/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/090401.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Wednesday, April 1, 2009, Vol. 10, No. 64 Headlines A U S T R I A ACTIVA-PROJEKT LLC: Claims Registration Period Ends April 7 ALUMONTE LLC: Claims Registration Period Ends April 10 CARGO LOGISTIK: Claims Registration Period Ends April 9 HA & KA: Claims Registration Period Ends April 13 KLEIDERMACHER AND TONSTUDIO: Claims Registration Ends April 13 LOIDL LLC: Claims Registration Period Ends April 18 M P INSTALLATIONS: Claims Registration Period Ends April 13 MEWO BESCHICHTUNGSTECHNIK: Claims Registration Ends April 8 F R A N C E MTI GLOBAL: Seeks Covenant Relief From Lenders MTI GLOBAL: To Focus on Aerospace Program; Divest Other Assets G E R M A N Y AIR BERLIN: Incurs Wider Second Consecutive Annual Loss ALP TRANS: Claims Registration Period Ends April 27 ALSA SUED: Claims Registration Period Ends April 5 COMMERZBANK AG: Toxic Assets Transferred to Restructuring Unit DRESDNER BANK: S&P Cuts Ratings on Hybrid Instruments to 'C' DYNASTIE GMBH: Claims Registration Period Ends April 27 GELDILUX-TS-2007 SA: S&P Puts Four Low-B Rated Notes on Watch Neg. ISO MASSIV: Claims Registration Period Ends May 8 KUFNER TEXTILWERKE: Claims Registration Period Ends May 8 PEGASUS TRANSPORTE: Claims Registration Period Ends May 8 SMR BAU: Claims Registration Period Ends April 16 I R E L A N D CLOVERIE PLC: Moody's Cuts Rating on Series 2005-93 Notes to 'Ba1' CLOVERIE PLC: S&P Junks Ratings on Four Classes of Notes EIRLES TWO: S&P Withdraws 'CCC' Rating on Series 162 Notes GS EUROPEAN: Fitch Junks Ratings on Class E and F Notes SR TECHNICS: Management Buyout Could Save Up to 900 Jobs I T A L Y ALITALIA-LINEE: Bids for Stake in Alicos Due April 28 CHRYSLER LLC: Fiat to Take Less Than 35% Stake Under New Deal TISCALI SPA: Carphone Warehouse Eyes Last Minute Bid for UK Biz K A Z A K H S T A N BAKSMAR KAZAKHSTAN: Creditors Must File Claims by May 1 BOLASHAK KURYLYS: Creditors Must File Claims by May 1 BTA DPR: Moody's Junks Ratings on Four Series of Notes DAN AI LTD: Creditors Must File Claims by May 1 DENIMA LLP: Creditors Must File Claims by May 1 FESTIVALS INTERNATIONAL: Creditors Must File Claims by May 1 G-KART TELECOM: Creditors Must File Claims by May 1 KAZINVESTBANK: Moody's Withdraws 'E+' Financial Strength Rating NAURYZ-SU LLP: Creditors Must File Claims by May 1 RADIAN PLUS: Creditors Must File Claims by May 1 RIELS-2000 LLP: Creditors Must File Claims by May 1 STAL I PLASTMASSA: Creditors Must File Claims by May 1 K Y R G Y Z S T A N MULTI-PROFESIONAL SERVICES: Claims Filing Period Ends April 10 N E T H E R L A N D S DUTCH MORTGAGE: S&P Lifts Ratings on Class D Notes to 'BB+' HOLLAND HOMES: Fitch Affirms Rating on Class D Notes at 'BB' ROBECO CDO: Moody's Junk Rating on Class B 2011 Notes P O L A N D KREDYT BANK: Fitch Downgrades Individual Rating to 'D' P O R T U G A L BANCO PORTUGUES: Moody's Affirms 'E+' Financial Strength Rating R U S S I A AVTOVAZ OAO: Russian Gov't to Provide RUR25 Billion Loan BELVEDER CJSC: Creditors Must File Claims by May 20 FOKINO-LES LLC: Creditors Must File Claims by May 20 FORSAYT LLC: Creditors Must File Claims by April 20 LESNOY RESURS: Creditors Must File Claims by April 20 NOVOLIPETSK STEEL: Incurs US$480 Mln Net Loss in Fourth Qtr. 2008 PETROGRADETS CJSC: Creditors Must File Claims by April 20 SALISBURY INT'L: Moody's Cuts Ratings on 2 Classes of Notes to B1 SALISBURY INT'L: S&P Junks Ratings on Four Classes of Notes SPUTNIK CDO: Moody's Cuts Ratings on Two Classes of Notes to Low-B STEKLO-PAK LLC: Creditors Must File Claims by April 20 SYKTYVDINSKIY WOOD: Under Bankruptcy Procedure VERKHNELENSKIY TIMBER: Creditors Must File Claims by April 20 VICHUGSKIY BREAD-BAKING: Creditors Must File Claims by May 20 ZHUKOVSKAYA FURNITURE: Bryanskaya Bankruptcy Hearing Set June 16 * IRKUTSK OBLAST: S&P Cuts Long-Term Issuer Credit Rating to 'B' S W I T Z E R L A N D ATC ART: Creditors Must File Proofs of Claim by April 3 CATS CONSULTING: Deadline to File Proofs of Claim Set April 3 CONSOGEO LLC: Deadline to File Proofs of Claim Set April 6 DMK SCHWEIZ: April 3 Set as Deadline to File Claims SEQUIN-DORMANN JSC: Proof of Claim Filing Deadline is April 2 SINEDOL LLC: Creditors Have Until April 3 to File Claims TRAVELNETBOOKERS LLC: Creditors' Proofs of Claim Due by April 2 UBS AG: Auction Rate Related Suit Junked on Earlier SEC Deal UBS AG: Moody's Cuts Rating on CHF50 Million Notes to 'Ca' WILLI SCHMID: Creditors Must File Proofs of Claim by April 3 T U R K E Y DOGAN YAYIN: Fitch Puts 'B+' Issuer Ratings on Negative Watch HURRIYET GAZETECILIK: Fitch Puts 'BB-' Ratings on Negative Watch U K R A I N E L-O-K LLC: Court Starts Bankruptcy Supervision Procedure MERIDIAN-AGRO LLC: Court Starts Bankruptcy Supervision Procedure THIN-WALL PIPES: Court Starts Bankruptcy Supervision Procedure TSENTROTECH LLC: Court Starts Bankruptcy Supervision Procedure * S&P Affirms 'CCC+' Issuer Rating on Ukraine's City of Lviv U N I T E D K I N G D O M APOLLO DIRECT: Appoints Joint Administrators from KPMG APOLLO SUPERSTORES: Calls in Joint Administrators from KPMG ARROW DISTRIBUTORS: Taps Joint Administrators from KPMG BACH HOMES: Goes Into Administration; Harrisons Appointed BURLINGTON PRESS: Appoints Administrators from Tenon Recovery CEVA GROUP: S&P Corrects Press Release; Downgrades Rating to 'B-' CRANHAM GROUP: Appoints Joint Administrators from KPMG DUNFERMLINE BUILDING: Parts of Business Transferred to Nationwide GAD LTD: Taps Joint Administrators from KPMG GREAT HALL: S&P Lowers Ratings on Three Tranches to 'B' HERITAGE STAIRLIFTS: Appoints Administrators from Grant Thornton ISLAND HARBOUR: Names Joint Administrators from BDO SKIPTON BUILDING: Fitch Affirms Support Rating Floor at 'BB' VISTEON CORP: UK Affiliate Commences Insolvency Proceedings VISTEON CORP: Obtains May 30 Waiver Under Credit Facilities VISTEON CORP: Files Annual Report; PwC Issues Going Concern Doubt ********* ============= A U S T R I A ============= ACTIVA-PROJEKT LLC: Claims Registration Period Ends April 7 ----------------------------------------------------------- Creditors owed money by LLC Activa-Projekt (FN 291278a) have until April 7, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Stephan Riel Landstrasser Hauptstrasse 1/2 1030 Vienna Austria Tel: 713 44 33 Fax: 713 10 33 E-mail: kanzlei@jsr.at Creditors and other interested parties are encouraged to attend the creditors' meeting at a.m. on Feb. 18, 2009, for the examination of claims at: Trade Court of Vienna (007) Room 1606 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Feb. 19, 2009, (Bankr. Case No. 4 S 24/09w). ALUMONTE LLC: Claims Registration Period Ends April 10 ------------------------------------------------------ Creditors owed money by LLC Alumonte (FN 222916v) have until April 10, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Heimo Hofstatte Marburgerkai 47 8010 Graz Austria Tel: 0316/815454 Fax: 0316/815454-22 E-mail: advokat@hofstaetter.co.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 3:00 p.m. on April 23, 2009, for the examination of claims at: Graz Land Court by Civil Cases (638) Room 227 Graz Austria Headquartered in Baden, Austria, the Debtor declared bankruptcy on Feb. 16, 2009, (Bankr. Case No. 25 S 24/09f). CARGO LOGISTIK: Claims Registration Period Ends April 9 ------------------------------------------------------- Creditors owed money by LLC Cargo Logistik (FN 58476w) have until April 9, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Hans Rant Seilerstatte 5 1010 Vienna Austria Tel: 513 31 65 Fax: 512 20 01 E-mail: ra-kanzlei@rant-freyler.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on April 23, 2009, for the examination of claims at: Trade Court of Vienna (007) Room 1707 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Feb. 23, 2009, (Bankr. Case No. 2 S 22/09m). HA & KA: Claims Registration Period Ends April 13 ------------------------------------------------- Creditors owed money by LLC Ha & Ka (FN 180707x) have until April 13, 2009, to file written proofs of claim to the court- appointed estate administrator: Michael Wagner Untere Hauptstrasse 104 7100 Neusiedl/See Austria Tel: 02167/3503 Fax: 02167/3503-3 E-mail: neusiedl@hbw.co.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:15 a.m. on April 27, 2009, for the examination of claims at: Land Court of Eisenstadt (309) Hall F Eisenstadt Austria Headquartered in Neusiedl am See, Austria, the Debtor declared bankruptcy on Feb. 18, 2009, (Bankr. Case No. 26 S 11/09h). KLEIDERMACHER AND TONSTUDIO: Claims Registration Ends April 13 -------------------------------------------------------------- Creditors owed money by LLC Kleidermacher and Tonstudio (FN 102373z) have until April 13, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr. Helmut Platzgummer Kohlmarkt 14 1010 Vienna Austria Tel: 01/533 19 39 Serie Fax: 01/533 19 39 39 E-mail: helmut.platzgummer@lp-law.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on April 27, 2009, for the examination of claims at: Trade Court of Vienna (007) Room 1705 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Feb. 20, 2009, (Bankr. Case No. 3 S 23/09s). LOIDL LLC: Claims Registration Period Ends April 18 --------------------------------------------------- Creditors owed money by LLC Loidl (FN 200651a) have until April 8, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr. Gottfried Berdnik Schloegelgasse 1 8010 Graz Austria Tel: 0316/83 25 27 Fax: 0316/81 43 15 E-mail: graz@hba.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:15 a.m. on April 15, 2009, for the examination of claims at: Graz Land Court by Civil Cases (638) Room 222 Graz Austria Headquartered in Kammern im Liesingtal, Austria, the Debtor declared bankruptcy on Feb. 24, 2009, (Bankr. Case No. 26 S 31/09t). M P INSTALLATIONS: Claims Registration Period Ends April 13 ----------------------------------------------------------- Creditors owed money by LLC M.P. Installations (FN 249437w) have until April 13, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr. Susi Pariasek Gonzagagasse 15 1010 Vienna Austria Tel: 01/533 28 55 Fax: 01/533 28 55 28 E-mail: office@anwaltwien.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on April 27, 2009, for the examination of claims at: Trade Court of Vienna (007) Room 1705 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Feb. 19, 2009, (Bankr. Case No. 3 S 21/09x). MEWO BESCHICHTUNGSTECHNIK: Claims Registration Ends April 8 ----------------------------------------------------------- Creditors owed money by LLC Mewo Beschichtungstechnik (FN 185310s) have until April 8, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr. Erwin Bajc Mittergasse 28 8600 Bruck an der Mur Austria Tel: 03862-51462 Fax: 03862-51462-10 E-mail: rechtsanwaelte@bzt.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 12:00 p.m. on April 22, 2009, for the examination of claims at: Land Court of Leoben (609) Hall IV Leoben Austria Headquartered in Kapfenberg, Austria, the Debtor declared bankruptcy on Feb. 19, 2009, (Bankr. Case No. 18 S 13/09a). =========== F R A N C E =========== MTI GLOBAL: Seeks Covenant Relief From Lenders ---------------------------------------------- MTI Global Inc. reports that it is in breach of financial and general covenants with its lenders. In particular, the Company did not achieve its December 31, 2008 earnings before interest, taxes and depreciation, fixed charge coverage and funded debt to earnings before interest, taxes and depreciation covenants. Furthermore, the Company is in breach of certain general covenants it was obligated to satisfy pursuant to waiver agreements entered into by the Company with its lenders based on its June 30, 2008 and subsequent interim monthly results. The Company entered into a new agreement with its bank in June 2008. Under the terms of the new agreement, similar financial and general covenants and more restrictive reporting requirements have been placed on the Company. The Company signed a waiver of its second quarter breach of financial and general covenants with its lenders on August 15, 2008. Under the terms of the waiver, the Company agreed to additional general covenants and to amend the pricing of the warrants issued in connection with the June 3, 2008 financing. The Company signed an amended waiver on October 21, 2008, that included amendments to the general covenants in the original waiver. According to MTI Global, the covenant violations provide the lenders with the right to demand repayment of its indebtedness. The Company is in continuing discussions with the lenders to obtain a waiver of the breaches. Earlier this week, MTI Global reported financial results for the three months and year ended December 31, 2008. Revenue for the three months ended December 31, 2008 was C$18.0 million representing an increase of 13.9% over 2007. The net loss for the fourth quarter of fiscal 2008 was C$6.1 million compared to a loss of C$5.2 million for the same period in 2007. Revenue for the year ended December 31, 2008, was C$71.2 million, an increase of approximately 11.9% compared to revenues of C$63.6 million for the year ended December 31, 2007. Revenue in 2008 includes an increase of approximately C$870,000 due to the impact of currency fluctuations. The net loss for the year ended December 31, 2008 was C$18.1 million compared to a net loss of C$8.1 million compared to last year. As at December 31, 2008, the Company had working capital of C$1.1 million, including cash and cash equivalents, plus restricted cash totaling C$800,000, compared with C$5.8 million at December 31, 2007. Despite an increase in current assets through revenue growth, working capital has decreased due to an increase in bank indebtedness, and accounts payable used to finance operations and subordinated debt. The Company has a demand line of credit, with a maximum of C$6.0 million. The demand line of credit is subject to working capital limits, bearing interest at the Bank's prime rate plus 2.00%. The effective rate at December 31, 2008 was 5.50%. As part of the Bank's facility agreement for the demand line of credit, certain subsidiaries of the Company have provided a general security agreement and collateral security over substantially all assets of its Polyfab and N.A. Silicone units. The amount of bank indebtedness outstanding at December 31, 2008, was C$5.9 million compared with C$6.0 million at December 31, 2007. About MTI Global MTI Global Inc. (CA:MTI) -- http://www.mtiglobalinc.com/-- designs, develops and manufactures custom-engineered products using silicone and other cellular materials. The Company serves a variety of specialty markets focused on three main product categories: Silicone, Aerospace and Fabricated Products. MTI Global's manufacturing divisions develop and produce silicone foam using patented technology. The Company designs and fabricates energy management systems from a variety of flexible, cellular materials. MTI Global also produces and distributes specialty silicone elastomer products. MTI Global's primary markets are aerospace and mass transit. Secondary markets include sporting goods, automotive, industrial, institutional, electronics, and the medical market through a 51% interest in MTI Sterne SARL of Cavaillon, France. MTI Global's head office and Canadian manufacturing operations are located in Mississauga, Ontario, with international manufacturing operations located in Richmond Virginia; Pensacola, Florida; Bremen, Germany; and a contract manufacturer venture in Ensenada, Mexico. The Company also has sales operations in England and Sweden, and an engineering support center in Brazil. MTI GLOBAL: To Focus on Aerospace Program; Divest Other Assets -------------------------------------------------------------- MTI Global Inc. and certain of its subsidiaries have entered into a binding asset purchase and sale agreement with Connecticut-based Rogers Corporation to sell the majority of the assets of Leewood and the N.A. Silicone Richmond, Virginia plant. The purchase price is US$7.4 million. Closing of the transaction, which is expected to occur within 30 days, remains subject to a number of customary conditions. MTI Global's President and Chief Executive Officer, Bill Neill, commented, "This sale was a very difficult decision to make, but it is absolutely the right one for the Company. In the face of continuing economic challenges, MTI's management and Board are committed to reducing the Company's debt obligations and stem ongoing losses. This sale will generate capital to reduce debt and allow the Company to re-focus on its primary business." Mr. Neill added, "In addition, the Company intends to divest itself of the remaining silicone assets in Milton, Florida and Cavaillon, France (Sterne) when an appropriate opportunity presents itself. We will be judicious in seeking the right buyer at the right price at the right time. Meanwhile, we will continue to manage those divisions efficiently and appropriately. In time, this planned further disposition of assets will ensure a complete and orderly exit from the silicone business. Going forward MTI Global will focus on Aerospace as its core line of business, which has excellent future growth prospects." MTI Global intends to focus on the aerospace market in 2009. The 2009 outlook, the Company says, is predicated on the successful closing of the transaction to sell the majority of the assets of Leewood and the N.A. Silicone Richmond, Virginia plant. The disposition of these assets will allow MTI Global to reduce its debt obligations and improve the health of the Company's balance sheet. The Company intends to sell its remaining silicone assets in Milton, Florida and Cavaillon, France (Sterne) when an appropriate opportunity presents itself. As the Company pursues this goal, the remaining N.A. Silicone operations at Milton will be run as efficiently as possible with cost cutting measures introduced in early 2009. At Sterne, management expects sales to continue to grow in 2009 and the division to remain profitable. The Company has outsourced its Aerospace manufacturing operations to Mexico. The focus of the Company will be to strengthen its balance sheet and return ongoing operations to full profitability. To strengthen the Company's balance sheet, address its liquidity requirements and the requirements of its lenders and to realize on its restructuring investments, the Company continues to consider and evaluate on an ongoing basis, all alternatives available to it. These alternatives include, without limitation, seeking additional sources of debt and equity financing, identifying and pursuing strategic partnerships, the disposition of certain non- core assets and other value enhancing transactions. However, there can be no assurance that such efforts will result in the Company pursuing any such alternative or, if pursued, there can be no assurance any such alternative will be successfully completed and implemented. The Company says it remains cautiously optimistic that it will report improving results into 2009. In view of the Canadian dollar value against the U.S. dollar, the Company is increasingly confident about achieving improved results with all of its aerospace programs relocated to Mexico. About MTI Global MTI Global Inc. (CA:MTI) -- http://www.mtiglobalinc.com/-- designs, develops and manufactures custom-engineered products using silicone and other cellular materials. The Company serves a variety of specialty markets focused on three main product categories: Silicone, Aerospace and Fabricated Products. MTI Global's manufacturing divisions develop and produce silicone foam using patented technology. The Company designs and fabricates energy management systems from a variety of flexible, cellular materials. MTI Global also produces and distributes specialty silicone elastomer products. MTI Global's primary markets are aerospace and mass transit. Secondary markets include sporting goods, automotive, industrial, institutional, electronics, and the medical market through a 51% interest in MTI Sterne SARL of Cavaillon, France. MTI Global's head office and Canadian manufacturing operations are located in Mississauga, Ontario, with international manufacturing operations located in Richmond Virginia; Pensacola, Florida; Bremen, Germany; and a contract