/raid1/www/Hosts/bankrupt/TCREUR_Public/090317.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
E U R O P E
Tuesday, March 17, 2009, Vol. 10, No. 53
Headlines
G E R M A N Y
AZIZA TECHNOLOGY: Claims Registration Period Ends April 15
BAFRO INDUSTRIEBEDARFS: Claims Registration Period Ends April 21
GEBA IMMOINVEST: Claims Registration Period Ends April 14
IDEKOM GMBH: Claims Registration Period Ends March 31
LBB ANTIQUITATENZUBEHOER: Claims Registration Ends April 6
MAGIC CIRCLE: Claims Registration Period Ends May 8
QIMONDA AG: Talks with Potential Investors to Continue
TYPHOON: Goes Bankrupt After Budget Overruns
I R E L A N D
CERAWARE: Goes Into Liquidation; Owes EUR3 Million to Creditors
ELVA FUNDING: S&P Cuts Ratings on Four Classes of Notes to 'D'
HOLT FUNDING: S&P Junks Rating on Class A Notes from 'B'
PAT KEOGH: Goes Into Liquidation; 34 Jobs Affected
PROVENTUS EUROPEAN: Fitch Junks Ratings on Class E and F Notes
THOMAS READ: Examiner Seeks Court Approval of Survival Plan
K A Z A K H S T A N
MANGISTAU ELECTRICITY: Fitch Puts 'BB+' Rating on Domestic Bond
K Y R G Y Z S T A N
KVANT LLC: Creditors Must File Claims by March 27
N E T H E R L A N D S
IFCO SYSTEMS: S&P Affirms LT Corporate Credit Rating at 'BB-'
P O L A N D
NETIA SA: S&P Affirms Long-Term Corporate Credit Rating at 'B'
TVN SA: S&P Puts 'BB' Corporate Rating on Negative CreditWatch
R U S S I A
NUTRINVESTHOLDING OJSC: S&P Cuts LT Corp. Credit Rating to 'D'
OPIN JSC: Fitch Changes Outlook to Negative; Affirms 'B' Rating
OTP BANK: Fitch Cuts Long-Term Issuer Default Rating to 'BB'
VIMPELCOM: Telenor's Shares Arrested by Russian Bailiff
VIMPELCOM: S&P Says Share Freezing No Effect on Telenor Ratings
S P A I N
IM BANCO: Fitch Downgrades Rating on Class C Notes to 'B'
IM GRUPO: Fitch Lowers Rating on Class E Notes to 'CC'
U K R A I N E
AGROTECHMETINVEST LLC: Creditors Must File Claims by March 26
CHRISTIE LLC: Creditors Must File Claims by March 26
INVEST-R LLC: Court Starts Bankruptcy Supervision Procedure
KHONIAKOV AGRICULTURAL: Creditors Must File Claims by March 26
PRIDNEPROVSKAYA ENGINEERING: Claims Filing Period Ends March 26
SCORPION AND K: Court Starts Bankruptcy Supervision Procedure
U N I T E D K I N G D O M
BROOKLANDS EURO: Fitch Junks Ratings on Three 2001-1 Notes
BROOKLANDS EURO: Fitch Junks Ratings on Six 2002-1 Notes
BROOKLANDS EURO: Fitch Junks Ratings on Four 2002-2 Notes
BROOKLANDS EURO: Fitch Junks Ratings on Five 2004-1 Notes
BROOKLANDS EURO: Fitch Junks Ratings on Five 2005-1 Notes
CORNHILL RETAIL: Appoints Joint Administrators from Tenon Recovery
CPC STAINLESS: Business Put Up for Sale
DECO 8: Fitch Junks Ratings on Three Classes of Notes
EUROPEAN PROPERTY: Fitch Cuts Rating on Class E Notes to 'BB'
GKN HOLDINGS: S&P Cuts Long-Term Corporate Credit Rating to 'BB+'
GLOBE PUB: Says Will Breach Debt Covenants
GLOBE PUB: Fitch Puts 'BB' Rating on Class B1 Notes on Watch Neg.
ITIC LTD: Brings in Joint Administrators from Tenon Recovery
KAUPTHING BANK: Gets Court Consent to Apply for Judicial Review
LOCKLEY STAINLESS: Business Put Up for Sale
LUXFER HOLDINGS: Moody's Confirms 'B2' Corporate Family Rating
MCMENEMY HILL: Taps Joint Administrators from Tenon Recovery
METRIX FUNDING: Moody's Reviews 'Ba2' Ratings on Three Notes
NORWEGIAN LOG: Calls in Joint Administrators
PLASPUGS LIMITED: Goes Into Administration
PROMINENT CMBS: Fitch Junks Ratings on Three Classes of Notes
SCHLEGEL AUTOMOTIVE: Owner Moves to Avoid Bankruptcy
SPLAYTTE DEVELOPMENTS: Appoints Administrators from Grant Thornton
TAYLOR WIMPEY: Still Faces Significant Default Risk, Fitch Says
TECHPLAST LTD: Taps Joint Administrators from Grant Thornton
TURNER LANGDALE: Appoints Joint Administrators from PwC
* EUROPE: Moody's Reviews Ratings on 84 Notes for Likely Downgrade
* Large Companies with Insolvent Balance Sheet
*********
=============
G E R M A N Y
=============
AZIZA TECHNOLOGY: Claims Registration Period Ends April 15
----------------------------------------------------------
Creditors of Aziza Technology GmbH have until April 15, 2009, to
register their claims with court-appointed insolvency manager.
Creditors and other interested parties are encouraged to attend
the meeting at 2:30 p.m. on May 15, 2009, at which time the
insolvency manager will present his first report.
The meeting of creditors will be held at:
The District Court of Cologne
Room 142
Luxemburger Strasse 101
50939 Cologne
Germany
Claims set out in the insolvency manager's report will be verified
by the court during this meeting. Creditors may also constitute a
creditors' committee or opt to appoint a new insolvency manager.
The insolvency manager can be reached at:
Christoph Seeliger
Am Hofgarten 7
53113 Bonn
Germany
Tel: 0228 249 91 70
Fax: 0228 249 91 79
The court opened bankruptcy proceedings against the company on
March 6, 2009. Consequently, all pending proceedings against the
company have been automatically stayed.
The Debtor can be reached at:
Aziza Technology GmbH
Attn: Michael Wallraven, Manager
Ehrenstr. 69
50672 Cologne
Germany
BAFRO INDUSTRIEBEDARFS: Claims Registration Period Ends April 21
----------------------------------------------------------------
Creditors of Bafro Industriebedarfs GmbH have until April 21,
2009, to register their claims with court-appointed insolvency
manager.
Creditors and other interested parties are encouraged to attend
the meeting at 9:03 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 Osterode am Harz
Hall 12
Amtshof 20
37520 Osterode am Harz
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:
Peter Steuerwald
Bruchtorwall 6
38100 Braunschweig
Tel: 0531-24480-30
Fax: 0531-24480-80
E-mail: psteuerwald@hausherr-steuerwald.de
The court opened bankruptcy proceedings against the company on
March 11, 2009. Consequently, all pending proceedings against the
company have been automatically stayed.
The Debtor can be reached at:
Bafro Industriebedarfs GmbH
Attn: Matthias Teubner, Manager
Dolomitstrasse 19
37431 Bad Lauterberg
Germany
GEBA IMMOINVEST: Claims Registration Period Ends April 14
---------------------------------------------------------
Creditors of GEBA ImmoInvest GmbH have until April 14, 2009, to
register their claims with court-appointed insolvency manager.
Creditors and other interested parties are encouraged to attend
the meeting at 10:35 a.m. on May 14, 2009, at which time the
insolvency manager will present his first report.
The meeting of creditors will be held at:
The District Court of Cologne
Room 1216
Luxemburger Strasse 101
50939 Cologne
Germany
Claims set out in the insolvency manager's report will be verified
by the court during this meeting. Creditors may also constitute a
creditors' committee or opt to appoint a new insolvency manager.
The insolvency manager can be reached at:
Jana Dettmer
Weyerstrasse 54
50676 Cologne
Germany
The court opened bankruptcy proceedings against the company on
March 5, 2009. Consequently, all pending proceedings against the
company have been automatically stayed.
The Debtor can be reached at:
Geba ImmoInvest GmbH
Mittelstr. 12-14 c
50672 Cologne
Germany
Attn: Heinz Schlier, Manager
Brunsbuetteler Str. 14
50737 Cologne
Germany
IDEKOM GMBH: Claims Registration Period Ends March 31
-----------------------------------------------------
Creditors of IDEKOM GmbH have until March 31, 2009, to register
their claims with court-appointed insolvency manager.
Creditors and other interested parties are encouraged to attend
the meeting at 11:15 a.m. on May 5, 2009, at which time the
insolvency manager will present his first report.
The meeting of creditors will be held at:
The District Court of Chemnitz
Insolvency Tribunal
Hall 3.011
Fuerstenstr. 21-23
09130 Chemnitz
Germany
Claims set out in the insolvency manager's report will be verified
by the court during this meeting. Creditors may also constitute a
creditors' committee or opt to appoint a new insolvency manager.
The insolvency manager can be reached at:
Klaus Siemon
Strasse der Nationen 51
09111 Chemnitz
Tel: 0371 472990
Fax: 0371 4729950
E-mail: ra siemon ch@-online.de
The court opened bankruptcy proceedings against the company on
March 11, 2009. Consequently, all pending proceedings against the
company have been automatically stayed.
The Debtor can be reached at:
IDEKOM GmbH
Attn: Gerd Kampf and
Matthias Herpich, Managers
Ringstr. 1
09366 Stollberg
Germany
LBB ANTIQUITATENZUBEHOER: Claims Registration Ends April 6
----------------------------------------------------------
Creditors of LBB Antiquitatenzubehoer 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 10:45 a.m. on April 22, 2009, at which time the
insolvency manager will present his first report.
The meeting of creditors will be held at:
The District Court Heilbronn
Hall 4
Rollwagstr. 10a
74072 Heilbronn
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. Norbert Hill
Gebelsbergstrasse 35
70199 Stuttgart
Germany
Tel: 0711/601770-0
Fax: 0711/601770-60
The court opened bankruptcy proceedings against the company on
March 10, 2009. Consequently, all pending proceedings against the
company have been automatically stayed.
The Debtor can be reached at:
LBB Antiquitatenzubehoer GmbH
Attn: Klaus Toennies, Manager
Massenbacher Strasse 30
74193 Schwaigern
Germany
MAGIC CIRCLE: Claims Registration Period Ends May 8
---------------------------------------------------
Creditors of Magic Circle Music GmbH have until May 8, 2009, to
register their claims with court-appointed insolvency manager.
Creditors and other interested parties are encouraged to attend
the meeting at 9:45 a.m. on June 10, 2009, at which time the
insolvency manager will present his first report.
The meeting of creditors will be held at:
The District Court of Hamburg
Hall B 405
Fourth Floor Annex
Civil Justice Bldg.
Sievkingplatz 1
20355 Hamburg
Germany
Claims set out in the insolvency manager's report will be verified
by the court during this meeting. Creditors may also constitute a
creditors' committee or opt to appoint a new insolvency manager.
The insolvency manager can be reached at:
Dr. Olaf Buechler
Herrengraben 3
20459 Hamburg
Germany
The court opened bankruptcy proceedings against the company on
March 10, 2009. Consequently, all pending proceedings against the
company have been automatically stayed.
The Debtor can be reached at:
Magic Circle Music GmbH
Attn: John Pettigrass, Manager
Theodorstrasse 41 p
22761 Hamburg
Germany
QIMONDA AG: Talks with Potential Investors to Continue
------------------------------------------------------
Talks with potential investors regarding a solution to keep
Qimonda in operation will continue beyond the end of March 2009,
Qimonda AG said in a March 13 statement.
"Various investors have signaled their interest, but as yet there
are no binding offers on the table. As anticipated, it will not
be possible to reach a conclusive solution by the end of March,"
preliminary insolvency administrator Dr. Michael Jaffe said after
a meeting with the creditors committee on Friday.
The employees of the insolvent Qimonda AG and Qimonda Dresden OHG
will be able to claim compensation by means of statutory
insolvency payments until the end of March 2009. By the end of
March, the bankruptcy court in Munich will also have received the
preliminary insolvency administrator's report on the basis of
which the court will make a decision on whether to open insolvency
proceedings.
From April 1, 2009 -- the expected opening date for insolvency
proceedings -- the company would have to cover all wage and salary
payments itself. Continuing production at full cost on the same
scale as before can be ruled out, however, due to the sustained
price decline in the chip industry and the enormous losses that
would result. For this reason, production in Dresden will
gradually be ramped down and put into "standby mode" by March 31,
2009. This will allow production to be resumed at any time,
should it be possible to successfully conclude negotiations with
potential investors.
A transfer company is to be formed to keep open the option of
continuing production and business operations whiles preserving
the interests of both employees and creditors. From April 1,
2009, employees at German sites are to be offered reassignment to
the transfer company, as soon as financing has been secured.
Talks with the works council regarding details of future
employment in the transfer company and other possible personnel
measures, are to be concluded in the near future.
It is also planned that a core team led by the insolvency
administrator will continue to work within the company in order to
maintain the leading Buried Wordline Technology and oversee the
investor process.
"Ramping down production, maintaining the Buried Wordline
Technology and reassigning employees to the transfer company are
vital prerequisites which enable us to pursue a potential solution
with the aim of preserving as many jobs as possible" said Dr.
Jaffe.
Since petitioning for insolvency on January 23, the memory chip
manufacturer has drastically cut costs and, by concentrating on
the competitive Buried Wordline Technology, laid the necessary
foundations for long-lasting future operations. Qimonda's leading
position in DDR3 technology was also recently confirmed by Intel.
"This high technology is of great significance for Germany as an
industrial center and for Europe overall. We will continue to
make this clear in the ongoing talks with policy makers in Saxony,
Bavaria, Germany, Portugal and the European Union. Qimonda is a
key component of the European microchip industry," said Kin Wah
Loh, CEO of Qimonda AG.
No final decisions have been reached as yet with regard to the
future structure of the company. This also applies to a decision
over whether parts of the business which are able to continue
operations will be retained by Qimonda or transferred to a new
company belonging to new investors. In the latter case, or if no
investors can be found to finance Qimonda's continued operation,
Qimonda AG, which would legally be dissolved with the opening of
insolvency proceedings, would most likely be liquidated.
As reported in the Troubled Company Reporter, Qimonda AG filed an
application with the local court in Munich, Germany, on
January 23, 2009, to open insolvency proceedings. Their goal is
to reorganize the companies as part of the ongoing restructuring
program.
According to Bloomberg News, Qimonda filed for insolvency after a
plan announced in December for a loan of EUR325 million
(US$418 million) from the German state of Saxony, Infineon
Technologies AG, Europe's second-largest maker of semiconductors,
and an unidentified Portuguese bank wasn't completed in time.
Qimonda AG (NYSE: QI) -- http://www.qimonda.com/-- is a leading
global memory supplier with a diversified DRAM product portfolio.
The company generated net sales of EUR1.79 billion in financial
year 2008 and had -- prior to its announcement of a repositioning
of its business -- approximately 12,200 employees worldwide, of
which 1,400 were in Munich, 3,200 in Dresden and 2,800 in Richmond
(Virginia, USA). The company provides DRAM products with a focus
on infrastructure and graphics applications, using its power
saving technologies and designs. Qimonda is an active innovator
and brings high performance, low power consumption and small chip
sizes to the market based on its breakthrough Buried Wordline
technology.
TYPHOON: Goes Bankrupt After Budget Overruns
--------------------------------------------
High-profile German production house Typhoon has filed for
bankruptcy protection after budget overruns on its new drama
series "Im Angesicht des Verbrechens" (In the Face of Crime),
Hollywood Reporter's Scott Roxborough reports.
