUSTOM CONSULTLLP: Creditors Must File Claims by April 10 DOST INSAAT: Creditors Must File Claims by April 10 LION LD: Creditors Must File Claims by April 10 SF BKS LLP: Creditors Must File Claims by April 10 SUPER SMILE: Creditors Must File Claims by April 10 TORES LTD: Creditors Must File Claims by April 10 VODNIK LLP: Creditors Must File Claims by April 10 K Y R G Y Z S T A N INVEST-RADUGA LLC: Creditors Must File Claims by March 20 L A T V I A * LATVIA: May Go Bankrupt if IMF Loan is Delayed P O L A N D POLSKI KONCERN: Asks Court to Oversee Debt Restructuring R U S S I A ALEKS-DI CJSC: Creditors Must File Claims by March 29 BARNAUL FOUNDRY: Creditors Must File Claims by April 28 BAYKAL'SKIY LES LLC: Creditors Must File Claims by April 28 IRKUT-INVEST LLC: Irkutsk Bankruptcy Hearing Set July 30 OM-STROY-2001 LLC: Creditors Must File Claims by March 29 PROM-TARA-1 LLC: Creditors Must File Claims by April 28 RIKO-STROY LLC: Creditors Must File Claims by April 28 RUBTSOVSK MACHINE: Under Bankruptcy Procedure TEPLOIZOLYAZIYA OJSC: Bankruptcy Hearing Set May 13 VEK-STROY LLC: Creditors Must File Claims by April 28 S E R B I A & M O N T E N E G R O ATLASMONT BANKA: Moody's Assigns 'E+' Financial Strength Rating S L O V E N I A * SLOVENIA: May Go Into Recession as Mfg, Exports Slump S P A I N SANTANDER FINANCIACION: Fitch Junks Rating on Class E Tranche S W E D E N PLASTAL HOLDING: Files for Bankruptcy S W I T Z E R L A N D BERGGASTHAUS ALPENBLICK: Creditors Must File Claims by April 14 D A L LLC: Deadline to File Proofs of Claim Set April 18 ISB MANAGEMENT: Creditors Have Until March 31 to File Claims PIZ AROSER: Proofs of Claim Filing Deadline is March 31 RETROS LLC: Creditors' Proofs of Claim Due by April 14 WINZELER JSC: May 20 Set as Deadline to File Claims U K R A I N E ALTER-COMP-GROUP LLC: Creditors Must File Claims by March 21 DONSNAB LLC: Creditors Must File Claims by March 21 KHARKOV EXPERIMENTAL: Creditors Must File Claims by March 21 KREPENSKOYE LLC: Court Starts Bankruptcy Supervision Procedure POLEMIN CJSC: Creditors Must File Claims by March 21 PRIME CAPITAL: Creditors Must File Claims by March 22 SPECTR PLUS: Creditors Must File Claims by March 21 U N I T E D K I N G D O M ALFRED SARGENT: Appoints Administrators from Tenon Recovery BHM CONSTRUCTION: Creditors to Vote on CVA Deal on March 19 CATTLES PLC: Suspends 3 More Execs, Warns Covenant Breach & Loss CHASE DE VERE: Goes Into Administration COBALT CAPITAL: Goes Into Administration EXCHANGE INSURANCE: Goes Into Administration FORE-WOOD LTD: Calls in Joint Administrators from BDO Stoy ITV PLC: Overhauls Directors' Bonus Scheme LIGHTWATER PLAYING: Taps Joint Administrators from Baker Tilly LLOYDS BANKING: Fitch Cuts Individual Rating to 'E' from 'C/D' MECOM GROUP: Shares Plunge 16% Following Debt Breach Warning PRISTINE DRY: Names Joint Administrators from Tenon Recovery REXAM PLC: Moody's Affirms 'Ba2' Subordinated Debt Ratings SPERLING RETAIL: Taps Joint Administrators from Grant Thornton TIPES LTD: Appoints Joint Administrators from Smith & Williamson VISIOCORP PLC: Moody's Withdraws 'Ca' Corporate Family Rating * UK: Begbies Warns Surge in Commercial Property Insolvencies ********* =============== B U L G A R I A =============== KREMIKOVTZI AD: Workers Protest Over Lay-Offs and Unpaid Salaries ----------------------------------------------------------------- Tsvetelia Ilieva at Reuters reports that about 1,500 Kremikovtzi workers protested on Monday over planned lay-offs and unpaid salaries. Reuters relates that according to the workers, who have not received their salaries for the past three months, managers plan to cut some 2,000 jobs. The workers, Reuters discloses, are calling on the government to find a buyer for the plant, which has sharply reduced its operations since August when a court declared it insolvent over its huge debt. The workers, Reuters says, demanded compensation of 30 times monthly salary if the plant was shut down. However, the economy ministry, as cited by Reuters, said it was still in acquisition talks with Brazilian steelmaker CSN and could not discuss any other issues until talks were completed. Declaration Focus News Agency meanwhile reports the protesting workers will submit a declaration addressed to Prime Minister Sergey Stanishev. The declaration, Focus News Agency notes, says that Kremikovtzi is on the threshold of liquidation and calls for an emergency meeting between the Prime Minister and president of CSN. About Kremikovtzi Headquartered in Sofia, Bulgaria, Kremikovtzi AD -- http://www.kremikovtzi.com/-- is a single-site steel producer in Bulgaria that reported BGN896 million in revenues in 2006. It explores and produces iron and ore fields. As reported in the TCR-Europe on Aug. 8, 2008, the Sofia City Court commenced insolvency proceedings against Kremikovtzi AD after declaring it bankrupt. The court appointed a temporary bankruptcy administrator for the steelmaker. The court also ruled that Kremikovtzi's insolvency started on Dec. 31, 2005. As of Dec. 31, 2007, the company had BGN1.63 billion (US$1.3 billion) in total debts. =========================== C Z E C H R E P U B L I C =========================== MORAVIA ENERGO: Declared Bankrupt by Ostrava Regional Court ----------------------------------------------------------- CTK reports that the regional court in Ostrava, northern, Moravia, has declared Czech electricity trader Moravia Energo bankrupt. The report relates insolvency proceedings were launched on Tuesday. The court appointed Lenka Vidovicova as insolvency administrator, the report discloses. According to the report, the court ordered review proceedings. Creditors have 30 days from March 5 to register their claims, the report states. The report notes a meeting of creditors will take place on April 30. Citing some sources, the report says Komercni banka is owed up to CZK1 billion by Moravia Energo, making it one of the company's largest creditors. Other banks that financed Moravia Energo's operation were UniCredit Bank and Raiffeisenbank, the report adds. The report recalls power producer CEZ cut supplies of electricity to Moravia Energo two weeks ago after the company, which generated CZK4.7 billion sales last year, failed to pay for daily power supplies. The management, as cited by the report, said banks were not willing to finance contracts this year and next year, and the company filed for insolvency. The report recounts in a statement for CTK this week Moravia Energo said it was ready to launch reorganization at the company and find work for 22 people it now employs. * CZECH REPUBLIC: Gov't Approves Amendment on Insolvency Law ------------------------------------------------------------ CTK reports that the Czech government on Thursday approved an amendment to the law on insolvency. The report relates Labour Minister Petr Necas said "The amendment will in particular facilitate restructuring of insolvent companies. It is aimed at saving jobs and maintaining viable parts of companies. Protection of employees against insolvency of employers is part of it." According to the report, a group of experts including Supreme Court judges has prepared changes in the current rules. The report recalls Justice Minister Jiri Pospisil earlier said "Their aim is to set conditions which would more than before help companies survive and get reorganized, allow removal of their debts and not lead to their liquidation and sale in parts." Minister Necas noted the government will try to achieve that the Chamber of Deputies discusses the amendment as fast as possible and that the legislation is approved by both chambers of Parliament next month, the report states. The amendment will see glass workers of bankrupt Bohemia Crystalex Trading receiving retroactive payment of three monthly wages owed to them, the report says citing Minister Necas. =========== F R A N C E =========== ROSETTA I: Moody's Cuts Ratings on Three Classes of Notes to 'B1' ----------------------------------------------------------------- Moody's Investors Service has downgraded its ratings of five classes of notes issued by Rosetta I S.A. The transaction underlying portfolio comprises 36 subordinated bonds issued by 27 European banking groups. All of these assets qualify as tier 1 or upper tier 2 debt for regulatory purposes, and as such, have certain characteristics typically associated with preferred stocks. A majority of the assets are perpetual, with a call and step-up feature, and the redemption of all of the assets is subject to regulatory approval. These rating actions are based on these factors: -- The current unfavorable market environment for financial institutions, evidenced by the Negative Moody's Banking System Outlook of most European countries; -- The recent evidence that bank subordinated debts may not always benefit from governments' financial support, which led Moody's Global Banking Group to announce a revision of its rating approach for banks' hybrid debts; -- The current level of market spreads, which in certain circumstances might make it uneconomical for financial institutions to call their perpetual debts. This is likely to lead Moody's to revise its CDO modelling assumptions in terms of call probability for perpetual debts issued by financial institutions; and -- The recent evidence that participants in the financial sector seem to be heavily correlated, which led Moody's to update its correlation assumptions in the financial sector. Moody's rates CDO of perpetual debts through these steps: -- Moody's assesses the probability of non-call of these debts. Since Rosetta I S.A. is structured so that exposures will be liquidated if (i) they are not called on the first payment date after the end of the non-call period and remain uncalled for 27 consecutive weeks,and (ii) they defer, a probability of impairment is computed for each asset, which results from the probability of non-call, that of default and that of deferral of the relevant asset; -- A liquidation value is then estimated in each of the following cases: non-call, deferral and default. An average recovery rate assumption is then inferred for each underlying obligation, pondered by the relevant probabilities; -- Taking into account this probability of impairment and recovery assumption, the deal is then modeled with CDOROM and the output binary file with complete Monte-Carlo scenarios information is used in a cash-flow model to apply the transaction priorities of payments and infer the Notes ratings. Note that Moody's is currently reviewing call-probability assumptions used for callable perpetual debt issued by financial entities and, if necessary, will take further action on transactions exposed to market value risk in relation to non-call events of such issuers when this review has been finalized. These reports may be referred to in relation to the use of CDOROM in rating CDOs of perpetual debts: -- Moody's Approach To Rating Corporate Collateralized Synthetic Obligations (December 2008) -- Moody's updates key assumptions for rating corporate synthetic CDOs (January 2009) The ratings actions are: (1) EUR84,500,000 Class A Floating Rate Notes due 2013 -- Current rating: A1 under review for possible downgrade -- Prior rating action: 5 January 2009, placed the Aaa under review for possible downgrade (2) EUR23,000,000 Class B Floating Rate Notes due 2013, -- Current rating: Baa1 under review for possible downgrade -- Prior rating action: 5 January 2009, placed the Aa2 under review for possible downgrade (3) EUR21,000,000 Class C-1 Floating Rate Notes due 2013, -- Current rating: B1 under review for possible downgrade -- Prior rating action: 5 January 2009, placed the Baa2 under review for possible downgrade (4) EUR20,000,000 Class C-2 Fixed Rate Notes due 2013, -- Current rating: B1 under review for possible downgrade -- Prior rating action: 5 January 2009, placed the Baa2 under review for possible downgrade (5) EUR5,000,000 Class C-3 Fixed Rate Notes due 2013. -- Current rating: B1 under review for possible downgrade -- Prior rating action: 5 January 2009, placed the Baa2 under review for possible downgrade ============= G E R M A N Y ============= ARTEFAX PROJEKTENTWICKLUNG: Claims Registration Ends April 8 ------------------------------------------------------------ Creditors of Artefax Projektentwicklung and Immobilien-Vertriebs Gmb have until April 8, 2009, to register their claims with court- appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on May 6, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Potsdam Hall 24 Justice Center Jagerallee 10 - 12 14469 Potsdam 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: Hartwig Albers Luetzowstrasse 100 10785 Berlin Germany The District Court opened bankruptcy proceedings against the company on Feb. 25, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Artefax Projektentwicklung and Immobilien-Vertriebs GmbH Weissdornallee 20 14624 Dallgow-Doeberitz Germany Attn: Reinhard Kraatz, Manager Marie-Curie-Str. 30 14624 Dallgow-Doeberitz Germany BLACK & BLUE: Claims Registration Period Ends April 9 ----------------------------------------------------- Creditors of Black & Blue GmbH have until April 9, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 10:40 a.m. on April 23, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Kaiserslautern Hall 087 Station Route 24 67655 Kaiserslautern 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: Paul Wieschemann Flickerstal 2 67657 Kaiserslautern Germany Tel: 0631/341950 Fax: 0631/470269 The District Court opened bankruptcy proceedings against the company on Feb. 25, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Black & Blue GmbH Attn: Dr. Massimo Mare, Manager Gartenstr. 