manufacturer venture in Ensenada, Mexico. The Company also has sales operations in England and Sweden, and an engineering support centre in Brazil. ============= G E R M A N Y ============= AIR BERLIN: Incurs Wider Second Consecutive Annual Loss ------------------------------------------------------- Air Berlin Plc's net loss widened to EUR75 million in 2008 from a net loss of EUR39.9 million in 2007, after a tax expense from the write-off of deferred tax assets on tax loss carryforwards due to restructuring. Total revenue meanwhile rose 6.7% to EUR3.4 billion from EUR3.19 billion pro forma in the prior year. Gerrit Wiesmann at The Financial Times relates Air Berlin said it would not pay a dividend this year, the third since listing in 2006. Separately, BBC News reports travel firm TUI Travel will pay EUR28.5 million for a 19.9% holding in Air Berlin as part of a cross-shareholding agreement. In return, the German airline will get the same stake in TUI's German carrier TUIfly, BBC News says. In addition, Bloomberg News says Turkey's ESAS Holding AS said it would buy a 15.3 percent stake in Air Berlin from UBS AG. Air Berlin Plc (FRA:AB1) --- http://www.airberlin.com/--- is a Germany-based company registered in the United Kingdom, engaged in the aviation industry. The Company operates flights to the 135 destinations, including popular holiday destinations on the Mediterranean coast, in the Canary Islands and in North Africa. Its City Shuttle service also offers flights between airports in Germany and major European cities, including Amsterdam, Barcelona, Budapest, Copenhagen, Helsinki, London, Madrid, Milan, Manchester, Moscow, Saint Petersburg, Paris, Rome, Vienna and Zurich. Air Berlin also offers flight training courses to professional pilots at its licensed flight school. In 2007, Air Berlin acquired a 100% stake in an airline company LTU Luftransport-Unternehmen GmbH and a 49% stake in Belair Airlines AG. During the fiscal year ended December 31, 2007, the Company had slots at 20 German airports and its fleet consisted of 124 aircrafts. ALP TRANS: Claims Registration Period Ends April 27 --------------------------------------------------- Creditors of ALP Trans Handels und Logistik GmbH have until April 27, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 11:30 a.m. on May 8, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Vechta Hall 129 Main Building Kapitelplatz 8 49377 Vechta 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. Christian Ruhe Marschstrasse 7 49377 Vechta Germany Tel: 04441/92720 Fax: 04441/927230 The court opened bankruptcy proceedings against the company on March 24, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ALP Trans Handels und Logistik GmbH Attn: Ali Kilic, Manager Ketteler Strasse 15 49429 Visbek Germany ALSA SUED: Claims Registration Period Ends April 5 -------------------------------------------------- Creditors of Alsa Sued GmbH have until April 5, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 4:00 p.m. on April 21, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Muehldorf a. Inn Hall 116 Innstrasse 1 Muehldorf 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: Hanns Poellmann Prannerstrasse 11 80333 Munich Germany The court opened bankruptcy proceedings against the company on March 26, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Alsa Sued GmbH Attn: Axel Wendland und Dietmar Koch, Managers Soederbergstrasse 10 84513 Toeging a. Inn Germany COMMERZBANK AG: Toxic Assets Transferred to Restructuring Unit -------------------------------------------------------------- William Launder and Ulrike Dauer of Dow Jones Newswires report that Commerzbank AG on Friday said it had transferred a total of EUR55.4 billion in toxic assets into an internal holding pool, which it referred to as a "divisional restructuring unit." Dow Jones relates a spokesman for the bank said the creation of a restructuring unit allows the bank to separate its healthy business from troubled assets, which will be managed by restructuring experts. According to Dow Jones, the holdings in the unit include asset- backed securities, collateralized debt obligations and other structured products from Commerzbank's books with a market value of EUR15.5 billion, and EUR39.9 billion from the books of its newly acquired Dresdner Bank unit. Commerzbank, Dow Jones recalls, acquired Dresdner in January from insurer Allianz SE. The "new Commerzbank," including Dresdner, booked a net loss of EUR6.57 billion for 2008, Dow Jones discloses. BBC News recounts in its 2008 annual report Commerzbank said "In 2009, nearly all portfolios are suffering from the stress caused by market conditions, which is why the bank's results will be strongly affected by charges against earnings". Headquartered in Frankfurt am Main, Germany, Commerzbank AG -- http://www.commerzbank.com/-- is the parent company of a financial services group active around the world. The group's operating business is organized into six segments providing each other with mutually beneficial synergies: Private and Business Customers, Mittelstandsbank, Central and Eastern Europe , Corporates & Markets, Commercial Real Estate and Public Finance and Treasury. * * * As reported in the Troubled Company Reporter-Europe on March 31, 2009, Fitch Ratings affirmed Germany-based Commerzbank AG's and Dresdner Bank AG's Issuer Default Ratings on continued strong state support, while downgrading their Individual ratings on weakening balance sheet and concerns over their risk profiles. Both banks' Long-term Issuer Default Rating and Short-term IDR were affirmed at 'A' and 'F1', with Stable Outlook. Both the Support Ratings and the Support Rating Floors were affirmed at '1' and 'A', respectively. Commerzbank's Individual Rating was downgraded to 'D/E' from 'C' and Dresdner's was downgraded to 'E' from 'D'. Both ratings were removed from Rating Watch Negative. DRESDNER BANK: S&P Cuts Ratings on Hybrid Instruments to 'C' ------------------------------------------------------------ Standard & Poor's Ratings Services said it lowered its issue ratings on Dresdner Bank AG's EUR1 billion hybrid Tier 1 capital instruments issued through HT1 Funding GmbH and on the bank's EUR750 million upper Tier 2 capital instruments issued through UT2 Funding PLC to 'C' from 'CC'. The ratings were removed from CreditWatch, where they were originally placed with negative implications on Jan. 12, 2009. The ratings on other hybrid capital instruments of Dresdner Bank AG (A/Stable/A-1) and of other members of the Commerzbank group are unaffected. Commerzbank AG (A/Stable/A-1) is the 100% owner of Dresdner Bank since Jan. 12, 2009. This rating action follows the March 27, 2009, publication of Dresdner Bank AG's 2008 unconsolidated financial report, which confirmed the loss allocation to and resulting reduction in face value of the "stille Einlagen" and "Genussscheine", in which HT1 and UT2 have invested. S&P understands that this reduces, at least temporarily, the liquidation preference amount of both HT1 and UT2, and the redemption amount of UT2. Dresdner Bank's financial report states that the book value of "stille Einlagen" underlying HT1 has been reduced to EUR843 million from EUR1.0 billion, and the book value of "Genussscheine" underlying UT2 to EUR632 million from EUR750 million. The report also confirms that coupons on both instruments will be deferred. In the case of HT1, the terms of the instruments state that Dresdner Bank's former owner, Allianz SE (AA/Stable/A-1+), would make coupon payments instead of Dresdner Bank according to the terms of a contingent indemnity agreement, but the interest rate would be paid on the instruments' reduced book value only. Ratings List Downgraded HT1 Funding GmbH To From -- ---- Junior subordinated* C CC/Watch Neg UT2 Funding PLC To From -- ---- Junior subordinated C CC/Watch Neg Ratings Unaffected Dresdner Funding Trust I Dresdner Funding Trust II Dresdner Funding Trust III Dresdner Funding Trust IV Junior subordinated BB/Watch Neg Commerzbank Capital Funding Trust I Commerzbank Capital Funding Trust II Commerzbank Capital Funding Trust III Preferred stock BB/Watch Neg Eurohypo Capital Funding Trust I Eurohypo Capital Funding Trust II Preferred stock** BB/Watch Neg * Support provided by Allianz SE ** Guaranteed by Eurohypo AG DYNASTIE GMBH: Claims Registration Period Ends April 27 ------------------------------------------------------- Creditors of Dynastie GmbH have until April 27, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on 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 Hannover Hall 226 Second Upper Floor Service Bldg. Hamburger Allee 26 30161 Hannover 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: Jens Wilhelm V. Hohenzollernstrasse 53 30161 Hannover Germany Tel: 0511 696846-0 Fax: 0511 696846-79 The court opened bankruptcy proceedings against the company on March 24, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Dynastie GmbH Misburger Strasse 81 30625 Hannover Germany Attn: Setyawan Pranatio Hutomo, Manager Lehrter Strasse 26 30559 Hannover Germany GELDILUX-TS-2007 SA: S&P Puts Four Low-B Rated Notes on Watch Neg. ------------------------------------------------------------------ Standard & Poor's Ratings Services placed on CreditWatch negative its credit ratings on all the rated classes of notes issued by Geldilux-TS-2007 S.A. and Geldilux-TS-2008 S.A. Both transactions were originated by Bayerische Hypo- und Vereinsbank AG, currently rated A/Stable/A-1. The securitized assets are short-term loans granted to preferred clients from various business segments. The majority of the borrowers are small and midsize enterprises. The loans have a maximum maturity of 368 days and feature a bullet repayment. These loans are products under the framework of a client's working capital facility or term facility offered by HVB. Both securitizations feature a covenant that caps the weighted-average life of the pool during replenishment at 90 days. The CreditWatch placements reflect S&P's revised view on the refinance risk prevalent in both portfolios, rather than reflecting historical performance levels. This refinance risk is of particular relevance in a de-linked rating approach, as applied to the 'AAA' rated class A notes in both transactions. Under this scenario, the originator would default and borrowers would suddenly need to find third-party refinancing for maturing loans. While HVB is still performing, maturing loans are typically being rolled or refinanced by drawdowns on the working capital facility or term facility. Given that the ratings on Geldilux-TS-2007's class B to E notes and Geldilux-TS-2008's class B to D notes are weak-linked to the senior-unsecured rating of HVB, S&P expects the effect of S&P's revised assessment of refinance risk to be more pronounced for the senior notes in both transactions. In S&P's analysis, S&P also looked into recent portfolio information and reassessed its initial assumption of gross defaults. This further indicated that the likelihood of negative rating actions on the weak-linked classes of notes has increased. S&P will now conduct a detailed review (including loan-level analysis of both portfolios) of both transactions. In particular, S&P will analyze the credit quality and credit stability of the entire loan book behind these Geldilux securitizations, as both transactions feature a random asset selection mechanism. Ratings List Ratings Placed on CreditWatch Negative Geldilux-TS-2007 S.A. EUR2.104 Billion Credit-Linked Floating-Rate Notes Rating ------ Class To From ----- -- ---- A AAA/Watch Neg AAA B A/Watch Neg A C BBB/Watch Neg BBB D BB/Watch Neg BB E B/Watch Neg B Liq notes AAA/Watch Neg AAA Geldilux-TS-2008 S.A. EUR1,459.4 Million Secured Floating-Rate Notes Rating ------ Class To From ----- -- ---- A SS AAA/Watch Neg AAA A1 AAA/Watch Neg AAA A2 AAA/Watch Neg AAA B A/Watch Neg A C BBB/Watch Neg BBB D BB/Watch Neg BB D SS BB/Watch Neg BB Liq notes AAA/Watch Neg AAA ISO MASSIV: Claims Registration Period Ends May 8 ------------------------------------------------- Creditors of ISO Massiv Systembau 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 9:30 a.m. on June 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 Aachen Room D 1.409 Adalbertsteinweg 92 52070 Aachen Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Thomas Georg Juelicher Strasse 116 52070 Aachen Germany Tel0241/94618-0 Fax: 0241/533562 The court opened bankruptcy proceedings against the company on March 9, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ISO Massiv Systembau GmbH Indestr. 20 52249 Eschweiler Germany Attn: Petra Henk, Manager Hauptstr. 134 52379 Langerwehe Germany KUFNER TEXTILWERKE: Claims Registration Period Ends May 8 --------------------------------------------------------- Creditors of Kufner Textilwerke 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 9:15 a.m. on June 8, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Munich Meeting Room 101 Infanteriestr. 5 80097 Munich 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. Wolfgang Ott Nymphenburgerstr. 139 80636 Munich Germany Tel: 089/120260 Fax: 089/12026127 The court opened bankruptcy proceedings against the company on March 24, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Kufner Textilwerke GmbH Attn: Walter Kraus, Manager Irschenhauser Str. 10 81379 Munich Germany PEGASUS TRANSPORTE: Claims Registration Period Ends May 8 --------------------------------------------------------- Creditors of Pegasus Transporte 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 9:00 a.m. on May 29, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Bielefeld Hall 4065 Fourth Floor Gerichtstrasse 66 33602 Bielefeld 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: Axel Geese Adenauerplatz 4 33602 Bielefeld Germany The court opened bankruptcy proceedings against the company on March 20, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Pegasus Transporte GmbH Bottroper Str. 8 33649 Bielefeld Germany Attn: Frank Bergmann, Manager Babenhauser Str. 263 33619 Bielefeld Germany SMR BAU: Claims Registration Period Ends April 16 ------------------------------------------------- Creditors of SMR Bau GmbH have until April 16, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9:50 a.m. on May 29, 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 14 Luxemburger Strasse 101 50939 Cologne Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Joerg Nerlich Sachsenring 81 50667 Cologne Tel: 33660-332 Fax: 33660333 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: SMR Bau GmbH Lachemer Weg 14 50737 Cologne Germany Attn: Merte Bayrakcioglu, Manager Liller Stsr. 2 50765 Cologne Germany ============= I R E L A N D ============= CLOVERIE PLC: Moody's Cuts Rating on Series 2005-93 Notes to 'Ba1' ------------------------------------------------------------------ Moody's Investors Service has downgraded four classes of notes issued by Cloverie Plc (Sphaera I). Sphaera is a static synthetic collateralized debt obligation of sovereign and corporate emerging market entities. Upon the occurrence of a credit event, a fixed recovery rate of 40% will be used to assess the final price. The portfolio references 100 equally weighted entities, and presents concentrated single- sovereign exposures, the largest of which are to Russia (9%), India (7%), South Korea (7%) and Mexico (7%). Moody's explained that the ratings actions announced are linked to (i) the application of revised and updated key modeling parameter assumptions that Moody's uses to rate and monitor ratings of Corporate Synthetic CDOs and (ii) the deterioration in the credit quality of the collateral securing the notes. The revisions affect key parameters in Moody's model for rating Corporate Synthetic CDOs: default probability, asset correlation, and other credit indicators such as ratings reviews and outlooks. Moody's announced the changes to these assumptions in a press release published on January 15, 2009. Moody's initially analyzed and continues to monitor this transaction using primarily the methodology and its supplements for corporate synthetic CDOs as described in Moody's Special Reports and press releases below: -- Moody's Approach To Rating Corporate Collateralized Synthetic Obligations (March 2009) -- Moody's revises its methodology for Emerging Market CDOs (11 April 2007) The rating actions are: Cloverie Plc (Sphaera I): (1) Series 2005-90, EUR17,500,000 Floating Rate Portfolio Credit Linked Notes due 2010 -- Current Rating: Baa1 -- Prior Rating: Aa3, under review for possible downgrade -- Prior Rating Action: 18 March 2009, Aa3 placed under review for possible downgrade (2) Series 2005-91 EUR7,500,000 Floating Rate Portfolio Credit Linked Notes due 2010 -- Current Rating: Baa1 -- Prior Rating: Aa3, under review for possible downgrade -- Prior Rating Action: 18 March 2009, Aa3 placed under review for possible downgrade (3) Series 2005-92 EUR10,000,000 Floating Rate Portfolio Credit Linked Notes due 2010 -- Current Rating: Baa2 -- Prior Rating: Aa3, under review for possible downgrade -- Prior Rating Action: 18 March 2009, Baa2 placed under review for possible downgrade (4) Series 2005-93 US$12,000,000 Floating Rate Portfolio Credit Linked Notes due 2010 -- Current Rating: Ba1 -- Prior Rating: A2, under review for possible downgrade -- Prior Rating Action: 18 March 2009, A2 placed under review for possible downgrade CLOVERIE PLC: S&P Junks Ratings on Four Classes of Notes -------------------------------------------------------- Standard & Poor's Ratings Services lowered and removed from CreditWatch negative its credit ratings on various notes issued by Cloverie PLC and Salisbury International Investments Ltd., related to the "Onyx" series of deal. These rating actions follow downgrades and CreditWatch negative placements in the underlying reference portfolios of these transactions. Furthermore, in some of the portfolios backing these notes, up to 10 assets have defaulted. S&P has lowered the ratings because, in its opinion, the risks that noteholders may not receive their full principal have risen to levels that are no longer consistent with the ratings previously assigned. The portfolios are static and reference U.S. home equity line of credit residential mortgage-backed securities of the 2004 and 2005 vintages. In addition, S&P has withdrawn the rating assigned to Cloverie PLC series 2004-73, having recently received confirmation that it terminated in September 2007. Ratings List Ratings Lowered and Removed from Creditwatch Negative Cloverie PLC US$15 Million Class C Secured Floating-Rate Portfolio-Linked Notes Series 2005-46 Ratings ------- To From -- ---- CCC- A/Watch Neg Cloverie PLC US$15 Million Class C Secured Floating-Rate Portfolio-Linked Notes Series 2005-47 Ratings ------- To From -- ---- CCC- A/Watch Neg Cloverie PLC US$15 Million Class C Secured Floating-Rate Portfolio-Linked Notes Series 2005-48 Ratings ------- To From -- ---- CCC- A/Watch Neg Cloverie PLC US$15 Million Class C Secured Floating-Rate Portfolio-Linked Notes Series 2005-49 Ratings ------- To From -- ---- CCC- A/Watch Neg Salisbury International Investments Ltd. US$18.75 Million Class C Secured Floating-Rate Portfolio-Linked Notes (Onyx) Series 2005-10 Ratings ------- To From -- ---- CCC- A/Watch Neg Salisbury International Investments Ltd. US$18.75 Million Class C Secured Floating-Rate Portfolio-Linked Notes (Onyx) Series 2005-11 Ratings ------- To From -- ---- CCC- A/Watch Neg Salisbury International Investments Ltd. US$18.75 Million Class C Secured Floating-Rate Portfolio-Linked Notes (Onyx) Series 2005-12 Ratings ------- To From -- ---- CCC- A/Watch Neg Salisbury International Investments Ltd. US$18.75 Million Class C Secured Floating-Rate Portfolio-Linked Notes (Onyx) Series 2005-13 Ratings ------- To From -- ---- CCC- A/Watch Neg Rating Withdrawn Cloverie PLC EUR30 Million Secured Floating-Rate Portfolio Linked Notes Series 2004-73 Ratings ------- To From -- ---- NR A+/Watch Neg EIRLES TWO: S&P Withdraws 'CCC' Rating on Series 162 Notes ---------------------------------------------------------- Standard & Poor's Ratings Services removed from CreditWatch negative and withdrew its 'CCC' credit rating on notes series 162 issued by Eirles Two Ltd. The rating has been withdrawn at the noteholder's