According to the report, Typhoon, run by former RTL Television
program head Marc Conrad, is producing the series for German
public television with famed director Dominik Graf attached,
however, Cologne-based network WDR balked at the series' budget,
forcing Typhoon to file for the local equivalent of Chapter 11.
=============
I R E L A N D
=============
CERAWARE: Goes Into Liquidation; Owes EUR3 Million to Creditors
---------------------------------------------------------------
Ian Kehoe at The Sunday Business Post reports that Ceraware, the
holding company behind tile and bathroom fittings chain BTW
previously known as Tilesavers, has gone into liquidation
with debts of EUR3 million.
According to the report, the collapse of the property and
construction sectors has led to a fall-off in business.
Tom Murray of Dublin insolvency firm Friel Stafford has been
appointed liquidator of the company, which owns five bathroom and
tile shops across Ireland, the report discloses. The report notes
10 other BTW outlets, which operate under franchise, are not
affected by the liquidation.
The report relates according to its statement of affairs, Ceraware
owes creditors EUR3.09 million, including EUR320,000 to the
Revenue Commissioners. The company, which has more than 150
creditors, had assets of just EUR78,000 when the liquidator was
appointed, the report states.
Irish Clay and Owens DDB are among the company's creditors, the
report adds.
The report recalls at the time of the rebranding from Tilesavers
to BTW in 2006, the company invested in a EUR1.25 million
expansion plan. The company, the report recounts, planned to
increase annual turnover to EUR32 million by 2008.
ELVA FUNDING: S&P Cuts Ratings on Four Classes of Notes to 'D'
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'D' from 'CCC-' its
credit ratings on four classes of notes issued by Elva Funding
PLC.
The rating actions reflect S&P's view that losses incurred through
credit events in the underlying portfolio mean that, in S&P's
opinion, affected noteholders are unlikely to be paid in full.
Ratings List
Elva Funding PLC
US$62.5 Million Secured Credit-Linked Floating and
Variable-Rate Notes Series 2007-10
Ratings Lowered
Rating
------
Class To From
----- -- ----
B D CCC-
B1 D CCC-
C1 D CCC-
C2 D CCC-
HOLT FUNDING: S&P Junks Rating on Class A Notes from 'B'
--------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'CCC-' from 'B' and
removed from CreditWatch negative the rating on the class A notes
issued by Holt Funding 2008-1 Ltd.
This rating action reflects the rating downgrades on several of
the obligors in the portfolio securing the transaction and S&P's
continuing concerns that S&P highlighted when the ratings on the
notes were previously lowered to 'B' from 'A+' and kept on
CreditWatch negative (Nov. 12, 2008). Since then, the weighted-
average rating of the portfolio has, in S&P's opinion, migrated to
the 'CCC' level from 'B'.
Previously identified concerns include S&P's assessment of the
potential affect on the transaction from unhedged non-euro assets
in the portfolio following the default of the original currency
swap counterparty.
S&P understands that a replacement swap counterparty has not yet
been found. As a result S&P considers that the transaction
continues to be exposed to a material level of foreign exchange
risk.
In S&P's opinion, the combination of defaults and downgrades in
the portfolio and the presence of unhedged currency risk in the
transaction have increased the likelihood that investors may
suffer losses on the class A notes to a level consistent with a
rating of 'CCC-'.
Holt Funding 2008-1 closed on May 12, 2008, and is a static cash
flow transaction collateralized by a pool of non-investment-grade
corporate loans.
PAT KEOGH: Goes Into Liquidation; 34 Jobs Affected
--------------------------------------------------
RTE Business reports that Limerick-based car dealership Pat Keogh
Limited has closed and gone into liquidation after being hit by
very difficult trading conditions.
The report relates according to a company spokesperson, sales of
new cars had fallen by up to 80% in the last six months.
The spokesperson, as cited by the report, said a liquidator is to
be appointed shortly.
The company's closure resulted in the loss of 34 jobs, the report
notes.
PROVENTUS EUROPEAN: Fitch Junks Ratings on Class E and F Notes
--------------------------------------------------------------
Fitch Ratings has downgraded six classes of Proventus European ABS
CDO's notes. The agency has removed all six classes from Rating
Watch Negative, and assigned a Stable Outlook to Class A, B, C and
D notes.
Rating actions:
-- EUR12 million Class A (ISIN XS0283671716): downgraded to
'BBB' from 'AAA'; removed from RWN; assigned a Stable Outlook
-- EUR28 million Class B (ISIN XS0283673415): downgraded to
'BB+' from 'AA'; removed from RWN; assigned a Stable Outlook
-- EUR20 million Class C (ISIN XS0283674223): downgraded to 'BB'
from 'A'; removed from RWN; assigned a Stable Outlook
-- EUR25 million Class D (ISIN XS0283674819): downgraded to 'B'
from 'BBB'; removed from RWN; assigned a Stable Outlook
-- EUR20 million Class E (ISIN XS0283675626): downgraded to
'CCC' from 'BB'; removed from RWN; assigned a Recovery Rating
of 'RR4'
-- EUR10 million Class F (ISIN XS0283676434): downgraded to
'CCC' from 'B'; removed from RWN; assigned a Recovery Rating
of 'RR4'
The downgrades reflect Fitch's view on the credit risk of the
rated tranches following the release of the agency's revised
Structured Finance CDO rating criteria on December 16, 2008, as
well as the limited credit enhancement available on the notes.
The application of the new SF CDO rating criteria incorporates
Fitch's view on industry and vintage concentration risks and the
propensity for low recoveries upon default, particularly for thin
tranches. While the portfolio contains only investment-grade
assets, the class F note would not withstand the loss of a single
asset of average size (0.47% of the portfolio), and the class E
note would not withstand the loss of two such average size assets.
Fitch has assigned Recovery Ratings of 'RR4' to these two classes
reflecting the expectation of long term interest cash flows with
significant impairment of principal in case of default. The class
A notes remain investment grade due to the fact that the notes can
withstand approximately 12 average defaults.
In conducting its analysis, Fitch made a three-notch downward
adjustment for any names on RWN under the default analysis of its
Portfolio Credit Model. The weighted average portfolio quality is
'A+' and 0.6% of the portfolio is on RWN. There are no defaulted
assets currently.
Proventus European ABS CDO is a seven-year replenishing synthetic
transaction referencing a high grade asset-backed securities
portfolio from the balance sheet of Mizuho Corporate Bank, Ltd
(rated 'A+'/'F1' Stable Outlook).
The issuer and Mizuho (as the credit default swap counterparty)
have entered into one credit default swap on a reference portfolio
of ABS ties with an initial notional balance of EUR2 billion. The
credit-linked notes represent the mezzanine tranche of the CDS
between the unfunded senior tranche and the first-loss threshold.
Currently the credit enhancement for Class A totals 5.4% and is
provided by the Class B notes (1.4%), the Class C notes (1%), the
Class D notes (1.25%), the Class E notes (1%), the Class F notes
(0.5%) and the current first loss threshold (0.25%).
THOMAS READ: Examiner Seeks Court Approval of Survival Plan
-----------------------------------------------------------
RTE Business reports that Kieran McCarthy, the examiner of the
Thomas Read Group, has asked the High Court to approve his
survival plan for the companies rather than one proposed by the
group's largest creditor, ACCBank.
The report relates Mr. McCarthy has told the court he believes
adoption of his scheme offers a reasonable prospect of
survival for the remaining companies provided a number of
conditions are met.
ACC wants the group put into receivership, the report discloses.
The bank, the report recalls, lent money to buy leases for a
number of the the group's premises. It contested a reduced
valuation put on the premises by the examiner, the report
recounts.
Marks & Spencer, which owns The Bailey, is also opposing the
present survival plan for the group, the report notes.
The reports states the examinership hearing will resume tomorrow,
March 18.
Lyndon MacCann SC, for the examiner, as cited by the report, said
his client had 'bent over backwards' to facilitate ACC, including
extending the bidding process to allow the bank to make a bid for
the group.
Survival Plan
On March 3, 2009, the Troubled Company Reporter-Europe reported
that according to The Sunday Business Post's Ian Kehoe and Gavin
Daly, under the examiners' survival plan for Thomas Read, the
group's preferential creditors will receive 20 per cent of their
debts, but unsecured creditors will receive only between 0.86 per
cent and 1.4 per cent of their debts.
Debts
As reported in the Troubled Company Reporter-Europe on Dec. 2,
2008, RTE said Guerneville Ltd petitioned the High Court to put
the Thomas Read group of companies into examinership as Sharmane
Ltd, the parent company, was likely or unlikely to be able to pay
its debts.
The group, which employs more than 400 people, racked up debts
of EUR26.7 million, the report disclosed.
Citing Gary McCarthy of Guerneville, the report noted
Diageo Ireland, Heineken Murphy Breweries and Britvic C&C were
among the largest creditors, while the group's banker creditors
included ACC Bank, owed more than EUR15 million; Ulster Bank, owed
EUR5.6 million; AIB, owed EUR3.5 million and Anglo Irish Bank,
owed EUR597,000.
===================
K A Z A K H S T A N
===================
MANGISTAU ELECTRICITY: Fitch Puts 'BB+' Rating on Domestic Bond
---------------------------------------------------------------
Fitch Ratings has assigned Mangistau Electricity Distribution
Network Company's KZT800 million 16% domestic bond due 2013 a
senior unsecured local currency rating of 'BB+'. The rating is on
Rating Watch Negative.
MEDNC's Long-term foreign currency Issuer Default 'BB', Long-term
local currency IDR 'BB+' and National Long-term 'AA-(AA minus)
(kaz)' were also placed on RWN on February 19, 2009 after
Kazakhstan's sovereign ratings were placed on RWN. MEDNC's Short-
term foreign currency IDR is 'B'.
This bond is the fifth issue under MEDNC's domestic bond program
of KZT9,864.5 million. MEDNC plans to use the bond proceeds for
financing capital expenditures. The bond prospectus does not
contain any financial or other covenants.
MEDNC is a state-owned near-monopoly regional electricity
distribution company which services the region of Mangistau (with
the exception of the city of Aktau) located in the south-west of
Kazakhstan near the Caspian Sea. It accounts for 2.5% of
Kazakhstan's transmission and distribution network.
===================
K Y R G Y Z S T A N
===================
KVANT LLC: Creditors Must File Claims by March 27
-------------------------------------------------
Creditors of LLC Branch of Joint Kyrgyz-American Enterprise Kvant
have until March 27, 2009, to submit proofs of claim to:
The company can be reached at:
LLC Branch of Joint Kyrgyz-American Enterprise Kvant
Tel: (+996 312) 53-08-09
(0-772) 43-01-31
=====================
N E T H E R L A N D S
=====================
IFCO SYSTEMS: S&P Affirms LT Corporate Credit Rating at 'BB-'
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it had affirmed its
'BB-' long-term corporate credit rating on IFCO Systems N.V., the
Netherlands-based provider of reusable plastic containers and
pallet-management services and removed it from CreditWatch. The
outlook, which was stable before the CreditWatch placement, is now
negative. The rating had been placed on CreditWatch with negative
implications on Dec. 18, 2008.
"S&P affirmed the rating and removed it from CreditWatch because,
although S&P considers IFCO's liquidity position to be weak, S&P
believes the company's liquidity resources should still be
sufficient to meet its short-term commitments, providing there are
no unexpected adverse operational developments," said Standard &
Poor's credit analyst Izabela Listowska.
This assumes a gradual liquidity improvement over the course of
2009, helped by what S&P considers to be seasonally stronger cash
flow generation in the second half of the year. Furthermore, S&P
views IFCO's commitment to disciplined working-capital management
and capital-investment policy as key factors that will likely help
the company enhance its liquidity in the context of difficult
markets.
Limited liquidity leeway, however, makes us see the company as
susceptible to earnings and cash flow underperformance. In
addition, the company faces significant refinancing needs in 2010.
These factors are reflected in the negative outlook.
The rating continues to be constrained by the company's aggressive
financial profile; the high capital requirements to maintain and
expand asset pool of the relatively stable, but seasonal RPC
business; and high exposure to the mature, cyclical, and low-
margin pallet-management business in the U.S.
The rating is supported by IFCO's leading niche market positions
as Europe's largest independent supplier of RPCs for the transport
of fruit and vegetables and its position as the only recycled-
pallet provider in the U.S., with a nationwide presence.
The outlook is negative owing to S&P's concerns that the currently
difficult markets and likely continued impact from volatile
working-capital movements could impair IFCO's ability to gradually
improve its liquidity. In addition, IFCO is exposed to
significant refinancing risk in 2010.
"The rating is likely to come under pressure if the company's
liquidity erodes further or covenant headroom tightens, for
example, due to earnings and cash flow underperformance, which
could stem, among other reasons, from a sharper-than-expected fall
in demand or loss of major retailer contracts," said Ms.
Listowska. "The rating would also come under pressure if S&P
believes that the company will not be able to comply with adjusted
FFO to debt of more than 20%."
===========
P O L A N D
===========
NETIA SA: S&P Affirms Long-Term Corporate Credit Rating at 'B'
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it affirmed its 'B'
long-term corporate credit rating on Poland-based alternative
fixed-line telecommunications operator Netia S.A. At the same
time and at the company's request, the rating was withdrawn. At
the time of withdrawal, the outlook was stable. Netia has no rated
debt.
At year-end 2008, Netia's liquidity position was in S&P's view
adequate to pursue its broadband growth strategy. The company has
no outstanding debt, since it received PLN455 million in cash
proceeds from the disposal of its stake in mobile operator P4 in
second-quarter 2008, part of which it used to repay all debt.
During 2008, Netia consolidated its position as the leading
alternative telecom provider, behind national telecom incumbent
Telekomunikacja Polska S.A. (TPSA; BBB+/Stable/--). Netia expects
to reach a free operating cash flow breakeven position in 2010.
Although S&P believes the company is well on track to meet this
target, there are uncertainties on its ability to restore
profitability to levels it recorded prior to 2008. Also difficult
to estimate is the potential negative impact of bleak economic
conditions on the pace of broadband growth in 2009 which could, in
S&P's view, potentially lead to some delay in achieving sustained
positive free cash flow generation in 2010, depending on Netia's
level of capital expenditures.
TVN SA: S&P Puts 'BB' Corporate Rating on Negative CreditWatch
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it placed its 'BB'
long-term corporate credit rating on Polish TV broadcaster TVN
S.A. and its 'BB-' debt rating on the EUR215 million notes issued
by TVN Finance PLC on CreditWatch with negative implications.
This follows the announcement of TVN's intention to increase its
stake in the digital TV platform "n" to 51% from 25% resulting in
a total cash outgoing of EUR55.8 million.
The CreditWatch placement reflects S&P's opinion that the
completion of this transaction is likely to negatively affect
TVN's financial profile and could reduce the company's financial
flexibility. This takes into account the reduction of TVN's
liquidity by an initial PLN254 million (EUR55.8 million), a
forthcoming payment in 2009 of about PLN200 million in dividends
on 2008 results, and potential further funding calls by "n." "n"
will likely require ongoing funding or working capital assistance
to develop its business before reaching cash flow breakeven, which
might not occur for 12-18 months. "n" is operating in a rapidly
growing, but competitive, three player digital platform market in
Poland.
"The consolidation of "n" into TVN at this stage of its
development will likely weaken S&P's business risk assessment of
the company on the grounds of lower profitability in the medium
term," said Standard & Poor's credit analyst Michael O'Brien.
"The CreditWatch placement could result in a downgrade of one
notch subject to our review of the transaction and the near- to
mid-term prospects for TVN," said Mr. O'Brien.
TVN's parent and 61.6% shareholder is International Trading and
Investments Holding S.A. Luxembourg. S&P has considered
previously that the sale of stakes in less cash-generative or
cash-consuming businesses by ITI to TVN as a significant ratings
risk for TVN.
"To resolve the CreditWatch placement, S&P will factor in the
effect of the increase of the "n" stake to 51% on TVN's financial
profile, liquidity, business plan, operating performance, and
financial strategy for 2009 and beyond," said Mr. O'Brien.