47 65232 Taunusstein Germany GENERAL MOTORS: German Unit Not Preparing for Insolvency -------------------------------------------------------- General Motors Corp. has denied a report in German newspaper Die Welt that its German unit Adam Opel GmbH was preparing for insolvency, Angelika Gruber writes for Reuters. "This scenario is currently not on the agenda," a GM Europe spokesman told Reuters on Sunday. Reuters recalls Die Welt reported on Saturday that GM hired three law firms with renowned insolvency experts. Reuters relates the paper said GM Europe would be advised by Baker & McKenzie as well as Clifford Chance, while the management of Opel had hired Heidelberg-based firm Wellensiek. However, the GM Europe spokesman, as cited by Reuters, said the company had hired the firms to assess the effect of potential restructuring measures. About Adam Opel GmbH Adam Opel GmbH -- http://www.opel.com/-- a wholly-owned subsidiary of General Motors Corp for 80 years, is the core of GM's business in Europe. Opel's passenger cars (Astra, Zafira, Vectra, and electric Ampera), along with its light commercial vehicles (Combo and Movano) represent over 90% of GM's total sales in Germany. Opel is the third-most popular brand in Germany, behind Volkswagen and Mercedes-Benz. It offers International and Diplomat Sales (IDS) to customers in international organizations, the military, and in diplomatic service, also builds cars in Belgium, Poland, Portugal, and Britain. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM Europe is based in Zurich, Switzerland, while General Motors Latin America, Africa and Middle East is headquartered in Miramar, Florida. As reported in the Troubled Company Reporter on Nov. 10, 2008, General Motors Corporation's balance sheet at Sept. 30, 2008, showed total assets of US$110.425 billion, total liabilities of US$170.3 billion, resulting in a stockholders' deficit of US$59.9 billion. * * * As reported in the Troubled Company Reporter on Nov. 11, 2008, Standard & Poor's Ratings Services lowered its ratings, including the corporate credit rating, on General Motors Corp. to 'CCC+' from 'B-' and removed them from CreditWatch, where they had been placed with negative implications on Oct. 9, 2008. S&P said that the outlook is negative. Fitch Ratings, as reported in the Troubled Company Reporter on Nov. 11, 2008, placed the Issuer Default Rating of General Motors on Rating Watch Negative as a result of the company's rapidly diminishing liquidity position. Given the current liquidity level of US$16.2 billion and the pace of negative cash flows, Fitch expects that GM will require direct federal assistance over the next quarter and the forbearance of trade creditors in order to avoid default. With virtually no further access to external capital and little potential for material asset sales, cash holdings are expected to shortly reach minimum required operating levels. Fitch placed these on Rating Watch Negative: -- Senior secured at 'B/RR1'; -- Senior unsecured at 'CCC-/RR5'. As reported in the Troubled Company Reporter on June 24, 2008, DBRS has placed the ratings of General Motors Corp. and General Motors of Canada Limited Under Review with Negative Implications. The rating action reflects the structural deterioration of the company's operations in North America brought on by high oil prices and a slowing U.S. Economy. GEWO VERTRIEBS: Claims Registration Period Ends April 16 -------------------------------------------------------- Creditors of GeWo Vertriebs GmbH have until April 16, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on May 7, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court Erfurt Hall 12 Judicial Center Rudolfstr. 46 99092 Erfurt Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dirk Goetze Bahnhofstr. 3 99084 Erfurt Germany The District Court opened bankruptcy proceedings against the company on Feb. 23, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: GeWo Vertriebs GmbH Attn: Reiner Kreft and Hermann Kiem, Managers Steinstrasse 5 99885 Ohrdruf Germany GREEN PURITY: Claims Registration Period Ends April 6 ----------------------------------------------------- Creditors of Green Purity GmbH have until April 6, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on 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 Walsrode Hall 130 Lange Strasse 29-33 29664 Walsrode Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Steffen Koch Albert-Einstein-Ring 11 22761 Hamburg Germany Tel: (0 40) 8 99 56 � 0 Fax: (0 40) 8 99 56 � 41 The District Court opened bankruptcy proceedings against the company on Feb. 26, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Green Purity GmbH Attn: Rauch Rolf, Manager Beinhornstrasse 9 29693 Hodenhagen Germany VEOVIA GMBH: Claims Registration Period Ends April 20 ----------------------------------------------------- Creditors of Veovia GmbH have until April 20, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on May 11, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Luebeck Hall 256 Am Burgfeld 7 23568 Luebeck 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. Susanne Riedemann Neuer Wall 25/Schleusenbruecke 1 20354 Hamburg Germany The District Court opened bankruptcy proceedings against the company on Feb. 26, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Veovia GmbH Spargelhof 2-4 Attn: Jens Cichetzki, Manager 23554 Luebeck Germany ============= H U N G A R Y ============= MAGYAR TELECOM: Moody's Gives Neg. Outlook; Affirms 'B1' Rating --------------------------------------------------------------- Moody's Investors Service has changed the outlook on the ratings of Magyar Telecom B.V. to negative from stable. Magyar Telecom is a wholly-owned subsidiary of Invitel Holdings A/S. The rating of Ba1 on the senior secured facility has been withdrawn while the corporate family rating of B1 and the ratings on the existing bonds have been affirmed. The change in the rating outlook reflects challenges associated with a weak economic environment in Hungary and, as a consequence, a continued pressure on the company's revenue as well as limited covenant headroom under the newly arranged senior secured facility. In Q3 2008, revenue declined by 6% in Hungarian Forint year-on-year. At the same time, revenue growth from the Internet services has slowed; e.g. revenue from Mass Market Internet grew by 2% in Q3 2008 versus Q3 2007. Although Moody's notes that the company was able to grow its EBITDA and EBITDA margin year-on- year, the rating agency is concerned about the company's future operating and financial trends, particularly in light of challenging economic conditions. Furthermore, the company has limited covenant headroom under its newly negotiated bank facility. The company has a significant exposure to foreign exchange risk as the majority of its debt is denominated in EUR whilst the majority of its revenue (approximately 75%) is generated in HUF. The company recently completed refinancing of its senior secured and EUR100 million bridge facilities. Moody's notes that the company has limited headroom under some of its covenants under the new facility on the back of a weak exchange rate and potential of further depreciation of the Hungarian forint against EUR. Although at this stage Moody's believes that there is a relatively low probability of the company breaching its covenants, the limited covenant headroom does increase financial risk. Moody's will monitor the company's compliance with the covenants and the headroom. In the event headroom should diminish further, downward pressure on the rating is likely. Furthermore, Moody's notes that there are still some uncertainties regarding the company's shareholding structure in the near to medium term. Magyar Telecom terminated its strategic review initiated in 2008. However, Moody's believes that the company remains a non-core asset of its majority shareholder, TDC A/S, which is likely to seek to sell the company when the opportunity arises. The last rating action was on March 14, 2008 when the corporate family rating was confirmed at B1 with a stable outlook. Headquartered in Budaors, Hungary, Magyar Telecom is the second largest fixed-line telecommunications provider in Hungary. ============= I C E L A N D ============= STRAUMUR-BURDARAS: Collapses, Iceland Gov't Takes Over ------------------------------------------------------ Straumur-Burdaras Fjarfestingabanki hf a.k.a Straumur-Burdaras Investment Bank hf has collapsed after running out of liquidity, forcing the Icelandic government to take over the lender, various reports say. Bloomberg News relates the Icelandic Financial Supervisory Authority suspended the bank's board and named a committee that will take over management. According to The Associated Press, the bank's board -- including chairman, Bjorgolfur Thor Bjorgolfsson -- has been replaced by a team of public accountants and solicitors from PriceWaterhouseCoopers. The Straumur board presented the Icelandic government with a range of options over the weekend to save it from collapse, but officials took the "most drastic" route of state control, Telegraph.co.uk relates citing sources. IFSA is in the process of closing the business, according to BBC News. The bank's chief executive, William Fall, who joined in 2007, resigned from his position with immediate effect. "In spite of its strong capital position and the support of funding banks, Straumur Burdaras Investment Bank believes that its liquidity position is no longer enough to sustain its activities," the bank said in a statement obtained by BBC News. Straumur incurred a EUR780.6 million loss in 2008 on revenue of EUR85.8 million. Loss in the fourth-quarter was EUR576.4 million. Straumur is the last of Iceland's four largest banks to be nationalized. October last year, Iceland seized Kaupthing Bank hf, Landsbanki Islands hf and Glitnir Banki hf after their collapse. Straumur-Burdaras Fjarfestingabanki hf a.k.a Straumur-Burdaras Investment Bank hf --- http://www.straumur.net/--- is an Iceland- based investment bank. It provides such services as debt financing, corporate advisory and capital market services. The Bank's Corporate Finance team identifies, structures and executes public and private market transactions, while the Debt Finance team originates and underwrites the required debt financing. In addition, it acts as a co-investor in selected projects. The Capital Markets team provides securities brokerage services for companies, institutional investors, mutual funds, and high-net- worth individuals. Capital Markets also manages new share offerings and bond issuance for companies and institutions. The Bank operates primarily in Northern and Central Europe, in such countries as Iceland, Denmark, Sweden, Finland, the Czech Republic, Poland, Slovakia, Romania and the United Kingdom. It has eight wholly owned subsidiaries in Iceland, Luxembourg, the Netherlands and Finland. STRAUMUR-BURDARAS: Fitch Cuts Issuer Default Ratings to 'D' ----------------------------------------------------------- Fitch Ratings has downgraded Straumur-Burdaras Investment Bank's Long-term Issuer Default rating to 'D' from 'B' and Short-term IDR to 'D' from 'B' and removed them from Rating Watch Negative. This follows the announcement that Straumur has been placed under the control of the Icelandic Financial Supervisory Authorities. Please see below for further rating actions. Straumur's funding and liquidity positions have been under severe pressure over the past months due to continued difficult markets, and