request. GS EUROPEAN: Fitch Junks Ratings on Class E and F Notes ------------------------------------------------------- Fitch Ratings has downgraded four classes of GS European Performance Fund Limited's notes and affirmed the class A and B notes. -- EUR737,302,957 class A affirmed at 'AAA'; assigned a Stable Outlook -- EUR147,460,591 class B affirmed at 'AA'; assigned a Stable Outlook -- EUR206,444,828 class C downgraded to 'BBB' from 'A-' (A minus); assigned a Stable Outlook -- EUR265,429,065 class D downgraded to 'B' from 'BBB-' (BBB minus); Outlook Negative -- EUR58,984,237 class E downgraded to 'CCC' from 'BB-' (BB minus); assigned a Recovery Rating of 'RR5' -- EUR58,984,237 class F downgraded to 'CCC' from 'B-' (B minus); assigned a Recovery Rating of 'RR5' 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 expected credit deterioration in the collateral pool. The new criteria incorporate Fitch's view on industry and vintage concentration risks and the propensity for low recoveries upon default, particularly for thin tranches. Exposure to assets with expected near-term credit deterioration has particularly affected Fitch's view of the credit worthiness of transaction's junior tranches. In Fitch's analysis, names on Negative Outlook are treated as one notch lower than the current rating. Currently, 21% of the portfolio has a Fitch Derived Rating of 'CCC' or below. Of the portfolio, 7.7% remains on Negative Outlook. The portfolio contains 27 obligors with the largest exposure comprising 7.7% of the portfolio and the three largest exposure comprising 18.7%. The portfolio consists of 84% senior secured loans and 16% B-notes. In terms of industry concentration, broadcasting and media is the largest industry which makes up approximately 33% of the portfolio. German loans are the largest country exposure at approximately 40% of the current portfolio, and the U.K forms the second largest exposure at 15%. In the current economic environment, leverage loans and real estate related B-notes assets are generally trading noticeably below their par amount. The transaction's market value trigger set at 87% of the par amount in the structure has been in breach since November 2008. Consequently, if the level of the market value of the portfolio remains below the threshold in the coming months, interest will be diverted away from the junior notes. These diverted proceeds will be put into escrow accounts for the benefit of the notes as per the transaction document. Fitch expects this mechanism to benefit the senior notes. The class E and F notes have been downgraded to 'CCC' reflecting high exposure to 'CCC' and below assets in the portfolio. The current levels of credit enhancement for these notes (14% and 10% taking into account the unfunded guarantee from GS) compare unfavorably to the current level of 21% exposure to 'CCC' and below assets. Additionally, Fitch has observed a negative credit migration on leveraged loans assets accounting for 15% of the portfolio. GS European Performance Fund is a securitization of mainly European leveraged loans and real estate related B-notes with a total note issuance of EUR1.5 billion. The portfolio is actively managed by Goldman Sachs International until the end of the reinvestment period in September 2009. After this period, Fitch expects the transaction to start de-leveraging. Goldman Sachs International has multiple roles in the transaction. First, Goldman Sachs is providing asset swaps on the underlying assets including currency and interest rate hedges. In addition, Goldman Sachs, acting as the manager and a liquidity provider, provides an unfunded guarantee for 10% of the notes. Since the closing date, protection language has been put in place to remove the exposure to the bank upon Goldman Sachs's downgrade below 'A'/'F1'. SR TECHNICS: Management Buyout Could Save Up to 900 Jobs -------------------------------------------------------- SR Technics on Monday night received a preliminary draft proposal from existing management, Irish Times' Martin Wall reports citing a company spokesman. Irish Times relates the spokesman said the company was awaiting a final proposal which would be fully evaluated with all other expressions of interest. On March 23, 2009, the Troubled Company Reporter-Europe, citing Breakingnews.ie, reported that there have been up to 30 expressions from different parties interested in taking over the company. The IDA told SIPTU officials that major players in the aviation sector are among the potential buyers, the report disclosed. Irish Times notes a spokesman for Minister for Enterprise and Employment Mary Coughlan on Monday night said the IDA and Enterprise Ireland are currently investigating offers for the company to see if they are commercially viable with a view to maintaining the largest possible number of operations and jobs on site. According to Irish Times, the MBO, if successful, could save up to 900 jobs at the company. Irish Times recalls the company announced last month it is to close its operation at Dublin airport with the loss of 1,100 jobs. Michael Brennan of Independent.ie reports SR Technics plans to make 600 workers redundant on Friday, with the remaining 500 workers due to lose their jobs later in the year. Redundancy Payments Irish Times recounts SR Technics at a Labour Court Hearing said it was unwilling, due to financial reasons, to defer the 600 redundancies. The company, as cited by Irish Times, said it is not in a position to increase the funds available for the redundancy package as it is currently implementing a financial and operational restructuring of its group-wide operations. Independent.ie discloses SIPTU branch organizer Pat Ward said workers were willing to consider taking wage cuts to support the proposed MBO. Independent.ie notes according to the union the IDA would need to provide EUR25 million to support the MBO, which would help to pay for the cost of tools at the plant and renting the premises. "I understand the MBO would need about EUR25 million in IDA aid, which is half the expected cost to the exchequer of letting the facility close. That is not to mention the loss to the economy of the skills base of the workforce and potential income it could generate, as it has for the past half century," Irish Times quoted Mr. Ward as saying. SR Technics -- http://www.srtechnics.com/-- provides technical solutions for airlines worldwide. It services are provided either directly to the airline or through other parties such as aircraft leasing companies, OEMs (Original Equipment Manufacturers) or component trading companies. ========= I T A L Y ========= ALITALIA-LINEE: Bids for Stake in Alicos Due April 28 ----------------------------------------------------- Alitalia-Linee Aeree Italiane S.p.A.'s extraordinary administrator, Prof. Avv. Augusto Fantozzi, offers for sale the company's stake in Alicos S.p.A. Expressions of interest in the purchase of the shareholding must be received by 12:00 noon (Italian time), on April 28, 2009. The stake for sale corresponds to 40% of Alitalia-Linee's share capital. Alicos is a company active in the (i) planning, definition, development and sale of assistance and customer care phone and data transmission services; (ii) management of national and international, incoming and outgoing, phone and data transmission traffic, in connection with booking, information, marketing and any other customer care services, also by way of internet, intranet and extranet; (iii) assistance in the above-mentioned areas, also by way of technical support and maintenance activities; (iv) creation and development of advanced technologies and software management for e-trading, related to the performance of the foregoing services; (v) promotional activities for the foregoing services and any other activity related to their definition and performance; and (vi) tour operator and management of travel and tourism agency business activities, also through the setting up of branches and subsidiaries. CHRYSLER LLC: Fiat to Take Less Than 35% Stake Under New Deal ------------------------------------------------------------- Marco Bertacche and Francesca Cinelli at Bloomberg News report Chrysler LLC and Cerberus Capital Management LP have a "framework" of an alliance with Fiat SpA. The news agency, citing a government official with knowledge of the plans, says under a new deal, Fiat would take less than 35 percent equity in Chrysler initially. Earlier reports said Fiat is likely to take a 35% stake in Chrysler by the middle of the year. According to Bloomberg News's Mike Ramsey, a person familiar with the alliance plans said Fiat would take an initial holding of 20 percent in Chrysler, and ultimately would be limited to a 49 percent stake. Chrysler has been trying to keep itself afloat. As reported by the Troubled Company Reporter on March 20, 2009, its Chief Financial Officer Ron Kolka, has said even if Chrysler gets additional government loans, it could face another cash shortage in July when revenue dries up as the company shuts down its factories for two weeks to change from one model year to the next. The Company's CFO has said Chrysler planned for the US$4 billion federal government bailout it received Jan. 2 to last through March 31. The Company is talking with the Obama administration's autos task force about getting another US$5 billion, and had a March 31 deadline to complete its plan to show how it can become viable and repay the loans. General Motors Corp. and Chrysler admitted in their viability plans submitted to the U.S. Treasury on February 17 that they considered bankruptcy scenarios, but ruled out the idea, citing that a Chapter 11 filing would result to plummeting sales, more loans required from the U.S. government, and the collapse of dealers and suppliers. Fiat Chief Executive Officer Sergio Marchionne meanwhile is "confident" that Chrysler and Fiat will succeed in talks with the U.S. administration on further aid, according to Bloomberg News. About Fiat SpA Based in Torino, Italy, Fiat S.p.A. (OTC:FIATY) -- http://www.fiatgroup.com/-- is principally engaged in the manufacture and distribution of automobiles, agricultural and construction equipment, and commercial vehicles, in addition to components for those products. The Company also provides financial services, primarily through joint ventures with international banking groups. Through its subsidiaries, Fiat operates mainly in five business areas: Automobiles, Agricultural and Construction Equipment, Trucks and Commercial Vehicles, Components and Production Systems, and Other Businesses. On March 20, 2008, FPT Powertrain Technologies acquired 100% of Tritec Motors Limitada from Chrysler L.L.C. and subsequently changed its name to FPT Powertrain do Brasil-Industria e Comercio de Motores Ltda. During the year ended December 31, 2008, the Company acquired remaining 0.33% interest in European Engine Alliance. About Chrysler LLC Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * As reported in the Troubled Company Reporter on Dec. 3, 2008, Dominion Bond Rating Service downgraded the ratings of Chrysler LLC, including Chrysler's Issuer Rating to CC from CCC (high). Chrysler's First Lien Secured Credit Facility and Second Lien Secured Credit Facility have also been downgraded to CCC and CC (low) respectively. All trends are Negative. The ratings action reflects Chrysler's challenge to maintain sufficient liquidity balances amid severe industry conditions that have deteriorated alarmingly over the past few months and are not expected to improve in the near term. With this ratings action, Chrysler is removed from Under Review with Negative Implications, where it was placed on Nov. 7, 2008. As reported in the Troubled Company Reporter on Aug. 11, 2008, Standard & Poor's Ratings Services lowered its ratings on Chrysler LLC, including the corporate credit rating, to 'CCC+' from 'B-'. On July 31, 2008, TCR said that Fitch Ratings downgraded the Issuer Default Rating of Chrysler LLC to 'CCC' from 'B-'. The Rating Outlook is Negative. The downgrade reflects Chrysler's restricted access to economic retail financing for its vehicles, which is expected to result in a further step-down in retail volumes. Lack of competitive financing is also expected to result in more costly subvention payments and other forms of sales incentives. Fitch is also concerned with the state of the securitization market and the ability of the automakers to access this market on an economic basis over the near term, given the steep drop in residual values, higher default rates, higher loss severity being experienced and jittery capital market. As reported in the TCR on Dec. 3, 2008, Dominion Bond Rating Service downgraded on Nov. 20, 2008, the ratings of Chrysler LLC, including Chrysler's Issuer Rating to CC from CCC (high). Chrysler's First Lien Secured Credit Facility and Second Lien Secured Credit Facility have also been downgraded to CCC and CC (low) respectively. All trends are Negative. The ratings action reflects Chrysler's challenge to maintain sufficient liquidity balances amid severe industry conditions that have deteriorated alarmingly over the past few months and are not expected to improve in the near term. With this ratings action, Chrysler is removed from Under Review with Negative Implications, where it was placed on Nov. 7, 2008. TISCALI SPA: Carphone Warehouse Eyes Last Minute Bid for UK Biz --------------------------------------------------------------- Mark Kleinman, Amanda Andrews and Rupert Neate at the Daily Telegraph report that Carphone Warehouse is considering a last minute bid for Tiscali SpA's UK broadband business. Carphone, the Daily Telegraph recalls, withdrew from talks last year. The Daily Telegraph notes Carphone's TalkTalk home broadband division hopes it will be able snap up Tiscali for a bargain basement price. Reuters discloses Tiscali said on Friday its creditor banks had agreed to suspend its debt repayments. Tiscali, Reuters says, asked bankers to suspend interest payments on March 6 after negotiations to sell its UK assets to BSkyB became impossible to continue due to a deterioration in market conditions. According to the Daily Telegraph, BSkyB only offered to pay about GBP250 million for the UK business, which Tiscali originally put up for sale for about GBP500 million. Reuters recounts Tiscali was suspended from the Italian stock exchange earlier this month after it warned that it will not be able to meet interest payments. It had been planning to use the proceeds from the sale to pay down its EUR601 million (GBP558 million) debt, Reuters notes. The Daily Telegraph states analysts believe Tiscali will fall into administration if it does not find a buyer for the UK business soon. In a separate report Reuters discloses Tiscali said it is not currently planning a capital increase, although one Milan-based analyst had indicated that given Tiscali's large debt position, the company ought to be recapitalized. About Tiscali Cagliari, Italy-based Tiscali S.p.A. (BIT:TIS) -- http://www.tiscali.com/-- is an Internet communications company providing broadband and narrowband access for consumer and business applications, as well as communications services and content. The Company's portfolio includes Internet access in the form of dial-up, broadband, satellite and leased lines, and hosting services, such as co-location, shared hosting and managed hosting. Tiscali also offers streaming media, telephony and such services as virtual private networks (VPN), allowing companies to communicate with remote branches. Its consumer products and services include Internet access, voice, media, Internet Protocol Television (IPTV) and value-added services, such as e-mail, Net calendar, Net fax, Net phone, mail, instant messaging and Web hosting. It is operational in Europe through its subsidiaries and joint ventures. As of June 30, 2008, Tiscali had approximately 3.2 million active users in Italy and the United Kingdom. =================== K A Z A K H S T A N =================== BAKSMAR KAZAKHSTAN: Creditors Must File Claims by May 1 ------------------------------------------------------- LLP Baksmar Kazakhstan has declared insolvency. Creditors have until May 1, 2009, to submit written proofs of claim to: Bogenbai batyr St. 148 Almaty Kazakhstan BOLASHAK KURYLYS: Creditors Must File Claims by May 1 ----------------------------------------------------- LLP Kaz Bolashak Kurylys has declared insolvency. Creditors have until May 1, 2009, to submit written proofs of claim to: Aimanov St. 155 Almaty Kazakhstan BTA DPR: Moody's Junks Ratings on Four Series of Notes ------------------------------------------------------ Moody's Investors Service has downgraded and placed on review for possible further downgrade these series of notes issued by BTA DPR Company: - US$200,000,000 Series 2007-A Floating Rate Note due 2015, from B1 to Ca - US$150,000,000 Series 2007-D Floating Rate Notes due 2015, from B1 to Ca Moody's has also downgraded and placed on review for further downgrade the underlying ratings reflecting the risk posed to the providers of the financial guarantees in relation to these series of notes (for the avoidance of doubt, these underlying ratings do not take the benefit of the related financial guarantees into account and the ratings of the notes, which incorporate the support of such guarantees, are unaffected by this rating action): - US$200,000,000 Series 2007-B Floating Rate Note due 2015, from B1 to Ca - US$200,000,000 Series 2007-C Floating Rate Note due 2015, from B1 to Ca The rating action reflects Moody's downgrade of BTA Bank's foreign currency senior unsecured debt rating from B1 to Ca on March 27, 2009. The senior unsecured debt ratings of BTA Bank remain on review for possible further downgrade. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors. -- Date of last rating action: 27 February 2009 DAN AI LTD: Creditors Must File Claims by May 1 ----------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Dan Ai Ltd. insolvent. Creditors have until May 1, 2009, to submit written proofs of claim to: Tauelsyzdyk St. 53 Taldykorgan Almaty Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of Almaty Tauelsyzdyk St. 53 Taldykorgan Almaty Kazakhstan DENIMA LLP: Creditors Must File Claims by May 1 ----------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan has declared LLP Denima insolvent. Creditors have until May 1, 2009, to submit written proofs of claim to: Bajov St. 2 070000 Ust-Kamenogorsk East Kazakhstan Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of East Kazakhstan Bajov St. 2 070000 Ust-Kamenogorsk East Kazakhstan Kazakhstan FESTIVALS INTERNATIONAL: Creditors Must File Claims by May 1 ------------------------------------------------------------ LLP Festivals International has declared insolvency. Creditors have until May 1, 2009, to submit written proofs of claim to: Jeltoksan St. 27-68 Almaty Kazakhstan G-KART TELECOM: Creditors Must File Claims by May 1 --------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP G-Kart Telecom insolvent. Creditors have until May 1, 2009, to submit written proofs of claim to: Kazybek St. 50 Almaty Kazakhstan Tel: 8 (7272) 60-97-92 8 (7272) 60-98-06 The Court is located at: The Specialized Inter-Regional Economic Court of Almaty Baizakov St. 273b Almaty Kazakhstan KAZINVESTBANK: Moody's Withdraws 'E+' Financial Strength Rating --------------------------------------------------------------- Moody's Investors Service has withdrawn Kazinvestbank's bank financial strength rating of E+ and the bank's long-term and short-term local currency and foreign currency deposit ratings of B2/Not Prime. The long-term local and foreign currency deposit ratings had been placed on review for possible downgrade on December 12, 2008. Moody's has withdrawn these ratings for business reasons following the official request from Kazinvestbank and has not been able to conclude the review for downgrade due to lack of information. Moody's notes that, as of the date of the ratings withdrawal, Kazinvestbank had no outstanding debts rated by Moody's. Moody's was unable to conclude the review on the bank's ratings prior to the withdrawal, because of lack of information. The systemic and prolonged financial crisis in Kazakhstan resulted in a rapid deterioration of the financial strength of Kazakh banks and Moody's expects that the crisis will continue to adversely affect the banking system in the near future. As a result of these rapidly deteriorating market conditions the conclusion of the review process could potentially have resulted in negative rating implications for Kazinvestbank's long-term local currency and foreign currency deposit ratings. Moody's previous rating action on Kazinvestbank was implemented on December 12, 2008, when the bank's deposit ratings were placed on review for possible downgrade and the bank's BFSR was affirmed at E+. Domiciled in Almaty, Kazakhstan, Kazinvestbank reported total audited IFRS consolidated assets and net income of US$481 million and US$7.6 million, respectively, as of year-end 2007 (US$199 million and US$900,000, respectively, at year-end 2006). NAURYZ-SU LLP: Creditors Must File Claims by May 1 -------------------------------------------------- LLP Company Nauryz-Su has declared insolvency. Creditors have until May 1, 2009, to submit written proofs of claim to: Micro "Jetysu-2", 42-46 Almaty Kazakhstan RADIAN PLUS: Creditors Must File Claims by May 1 ------------------------------------------------ The Specialized Inter-Regional Economic Court of East Kazakhstan has declared LLP Radian Plus insolvent. Creditors have until May 1, 2009, to submit written proofs of claim to: Bajov St. 2 070000 Ust-Kamenogorsk East Kazakhstan Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of East Kazakhstan Bajov St. 2 070000 Ust-Kamenogorsk East Kazakhstan Kazakhstan RIELS-2000 LLP: Creditors Must File Claims by May 1 --------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Riels-2000 insolvent. Creditors have until May 1, 2009, to submit written proofs of claim to: Gogol St. 177a Kostanai Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of Kostanai Baitursynov St. 70 Kostanai Kazakhstan STAL I PLASTMASSA: Creditors Must File Claims by May 1 ------------------------------------------------------ The Specialized Inter-Regional Economic Court of Almaty has declared LLP Stal I Plastmassa Kadukov insolvent. Creditors have until May 1, 2009, to submit written proofs of claim to: Micro "Mamyr-4", 14 Almaty Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of Almaty Baizakov St. 273b Almaty Kazakhstan =================== K Y R G Y Z S T A N =================== MULTI-PROFESIONAL SERVICES: Claims Filing Period Ends April 10 -------------------------------------------------------------- Creditors of LLC Multi-Profesional Services have until April 10, 2009, to submit proofs of claim to: The company can be reached at: LLC Multi-Profesional Services Tel: (+996 312) 24-55-16 ===================== N E T H E R L A N D S ===================== DUTCH MORTGAGE: S&P Lifts Ratings on Class D Notes to 'BB+' ----------------------------------------------------------- Standard & Poor's Ratings Services took various rating actions on notes in five Dutch Mortgage Portfolio Loans transactions, primarily driven by the increased seasoning and house price appreciation on the underlying assets since closing, together with continued low arrears levels. Specifically, S&P: -- raised its credit ratings on nine tranches; -- placed four tranches on CreditWatch positive; and -- affirmed its ratings on six tranches. The rating actions follow a full credit analysis of the most recent transaction information that S&P has received. S&P carried out the analysis for the DMPL IV and V transactions after S&P placed certain notes on CreditWatch positive in October 2008 and also involved a full cash flow analysis. The transactions have all benefited from deleveraging. This means the notes (excluding the excess spread notes) benefit from increased credit enhancement. Ratings List Ratings Raised Dutch Mortgage Portfolio Loans I B.V. EUR1 Billion Secured Fixed and Floating-Rate Mortgage-Backed Notes Rating ------ Class To From ----- -- ---- B AAA AA+ C AA A+ Dutch Mortgage Portfolio Loans II B.V. EUR1 Billion Secured Fixed And Floating-Rate Mortgage-Backed Notes and EUR5 Million Excess Spread Notes Rating ------ Class To From ----- -- ---- D BB+ BB Dutch Mortgage Portfolio Loans IV B.V. EUR1.25 Billion Secured Floating-Rate Mortgage-Backed Notes and EUR6.25 Million Excess Spread Notes Rating ------ Class To From ----- -- ---- B AA A/Watch Pos C A BBB/Watch Pos D BBB BB Dutch Mortgage Portfolio Loans V B.V. EUR1.25 Billion Secured Floating-Rate Mortgage-Backed Notes and EUR6.25 Million Excess Spread Notes Rating ------ Class To From ----- -- ---- B AA AA-/Watch Pos C A BBB/Watch Pos D BB+ BB/Watch Pos Ratings Placed on Creditwatch Positive Dutch Mortgage Portfolio Loans II B.V. EUR1 Billion Secured Fixed and Floating-Rate Mortgage-Backed Notes and EUR5 Million Excess Spread Notes Rating ------ Class To From ----- -- ---- B A+/Watch Pos A+ C BBB+/Watch Pos BBB+ Dutch Mortgage Portfolio Loans III B.V. EUR1.25 Billion Secured Floating-Rate Mortgage-Backed Notes and EUR6.25 Million Excess Spread Notes Rating ------ Class To From ----- -- ---- B AA/Watch Pos AA C A/Watch Pos A Ratings Affirmed Dutch Mortgage Portfolio Loans I B.V. EUR1 Billion Secured Fixed and Floating-Rate Mortgage-Backed Notes Class Rating ----- ------ A AAA Dutch Mortgage Portfolio Loans II B.V. EUR1 Billion Secured Fixed and Floating-Rate Mortgage-Backed Notes and EUR5 Million Excess Spread Notes Class Rating ----- ------ A AAA Dutch Mortgage Portfolio Loans III B.V. EUR1.25 Billion Secured Floating-Rate Mortgage-Backed Notes and EUR6.25 Million Excess Spread Notes Class Rating ----- ------ A AAA D BB+ Dutch Mortgage Portfolio Loans IV B.V. EUR1.25 Billion Secured Floating-Rate Mortgage-Backed Notes and EUR6.25 Million Excess Spread Notes Class Rating ----- ------ A AAA Dutch Mortgage Portfolio Loans V B.V. EUR1.25 Billion Secured Floating-Rate Mortgage-Backed Notes and EUR6.25 Million Excess Spread Notes Class Rating ----- ------ A AAA HOLLAND HOMES: Fitch Affirms Rating on Class D Notes at 'BB' ------------------------------------------------------------ Fitch Ratings has taken various rating actions on Holland Homes MBS 2000-1 B.V. and Holland Homes MBS 2003-1 B.V. The rating actions reflect continued good performance and the seasoning of the two transactions. Both transactions have shown low levels of arrears compared to the current outstanding mortgage balance. As of January 2009, for series 2000-1 the arrears greater than three months were 0.1%, and for series 2003-1 loans greater than four months arrears were at 0.08%. These remain in line with historical trends on the transactions and represents just one or two loans. Neither of the deals has reported any foreclosures or losses to date. The annualized prepayment rate for both transactions has been low for the last collection period, 6.81% for series 2000-1 and 3.25% for series 2003-1. This has decreased over the last year, resulting in a slowdown in the repayment of the notes but has had no major negative impact on the transactions. The affirmation of series 2000-1 reflects the transaction's stable performance. However, slow growth in credit enhancement, driven by the fact that the reserve fund is still amortizing, limits the potential for positive rating action. The upgrade of the class B notes and the affirmation of the class C notes in series 2003-1 are due to good performance. In Fitch's view, there is sufficient credit support to justify the upgrade of the mezzanine notes. The reserve fund is amortizing, but is expected to hit its floor level of 0.7% (of original note balance) in the next 18 months. Thereafter, it will contribute in building up credit enhancement. Thus, Fitch maintains a Positive Outlook on the Class B and has revised the Outlook on the class C notes to Positive. The Loss Severity Ratings revisions are principally due to note repayments. Furthermore, one Loss Severity Rating has been removed from class D as it is an un-collateralized note. Holland Homes MBS 2000-1 B.V.: -- Class A (ISIN XS0119750031) affirmed at 'AAA'; Outlook Stable; Loss Severity Rating 'LS-1' -- Class B (ISIN XS0119750114) affirmed at 'AA+'; Outlook Stable; Loss Severity Rating 'LS-1' -- Class C (ISIN XS0119750460) affirmed at 'A' ; Outlook Stable; Loss Severity Rating changed to 'LS-1' from 'LS-2' Holland Homes MBS 2003-1 B.V.: -- Class A1 (ISIN XS0182739853) affirmed at 'AAA'; Outlook Stable; Loss Severity Rating 'LS-1' -- Class A2 (ISIN XS0182741164) affirmed at 'AAA'; Outlook Stable; Loss Severity Rating 'LS-1' -- Class B (ISIN XS0182741594) upgraded to 'A+' from 'A'; Outlook Positive; Loss Severity Rating changed to 'LS-1' from 'LS-2' -- Class C (ISIN XS0182741750) affirmed to 'BBB'; Outlook revised to Positive from Stable; Loss Severity Rating 'LS-1' -- Class D (ISIN XS0182740430) affirmed at 'BB'; Outlook Stable. Rating Outlooks for European Structured Finance tranches provide forward-looking information to the market. An Outlook indicates the likely direction of any rating change over a one- to two-year period. Fitch has employed its credit cover multiple methodology in reviewing the deals to assess the level of credit support available to each class of notes. ROBECO CDO: Moody's Junk Rating on Class B 2011 Notes ----------------------------------------------------- Moody's Investors Service has downgraded its ratings of three classes of notes issued by Robeco CDO VIII Ltd. The transaction is a managed synthetic CDO referencing corporate and sovereign names. Payments of interest and ultimately principal are made in accordance with a covenanted priority of payments sequence. Moody's explained that the rating actions taken are the result of (i) the application of revised and updated key modeling parameter assumptions that Moody's uses to rate and monitor ratings of Corporate Synthetic CDOs and (ii) the deterioration in the credit quality of the transaction's reference portfolio. The revisions affect key parameters in Moody's model for rating Corporate Synthetic CDOs: default probability, asset correlation, and other credit indicators such as ratings reviews and outlooks. Moody's announced the changes to these assumptions in a press release published on January 15, 2009. Moody's initially analyzed and continues to monitor this transaction using primarily the methodology and its supplements for corporate synthetic CDOs as described in Moody's Special Reports: -- Moody's Approach to Rating Corporate Collateralized Synthetic Obligations (March 2009) The rating actions are: Robeco CDO VIII Ltd: (1) The Class A Secured Floating Rate Credit-Linked Notes due 2011 -- Current Rating: B3 -- Prior Rating: Aaa -- Prior Rating Date: 21 December 2004, assigned Aaa (2) The Class B Secured Floating Rate Credit-Linked Notes due 2011 -- Current Rating: Ca -- Prior Rating: Aa3 -- Prior Rating Date: 21 December 2004, assigned Aa3 (3) The Combination Notes due 2011 -- Current Rating: B3 -- Prior Rating: Aa3 -- Prior Rating Date: 21 December 2004, assigned Aa3 =========== P O L A N D =========== KREDYT BANK: Fitch Downgrades Individual Rating to 'D' ------------------------------------------------------ Fitch Ratings has downgraded the Poland-based Kredyt Bank's Individual Rating to 'D' from 'C/D' and affirmed all other ratings. At the same time, the agency has withdrawn all the bank's ratings and will no longer provide rating or analytical coverage of KB. The downgrade of the Individual Rating reflects the deteriorating operating environment in Poland, which is likely to result in lower revenues and higher risk costs for Polish banks. In this context, Fitch views the current capitalization of the bank as modest, as it provides only limited buffer in the stress scenario. At end-2008, KB was the ninth-largest Polish bank with 401 outlets and a 3.7% share of sector assets. Originally focused on corporate banking, retail is now the major focus. KB is active in bancassurance with Warta, KBC Group's insurance subsidiary in Poland. KB also owns significant stakes in consumer credit and leasing companies. Rating actions on Kredyt Bank are: -- Long-term Issuer Default Rating: affirmed at 'A', Outlook Negative and withdrawn -- Short-term IDR: affirmed at 'F1'; rating withdrawn -- Individual Rating: downgraded to 'D' from 'C/D'; rating withdrawn -- Support Rating: affirmed at '1'; rating withdrawn =============== P O R T U G A L =============== BANCO PORTUGUES: Moody's Affirms 'E+' Financial Strength Rating --------------------------------------------------------------- Moody's Investors Service has confirmed the Baa3 long-term deposit and debt rating and P-3 short-term rating of Banco Portugues de Negocios SA. Moody's has also affirmed the E+ bank financial strength rating. The outlook on the long-term debt and deposit ratings is developing and the outlook on the BFSR remains negative. The dated and undated subordinated debt issuance programs of the bank's backed Cayman-based subsidiary and of its Madeira branch were downgraded to B3 (dated) and Caa1 (undated), with a developing outlook on both; currently, there is no rated subordinated debt outstanding under these programs. These actions conclude the review with direction uncertain that Moody's initiated on November 4, 2008. BPN has been a nationalized entity since November 12, 2008. The senior management appointed by the government at the time of the nationalization submitted a plan for the bank to the government in January 2009, but the government has not yet revealed its future strategy for the entity. Moody's understands that a decision is likely to be taken before the end of June 2009. In its last rating action on the bank, Moody's noted that BPN's debt and deposit ratings were likely to be affected by the state's plans for the bank and identified three possible scenarios: (i) a consolidation of BPN within the state-owned Caixa Geral de Depositos (rated Aa1/P-1/C), the manager of BPN since November 12, 2008, which could lead to an upgrade of the ratings or a confirmation depending on the bank's strategic fit within CGD; (ii) a temporary nationalization and future sale of the bank, which could lead to a downgrade or upgrade of the deposit and debt ratings, depending on the credit profile of the buyer; and (iii) a liquidation of the bank, which could lead to a downgrade of the debt and deposit ratings. The confirmation of the Baa3/P-3 ratings long- and short-term deposit and debt ratings thus reflects both the lack of new relevant information on this issuer since Moody's last rating action on November 21, 2008, and the rating agency's belief that the nationalization of BPN is a temporary measure to avoid the risk of a systemic crisis in the Portuguese financial system. In confirming the ratings, Moody's notes that, despite BPN's weak intrinsic creditworthiness, reflected in its E+ BFSR, government ownership has stabilized the bank's credit profile and allowed it to continue to operate despite it facing several challenges, such as not complying with minimum regulatory capital ratios. The Baa3 rating incorporates a very high probability of systemic support, given the 100% government ownership. Moody's believes that the government is very unlikely to let BPN fail as the rationale for its intervention was to ensure the stability of the Portuguese financial system. In addition, it is very unlikely that the government will allow the existence of two independent state-owned banks in the long term. Therefore, the rating agency considers that the most probable scenarios are either (i) an integration of the bank into CGD or (ii) the maintenance of temporary state ownership until the end of the financial crisis, after which time the bank will be privatized. In affirming the E+ BFSR and maintaining the negative outlook, Moody's notes that there have been no developments since the last rating action that it believes have significantly improved the bank's intrinsic strength. In the rating agency's opinion, despite state ownership, the bank's franchise value is likely to remain impaired and BPN will face a significant deterioration in profitability, efficiency and asset quality as a consequence of its historical business model and governance weaknesses. The downgrade of the bank's dated and undated subordinated debt to B3/Caa1 (from Ba1) reflects the inherent risk that any such instruments -- were they to be issued under these programs -- might not be covered by government support and therefore experience significant losses in the case of a restructuring of the bank. Moody's states that the developing outlook on the long-term deposit and debt ratings reflects the potential for (i) a weakened credit profile in the event of the government deciding to sell the bank, as the current ratings incorporate a very high probability of systemic support, and (ii) positive developments in the event that the government decides to maintain a long-term interest in BPN. These ratings were confirmed: Banco Portugues de Negocios SA: - Long-term bank deposit rating of Baa3 (developing outlook) - Short-term bank deposit rating of Prime-3 BPN-Cayman, Limited: - Bkd Senior unsecured rating debt of Baa3 (developing outlook) - Bkd Short-term debt rating of Prime-3 Banco Portugues de Negocios, Madeira: - Senior unsecured debt rating of Baa3 (developing outlook) - Short-term debt rating of Prime-3 These ratings were affirmed: Banco Portugues de Negocios SA: - Bank financial strength rating of E+ (negative outlook) These ratings were downgraded: BPN-Cayman, Limited: - Bkd subordinated debt rating to B3 (developing outlook) from Ba1 (review with direction uncertain) - Bkd junior subordinated debt rating to Caa1 (developing outlook) from Ba1 (review with direction uncertain) Banco Portugues de Negocios, Madeira: - Subordinated debt rating to B3 (developing outlook) from Ba1 (review with direction uncertain) - Junior subordinated debt rating to Caa1 (developing outlook) from Ba1 (review with direction uncertain) Moody's previous rating action on BPN was taken on November 21, 2008, when the BFSR was downgraded to E+ from D+ and the Baa3/P-3 debt and deposit ratings were maintained on review with direction uncertain. Based in Lisbon, Banco Portugues de Negocios, S.A. had non-audited consolidated total assets of EUR9.6 billion as at June 30, 2008. =========== R U S S I A =========== AVTOVAZ OAO: Russian Gov't to Provide RUR25 Billion Loan -------------------------------------------------------- The Russian government would provide AvtoVAZ OAO with an interest- free loan worth RUR25 billion (US$734 million) through Russian Technologies, which owns a stake of 25 percent plus one share in the company, The Moscow Times' Maria Antonova reports citing the country's prime minister, Vladimir Putin. The Moscow Times relates AvtoVAZ CEO Boris Alyoshin asked for an RUR8 billion bridge loan so the company could "survive" the next two months while waiting for the state loan to come through. BBC says demand has been badly hit because of the economic crisis and sales of Lada cars has decreased by 40%. Citing Interfax, The Moscow Times discloses Mr. Putin said the bridge loan would be issued by Sberbank and VTB soon, reiterating RUR25 billion needed to reach AvtoVAZ "quickly". Mr. Alyoshin, The Moscow Times recalls, previously asked the government for RUR26 billion to restructure debt to suppliers and creditors. The Moscow Times recounts Mr. Alyoshin said earlier this month that some RUR45 billion of AvtoVAZ's RUR75 billion in assets is being held as collateral, and the company can no longer take out loans with commercial banks. According to RIA Novosti, AvtoVAZ, which employs more than 100,000 workers, currently owes US$1.3 billion in bank loans and bonds. The Moscow Times notes Mr. Alyoshin said Gazprombank, VTB and Sberbank were ready to lend an additional RUR90 billion to finance the company's anti-crisis program, which aims to lower annual production costs by RUR19 billion, although a VTB spokeswoman said the deal is only a "framework" document signed by the three banks. Mr. Putin also said the government would provide RUR13.6 billion in state guarantees on loans to other carmakers, including RUR4.6 billion to KamAZ, RUR5 billion to Sollers to build a plant in the Far East and RUR4 billion to GAZ, The Moscow Times adds. The Times' Christine Buckley states the government fears the car market, which until a few months ago was booming, could shrink