S&P expects this to include developments related to capital
expenditure plans, a path to positive cash flow generation at "n,"
the potential for TVN to make additional performance-related
payments capped at EUR60 million, as well as a review of TVN's
position on its share buyback purchase as the company enters a
period of potentially reduced financial flexibility. To this end,
S&P will hold further discussions with TVN's management in the
short term.
===========
R U S S I A
===========
NUTRINVESTHOLDING OJSC: S&P Cuts LT Corp. Credit Rating to 'D'
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it had lowered its
long-term corporate credit and Russia national scale ratings on
Russia's largest baby food producer, Nutrinvestholding OJSC, to
'D' from 'SD'. It then withdrew them at the company's request.
The 'D' senior unsecured debt rating and recovery rating of '4' on
US$50 million loan participation notes issued by Winterhaven B.V.
for a loan of a similar amount to Nutritek International Corp.
(part of the Nutrinvestholding group) were also withdrawn. S&P
were not in a position to update S&P's recovery analysis before
withdrawing the issue and recovery ratings because of a lack of
updated financial information.
The rating actions follow a missed coupon payment on the company's
RUR1.2 billion bonds on March 10, 2009 and the extension of some
of its bank loans, which S&P considers a distressed exchange and
tantamount to default under its criteria. In addition, the company
stopped paying interest on its outstanding bank loans in March
2009. The company said it decided to halt interest payments on
its debt as result of a request by some debtholders under
negotiations to reach a standstill agreement.
On Dec. 12, 2008, S&P lowered the long-term corporate credit
rating to 'SD' following Nutritek's failure to repay principal and
make coupon payments on its US$50 million loan participation
notes. At the same time, S&P lowered the issue rating on the
notes to 'D'. Prior to withdrawal, the recovery rating on the
notes was '4', indicating S&P's expectation of average (30%-50%)
recovery.
OPIN JSC: Fitch Changes Outlook to Negative; Affirms 'B' Rating
---------------------------------------------------------------
Fitch Ratings has revised the Outlooks on Russian property
developer JSC OPIN's Long-term Issuer Default Rating and National
Long-term Rating to Negative from Stable. The agency has
simultaneously affirmed OPIN's Long- and Short-term IDRs at 'B'
and National Long-term Rating at 'BBB(rus)'. At the same time,
Fitch has withdrawn OPIN's ratings. The agency will no longer
provide ratings or analytical coverage on this issuer.
The Outlook revisions reflect OPIN's exposure to an increasingly
weak Russian real estate market, which will likely lead to
significantly reduced profitability, asset values and operating
cash flows during 2009 and 2010. Although Fitch expects OPIN to
have adequate headroom under its covenants and sufficient
liquidity to meet its commitments during 2009, it is likely that
2010 will be more challenging if, as expected, weak property
market conditions persist and external financing to the sector
remains rationed.
OTP BANK: Fitch Cuts Long-Term Issuer Default Rating to 'BB'
------------------------------------------------------------
Fitch Ratings has downgraded the Long-term Issuer Default rating
of Russia-based Open Joint Stock Company OTP Bank (OTP Russia) to
'BB' from 'BB+', and revised the Outlook to Negative from Stable.
The rating action reflects the severity of the recession and
ongoing deterioration of the operating environment in Hungary,
which is the core market for the bank's majority shareholder,
Hungary's largest bank, OTP Bank Plc (OTP Hungary, Support '2').
This, coupled with the sharp, and largely co-ordinated, downturn
in other CEE and CIS countries, where OTP Hungary has
subsidiaries, weakens the parent bank's standalone credit profile
and gives rise to greater uncertainty as to its ability and
willingness to support its Russian subsidiary, if needed. The
Outlooks on 'BBB' foreign currency and 'BBB+' local currency Long-
term IDRs were revised to Negative from Stable on March 2, 2009.
At the same time, OTP Russia's ratings continue to be based on the
likely still high propensity of OTP Hungary to provide support to
its subsidiary, if needed. In Fitch's view, it would be difficult
for the Hungarian authorities to restrict any support offered to
OTP Hungary to the parent bank level in light of the authorities'
own expectations that western European banks would support their
Hungarian subsidiaries, in case of need. Fitch also notes that
the IMF programme for Hungary provides for the possibility of
sovereign support for systemically important banks being made
available on a consolidated basis. Nevertheless, in view of the
increased potential for heightened stress across all the major
markets where the OTP group operates, and the considerable size of
the group relative to the balance sheet of the Hungarian
sovereign, in Fitch's view, there has been a material increase in
the risk of cross-border subsidiaries, in particular those outside
of the European Union, not being supported.
The 'D/E' Individual Rating of OTP Russia reflects the previous
rapid growth of high-risk high-yield unsecured retail lending and
foreign currency denominated mortgages, deteriorating asset
quality, with NPLs (loans overdue by more than 90 days) reaching
11% of the gross portfolio at end-January 2009, and growing
reliance on its parent for funding, which accounted for 33% of
total liabilities at end-2008 (end-2007: 17%). The rating also
takes into account the bank's acceptable liquidity position, which
is supported by the parent bank and access to funds provided by
the Russian authorities, and its improved corporate governance and
capitalization. The regulatory capital adequacy ratio reached 17%
at end-January 2009, following a RUB2.5 billion equity
contribution.
OTP Russia's Long-term IDR could be downgraded further if
Hungary's sovereign creditworthiness and operating environment
continue to deteriorate, which would weaken both OTP's standalone
credit profile and the ability of the sovereign to support the
group, in case of need.
With total consolidated assets of US$2.7 billion, OTP Russia was
the 42nd-largest Russian bank at end-2008. OTP Hungary currently
holds a 95.5% stake.
Rating actions:
-- Long-term foreign currency IDR: downgraded to 'BB' from
'BB+'; Outlook revised to Negative from Stable
-- Short-term foreign currency IDR: affirmed at 'B'
-- Support rating: affirmed at '3'
-- Individual rating: affirmed at 'D/E'
-- National Long-term rating: downgraded to 'AA-(rus)' from
'AA(rus)'; Outlook changed to Negative from Stable
VIMPELCOM: Telenor's Shares Arrested by Russian Bailiff
-------------------------------------------------------
The US Federal Court for the Southern District of New York on
Wednesday, March 11, granted Telenor's motion requesting that Alfa
Group companies Altimo, Alpren, Hardlake and Storm be held in
contempt of court for their failure to obey orders of the District
Court and US Court of Appeals for the Second Circuit upholding
Telenor's arbitration award against Alfa Group subsidiary Storm.
Alfa to pay heavy daily fines
The Court found that none of the four Alfa Group companies had
complied with the Court's November 19, 2008 order because they
failed to deposit Storm's Kyivstar shares with the Court and
ordered Alfa to pay fines of US$100,000 per day, beginning on 12
March until they comply with the order, with such amount doubling
to US$200,000 per day 30 days thereafter, and to US$400,000 per
day 30 days after that, and continuing to double every 30 days
until they are no longer in contempt. The Court ordered the four
Alfa Group companies to secure the dismissal of the collusive EC
Venture litigation in Ukraine by March 23 and imposed escalating
fines in similar amounts commencing on March 24 if they fail to
comply. The Court again ordered Storm to sell its Kyivstar shares
by March 23, unless within that period, Alfa has sold its shares
in excess of 5% of Turkcell and Ukrainian High Technologies, with
additional fines to be payable in amounts to be determined if they
do not comply. The Court also ordered the four Alfa companies to
pay Telenor's attorneys' fees and costs incurred in connection
with the contempt motion.
"No Intention of Complying"
In his decision, Judge Gerard E. Lynch of the Southern District of
New York said:
It is now crystal clear that there is only one language that Storm
understands, and only one way to secure compliance. Nothing else
works. And I am finished trying to come up with restrained
responses to Storm's defiance. It is time to do what it takes to
secure compliance. --- [It] is apparent that Storm and the Altimo
Entities have had no intention of complying with the Court's order
of November 2, 2007 …
Telenor's Shares Arrested
Within less than two hours after Judge Lynch read out his decision
at the hearing in New York, Telenor heard rumors that a Russian
bailiff working with Farimex had arrested Telenor's shares in
VimpelCom by serving an arrest order on the National Registry
Company, VimpelCom's Moscow share registrar. This was confirmed
Thursday morning.
"This is a yet another escalation of the attempts to steal our
VimpelCom shares with the aid of Russian courts," said Jan Edvard
Thygesen, Executive Vice President and Head of Telenor's Central
and East European operations. "It seems clear that the arrest
order was served in retaliation for Judge Lynch's decision in New
York, and that the arrest of our VimpelCom shares is intended to
prevent the enforcement of Judge Lynch's most recent decision.
We have not received an original writ of execution, nor have we
received any formal notification of the arrest of our VimpelCom
shares. Furthermore we have no intention of paying the outrageous
US$1.7 billion damage claim awarded by the Omsk court based on
what we regard as an illegal court ruling. We have appealed the
ruling and will request a stay of enforcement proceedings. If,
despite our request for a stay, our investment in VimpelCom is
stolen, we would regard this as a criminal act against Telenor and
its shareholders," said Mr. Thygesen.
In other Russian court proceedings similar to the Farimex case,
valuable assets have been auctioned off to obscure entities in
non-transparent circumstances in exchange for unsecured promissory
notes or other minimal consideration. Telenor has appealed the
decision of the Omsk court and believes that that ruling has no
merit.
"This is no longer just a dispute between two shareholders, but
has entered a phase where illegal acts, supported by Russian
courts, will affect Telenor's shareholders directly and will
seriously damage Russia's reputation internationally. We trust
the Russian government will understand how such grave miscarriages
of justice can have a huge negative impact on the future of
foreign investment in Russia and take actions to prevent this from
happening," said Mr. Thygesen.
Telenor holds 29.9 per cent of the voting shares (33.6 per cent of
the common shares) in VimpelCom through its subsidiary Telenor
East Invest AS.
A complete copy of the transcript of the March 11 hearing in the
US District Court and the Court's March 11 order can be found at:
http://www.telenor.com/downloads/second_contempt/
About VimpelCom
Headquartered in Moscow, Russia, VimpelCom (NYSE: VIP) --
http://www.vimpelcom.com/-- consists of telecommunications
operators providing voice and data services through a range of
wireless, fixed and broadband technologies. The Group includes
companies operating in Russia, Kazakhstan, Ukraine, Uzbekistan,
Tajikistan, Georgia and Armeniaas well as Vietnam and Cambodia, in
territories with a total population of about 340 million. The
Group companies provide services under the "Beeline" brand.
VimpelCom was the first Russian company to list its shares on the
New York Stock Exchange ("NYSE"). VimpelCom's ADSs are listed on
the NYSE under the symbol "VIP".
* * *
OJSC Vimpel Communications continues to carry Ba2 long-term
corporate family rating, Ba2 senior unsecured debt rating and Ba2
probability of default rating from Moody's with positive outlook.
Vimpelcom still carries BB+ long-term foreign and local issuer
credit ratings from Standard & Poor's with negative outlook.
VIMPELCOM: S&P Says Share Freezing No Effect on Telenor Ratings
---------------------------------------------------------------
Standard & Poor's Ratings Services said that its 'BBB+' ratings
and negative outlook on Norwegian telecom incumbent Telenor ASA
are not immediately affected by the reported administrative
"freezing" of Telenor's 33.6% common share interest in Russian
mobile operator Vimpel-Communications (VimpelCom: BB+/Negative/
--).
The freezing of the shares would appear to be another stage,
possibly more serious, in the long-running disputes between
Telenor and Alfa Group as shareholders in both VimpelCom and CJSC
Kyivstar GSM (not rated). The freezing may be in response to
Telenor's statement that it will not pay the appealed US$1.7
billion fine levied by an Omsk Court earlier in March 2009 and
also follows a recent ruling by a U.S. Court holding four Alfa
Group companies in contempt for repeated failure to comply with
orders relating to Kyivstar.
The 'BBB+' ratings on Telenor have little capacity to accommodate
credit-negative developments. The ratings do not assume
significant near-term cash flows from Telenor's interest in
VimpelCom and S&P's ratio calculations exclude Vimpelcom's equity-
accounted contribution to Telenor's consolidated accounts. The
permanent loss of this valuable asset, however, would likely
reduce Telenor's financial flexibility, which S&P views as
supportive for the ratings.
=========
S P A I N
=========
IM BANCO: Fitch Downgrades Rating on Class C Notes to 'B'
---------------------------------------------------------
Fitch Ratings has taken various rating actions on two Spanish
small- and medium-sized enterprise collateralized debt
obligations, IM Banco Popular FTPYME 1, Fondo de Titulizacion de
Activos and IM Grupo Banco Popular EMPRESAS 1, Fondo de
Titulizacion de Activos. The rating actions were prompted by an
increase in delinquent loans in the transactions and concerns
about Spain's deteriorating macroeconomic environment. The rating
actions, the transactions' main portfolio parameters and rating
action rationales are:
IM Banco Popular FTPYME 1
-- Class A (ISIN ES0347847008) affirmed at 'AAA'; assigned a
Stable Outlook
-- Class A(G) (ISIN ES0347847016) affirmed at 'AAA'; assigned a
Stable Outlook
-- Class B (ISIN ES0347847024) downgraded to 'A' from 'A+';
assigned a Negative Outlook
-- Class C (ISIN ES0347847032) downgraded to 'B' from 'BBB';
assigned a Negative Outlook
Fitch's analysis of the delinquency pipeline and an updated
default forecast for the current portfolio indicated that the
credit protection for classes B and C was no longer adequate to
support the prior ratings, which is why the two classes were
downgraded and assigned Negative Outlooks. The class A notes have
been affirmed with a Stable Outlook, reflecting the increase in
credit enhancement due to the transaction's deleveraging and class
A's reported expected average life of less than a year, which
assumed a 5% constant prepayment rate. As the Kingdom of Spain
('AAA'/Stable/'F1+') guarantees the class A(G) notes, the 'AAA'
rating on these securities was affirmed with a Stable Outlook.
The transaction closed in 2004 and as of 31 December 2008, the
current portfolio was 28.7% of the initial portfolio balance. 90+
day delinquencies stood at 2% of the current portfolio. The
portfolio is concentrated in real estate and related sectors with
the current exposure at 24.8%, and the largest geographical region
is Madrid at 22.7%. The total reserve fund and line of credit of
EUR11.5m provides 2% of credit enhancement.
IM Grupo Banco Popular EMPRESAS 1
-- Class A2 (ISIN ES0347843015) affirmed at 'AAA'; assigned a
Negative Outlook
-- Class B (ISIN ES0347843023) affirmed at 'AA'; assigned a
Negative Outlook
-- Class C (ISIN ES0347843031) downgraded to 'A' from 'A+';
assigned a Negative Outlook
-- Class D (ISIN ES0347843049) downgraded to 'BB' from 'BBB+';
assigned a Negative Outlook
-- Class E (ISIN ES0347843056) downgraded to 'CC' from 'CCC'
Fitch's analysis of the delinquency pipeline and an updated
default forecast for the current portfolio indicated that the
credit protection for classes C, D and E was no longer adequate to
support the prior ratings. As such, these classes have been
downgraded and classes C and D have been assigned Negative
Outlooks. The class A2 and B notes have been affirmed, reflecting
the increase, to some degree, in credit enhancement due to the
transaction's deleveraging. The Negative Outlooks assigned to
classes A2 and B reflect the transaction's exposure to the
delinquency pipeline and Fitch's expectation of significant
further credit deterioration over the next two years due to
Spain's economic decline and the ongoing correction in the real
estate and construction sectors.
As of December 31, 2008, the reserve fund of EUR37.6 million was
below the minimum level of EUR45 million and provides 4% of credit
enhancement. The transaction closed in 2006 and the current
portfolio was 48.9% of the initial portfolio balance. 90+ day
delinquencies stood at 1.7% of the current portfolio. The
portfolio is concentrated in real estate and related sectors with
the current exposure at 31.9%, and the largest geographical region
is Madrid at 16.5%.