this morning's announcement by the FSA stated that the bank could not ensure sufficient funds to meet its obligations. The Icelandic FSA has appointed a Resolution Committee, which will take over all authority of Straumur's board; the bank is therefore subject to similar arrangements as the three large Icelandic banks that have been placed under the control of the authorities. In Fitch's view, support from the Icelandic authorities cannot be relied upon for timely payment of the bank's obligations as they fall due. Rating actions taken: -- Long-term IDR: downgraded to 'D' from 'B'; Rating Watch Negative removed -- Short-term IDR: downgraded to 'D' from 'B'; Rating Watch Negative removed -- Support rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No Floor' -- Individual rating: downgraded to 'F' from 'D/E'; Rating Watch Negative removed -- Senior debt: downgraded to 'CC' from 'B'; Rating Watch Negative removed; Recovery Rating at 'RR4' -- Subordinated debt: downgraded to 'C' from 'CCC+'; Rating Watch Negative removed; Recovery Rating at 'RR6'. ============= I R E L A N D ============= MCENANEY CONSTRUCTION: Seeks Fresh Capital Injections ----------------------------------------------------- Ian Kehoe at The Sunday Business Post reports that McEnaney Construction, the company behind the EUR200 million M1 Euro Park development in Co Louth, Ireland, is seeking fresh capital injections to overcome cashflow difficulties. According to the report, the company, which emerged from a examinership a year ago, is now looking for an outside investor to inject capital into the business in return for an equity shareholding. The report relates the company is also attempting to sell a number of investment sites, as well as elements of its commercial and residential property portfolio. The company however believes it can overcome its difficulties, and has retained advisers to help it to source capital and offload investments, the report notes. McEnaney Construction had work in progress valued at EUR27.7 million and building sites valued at EUR39.7 million at the end of April 2007, the report discloses citing the company's most recent accounts. The company, the report recalls, sought protection from its creditors in December 2007, after running into cashflow problems following the decline in construction sector. At the time, the company owed Ulster Bank and Irish Nationwide EUR30 million each, while IIB was owed EUR5 million, the report states. STARTS PLC: Moody's Cuts Rating on US$30 Mil. Notes to 'Ba3' ------------------------------------------------------------ Moody's Investors Service announced it has downgraded its rating of one class of notes issued by Starts (Ireland) Plc. Moody's explained that the rating action taken is the result of (i) the application of revised and updated key modeling parameter assumptions that Moody's uses to rate and monitor ratings of Corporate Synthetic CDOs and (ii) the deterioration in the credit quality of the transaction's reference portfolio. The revisions affect key parameters in Moody's model for rating Corporate Synthetic CDOs: default probability, asset correlation, and other credit indicators such as ratings reviews and outlooks. Moody's announced the changes to these assumptions in a press release titled "Moody's Updates its Key Assumptions for Rating Corporate Synthetic CDOs," published on January 15, 2009. Moody's initially analyzed and continues to monitor this transaction using primarily the methodology for Corporate Synthetic CDOs as described in Moody's Special Report below: -- Moody's Approach to Rating Corporate Collateralized Synthetic Obligations (December 2008) The rating action is: Starts (Ireland) Plc: (1) Series 2005-28 US$30,000,000 TIGERS Principal-Rated Index- Linked CDO Notes -- Current rating: Ba3 -- Prior Rating: Baa1 -- Prior Rating Date: 24 December 2008, downgraded to Baa1 from A3 TITAN EUROPE: Fitch Junks Ratings on Three Tranches --------------------------------------------------- Fitch Ratings has downgraded six tranches of Titan Europe 2007-2 Limited and affirmed the transaction's three senior tranches. The affirmations relate to the class A1 and A2 commercial mortgage backed floating rate notes, due 2017, and the variable rate class X notes. All the other FRN were downgraded. In addition, class E has been removed from Rating Watch Negative. The Outlooks on classes A2 and B have been revised to Negative from Stable, and Recovery Ratings have been assigned to the classes E, F and G: -- EUR816.89 million class A1 (XS0302915060) affirmed at 'AAA'; Outlook Stable -- EUR5,000 class X (XS0303036445) affirmed at 'AAA'; Outlook Stable -- EUR228.38 million class A2 (XS0302916381) affirmed at 'AAA'; Outlook revised to Negative from Stable -- EUR154.7 million class B (XS0302917272) downgraded to 'A' from 'AA'; Outlook revised to Negative from Stable -- EUR115.51 million class C (XS0302917512) downgraded to 'BBB' from 'A'; Outlook Negative -- EUR86.28 million class D (XS0302917868) downgraded to 'BB' from 'BBB'; Outlook Negative -- EUR37.97 million class E (XS0302919138) downgraded to 'CCC' from 'BBB-' (BBB minus); removed from RWN; assigned 'RR3' -- EUR21.33 million class F (XS0302919641) downgraded to 'CCC' from 'B'; assigned 'RR5' -- EUR11.26 million class G (XS0302920730) downgraded to 'CCC' from 'B-' (B minus); assigned 'RR5' Only the MPC and Portier portfolios have been revalued since closing, resulting in market value declines of 20.7% and 19.7%, respectively. Fitch estimates that the collateral of the remaining loans is also likely to have been similarly affected by the ongoing yield widening across European markets. Except for the MPC Portfolio and the Urbis and Portier loans (which jointly account for 56% of the current portfolio), the remaining loans are all in compliance with their respective coverage ratio triggers and covenants. The Ton loan was removed from the servicer's watchlist in January 2009 following the resolution of borrower reporting issues. In addition, a dispute between the servicer and the borrower of the Six Hotels loan regarding the use of the capital expenditure facility was resolved prior to the October 2008 IPD, and the loan was subsequently also removed from the servicer's watchlist. The MPC Portfolio was scheduled to mature in January 2009, however, the borrower used its first (out of three) one-year extension option. Since the loan agreement does not include loan- to-value or interest coverage ratio default covenants, the loan remains current despite A-note and whole loan LTVs of 101% and 121%, respectively, and an ongoing cash-trap event. Fitch believes that, given the loan's poor performance and high leverage, it is unlikely to be fully redeemed by final legal maturity and the expected loss on the loan is the main driver of the downgrades of the notes. The second-largest loan, Project Christie, is scheduled to mature in April 2009. Since this loan can also be extended up to three times by one year, Fitch expects the borrower to exercise its first extension option in April. In addition, the Portier loan defaulted when the borrowers' parent, Level One Group, became insolvent. The commencement of insolvency proceedings constituted a loan event of default under the Portier credit agreement, and the loan was subsequently transferred into special servicing. All cash flow is applied to first make interest payments on the A-note and then to fully amortize it. The ratings may be affected by further deterioration of the respective European property markets. Any significant decline in loan performance, especially of the already underperforming MPC Portfolio, may also result in further negative rating action. Fitch will continue to monitor the performance of the transaction. ========= I T A L Y ========= BANCA ITALEASE: To Spinoff Company Into Three --------------------------------------------- Banca Italease SpA will be split into three new companies, Bloomberg News reports citing daily Il Sole 24. The plan includes the spinoff of assets worth EUR6 billion (US$7.6 billion) into a new company while another unit will hold all non- performing loans, the Italian newspaper said as cited by Bloomberg News. Reuters meanwhile reports that according to the Italian Stock Exchange, shares in Banco Popolare Societa Cooperativa and its affiliate Banca Italease have been temporarily suspended pending a statement. As reported yesterday in the Troubled Company Reporter-Europe, Reuters said Banca Italease's leading shareholders are in talks about possible delisting of the company. According to Reuters, Banco Popolare has been seeking a solution for its 30 percent-owned affiliate since the collapse last year of an attempt to find a strategic partner. "There are contacts under way between the (controlling) pact shareholders. At present no decision has been taken on the future of the leasing company," the bank said in a statement obtained by Reuters. A UBS research report obtained by Reuters said the takeover of Italease would drive Banco Popolare's Core Tier 1 capital ratio down to about 5.5 percent. "The bank then would need at least EUR1.5 billion additional capital before any potential clean-up," the UBS research report cited by Reuters said. Reuters relates an analyst with a Milan bank meanwhile said Italease would be unable to issue state-backed bonds to boost its capital on a stand-alone basis because it did not meet government conditions. Reuters recalls Italease posted a nine-month net loss of EUR222 million as it restructured after huge losses from derivatives investments in 2007. Banca Italease SpA (BIT:BIL) -- http://www.italease.it/-- is an Italy-based banking company. Banca Italease provides retail leasing services through: Italease Secondacasa, offering real estate leasing; Tiarredo, providing furniture leasing; Tiarredo Arte, specializing in art leasing; Tiguido, offering car and motorcycle leasing, and Tivaro, providing boat leasing. Banca Italease also offers corporate leasing through its subsidiaries: LeasinGomme, Real Estate Leasing, Industrial Leasing, Public Sector Leasing and Corporate Car Leasing. Other areas of Company�s operations are: subsidized leasing, medium and long-term lending, insurance products, factoring, long-term car leasing, and Interest Rate Swap (IRS) contracts. * * * As reported in the Troubled Company Reporter-Europe on Dec. 5, 2008, Fitch Ratings affirmed Banca Italease's Individual rating at 'D/E' and kept the Long-term 'BB' rating of the bank's EUR150 million trust preferred securities on Rating Watch Negative. As of March 9, 2009, Banca Italease continues to carry Moody's Ba1/Not-Prime/D-ratings on its long- and short-term deposit ratings as well as bank financial strength (BFSR), respectively. All ratings have a stable outlook. TISCALI SPA: Ends Talks with BSkyB Over Sale of UK Assets --------------------------------------------------------- Tiscali SpA has ended talks with BSkyB over the sale of its UK assets, citing worsening market environment, BBC News reports. "Due to the worsening of the market environment in which the potential buyer also operates, the board of directors has acknowledged that it is de facto impossible to proceed," BBC quoted Tiscali as saying. BBC relates Tiscali said it would miss an interest payment on its debt as a result. The news sent shares in the company down 40% in Milan before trading was subsequently suspended, BBC adds. Tiscali, BBC discloses, has about EUR500 million (US$629 million; GBP453 million) of outstanding debt. Its next interest payments, for EUR11 million, are due on March 11 and March 13, BBC notes. The company has asked for its interest payments to be suspended for a period while it restructures its debt, BBC recalls. On Nov. 7, 2008, the Troubled Company Reporter-Europe reported that BBC News, citing The Sunday Times, said BSkyB had proposed an indicative offer of GBP450 million for the UK business. The Daily Telegraph stated if the acquisition pushes through, BSkyB, which has 1.79 million broadband customers, could become the third biggest player in the market behind BT and Virgin Media. Tiscali put itself up for sale last year following a strategic review of its business, BBC noted. About Tiscali SpA Headquartered in Cagliari, Italy, Tiscali SpA (BIT:TIS) -- http://www.tiscali.com/-- is an Internet communications company providing broadband and narrowband access for consumer and business applications, as well as communications services and content. The company's portfolio includes Internet access in the form of dial-up, broadband, satellite and leased lines, and hosting services, such as