by 60 per cent this year. Based in Tolyatti, Russia, AVTOVAZ OAO (AVTOVAZ JSC) -- http://www.lada-auto.ru/-- is engaged in the manufacture of passenger cars. The Company's main brands are LADA PRIORA, LADA Kalina, LADA Samara, LADA 110 and others. The Company is also involved in the manufacture of automobile components, distribution of automobiles and spare parts and operation of automobile service centers. The Company is also active in a variety of other sectors, such as power supply, transportation, utilities, construction, insurance, banking and finance. AVTOVAZ OAO sells its products on the domestic market, as well as exports them to Kazakhstan, Ukraine, Azerbaijan, Armenia, Egypt, Syria, Greece, Belarus, Uruguay, Cyprus, Germany and others. It operates through one representative office located in Moscow, several subsidiaries and affiliated companies. BELVEDER CJSC: Creditors Must File Claims by May 20 --------------------------------------------------- Creditors of CJSC Belveder (TIN 4345032138, PSRN 1034316508247) (Construction) have until May 20, 2009, to submit proofs of claims to: A. Avilov Insolvency Manager Office 313 Suvorova St. 111a 440000 Penza Russia The Arbitration Court of Kirovskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A28�7542/2008�218/10. The Debtor can be reached at: CJSC Belveder Zagorodnaya St. 3 610046 Kirov Russia FOKINO-LES LLC: Creditors Must File Claims by May 20 ---------------------------------------------------- Creditors of LLC Fokino-Les (TIN 1213002710, PSRN 1021201250740) (Forestry) have until May 20, 2009, to submit proofs of claims to: N. Smyshlyayev Insolvency Manager Post User Box 32 Ioshkar-Ola 424000 Mariy El Russia The Arbitration Court of Mariy El commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-38�3845/2008�11-72. The Debtor can be reached at: LLC Fokino-Les Sadovaya St. 6 Sovetskiy Mariy El Russia FORSAYT LLC: Creditors Must File Claims by April 20 --------------------------------------------------- Creditors of LLC Forsayt (TIN 6382041222, PSRN 1026303952223) (Construction) have until April 20, 2009, to submit proofs of claims to: I. Busarova Temporary Insolvency Manager Office 206 Suvorova St. 111a 440000 Penza Russia The Arbitration Court of Samarskaya will convene on May 26, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. A55�965/2009,. The Debtor can be reached at: LLC Forsayt Tupoleva Blvd. 4/97 Tolyatt Samarskaya Russia LESNOY RESURS: Creditors Must File Claims by April 20 ----------------------------------------------------- Creditors of LLC Lesnoy Resurs (TIN 2901155211, PSRN 1062901066700, RVC 290101001) (Forestry) have until April 20, 2009, to submit proofs of claims to: Ye. Lyapunova Temporary Insolvency Manager Office 118 Building 3 Naberezhnaya Severnoy Dviny 112 163000 Arkhangelskaya Russia The Arbitration Court of Arkhangelskaya will convene at 2:20 p.m. on April 20, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. A05�13949/2008. The Debtor can be reached at: LLC Lesnoy Resurs Building 4 Revolutsii St.1 Arkhangelsk Russia NOVOLIPETSK STEEL: Incurs US$480 Mln Net Loss in Fourth Qtr. 2008 ----------------------------------------------------------------- Novolipetsk Steel has incurred a US GAAP net loss of US$480 million for the final quarter of 2008 as a result of plummeting metal prices on world markets, RIA Novosti reports. The company's US GAAP net profit increased 1% year-on-year in 2008 to US$2.28 billion, while its revenue climbed 53% to US$11.7 billion. According to the report, the company's EBITDA (earnings before interest, taxes, depreciation and amortization) rose 36% to US$4.54 billion in the reporting period. The report relates Novolipetsk Steel said in a statement "The deterioration in the steel market, which started in the third quarter of 2008, has continued into the first quarter of 2009. We therefore believe that our Q1 2009 revenue will reach US$1.1 billion and the EBITDA margin is expected to be around 20%. Crude steel production in Q1 2009 will increase by approximately 21% quarter-on-quarter to 2.1 million metric tons." About Novolipetsk Steel Headquartered in Lipetsk, Russia, Novolipetsk Steel OJSC (LSE: NLMK) -- http://www.nlmksteel.com/-- manufactures pig iron, slabs, hot-rolled steel, and a variety of value-added steel products, such as cold-rolled sheet, electrical steel and other specialty flat products. The group also operates in Denmark and Japan. The group entered the Danish steel market in the first quarter of 2006 by acquiring a 100% stake at DanSteel A/S. * * * As reported in the Troubled Company Reporter-Europe on Jan. 21, 2009, Fitch Ratings affirmed Russia-based OJSC Novolipetsk Steel's Long-term Issue Default Rating at 'BB+' and National Long-term rating at 'AA(rus)'. The Outlooks on both ratings are Stable. Fitch also affirmed NLMK's Short-term IDR at 'B'. PETROGRADETS CJSC: Creditors Must File Claims by April 20 --------------------------------------------------------- Creditors of CJSC Petrogradets (TIN 7813188351) (Construction) have until April 20, 2009, to submit proofs of claims to: A. Marinihev Temporary Insolvency Manager Tverskaya St. 14/5H 191015 Saint-Petersburg Russia The Arbitration Court of Saint-Petersburg will on July 27, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. A56�1113/2009,. SALISBURY INT'L: Moody's Cuts Ratings on 2 Classes of Notes to B1 ----------------------------------------------------------------- Moody's Investors Service has downgraded and left under review for possible further downgrade its ratings of eleven classes of notes issued by Salisbury International Investments Limited. This transaction is a static synthetic CDO arranged by Citigroup referencing a pool of emerging market sovereign and corporate names. Upon the occurrence of a credit event, a fixed recovery rate of 40% will be used as the final price. The portfolio references 100 equally weighted entities, and presents concentrated single-sovereign exposures, the largest of which are to Russia (11%), India (9%) and Mexico (9%). Moody's explained that the rating actions announced are linked to (i) the application of revised and updated key modeling parameter assumptions that Moody's uses to rate and monitor ratings of Corporate Synthetic CDOs and (ii) the deterioration in the credit quality of the collateral securing the notes. Moody's decided to leave the ratings under review for further downgrade in order to investigate the potential redenomination risk. Indeed, the largest geographical exposure of the transaction is Russia (11%), the currency of which recently experienced significant devaluation. Should the foreign currency-denominated debts underlying the transaction be redenominated in Ruble at a rate favorable to the issuing corporate, the transaction will directly suffer portfolio losses. The revisions affect key parameters in Moody's model for rating Corporate Synthetic CDOs: default probability, asset correlation, and other credit indicators such as ratings reviews and outlooks. Moody's announced the changes to these assumptions in a press release published on January 15, 2009. Moody's initially analyzed and continues to monitor this transaction using primarily the methodology and its supplements for corporate synthetic CDOs as described in Moody's Special Reports and press releases below: -- Moody's Approach To Rating Corporate Collateralized Synthetic Obligations (March 2009) -- Moody's revises its methodology for Emerging Market CDOs (April 2007) The rating actions are: Salisbury International Investments Limited (Sphaera II): (1) Series 2006-03 US$9,000,000 Floating Rate Portfolio Credit Linked Notes due 2011 -- Current Rating: B1 under review for possible downgrade -- Prior Rating: Baa3, under review for possible downgrade -- Prior Rating Action: 19 March 2009, Baa3 placed under review for possible downgrade (2) Series 2006-04 EUR1,000,000 Floating Rate Portfolio Credit Linked Notes due 2011; -- Current Rating: B1 under review for possible downgrade -- Prior Rating: Baa3, under review for possible downgrade -- Prior Rating Action: 19 March 2009, Baa3 placed under review for possible downgrade (3) Series 2006-05 US$3,000,000 Floating Rate Portfolio Credit Linked Notes due 2011; -- Current Rating: Ba1 under review for possible downgrade -- Prior Rating: A3, under review for possible downgrade -- Prior Rating Action: 19 March 2009, A3 placed under review for possible downgrade (4) Series 2006-06 US$3,000,000 Floating Rate Portfolio Credit Linked Notes due 2011 -- Current Rating: A1 under review for possible downgrade -- Prior Rating: Aa1, under review for possible downgrade -- Prior Rating Action: 27 November 2008, Aa1 placed under review for possible downgrade (5) Series 2006-07 EUR27,500,000 Floating Rate Portfolio Credit Linked Notes due 2011 -- Current Rating: Aa3 under review for possible downgrade -- Prior Rating: Aa1, under review for possible downgrade -- Prior Rating Action: 27 November 2008, Aa1 placed under review for possible downgrade (6) Series 2006-08 Notes EUR40,000,000 Floating Rate Portfolio Credit Linked Notes due 2011 -- Current Rating: Aa3 under review for possible downgrade -- Prior Rating: Aa1, under review for possible downgrade -- Prior Rating Action: 27 November 2008, Aa1 placed under review for possible downgrade (7) Series 2006-09 EUR10,000,000 Floating Rate Portfolio Credit Linked Notes due 2011 -- Current Rating: A1 under review for possible downgrade -- Prior Rating: Aa1, under review for possible downgrade -- Prior Rating Action: 27 November 2008, Aa1 placed under review for possible downgrade (8) Series 2006-11 US$5,000,000 Floating Rate Portfolio Credit Linked Notes due 2011 -- Current Rating: Aa2 under review for possible downgrade -- Prior Rating: Aa1, under review for possible downgrade -- Prior Rating Action: 27 November 2008, Aa1 placed under review for possible downgrade (9) Series 2006-13 EUR2,500,000 Floating Rate Portfolio Credit Linked Notes due 2011 -- Current Rating: Ba1 under review for possible downgrade -- Prior Rating: A3, under review for possible downgrade -- Prior Rating Action: 19 March 2009, A3 placed under review for possible downgrade (10) Series 2006-14 EUR6,250,000 Floating Rate Portfolio Credit Linked Notes due 2011 -- Current Rating: Aa2 under review for possible downgrade -- Prior Rating: Aa1, under review for possible downgrade -- Prior Rating Action: 27 November 2008, Aa1 placed under review for possible downgrade (11) Series 2006-15 EUR10,000,000 Floating Rate Portfolio Credit Linked Notes due 2011 -- Current Rating: Baa3 under review for possible downgrade -- Prior Rating: A1, under review for possible downgrade -- Prior Rating Action: 27 November 2008, A1 placed under review for possible downgrade SALISBURY INT'L: S&P Junks Ratings on Four Classes of Notes ----------------------------------------------------------- Standard & Poor's Ratings Services lowered and removed from CreditWatch negative its credit ratings on various notes issued by Cloverie PLC and Salisbury International Investments Ltd., related to the "Onyx" series of deal. These rating actions follow downgrades and CreditWatch negative placements in the underlying reference portfolios of these transactions. Furthermore, in some of the portfolios backing these notes, up to 10 assets have defaulted. S&P has lowered the ratings because, in its opinion, the risks that noteholders may not receive their full principal have risen to levels that are no longer consistent with the ratings previously assigned. The portfolios are static and reference U.S. home equity line of credit residential mortgage-backed securities of the 2004 and 2005 vintages. In addition, S&P has withdrawn the rating assigned to Cloverie PLC series 2004-73, having recently received confirmation that it terminated in September 2007. Ratings List Ratings Lowered and Removed from Creditwatch Negative Cloverie PLC US$15 Million Class C Secured Floating-Rate Portfolio-Linked Notes Series 2005-46 Ratings ------- To From -- ---- CCC- A/Watch Neg Cloverie PLC US$15 Million Class C Secured Floating-Rate Portfolio-Linked Notes Series 2005-47 Ratings ------- To From -- ---- CCC- A/Watch Neg Cloverie PLC US$15 Million Class C Secured Floating-Rate Portfolio-Linked Notes Series 2005-48 Ratings ------- To From -- ---- CCC- A/Watch Neg Cloverie PLC US$15 Million Class C Secured Floating-Rate Portfolio-Linked Notes Series 2005-49 Ratings ------- To From -- ---- CCC- A/Watch Neg Salisbury International Investments Ltd. US$18.75 Million Class C Secured Floating-Rate Portfolio-Linked Notes (Onyx) Series 2005-10 Ratings ------- To From -- ---- CCC- A/Watch Neg Salisbury International Investments Ltd. US$18.75 Million Class C Secured Floating-Rate Portfolio-Linked Notes (Onyx) Series 2005-11 Ratings ------- To From -- ---- CCC- A/Watch Neg Salisbury International Investments Ltd. US$18.75 Million Class C Secured Floating-Rate Portfolio-Linked Notes (Onyx) Series 2005-12 Ratings ------- To From -- ---- CCC- A/Watch Neg Salisbury International Investments Ltd. US$18.75 Million Class C Secured Floating-Rate Portfolio-Linked Notes (Onyx) Series 2005-13 Ratings ------- To From -- ---- CCC- A/Watch Neg Rating Withdrawn Cloverie PLC EUR30 Million Secured Floating-Rate Portfolio Linked Notes Series 2004-73 Ratings ------- To From -- ---- NR A+/Watch Neg SPUTNIK CDO: Moody's Cuts Ratings on Two Classes of Notes to Low-B ------------------------------------------------------------------ Moody's Investors Service has downgraded and left under review for possible further downgrade its ratings of three classes of Sputnik CDO 1 notes issued by Coriolanus Limited. The transaction is a synthetic CDO referencing a portfolio of 43 corporate entities, banks and supranationals incorporated in Russia, Kazakhstan and Ukraine. VTB Bank (Austria) AG, acting as portfolio manager, has the possibility to add and/or remove reference entities from the portfolio, subject to a number of portfolio constraints. The transaction has a significant exposure to corporate names in the financial sector which continue to deteriorate in the current economic environment. This will weigh on the ratings of the tranches in this transaction. Moody's explained that the rating actions announced are related to (i) the application of revised and updated key modeling parameter assumptions that Moody's uses to rate and monitor ratings of Corporate Synthetic CDOs and (ii) the deterioration in the credit quality of the transaction's reference portfolio. Moody's decided to leave the ratings under review for further downgrade in order to investigate the potential redenomination risk. Indeed, the largest geographical exposure of the transaction is Russia (58%), the currency of which recently experienced significant devaluation. Should the US$-denominated debts underlying the transaction be redenominated in Ruble at a rate favorable to the issuing corporate, the transaction will directly suffer portfolio losses. The revisions affect key parameters in Moody's model for rating Corporate Synthetic CDOs: default probability, asset correlation, and other credit indicators such as ratings reviews and outlooks. Moody's announced the changes to these assumptions in a press release published on January 15, 2009. Moody's initially analyzed and continues to monitor this transaction using primarily the methodology and its supplements for corporate synthetic CDOs as described in Moody's Special Reports and press releases below: -- Moody's Approach to Rating Corporate Collateralized Synthetic Obligations (March 2009) -- Moody's revises its methodology for Emerging Market CDOs (April 2007) The rating actions are: Coriolanus Limited (1) US$36,000,000 Class A Floating Rate Notes due 2012 -- Current Rating: Ba1 under review for possible downgrade -- Prior Rating: A2, under review for possible downgrade -- Prior Rating Action: 19 March 2009, A2 placed under review for possible downgrade (2) US$36,000,000 Class B Floating Rate Notes due 2012 -- Current Rating: Ba3 under review for possible downgrade -- Prior Rating: Baa2, under review for possible downgrade -- Prior Rating Action: 19 March 2009, Baa2 placed under review for possible downgrade (3) US$28,000,000 Class C Floating Rate Notes due 2012 -- Current Rating: B3 under review for possible downgrade -- Prior Rating: Ba2, under review for possible downgrade -- Prior Rating Action: 19 March 2009, Ba2 placed under review for possible downgrade The Super Senior Swap remains under review for possible downgrade: US$120,000,000 Senior Credit Default Swap related to the Sputnik CDO 1 issuance -- Current Rating: A2, under review for possible downgrade -- Prior Rating Action: 19 March 2009, A2 placed under review for possible downgrade STEKLO-PAK LLC: Creditors Must File Claims by April 20 ------------------------------------------------------ Creditors of LLC Steklo-Pak (TIN 3123101607) (Glass Production) have until April 20, 2009, to submit proofs of claims to: N. Yakubenko Insolvency Manager Post User Box 9 Belgorod-36 Russia The Arbitration Court of Belgorodskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A08�3546/2008�14B. The Debtor can be reached at: LLC Steklo-Pak Dzgoyeva St. 4 Belgorod Russia SYKTYVDINSKIY WOOD: Under Bankruptcy Procedure ---------------------------------------------- The Arbitration Court of Komi will convene on Sept. 24, 2009, to hear external management bankruptcy proceedings on LLC Syktyvdinskiy Wood Enterprise. The Case is docketed under No. A29�7260/2008. The External Insolvency Manager is: D. Chirkov Office 22 Oktyabrskiy prospect 69 Syktyvkar 167001 Komi Russia The Debtor can be reached at: LLC Syktyvdinskiy Wood Enterprise Koyty Syktyvdinskiy Komi Russia VERKHNELENSKIY TIMBER: Creditors Must File Claims by April 20 ------------------------------------------------------------- Creditors of LLC Verkhnelenskiy Timber Plant (TIN 3824001872, PSRN 1053827028617) have until April 20, 2009, to submit proofs of claims to: V.Sokolov Temporary Insolvency Manager Post User Box 51 Lyzina St. 28 664009 Irkutsk Russia The Arbitration Court of Irkutskaya will convene on June 25, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. A19�687/09�63. The Debtor can be reached at: LLC Verkhnelenskiy Timber Plant Geologocheskaya St. 3a Zhigalova 666400 Irkutskaya Russia VICHUGSKIY BREAD-BAKING: Creditors Must File Claims by May 20 ------------------------------------------------------------- Creditors of OJSC Vichuginskiy Bread-Baking Factory (TIN 3701001174, PSRN 1023700509502) have until May 20, 2009, to submit proofs of claims to: A. Ryabov Insolvency Manager Office 408 15 proezd St. 4 153006 Ivanovo Russia Tel: (4932) 47�54�41. The Arbitration Court of Ivanovskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A17�4313/2008�1B. The Debtor can be reached at: OJSC Vichuginskiy Bread-Baking Factory Leningradskaya St. 3 Vichuga Ivanovskaya Russia ZHUKOVSKAYA FURNITURE: Bryanskaya Bankruptcy Hearing Set June 16 ---------------------------------------------------------------- The Arbitration Court of Bryanskaya will convene at 10:00 a.m. on June 16, 2009, to hear bankruptcy supervision procedure on OJSC Zhukovskaya Furniture Factory (TIN 3212000939, PSRN 1023201736403). The case is docketed under Case No. A09� 11857/2008. The Temporary Insolvency Manager is: S. Savrasov 2-ya Lezhnevskaya St.6 153008 Ivanova Russia The Debtor can be reached at: OJSC Zhukovskaya Furniture Factory Komsomolskaya St. 1 Zhukovka 242700 Bryanskaya Russia * IRKUTSK OBLAST: S&P Cuts Long-Term Issuer Credit Rating to 'B' ---------------------------------------------------------------- Standard & Poor's Ratings Services said that it had lowered its long-term issuer credit rating on Irkutsk Oblast, located in Eastern Siberia in the Russian Federation (foreign currency BBB/Negative/A-3; local currency BBB+/Negative/A-2; Russia national scale 'ruAAA'), to 'B' from 'B+' 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 Oct. 29, 2008. "The rating is constrained by the oblast's high refinancing risks, limited financial flexibility, economic contraction, and rising contingent liabilities," said Standard & Poor's credit analyst Felix Ejgel. Nevertheless, long-term economic growth potential and the government's ability and willingness to take cost-cutting measures to ensure timely debt repayment support the oblast's credit quality. Irkutsk Oblast faces high refinancing risks after its recourse to short-term bank loans as a substitution for amortizing bonds in the worsening capital markets in 2008. The oblast's debt service is consequently set to rise to 18% of operating revenues in 2009, while market sentiment remains negative and debt refinancing is becoming difficult and requires federal consent. Moreover, the oblast's self-funding capacity is shrinking because of the economic contraction. Falling output, rising unemployment, and ebbing profitability of the oblast's leading taxpayers will likely result in a 50% drop in profit tax and a 5%-10% decrease in the personal income tax base. This shrinkage of profit and personal income taxes will be partly compensated by transferring revenues that had previously been allocated to municipal budgets and consolidating them into the oblast budget. Nevertheless, S&P expects the oblast's operating revenues to reduce by 3%-4% in 2009. Still, the high percentage of inflexible personnel-related and interest spending will drag the operating balance to a projected negative 2% of operating revenues. As of March 23, 2009, Irkutsk Oblast's cash and committed credit lines accounted for Russian ruble 1.4 billion (US$400 million), which covers the oblast's debt service for the next two months. Together with restricted cash (RUR3.4 billion), which can be used to service debt obligations in emergencies, the oblast has enough resources to repay its debts falling due in the next five months. S&P's rating on the oblast factors in S&P's expectations that the oblast will be able to accrue the funds needed to meet its maturing debt obligations on a timely manner. However, the negative outlook reflects S&P's expectation that the Irkutsk Oblast's access to the market will remain limited due to persistent negative market sentiment, while economic contraction will continue to pressure the oblast's budgetary performance. Should the oblast extend the maturity of its debt obligations or improve budgetary performance thanks to higher-than-currently- expected support from the federal government and cost-saving measures, S&P could revise the outlook to stable. "Conversely, the oblast's failure to secure timely debt repayment in advance of maturities falling due because of revenue shortfalls, delayed state support, poor liquidity in the capital market, or larger-than-expected budget deficits financed with short-term borrowings, could weigh negatively on the rating," said Mr. Ejgel. ===================== S W I T Z E R L A N D ===================== ATC ART: Creditors Must File Proofs of Claim by April 3 ------------------------------------------------------- Creditors owed money by JSC ATC Art are requested to file their proofs of claim by April 3, 2009, to: JSC BDS Consulting Vordergasse 3 8200 Schaffhausen Switzerland The company is currently undergoing liquidation in Schaffhausen. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Jan. 20, 2009. CATS CONSULTING: Deadline to File Proofs of Claim Set April 3 ------------------------------------------------------------- Creditors owed money by LLC CATS Consulting are requested to file their proofs of claim by April 3, 2009, to: JSC BDS Consulting Vordergasse 3 8200 Schaffhausen Switzerland The company is currently undergoing liquidation in Beringen. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Jan. 20, 2009. CONSOGEO LLC: Deadline to File Proofs of Claim Set April 6 ---------------------------------------------------------- Creditors owed money by LLC ConSoGeo are requested to file their proofs of claim by April 6, 2009, to: Petra Zimmermann Segesserweg 2 5000 Aarau Switzerland The company is currently undergoing liquidation in Zurich. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Nov. 30, 2007. DMK SCHWEIZ: April 3 Set as Deadline to File Claims --------------------------------------------------- Creditors owed money by LLC DMK Schweiz are requested to file their proofs of claim by April 3, 2009, to: Brigitte Grossi Fichtenwaldstrasse 32 4142 Munchenstein Switzerland The company is currently undergoing liquidation in Munchenstein. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Feb. 16, 2007. SEQUIN-DORMANN JSC: Proof of Claim Filing Deadline is April 2 ------------------------------------------------------------- Creditors owed money by JSC Sequin-Dormann are requested to file their proofs of claim by April 2, 2009, to: JSC Ferax Treuhand Letzigraben 89 8040 Zurich Switzerland The company is currently undergoing liquidation in Zurich. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 16, 2008. SINEDOL LLC: Creditors Have Until April 3 to File Claims -------------------------------------------------------- Creditors owed money by LLC Sinedol are requested to file their proofs of claim by April 3, 2009, to: Bahnhofstrasse 11 8832 Wollerau Switzerland The company is currently undergoing liquidation in Wollerau. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Feb. 10, 2009. TRAVELNETBOOKERS LLC: Creditors' Proofs of Claim Due by April 2 --------------------------------------------------------------- Creditors owed money by LLC Travelnetbookers are requested to file their proofs of claim by April 2, 2009, to: Schluchtbachstrasse 9a 4552 Derendingen Switzerland The company is currently undergoing liquidation in Derendingen SO. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Feb. 10, 2009. UBS AG: Auction Rate Related Suit Junked on Earlier SEC Deal ------------------------------------------------------------ Lynnley Browning at The New York Times reports a federal judge has dismissed a lawsuit brought against UBS AG by individual investors who said it had misled them when it sold them auction rate securities. According to The NY Times, the judge, Lawrence M. McKenna of United States District Court in Manhattan, ruled that the investors were not entitled to continue their litigation because UBS had reached a US$19.4 billion settlement in the matter in August with the Securities and Exchange Commission and regulators in several states. The bank agreed to buy back nearly that amount of securities as well as pay a fine, the report notes. "Given that plaintiffs have availed themselves of the relief provided for in the regulatory agreement, plaintiffs now cannot allege out-of-pocket damages," Judge McKenna was quoted by Bloomberg News as saying. The case is In re UBS Auction Rate Securities Litigation, 08-cv- 2967, U.S. District Court, Southern District of New York (Manhattan). Profit Warning Katharina Bart at Dow Jones reports analysts and investors expect UBS to issue a profit warning and flag job cuts early in April. "We expect a first-quarter 2009 profit warning from UBS as it writes down some of its CHF5 billion monoline exposure and makes a restructuring charge for letting go some 5,000 to 10,000 people," Dow Jones quoted Helvea analyst Peter Thorne as saying. The report states UBS still holds US$5.34 billion in protection from monoline insurers, which the bank originally bought in an effort to insure against some types of losses but which has since soured and could weigh on first-quarter profit. Top U.S. Banker Ousted UBS has placed its top private banker for the Americas, Martin Liechti, on paid leave, The NY Times's Lynnley Browning reports citing Dominique Gerster, a spokesman for UBS. According to the report, Mr. Liechti was briefly detained in Miami in May by federal authorities as the Justice Department widened its inquiry into whether UBS had helped scores of Americans evade taxes by hiding money overseas. After the detention, Mr. Liechti returned to Switzerland, the report says. Swiss Privacy Laws As reported in the Troubled Company Reporter-Europe on Mar. 6, 2009, Reuters said UBS refused to disclose the names of its American clients suspected by U.S. authorities of using secret Swiss bank accounts to dodge U.S. Taxes. According to Reuters, Mark Branson, chief financial officer of UBS Global Wealth Management and Swiss Bank, said at a Senate hearing that the bank regrets breaking U.S. tax laws, but it does not intend to hand over the client names being sought in a U.S. Internal Revenue Service lawsuit. "UBS has now complied ... to the fullest extent possible without subjecting its employees to criminal prosecution in Switzerland," the news agency quoted Mr. Branson as saying. Reuters related Mr. Branson called for a diplomatic resolution, rather than protracted court proceedings, over the IRS efforts to get data from UBS arguing the information sought is protected by Swiss financial privacy laws. As reported in the Troubled Company Reporter-Europe on Feb. 20, 2009, the U.S. government filed a lawsuit in Miami against UBS. The lawsuit asked the court to order the international bank to disclose to the Internal Revenue Service (IRS) the identities of the bank's U.S. customers with secret Swiss accounts. According to the lawsuit, as many as 52,000 U.S. customers hid their UBS accounts from the government in violation of the tax laws. At the Senate hearing, Mr. Branson confirmed there were about 47,000 accounts that UBS had for U.S. Clients, ABC News reported. The government alleged in the lawsuit that of those 52,000 secret accounts, about 20,000 contained securities and about 32,000 contained cash. According to a UBS document filed with the lawsuit, as of the mid-2000s, those secret accounts held about US$14.8 billion in assets. Court documents alleged that U.S. citizens failed to report and pay U.S. income taxes on income earned in those secret accounts. According to the lawsuit, Swiss-based bankers actively marketed UBS's services to wealthy U.S. customers within the United States. UBS documents filed with the lawsuit show that UBS bankers came to the United States to meet with U.S. clients nearly 4,000 times per year, in violation of U.S. law. According to court documents, the government alleged that UBS trained its bankers to avoid detection by U.S. authorities. Court documents further asserted that many U.S. contacts occurred through UBS-sponsored sporting and cultural events, designed to appeal to extremely wealthy Americans. The lawsuit alleged that UBS engaged in cross-border securities transactions in the United States that it knew violated U.S. security laws. The lawsuit also alleged that UBS helped hundreds of U.S. taxpayers set up dummy offshore companies, to make it easier for those taxpayers to avoid their reporting obligations under U.S. tax laws. UBS later entered into a deferred prosecution agreement with the Department of Justice pursuant to which UBS will pay US$180 million in disgorgement, as well as US$400 million in tax-related payments. Also last month, the U.S. Securities and Exchange Commission filed an enforcement action against UBS charging the firm with acting as an unregistered broker-dealer and investment adviser. The SEC's complaint, filed in the U.S. District Court for the District of Columbia, alleges that UBS's conduct facilitated the ability of certain U.S. clients to maintain undisclosed accounts in Switzerland and other foreign countries, which enabled those clients to avoid paying taxes related to the assets in those accounts. UBS agreed to settle the SEC's charges by consenting to the issuance of a final judgment that permanently enjoins UBS and orders it to disgorge US$200 million. About UBS AG Based in Zurich, Switzerland, UBS AG (VTX:UBSN) -- http://www.ubs.com/-- is a global provider of financial services for wealthy clients. UBS's financial businesses are organized on a worldwide basis into three Business Groups and the Corporate Center. Global Wealth Management & Business Banking consists of three segments: Wealth Management International & Switzerland, Wealth Management US and Business Banking Switzerland. The Business Groups Investment Bank and Global Asset Management constitute one segment each. The Industrial Holdings segment holds all industrial operations controlled by the Group. Global Asset Management provides investment products and services to institutional investors and wholesale intermediaries around the globe. The Investment Bank operates globally as a client-driven investment banking and securities firm. The Industrial Holdings segment comprises the non-financial businesses of UBS, including the private equity business, which primarily invests UBS and third-party funds in unlisted companies. UBS AG: Moody's Cuts Rating on CHF50 Million Notes to 'Ca' --------------------------------------------------------- Moody's Investors Service has downgraded its rating of one class of notes issued by UBS AG, Jersey Branch. The transaction is a synthetic CDO referencing a managed pool of corporate and sovereign names. Moody's explained that the rating action taken is the result of (i) the application of revised and updated key modeling parameter assumptions that Moody's uses to rate and monitor ratings of Corporate Synthetic CDOs and (ii) the deterioration in the credit quality of the transaction's reference portfolio. The revisions affect key parameters in Moody's model for rating Corporate Synthetic CDOs: default probability, asset correlation, and other credit indicators such as ratings reviews and outlooks. Moody's announced the changes to these assumptions in a press release published on January 15, 2009. Moody's initially analyzed and continues to monitor this transaction using primarily the methodology and its supplements for corporate synthetic CDOs as described in Moody's Special Reports and press releases below: -- Moody's Approach to Rating Corporate Collateralized Synthetic Obligations (March 2009) The rating action is: UBS AG, Jersey Branch (1) Series 6116 CHF50,000,000 Fixed Rate Notes due 2017 -- Current Rating: Ca -- Prior Rating: Caa3 -- Prior Rating Date: 24 November 2008, downgraded to Caa3 from A2 WILLI SCHMID: Creditors Must File Proofs of Claim by April 3 ------------------------------------------------------------ Creditors owed money by LLC Willi Schmid Consulting are requested to file their proofs of claim by April 3, 2009, to: Willi Schmid Herbrigstrasse 25 5073 Gipf-Oberfrick Switzerland The company is currently undergoing liquidation in Gipf-Oberfrick. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Feb. 9, 2009. =========== T U R K E Y =========== DOGAN YAYIN: Fitch Puts 'B+' Issuer Ratings on Negative Watch ------------------------------------------------------------- Fitch Ratings has placed Turkey-based Dogan Yayin Holding's Long- term local and foreign currency Issuer Default ratings of 'B+' on Rating Watch Negative. The RWN is based on the TRY862 million tax fine on the sale of 25% Dogan TV Holding A.S. shares to Axel Springer and from the "cautionary attachment" that was issued by the tax authorities on DYH's stakes at its subsidiaries. The cautionary attachment relates to DYH's domestic bank accounts, the sale of its stakes in Hurriyet Gazetecilik (66.56%; 'BB-' (BB minus)/RWN), Dogan Gazetecilik (70.76%) and Dogan Burda (44.89%). The share certificates representing a 45.4% stake in Dogan TV Holding have also been linked to the same cautionary attachment by the Tax Office as collateral for the tax fine. Fitch understands that the company's day-to-day operations will not be affected by this, but the agency is concerned that the media sector in Turkey is becoming more politically sensitive. While Fitch notes that, the claims of the tax office may be reversed by the tax court, the TRY862 million fine would place a significant extra burden on internal cash flow and would greatly increase refinancing risk for the group in a worst case scenario. Such an event, were it to occur, would require direct support from Dogan Holding which currently has US$1 billion net cash on its balance sheet. If this support is not forthcoming, then DYH would be downgraded to the 'CCC' category. However Fitch notes that the tax evasion charges by the tax authorities are expected to be settled in court, as is the common practice. This process can take up to one year. Citing a similar tax investigation on Petrol Ofisi ('BB-' (BB minus)/Stable), another Dogan group company, and regulatory fines imposed on the company for allegedly supplying fuel to unlicensed dealers, Fitch notes that the actual cash outflow was only a fraction of the tax penalty and the regulatory fine was overturned by the courts in 2007. The RWN also reflects Fitch's concern that de-leveraging might be difficult to achieve in a significantly lower ad-spend environment in 2009 and, possibly, in 2010 due to the expected contraction in the Turkish economy. Fitch notes that DYH applied to the Capital Markets Board to increase its capital by TRY183 million in November 2008, to be injected by Dogan Holding and Dogan Family, that will be used to reduce leverage. Fitch aims to resolve the RWN in the next six months following a review of the group's annual results as well as further information and clarity on the developments relating to the cautionary attachment. HURRIYET GAZETECILIK: Fitch Puts 'BB-' Ratings on Negative Watch ---------------------------------------------------------------- Fitch Ratings has placed Turkey-based newspaper group Hurriyet's Long-term foreign and local currency Issuer Default ratings of 'BB-' (BB minus) on Rating Watch Negative. The agency has also placed Hurriyet's National Long-term rating of 'AA-(minus)(tur)' on RWN. The rating action follows the placing of parent company, Dogan Yayin Holding on RWN, as per Fitch's methodology for parent and subsidiary ratings. Hurriyet is DYH's main operating subsidiary in publishing and is the key driver of DYH's creditworthiness. The RWN reflects the adverse impact on DYH of the TRY862 million tax fine on the sale of 25% Dogan TV Holding shares to Axel Springer and from the "cautionary attachment" that was issued by the tax authorities on DYH. Fitch notes that the tax fine cannot be extended to the subsidiaries of DYH. Therefore, Hurriyet's assets or bank accounts are not subject to any attachment, charge, or liens. ============= U K R A I N E ============= L-O-K LLC: Court Starts Bankruptcy Supervision Procedure -------------------------------------------------------- The Economic Court of Poltava commenced bankruptcy supervision procedure on LLC L-O-K (EDRPOU 33129070). The Temporary Insolvency Manager is I. Gritsenko. The Court is located at: The Economic Court of Poltava Zigin St. 1 36000 Poltava Ukraine The Debtor can be reached at: LLC L-O-K Kirov St. 18/2 Lubny 37500 Poltava Ukraine MERIDIAN-AGRO LLC: Court Starts Bankruptcy Supervision Procedure ---------------------------------------------------------------- The Economic Court of Nikolayev commenced bankruptcy supervision procedure on LLC Meridian-Agro (EDRPOU 32758164). The Temporary Insolvency Manager is M. Muzhdabayeva. The Court is located at: The Economic Court of Nikolayev Admiralskaya street 22-a 54009 Nikolayev Ukraine The Debtor can be reached at: LLC Meridian-Agro Vakhnenko St. 52 Lisaya Gora Pervomaysky 55250 Nikolayev Ukraine THIN-WALL PIPES: Court Starts Bankruptcy Supervision Procedure -------------------------------------------------------------- The Economic Court of Dnepropetrovsk commenced bankruptcy supervision procedure on LLC Nikopol Plant Of Thin-Wall Pipes (EDRPOU 32930540). The Temporary Insolvency Manager is: J. Tatarinova Rabkorovskaya St. 47 49082 Dnepropetrovsk Ukraine The Court is located at: The Economic Court of Dnepropetrovsk Kujbishev St. 1a 49600 Dnepropetrovsk Ukraine The Debtor can be reached at: LLC Nikopol Plant Of Thin-Wall Pipes Trubnikov St. 56 Nikopol 53211 Dnepropetrovsk Ukraine TSENTROTECH LLC: Court Starts Bankruptcy Supervision Procedure -------------------------------------------------------------- The Economic Court of Poltava commenced bankruptcy supervision procedure on LLC Tsentrotech (EDRPOU 24828896). The Temporary Insolvency Manager is I. Gritsenko. The Court is located at: The Economic Court of Poltava Zigin St. 1 36000 Poltava Ukraine The Debtor can be reached at: LLC Tsentrotech Mir St. 12 Poltava Ukraine * S&P Affirms 'CCC+' Issuer Rating on Ukraine's City of Lviv ------------------------------------------------------------ Standard & Poor's Ratings Services said that it had affirmed its 'CCC+' long-term issuer and 'uaBB' Ukraine