Spanish macroeconomic conditions have deteriorated sharply in
recent months and there has been a notable increase in
delinquencies across SME CDO transactions. Fitch expects further
deterioration due to the economic downturn and ongoing correction
in the real estate and related sectors, which is expected to
accelerate over the near-term. However, many originators have
begun to reinforce collection efforts by adding staff and
employing more proactive collection strategies. Given Fitch's
expectation for further credit deterioration in the SME segment,
the agency continues to review rated transactions to ensure the
credit protection in place is sufficient to maintain existing
ratings.
In the analysis undertaken, assumptions on probability of default
(PD) and loss severity were made with regards to current
delinquencies as well as the performing portfolio. With respect
to default probability, the base assumption on the current
performing portion of the portfolio was revised upward to reflect
the non-investment grade nature of underlying borrowers and to
consider how the portfolio or loans could perform through-the
cycle. This resulted in an increase in the base default
probability to approximately 10-15%, which was then adjusted to
reflect the remaining weighted average life of the portfolio. The
base case PD was further adjusted to account for the existing
portfolio delinquency pipeline, with loans that have been in
arrears for longer being assigned progressively higher default
probabilities (up to 100% for loans greater than six months in
arrears). On the recovery side, Fitch assumed the 'BB' recovery
from the initial rating analysis. These updated PD and recovery
assumptions were used to determine an updated loss expectation and
then compared against existing subordination available for each
tranche, with minimum coverage ratios of the updated expected loss
driving the actions noted above. Seasoning, excess spread, as
well as industry and borrower concentration risk also factored
into Fitch's credit view.
IM Banco Popular FTPYME 1 is a cash flow securitization of loans
granted to Spanish SMEs by Banco Popular Espanol SA (rated
'AA'/Stable/'F1+'). IM Grupo Banco Popular EMPRESAS 1 is a cash
flow securitization of loans granted to Spanish SMEs by Grupo
Banco Popular, namely Banco Popular Espanol; Banco de Andalucia
(rated 'AA-'((AA minus))/Stable/'F1+'), and four unrated entities:
Banco de Castilla; Banco de Credito Balear; Banco de Galicia; and
Banco de Vasconia. Both issuers are legally represented and
managed by InterMoney Titulizacion SGFT, SA (the sociedad
gestora), a limited liability company incorporated under Spanish
law, whose activities are limited to the management of
securitization funds.
IM GRUPO: Fitch Lowers Rating on Class E Notes to 'CC'
------------------------------------------------------
Fitch Ratings has taken various rating actions on two Spanish
small- and medium-sized enterprise collateralized debt
obligations, IM Banco Popular FTPYME 1, Fondo de Titulizacion de
Activos and IM Grupo Banco Popular EMPRESAS 1, Fondo de
Titulizacion de Activos. The rating actions were prompted by an
increase in delinquent loans in the transactions and concerns
about Spain's deteriorating macroeconomic environment. The rating
actions, the transactions' main portfolio parameters and rating
action rationales are:
IM Banco Popular FTPYME 1
-- Class A (ISIN ES0347847008) affirmed at 'AAA'; assigned a
Stable Outlook
-- Class A(G) (ISIN ES0347847016) affirmed at 'AAA'; assigned a
Stable Outlook
-- Class B (ISIN ES0347847024) downgraded to 'A' from 'A+';
assigned a Negative Outlook
-- Class C (ISIN ES0347847032) downgraded to 'B' from 'BBB';
assigned a Negative Outlook
Fitch's analysis of the delinquency pipeline and an updated
default forecast for the current portfolio indicated that the
credit protection for classes B and C was no longer adequate to
support the prior ratings, which is why the two classes were
downgraded and assigned Negative Outlooks. The class A notes have
been affirmed with a Stable Outlook, reflecting the increase in
credit enhancement due to the transaction's deleveraging and class
A's reported expected average life of less than a year, which
assumed a 5% constant prepayment rate. As the Kingdom of Spain
('AAA'/Stable/'F1+') guarantees the class A(G) notes, the 'AAA'
rating on these securities was affirmed with a Stable Outlook.
The transaction closed in 2004 and as of 31 December 2008, the
current portfolio was 28.7% of the initial portfolio balance. 90+
day delinquencies stood at 2% of the current portfolio. The
portfolio is concentrated in real estate and related sectors with
the current exposure at 24.8%, and the largest geographical region
is Madrid at 22.7%. The total reserve fund and line of credit of
EUR11.5m provides 2% of credit enhancement.
IM Grupo Banco Popular EMPRESAS 1
-- Class A2 (ISIN ES0347843015) affirmed at 'AAA'; assigned a
Negative Outlook
-- Class B (ISIN ES0347843023) affirmed at 'AA'; assigned a
Negative Outlook
-- Class C (ISIN ES0347843031) downgraded to 'A' from 'A+';
assigned a Negative Outlook
-- Class D (ISIN ES0347843049) downgraded to 'BB' from 'BBB+';
assigned a Negative Outlook
-- Class E (ISIN ES0347843056) downgraded to 'CC' from 'CCC'
Fitch's analysis of the delinquency pipeline and an updated
default forecast for the current portfolio indicated that the
credit protection for classes C, D and E was no longer adequate to
support the prior ratings. As such, these classes have been
downgraded and classes C and D have been assigned Negative
Outlooks. The class A2 and B notes have been affirmed, reflecting
the increase, to some degree, in credit enhancement due to the
transaction's deleveraging. The Negative Outlooks assigned to
classes A2 and B reflect the transaction's exposure to the
delinquency pipeline and Fitch's expectation of significant
further credit deterioration over the next two years due to
Spain's economic decline and the ongoing correction in the real
estate and construction sectors.
As of December 31, 2008, the reserve fund of EUR37.6 million was
below the minimum level of EUR45 million and provides 4% of credit
enhancement. The transaction closed in 2006 and the current
portfolio was 48.9% of the initial portfolio balance. 90+ day
delinquencies stood at 1.7% of the current portfolio. The
portfolio is concentrated in real estate and related sectors with
the current exposure at 31.9%, and the largest geographical region
is Madrid at 16.5%.
Spanish macroeconomic conditions have deteriorated sharply in
recent months and there has been a notable increase in
delinquencies across SME CDO transactions. Fitch expects further
deterioration due to the economic downturn and ongoing correction
in the real estate and related sectors, which is expected to
accelerate over the near-term. However, many originators have
begun to reinforce collection efforts by adding staff and
employing more proactive collection strategies. Given Fitch's
expectation for further credit deterioration in the SME segment,
the agency continues to review rated transactions to ensure the
credit protection in place is sufficient to maintain existing
ratings.
In the analysis undertaken, assumptions on probability of default
(PD) and loss severity were made with regards to current
delinquencies as well as the performing portfolio. With respect
to default probability, the base assumption on the current
performing portion of the portfolio was revised upward to reflect
the non-investment grade nature of underlying borrowers and to
consider how the portfolio or loans could perform through-the
cycle. This resulted in an increase in the base default
probability to approximately 10-15%, which was then adjusted to
reflect the remaining weighted average life of the portfolio. The
base case PD was further adjusted to account for the existing
portfolio delinquency pipeline, with loans that have been in
arrears for longer being assigned progressively higher default
probabilities (up to 100% for loans greater than six months in
arrears). On the recovery side, Fitch assumed the 'BB' recovery
from the initial rating analysis. These updated PD and recovery
assumptions were used to determine an updated loss expectation and
then compared against existing subordination available for each
tranche, with minimum coverage ratios of the updated expected loss
driving the actions noted above. Seasoning, excess spread, as
well as industry and borrower concentration risk also factored
into Fitch's credit view.
IM Banco Popular FTPYME 1 is a cash flow securitization of loans
granted to Spanish SMEs by Banco Popular Espanol SA (rated
'AA'/Stable/'F1+'). IM Grupo Banco Popular EMPRESAS 1 is a cash
flow securitization of loans granted to Spanish SMEs by Grupo
Banco Popular, namely Banco Popular Espanol; Banco de Andalucia
(rated 'AA-'((AA minus))/Stable/'F1+'), and four unrated entities:
Banco de Castilla; Banco de Credito Balear; Banco de Galicia; and
Banco de Vasconia. Both issuers are legally represented and
managed by InterMoney Titulizacion SGFT, SA (the sociedad
gestora), a limited liability company incorporated under Spanish
law, whose activities are limited to the management of
securitization funds.
=============
U K R A I N E
=============
AGROTECHMETINVEST LLC: Creditors Must File Claims by March 26
-------------------------------------------------------------
Creditors of LLC Agrotechmetinvest (EDRPOU 35649297) have until
March 26, 2009, to submit proofs of claim to:
LLC Vatika
Insolvency Manager
Post Office Box 72
03115 Kiev
Ukraine
The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent. The case is
docketed under Case No 15/51-b.
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 Agrotechmetinvest
Vanda Vasilevskaya St. 18
04116 Kiev
Ukraine
CHRISTIE LLC: Creditors Must File Claims by March 26
----------------------------------------------------
Creditors of LLC Christie (EDRPOU 32996360) have until March 26,
2009, to submit proofs of claim to:
LLC Oiltech
Insolvency Manager
Post Office Box 72
03115 Kiev
Ukraine
The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent. The case is
docketed under Case No 15/56-b.
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 Christie
Khmelnitskaya St. 10
03115 Kiev
Ukraine
INVEST-R LLC: Court Starts Bankruptcy Supervision Procedure
-----------------------------------------------------------
The Economic Court of Ivano-Frankovsk commenced bankruptcy
supervision procedure on LLC Agricultural Production Invest-R
(EDRPOU 34158593).
The Temporary Insolvency Manager is:
R. Senik
Post Office Box 26
76008 Ivano-Frankovsk
Ukraine
The Court is located at:
The Economic Court of Ivano-Frankovsk
Shevchenko St. 16
76000 Ivano-Frankovsk
Ukraine
The Debtor can be reached at:
LLC Agricultural Production Invest-R
Mukha St. 12
Rogatin
77000 Ivano-Frankovsk
Ukraine
KHONIAKOV AGRICULTURAL: Creditors Must File Claims by March 26
--------------------------------------------------------------
Creditors of Khoniakov Agricultural LLC have until March 26, 2009,
to submit proofs of claim to:
V. Bilyk
Insolvency Manager
Popov St. 15/63
Starokonstantinov
31100 Hmelnitsky
Ukraine
The Economic Court of Hmelnitsky commenced bankruptcy proceedings
against the company after finding it insolvent. The case is
docketed under Case No 2/222-b.
The Court is located at:
The Economic Court of Hmelnitsky
Independency square 1
29000 Hmelnitsky
Ukraine
The Debtor can be reached at:
Khoniakov Agricultural LLC
Khoniakov
Slavutsky
Hmelnitsky
Ukraine
PRIDNEPROVSKAYA ENGINEERING: Claims Filing Period Ends March 26
---------------------------------------------------------------
Creditors of LLC Pridneprovskaya Engineering Company (EDRPOU
33127691) have until March 26, 2009, to submit proofs of claim to
S. Bagmet, Insolvency Manager.
The Economic Court of Zaporozhye commenced bankruptcy proceedings
against the company after finding it insolvent. The case is
docketed under Case No 19/35/08.
The Court is located at:
The Economic Court of Zaporozhye
Shaumian street 4
69001 Zaporozhye
Ukraine
The Debtor can be reached at:
LLC PRIDNEPROVSKAYA ENGINEERING COMPANY
Kremlevskaya St. 63-A
69000 Zaporozhye
Ukraine
SCORPION AND K: Court Starts Bankruptcy Supervision Procedure
-------------------------------------------------------------
The Economic Court of Lvov commenced bankruptcy supervision
procedure on LLC Firm Scorpion and K (EDRPOU 32053210). The
Temporary Insolvency Manager is R. Pury.
The Court is located at:
The Economic Court of Lvov
Lichakovskaya St. 128
79014 Lvov
Ukraine
The Debtor can be reached at:
LLC Firm Scorpion and K
Fedkovich St. 26/6
79018 Lvov
Ukraine
===========================
U N I T E D K I N G D O M
===========================
BROOKLANDS EURO: Fitch Junks Ratings on Three 2001-1 Notes
----------------------------------------------------------
Fitch Ratings downgraded Brooklands Euro Reference-Linked Notes
2001-1 and assigned Recovery Ratings to the class B, C, D and E
notes as listed below:
-- Class A (ISIN XS0132520098) downgraded to 'BB' from 'BBB';
Outlook Negative
-- Class B (ISIN XS0132520841) downgraded to 'CCC' from 'B';
assigned 'RR4'
-- Class C (ISIN XS0132521575) downgraded to 'CC' from 'CCC';
assigned 'RR6'
-- Class D (ISIN XS0132521906) downgraded to 'C' from 'CC';
assigned 'RR6'
-- Class E (ISIN XS0132525725) affirmed at 'C'; assigned 'RR6'
The rating downgrades reflect further negative portfolio credit
migration since the review in October 2008, and potentially lower-
than-expected recoveries from the credit events of Landsbanki
Islands and Kaupthing Bank which have yet to settle. Fitch
expects that the credit enhancement available to the class A notes
will be approximately 9.1% once the credit events are settled,
3.9% for the class B notes and 0.5% for the class C notes. The
class D notes are expected to take a write-down to EUR5.6 million
from the current balance of EUR12.5 million. The class E notes
are expected to be fully written down.
In conducting its analysis, Fitch makes a three-notch downward
adjustment for any structured finance names on Rating Watch
Negative, and a single-notch downward adjustment for corporate
names on RWN or Negative Outlook for default analysis under its
Portfolio Credit Model. The weighted average portfolio credit
quality is 'BB+' compared to 'BB+/BBB-' (BBB minus) in October
2008. Currently 9.5% of the portfolio is rated 'B+' and below, of
which 5.6% is rated 'CCC+' and below on an unadjusted basis,
compared to 5.1% rated 'B+' and below in October 2008. The
portfolio comprises 53.3% corporate reference entities and 46.7%
structured finance reference entities.
The issuer, Brooklands, is a special purpose vehicle incorporated
with limited liability under the laws of the Cayman Islands.
Brooklands provides protection to UBS AG, London Branch (rated
'A+'/Outlook Stable/'F1+') on a portfolio of reference credits
with an initial notional value of EUR1 billion.
The ratings of the Class A to D notes address the full and timely
payment of interest and ultimate payment of principal. The rating
of the Class E notes addresses a total return of 13.5% p.a.
BROOKLANDS EURO: Fitch Junks Ratings on Six 2002-1 Notes
--------------------------------------------------------
Fitch Ratings downgraded Brooklands Euro Reference-Linked Notes
2002-1 and assigned Recovery Ratings to notes.
Rating actions:
-- Class A+ (ISIN XS0238513344) downgraded to 'BB' from 'A';
Outlook Negative
-- Class A (ISIN XS0148886913) downgraded to 'CCC' from 'BB';
assigned 'RR3'
-- Class B1 (ISIN XS0148887481) downgraded to 'CC' from 'B';
assigned 'RR5'
-- Class B2 (XS0148887721) downgraded to 'CC' from 'B'; assigned
'RR5'
-- Class C (ISIN XS0148887994) downgraded to 'C' from 'CCC';
assigned 'RR6'
-- Class D (ISIN XS0148888372) downgraded to 'C' from 'CCC';
assigned 'RR6'
-- Class E1 (ISIN XS0148888703) downgraded to 'C' from 'CC';
assigned 'RR6'
-- Class E2 (XS0148889180) downgraded to 'C' from 'CC'; assigned
'RR6'
-- Class G1 (ISIN XS0148948291) downgraded to 'CC' from 'B';
assigned 'RR5'
The rating downgrades reflect further negative portfolio credit
migration since the review in October 2008, three additional
credit events called on structured finance assets, and potentially
lower-than-expected recoveries from the credit event of Kaupthing
Bank which has yet to settle. Additionally, two US sub-prime RMBS
securities are now regarded as rated 'C' by Fitch but have not yet
been called as credit events. Based on Fitch's expectation of
zero recoveries on the five distressed structured finance assets
and expected losses from Kaupthing, the credit enhancement
available to the class A+ notes would be approximately 12.4%, 4.4%
for the class A notes and 2.4% for the class B notes. The class C
notes are expected to write down to EUR22.7 million from the
current balance of EUR31.0 million. Class D, E-1 and E-2 are
expected to be fully written down.