co-location, shared hosting and managed hosting. Tiscali also offers streaming media, telephony and such services as virtual private networks (VPN), allowing companies to communicate with remote branches. Its consumer products and services include Internet access, voice, media, Internet Protocol Television (IPTV) and value-added services, such as e-mail, Net calendar, Net fax, Net phone, mail, instant messaging and Web hosting. It is operational in Europe through its subsidiaries and joint ventures. As of June 30, 2008, Tiscali had approximately 3.2 million active users in Italy and the United Kingdom. =================== K A Z A K H S T A N =================== BEK-TAS-1 LLP: Creditors Must File Claims by April 10 ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Bek-Tas-1 insolvent. Creditors have until April 10, 2009, to submit written proofs of claim to: Rabochaya Str. 55-1 Borovskoye Mendykarinski district Kostanai Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of Kostanai Baitursynov Str. 70 Kostanai Kazakhstan BIRLIK LLP: Creditors Must File Claims by April 10 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Pavlodar has declared LLP Birlik insolvent. Creditors have until April 10, 2009, to submit written proofs of claim to: Pobeda Ave. 5 Pavlodar Kazakhstan Tel: 8 (7182) 32-38-46 The Court is located at: The Specialized Inter-Regional Economic Court of Pavlodar Djambulskaya Str. 6 Pavlodar Kazakhstan CHAD RB: Creditors Must File Claims by April 10 ----------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola has declared LLP Chad RB insolvent. Creditors have until April 10, 2009, to submit written proofs of claim to: Kenesary Str. 46-38 Astana Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of Akmola Gorky Str. 37 Kokshetau Akmola Kazakhstan CUSTOM CONSULTLLP: Creditors Must File Claims by April 10 --------------------------------------------------------- LLP Custom Consult has declared insolvency. Creditors have until April 10, 2009, to submit written proofs of claim to: Tole bi Str. 23a Almaty Kazakhstan DOST INSAAT: Creditors Must File Claims by April 10 --------------------------------------------------- LLP Dost Insaat has declared insolvency. Creditors have until April 10, 2009, to submit written proofs of claim to: Gogol Str. 86 Almaty Kazakhstan LION LD: Creditors Must File Claims by April 10 ----------------------------------------------- The Specialized Inter-Regional Economic Court of South Kazakhstan has declared LLP Lion LD insolvent. Creditors have until April 10, 2009, to submit written proofs of claim to: Ilyaev Str. 24 Shymkent South Kazakhstan Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of South Kazakhstan Tynybaev Str. 42 Shymkent South Kazakhstan Kazakhstan SF BKS LLP: Creditors Must File Claims by April 10 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Astana has declared LLP SF BKS insolvent. Creditors have until April 10, 2009, to submit written proofs of claim to: Abai Ave. 36 Astana Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of Astana Abai Ave. 36 Astana Kazakhstan SUPER SMILE: Creditors Must File Claims by April 10 --------------------------------------------------- LLP Super Smile Group has declared insolvency. Creditors have until April 10, 2009, to submit written proofs of claim to: Depovskaya Str. 79 Almaty Kazakhstan TORES LTD: Creditors Must File Claims by April 10 ------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Tores Ltd. insolvent. Creditors have until April 10, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Kostanai Baitursynov Str. 70 Kostanai Kazakhstan VODNIK LLP: Creditors Must File Claims by April 10 -------------------------------------------------- The Specialized Inter-Regional Economic Court of South Kazakhstan has declared LLP Vodnik insolvent. Creditors have until April 10, 2009, to submit written proofs of claim to: Ilyaev Str. 24 Shymkent South Kazakhstan Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of South Kazakhstan Tynybaev Str. 42 Shymkent South Kazakhstan Kazakhstan =================== K Y R G Y Z S T A N =================== INVEST-RADUGA LLC: Creditors Must File Claims by March 20 --------------------------------------------------------- LLC Invest-Raduga has declared insolvency. Creditors have until March 20, 2009, to submit written proofs of claim to: LLC Invest-Raduga Erkindik ave. 35 Bishkek Kyrgyzstan Tel: (+996 312) 90-61-55 (+996 312) 53-14-46 =========== L A T V I A =========== * LATVIA: May Go Bankrupt if IMF Loan is Delayed ------------------------------------------------ Bloomberg News reports Latvia's premier-designate, Valdis Dombrovskis, warned the country faces "bankruptcy" in three months if it fails to deliver budget cuts required by the International Monetary Fund and the next installment of its bailout is delayed. The report recalls Latvia was granted a EUR7.5 billion (US$9.5 billion) bailout last quarter after the economy shrank 10.5 percent and the state seized its second biggest bank. According to the report, the government fell on Feb. 20 after agreeing to budget cuts needed to keep the deficit below 5 percent of gross domestic product. However, the report says Mr. Dombrovskis now wants the IMF to approve a deficit of 8 percent of GDP to avoid crippling the economy. Latvia must cut the budget to meet terms of the bailout or get a bigger loan from the IMF- led group and European Commission or it will run out of money, the report states. The report discloses on Feb. 24, Standard & Poor's cut Latvia's credit rating to junk, lowering the country to BB+ from BBB-. =========== P O L A N D =========== POLSKI KONCERN: Asks Court to Oversee Debt Restructuring -------------------------------------------------------- Polski Koncern Miesny Duda SA asked a court to oversee the restructuring of its liabilities after it lost money on currency options, Maciej Martewicz at Bloomberg News reports. Duda gave no other details about the court procedure in its regulatory filing, the report says. The report recalls earlier this month, the company said in the fourth-quarter statement it may face trouble paying back its debt after it reported PLN34.2 million (US$9.2 million) losses on currency derivatives. Warsaw, Poland-based Polski Koncern Miesny DUDA SA (WAR:DUD) -- http://www.zmduda.pl/-- is in the meat processing industry. The Company focuses on the red meat production. Its main line of business is purchasing and slaughtering of pigs and cattle, as well as butchery services. Apart from sides of pork and quarters of beef, the range of products includes cuts of pork and beef, culinary meat, pluck and fats. As a complement to its production and trading activities, the Company offers services with regard to the freezing, storage and transport of foodstuffs that require specialist refrigeration facilities. PKM DUDA is a parent company within a group comprising approximately 30 companies in Poland, Ukraine and Germany. =========== R U S S I A =========== ALEKS-DI CJSC: Creditors Must File Claims by March 29 ----------------------------------------------------- Creditors of CJSC Aleks-Di (Construction) have until March 29, 2009, to submit proofs of claims to: O. Yershov Temporary Insolvency Manager Apt. 4 Building 1 B. Kornilova St. 7 603106 Nizhny Novgorod Russia The Arbitration Court of Moskovskaya will convene at 10.10 a.m. on June 11, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. A41�1108/09. The Debtor can be reached at: CJSC Aleks-Di Bolshaya Pokrovskaya St. 35 Pavlovskiy Posad Moskovskaya Russia BARNAUL FOUNDRY: Creditors Must File Claims by April 28 ------------------------------------------------------- Creditors of CJSC Barnaul Foundry (TIN 2224101658, PSRN 1062224062669) have until April 28, 2009, to submit proofs of claims to: Yu. Shelyagin Insolvency Manager Post User Box 646 656031 Barnaul Russia The Arbitration Court of Altayskiy will convene at 09:30 a.m. on July 27, 2009, to hear bankruptcy proceedings. The case is docketed under Case No. A03�7623\08B. The Debtor can be reached at: CJSC Barnaul Foundry Kulagina St. 28 656002 Barnaul Russia BAYKAL'SKIY LES LLC: Creditors Must File Claims by April 28 ----------------------------------------------------------- Creditors of LLC Baykal'sliy Les (TIN 7536072507, PSRN 1067536046753) (Forestry) have until April 28, 2009, to submit proofs of claims to: M. Bykov Insolvency Manager Post User Box 37 664053 Irkutsk Russia The Arbitration Court of Chitinskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A78�881/2008 B-26. IRKUT-INVEST LLC: Irkutsk Bankruptcy Hearing Set July 30 -------------------------------------------------------- The Arbitration Court of Irkutsk will convene at 10:30 a.m. on July 30, 2009, to hear bankruptcy proceedings on LLC Irkut-Invest (TIN 3812082348, PSRN 1053812038587). The case is docketed under Case No. A 19�503/09�49. The Insolvency Manager is: I. Kolotilin Post User Box 74 664046 Irkutsk Russia The Debtor can be reached at: LLC Irkut-Invest Gidrostroiteley St. 15 Irkutsk Russia OM-STROY-2001 LLC: Creditors Must File Claims by March 29 --------------------------------------------------------- Creditors of LLC Om-Stroy-2001 (TIN 5503072032) (Construction) have until March 29, 2009, to submit proofs of claims to: N. Utochenko Temporary Insolvency Manager Apt. 136 Prospect Mira 106a Russia The Arbitration Court of Omskaya will convene on July 27, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. A46�19190/2008. The Debtor can be reached at: LLC Om-Stroy-2001 24 �ya Severnaya St. 172 644116 Omsk Russia PROM-TARA-1 LLC: Creditors Must File Claims by April 28 ------------------------------------------------------- Creditors of LLC Prom-Tara-1 (PSRN 1044800184329) (Rolled-up Stock Production) have until April 28, 2009, to submit proofs of claims to: Ye. Pletnev Insolvency Manager Office 700 Svobody St. 14 394018 Voronezh Russia The Arbitration Court of Lipetskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A36�4298/2008. The Debtor can be reached at: LLC Prom-Tara-1 Zheleznyakov St. 8a Lipetsk Russia RIKO-STROY LLC: Creditors Must File Claims by April 28 ------------------------------------------------------ Creditors of LLC Riko-Stroy (Construction) have until April 28, 2009, to submit proofs of claims to: N. Usanin Insolvency Manager Neftyanikov St. 4/8 Chernushka 617800 Permskiy Russia The Arbitration Court of Permskiy commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A50�9303/2008-B7. The Debtor can be reached at: LLC Riko-Stroy Uinskaya St. 9 Perm' Russia RUBTSOVSK MACHINE: Under Bankruptcy Procedure --------------------------------------------- The Arbitration Court of Altayskiy has commenced external management bankruptcy procedure on OJSC Rubtsovsk Machine-Building Plant (TIN 2209004000, PSRN 1022200804504). The Case is docketed under No. A03�6894/2008-B. The External Insolvency Manager is: Yu. Rezimov Kirova St. 118 454091 Chelyabinsk Russia The Debtor can be reached at: OJSC Rubtsovsk Machine-Building Plant Lenina Prospect 204 Rubtsovsk 658225 Altayskiy Russia TEPLOIZOLYAZIYA OJSC: Bankruptcy Hearing Set May 13 --------------------------------------------------- The Arbitration Court of Belgorodskaya will convene at 11:00 a.m. on May 13, 2009, to hear bankruptcy supervision procedure on OJSC Teploizolyaziya (Heat-Insulating Materials Production). The case is docketed under Case No.A08�9032/2008� 24B. The Temporary Insolvency Manager is: Yu. Dobrovolskiy 2-ya Zavodskaya St. 6 Stroitel' 309070 Belgorodskaya Russia Tel: 8 4722�75�44�63 The Debtor can be reached at: OJSC Teploizolyaziya 2-ya Zavodskaya St. 6 Stroitel' 309070 Belgorodskaya Russia VEK-STROY LLC: Creditors Must File Claims by April 28 ----------------------------------------------------- Creditors of LLC Vek-Stroy (TIN 2309085451, PSRN1032304945419) (Construction) have until April 28, 2009, to submit proofs of claims to: Ye. Bocharov Insolvency Manager Post User Box 2897 350004 Krasnodar Russia The Arbitration Court of Krasnodarskiy will convene at 4:00 p.m. on July 9, 2009, to hear bankruptcy proceedings. The case is docketed under Case No. A-32�14610/2008�1/1012B-2009,�14. The Debtor can be reached at: LLC Vek-Stroy Sedina St. 6 350063 Krasnodar Russia ===================================== S E R B I A & M O N T E N E G R O ===================================== ATLASMONT BANKA: Moody's Assigns 'E+' Financial Strength Rating --------------------------------------------------------------- Moody's Investors Service has assigned B1/Not-Prime foreign currency deposit ratings and an E+ Bank Financial Strength Rating to Atlasmont Banka a.d. Podgorica. All ratings