national scale ratings on the City of Lviv in Ukraine (foreign currency CCC+/Negative/C; local currency B-/Negative/C; Ukraine national scale 'uaBBB'). The outlook is negative. The ratings on Lviv reflect those on the sovereign. "The ratings on the city also factor in its low financial flexibility and the financial uncertainty arising from its commitment to upgrade infrastructure to host several of the Union of European Football Associations championship matches to be held in Ukraine and Poland in 2012 (EURO 2012), which is resulting in persistent high expenditure needs," said Standard & Poor's credit analyst Boris Kopeykin. "This might result in rapid debt accumulation." The economic slowdown, with weaker revenue collection, and the city's weak liquidity position also constrain the ratings. These negatives are offset by Lviv's importance as one of western Ukraine's commercial centers, with a relatively strong and diversified economy in the national context, and its low debt. Lviv's financial predictability and flexibility are low, owing to weak system support in Ukraine, including the central government's fiscal controls over the city budget, and the city's dependence on volatile state transfers. The estimated cost of the EURO 2012 preparation program is Ukrainian hryvnia 10 billion (about US$2 billion), which will be shared by the city, the central government, and private investors. The program might result in rapid debt accumulation as highlighted by the city's recent decision to issue a UAH300 million bond to finance the stadium construction. Future debt-issuing plans are less clear, but S&P forecast that the city's tax-supported debt might exceed a high 70% of total revenues by year-end 2011, before it starts decreasing. However the city's direct debt as of Jan. 1, 2009, stood at only 6% of operating revenues, and the principal payments are due only in 2012. As of March 17, 2009, the reserves of the city's general fund, which is the only source of interest payments under Ukrainian budget legislation, were only UAH7.6 million, or just slightly less than the overall 2009 interest payment burden. The negative outlook reflects that on Ukraine, as LRGs in Ukraine are highly dependent on the central government's decisions on their revenue and expenditure responsibilities, including high dependence on transfers, and central government decisions on salaries in the public sector. It also incorporates S&P's expectations of large-scale debt accumulation in 2010-2011, and continued expenditure and liquidity pressures. "If the city's liquidity position deteriorates further, either due to weaker revenue collection, or, although S&P don't expect it currently, if the city's new borrowings result in large foreign currency risks or unexpectedly large debt service in the next one to two years, S&P might lower the ratings," said Mr. Kopeykin. "Further negative rating actions on Ukraine could also result in similar actions on Lviv." Positive rating actions on Lviv could follow positive actions on Ukraine, when combined with improvement in the city's operating balance to positive, and a stronger, more predictable liquidity position, all other things being equal. =========================== U N I T E D K I N G D O M =========================== APOLLO DIRECT: Appoints Joint Administrators from KPMG ------------------------------------------------------ Mark Jeremy Orton and Richard James Philpott of KPMG LLP were appointed joint administrators of Apollo Direct Ltd. on March 18, 2009. The company can be reached at: Apollo Direct Ltd. 311 Middlemore Road Oldbury Birmingham B21 0AL England APOLLO SUPERSTORES: Calls in Joint Administrators from KPMG ----------------------------------------------------------- Mark Jeremy Orton and Richard James Philpott of KPMG LLP were appointed joint administrators of Apollo Superstores Ltd. on March 18, 2009. The company can be reached at: Apollo Superstores Ltd. 311 Middlemore Road Oldbury Birmingham B21 0AL England ARROW DISTRIBUTORS: Taps Joint Administrators from KPMG ------------------------------------------------------- Mark Jeremy Orton and Richard James Philpott of KPMG LLP were appointed joint administrators of Arrow Distributors Ltd. on March 18, 2009. The company can be reached at: Arrow Distributors Ltd. Woodbury Lane Norton Worcester Worcestershire WR5 2AU England BACH HOMES: Goes Into Administration; Harrisons Appointed --------------------------------------------------------- Bach Homes Holdings Ltd has gone into administration, leaving plans to redevelop the Grade II listed Locarno and Old Town Hall in Swindon in doubt, BBC News reports. BBC relates insolvency practitioner Harrisons has been appointed to handle the company's administration process. "If the economic climate hadn't have deteriorated the way it has in the last six or nine months, I do believe the scheme would have been underway," BBC quoted Swindon borough councillor Mike Bawden as saying. Bach Homes Holdings Ltd -- http://www.bachhomes.com/-- is a developer based in Swindon. BURLINGTON PRESS: Appoints Administrators from Tenon Recovery ------------------------------------------------------------- Alexander Kinninmonth and Carl Stuart Jackson Tenon Recovery were appointed joint administrators of The Burlington Press Ltd. on March 4, 2009. The company can be reached through Tenon Recovery at: Highfield Court Tollgate Chandlers Ford Eastleigh Hampshire SO53 3TZ England CEVA GROUP: S&P Corrects Press Release; Downgrades Rating to 'B-' ----------------------------------------------------------------- This article, the original version of which was issued on March 23, 2009, has been republished to amend a previously misstated issue rating on CEVA Group's subordinated debt appearing in the third paragraph of the Rationale. A corrected version follows. Standard & Poor's Ratings Services said that it lowered to 'B-' from 'B' its long-term corporate credit rating on CEVA Group PLC, the holding company for The Netherlands-based contract logistics group Ceva Ltd. This follows sharply deteriorating trading prospects. The outlook is stable. At the same time, the senior secured debt rating on CEVA's US$1.5 billion bank facilities on CEVA was lowered to 'B' from 'BB-', one notch above the corporate credit rating. The recovery rating is revised to '2' from '1, indicating S&P's expectation of substantial (70%-90%) recovery in the event of a payment default. In line with S&P's rating criteria, a recovery rating of '2' results in a one-notch differential between the senior secured debt facilities and the corporate credit rating. In addition, the issue ratings on the group's senior secured US$400 million second priority notes and senior unsecured EUR505 million notes were lowered to 'CCC+' from 'B-', while the issue rating on the group's subordinated EUR225 million notes was lowered to 'CCC' from 'CCC+'. The lowering of the issue ratings are as a result of the downgrade of CEVA. The recovery ratings on the aforementioned debt issues are unchanged at '5', '5', and '6', respectively, indicating S&P's expectations for modest (10%-30%) recovery at level '5', and negligible (0-10%) recovery at level '6', in the event of a payment default. "The downgrade reflects our view that the group's weakening operating performance, high leverage, and deteriorating market conditions will place additional pressure on its financial risk profile," said Standard & Poor's credit analyst Leigh Bailey. "We believe that there is substantial downside risk to trading performance this year, which, in our view, could weaken liquidity appreciably over the next 12 months if not adequately offset by other measures. Although S&P expects CEVA to meet its obligations in 2009, the group's liquidity position could be vulnerable next year in the face of a protracted economic downturn." The group's trading performance was hit hard in the final quarter of 2008, primarily as the result of a sharp reduction in auto production rates and reduced transport volumes. As a consequence, group EBITDA fell 42% to EUR58 million and the EBITDA margin decreased to 3.7% from 5.9%. At the same time, liquidity weakened in the quarter to EUR220 million, from EUR302 million at the end of September 2008. CEVA recently provided guidance for performance in the quarter ended March 31, 2009, reflecting further material trading deterioration. CEVA expects EBITDA to be within a EUR27 million- EUR37 million range in the first quarter of 2009, compared with EBITDA of EUR72 million in the same period in 2008. S&P is particularly concerned by the group's exposure to the sharply declining auto sector, at around 32% of revenues in 2008, and the overall reduction in volumes of air freight activity. S&P anticipate that market conditions are unlikely to improve markedly in these segments in 2009. In light of the rate of decline in profits, and the adverse effect on cash flow generation of weaker performance, CEVA has launched a number of cost-reduction programs aimed at delivering more than EUR100 million in savings in 2009. The group also expects cash generation to benefit from a reduced level of "one-off" costs �- around EUR40 million-EUR50 million compared with EUR110 million in 2008 -� as well as a cutback in capital expenditure to about EUR60 million in 2009 from EUR99 million in 2008. CEVA's cost-saving programs and focus on reducing cash outflows this year are material and could mitigate the weakening financial situation to some degree. In S&P's view, CEVA's liquidity buffer provides some scope for the group's leveraged financial profile to weather the weakening trading environment. However, S&P has concerns that a prolonged market downturn could threaten CEVA's liquidity position next year. The group's credit measures are also extremely weak and, in S&P's view, unlikely to improve to levels in line with the 'B' rating category, namely debt to EBITDA of 6x to 7x, over the next 12 months. The ratings will come under further pressure if trading conditions worsen to such an extent that CEVA continues to record sufficient free cash outflows to weaken the available liquidity position. Equally, the ratings could be further pressured if, in S&P's view, the group were to become at risk of failing to comply with its financial covenants. CRANHAM GROUP: Appoints Joint Administrators from KPMG ------------------------------------------------------ Mark Jeremy Orton and Richard James Philpott of KPMG LLP were appointed joint administrators of Cranham Group Plc on March 18, 2009. The company can be reached at: Cranham Group Plc Woodbury Lane Norton Worcester Worcestershire WR5 2AU England DUNFERMLINE BUILDING: Parts of Business Transferred to Nationwide ----------------------------------------------------------------- Upon the application of the Bank of England, the Court of Session on Monday, March 30, appointed Richard Heis, Blair Nimmo, Mike Pink and Richard Fleming of KPMG LLP as joint building society special administrators of Dunfermline Building Society. The administration follows the transfer of a substantial part of the business of Dunfermline Building Society to Nationwide Building Society by the Bank of England under the Special Resolution Regime provisions of the Banking Act 2009. The social housing business been transferred to DBS Bridge Bank Limited set up by the Bank of England. On behalf of the joint administrators, Richard Heis said "We would like to emphasize that all retail deposit accounts have been transferred to the Nationwide and the social housing business to the DBS Bridge Bank, and all their accounts will operate normally. The society's core residential mortgage business and branch network is also included in the transfer. The administrators will work with the Nationwide and DBS Bridge Bank Limited to support an orderly transition of systems and data, and to allow them to maintain business as usual to transferred depositors and customers." The administrators will realize the remaining assets of the society, chiefly various commercial loans, some acquired mortgage assets, and certain treasury assets with the assistance of Nationwide, in order to maximize recovery for creditors, including the Treasury. All staff will be transferring to and working for Nationwide. BBC News discloses the remainder of the business -- risky assets worth more than GBP900 million -- includes GBP648 million of commercial property loans and GBP274 million of buy-to-let and self-cert mortgages from defunct American finance house Lehman Brothers and GMAC. In a March 30 release, the Bank of England said that the decision to transfer parts of Dunfermline's business to Nationwide is designed to protect depositors and safeguard financial stability. It follows a significant deterioration in Dunfermline's financial position. The FSA determined on Saturday, March 28, that Dunfermline was likely to fail to meet the FSA's threshold conditions for authorization and that there was no other option available which would have enabled the company to satisfy the threshold conditions. The bank said the HM Treasury has concluded that if the transfer powers had not been exercised, Dunfermline would be unable to satisfy depositors' claims against it. It concluded that an injection of funds by the taxpayer would not be likely to provide value for money and would not provide a sustainable and lasting solution to the problems faced by the society. The Treasury has made a payment to Nationwide to cover the liabilities that are not covered by the assets that Nationwide is also acquiring. In return, the Treasury has acquired rights in respects of the proceeds of the wind-down and realization of the assets of the administration estate, and is entitled to a claim on the Financial Services Compensation Scheme (FSCS) as outlined in Section 214B of the Financial Services and Markets Act 2000. According to BBC, the Treasury will take on about GBP1.5 billion of commercial property lending and acquired mortgage debt under the deal. BBC recalls Dunfermline was put up for sale after incurring losses of GBP26 million. BBC notes Chancellor Alistair Darling had said Dunfermline would have needed between GBP60 million and GBP100 million to keep it going because of its exposure to risky assets. Dunfermline Building Society �- http://www.dunfermline-bs.co.uk-- offers a range of financial products and services including mortgages, savings accounts, business and personal loans, credit cards, personal insurance, financial planning, investment products, and share brokering. Founded in 1869, the mutually- owned Dunfermline is one of the oldest and largest building societies in Scotland. It operates through more than 30 branches and 40 agencies. The building society has engineered two social housing deals with the Royal Bank of Scotland and Lloyds TSB worth a combined 40 million. GAD LTD: Taps Joint Administrators from KPMG -------------------------------------------- Mark Jeremy Orton and Richard James Philpott of KPMG LLP were appointed joint administrators of GAD Ltd. on March 18, 2009. The company can be reached at: 311 Middlemore Road Birmingham B21 0AL England GREAT HALL: S&P Lowers Ratings on Three Tranches to 'B' ------------------------------------------------------- Standard & Poor's Ratings Services took various rating actions on three series issued by Great Hall Mortgages No. 1 PLC. Specifically, S&P lowered and placed on CreditWatch negative its ratings on four tranches and placed 15 tranches on CreditWatch negative. The 'AAA' ratings on the class A notes issued in each series remain unaffected. The lowering of the rating on the class E notes in each series and the CreditWatch placements follow deteriorating collateral performance and S&P's expectation of increasing losses within each series. In recent quarters, the fall in U.K. house prices and the effect of depressed sale prices on repossessions has led to increased losses and loss severities for all three transactions. The reserve funds for series 2007-1 and series 2007-2 are currently 83.9% and 82.4% of the required amounts, respectively. The reserve fund for series 2006-1 is currently at its required amount. However, in S&P's opinion, further losses will place pressure on the cash flows and could lead to a reserve fund draw in June 2009. Cumulative losses increased to 0.36% in March 2009 from 0.19% in December 2009 in series 2006-1, to 0.66% from 0.36% in series 2007-1 and to 0.47% from 0.17% in series 2007-2. Loss severities are 28.8% in series 2006-1, 29.5% in series 2007-1, and 28.4% in series 2007-2. S&P expects further losses in coming quarters and increasing loss severities for all three series. Ratings List Great Hall Mortgages No. 1 PLC EUR280 Million and GBP275.2 Million Mortgage-Backed Floating-Rate Notes Series 2006-1 Rating Lowered and Placed on CreditWatch Negative Rating ------ Class To From ----- -- ---- Ea B+/Watch Neg BB Ratings Placed on CreditWatch Negative Rating ------ Class To From ----- -- ---- Ca A-/Watch Neg A- Cb A-/Watch Neg A- Da BBB-/Watch Neg BBB- Db BBB-/Watch Neg BBB- GBP413.6 Million and EUR646.9 Million Mortgage-Backed Floating-Rate Notes Series 2007-1 Rating Lowered and Placed on CreditWatch Negative Rating ------ Class To From ----- -- ---- Ea B/Watch Neg BB Ratings Placed on CreditWatch Negative Rating ------ Class To From ----- -- ---- Ba AA/Watch Neg AA Bb AA/Watch Neg AA Ca A-/Watch Neg A- Cb A-/Watch Neg A- Da BBB-/Watch Neg BBB- Db BBB-/Watch Neg BBB- GBP372.5 Million, US$600 Million and EUR110.1 Million Mortgage-Backed Floating-Rate Notes Series 2007-2 Ratings Lowered and Placed On CreditWatch Negative Rating ------ Class To From ----- -- ---- Ea B/Watch Neg BB Eb B/Watch Neg BB Ratings Placed on CreditWatch Negative Rating ------ Class To From ----- -- ---- Ba AA/Watch Neg AA Ca A/Watch Neg A Cb A/Watch Neg A Da BBB/Watch Neg BBB Db BBB/Watch Neg BBB HERITAGE STAIRLIFTS: Appoints Administrators from Grant Thornton ---------------------------------------------------------------- John Neville Whitfield and David John Dunckley of Grant Thornton UK LLP were appointed joint administrators of Heritage Stairlifts Ltd. on March 18, 2009. The company can be reached at: Heritage Stairlifts Ltd. 5 Elm Cottages Upper Dicker East Sussex BN27 3QD England ISLAND HARBOUR: Names Joint Administrators from BDO --------------------------------------------------- Andrew David Beckingham of BDO Stoy Hayward LLP were appointed joint administrators of Island Harbour Holdings Ltd. on March 16, 2009. The company can be reached through BDO Stoy Hayward LLP at: Arcadia House Maritime Walk Ocean Village Southampton Hampshire SO14 3TL England SKIPTON BUILDING: Fitch Affirms Support Rating Floor at 'BB' ------------------------------------------------------------ Fitch Ratings has affirmed Skipton Building Society's Long-term Issuer Default Rating of 'A', removed the Rating Watch Negative placed on November 3, 2008, and assigned a Negative Outlook to the Long-term IDR. At the same time, the agency has also affirmed Skipton's Short-term IDR at 'F1', Individual Rating at 'B/C', Support Rating at '3' and Support Rating Floor at 'BB'. Skipton's senior unsecured notes are rated 'A+' while its subordinated notes and permanent interest-bearing shares are rated 'A-' (A minus). The rating action has no impact on the 'AAA'-rated covered bonds issued by the society. The rating action follows the completion of Skipton's merger with the smaller Scarborough Building Society. The Negative Outlook reflects the potential integration risks of the merger and the risks to profitability within the group amid a worsening economic environment. The ratings also reflect the operational risks inherent in Skipton's business model. The Long-term IDR could be downgraded if asset quality deteriorates more rapidly, absorbing a larger proportion of pre-impairment operating profit than its similarly-rated peers. Fitch recognizes the strategic fit of the two merged entities, which includes economies of scale that can be realized by combining the two North Yorkshire societies and their subsidiaries, especially their mortgage servicing subsidiaries. Based on financial year-end figures (Skipton 31 December 2008, Scarborough April 30, 2008), Skipton's loan book would grow 22.9%, with combined total assets of around GBP16.5 billion. Skipton's Tier 1 capital ratio