In conducting its analysis, Fitch makes a three-notch downward
adjustment for any structured finance names on Rating Watch
Negative, and a single-notch downward adjustment for corporate
names on RWN or Negative Outlook for default analysis under its
Portfolio Credit Model. The weighted average portfolio credit
quality is 'BB+' compared to 'BBB-' (BBB minus) in October 2008.
Currently 8.4% of the portfolio is rated 'B+' and below, of which
4.8% is rated 'CCC+' and below on an unadjusted basis, compared to
3.6% rated 'B+' and below in October 2008. The portfolio
comprises 73.2% structured finance reference entities and 26.8%
corporate reference entities.
The issuer, Brooklands, is a special purpose vehicle incorporated
with limited liability under the laws of the Cayman Islands.
Brooklands provides protection to UBS AG, London Branch (rated
'A+'/Outlook Stable/'F1+') on a portfolio of reference credits
with an initial notional value of EUR1 billion.
The ratings of the Class A+ to E notes address the full and timely
payment of interest and ultimate payment of principal. The
ratings of the Class G1 notes address the ultimate payment of
principal and a total return of 1% p.a.
BROOKLANDS EURO: Fitch Junks Ratings on Four 2002-2 Notes
---------------------------------------------------------
Fitch Ratings downgraded Brooklands Euro Reference-Linked Notes
2002-2 and assigned Recovery Ratings to the class A1, A2, A3 and
A4 notes.
Rating actions:
-- Class SA2 (ISIN XS0159993905) downgraded to 'B' from 'BBB';
Outlook Negative
-- Class A1 (ISIN XS0159841989) downgraded to 'CCC' from 'BB';
assigned 'RR4'
-- Class A2 (ISIN XS0159842011) downgraded to 'CCC' from 'B';
assigned 'RR5'
-- Class A3 (ISIN XS0159842284) downgraded to 'CC' from 'CCC';
assigned 'RR6'
-- Class A4 (ISIN XS0159842367) downgraded to 'C' from 'CC';
assigned 'RR6'
The rating downgrades reflect further negative portfolio credit
migration since the review in October 2008. Five assets are now
regarded as rated 'C' or below by Fitch, compared to two in
October 2008. All of these assets are US sub-prime RMBS
securities, and Fitch expects a zero recovery rate which would
lead to a loss equivalent to 3.5% of the portfolio. To date one
credit event notice has been received on these assets. Losses
will first be absorbed by the accrued interest of the unrated
Class B2 notes before writing down the principal balance.
Following that, any other losses will be absorbed by the accrued
interest on the unrated Class B1 and subsequently Class B1
principal. Fitch expects that if credit events are called on the
'C' rated names the resulting credit enhancement available to the
class SA2 notes will be approximately 9.6%, 5.9% for the class A1
notes, 3.4% for the class A2 notes, and 1.2% for the class A3.
The class A4 notes are expected to take a write down to around
EUR11.6 million from the current balance of EUR21.5 million.
In conducting its analysis, Fitch makes a three-notch downward
adjustment for any structured finance names on Rating Watch
Negative for default analysis under its Portfolio Credit Model.
Excluding the five assets rated 'C' the weighted average portfolio
credit quality is 'BB+' compared to 'BBB-' (BBB minus) in October
2008. In addition to the 3.5% of the portfolio rated 'C', 4% is
rated 'B'. The total rated at 'B' and below in October 2008 was
5%, compared to 7.5% now. Future negative rating migration is
likely as 15.8% of the portfolio is currently on RWN.
The issuer, Brooklands, is a special purpose vehicle incorporated
with limited liability under the laws of the Cayman Islands.
Brooklands provides protection to UBS AG, London Branch (rated
'A+'/Outlook Stable/'F1+') on a portfolio of reference credits
with an initial notional value of EUR1 billion.
The ratings of the Class SA2 to A4 notes address the full and
timely payment of interest and ultimate payment of principal.
BROOKLANDS EURO: Fitch Junks Ratings on Five 2004-1 Notes
---------------------------------------------------------
Fitch Ratings downgraded Brooklands Euro Reference-Linked Notes
2004-1 and assigned Recovery Ratings to the class B, C-E, C-Y, D
and E notes.
Rating actions:
-- Class A1-a (ISIN XS0193140901) downgraded to 'BB' from 'BBB';
Outlook Negative;
-- Class A1-b (ISIN XS0193141388) downgraded to 'BB' from 'BBB';
Outlook Negative;
-- Class A2 (ISIN XS0193141891) downgraded to 'B-' (B minus)
from 'BB'; Outlook Negative;
-- Class B (ISIN XS0193142436) downgraded to 'CCC' from 'B';
assigned 'RR4'
-- Class C-E (ISIN XS0193142782) downgraded to 'CC' from 'CCC';
assigned 'RR5'
-- Class C-Y (ISIN XS0193142865) downgraded to 'CC' from 'CCC';
assigned 'RR5'
-- Class D (ISIN XS0193143590) downgraded to 'CC' from 'CCC';
assigned 'RR5'
-- Class E (ISIN XS0193143913) downgraded to 'C' from 'CC';
assigned 'RR6'
The rating downgrades reflect further negative portfolio credit
migration since the review in October 2008 and lower-than-expected
recoveries from the credit events of Kaupthing Bank and Lehman
Brothers Holding Inc. Additionally, one US sub-prime RMBS
security is now regarded as rated 'C' by Fitch but has not yet
been called as a credit event. Based on Fitch's expectation of
zero recovery on this asset and the settlement of the losses from
Kaupthing and Lehman, the credit enhancement available to the
class A1-a and A1-b notes would be approximately 12.2%, 7.5% for
the class A2 notes, 5.2% for the class B notes, 3.1% for the Class
C-E and C-Y notes and 1.1% for the class D notes. The class E
notes would be expected to write down to EUR7.8 million from the
current balance of EUR13.5 million.
In conducting its analysis, Fitch makes a three-notch downward
adjustment for any structured finance names on Rating Watch
Negative, and a single-notch downward adjustment for corporate
names on RWN or Negative Outlook for default analysis under its
Portfolio Credit Model. The weighted average portfolio credit
quality is 'BB+' compared to 'BBB-' (BBB minus) in October 2008.
Excluding the asset treated as a credit event, 6.9% of the
portfolio is rated 'B+' and below, of which 4.9% is rated 'CCC+'
and below on an unadjusted basis, compared to 3.4% rated 'B+' and
below in October 2008. The portfolio comprises 55.8% structured
finance reference entities and 44.2% corporate reference entities.
The issuer, Brooklands, is a special purpose vehicle incorporated
with limited liability under the laws of the Cayman Islands.
Brooklands provides protection to UBS AG, London Branch (rated
'A+'/Outlook Stable/'F1+') on a portfolio of reference credits
with an initial notional value of EUR750 million.
The ratings of the Class A to E notes address the full and timely
payment of interest and ultimate payment of principal by the final
maturity.
BROOKLANDS EURO: Fitch Junks Ratings on Five 2005-1 Notes
---------------------------------------------------------
Fitch Ratings downgraded Brooklands Euro Reference-Linked Notes
2005-1 and assigned Recovery Ratings to the class A2, B, C, D1, D2
and E notes.
Rating actions:
-- Class A1 (ISIN XS0226765807) downgraded to 'B' from 'BBB';
Outlook Negative
-- Class A2 (ISIN XS0226770559) downgraded to 'CCC' from 'BB';
assigned 'RR4'
-- Class B (ISIN XS0226771102) downgraded to 'CC' from 'B';
assigned 'RR5'
-- Class C (ISIN XS0226776911) downgraded to 'C' from 'CCC';
assigned 'RR6'
-- Class D1 (ISIN XS0226777133) downgraded to 'C' from 'CC';
assigned 'RR6'
-- Class D2 (ISIN XS0226777216) downgraded to 'C' from 'CC';
assigned 'RR6'
-- Class E (ISIN XS0226777729) affirmed at 'C'; assigned 'RR6'
The rating downgrades reflect further negative portfolio credit
migration since the review in October 2008 and lower-than-expected
recoveries from the credit events of Kaupthing Bank and Lehman
Brothers Holding Inc. Additionally, one US sub-prime RMBS
security is now regarded as rated 'C' by Fitch but has not yet
been called as a credit event. Based on Fitch's expectation of
zero recovery on this asset and the settlement of the losses from
Kaupthing and Lehman, the resulting credit enhancement available
to the class A1 notes would be approximately 11.3%, 6.1% for the
class A2 notes, 4.1% for the class B notes, 2.5% for the Class C
notes and 0.3% for the class D1 and D2 notes. The class E notes
would be expected to write down to EUR3.3 million from the current
balance of EUR15.0 million.
In conducting its analysis, Fitch makes a three-notch downward
adjustment for any structured finance names on Rating Watch
Negative, and a single-notch downward adjustment for corporate
names on RWN or Negative Outlook for default analysis under its
Portfolio Credit Model. The weighted average portfolio credit
quality is 'BB+' compared to 'BBB-' (BBB minus) in October 2008.
Excluding the asset treated as a credit event, 8.4% of the
portfolio is rated 'B+' and below, of which 6.2% is rated 'CCC+'
and below on an unadjusted basis, compared to 2.9% rated 'B+' and
below in October 2008. The portfolio comprises 79.6% corporate
reference entities and 20.4% structured finance reference
entities.
The issuer, Brooklands, is a special purpose vehicle incorporated
with limited liability under the laws of the Cayman Islands.
Brooklands provides protection to UBS AG, London Branch (rated
'A+'/Outlook Stable/'F1+') on a portfolio of reference credits
with an initial notional value of EUR1 billion.
The ratings of the Class A to E notes address the full and timely
payment of interest and ultimate payment of principal by the final
maturity.
CORNHILL RETAIL: Appoints Joint Administrators from Tenon Recovery
------------------------------------------------------------------
C. D. Wilson and T. J. Binyon of Tenon Recovery were appointed
joint administrators of Cornhill Retail Ltd. on March 3, 2009.
The company can be reached through Tenon Recovery at:
Sherlock House
73 Baker Street
London
W1U 6RD
England
CPC STAINLESS: Business Put Up for Sale
---------------------------------------
Dominic Wong and Richard Hawes offer for sale the business and/or
assets of Lockley Stainless Limited and CPC Stainless Limited (in
administration).
Key aspects of the business are:
--- premier supplier and processor of stainless steel
flat products in the UK;
--- newly built (2008) state-of-the-art, 50,000 sq ft
flat stainless steel service center, based in
Wolverhampton, West Midlands;
--- highly invested business with significant new plant
and machinery including a new decoiling line and
polishing line;
--- processing facilities include coil to sheet
decoiling line, automated 'pick & place'
sheet polishing line; and
--- 2008 turnover GBP15.2 million (opportunity to
operate at circa GBP50 million turnover on
current site).
For further information, contact:
Deloitte Birmingham
Attn: Louise Brown
Four Brindley Place
Birmingham, BI 2HZ
Telephone: 0121 695 5143
Fax: 0121 695 5793
DECO 8: Fitch Junks Ratings on Three Classes of Notes
-----------------------------------------------------
Fitch Ratings has affirmed DECO 8 - UK Conduit 2 p.l.c. class A1
commercial mortgage-backed notes and downgraded the rest:
-- GBP158.7 million class A1 (XS0251885603) affirmed at 'AAA';
Outlook Stable
-- GBP256.3 million class A2 (XS0251886163) downgraded to 'AA-'
(AA minus) from 'AAA'; Outlook revised to Negative from
Stable
-- GBP32.4 million class B (XS0251886833) downgraded to 'A' from
'AA+'; Outlook Negative
-- GBP34 million class C (XS0251887211) downgraded to 'BBB' from
'AA-' (AA minus); Outlook Negative
-- GBP23.5 million class D (XS0251887724) downgraded to 'BB+'
(BB plus) from 'A'; Outlook Negative
-- GBP61 million class E (XS0251889696) downgraded to 'CCC' from
'BBB'; Distressed Recovery rating of 'DR4' assigned
-- GBP14.2 million class F (XS0251890199) downgraded to 'CC'
from 'BBB-' (BBB minus); Distressed Recovery rating of 'DR5'
assigned
-- GBP8.3 million class G (XS0251890868) downgraded to 'CC' from
'BB', Distressed Recovery rating of 'DR5' assigned
DECO 8, which closed in September 2006, involved the
securitization of 22 commercial mortgage loans originated in the
UK by Deutsche Bank AG, London branch (rated 'AA-' (AA
minus)/'F1+'/RWN).
The downgrades reflect that deteriorating commercial property
market conditions have weakened the creditworthiness of the loans
securitizing this transaction.
The loan portfolio had a reported weighted average loan-to-value
ratio (LTV) of 76.6%, as of the January IPD. This compares to an
estimated WA Fitch LTV of 108%, reflecting an overall market value
decline of approximately 29%.
The exposure to secondary assets in sectors such as light
industrial (27% by market value) and office (45%), together with
imminent refinancing risk in the portfolio - with almost 10% of
the loan pool balance due to mature before 2011- makes this
transaction highly sensitive to present market conditions.
Barring a successful restructuring and/or extension of these
loans, there is an elevated risk of losses, to which junior notes
would be immediately exposed.
The current pool is dominated by two large loans, Lea Valley and
Mapeley Beta, which together account for 73% of the aggregate loan
balance. The top five loans represent approximately 93% of the
entire pool. Office and industrial property types account for
almost 72% of the pool by market value.
The transaction had an initial aggregate loan balance of GBP630.1
million secured on a property portfolio comprising 75 commercial
properties as well as some residential assets (producing
approximately 92,000 separate ground rents) located throughout the
UK. As of the January 2009 IPD, the aggregate loan balance had
fallen to GBP588.3 million. Four loans have prepaid since closing,
accounting for six commercial properties.
The class A notes are due in April 2018, with the remaining
classes maturing in January 2036.
Fitch will continue to monitor the performance of the transaction.
EUROPEAN PROPERTY: Fitch Cuts Rating on Class E Notes to 'BB'
-------------------------------------------------------------
Fitch Ratings has affirmed the class A, X and B notes of European
Property Capital 4 plc and downgraded the class C, D and E notes
as detailed in the table below. The rating Outlook on class B has
been revised to Negative from Stable, while classes C to E remain
on Outlook Negative. The rating actions are:
-- GBP103.0 million class A due July 2014 (XS0270901928)
affirmed at 'AAA'; Outlook Stable
-- GBP5,000 class X due July 2014 (XS0270909234) affirmed at
'AAA'; Outlook Stable
-- GBP78.0 million class B due July 2014 (XS0270902900) affirmed
at 'AAA'; Outlook revised to Negative from Stable
-- GBP78.0 million class C due July 2014 (XS0270903387)
downgraded to 'AA-' (AA minus) from 'AA'; Outlook Negative
-- GBP78.0 million class D due July 2014 (XS0270906729)
downgraded to 'BBB+' from 'A'; Outlook Negative
-- GBP78.0 million class E due July 2014 (XS0270908006)
downgraded to 'BB' from 'BBB'; Outlook Negative
The rating actions reflect the continued deterioration of property
market conditions, as reflected in the regularly updated
valuations. In December 2008, an updated valuation prepared by
Cushman & Wakefield showed a decline in market value of almost 26%
since the original valuation was conducted in May 2006, and a
decline of 10% since the previous revaluation in September 2008.
This has resulted in A-note and whole loan current loan-to-value
ratios of 97.0% and 101.0%, respectively, compared to 72.0% and
75.0% at closing. The loan does not feature an LTV covenant.
Since closing, the Nivian Property Trustee loan (NPT, 47% of pool
balance) was repaid in full in July 2007. The remaining loan,
Capital London Funding, is secured by two grade A office
properties located in the City of London. The CFL loan is
scheduled to mature in July 2010, with a one-year extension option
subject to certain criteria. These include: hedging being put in
place for the additional term, the interest coverage ratio being
higher than 1.2x, and the whole loan LTV being less than or equal
to 75%. Based on the current LTV, the borrower would not be able
to exercise the extension option, absent a partial prepayment of
the loan and/or a significant improvement in market value.
Refinancing risk is partially mitigated by the nature of the
collateral which benefits from high property quality, strong
tenants and improved rental income. This is reflected in the A-
note and whole loan exit debt yields of 7.5% and 7.9%,
respectively. Both properties are fully let, however, as there
are only four distinct tenants, rental income is highly dependent
on their activities. The tenants are Slaughter & May (53.6% of
passing rent), Aon Benfield (28.1%, wholly owned by Aon, rated
'BBB+'/'F2'), Brit Insurance (13.4%) and Amalgamated Metal
Corrugation (4.9%). The weighted average lease term has improved
to 12.1 years, compared to 10.2 years at closing. This is due to
new 15-year leases that were recently signed for the 55
Bishopsgate property with Aon Benfield upon the expiry of its
previous lease agreements. The refurbishment of the reception
area that was agreed in March 2008 was completed by the end of the
year. Outstanding lift works and air conditioning replacement
works are expected to be completed by the end of 2009. The fund
manager has confirmed that the associated costs will be covered by
existing cash resources.
Fitch will continue to monitor the performance of the transaction.
GKN HOLDINGS: S&P Cuts Long-Term Corporate Credit Rating to 'BB+'
-----------------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its long-term
corporate credit rating on U.K.-based engineering company GKN
Holdings PLC to 'BB+' from 'BBB-'. The outlook is negative. The
ratings have also been removed from CreditWatch negative, with
negative implications, where they were placed on Feb. 2, 2009.
S&P also lowered the ratings on GKN's senior unsecured issues to
'BB+' from 'BBB-'; S&P has assigned a recovery rating of '4',
indicating S&P's expectation of average (30%-50%) recovery in the
event of payment default.
"The downgrade reflects our view of the sharp deterioration in
GKN's financial credit metrics, mainly as a result of the rapid
worsening of automotive industry conditions over 2008," said
Standard & Poor's ratings analyst Andres Albricci. "Although S&P
believes that some markets will be slightly more resilient to the
economic downturn, the downgrade also reflects our view that
challenging market conditions will persist into 2009 in all of
GKN's markets, likely preventing GKN from restoring credit metrics
in line with the previous rating level in the short to medium
term."
GKN reported net financial debt of GBP708 million for financial
year 2008, GBP202 million higher than 2007; over the same period,
GKN also reported an increase in its pension deficit of
GBP503 million. The reported trading profit of GBP201 million
(before restructuring and impairment charges, amortization of
nonoperating intangible assets and change in value of derivative
instruments), represented a 27% decline from the previous year.
As a result, S&P estimates fully adjusted funds from operations
(FFO) to debt of about 19% at the end of 2008 compared with 34% in
2007 and debt to EBITDA of 4.7x after 2.4x in the same period.
S&P observes that the last quarter of 2008 was particularly weak
for the automotive sector; original equipment manufacturers
reported production cuts of between 20% and 30% on average. As a
result, GKN was forced to quickly lower its production volumes,
which caused it to suffer from operating inefficiencies. The
automotive and powder metallurgy businesses were reportedly loss
making in the fourth quarter of 2008. S&P expects that lower
production volumes in the automotive markets will affect GKN's
profitability and cash flow generation; S&P also believes that
declines in the aerospace business and agricultural equipment
markets will hamper GKN's operating performance, but to a lesser
extent.
GKN announced significant restructuring measures for 2009, mainly
involving a reduction in its long- and short-term workforce to
reflect lower demand. As a result GKN expects to save about
GBP130 million in 2009. However, GKN expects implementation costs
of approximately the same amount to affect cash flow generation
this year. Despite these efforts, S&P believes that GKN will not
be able to achieve financial credit metrics in line with a 'BBB-'
rating in the short to medium term; according to S&P's
projections, FFO to debt will remain well below 25% for at least
this year and next.
"The negative outlook reflects S&P's belief that market conditions
in the automotive sector will remain tough in 2009," said Mr.
Albricci. "As a result, S&P expects key credit ratios to fall
below our targets over the year." S&P expects GKN to achieve and
maintain FFO to debt of 20% to 25% beyond 2009.
A further downgrade could be possible if the markets in which GKN
operates show a greater deterioration than S&P currently factors
into the rating. In particular, S&P might lower the rating if the
tough market conditions significantly hinder GKN's ability to
generate positive FOCF or if it appears that GKN will not be able
to sustain S&P's targeted key credit ratios beyond 2009.
S&P does not factor into the ratings any major debt-funded
acquisitions or distribution to shareholders. Moreover, S&P
believes it likely that GKN will carefully manage its working
capital position and effectively implement its cost-saving
measures.
S&P considers any upward movement in the rating unlikely in the
short to medium term.
GLOBE PUB: Says Will Breach Debt Covenants
------------------------------------------
The Financial Times's Pan Kwan Yuk reports that Globe Pub Company
has warned it will breach its debt covenants.
In a March 12 release the group said its earnings before interest,
tax, depreciation and amortization (EBITDA) for the quarter ended
February 28, 2009, is GBP4.1 million.
According to the FT, the group's EBITDA for the past two quarters
stand at only 1.08 times the cost of servicing its debt. The FT
notes this is below the 1.25 times minimum allowed by the covenant
to its securitized debt.
The FT relates Standard & Poor's said in a note an administrative
receiver may be appointed to run the business should Globe default
on the loan by being unable to cure the breach.
Globe Pub Company -- http://www.globepubcompany.co.uk/-- was
established in 2004 by R20, an investment company of Robert
Tchenguiz. The company currently runs over 450 quality leased
pubs across the United Kingdom. Its estate is managed by S&N Pub
Enterprises.
GLOBE PUB: Fitch Puts 'BB' Rating on Class B1 Notes on Watch Neg.
-----------------------------------------------------------------
Fitch Ratings has placed Globe Pub Issuer Plc's notes on Rating
Watch Negative.
Rating actions:
-- GBP192.2 million class A1 secured fixed/floating rate notes
due 2033: 'BBB-' (BBB minus); placed on Rating Watch Negative
-- GBP57.0 million class B1 secured floating rate notes due
2036: 'BB-' (BB minus); placed on Rating Watch Negative
Globe is a whole business securitization of a portfolio of
tenanted and leased pubs owned by Globe Pub Company and managed by
Scottish and Newcastle Pub Enterprises.
Globe's notes have been placed on RWN after the issuer stated in a
March 12, 2009 press release that its quarterly EBITDA, as of
February 28, 2009, was GBP4.1 million and will lead to a debt
service cover ratio on the last two quarters of 1.08x which is a
breach of the financial covenant set at 1.25x. Based on this
information, Fitch believes that both classes of notes for Globe
will be downgraded from their current respective ratings. Fitch
will assess the impact of this information in more detail and
decide appropriate rating actions over the next couple of weeks.
The agency considers it likely that the rating actions will exceed
one notch for each class.
Fitch will also assess the transaction's ability to service its
bonds in light of the cash balances of GBP18.5 million (as per the
investor report for the November 2008 quarter), the presence of a
GBP29 million liquidity facility and the ability to defer the
interest payments for the class B1 notes. The agency will also
monitor the contractual implications of the financial covenant
breach which could lead to the appointment of an administrative
receiver by the noteholders if a borrower event of default is
declared, and the actions which could result from such
appointment.
Based on the issuer's press release, Fitch calculates that the
latest quarterly EBITDA has declined by 22% compared with the
quarterly EBITDA as of November 2008 and by 38% year-on-year, a
marked acceleration in performance decline. The agency expects
the trailing 12 months (TTM) EBITDA to be GBP21.8 million which
would mark a decline of 10% compared with the TTM EBITDA as of
November 2008.
ITIC LTD: Brings in Joint Administrators from Tenon Recovery
------------------------------------------------------------
Thomas Dixon and Christopher Benjamin Barrett of Tenon Recovery
were appointed joint administrators of ITIC Ltd. on March 2, 2009.
The company can be reached through Tenon Recovery at:
Clive House
Clive Street
Bolton
Lancashire
BL1 1ET
England
KAUPTHING BANK: Gets Court Consent to Apply for Judicial Review
---------------------------------------------------------------
The High Court of England has consented to Kaupthing Bank's
request for permission to apply for judicial review of the
legitimacy of the decision taken by the UK authorities to transfer
to a third party, without compensation, deposits from Kaupthing
Edge accounts at the bank's UK subsidiary, Kaupthing Singer &
Friedlander, on October 8, 2008. This decision was a precursor to
the decision by the UK authorities to place Kaupthing Singer &
Friedlander into administration, which led the bank's creditors to
call in the bank's loans and resulted in the Financial Services
Authority's taking control of the bank.
The court will now fix a hearing at which evidence and arguments
concerning the UK authorities' intervention into the operations of
Kaupthing Singer & Friedlander will be considered. Kaupthing Bank
contends that the actions of the UK authorities were unjust and
illegal.
Kaupthing Bank's resolution committee welcomes the court's
decision and hopes that promised financial support will be
forthcoming from the Icelandic Government to ensure that legal
proceedings can be continued. Kaupthing Bank's resolution
committee also wishes to underline that the court's decision in no
way indicates what the final outcome of this case will be.
About Kaupthing Bank
Headquartered in Reykjavik, Iceland, Kaupthing Bank hf. --
http://www.kaupthing.com-- is engaged in the provision of
financial services, such as private banking, asset management,
pension services, brokerage services, investment banking, as well
as corporate and retail banking. The Bank's offer is targeted at
companies, institutional investors and individuals. The Bank is
operational in thirteen countries, including Luxembourg,
Switzerland, the Nordic countries, the United Kingdom and the
United States. The main subsidiaries include Kaupthing Singer &
Friedlander and FIH Erhvervsbank.
* * *
As reported in the Troubled Company Reporter on Nov. 30, 2008,
Olafur Gardasson, assistant for Kaupthing Bank hf., in a
proceeding under Act No. 21/1991, pending before the Reykjavik
District Court, and foreign representative of the Debtor, filed a
petition under chapter 15 of title 11 of the United States Code in
the United States Bankruptcy Court for the Southern District of
New York commencing the Debtor's chapter 15 case ancillary to the
Icelandic Proceeding and seeking recognition for the Icelandic
Proceeding as a "foreign main proceeding" under the Bankruptcy
Code and relief in aid of the Icelandic Proceeding.
Citing a court filing by Olafur Gardarsson, Reuters disclosed
Kaupthing has about US$14.8 billion of principal assets, including
US$222 million located in the United States, and US$26
billion of principal indebtedness.
LOCKLEY STAINLESS: Business Put Up for Sale
-------------------------------------------
Dominic Wong and Richard Hawes offer for sale the business and/or
assets of Lockley Stainless Limited and CPC Stainless Limited (in
administration).
Key aspects of the business are:
--- premier supplier and processor of stainless steel
flat products in the UK;
--- newly built (2008) state-of-the-art, 50,000 sq ft
flat stainless steel service center, based in
Wolverhampton, West Midlands;
--- highly invested business with significant new plant
and machinery including a new decoiling line and
polishing line;
--- processing facilities include coil to sheet
decoiling line, automated 'pick & place'
sheet polishing line; and
--- 2008 turnover GBP15.2 million (opportunity to
operate at circa GBP50 million turnover on
current site).
For further information, contact:
Deloitte Birmingham
Attn: Louise Brown
Four Brindley Place
Birmingham, BI 2HZ
Telephone: 0121 695 5143
Fax: 0121 695 5793
LUXFER HOLDINGS: Moody's Confirms 'B2' Corporate Family Rating
--------------------------------------------------------------
Moody's Investors Service confirmed all ratings of Luxfer
Holdings, with a stable outlook. Ratings confirmed are the B2
corporate family rating; the B3 probability of default rating; and
the Caa1 ratings on the GBP72 million bonds due 2012.
The ratings confirmation follows the company's announcement that
it has successfully refinanced its bank facility which was due to
mature in April 2009. Luxfer has also announced a solid set of
2008 results, and concluded its strategic review with no immediate
action to be taken.
Luxfer's new bank facility is for two years, maturing in April
2011. Moody's understands that it is an asset-based facility,
provided on similar terms to the expired facility (although with a
higher margin). Although the successful refinancing removes the
immediate pressures on Luxfer's ratings, Moody's observes that the
company's liquidity remains relatively tight. The bank facility
was drawn by GBP27 million at December 31, 2008, and Luxfer's
liquidity remains exposed to reduced cash flow arising from
deteriorating operating performance, working capital variations
and changes to availability under the new bank facility depending
on valuation of the underlying assets. These liquidity factors
have resulted in the PDR being kept at B3.
The CFR is a notch higher at B2. The higher CFR is in line with
Moody's view that, in the event of a default, recovery for
creditors would be above the average 50%. This reflects Moody's
views on the underlying business, which continues to perform well
despite the global downturn. Luxfer reported 2008 revenue of
GBP258 million and Ebitda of GBP30.5 million, up 21% and 22%
respectively from 2007. Importantly, given the deterioration seen
in the global economy during this period, the Q4 results were also
relatively firm. The company reported net debt/Ebitda of 3.16x,
down from 3.8x for 2008.
However, Moody's notes that despite the growth in Ebitda and the
moderate leverage, the company generated only GBP1 million free
cash flow in 2008 to reduce debt. Luxfer has limited financial
flexibility due to its relatively small size, its high level of
interest payments, and the need to maintain investment and
associated capital expenditure. The company benefits from
exposure to a broad range of industrial customers, but given the
global economic outlook the prospects for material near-term debt
reduction remain low. The combination of factors results in the
company being reasonably positioned at its rating levels, and
hence the outlook is stable.
The last rating announcement for Luxfer was on January 21, 2009,
when the PDR was downgraded to B3 and all ratings were placed on
review for downgrade.
Headquartered in Manchester, England, Luxfer specializes in the
design and manufacture of high-pressure gas cylinders, and
aluminium, zirconium, and magnesium based engineering products for
use in the aerospace, automotive, medical and general engineering
industries. Revenue for the year ending December 2008 was GBP258
million.
MCMENEMY HILL: Taps Joint Administrators from Tenon Recovery
------------------------------------------------------------
Stanley Burkett-Coltman and Duncan Beat of Tenon Recovery were
appointed joint administrators of Mcmenemy Hill Live
Communications Ltd. on Feb. 17, 2009.
The company can be reached through Tenon Recovery at:
Highfield Court
Tollgate
Chandlers Ford
Eastleigh
Hampshire
SO53 3TZ
England
METRIX FUNDING: Moody's Reviews 'Ba2' Ratings on Three Notes
------------------------------------------------------------
Moody's Investors Service has placed on watch for possible
downgrade its ratings of thirteen classes of Notes issued by
Metrix Funding 1 plc, a Balance Sheet collateralized loan
obligation transaction.
The rating actions reflect the revision of certain key assumptions
that the agency uses to rate and monitor corporate CDOs. These
revised assumptions incorporate Moody's expectation that European
corporate default rates are likely to greatly exceed their
historical long-term averages and reflect the heightened
interdependence of credit markets in the current European economic
contraction.
Specifically, the changes announced include: (1) a 30% increase in
the assumed likelihood of default for corporate credits in CDOs
and (2) an increase in the default correlation applied to
corporate portfolios as generated through a combination of higher
default rates and increased asset correlations.
These revised assumptions are described in greater detail in the
press release published on January 15, 2009. Moody's notes that
the European corporate loan sector currently has a negative
outlook and has shown signs of increasing weakness in terms of
credit performance. The sector is further stressed by the
anticipated limited refinancing opportunities for EMEA non-
financial corporate issuers over the next six to twelve months.
The rating actions are:
-- GBP500,000,000 Class A1 Floating Rate Notes due 2019, Placed
on Review for Possible Downgrade; previously on 01 December
2005 assigned Aaa
-- EUR700,000,000 Class A2 Floating Rate Notes due 2019, Placed
on Review for Possible Downgrade; previously on 01 December
2005 assigned Aaa
-- US$1,261,000,000 Class A3 Floating Rate Notes due 2019,
Placed on Review for Possible Downgrade; previously on 01
December 2005 assigned Aaa
-- GBP44,000,000 Class B1 Floating Rate Notes due 2019, Placed
on Review for Possible Downgrade; previously on 01 December
2005 assigned Aa2
-- EUR29,940,000 Class B2 Floating Rate Notes due 2019, Placed
on Review for Possible Downgrade; previously on 01 December
2005 assigned Aa2
-- US$10,000,000 Class B3 Floating Rate Notes due 2019, Placed
on Review for Possible Downgrade; previously on 01 December
2005 assigned Aa2
-- GBP32,000,000 Class C1 Floating Rate Notes due 2019, Placed
on Review for Possible Downgrade; previously on 01 December
2005 assigned A2
-- EUR56,200,000 Class C2 Floating Rate Notes due 2019, Placed
on Review for Possible Downgrade; previously on 01 December
2005 assigned A2
-- GBP36,000,000 Class D1 Floating Rate Notes due 2019, Placed
on Review for Possible Downgrade; previously on 01 December
2005 assigned Baa2
-- EUR50,300,000 Class D2 Floating Rate Notes due 2019, Placed
on Review for Possible Downgrade; previously on 01 December
2005 assigned Baa2
-- GBP30,000,000 Class E1 Floating Rate Notes due 2019, Placed
on Review for Possible Downgrade; previously on 01 December
2005 assigned Ba2
-- EUR27,030,000 Class E2 Floating Rate Notes due 2019, Placed
on Review for Possible Downgrade; previously on 01 December
2005 assigned Ba2
-- US$3,000,000 Class E3 Floating Rate Notes due 2019, Placed
on Review for Possible Downgrade; previously on 01 December
2005 assigned Ba2
NORWEGIAN LOG: Calls in Joint Administrators
--------------------------------------------
Matthew Richard Meadley Wild of Baker Tilly Restructuring and
Recovery LLP and Geoffrey Lambert Carton-Kelly of BDO Stoy Hayward
LLP were appointed joint administrators of Norwegian Log Chalets
Ltd. on Feb. 25, 2009.
The company can be reached through Baker Tilly Restructuring and
Recovery LLP at:
The Clock House
140 London Road
Guildford
Surrey
GU1 1UW
England
PLASPUGS LIMITED: Goes Into Administration
------------------------------------------
Adrian Jenkins at Burton Mail reports that Burton-on-Trent DIY
supply company Plasplugs Limited has gone into administration with
debts of more than GBP5 million.
Burton Mail relates Companies House on Thursday said the company
was placed in the hands of Philip Duffy and Steven Muncaster, two
insolvency specialists based at MCR's office in Manchester.
Citing an insider, Burton Mail reveals workers were told that the
company was entering administration during a 30-minute meeting on
March 4.
According to Burton Mail, the company, which has since progressed
to selling products including fixings, sharpening, knives and
decorating, now appears to have been undone by the calamitous
impact of the recession on the construction industry and allied
trades.
DIYWEEK.net recalls the company, which has a turnover of GBP18
million a year, closed its base two weeks ago.
PROMINENT CMBS: Fitch Junks Ratings on Three Classes of Notes
-------------------------------------------------------------
Fitch Ratings has downgraded the ratings of Prominent CMBS Conduit
No.2 Limited's commercial mortgage-backed notes, due April 2019.
The ratings actions are:
-- GBP362.6 million class A (XS0303848229) downgraded to 'A'
from 'AAA'; Outlook revised to Negative from Stable
-- GBP18.95 million class B (XS0303848815) downgraded to 'BBB-'
(BBB minus) from 'AA'; Outlook Negative
-- GBP18.96 million class C (XS0303849201) downgraded to 'B'
from 'A'; Outlook Negative
-- GBP19.95 million class D (XS0303849896) downgraded to 'CCC'
from 'BBB'; assigned a 'RR5' Recovery Rating
-- GBP10.98 million class E (XS0303850555) downgraded to 'CCC'
from 'BBB'; assigned a 'RR5' Recovery Rating
-- GBP16.99 million class F (XS0305344417) downgraded to 'CC'
from 'BBB-' (BBB minus); assigned a 'RR5' Recovery Rating
The loans are secured by a mixture of use types, predominantly
office (34.4%) and retail (23.6%). Three of the loans (Colombina,
Lavincino and Ambassador, 70.7% of the pool) have subordinated B-
note tranches that significantly increase the whole loan loan-to-
value ratios. This, coupled with the extremely low yields at
which the properties were originally valued and the limited
scheduled amortization, increases the overall refinancing risk.
While the majority of the loans are scheduled to mature in 2013
and 2014, the Cavendish loan (11.4% of the pool) is scheduled to
mature in 2011.
Fitch believes that deteriorating property market conditions have
weakened the creditworthiness of the loans securitized in the
transaction, especially those secured by assets of a secondary
nature. This is reflected in the weighted average Fitch LTV of
111.5%, compared to a WA reported LTV of 67.8%. This implies a WA
market value decline of 38.1%; as the collateral was valued at or
close to the peak of the market, this reflects the full magnitude
of ongoing capital value declines.
The Colombina loan (28.2% of the loan pool) is secured by Millbank
Tower, a landmark office property located in Central London's
Victoria sub-market. The largest tenant continues to be the
Secretary of State (20.3% of rental income); however, in the
quarter to January 2009 net operating income fell by GBP1.2
million following the Secretary of State's exercise of its
upcoming break options. This resulted in a decline in occupancy
to 89.7% from 99.6% in the previous period. Of the remaining
passing rent, 56% is scheduled to break or expire before loan
maturity in April 2014, which could severely undermine the ability
of the loan to meet its debt service payments. The Fitch A-note
LTV stands at 101.8%, compared to the reported LTV of 64.8%. In
addition, Fitch believes there is a risk of further MVDs due to
continued turbulence in the London office market and the
vulnerability of the occupational market in the Victoria sub-
market.
The Lavincino Loan (22.2% of the loan pool) is secured by a mixed
use property located on London's Oxford Street, primarily let to
Primark (a fashion retailer, 50.7% of passing rent) and Hachette
Filipacchi (UK) Limited (a subsidiary of Lagadere Active, one of
the world's largest leading media companies, 27.3%). The Fitch A-
note LTV of 81.5% implies a MVD of 27.9% since closing; this is
below average capital value declines due to the prime nature of
the asset, the 11% increase in net rent since closing, and the
strong WA lease term of 16.3 years.
While income levels have remained broadly unchanged since closing
for the remaining three loans (49.4% of the pool), Fitch LTVs
range between 126% and 142%, resulting in MVD's as high as 48%
(for the Ambassador Loan). This is mainly driven by the secondary
nature of the collateral and the extremely low yields at which the
assets were valued at closing.
Fitch will continue to monitor the performance of the transaction.
SCHLEGEL AUTOMOTIVE: Owner Moves to Avoid Bankruptcy
----------------------------------------------------
Schlegel Automotive Europe Ltd was saved from going into
bankruptcy after its Kolkata-based owner cut working week at its
factory in Coalville, Leicestershire to three days resulting in
almost 50% fall in payroll costs without job cuts, Livemint
reports. According to the report, Schlegel employs about 500
people and wages account for at least 42% of the company's costs.
Schlegel "almost gone into administration" after it defaulted on
payments to suppliers and service providers in December, the
report cited the company's owner, Pawan Kumar Ruia, as saying.
The report relates Mr. Ruia said lenders have agreed to give the
company more time to clear its dues after he intervened, warning
however that "we should break even in March, but if our customers
cut prices again, we are gone."
According to the report, Mr. Ruia bought the UK auto parts company
last year in a leveraged buyout.
U.K.-based Schlegel Automotive Europe Ltd manufactures rubber
sealing systems for global auto brands such as Toyota, Nissan,
BMW, Honda, Jaguar and Aston Martin.
SPLAYTTE DEVELOPMENTS: Appoints Administrators from Grant Thornton
------------------------------------------------------------------
Alistair Gareth Wardell and Nigel Morrison of Grant Thornton UK
LLP were appointed joint administrators of Splaytte Developments
Ltd. on Feb. 25, 2009.
The company can be reached at:
Splaytte Developments Ltd.
Ty Aroha The Herberts
St Mary's Church
Vale of Glamorgan
CF71 7LT
England
TAYLOR WIMPEY: Still Faces Significant Default Risk, Fitch Says
---------------------------------------------------------------
Fitch Ratings says Taylor Wimpey plc (rated 'CCC' on Rating Watch
Negative) still faces significant default risk as long as an
agreement with its creditors on a new financing package remains
outstanding. This follows TW's announcement on March 4, 2009 that
it now expects to conclude financing talks with its creditors in
April, rather than March as previously guided.
"We are concerned that the diverse make-up of TW's creditors will
continue to hamper efforts to reach an agreement," says Ewan
Macaulay, an Associate Director in Fitch's Construction & Property
team. "The talks appear to be complicated and difficult, as
evidenced by the fact that talks have persisted for over nine
months."
TW is now unlikely to agree a deal before its covenant deferral
period ends on March 31, 2009. Although TW has requested a
further deferral, if this is not forthcoming TW's creditors will
soon be able to request a testing of the financial covenants.
Such a request would push TW towards default as it is unlikely to
comply with one or more of its covenants.
The prospects of TW's creditors ultimately agreeing to a new
financial package are uncertain. TW's creditors may be motivated
to reach an agreement that allows TW to continue operating as a
viable business rather than forcing it into bankruptcy, given the
creditors' limited recovery prospects (30-40%) and low motivation
to hold housing assets while the UK housing market remains weak
and relatively illiquid. However, the potentially stressed
financial position of some of TW's creditors may limit their
ability to agree to a longer-term financing package, with some
under pressure to recoup their principal as soon as possible.
Much will also depend on whether the creditors believe in TW's
longer-term viability. A prolonged downturn, lasting into 2010
and possibly 2011, would severely stress TW's earnings and cash
flows, as well as significantly reducing its asset base as its
land bank shrinks. This could make it highly challenging for TW
to meet its next set of sizeable maturities in 2012 (up to GBP2
billion assuming all lines are drawn, relative to a total
available debt of GBP2.7 billion). This may encourage some
creditors to push for liquidation or an orderly wind-down now
rather than risk greater losses in the future.
TW's ratings remain on Rating Watch Negative to reflect the
downside risk of the financing negotiations failing or
alternatively resulting in some form of coercive debt exchange.
TW's ratings are currently: Long-term Issuer Default rating and
senior unsecured ratings of 'CCC', Short-term IDR of 'C' and
Recovery Rating of 'RR4'. Fitch's last rating action on TW was on
November 19, 2008, when the ratings were downgraded to 'CCC' from
'B'.
TECHPLAST LTD: Taps Joint Administrators from Grant Thornton
------------------------------------------------------------
Joseph Peter Francis McLean and Keith Hinds of Grant Thornton UK
LLP were appointed joint administrators of Techplast Ltd. on
Feb. 27, 2009.
The company can be reached at:
Techplast Ltd.
C/o Harland & Co.
Prospect House
Prospect Business Park
Leadgate
Consett
Co Durham
DH8 7PW
England
TURNER LANGDALE: Appoints Joint Administrators from PwC
-------------------------------------------------------
Karen Lesley Dukes and Edward Mark Shires of
PricewaterhouseCoopers LLP were appointed joint administrators of
Turner Langdale Ltd. on Feb. 27, 2009.
The company can be reached through PricewaterhouseCoopers LLP at:
Hill House
Richmond Hill
Bournemouth
BH2 6HR
England
* EUROPE: Moody's Reviews Ratings on 84 Notes for Likely Downgrade
------------------------------------------------------------------
Moody's Investors Service has placed on review for possible
downgrade the ratings of 84 Notes issued by 20 collateralized debt
obligation transactions backed by generally non-granular
portfolios of European Small and Medium Enterprise loans. The
rating actions reflect the revision of certain key assumptions
that the agency uses to rate and monitor SME CDOs. These revised
assumptions incorporate Moody's expectation that European
corporate default rates are likely to greatly exceed their
historical long-term averages and reflect the heightened
interdependence of credit markets in the current economic
contraction. Specifically, the changes announced include: (1) a
30% increase in the assumed likelihood of default for corporate
credits in CDOs and (2) an increase in the default correlation
applied to corporate portfolios as generated through a combination
of higher default rates and increased asset correlations. These
revised assumptions are described in greater detail in the press
release published on January 15, 2009. Moody's notes that the
European SME loan sector currently has a negative outlook and has
shown signs of increasing weakness in terms of credit performance.
The sector is further stressed by the anticipated limited
refinancing opportunities for EMEA non-financial corporate issuers
rated Baa and below over the next six to twelve months.
The rating actions are:
CB MezzCAP Limited Partnership
-- A, Aaa and Placed Under Review for Possible Downgrade;
previously on 11 April 2006 Assigned Aaa
-- B, A2 and Placed Under Review for Possible Downgrade;
previously on 21 December 2007 Downgraded to A2
-- C, Ba1 and Placed Under Review for Possible Downgrade;
previously on 21 December 2007 Downgraded to Ba1
-- D, B2 and Placed Under Review for Possible Downgrade;
previously on 21 December 2007 Downgraded to B2
-- E, Caa2 and Placed Under Review for Possible Downgrade;
previously on 21 December 2007 Downgraded to Caa2
Entry Funding No.1 plc
-- A, Aaa and Placed Under Review for Possible Downgrade;
previously on 12 December 2006 Assigned Aaa
-- B, Aa2 and Placed Under Review for Possible Downgrade;
previously on 12 December 2006 Assigned Aa2
-- C, A1 and Placed Under Review for Possible Downgrade;
previously on 12 December 2006 Assigned A1
-- D, Baa1 and Placed Under Review for Possible Downgrade;
previously on 12 December 2006 Assigned Baa1
-- E, Ba2 and Placed Under Review for Possible Downgrade;
previously on 12 December 2006 Assigned Ba2
-- F, B2 and Placed Under Review for Possible Downgrade;
previously on 12 December 2006 Assigned B2
European Private Funding I Limited Partnership
-- Senior Notes, Aa2 and Placed Under Review for Possible
Downgrade; previously on 13 May 2004 Assigned Aa2
Force 2005-1 Limited Partnership (EquiNotes)
-- A, Aaa and Placed Under Review for Possible Downgrade;
previously on 16 December 2005 Assigned Aaa
-- B, Aa1 and Placed Under Review for Possible Downgrade;
previously on 16 December 2005 Assigned Aa1
-- C, Aa3 and Placed Under Review for Possible Downgrade;
previously on 16 December 2005 Assigned Aa3
-- D, A2 and Placed Under Review for Possible Downgrade;
previously on 16 December 2005 Assigned A2
FORCE TWO Limited Partnership
-- A, Aaa and Placed Under Review for Possible Downgrade;
previously on 24 May 2007 Assigned Aaa
-- B, Aa2 and Placed Under Review for Possible Downgrade;
previously on 24 May 2007 Assigned Aa2
-- C, A2 and Placed Under Review for Possible Downgrade;
previously on 24 May 2007 Downgraded to A2
-- D, Baa1 and Placed Under Review for Possible Downgrade;
previously on 24 May 2007 Assigned Baa1
-- E, Baa3 and Placed Under Review for Possible Downgrade;
previously on 24 May 2007 Assigned Baa3
H.E.A.T Mezzanine I-2005 S.A.
-- A1, Aaa and Placed Under Review for Possible Downgrade;
previously on 15 September 2005 Assigned Aaa
-- B1, A1 and Placed Under Review for Possible Downgrade;
previously on 15 September 2005 Assigned A1
-- B2, A1 and Placed Under Review for Possible Downgrade;
previously on 15 September 2005 Assigned A1
H.E.A.T Mezzanine S.A. (Compartment 2)
-- A, Aaa and Placed Under Review for Possible Downgrade;
previously on 13 April 2006 Assigned Aaa
-- B, A1 and Placed Under Review for Possible Downgrade;
previously on 13 April 2006 Assigned A1
-- Combo, A1 and Placed Under Review for Possible Downgrade;
previously on 15 June 2007 Assigned A1
H.E.A.T Mezzanine S.A. - Compartment 3
-- A, Aaa and Placed Under Review for Possible Downgrade;
previously on 25 April 2007 Assigned Aaa
-- B, Aa3 and Placed Under Review for Possible Downgrade;
previously on 25 April 2007 Assigned Aa3
-- C, Baa1 and Placed Under Review for Possible Downgrade;
previously on 25 April 2007 Assigned Baa1
HSH LBBW Prime 2006-1 Funding Limited Partnership
-- A, Aaa and Placed Under Review for Possible Downgrade;
previously on 14 February 2007 Assigned Aaa
-- B, Aa3 and Placed Under Review for Possible Downgrade;
previously on 14 February 2007 Assigned Aa3
-- C, A3 and Placed Under Review for Possible Downgrade;
previously on 14 February 2007 Assigned A3
-- D, Baa3 and Placed Under Review for Possible Downgrade;
previously on 14 February 2007 Assigned Baa3
-- E, Ba2 and Placed Under Review for Possible Downgrade;
previously on 14 February 2007 Assigned Ba2
PREPS 2004-2 Limited Partnership
-- A1, Aaa and Placed Under Review for Possible Downgrade;
previously on 10 December 2004 Assigned Aaa
-- A2, Aaa and Placed Under Review for Possible Downgrade;
previously on 10 December 2004 Assigned Aaa
-- B1, Aa3 and Placed Under Review for Possible Downgrade;
previously on 10 December 2004 Upgraded to Aa3
-- B2, Aa3 and Placed Under Review for Possible Downgrade;
previously on 10 December 2004 Upgraded to Aa3
PREPS 2005-1 Limited Partnership
-- A1, Aaa and Placed Under Review for Possible Downgrade;
previously on 04 August 2005 Assigned Aaa
-- A2, Aaa and Placed Under Review for Possible Downgrade;
previously on 04 August 2005 Assigned Aaa
-- B, A1 and Placed Under Review for Possible Downgrade;
previously on 04 August 2005 Assigned A1
PREPS 2005-2 plc
-- A1, Aaa and Placed Under Review for Possible Downgrade;
previously on 12 December 2005 Assigned Aaa
-- A2, Aaa and Placed Under Review for Possible Downgrade;
previously on 12 December 2005 Assigned Aaa
-- B1, Ba1 and Placed Under Review for Possible Downgrade;
previously on 21 December 2007 Downgraded to Ba1
-- B2, Ba1 and Placed Under Review for Possible Downgrade;
previously on 21 December 2007 Downgraded to Ba1
PREPS 2006-1 plc.
-- A1, Aaa and Placed Under Review for Possible Downgrade;
previously on 19 July 2006 Assigned Aaa
-- A2, Aaa and Placed Under Review for Possible Downgrade;
previously on 19 July 2006 Assigned Aaa
-- B1, Baa2 and Placed Under Review for Possible Downgrade;
previously on 20 December 2007 Downgraded to Baa2
-- B2, Baa2 and Placed Under Review for Possible Downgrade;
previously on 20 December 2007 Downgraded to Baa2
PREPS 2007-1 plc
-- A1, Aaa and Placed Under Review for Possible Downgrade;
previously on 29 March 2007 Assigned Aaa
-- B1, A2 and Placed Under Review for Possible Downgrade;
previously on 29 March 2007 Assigned A2
PULS CDO 2006-1 PLC
-- A1, Aaa and Placed Under Review for Possible Downgrade;
previously on 25 July 2006 Assigned Aaa
-- A2 B, Aaa and Placed Under Review for Possible Downgrade;
previously on 25 July 2006 Assigned Aaa
-- B, Aa2 and Placed Under Review for Possible Downgrade;
previously on 25 July 2006 Assigned Aa2
-- C1, A2 and Placed Under Review for Possible Downgrade;
previously on 25 July 2006 Assigned A2
-- C2, A3 and Placed Under Review for Possible Downgrade;
previously on 25 July 2006 Assigned A3
-- ComboP, Baa2 and Placed Under Review for Possible Downgrade;
previously on 25 July 2006 Assigned Baa2
-- D, Baa3 and Placed Under Review for Possible Downgrade;
previously on 25 July 2006 Assigned Baa3
-- E1, Ba3 and Placed Under Review for Possible Downgrade;
previously on 25 July 2006 Assigned Ba3
-- E2, Ba3 and Placed Under Review for Possible Downgrade;
previously on 25 July 2006 Assigned Ba3
PULS CDO 2007-1 Limited
-- A1, Aaa and Placed Under Review for Possible Downgrade;
previously on 29 May 2007 Assigned Aaa
-- A2 B, Aa1 and Placed Under Review for Possible Downgrade;
previously on 29 May 2007 Assigned Aa1
-- B, Aa2 and Placed Under Review for Possible Downgrade;
previously on 29 May 2007 Assigned Aa2
-- C, A2 and Placed Under Review for Possible Downgrade;
previously on 29 May 2007 Assigned A2
-- D, Baa2 and Placed Under Review for Possible Downgrade;
previously on 29 May 2007 Assigned Baa2
-- E, Ba2 and Placed Under Review for Possible Downgrade;
previously on 29 May 2007 Assigned Ba2
S-CORE 2007-1 GmbH
-- B, Aa1 and Placed Under Review for Possible Downgrade;
previously on 10 August 2007 Assigned Aa1
-- C, Aa3 and Placed Under Review for Possible Downgrade;
previously on 10 August 2007 Assigned Aa3
-- D, A3 and Placed Under Review for Possible Downgrade;
previously on 10 August 2007 Assigned A3
-- E, Ba2 and Placed Under Review for Possible Downgrade;
previously on 10 August 2007 Assigned Ba2
-- F, B3 and Placed Under Review for Possible Downgrade;
previously on 10 August 2007 Assigned B3
S-CORE 2008-1 GmbH
-- B, Aa2 and Placed Under Review for Possible Downgrade;
previously on 08 July 2008 Assigned Aa2
-- C, A1 and Placed Under Review for Possible Downgrade;
previously on 08 July 2008 Assigned A1
-- D, Baa2 and Placed Under Review for Possible Downgrade;
previously on 08 July 2008 Assigned Baa2
-- E, Ba3 and Placed Under Review for Possible Downgrade;
previously on 08 July 2008 Assigned Ba3
-- F, B3 and Placed Under Review for Possible Downgrade;
previously on 08 July 2008 Assigned B3
StaGe Mezzanine 2006
-- A, Aaa and Placed Under Review for Possible Downgrade;
previously on 31 October 2006 Assigned Aaa
-- B, A3 and Placed Under Review for Possible Downgrade;
previously on 05 March 2007 Downgraded to A3
TS Co.mit One GmbH SSD CLO
-- B, Aa2 and Placed Under Review for Possible Downgrade;
previously on 04 August 2006 Assigned Aa2
-- C, A2 and Placed Under Review for Possible Downgrade;
previously on 04 August 2006 Assigned A2
-- D, Baa1 and Placed Under Review for Possible Downgrade;
previously on 04 August 2006 Assigned Baa1
-- E, Ba1 and Placed Under Review for Possible Downgrade;
previously on 04 August 2006 Assigned Ba1
-- F, B1 and Placed Under Review for Possible Downgrade;
previously on 04 August 2006 Assigned B1
* Large Companies with Insolvent Balance Sheet
----------------------------------------------
Shareholders Total Working
Equity Assets Capital
Ticker (US$MM) (US$MM) (US$MM)
------ ----------- ------- --------
AUSTRIA
-------
Libro AG (110) 174 (168)
Sky Europe (4) 213 (54)
BELGIUM
-------
Sabena S.A. (85) 2,215 (279)
CYPRUS
------
Allbury Travel (5) 275 (100)
Libra Holidays (5) 275 (100)
CZECH REPUBLIC
--------------
Ceskomoravska Kolben &
Danek Praha Holding (89) 192 (59)
Setuza A.S. (61) 139 (62)
DENMARK
-------
Elite Shipping (28) 101 3
Roskilde Bank (533) 7,877 N.A.
FRANCE
------
BSN Glasspack (101) 1,151 159
Grande Paroisse S.A. (927) 629 347
Immob Hoteliere (67) 301 (17)
Lab Dosilos (28) 110 (44)
Matussiere et Forest S.A MTF (78) 294 (38)
Pagesjaunes GRP PAJ (3,023) 1,377 (453)
Rhodia SA (342) 6,507 712
SDR Centrest (132) (252) N.A.
Selcodis S.A. SPVX (21) 141 (36)
Trouvay Cauvin (0) 134 9
GERMANY
-------
Alno AG ANO (21) 340 (88)
Brokat AG (27) 144 109
CBB Holding AG COB (43) 905 N.A.
Cinemaxx AG MXC (38) 178 (47)
Dortmunder
Actien-Brauerei DABG (13) 118 (27)
EECH Group AG 0 109 57
EM.TV AG EV4G.BE (22) 849 19
Kaufring AG KAUG (19) 151 (48)
Kunert AG (28) 102 29
Maternus Kliniken AG MAK.F (17) 182 (99)
Nordsee AG (8) 195 (14)
P & T Technology 0 109 57
Primacom AG PRC (14) 730 (68)
Rinol AG 0 168 (6)
Sander AG (6) 128 32
Sinnleffers AG (4) 454 (182)
Spar Handels- AG SPAG (442) 1,433 (294)
TA Triumph-Adler TWN (66) 484 (77)
Vivanco Gruppe (10) 131 28
GREECE
------
Empedos SA (34) 175 (57)
Noussa Spin (11) 450 (107)
Petzetakis-PFC PETZP (15) 294 (143)
Radio A.Korassidis KORA (101) 181 (165)
Commercial
Themeliodome (56) 232 (128)
United Textiles (11) 450 (107)
HUNGARY
-------
Brodograde Indus (322) 264 (366)
IPK Osijek DD OS (15) 124 (82)
OT Optima Teleko (26) 119 7
ICELAND
-------
Decode Genetics (187) 111 48
IRELAND
-------
Elan Corp PLC ELN (388) 1,599 705
Waterford Wed Ut WTFU (506) 821 364
ITALY
-----
Binda S.p.A. BND (11) 129 (23)
Cirio Finanziaria S.p.A. (422) 1,583 N.A.
Gruppo Coin S.p.A. GC (152) 791 (61)
Compagnia Italia ICT (138) 527 (318)
Credito Fondiario
e Industriale S.p.A. (200) 4,213 N.A.
Fullsix (4) 114 (18)
I Viaggi del
Ventaglio S.p.A. VVE (73) 540 (127)
Lazzio S.p.A. (15) 261 (40)
Olcese S.p.A. OLCI.MI (13) 180 (80)
Parmalat Finanziaria
S.p.A. (18,4219) 4,121 (16,919)
Snia S.p.A. SN (25) 488 31
Technodiffusione
Italia S.p.A. TDIFF.PK (90) 152 (30)
LUXEMBOURG
----------
Carrier1 International S.A. (95) 472 393
NETHERLANDS
-----------
Baan Company N.V. BAAN (8) 610 46
James Hardie Ind. (238) 2,357 184
United Pan-Euro Air UPC (5,505) 5,113 (9,170)
NORWAY
------
Interoil Exploration IOX (25) 210 (11)
Petroleum-Geo Services PGO (18) 400 (758)
POLAND
------
Toora (289) 147 (86)
PORTUGAL
--------
Lisgrafica Impressao
e Artes Graficas SA LIG (4) 117 (27)
ROMANIA
-------
Oltchim RM Valce OLT (7) 673 (170)
Rafo Onesti RAF (430) 353 (616)
RUSSIA
------
Akcionernoe Brd (117) 135 (24)
East Siberia Brd VSNK (113) 148 (11)
Gukovugol (58) 144 (148)
OAO Samaraneftegas (332) 892 (611)
Vanadiy-Tula-Brd (12) 105 (3)
Vimpel Ship SOVP (116) 135 (24)
Zil Auto ZILLP (240) 478 (447)
SWITZERLAND
-----------
Fortune Management (119) 265 (54)
TURKEY
------
Egs Ege Giyim VE (7) 147 (25)
Iktisat Financial (46) 108 N.A.
Mudurnu Tavukcul (65) 160 (115)
Nergis Holding (77) 299 38
Sifas (17) 117 21
Yasarbank (4,025) 2,644 N.A.
UKRAINE
-------
Dniprooblenergo DNON (51) 433 (200)
Donetskoblenergo DOON (367) 631 (469)
UNITED KINGDOM
--------------
Advance Display (3,016) 2,590 (411)
Airtours Plc (379) 1,818 (932)
Alldays Plc (120) 252 (290)
Amer Bus Sys (497) 121 (497)
Amey Plc AMY (49) 932 (76)
Anker Plc (22) 115 16
Atkins (WS) Plc ATK (46) 1,345 58
Black & Edgingto (140) 203 23
BNB Recruitment (10) 104 38
Booker Plc BKRUY (60) 1,298 (13)
Bradstock Group BDK (2) 269 7
British Energy Ltd (5,823) 4,921 534
British Energy Plc BGY (5,823) 4,921 534
British Sky Broadcast (334) 8,126 (388)
Carlisle Group (12) 204 30
Compass Group CPG (668) 2,972 (440)
Danka Bus (497) 121 (497)
Dawson Holdings (18) 226 (63)
Dignity Plc DTY (9) 648 71
E-II Holdings (199) 651 149
Easynet Group ESY.L (45) 323 68
Electrical and Music
Industries Group EMI (2,266) 2,950 (582)
European Home (14) 111 (70)
Farepak Plc (14) 111 (70)
Gartland Whalley (11) 145 (13)
Hilton Food Group (21) 256 (12)
Kleeneze Plc (14) 111 (70)
Ladbrokes Plc LAD (814) 2,403 (706)
Lambert Fenchurch Group (1) 1,827 5
Leeds United (73) 144 (48)
M 2003 Plc (2,204) 7,204 (1,078)
Mytravel Group MT.L (380) 1,818 (931)
New Star Asset (398) 293 21
Next Plc (119) 3,161 (125)
Orange Plc ORNGF (594) 2,902 12
Orbis Plc (4) 128 (5)
Patientline Plc (55) 125 (10)
Preedy Alfred (119) 3,161 (125)
Rank Group Plc (132) 1,066 (175)
Regus Plc (46) 367 (97)
Rentokil Initial (8) 4,178 (886)
Saatchi & Saatchi SSI (119) 705 (66)
Samsonite Corp. (199) 651 (149)
SFI Group SUF (108) 178 (265)
Skyepharma Plc SKP (140) 203 23
Smiths News Plc (124) 201 (92)
Styles & Wood (57) 107 (9)
Telewest
Communications Plc TLWT (3,702) 7,581 (10,042)
Thorn Emi Plc (2,266) 2,950 (582)
Topps Tiles Plc (111) 195 18
Trio Finance (14) 592 N.A.
UTC Group (12) 204 30
Virgin Mobile (392) 166 (176)
Watson & Philip (120) 252 (290)
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than US$3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
A list of Meetings, Conferences and Seminars appears in each
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available at your local bookstore or through Amazon.com. Go to
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*********
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-
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Therese V. Profetana and Peter A. Chapman, Editors.
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