carry a stable outlook. Atlasmont's E+ BFSR translates into a Baseline Credit Assessment of B2 and reflects its adequate historic financial fundamentals, with a capitalization ratio of 14.3% as of September 2008, adequate liquidity and a profitable income statement for each of the past six years. Deteriorating macroeconomic conditions have, however, created additional challenges for Atlasmont -- especially with regard to funding, asset quality and earnings -- which will be closely monitored going forward. The rating also reflects the relatively high credit concentrations, the bank's still developing risk management systems and corporate governance culture, and its narrow franchise. However, despite its small size and declining market share, Atlasmont maintains a nationwide branch network and a 5% market share, with management having the opportunity to consolidate its market position after foreign-owned banks halted their aggressive balance sheet growth. The bank's long-term foreign currency deposit rating is B1, which incorporates a one-notch uplift from the B2 BCA and is based on Moody's assessment that there is a moderate probability that the Montenegrin authorities would support Atlasmont in a period of financial distress. Headquartered in Podgorica, Montenegro, Atlasmont Banka a.d. Podgorica had total assets of EUR164.9 million as of September 2008. =============== S L O V E N I A =============== * SLOVENIA: May Go Into Recession as Mfg, Exports Slump ------------------------------------------------------- Slovenia's economy is heading for a recession after manufacturing and exports suffered "more than the European average," Bloomberg News reports citing Finance Minister France Krizanic. Manufacturing declined 11 percent in the fourth quarter and exports dropped 9.4 percent, the report says citing data from the government's forecasting institute. Gross domestic product shrank 0.8 percent in the fourth quarter last year, the first contraction since 1993, data released by the country's finance ministry showed, as cited by the report. The report relates the government of Prime Minister Borut Pahor introduced a EUR12 billion (US$15.2 billion) bank guarantee plan, subsidies for shorter work-time and the sale of government bonds to restart bank lending. ========= S P A I N ========= SANTANDER FINANCIACION: Fitch Junks Rating on Class E Tranche ------------------------------------------------------------- Fitch Ratings has placed two tranches of FTA Santander Financiacion 2 (Santander Financiacion 2) on Rating Watch Negative and downgraded the remaining four tranches. Rating actions taken: -- EUR593.79 million class A (ISIN ES0337945002) FRN: 'AAA'; placed on Rating Watch Negative -- EUR58 million class B (ISIN ES0337945010 FRN: 'AA'; placed on Rating Watch Negative -- EUR44.9 million class C (ISIN ES0337945028) FRN: downgraded to 'A-' (A minus) from 'A'; Outlook Negative -- EUR29 million class D (ISIN ES0337945036) FRN: downgraded to 'BB' from 'BBB'; Outlook Negative -- EUR63.8 million class E (ISIN ES0337945036) FRN: downgraded to 'CCC' from 'BB'; assigned Distressed Rating 'DR3' -- EUR21.8 million class F (ISIN ES0337945051) FRN: downgraded to 'CC' from 'CCC'; assigned Distressed Rating 'DR6' Santander Financiacion 2 is a securitization of consumer and auto loans, granted to individuals companies, originated by Banco Santander (Santander, seller and servicer), in Spain. The rating action on the class C, D, E and F notes was a result of the deterioration in the performance of the underlying receivables. As at end-February 2009, the cumulative net default ratio stood at 2%, against a base case of 0.71% for the same point of seasoning. Since closing, the Fitch delinquency ratio (from 90 days to 360 days in arrears) has been increasing and peaked at 10.58% at the end of February 2009. The long-term buckets from 90 to 178 days and from 179 to 360 days in arrears were at high levels at the end of February 2009 (2.82% and 7.76%, respectively). Moreover, the Fitch excess spread reported for the last payment period (February 2009) was negative for the first time (-7.65%), due to a reserve fund shortfall of EUR17.03 million. The reserve fund fell during the last payment period from the target amount of EUR21.8 million to EUR4.77 million, leading to a shortfall of EUR17.03 million. The rating agency placed the class A and B notes on Rating Watch Negative, pending further information relating to the delinquencies and net default performance. =========== S W E D E N =========== PLASTAL HOLDING: Files for Bankruptcy ------------------------------------- The Board of Directors of Plastal Holding AB, a supplier of plastic components to the automotive industry, on Friday, March 9, decided to file for bankruptcy at the Moelndal district court, Sweden. The company has suffered a severe liquidity crisis due to the sharp downturn in the automotive industry and the distressed financial markets. "This is a very difficult and sad day for all of us at the Plastal group. We have turned over every possible stone in our attempt to avoid this situation, but today our last efforts failed. The parent company is insolvent and must therefore file for bankruptcy," Roar Isaksen, President and CEO of Plastal Holding AB, said. Mr. Isaken continued: "The Plastal group is an integrated group of companies and I believe that it is unavoidable that other legal entities within the Plastal group will have to file for bankruptcy in their jurisdiction. This is a decision that the Board of Directors in each country will have to make." In the prevailing situation: * A bankruptcy trustee will be appointed for each Plastal group company that files for bankruptcy � the trustees will notify each business operation of relevant developments * For Swedish Plastal group companies, all deliveries into the plants will be suspended. However, deliveries to customers may continue provided that the customers assume the cost of the freight * Plastal employees will be notified of the details concerning their specific local conditions The Plastal group has been severely impacted by the crisis in the automotive industry. In its role as a supplier, Plastal is directly affected by reductions in its customers' production volumes. Plastal and its suppliers have also been negatively affected by the malfunctioning credit market, which has made it impossible to finance customer debt. The deteriorating market conditions have affected suppliers all over Europe. A substantial capital infusion by the main owner, Nordic Capital Fund V, was made in January. Since then, key markets have declined dramatically and projected market volumes for the first two months 2009 are 40% lower than volumes for the first two months 2008. Plastal's management and Board of Directors have exhausted all possible options to avoid bankruptcy. A comprehensive internal cost savings program has been implemented, and management has engaged in close dialogue with customers and suppliers in attempts to identify common solutions. Management has also attempted to divest non-core operations and sought emergency loans from the Swedish Government. Due to the deteriorating market conditions and time constraints, the combined efforts of these measures have been insufficient. "This is of course a very difficult situation for all of us within the Plastal group. Furthermore, our company is a key supplier to the European automotive industry and this will also create large problems for our customers and suppliers. However, I am hopeful that the bankruptcy process will lead to future solutions for our businesses, valued customers and excellent employees," Mr. Isaksen said. "The drop in demand has been both unexpectedly sudden and large towards the end of last year and continued in the beginning of this year. The consequences have been more severe than anyone could have predicted. The current market conditions continue to be extremely uncertain and it has therefore not been possible to find a sufficient long term solution for Plastal," Curt Germundsson, Chairman of the Board of Plastal Holding AB, said. About the Plastal Group Plastal �- http://www.plastal.com/�- is a supplier of engineered plastics to the automotive industry. Plastal has strong market positions in the premium segment of the car market and the light and heavy truck markets. Plastal manufacture and surface-treat interior and exterior plastic components, assuming responsibility for both system and function. The main product area is bumper systems, which the company develops, manufacture and deliver in sequence to many of the world's most demanding vehicle manufacturers. Plastal had sales of about EUR1,300 million in 2008. The group has over 6,000 employees, of which 500 are based in Sweden, at 30 production facilities and four engineering centres in ten countries across Europe and in China. ===================== S W I T Z E R L A N D ===================== BERGGASTHAUS ALPENBLICK: Creditors Must File Claims by April 14 --------------------------------------------------------------- Creditors owed money by LLC Berggasthaus Alpenblick are requested to file their proofs of claim by April 14, 2009, to: Gabriella Peitsch Scherzerstrasse 5 5116 Schinznach Bad Switzerland The company is currently undergoing liquidation in Gurtnellen UR. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 16, 2008. D A L LLC: Deadline to File Proofs of Claim Set April 18 -------------------------------------------------------- Creditors owed money by LLC D.A.L. are requested to file their proofs of claim by April 18, 2009, to: The Miodrag Rancic Liquidator Lindenweg 31 6033 Buchrain Switzerland The company is currently undergoing liquidation in Horgen. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 13, 2008. ISB MANAGEMENT: Creditors Have Until March 31 to File Claims ------------------------------------------------------------ Creditors owed money by JSC ISB Management are requested to file their proofs of claim by March 31, 2009, to: JSC Qino Trust Zugerstrasse 76 b 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. 18, 2008. PIZ AROSER: Proofs of Claim Filing Deadline is March 31 ------------------------------------------------------- Creditors owed money by JSC Piz Aroser Immobilien are requested to file their proofs of claim by March 31, 2009, to: Dr. H. J. Zinsli Maistra 5 7500 St. Moritz Switzerland The company is currently undergoing liquidation in Arosa. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 1, 2008. RETROS LLC: Creditors' Proofs of Claim Due by April 14 ------------------------------------------------------ Creditors owed money by LLC Retros are requested to file their proofs of claim by April 14, 2009, to: Freddy Kaess Liquidator Haselstrasse 11 4103 Bottmingen Switzerland The company is currently undergoing liquidation in Allschwil. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 16, 2008. WINZELER JSC: May 20 Set as Deadline to File Claims --------------------------------------------------- Creditors owed money by JSC Winzeler are requested to file their proofs of claim by May 20, 2009, to: Im Moos 14 8902 Urdorf Switzerland The company is currently undergoing liquidation in Urdorf. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Nov. 24, 2008. ============= U K R A I N E ============= ALTER-COMP-GROUP LLC: Creditors Must File Claims by March 21 ------------------------------------------------------------ Creditors of LLC Alter-Comp-Group (EDRPOU 35081921) have until March 21, 2009, to submit proofs of claim to: N. Tischenko Insolvency Manager Office 31 Stelmakh St. 12 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No 29/30-?. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy street 44-b 01030, Kiev Ukraine The Debtor can be reached at: LLC Alter-Comp-Group Office 34 Pobeda Ave. 136 03115 Kiev Ukraine DONSNAB LLC: Creditors Must File Claims by March 21 ---------------------------------------------------- Creditors of LLC Donsnab (EDRPOU 32227514) have until March 21, 2009, to submit proofs of claim to: O. Liaskovets Insolvency Manager Post Office Box 3398 69006 Zaporozhye Ukraine The Economic Court of Zaporozhye commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No 16/321/08. The Court is located at: The Economic Court of Zaporozhye Shaumian street 4 69001 Zaporozhye Ukraine The Debtor can be reached at: LLC Donsnab Tchekistov St. 39/47 Zaporozhye Ukraine KHARKOV EXPERIMENTAL: Creditors Must File Claims by March 21 ------------------------------------------------------------ Creditors of OJSC Kharkov Experimental Plant (EDRPOU 03052210) have until March 21, 2009, to submit proofs of claim to: E. Sevostianov Insolvency Manager Office 78 Tukhachevsky St. 7 Kharkov Ukraine The Economic Court of Kharkov commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No B-24/193-08. The Court is located at: The Economic Court of Kharkov Svoboda square 5 61022 Kharkov Ukraine The Debtor can be reached at: OJSC Kharkov Experimental Plant Plastichny lane 9 61177 Kharkov Ukraine KREPENSKOYE LLC: Court Starts Bankruptcy Supervision Procedure -------------------------------------------------------------- The Economic Court of Lugansk commenced bankruptcy supervision procedure on Krepenskoye LLC (EDRPOU 03739533). The Temporary Insolvency Manager is: H. Bugulian Shevchenko q. 17/18 Lugansk Ukraine The Court is located at: The Economic Court of Lugansk Great Patriotic War square 3a 91000 Lugansk Ukraine The Debtor can be reached at: Krepenskoye LLC Yubileynaya St. 1 Karpovo-Krepenskoye Sverdlovsk district Lugansk Ukraine POLEMIN CJSC: Creditors Must File Claims by March 21 ---------------------------------------------------- Creditors of CJSC Insurance Company Polemin have until March 21, 2009, to submit proofs of claim to: A. Svintsitsky Insolvency Manager Office 1 Moscow St. 39 01015 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No 44/112-?. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy street 44-b 01030, Kiev Ukraine PRIME CAPITAL: Creditors Must File Claims by March 22 ----------------------------------------------------- Creditors of LLC Prime Capital (EDRPOU 36124426) have until March 22, 2009, to submit proofs of claim to: LLC Special Technics Insolvency Manager Kerch St. 7/7 03151 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No 44/47-?. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy street 44-b 01030, Kiev Ukraine The Debtor can be reached at: LLC Prime Capital Pavlovskaya St. 8 01054 Kiev Ukraine SPECTR PLUS: Creditors Must File Claims by March 21 --------------------------------------------------- Creditors of LLC Television and Radiocompany Spectr Plus (EDRPOU 24512182) have until March 21, 2009, to submit proofs of claim to: M. Kosinevsky Insolvency Manager Office 40 12th. of April St. 22 61089 Kharkov Ukraine The Economic Court of Kharkov commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No B-24/210-08. The Court is located at: The Economic Court of Kharkov Svoboda square 5 61022 Kharkov Ukraine The Debtor can be reached at: LLC Television and Radiocompany Spectr Plus Rogan St. 151 61172 Kharkov Ukraine =========================== U N I T E D K I N G D O M =========================== ALFRED SARGENT: Appoints Administrators from Tenon Recovery ----------------------------------------------------------- Patrick B. Ellward and Dilip K. Dattani of Tenon Recovery were appointed joint administrators of Alfred Sargent & Sons Ltd. on Feb. 24, 2009. The company can be reached through Tenon Recovery at: The Poynt 45 Wollaton Street Nottingham NG1 5FW England BHM CONSTRUCTION: Creditors to Vote on CVA Deal on March 19 ----------------------------------------------------------- John Leitch at Contract Journal reports that Bedford-based BHM Construction (Clifton) has proposed entering into a Company Voluntary Arrangement (CVA) after running into cash flow difficulties. The report relates under the CVA proposal, the company would pay over GBP120,000 a month for 35 months, resulting in a total contribution of GBP4.2 million. The joint supervisors brought in by accountancy firm Moore Stephens would collect GBP235,000 as fees, the report notes. The report states subcontractors and trade creditors will meet on March 19 to vote on the CVA proposal, which is expected to give unsecured creditors the prospect of 45p-in-the pound. The report notes 75% of the creditors need to agree on the proposal for it to push through. According to the report, if the proposal is rejected, the company will opt for liquidation under which assets will generate just 12p-in-the-pound. The report discloses BMH's statement of affairs as at February 16, 2009 shows book value figures of: * GBP2.1 million trade debtors (but realization value if a forced sale took the company into liquidation: GBP520,000) * GBP2.0 million retentions (liquidation value: zero) * GBP2.8 million recoverable on contracts and work-in-progress (liquidation value: GBP690,000) The report notes the book value of the sum available to unsecured creditors is GBP8.8 million in total but if a forced sale put the company down that sum would be re-written as GBP1.6 million and BMH's 'overall deficiency' would jump from GBP3.7 million to GBP11.2 million. The report recalls in 2008 BHM, which recorded a 2007 turnover of GBP44 million, ran into cash flow problems after being hit by the credit crunch. "The directors sought additional finance from its bankers but these negotiations became protracted and have not been concluded satisfactorily," the report quoted BHM as saying. "In the second half of 2008 substantial projects were shelved indefinitely and this has had a serious affect on turnover and cash flow." Creditors, the report adds, have been told that the 14 contracts currently in progress include: * GBP12 million project � a new-build mixed-use development of 123 residential units in Enfield for Kitewood Estates * GBP11 million project � a new-build 107-unit residential scheme in Luton for Paradigm housing Group * GBP8 million project � a mixed-use development of basement parking, residential units and doctor�s surgery at Hoddesdon for Fawkon Centre CATTLES PLC: Suspends 3 More Execs, Warns Covenant Breach & Loss ---------------------------------------------------------------- Cattles Plc has suspended three executives in addition to the three senior managers it suspended last week. According to Bloomberg News, Cattles suspended Finance Director James Corr, Chief Operating Officer Ian Cummine and Compliance and Risk Director Adrian Cummings saying it will post a "significant" loss for 2008 and restate its 2007 earnings. As reported in the Troubled Company Reporter-Europe on Mar. 5, 2009, BBC News said Cattles suspended managing director John Blake, finance director Peter Miller and operations director Mick Belcher after it found out that there has been a failure of internal controls at the company. Covenant Breach Bloomberg News relates Cattles said it is probably "in breach of covenants under its borrowing arrangements" and will see waivers from its debt providers. Cattles delayed the announcement of its 2008 earnings on Feb. 20, saying it was reviewing its provisions for loan losses, the report notes. The company, as cited by BBC, said it had uncovered problems in the ways it accounts for bad loans. On Feb. 26, 2009, citing The Daily Telegraph's Jonathan Sibun, the Troubled Company Reporter-Europe reported that Cattles called in accountancy firm Deloitte to help management review its provisions against bad loans. It suspended lending to new customers in Welcome Finance on Feb. 23 in order to preserve cash. According to The Daily Telegraph, Cattles on Feb. 20 issued a profit warning, sending its shares down 74pc to 3-1/2p. The company, the report disclosed, admitted it does not know how many bad loans it has on its books. About Cattles plc Cattles plc (LON:CTT) -- http://www.cattles.co.uk/-- provides financial services to consumers and businesses. The company has three principal businesses, these being Welcome Financial Services, The Lewis Group and Cattles Invoice Finance. * * * As reported in the Troubled Company Reporter-Europe on Feb. 24, 2009, Fitch Ratings downgraded Cattles PLC's Long-term Issuer Default Rating to 'B' from 'B+' and downgraded its senior unsecured debt to 'B' from 'BB-' (BB minus). Both ratings remain on Rating Watch Negative. The downgrades follow Cattles' announcement that it has delayed the publication of its 2008 financial results, pending a review of the adequacy of its impairment charges. This development is a concern and could weaken the company's position at a time when it is engaged in refinancing discussions with various banks relating to a GBP500 million syndicated loan that matures in July 2009 and a GBP135 million bilateral bank line due in December. CHASE DE VERE: Goes Into Administration --------------------------------------- Times Online reports that Chase De Vere Mortgage Management has gone into administration as a result of the sharp decline in the availability of home loans. Chase De Vere Mortgage Management, Times Online relates, ceased trading on Friday after operating for 27 years. Times Online discloses Simon Tyler, who was managing director of Chase De Vere Mortgage Management, plans to file permission with the FSA for a new brokerage called Tyler Mortgage Management. Mr. Tyler, Mortgage Solutions states, has purchased a number of the mortgage broker's assets from the administrators. Mr. Tyler, as cited by the report, said "We've been cutting costs over the last ten months, but turnover in the last three months has been appalling." Morgage Solutions notes according to Mr. Tyler, the mortgage broker had been searching for investment for the last six months but could not secure funding to keep the business afloat. Headquartered in London, Chase De Vere Mortgage Management �- http://www.cdvmm.com/�- is the trading name of Chase De Vere Financial Limited, a privately held company offering advice in the mortgage market. COBALT CAPITAL: Goes Into Administration ---------------------------------------- Times Online's James Charles reports that London-based mortgage broker Cobalt Capital has gone into administration as a result of the sharp decline in the availability of home loans. Cobal Capital, the report relates, ceased trading on Monday, blaming "appalling" market conditions in the mortgage market. Andrew Montlake, associate partner at Cobalt Capital, which been dogged by rumors of infighting in recent weeks, as cited by the report, said: "The conditions are dire in the market. The main problem is the demand is there from clients but there is no supply of mortgages, which is why brokers are having issues." EXCHANGE INSURANCE: Goes Into Administration -------------------------------------------- Philip Stafford at The Financial Times reports that Exchange Insurance Company has gone into administration after being hit by the falling property market. The FT relates administrators Begbies Traynor indicated Exchange had suffered from a rapid increase of claims. It had about 1,239 live bonds secured against properties across 96 developers, with a maximum exposure - the amount if all bonds were claimed - of GBP25 million-GBP30 million, the FT states citing the administrators. BBC News discloses Exchange said on its website that it would not grant any extensions on its bonds while in administration. The insurer, as cited by BBC, said if it recapitalized, its bonds would remain valid. It added that if the company is liquidated, any developer making claims on the bonds will rank as unsecured creditors, meaning they are last in line for repayment, BBC recounts. According to the FT, Neil Mather, joint administrator and partner at Begbies Traynor, the corporate insolvency group, said "The directors hope that a refinancing of the business will be possible." "The protection of administration has been sought while the new investor awaits clearance for its proposals from the Financial Services Authority," the FT quoted Mr. Mather as saying. Begbies however was hopeful of a sale if a refinancing was not possible, noting it had already been in contact with interested parties, the FT says. A sale could be announced as early as this week, the FT adds. The Exchange Insurance Company Limited ("ExCo") -- -- http://www.exchangebond.com/-- is a European specialist general insurer authorized and regulated by the Financial Services Authority (FSA), with headquarters in the City of London. ExCo also maintains an administrative operations centre in Essex and an administrative office in Dublin. * * * As reported in the Troubled Company Reporter, A.M. Best Co. downgraded on February 27, 2009, the financial strength rating to C (Weak) from B (Fair) and the issuer credit rating to "ccc" from "bb" of The Exchange Insurance Company Limited (Exchange) (United Kingdom). The ratings remain under review, but the implications of the review have been revised to negative from developing. FORE-WOOD LTD: Calls in Joint Administrators from BDO Stoy ---------------------------------------------------------- Geoffrey Stuart Kinlan and David Harry Gilbert of BDO Stoy Hayward LLP were appointed joint administrators of Fore-Wood Ltd. on Feb. 17, 2009. The company can be reached through BDO Stoy Hayward at: 55 Baker Street London W1U 7EU England ITV PLC: Overhauls Directors' Bonus Scheme ------------------------------------------ Yvette Essen at The Daily Telegraph reports that ITV plc has overhauled its directors' bonus scheme. ITV, the report relates, has created a new incentive plan to reward 130 senior managers. According to the report, bonuses in 2009 are likely to be made as awards of shares. The report states it is estimated the change of scheme could lead to four executive directors, including chairman Michael Grade, receiving a new share award worth up to GBP2 million. The report discloses under the plan, Mr. Grade, who was paid GBP934,000 in salary and benefits, plus a GBP235,000 performance bonus, which is due in shares, in 2008, would be eligible for an award of up to 100pc of salary, although the maximum award level has been reduced from 150pc of salary. However, executive directors will not be awarded any increase in basic pay, the report notes. About ITV plc ITV plc -- http://www.itvplc.com/�- is a United Kingdom-based advertising funded broadcaster. The Company also operates as an advertising funded media owner in the United Kingdom across all media, including television, radio, press, cinema, outdoor and the Internet. As a producer, ITV makes hours of network television. Its digital channels include ITV2, ITV3, ITV4 and Citv. ITV also makes programs for the BBC, Channel 4, five, Sky and other broadcasters. ITV produces programs watched on screens from San Francisco to Sydney. In addition, it produces a range of products related to ITV programs, such as digital video disks (DVDs) and computer games. Its online properties include itv.com, itvlocal.com and Friends Reunited * * * As reported in the Troubled Company Reporter-Europe on March 9, 2009, Standard & Poor's Ratings Services lowered its long-term corporate credit and senior unsecured debt ratings on U.K. private TV broadcaster ITV PLC to 'BB-' from 'BB+'. The outlook is stable. Simultaneously, the ratings were removed from CreditWatch where they had been placed with negative implications on Jan. 27, 2009. At the same time, S&P affirmed its 'B' short-term corporate credit rating on ITV. The '4' recovery rating on all of ITV's outstanding bonds is unchanged. The '4' recovery rating indicates S&P's expectation of average (30%-50%) recovery for unsecured creditors in the event of a payment default. On March 9, 2009, the TCR-Europe reported that Moody's Investors Service downgraded ITV plc's senior unsecured ratings, Corporate Family Rating and Probability of Default rating, to Ba2 (from Ba1). The rating outlook for ITV is negative. LIGHTWATER PLAYING: Taps Joint Administrators from Baker Tilly --------------------------------------------------------------- Matthew Richard Meadley Wild and Geoffrey Lambert Carton-Kelly of Baker Tilly Restructuring and Recovery LLP were appointed joint administrators of The Lightwater Playing Field Association Ltd. on Feb. 17, 20009. The company can be reached through Baker Tilly Restructuring and Recovery LLP at: The Clock House 140 London Road Guildford Surrey GU1 1UW England LLOYDS BANKING: Fitch Cuts Individual Rating to 'E' from 'C/D' -------------------------------------------------------------- Fitch Ratings has affirmed the Lloyds Banking Group plc and its subsidiaries, Lloyds TSB Bank plc, HBOS plc and Bank of Scotland plc, at Long-term Issuer Default 'AA-' (AA minus) and Short-term IDR 'F1+' respectively. This action follows the announcement of LBG's participation in the UK government's asset protection scheme and the conversion of GBP4 billion preference shares issued to H.M Treasury in October 2008 into ordinary equity. The IDR affirmations reflect Fitch's view that while significant near-term challenges remain, the risks are mitigated by continued very strong support for LBG from the UK authorities. The IDR Outlooks remain Stable. Fitch has also downgraded LBG's, LTSB's and BOS's Individual ratings to 'E' from 'C/D', 'B/C' and 'C/D' respectively and removed them from Rating Watch Negative, reflecting the significant deterioration in certain asset portfolios over recent months that has necessitated the additional support measures announced over the weekend. The acquisition of HBOS plc by Lloyds TSB Group plc, which was announced in September 2008, may prove over the longer-term to generate material strategic benefits for the smaller acquirer, but in Fitch's opinion the short-term consequences have been severe. Following the preference share conversion, LBG will be 65%-owned by the UK government (assuming no take-up by existing shareholders) and this figure would rise to 77% assuming the government exercised an option to convert the GBP15.6 billion 'B' shares issued to the UK government as the fee for participation in the APS. Of the GBP260 billion assets and exposures that will be transferred into the APS, 83% were HBOS originations and reflected HBOS's huge exposure to elements of the UK economy that have deteriorated rapidly, such as the property investment, development, house building and leveraged buyout sectors as well as parts of its retail mortgage portfolio. The future direction of the group's Individual ratings will depend on the pace and severity of continued operating environment pressure, together with the group's success in transitioning the former HBOS businesses to a lower risk footing as well as reshaping the enlarged group's liability base to reduce its vulnerability to short-term funding markets in a 'post-guarantee' funding environment. Upon completion of the APS transaction LBG's core Tier 1 capital ratio will increase sharply to around 14.5%, leaving it well-equipped to meet the mortgage and small business lending targets agreed with the UK government. Fitch has downgraded the preference shares issued by LBG, LTSB and BOS to 'BB-' (BB minus) from 'BB', and has also downgraded upper tier 2 subordinated debt instruments issued by group entities to 'BB' from 'A+'. These downgrades reflect the agency's view that deferral risk has increased significantly for banks that are in receipt of substantial public funds. This risk is heightened by the recognition that there is significant capital and financial flexibility to be retained by deferring on such instruments and that the replacement of government preference shares with common equity may result in a significantly elevated risk that market investors in the group's hybrid capital could be expected to share this burden with the UK taxpayer. All rated preference shares and upper tier 2 instruments remain on Rating Watch Negative to reflect this continued uncertainty. The upper tier 2 instruments have been rated one notch higher than preference shares at 'BB' to reflect their higher recovery prospects. The rating action has no impact on the rating of the residential mortgage covered bonds issued by LTSB, BOS and Bank of Scotland Intelligent Finance, all of which are rated 'AAA'. Rating actions taken: Lloyds Banking Group plc -- Long-term IDR: affirmed at 'AA-' (AA minus); Outlook Stable -- Short-term IDR: affirmed at 'F1+' -- Senior unsecured debt: affirmed at 'AA-' (AA minus) -- Subordinated debt: affirmed at 'A+' -- Preference shares: downgraded to 'BB-' (BB minus) from 'BB'; remains on Rating Watch Negative -- Individual rating: downgraded to 'E' from 'C/D'; removed from Rating Watch Negative -- Support rating: affirmed at '1' -- Support Rating Floor: affirmed at 'AA-' (AA minus) Lloyds TSB Bank plc -- Long-term IDR: affirmed at 'AA-' (AA minus); Outlook Stable -- Short-term IDR and debt: affirmed at 'F1+' -- Commercial paper: affirmed at 'F1+' -- Guaranteed debt: affirmed at 'AAA' -- Senior unsecured debt: affirmed at 'AA-' (AA minus) -- Subordinated debt: affirmed at 'A+' -- Upper tier 2 debt: downgraded to 'BB' from 'A+'; placed on Rating Watch Negative -- Preference shares: downgraded to 'BB-' (BB minus) from 'BB'; remains on Rating Watch Negative -- Individual rating: downgraded to 'E' from 'B/C'; removed from Rating Watch Negative -- Support rating: affirmed at '1' -- Support Rating Floor: affirmed at 'AA-' (AA minus). HBOS plc: -- Long-term IDR: affirmed at 'AA-' (AA minus); Outlook Stable -- Short-term IDR and debt: affirmed at 'F1+' -- Senior unsecured debt: affirmed at 'AA-' (AA minus) -- Subordinated debt: affirmed at 'A+' -- Upper tier 2 debt: downgraded to 'BB' from 'A+'; placed on Rating Watch Negative -- Support rating: affirmed at '1' Bank of Scotland plc: -- Long-term IDR: affirmed at 'AA-' (AA minus); Outlook Stable -- Short-term IDR and debt: affirmed at 'F1+' -- Commercial paper: affirmed at 'F1+' -- Guaranteed debt: affirmed at 'AAA' -- Senior unsecured debt: affirmed at 'AA-' (AA minus) -- Subordinated debt: affirmed at 'A+' -- Upper tier 2 debt: downgraded to 'BB' from 'A+'; placed on Rating Watch Negative -- Preference shares: downgraded to 'BB-' (BB minus) from 'BB'; remains on Rating Watch Negative -- Individual rating: downgraded to 'E' from 'C/D'; removed from Rating Watch Negative -- Support rating: affirmed at '1' -- Support Rating Floor: affirmed at 'AA-' (AA minus). MECOM GROUP: Shares Plunge 16% Following Debt Breach Warning ------------------------------------------------------------ Rowena Mason at The Daily Telegraph reports that Mecom Group plc's shares fell by 16% on Friday, March 6, after a newspaper group warned it could breach a covenant by the end of the month if it fails to sell its German and Norwegian titles. According to the report, the group closed down 0.6 � or 16pc � at 3.2p. Proposed Disposals of Mecom Germany and Mecom North Norway On January 13, 2009, the the group announced that (through the German Seller) it had conditionally agreed to sell Mecom Germany to Eden Holding (a subsidiary of M. DuMont Schauberg) for a total consideration of EUR152.0 million (GBP136.0 million), subject to the terms and conditions of the German Disposal Agreement. On February 18, 2009, the group also announced that (through the Norwegian Seller) it had conditionally agreed to sell Mecom North Norway to Polaris Media for a total consideration of NOK675.0 million (GBP66.3 million), subject to the terms and conditions of the Norwegian Disposal Agreement. Completion of each of the disposals is conditional upon shareholders' approval by way of separate resolutions, in accordance with the Listing Rules, due to the size of Mecom Germany and Mecom North Norway respectively relative to that of the group. For the avoidance of doubt, the Disposals are not inter-conditional. Shareholders' approval will be sought at a General Meeting to be held on March 23, 2009 at 10:30 a.m. Background to and Reasons for the Disposals On August 20, 2008, the group announced at its interim results that it had delivered a stable first half performance and that, assuming no significant adverse change in the markets in which it operates, a similar second half performance was expected. On October 23, 2008, the group issued a trading statement in which it stated that a recent worsening in the economic outlook in all of its geographies had led to deterioration in the advertising market outlook for the remainder of 2008 and that, while actions had been taken to mitigate revenue decline, management believed that full year EBITDA would fall approximately 10 per cent below market expectations. On December 22, 2008, the group announced that it was continuing to focus on managing its affairs to ensure ongoing compliance with its banking facilities. The group announced that it had entered into constructive discussions with its lending banks with a view to agreeing certain amendments to its debt facilities so as to provide long term financial stability to the group, and that the banks had agreed to defer the next covenant test date from December 31, 2008 to February 28, 2009 to facilitate these discussions. In addition, the group stated that, in the light of the continuing adverse market conditions, it needed to reduce leverage and it was confident of reaching an agreement on a long term solution, including disposals, in the first quarter of 2009. Covenant Test Deferred On February 27, 2009, the group announced that it had agreed a further deferral of the December 31, 2008 covenant test date to March 31, 2009. The grant of the further deferral is subject to the directors giving a unanimous and unqualified recommendation to shareholders to vote in favor of the German disposal and to shareholders approving the German disposal. The current terms of the Facilities Agreement require that, in respect of the current testing period, the ratio of the group's EBITDA to interest payable should be not less than 3.5:1 and the ratio of the group's borrowings to EBITDA should not exceed 3.5:1. In the absence of an agreement to amend these terms, which the group is currently discussing with its lending banks, the directors believe that the group would be in breach of such terms at March 31, 2009. On April 13, 2007, the group entered into the VSS Loan Agreement in connection with the acquisition of Mecom Germany. The terms of the VSS Loan Agreement provide that the group must repay approximately GBP30.6 million to VSS on April 12, 2009. Potential Breach of Covenant While the directors are confident that the group will be able to reach agreement with its lending banks and with VSS, in the absence of such agreement, it would, at March 31, 2009, be in breach of the covenants under the Facilities Agreement and would be unable to repay the amount due under the VSS Loan Agreement. In such circumstances the Continuing Group would have a total funding shortfall (comprising refinancing of the group's Facilities Agreement, the VSS Loan Agreement and ongoing cash flows under a sensitized case of the group's trading and working capital position) of approximately EUR678.1 million (GBP606.6 million) for the 12 months from the date of this document. The directors believe that the disposals are in line with the group's intention to strengthen its balance sheet and ensure that the group, with its remaining Dutch, Danish, Norwegian and Polish businesses, is in a stronger position to operate successfully in the current market conditions. The directors also believe the terms of the disposals deliver value to shareholders by using the proceeds from the disposals to reduce significantly group borrowings, and are confident that the strategy of reducing debt and focusing on Mecom's remaining assets will greatly improve the position and prospects of the group. About Mecom Group plc Headquartered in London, Mecom Group plc -- http://www.mecom.co.uk -- is engaged in the acquisition and operation of newspaper publishing and content businesses in Europe. The company owns over 300 titles in its five divisions, with operations in the Netherlands, Denmark, Norway, Germany and Poland, together publishing approximately 30 million copies a week. PRISTINE DRY: Names Joint Administrators from Tenon Recovery ------------------------------------------------------------ Alexander Kinninmonth and Nigel Ian Fox of Tenon Recovery were appointed joint administrators of Pristine Dry Cleaners Ltd. on Feb. 23, 2009. The company can be reached at: Pristine Dry Cleaners Ltd. 54 South Western Crescent Parkstone Poole Dorset BH14 8RR England REXAM PLC: Moody's Affirms 'Ba2' Subordinated Debt Ratings ---------------------------------------------------------- Moody's Investors Service has affirmed Rexam's Baa3 senior unsecured and Ba2 subordinated debt ratings but changed the outlook to negative from stable. Rainer Neidnig, lead analyst at Moody's for Rexam, said: "The rating action reflects primarily weaker than expected leverage ratios by the end of 2008. Moreover, the negative outlook considers the overall difficult economic environment which might make it challenging for Rexam to markedly reduce leverage near- term". Neidnig went on: "At the same time the rating affirmation reflects Moody's view that Rexam's operating performance should remain relatively resilient in the current recessionary environment." Based on Rexam's preliminary results Moody's calculates a normalized Debt/EBITDA ratio of about 3.4x while the rating agency would have expected Debt/EBITDA of 3x or lower for a stable positioning in the Baa3 rating category (normalizations were made to eliminate distorting translation effects from the significant weakening of the Sterling at the end of 2008). Although Moody's would expect Rexam to achieve a relatively resilient performance in the current economic downturn, Moody's would not expect a significant deleverage over 2009 and consider a downgrade should Rexam's leverage not reduce from the level reached at the end of 2009. Moreover, negative rating pressure could arise, should Rexam not manage to achieve at least break-even Free Cash Flow in 2009 on the back of substantially reduced capex and lower working capital consumption. In turn, Moody's would consider to stabilize the outlook again upon material positive Free Cash Flow generation in 2009 and evidence of leverage reducing to levels below 3x Debt/ EBITDA. The affirmation of Rexam's Baa3 rating considers in particular Rexam's relatively defensive business profile, the company's track record in adjusting operations to changes in the operating environment, significant flexibility in capital expenditures and dividend payout decisions as well as management's stated commitment to an investment grade rating. Moody's views Rexam's liquidity profile as adequate given its significant headroom under committed credit facilities. As per year end 2008, Rexam had headroom of GBP0.7 billion under its financing arrangements and secured another GBP480 million in committed bilateral credit facilities in early 2009. These facilities should, in Moody's view, well cover the upcoming bond maturity of GBP370 million in March 2009 as well as funding needs from operations over the next 12 months. However, Moody's cautions in this context that Rexam's financing arrangement contain conditionality language in form of a 3.5x Net Debt/EBITDA covenant (as per year end 2008 the relevant ratio was 2.7x according to the respective leverage definition). Outlook Actions: Issuer: REXAM PLC -- Outlook, Changed To Negative From Stable Moody's last rating action on Rexam was to affirm the Baa3 senior unsecured debt ratings with a stable outlook on July 4, 2007. Rexam is the world's leading beverage can producer. It holds the top market position in Europe and South America and is the number three producer in North America. Rexam is also active in rigid plastic packaging, which generated approximately 30% of group revenues. Its customer base is from the pharmaceutical, home and personal care, cosmetics and food industries. Rexam's rigid packaging solutions -- a still highly fragmented market -- include products such as spray samplers, lipstick and mascara cases, and high barrier plastic food containers. In 2008, Rexam generated revenues of GBP4.6 billion. SPERLING RETAIL: Taps Joint Administrators from Grant Thornton --------------------------------------------------------------- Ian Carr and John Whitfield of Grant Thornton UK LLP were appointed joint administrators of Sperling Retail Solutions Ltd. on Feb. 24, 2009. The company can be reached at: Sperling Retail Solutions Ltd. 6 Manor Road Haverhill Suffolk CB9 0EP England TIPES LTD: Appoints Joint Administrators from Smith & Williamson ---------------------------------------------------------------- Stephen John Adshead and Gregory Andrew Palfrey of Smith & Williamson Limited were appointed joint administrators of Tipes Ltd. on Feb. 23, 2009. The company can be reached at: Tipes Ltd. 302 London Road Ipswich Suffolk IP2 0AJ England VISIOCORP PLC: Moody's Withdraws 'Ca' Corporate Family Rating ------------------------------------------------------------- Moody's Investors Service has withdrawn the Ca Corporate Family Rating of Visiocorp plc. The rating is being withdrawn under Moody's Guidelines for the Withdrawal of Ratings in situations associated with Bankruptcies, Reorganisations and Liquidations. Outlook Actions: Issuer: Visiocorp plc -- Outlook, Changed To Rating Withdrawn From Stable Withdrawals: Issuer: Visiocorp plc -- Corporate Family Rating, Withdrawn, previously rated Ca Moody's last rating action on Visiocorp was a confirmation of the Ca corporate family rating on August 7, 2008. Headquartered in the United Kingdom, Visiocorp is a automotive supplier of interior and exterior mirrors. * UK: Begbies Warns Surge in Commercial Property Insolvencies ------------------------------------------------------------- As leading UK property groups rush to raise new cash through large rights issues, the whole sector is seeing rapidly increasing pressure from falling asset values, potential tenant defaults and the lack of liquidity in the banking sector, warns Begbies Traynor, the UK's leading business rescue, recovery and restructuring specialists. Red Flag Begbies Traynor's Red Flag early warning system shows 304 property companies currently facing critical financial problems, many of which are at severe risk of an ultimate insolvency. This represents a considerable escalation from 185 companies with critical problems in the third quarter of 2008 and 221 in the fourth quarter. These latest troubled companies are not major groups, but mainly middle and lower market players with total asset values in their last published accounts of GBP1.1 billion, an average of GBP3.6 million per distressed company. Nick Hood, Senior London Partner at Begbies Traynor, commented: "We're seeing a build up of problems in the commercial property sector, as the real economy in which their tenants operate continues to unravel. The only upside has been the fall in interest costs; however this offers little relief to landlords dealing with escalating tenant defaults and unprecedented difficulty in raising or preserving business funding. "There has been a sharp rise in our caseload in the sector, as lenders are forced to take control of commercial property right across the UK or landlords seek protection from their creditors to allow them time to restructure. In the past three months alone, 171 property companies have started insolvency proceedings, and we believe these numbers will rise sharply as we progress through 2009 and into 2010. We estimate that the number of insolvencies in this sector could reach between 1,200 and 1,600 in 2009. "Companies in distress should seek professional advice and assistance as soon as possible � lenders are willing to renegotiate covenants and repayment schedules particularly if they see a sensible business plan that includes a restructuring and asset disposal program at the very least. The next two years should see the survival of the smartest as well as fittest." Rights Issues Meanwhile, Hammerson, British Land and Land Securities are all mid way through significant rights issues, totaling a c.GBP2 billion cash call on institutional investors. Smaller quoted companies such as Workspace have also been forced to raise significant new cash from the markets. And, in a further indicator of troubled times ahead, Warner Estates has announced that it is in talks with its bankers to address covenant breach issues, a trend which could accelerate through the forthcoming results season as many listed companies are expected to confirm that the fall in their asset values has brought the gap with their loan to value ratios down to very uncomfortable levels. Falling Values in January Last week CB Richard Ellis published bleak figures on commercial property values, revealing that prices fell by a further 3.5% in January, on top of a 27% fall in 2008. While the rate of decline may be slowing, few commentators expect the market to see any meaningful recovery in the short or medium term. Tenants in the News As financially challenged tenants push landlords to concede lower rents, landlords face knock-on problems with their bankers, as basic rental cover covenants are breached. Sir Philip Green's efforts to lower the rental obligations of some of his Arcadia stores tell this tale, while last month's failure of the Stylo CVA reflects the determination of landlords to avoid setting damaging precedents, no matter how many voids this might create. The retail sector is not alone in needing help. A recent major hotel restructuring left a stubborn landlord with ten empty properties in serious need of refurbishment or a rapid change of use. The huge number of pub closures and the failure of such signature businesses as Anthony Worrall-Thompson's restaurant chain show further distress in the troubled leisure sector. Major property companies may be uncomfortable turning to shareholders for help, even if they hope to use at least some of the cash to take advantage of distressed asset purchase opportunities. But the issues for the huge numbers of medium- sized and smaller property players are much more serious. About Begbies Traynor Begbies Traynor -- http://www.begbies-traynor.com/-- is a UK business rescue, recovery and restructuring specialist, providing a partner-led service to stakeholders in troubled businesses. ********* 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 * * *