will remain good but is likely to reduce moderately on the merger completion date. The overall asset quality of both societies is acceptable. Skipton is exposed to small but riskier specialist lending through its Amber Home Loans subsidiary, while Scarborough also has some exposure to similar specialist mortgages, which will result in a combined group exposure to high LTV self-cert and adverse lending of around 15%. Most arrears have occurred in these exposures. Skipton stopped acquiring mortgage books in H107, and has not originated any loans through AHL since summer 2008. Although Fitch expects further deterioration in asset quality, the agency takes some comfort from the society's strong arrears management processing and the group's ability to generate a sufficient pre- impairment operating profit. In 2008, Skipton's pre-tax profit declined to GBP22.5 million (2007: GBP163.9 million) following a weakening of the UK housing market and economic climate. In the past, the majority of Skipton's earnings were contributed by its estate agency and mortgage servicing subsidiaries. The estate agency's more moderate underlying pre-tax profit in 2008 was supplemented by the sale of the remainder of a stake in the property website, Rightmove, which generated a profit of GBP22.3 million. In 2008, pre-tax profit was negatively impacted by a loan impairment charge of GBP34.6 million (2007: GBP5.4 million), largely relating to specialist lending exposure at AHL, as well as a GBP11.5m impairment charge related to the society's Icelandic bank exposure, and the full three year GBP16.3 million Financial Services Compensation Scheme levy. Fitch believes the estate agency subsidiary is likely to make a significantly lower contribution to earnings in the foreseeable future until transaction volumes pick up. Fitch also believes that pressure on margins is likely to be maintained in the low interest rate environment, especially given the necessity to hold larger volumes of shorter-term liquid assets. Skipton continued to grow its retail deposits in 2008 and customer deposits more than matched total loans at end-2008. The funding and liquidity situation in the combined entity is also good. Skipton now has a national network of 90 branches. It is a diversified group with 22 principal subsidiaries including estate agency, mortgage servicing, financial services and data services. VISTEON CORP: UK Affiliate Commences Insolvency Proceedings ----------------------------------------------------------- Visteon Corporation says Visteon UK Limited, a company organized under the laws of England and Wales and an indirect, wholly-owned subsidiary of the Company, filed on March 31, 2009, for administration under the United Kingdom Insolvency Act of 1986 with the High Court of Justice, Chancery division in London, England. The UK Administration does not include the Company or any of the Company�s other subsidiaries. The UK Administration was initiated in response to continuing operating losses of the UK Debtor and mounting labor costs and their related demand on the Company's cash flows. Under the UK Administration, the UK Debtor will likely be run down. The UK Debtor has operations in Enfield, UK, Basildon, UK, and Belfast, UK and recorded sales of US$250 million for the year ended December 31, 2008. The UK Debtor had total assets of US$153 million as of December 31, 2008. About Visteon Corp. Headquartered in Van Buren Township, Michigan, Visteon Corporation (NYSE: VC) -- http://www.visteon.com/-- is an automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic and lighting products for vehicle manufacturers, and also provides a range of products and services to aftermarket customers. The company has corporate offices in Van Buren Township, Mich. (U.S.); Shanghai, China; and Kerpen, Germany. It has facilities in 27 countries and employs roughly 35,500 people. * * * As reported by the Troubled Company Reporter on February 27, 2009, Visteon, for fourth quarter 2008, posted a net loss of US$328 million on sales from continuing operations of US$1.7 billion. For fourth quarter 2007, Visteon reported a net loss of US$43 million on sales of US$2.9 billion. For the full year 2008, Visteon reported a net loss of US$663 million on sales of US$9.5 billion compared with a net loss of US$372 million on sales of US$11.3 billion for full year 2007. As of Dec. 31, 2008, Visteon had US$5.26 billion in total assets, US$1.71 billion in current liabilities, US$2.61 billion in long- term debt. Visteon also had US$627 million in employee benefit obligations, including pension obligations; US$404 million in postretirement benefits other than pensions; US$139 million in deferred income tax obligations; US$365 million in other non- current liabilities; and US$264 million in minority interests in consolidated subsidiaries. Visteon has an US$869 million shareholders' deficit. As reported by the Troubled Company Reporter on March 31, 2009, Moody's Investors Service lowered Visteon's Probability of Default and Corporate Family Ratings to Caa3 and Ca, respectively. In a related action, Moody's also lowered the ratings of Visteon's senior secured term loan to Caa2 from B3, unguaranteed senior unsecured notes to C from Caa3, and guaranteed senior unsecured notes to Ca from Caa2. Visteon's Speculative Grade Liquidity Rating was also lowered to SGL-4 from SGL-3. The outlook remains negative. On March 11, Fitch Ratings downgraded the Issuer Default Rating of Visteon Corporation to 'C' from 'CC', indicating that a default was imminent or inevitable. The ratings were removed from Rating Watch Negative, where they were placed on Dec. 11, 2008. The TCR said on Jan. 14, 2009, that Standard & Poor's Ratings Services lowered its corporate credit rating on Visteon Corp. to 'CCC' from 'B-' and removed all the ratings from CreditWatch, where they had been placed on Nov. 13, 2008, with negative implications. The outlook is negative. At the same time, S&P also lowered its issue-level ratings on the company's debt. VISTEON CORP: Obtains May 30 Waiver Under Credit Facilities ----------------------------------------------------------- Visteon Corporation has reached agreements with its lenders for temporary waivers and amendments to its primary secured credit facilities while continuing to address its capital structure. The company also said it is engaged in discussions with customers to address its liquidity and capital requirements. Specifically, effective March 31, 2009, the Company entered into limited waivers and amendments to these agreements: -- The Amended and Restated Credit Agreement, dated as of April 10, 2007 -- Term Credit Agreement -- among the Company, certain of its subsidiaries, the lenders, Credit Suisse Securities (USA) LLC and Sumitomo Mitsui Banking Corporation, as co-documentation agents, Citicorp USA, Inc., as syndication agent, JPMorgan Chase Bank, N.A., as administrative agent, and J.P. Morgan Securities Inc. and Citigroup Global Markets Inc. as joint lead arrangers and joint bookrunners; -- The Credit Agreement, dated as of August 14, 2006 -- ABL Credit Agreement -- among the Company, certain of its subsidiaries, the lenders, and JPMorgan Chase Bank, N.A., as Administrative Agent; and -- The Master Receivables Purchase & Servicing Agreement, dated as of August 14, 2006 and as amended and restated as of October 29, 2008 -- Securitization Agreement � among Visteon UK Limited, Visteon Deutschland GmbH, Visteon Sistemas Interiores Espana S.L.U., Cadiz Electronica S.A.U., Visteon Portuguesa Limited, VC Receivables Financing Corporation Limited, Visteon Electronics Corporation, Visteon Financial Centre P.L.C., The Law Debenture Trust Corporation P.L.C., Citibank, N.A., Citibank International Plc, Citicorp USA, Inc., and the Company and the related securitization agreements. Pursuant to the Limited Waiver to the Term Credit Agreement, the potential default relating to the inclusion of an explanatory paragraph in the report of the Company's independent registered public accounting firm indicating substantial doubt about the Company's ability to continue as a going concern is waived until May 30, 2009, and the Company is required to complete certain collateral disclosure and perfection matters within certain periods following effectiveness or the Term Waiver may be terminated prior to May 30, 2009 and certain other Events of Default may occur. The Company also entered into a letter agreement, effective as of March 31, 2009, with an ad hoc committee of lenders under its senior secured term loan. The Letter Agreement requires, among other things, that the Company and it subsidiaries to provide access to management, as well as certain analysis and reports to the Ad Hoc Committee. The agreement also requires the Company and its subsidiaries in North America and Europe to maintain a balance of cash and cash equivalents of at least US$335.1 million on a consolidated basis, and requires the Company and its subsidiaries in North America to maintain a balance of cash and cash equivalents of at least US$193.5 million on a consolidated basis. The Letter Agreement provides that the failure to comply with any of its terms will cause termination of the Term Waiver prior to May 30, 2009 and certain other Defaults or Events of Default may occur. Pursuant to the Fourth Amendment and Limited Waiver to the Credit Agreement and Amendment to Security Agreement, the Going-Concern Default is waived until May 30, 2009, and the Company is required to complete certain collateral disclosure and perfection matters within certain periods following effectiveness or the ABL Waiver may be terminated at the discretion of the Administrative Agent. The ABL Waiver also makes several amendments to the ABL Credit Agreement, including: * Increasing the interest rate applicable to borrowing and commitment fees payable thereunder; * Eliminating the availability of swingline loans and overadvances; * Restricting future borrowings or the issuance of any new letters of credit if such borrowing or letter of credit would cause the amount of the Company's cash and cash equivalents in the U.S. to exceed US$100 million, excluding amounts held in certain designated collateral accounts; * Requiring the Company to maintain cash and cash equivalents in a certain designated deposit or securities account in amount that at least equals the amount borrowed plus letters of credit issued under the ABL Credit Agreement; and * Ensuring that only a certain amount of cash and cash equivalents are held in accounts that are not subject to control agreements securing outstanding amounts under the ABL Credit Agreement. Pursuant to the Conditional Waiver to the Securitization Agreement, the Going-Concern Default is waived until June 29, 2009. The Securitization Waiver also makes several amendments to the Securitization Agreement, including: * Decreasing the variable funding facility limit to US$200 million; * Increasing the borrowing rates and commitment fees payable thereunder; * Increasing certain reserves; * Requiring notification to customers by Visteon of the sales of certain receivables and re-direction of customer payments to special purpose segregated accounts; * Increasing the frequency of borrowing base and other reporting and settlement periods; * Giving the agent discretion to access receivables collections; and * Requiring further amendments from May 31, 2009, that would require customers whose receivable have been sold under the program to make payment thereon directly to the lenders. Visteon remains in active discussions with its lenders regarding the restructuring of the company's capital structure. Additionally, Visteon is continuing discussions with its customers including Chrysler, Ford, GM, Honda, Hyundai, Nissan, PSA and Renault, regarding support and cooperation to assist the company in managing through the current environment. However, there can be no assurance that agreements regarding any such restructuring will be obtained. "Visteon remains focused on driving improvement throughout our operations despite the turbulent production environment," said Chairman and CEO Donald J. Stebbins. "We appreciate the involvement and support of our lenders and customers in that effort, along with the ongoing commitment of our global suppliers and employees." About Visteon Corp. Headquartered in Van Buren Township, Michigan, Visteon Corporation (NYSE: VC) -- http://www.visteon.com/-- is an automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic and lighting products for vehicle manufacturers, and also provides a range of products and services to aftermarket customers. The company has corporate offices in Van Buren Township, Mich. (U.S.); Shanghai, China; and Kerpen, Germany. It has facilities in 27 countries and employs roughly 35,500 people. * * * As reported by the Troubled Company Reporter on February 27, 2009, Visteon, for fourth quarter 2008, posted a net loss of US$328 million on sales from continuing operations of US$1.7 billion. For fourth quarter 2007, Visteon reported a net loss of US$43 million on sales of US$2.9 billion. For the full year 2008, Visteon reported a net loss of US$663 million on sales of US$9.5 billion compared with a net loss of US$372 million on sales of US$11.3 billion for full year 2007. As of Dec. 31, 2008, Visteon had US$5.26 billion in total assets, US$1.71 billion in current liabilities, US$2.61 billion in long- term debt. Visteon also had US$627 million in employee benefit obligations, including pension obligations; US$404 million in postretirement benefits other than pensions; US$139 million in deferred income tax obligations; US$365 million in other non- current liabilities; and US$264 million in minority interests in consolidated subsidiaries. Visteon has an US$869 million shareholders' deficit. As reported by the Troubled Company Reporter on March 31, 2009, Moody's Investors Service lowered Visteon�s Probability of Default and Corporate Family Ratings to Caa3 and Ca, respectively. In a related action, Moody's also lowered the ratings of Visteon's senior secured term loan to Caa2 from B3, unguaranteed senior unsecured notes to C from Caa3, and guaranteed senior unsecured notes to Ca from Caa2. Visteon's Speculative Grade Liquidity Rating was also lowered to SGL-4 from SGL-3. The outlook remains negative. On March 11, Fitch Ratings downgraded the Issuer Default Rating of Visteon Corporation to 'C' from 'CC', indicating that a default was imminent or inevitable. The ratings were removed from Rating Watch Negative, where they were placed on Dec. 11, 2008. The TCR said on Jan. 14, 2009, that Standard & Poor's Ratings Services lowered its corporate credit rating on Visteon Corp. to 'CCC' from 'B-' and removed all the ratings from CreditWatch, where they had been placed on Nov. 13, 2008, with negative implications. The outlook is negative. At the same time, S&P also lowered its issue-level ratings on the company's debt. VISTEON CORP: Files Annual Report; PwC Issues Going Concern Doubt ----------------------------------------------------------------- Visteon Corporation delivered on March 31, 2009, to the Securities and Exchange Commission its Annual Report on Form 10-K for the year ended December 31, 2008. Visteon posted a net loss of US$681 million for year 2008 on net sales of US$9.07 billion, compared to US$372 million in 2007 on net sales of US$10.7 billion. As of Dec. 31, 2008, Visteon had US$5.24 billion in total assets; US$4.27 billion in total current liabilities, US$65 million in long-term debt, and US$1.31 billion employee, pension and other postretirement benefit obligations. Visteon had US$887 billion in shareholders' deficit as of December 31. Pursuant to affirmative covenants contained in the agreements associated with the Company's senior secured facilities and European Securitization, Visteon is required to provide audited annual financial statements within a prescribed period of time after the end of each fiscal year without a "going concern" audit report or like qualification or exception. On March 31, 2009, PricewaterhouseCoopers LLP, the Company's independent registered public accounting firm included an explanatory paragraph in its audit report on the Company's 2008 consolidated financial statements indicating substantial doubt about the Company's ability to continue as a going concern. The receipt of such an explanatory statement constitutes a default under the Facilities. Visteon is exploring various strategic and financing alternatives and has retained legal and financial advisors to assist in this regard. The Company has commenced discussions with lenders under the Facilities, including an Ad Hoc Committee of lenders regarding the restructuring of the Company's capital structure. Additionally, the Company has commenced discussions with certain of its major customers to address its liquidity and capital requirements. Visteon says any restructuring may affect the terms of the Facilities, other debt and common stock and may be affected through negotiated modifications to the related agreements or through other forms of restructurings, including under court supervision pursuant to a voluntary bankruptcy filing under Chapter 11 of the U.S. Bankruptcy Code. There can be no assurance that an agreement regarding any such restructuring will be obtained on acceptable terms with the necessary parties or at all. If an acceptable agreement is not obtained, an event of default under the Facilities would occur as of the expiration of the Waivers, excluding any extensions thereof, and the lenders would have the right to accelerate the obligations thereunder. Acceleration of the Company's obligations under the Facilities would constitute an event of default under the senior unsecured notes and would likely result in the acceleration of these obligations as well. In any such event, the Company may be required to seek protection under Chapter 11 of the U.S. Bankruptcy Code. As reported in today's Troubled Company Reporter, the Company entered into amendments and waivers with the lenders under its Facilities, which provide for waivers of the defaults for limited periods of time. A full-text copy of Visteon's 2008 Annual Report is available at no charge at http://ResearchArchives.com/t/s?3aee About Visteon Corp. Headquartered in Van Buren Township, Michigan, Visteon Corporation (NYSE: VC) -- http://www.visteon.com/-- is an automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic and lighting products for vehicle manufacturers, and also provides a range of products and services to aftermarket customers. The company has corporate offices in Van Buren Township, Mich. (U.S.); Shanghai, China; and Kerpen, Germany. It has facilities in 27 countries and employs roughly 35,500 people. * * * As reported by the Troubled Company Reporter on March 31, 2009, Moody's Investors Service lowered Visteon�s Probability of Default and Corporate Family Ratings to Caa3 and Ca, respectively. In a related action, Moody's also lowered the ratings of Visteon's senior secured term loan to Caa2 from B3, unguaranteed senior unsecured notes to C from Caa3, and guaranteed senior unsecured notes to Ca from Caa2. Visteon's Speculative Grade Liquidity Rating was also lowered to SGL-4 from SGL-3. The outlook remains negative. On March 11, Fitch Ratings downgraded the Issuer Default Rating of Visteon Corporation to 'C' from 'CC', indicating that a default was imminent or inevitable. The ratings were removed from Rating Watch Negative, where they were placed on Dec. 11, 2008. The TCR said on Jan. 14, 2009, that Standard & Poor's Ratings Services lowered its corporate credit rating on Visteon Corp. to 'CCC' from 'B-' and removed all the ratings from CreditWatch, where they had been placed on Nov. 13, 2008, with negative implications. The outlook is negative. At the same time, S&P also lowered its issue-level ratings on the company's debt. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than US$3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/booksto order any title today. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Valerie C. Udtuhan, Marites O. Claro, Rousel Elaine C. Tumanda, Pius Xerxes V. Tovilla, Joy A. Agravante, Marie Therese V. Profetana and Peter A. Chapman, Editors. Copyright 2009. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *