/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/090403.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Friday, April 3, 2009, Vol. 10, No. 66 Headlines A U S T R I A AIRTOOL LLC: Claims Registration Period Ends April 20 ART DEKOBAU: Claims Registration Period Ends April 23 ASTL & KOERBER: Claims Registration Period Ends April 23 FINANZ CONSULTING: Claims Registration Period Ends April 30 HOELBFER & KOEHLER: Claims Registration Period Ends April 22 ORGELBAU KALTENBRUNNER: Claims Registration Ends April 30 QUINTANILLA LLC: Claims Registration Period Ends April 30 RAIFFEISEN ZENTRALBANK: Moody's Cuts Fin'l Strength Rating to 'D+' ZAHNLABOR HUEGL: Claims Registration Period Ends April 20 F I N L A N D UPM-KYMMENE CORP: S&P Cuts Long-Term Issuer Credit Rating to 'BB+' G E R M A N Y ASTA SERVICE: Claims Registration Period Ends May 8 CRS GASTRO: Claims Registration Period Ends May 3 DREAMPOOL. TV GMBH: Claims Registration Period Ends May 10 HENCH THERMOPLAST: Claims Registration Period Ends May 14 HSH NORDBANK: Moody's Junks Tier-1 Instruments Rating from 'Baa1' HYPO REAL: S&P Downgrades Ratings on Tier 1 Instruments to 'C' QIMONDA AG: Munich Court Opens Insolvency Proceedings TUI AG: S&P Changes Outlook to Negative; Affirms 'B+' Rating WOB GMBH: Claims Registration Period Ends May 1 G R E E C E EXCEL MARITIME: Obtains Waivers, Secures Equity Infusion H U N G A R Y HUNGARIAN STATE: S&P Cuts Long-Term Issuer Credit Rating to 'BB' I C E L A N D SPRON: MP Banki Inks Deal to Buy Branch Network and Online Unit I R E L A N D CAMBER 4: S&P Junks Ratings on Class A3 and Class B Notes DUNCANNON CRE: Fitch Junks Ratings on Eight Classes of Notes PALMER SQUARE: S&P Junks Ratings on Four Classes of Notes QUALCERAM SHIRES: Goes Into Receivership; Ernst & Young Appointed STARLING FINANCE: S&P Junks Rating on EUR20 Mil. Notes from 'B-' * IRELAND: Corporate Insolvencies Soar to 365 in First Qtr. 2009 I T A L Y BANCA DI CREDITO: S&P Affirms 'BB/B' Counterparty Credit Ratings BANCA ITALEASE: Deferred Coupon Payments Cue Fitch's Junk Rating CHRYSLER LLC: Chrysler-Fiat Combination an "Impossible Goal" K A Z A K H S T A N AINA TV JSC: Creditors Must File Claims by May 8 ALLIANCE BANK: Likelihood of Default Cues Moody's Junk Rating BALAPAN OJSC: Creditors Must File Claims by May 8 INDUSTRIYA SERVICE: Creditors Must File Claims by May 8 INVEST STROY: Creditors Must File Claims by May 8 JAS KURYLYS LLP: Creditors Must File Claims by May 8 PALMIRA-2006 LLP: Creditors Must File Claims by May 8 TRANSIT TAIRA: Creditors Must File Claims by May 8 VOSTOK GEO: Creditors Must File Claims by May 8 K Y R G Y Z S T A N AILEN-K LLC: Creditors Must File Claims by April 10 KEMENGER SERVICE: Creditors Must File Claims by April 10 N E T H E R L A N D S ABN AMRO: S&P Affirms 'BB' Rating on Junior Subordinated Notes GOLDEN TULIP: Declining Occupancy Rates Spur Receivership Request MOTIF CAPITAL: S&P Withdraws 'CCC' Rating on 2006-1 Notes SCEPTRE CAPITAL: S&P Withdraws 'CCC' Rating on 2005-7 Notes R U S S I A AGRO-STROY-MONTAZH LLC: Creditors Must File Claims by May 20 AK BARS: Fitch Downgrades Individual Rating to 'D/E' BAKARITSA-METALL LLC: Creditors Must File Claims by April 20 COMSTAR UNITED: S&P Puts 'BB' Corporate Ratings on Negative Watch DALCOMBANK: Fitch Puts 'B+' LT Issuer Rating on Watch Negative KONSTRUKTSIYA-1 LLC: Bankruptcy Hearing Set July 27 KYRSK FOUNDRY LLC: Kursk Bankruptcy Hearing Set August 19 MEKHANIK CJSC: Creditors Must File Claims by April 20 MOBILE TELESYSTEMS: S&P Puts 'BB' Corp. Rating on Negative Watch MOSCOW BANK: Fitch Puts 'B+' LT Issuer Rating on Negative Watch PROM-STROY-4 LLC: Creditors Must File Claims by May 20 SEVERSKAYA TRANSPORTATION: Creditors Must File Claims by May 20 SISTEMA: Inks Deal to Acquire Controlling Stakes in Bashkir Oil SISTEMA: S&P Puts 'BB' Corporate Rating on Negative Watch SISTEMA-HALS JSC: Fitch Puts 'B' Issuer Ratings on Negative Watch STEKLO-TEKH LLC: Court Names Temporary Insolvency Manager STROY-INVEST LLC: Creditors Must File Claims by April 20 TEKH-MASH-STROY LLC: Creditors Must File Claims by April 20 * Fitch Affirms 'D' Individual Ratings on Seven Russian Banks S P A I N SA NOSTRA: Fitch Assigns Low-B Ratings on Series C and D Notes SANTANDER HIPOTECARIO: Fitch Puts 'C'-Rated Class F Notes on RWN SANTANDER HIPOTECARIO: S&P Cuts Ratings on Class C Notes to 'BB' TDA CAM: Fitch Cuts Ratings on Three Classes of Notes to Low-B S W E D E N FORD MOTOR: Peter Horbury to Return to Volvo as Design VP S W I T Z E R L A N D JORDAN MOTORS: Creditors Must File Proofs of Claim by April 6 HOTEL CAPRICE: Deadline to File Proofs of Claim Set April 9 LA FE: Creditors Have Until April 8 to File Claims MULLER & PANTHER: Proof of Claim Filing Deadline is April 9 QUASO LLC: Creditors' Proofs of Claim Due by April 8 RUBY'S BOUTIQUE: April 8 Set as Deadline to File Claims SAKURA LLC: Creditors Must File Proofs of Claim by April 6 SCHATTIGCENTER LLC: Deadline to File Proofs of Claim Set April 6 STATION CUT: Creditors Have Until April 8 to File Claims TARNUTZER & PARTNER: Proof of Claim Filing Deadline is April 14 T U R K E Y EREGLI DEMIR: Moody's Downgrades Corporate Family Rating to 'B2' U K R A I N E BOBRINETS MOTORCAR: Creditors Must File Claims by April 12 CENTROGROUP INFO: Creditors Must File Claims by April 13 LUGANSK MACHINE-TOOL: Creditors Must File Claims by April 12 MAZURKEVICH AGRICULTURAL: Creditors Must File Claims by April 12 SPECTOR LLC: Creditors Must File Claims by April 13 UKRINFO-STAR LLC: Creditors Must File Claims by April 13 U N I T E D K I N G D O M ANTHRACITE EURO: Fitch Junks Ratings on Three Classes of Notes CARLISLE CASTLE: S&P Assigns 'BB' Rating on Class D Notes CATTLES PLC: Claims Against Subsidiaries May Be Subordinated CATTLES PLC: May Make GBP700 Mln Additional Impairment Provisions COMMERCECOINZ LTD: Creditors Have Until April 9 to Submit Claims CORNERSTONE TITAN: Fitch Junks Rating on GBP10.3 Mln Class G Notes DSL REALISATIONS: Appoints Joint Liquidators from BDO ELITE TILES: Appoints Joint Administrators from Smith & Williamson ENSOR HOLDINGS: Puts Hawkins-Salmon Into Administration ENTERTAINMENT RIGHTS: In Administration; Trading Subsidiaries Sold EUROPEAN INTERTRADE: Creditors Have Until April 9 to Submit Claims LUPUS CAPITAL: Defaults on Debt Facility, In Talks with Lenders MARCONI CORPORATION: Scheme of Arrangement Meetings Set May 19 MARCONI PLC: Scheme of Arrangement Meetings Set May 19 NORTH RIDING: Taps Joint Liquidators from Tenon Recovery ONE MARKET: Creditors Have Until April 9 to Submit Claims PAYMENT INTERTRADE: Creditors Have Until April 9 to Submit Claims S. BAKER BUILDING: Brings in Joint Liquidators from Tenon Recovery SECURETELLER LTD: Creditors Have Until April 9 to Submit Claims TWO RIGHT: In Administration; KPMG Appointed * BOOK REVIEW: How To Measure Managerial Performance ********* ============= A U S T R I A ============= AIRTOOL LLC: Claims Registration Period Ends April 20 ----------------------------------------------------- Creditors owed money by LLC Airtool (FN 104575m) have until April 20, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Reinhard Schwarzkogler Marktplatz 2 4650 Lambach Austria Tel: 07245/21708-0 Fax: 07245/21708-20 E-mail: office@lawmaster.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 3:20 p.m. on April 30, 2009, for the examination of claims at: Land Court of Wels (519) Hall 101 Wels Austria Headquartered in Lambach, Austria, the Debtor declared bankruptcy on Feb. 17, 2009, (Bankr. Case No. 20 S 25/09s). ART DEKOBAU: Claims Registration Period Ends April 23 ----------------------------------------------------- Creditors owed money by LLC Art Dekobau (FN 289627y) have until April 23, 2009, to file written proofs of claim to the court- appointed estate administrator: Mag. Johanna Abel-Winkler Franz-Josefs-Kai 49/19 1010 Vienna Austria Tel: 533 52 72 Fax: DW 15 E-mail: office@abel-abel.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:10 a.m. on May 7, 2009, for the examination of claims at: Trade Court of Vienna (007) Room 1707 Hall IV Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Feb. 24, 2009, (Bankr. Case No. 2 S 24/09f). ASTL & KOERBER: Claims Registration Period Ends April 23 -------------------------------------------------------- Creditors owed money by LLC Astl & Koerber (FN 230668v) have until April 23, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Stefan Langer OElzeltgasse 4 1030 Vienna Austria Tel: 712 63 02, 713 61 92 Fax: DW 22 E-mail: kanzlei@kosesnik-langer.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:50 a.m. on May 7, 2009, for the examination of claims at: Trade Court of Vienna (007) Room 1707 Hall IV Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Feb. 24, 2009, (Bankr. Case No. 2 S 23/09h). FINANZ CONSULTING: Claims Registration Period Ends April 30 ----------------------------------------------------------- Creditors owed money by LLC Finanz Consulting (FN 123610f) have until April 30, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr. Klaus Schiller Gmundnerstrasse 20 4690 Schwanenstadt Austria Tel: 07673/6720 Fax: 07673/6720-20 E-mail: office@kanzlei-schiller.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:00 a.m. on May 7, 2009, for the examination of claims at: Land Court of Wels (519) Hall 101 Wels Austria Headquartered in Schwanenstadt, Austria, the Debtor declared bankruptcy on Feb. 19, 2009, (Bankr. Case No. 20 S 29/09d). HOELBFER & KOEHLER: Claims Registration Period Ends April 22 ------------------------------------------------------------ Creditors owed money by LLC Hoelbfer & Koehler (FN 75489p) have until April 22, 2009, to file written proofs of claim to the court-appointed estate administrator: LLC Scherbaum/Seebacher Rechtsanwalte Einspinnergasse 3/II 8010 Graz Austria Tel: 0316-832460 Fax: 0316-832460-20 E-mail: office@scherbaum-seebacher.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on May 6, 2009, for the examination of claims at: Land Court of Leoben (609) Hall IV First Floor Leoben Austria Headquartered in Muerzzuschlag, Austria, the Debtor declared bankruptcy on Feb. 23, 2009, (Bankr. Case No. 17 S 10/09b). ORGELBAU KALTENBRUNNER: Claims Registration Ends April 30 --------------------------------------------------------- Creditors owed money by LLC Orgelbau Kaltenbrunner (FN 266821i) have until April 30, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr. Gerhard Haslbauer Hauptplatz 7 4663 Laakirchen Austria Tel: 07613/5588 Fax: 07613/5588-15 E-mail: rechtsanwalt@haslbauer.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on May 7, 2009, for the examination of claims at: Land Court of Wels (519) Hall 101 Wels Austria Headquartered in Bad Wimsbach-Neydharting, Austria, the Debtor declared bankruptcy on Feb. 19, 2009, (Bankr. Case No. 20 S 26/09p). QUINTANILLA LLC: Claims Registration Period Ends April 30 --------------------------------------------------------- Creditors owed money by LLC Quintanilla (FN 279000w) have until April 30, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Peter Heigenhauser Wiesinger Strasse 3 4820 Bad Ischl Austria Tel: 06132/25581 Fax: 06132/25581-5 E-mail: dr.peter.heigenhauser@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:40 a.m. on May 7, 2009, for the examination of claims at: Land Court of Wels (519) Hall 101 Wels Austria Headquartered in Bad Ischl, Austria, the Debtor declared bankruptcy on Feb. 19, 2009, (Bankr. Case No. 20 S 28/09g). RAIFFEISEN ZENTRALBANK: Moody's Cuts Fin'l Strength Rating to 'D+' ------------------------------------------------------------------ Moody's Investors Service downgraded the long-term debt and deposit ratings of Raiffeisen Zentralbank Oesterreich to A1 from Aa2 and its bank financial strength rating to D+ (mapping to a Baa3 Baseline Credit Assessmet) from C (A3 as BCA). The Prime-1 short-term rating was affirmed. The outlook on the long-term debt and deposit ratings is stable, while the BFSR carries a negative outlook. The rating changes reflect Moody's expectation that the persistent turmoil in international capital markets is likely to have an increasingly adverse effect on RZB's core markets in Central & Eastern Europe and will exert pressure on asset quality, capital ratios, revenues and earnings. RZB's performance is heavily dependent primarily on the corporate and retail banking franchises that the group has successfully established in the region. At June 30, 2008, about 60% of RZB's risk-weighted assets and 91% of its pre-tax profits came from CEE, with Ukraine and Russia being the most important markets, followed by Romania, Slovakia, Poland, and Serbia amongst others. As a result, Moody's expects losses on RZB's core loan portfolios throughout 2009 and beyond to weaken the bank's risk profile to a level that is below of what is typically required for a BFSR in the C range, and that the respective downside risk for RZB's risk- adjusted profitability and equity ratios is better reflected by the D+ rating. Under the new rating level, and based on the assumption that RZB's capital ratios will temporarily benefit from an additional EUR1.75 billion capital injection from the Republic of Austria, the bank has the capacity to absorb further write- downs of roughly EUR 4 billion on its exposures. "RZB has built well-performing banks in CEE with good long-term perspectives. Nonetheless, the recent economic uncertainty and ongoing instability inherent in many of these markets may slow down revenue and earnings streams and significantly affect further asset quality," says Dominique Nutolo, a Frankfurt-based Moody's Assistant Vice President-Analyst, and lead analyst for RZB. Moody's remains concerned that (i) these economic volatilities and uncertainties may be particularly pronounced among some of RZB's core markets, such as Russia and Ukraine, and that this is combined with a sizeable exposure to the less granular corporate sector, and (ii) given the nature of this exposure, the predictability of expected losses or write-down requirements is more challenging. This higher degree of rating migration is therefore also reflected in the rating and the negative outlook. On a more positive note, Moody's notes favorably that RZB's exposures to those asset classes most affected by the crisis -- i.e. structured credit products -- are relatively small and should not have a disproportionate impact on RZB's earnings, capital or liquidity. The A1 senior debt and deposit ratings incorporate Moody's opinion that the bank is of high systemic importance and is therefore very likely to receive the support of the Republic of Austria in the event of distress; although a major proportion of RZB's operations is located outside Austria and the bank has low retail exposure in its home market. The ratings also reflect the fact that the bank's franchise profile should allow for its return to stronger financial fundamentals and sustainable profitability within a moderate timeframe. In line with the downgrade of RZB's debt rating, Moody's downgraded RZB's preferred stock rating to Baa1 from A1. The rating also reflects a wider notching differential due to the downgraded BFSR. Rating Actions On Subsidiaries Of Rzb Following the rating action on RZB, the ratings of its subsidiaries were affected: -- ZAO Raiffeisenbank (RZB's subsidiary in Russia): local and foreign currency ratings for long-term deposits downgraded to Baa3 from Baa1, following the downgrade of RZB's BFSR to D+ (negative). The short-term deposit rating was downgraded to P-3 from P-2. The bank's senior unsecured debt rating was downgraded to Baa3, and the subordinated debt rating was downgraded to Ba1. The ratings carry a negative outlook, in line with the outlook on RZB's BFSR. -- Raiffeisen Bank Aval (Aval, RZB's subsidiary in Ukraine): long-term local currency deposit rating remains unchanged at Ba1 as it is constrained by the local currency deposit ceiling for Ukrainian banks. The bank's local currency debt rating has been downgraded to Baa3 from Baa2. Aval's foreign currency deposit rating also remains unchanged at B2 (on review for possible downgrade, in line with the sovereign ceiling) as it is constrained by the foreign currency deposit ceiling for Ukrainian banks. Aval's local currency deposit rating carries a stable outlook; the local currency debt rating carries a negative outlook in line with the outlook on RZB's BFSR. -- Raiffeisen Bank S.A. (majority-owned Romanian Subsidiary): long-term and short-term local currency deposit ratings downgraded to Baa2/Prime-2 from A3/Prime-1. Moody's deposit ratings for Raiffeisen Bank S.A. incorporate a 3-notch uplift from its Ba2 BCA based on a very high probability of support from its ultimate parent, RZB (which now has BCA of Baa3, mapped from the new D+ BFSR) and a high probability of systemic support. Moody's has placed a negative outlook on the local currency deposit ratings of Raiffeisen Bank S.A. in line with the negative outlook change on the parent's BSFR. The Baa3/Prime-3 foreign currency deposit ratings with stable outlook remain unaffected as they are constrained by the foreign currency deposit ceiling for Romanian banks. -- Raiffeisenbank (Bulgaria) EAD: long-term and short-term local currency deposit ratings of RZB's majority-owned Bulgarian subsidiary Raiffeisenbank downgraded to Baa3/Prime-3 from Baa1/Prime-2. Raiffeisenbank's deposit ratings incorporate an uplift from its Ba1 baseline credit assessment as a result of a high probability of support from its indirect parent, RZB. Raiffeisenbank's Baa3 long-term local and foreign currency deposit ratings were assigned a negative outlook, in line with the negative outlook for its D+ BFSR. -- Tatra banka (Slovakia): long-term local and foreign currency deposit ratings of Tatra banka downgraded to A2 from A1, with a stable outlook. The C- BFSR and the Prime-1 short-term deposit rating were not affected. Moody's previous rating action on RZB AG was implemented on 17 September 2007, when it assigned an Aa2 issuer rating to the bank. RZB AG is domiciled in Vienna, Austria. At the end of June 2008, it had total consolidated assets of EUR159.2 billion and equity of EUR8.9 million, according to IFRS. The group's Tier 1 ratio was 6.3%, according to BIS standards. RZB reported consolidated pre- tax profits of EUR879 million and net income of EUR393 million in H1 2008. ZAHNLABOR HUEGL: Claims Registration Period Ends April 20 --------------------------------------------------------- Creditors owed money by LLC Zahnlabor Huegl (FN 106009x) have until April 20, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr. Andreas Rabl Ringstrasse 14 4600 Wels Austria Tel: 07242/41824 Fax: 07242/41824-80 E-mail: office@rakanzlei.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 2:40 p.m. on April 30, 2009, for the examination of claims at: Land Court of Wels (519) Hall 101 Wels Austria Headquartered in Marchtrenk, Austria, the Debtor declared bankruptcy on Feb. 13, 2009, (Bankr. Case No. 20 S 23/09x). ============= F I N L A N D ============= UPM-KYMMENE CORP: S&P Cuts Long-Term Issuer Credit Rating to 'BB+' ------------------------------------------------------------------ Standard & Poor's Ratings Services said that it had lowered its long-term issuer credit ratings on Finland-based forest product company UPM-Kymmene Corp. to 'BB+' from 'BBB-' and its short-term issuer credit ratings to 'B' from 'A-3', reflecting weak profitability and cash generation. The ratings were removed from CreditWatch, where they were placed with negative implications on Feb. 24, 2009. The outlook is negative. "The downgrade follows an adjustment to our financial base case scenario reflecting challenging forest product market conditions. As a consequence, S&P considers UPM-Kymmene's financial risk profile and prospective financial performance to be in line with a 'BB+' rating. The downgrade also reflects S&P's view that UPM- Kymmene's business risk is somewhat higher than in the past due to the operating environment in the forest product sector," said Standard & Poor's credit analyst Andreas Zsiga. UPM-Kymmene's operating cash flows have been increasingly weakened by margin pressure, which resulted in weak debt coverage for the previous ratings. The company's operating profit margin (excluding special items) dropped to 5.4% in 2008 from 8.3% in 2007. Adjusted funds from operations fell to 18% in 2008 from about 24% in 2007, reflecting a 25% drop in FFO and somewhat higher debt levels. The key credit drivers in the European forest product industry are currently diverging, but are negative overall. S&P believes that the current sharp decline in the wider economy could reduce demand for graphic paper by up to 10% in 2009, with uncertain prospects for 2010. Together with a negative pricing trend in North America, S&P expects reduced demand and lower input costs to temper the potential for price increases in 2009, despite improved capacity and pricing discipline. S&P further expect the positive effect of lower input costs to be tempered by lower operating rates. Overall, S&P considers short- to medium-term visibility to be poor. While there could be positive surprises, the downside risks are considerable. This particularly applies to the macroeconomic environment. A prolonged weakening with further demand pressure could be accompanied by a renewed depreciation of the U.S. dollar to the detriment of the European paper industry. The negative outlook reflects the risk that UPM-Kymmene's performance will remain weak for the ratings, rather than improving towards the rating requirements, as assumed in S&P's base case. ============= G E R M A N Y ============= ASTA SERVICE: Claims Registration Period Ends May 8 --------------------------------------------------- Creditors of AStA Service 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 10:00 a.m. on June 5, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Goslar House 2 Kaiserbleek 8 38640 Goslar 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 Kehe Braunschweiger Str. 15a D 38723 Seesen Germany Tel: 05381/93 56-0 Fax: 05381/93 56 44 The court opened bankruptcy proceedings against the company on March 30, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: AStA Service GmbH Attn: Erik Moellmann, Manager Burgstatter Str. 6 38678 Clausthal-Zellerfeld Germany CRS GASTRO: Claims Registration Period Ends May 3 ------------------------------------------------- Creditors of CRS Gastro GmbH have until May 3, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on June 3, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Cologne Room 1216 Luxemburger Strasse 101 50939 Cologne Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Andreas Mueller-Stein SchuetzenSt. 5 50126 Bergheim Germany Tel: 02271-7691-0 Fax: +492271769110 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: CRS Gastro GmbH Dormagener St. 17 50129 Bergheim Germany Attn: Carsten Friedel Albert Guenther Reese Obere Dorf St. 2 a 50829 Koeln Germany DREAMPOOL. TV GMBH: Claims Registration Period Ends May 10 ---------------------------------------------------------- Creditors of Dreampool. TV GmbH have until May 10, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on June 4, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Mainz Hall 174 Building B Ernst-Ludwig Strasse 7 55116 Mainz 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 Petereit GF 48, Kaiserstrasse 24a D 55116 Mainz Germany Tel: 06131/626080 Fax: 06131/6260813 The court opened bankruptcy proceedings against the company on March 27, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Dreampool. TV GmbH MuensterSt. 10 55116 Mainz Germany Attn: Ahmet Celikkaya, Manager Bilhildis St. 2 55116 Mainz Germany HENCH THERMOPLAST: Claims Registration Period Ends May 14 --------------------------------------------------------- Creditors of Hench-Thermoplast Kunststofftechnik GmbH have until May 14, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on June 4, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court Erfurt Hall 12 Judicial Center Rudolfstr. 46 99092 Erfurt Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Andreas Schafft Willy-Brandt-Platz 1 99084 Erfurt Germany The court opened bankruptcy proceedings against the company on March 30, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Hench-Thermoplast Kunststofftechnik GmbH Attn: Olaf Braunholz, Manager Hauptstrasse 1 c 99891 Schwarzhausen Germany HSH NORDBANK: Moody's Junks Tier-1 Instruments Rating from 'Baa1' ----------------------------------------------------------------- Moody's Investors Service has downgraded to Caa1 from Baa1 the rating of the non-cumulative Tier-1 hybrid instruments of HSH NORDBANK AG, issued by these entities: -- HSH N Funding I; -- HSH N Funding II; -- RESPARCS Funding I Limited Partnership; and -- RESPARCS Funding II Limited Partnership. The rating action was prompted by HSH's recent announcement that it will not be servicing its silent capital contributions and profit-participation certificates for the financial year 2008 and concludes the review for possible downgrade initiated on 20 February 2009. The outlook on the ratings of the hybrid instruments is now negative. HSH's other ratings -- namely, its A1 senior debt and deposit ratings (negative outlook) and D bank financial strength rating (on review for possible downgrade) -- were not affected by the rating action. Downgrade Reflects Non-Payment Of Coupons And Possible Future Losses Moody's downgrade of HSH's hybrid ratings to Caa1 from Baa1 reflects: 1) The non-payment of coupons in 2009 (for the financial year 2008); 2) Moody's expectation of a high probability of missed coupons in 2010 and 2011 (for the financial years 2009 and 2010, respectively); 3) The moderate risk of a principal write-down in a restructuring scenario. The rating action was triggered by an EU Commission ruling prohibiting HSH from paying coupons on these instruments. The non-cumulative instruments in question would normally be affected by a 'balance-sheet trigger' in the event of insufficient distributable profits. Such triggers are typically considered weak by Moody's as institutions often manage to pay coupons despite recording sizeable losses. However, Moody's is currently observing that the EU Commission is increasingly prohibiting payments on hybrid instruments for banks in need of recapitalization, in particular if these banks disclose substantial net losses; this is therefore placing a major new pressure on such hybrid instruments. HSH announced a preliminary pre-tax loss of EUR2.8 billion for the 2008 financial year and Moody's is also expecting it to report substantial losses for 2009 and 2010. The Caa1 rating also takes into account the moderate risk of a principal loss, based on the possibility that the bank's restructuring might translate into the hybrid instruments possibly taking a loss. The negative rating outlook reflects the uncertainties regarding structural changes at HSH and the low earnings visibility in the currently unpredictable and unstable operating environment. Moody's previous rating action on HSH was on February 20, 2009, when the long-term debt and deposit ratings of HSH were downgraded to A1 from Aa3 and the BFSR to D from D+, and the hybrid ratings were downgraded to A2 and placed on review for possible further downgrade. Headquartered in Hamburg and Kiel, HSH had total assets of around EUR204.4 billion as at June 30, 2008. HYPO REAL: S&P Downgrades Ratings on Tier 1 Instruments to 'C' -------------------------------------------------------------- Standard & Poor's Ratings Services said it placed its 'BBB/A-2' long-term and short-term counterparty credit ratings on the six rated entities of Hypo Real Estate group on CreditWatch with positive implications following the announcement of further stabilization measures by the German government. The entities are Germany-based commercial real estate lender Hypo Real Estate Bank AG, public-finance lenders Depfa Deutsche Pfandbriefbank AG, Ireland-based DEPFA BANK PLC, Depfa ACS, and Hypo Public Finance Bank, and Luxembourg-based Hypo Pfandbriefbank Bank International S.A. At the same time, S&P lowered the ratings on Tier 1 instruments issued by Depfa Funding II LP, Depfa Funding III LP, and Hypo Real Estate International Trust I to 'C' from 'CC', following the announcement of nonpayment on these instruments, at least in 2009. The 'C' rating on the Tier I instrument issued by Depfa Funding IV LP was affirmed. "These rating actions follow the announcement of a EUR5.5 billion net loss for fiscal-year 2008, which S&P understands results in HRE not meeting its regulatory capital requirements," said Standard & Poor's credit analyst Volker von Kruechten. "It also reflects our view that measures by the German Financial Markets Stabilization Fund will allow HRE to maintain its going-concern status." Without tangible government support, it is likely that at least some members of the HRE group would not have been able to continue to operate, in S&P's view. "HRE's elevated net loss in 2008, and management's projection that it will report a loss for at least the next two years highlights the stressed environment in both of HRE's core activities, commercial real estate and public finance lending," said Mr. von Kruechten. "In our view the group may not be able to develop a viable business model after a difficult and long restructuring process." If economic and capital market conditions do not substantially improve over the medium term, S&P still regard an orderly wind-down of the bank as a possible scenario. Absent any other developments requiring investigation, S&P expects to resolve the CreditWatch possibly in the second quarter. In particular, S&P will need details about these to make its assessment: -- The scope and timing of the recapitalization and the additional funding support that HRE is expected to receive; -- The government's short- to medium-term commitment to HRE and its potential exit strategies; -- The impact of the expected support measures on HRE's financial profile; -- HRE's restructuring and strategic repositioning plans to develop a viable business model; and -- The potential rating implications of decisions by the European Commission on the state aid provided to HRE and any conditions attached to the approval of state aid. S&P expects that, absent other relevant factors arising in the interim, when S&P resolve the CreditWatch action, the ratings might be maintained or raised by up to three notches. This will depend entirely on the availability of the relevant information, S&P's analysis of it, and any other developments. QIMONDA AG: Munich Court Opens Insolvency Proceedings ----------------------------------------------------- The local registry court in Munich opened insolvency proceedings for Qimonda AG and Qimonda Dresden GmbH & Co. OHG, on Wednesday, April 1, 2009. The Munich-based lawyer Dr. Michael Jaffe, who has already acted as preliminary insolvency administrator, was appointed as insolvency administrator for both companies. Qimonda said Dr. Jaffe and his team are continuing discussions with potential interested parties. The aim is to preserve the Qimonda sites and as many jobs as possible in Dresden, Munich and Portugal. Consultations with political bodies in Bavaria, Saxony, the Federal Republic of Germany, Portugal and the EU concerning support for a potential continuation of operations are running in parallel. The prerequisite for such support is the engagement of an "anchor" investor in a new Qimonda, the company said. The outcome of these discussions remains open. According to Qimonda, a central condition for the continuation of talks with investors was the successful formation of transfer companies for the employees in Dresden and Munich. About 600 employees in Munich and about 1,850 employees in Dresden accepted the offer made last week to join the transfer company on April 1, 2009. Compared to the total number of employees who had received such an offer, this translates into an acceptance of 84 percent for Munich and 93 percent for Dresden, where a corresponding offer was made. The transfer company guarantees the employees net wages on the basis of compensation for reduced hours, with a supplement of 10 percent over a maximum period of 4 1/2 months until mid� August 2009. Depending on the employee's marital status, this corresponds to about 70 or 77 percent of the net wages that had been paid prior to insolvency. Qimonda said with the opening of the insolvency procedures, a highly qualified core team, consisting initially of about 340 employees in Munich and about 575 employees in Dresden continues to work and is ensuring that the business organization with all related central functions remains in place. Additionally, Qimonda's leading edge Buried Wordline Technology is being maintained and partially further developed. Qimonda said it continued to drive technology advancements during the preliminary insolvency period and invested liquidity for the development of its 46nm Buried Wordline Technology in agreement with the creditors committee. Qimonda disclosed since filing for insolvency on January 23, 2009, it was possible to continue operations at Munich, Dresden and at a large number of subsidiaries worldwide despite the difficult parameters and the highly complex structure of the international corporate group. According to Qimonda, liquidity of both entities in Germany could be ensured and operations could be continued, albeit at a reduced level, during the preliminary insolvency proceedings through strict cost management and the abandonment of loss-making activities. As a result, Qimonda was able to record revenues of more than EUR90 million during the period of the preliminary insolvency despite the extremely weak market environment. Mass production of memory chips at Dresden is on hold starting April 1, 2009. The equipment will be put into a stand-by mode. Experts will maintain the sophisticated machinery in order to protect it from damage during the stand-by period. If an investor solution materializes, production could be resumed. Qimonda said no final decisions have been reached as yet with regard to the future structure of the company. This also applies to a decision over whether parts of the business which are able to continue operations will be transferred to a new company belonging to new investors. In this case, or if no investors can be found to finance Qimonda's continued operation, Qimonda AG, which has been legally dissolved with the opening of insolvency proceedings, would most likely be liquidated. In case of a liquidation of Qimonda AG, it is expected, based on the current state of affairs, that the shareholders of Qimonda AG will not receive any payments on their shares after the finalization of the insolvency proceedings and the distribution of any remaining insolvency assets to the creditors. No statement can be made at this time regarding any such distribution to creditors. According to tradingmarkets.com, ADP News, citing local Saechsische Zeitung, reported on April 1, 2009, that Russian semiconductor manufacturers Angstrem, Sitronics and AFK Sistema are not interested to acquire Qimonda. However, Qimonda, tradingmarkets.com notes, is in talks with potential investors, mainly with interested parties from China and Taiwan. Qimonda AG (NYSE: QI) -- http://www.qimonda.com/-- is a leading global memory supplier with a diversified DRAM product portfolio. The company generated net sales of EUR1.79 billion in financial year 2008 and had -- prior to its announcement of a repositioning of its business -- approximately 12,200 employees worldwide, of which 1,400 were in Munich, 3,200 in Dresden and 2,800 in Richmond (Virginia, USA). The company provides DRAM products with a focus on infrastructure and graphics applications, using its power saving technologies and designs. Qimonda is an active innovator and brings high performance, low power consumption and small chip sizes to the market based on its breakthrough Buried Wordline technology. TUI AG: S&P Changes Outlook to Negative; Affirms 'B+' Rating ------------------------------------------------------------ Standard & Poor's Ratings Services said that it revised its outlook on German conglomerate TUI AG to negative from stable. At the same time, the 'B+' long-term corporate credit rating on TUI was affirmed. "The outlook revision reflects lower-than-expected cash proceeds from the recent completion of the sale of a majority stake in the group's shipping business, Hapag-Lloyd, net of new financing lines made available to HL, as well as rising macroeconomic pressures," said Standard & Poor's credit analyst Philip Temme. In addition, the rating is constrained by structural weaknesses and reporting complexities arising from TUI's position as a holding company with minority equity stakes in its two principal operating businesses. TUI comprises 40.3% of London-listed TUI Travel PLC (or 51.4% of voting rights in the fully consolidated TTP), 43.3% of the vehicle that now controls HL (reported as a discontinued operation in 2008), and a variety of hotel, resort, and cruise investments. The HL transaction, which closed on March 23, 2009, involved the sale of 56.66% of HL for net cash proceeds of EUR1.6 billion. The deal permitted TUI to deconsolidate EUR1.3 billion of HL debt and leased assets with a capitalized net present value of about EUR1.8 billion. Net cash proceeds from the transaction, after about EUR700 million of new financing from TUI to HL, amounted to approximately EUR900 million and S&P currently expect them to be substantially used to reduce debt. "Given the rapidly deteriorating prospects for container shipping caused by the sharp decline in world trade, S&P views the partial sale of HL as broadly credit-positive. However, the cash proceeds from the sale were lower than S&P had originally anticipated, therefore reducing TUI's strategic flexibility to make additional investments in tourism," said Mr. Temme. TUI's increased credit exposure to HL illustrates that it has only partially managed to extricate itself from shipping-related risks. The group has granted total credit lines to HL of EUR1.15 billion (already substantially drawn), on top of its existing loans to TTP, which are currently about EUR1.02 billion drawn. Most of the new financing provided to HL is unsecured (with the exception of a EUR200 million tranche guaranteed by the City of Hamburg and others) and is due between March 2010 and December 2012. The new credit lines to HL create substantial additional refinancing risk in the event that replacement external financing is unavailable, a risk accentuated by TUI's own substantial bond maturities over the next couple of years. The ratings on TUI reflect the group's complex structure, highly leveraged financial risk profile (with lease-adjusted net debt to EBITDA before HL cash proceeds in excess of 6x on Dec. 31, 2008), and cash flow leakage to minorities. TUI is also exposed to the seasonal and cyclical tourism industry where margins are modest and event risks are high. These risks are mitigated in part by TUI's market-leading positions as well as its geographically well- diversified sales. "The negative outlook reflects our view that TUI is now less likely to achieve credit metrics consistent with a 'B+' long-term CCR (defined as lease-adjusted debt to EBITDA of less than 5x) by the end of financial 2009. S&P expects increasing recessionary challenges, particularly for shipping, to reduce consolidated earnings, offsetting to some degree the deleveraging which will follow from the partial sale of HL," said Mr. Temme. WOB GMBH: Claims Registration Period Ends May 1 ----------------------------------------------- Creditors of WOB GmbH World of Bearings have until May 1, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on June 4, 2009, at which time the insolvency manager will present her first report. The meeting of creditors will be held at: The District Court of Nuernberg Meeting Hall 152/I Flaschenhofstr. 35 Nuernberg Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Ute Nayel Augustinerstr. 11 90403 Nuernberg 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: WOB GmbH World of Bearings Attn: Hans-Juergen Sitz Torwartstr. 12 90480 Nuernberg Germany =========== G R E E C E =========== EXCEL MARITIME: Obtains Waivers, Secures Equity Infusion -------------------------------------------------------- Excel Maritime Carriers Ltd on Wednesday, April 1, said it has entered into agreements to amend its credit facilities, agreed to an equity infusion by the Company's major shareholders and set the dates for the release of the fourth quarter and full year 2008 earnings results, conference call and webcast. Credit Facilities Amendments The Company said that, as part of the amendments to its two credit facilities, it has secured all the appropriate covenant waivers in the Nordea Bank Syndicated Facility and the Credit Suisse Bilateral Facility, valid until the beginning of 2011. Additionally, under the terms of the amended Nordea Bank Syndicated Facility, the Company will also defer principal debt repayments of US$150.5 million originally scheduled for 2009 and 2010 to the balloon payment at the end of the facility's term in 2016. During the waiver and deferral periods, the applicable credit facility margins will increase to 2.5% and 2.25%, for the Syndicated Facility and the Credit Suisse Facility, respectively. The Nordea Syndicated Facility and the Credit Suisse Bilateral Facility are the only two credit facilities that the Company has currently outstanding. More details on the terms of the credit facilities amendments will be provided during the Company's fourth quarter and year end 2008 earnings release and conference call. Equity Infusion As part of the loan restructuring, the Company also announced an equity infusion of US$45 million by entities affiliated with the Panayotides family, the Company's major shareholders. An aggregate of 25,714,285 Class A shares and 5,500,000 warrants, with an exercise price of US$3.50 per warrant, are to be issued in total. The shares, the warrants and the shares issuable on exercise of the warrants will be subject to 12�month lock-ups from March 31, 2009. In this connection, the Company has the option to defer, again to the balloon payment in 2016, additional principal debt repayments in an amount of up to 100% of the equity contributed by the major shareholders during 2009 and 2010. The Chairman of the Board, Gabriel Panayotides, commented, "We are pleased to announce the successful restructuring of our loan facilities and would like to thank all 15 banks for their support and confidence in our Company. We feel very positive about our Company's prospects and we believe that the reduced commitments, the length of the covenant waiver period obtained along with our modern fleet and our quality time charter coverage will enable us to successfully navigate in a potentially challenging market environment over the next two years." "In addition, the contribution via an equity injection from the main shareholders represents a clear sign of strong support and commitment to the Company, especially since it is made at a time of great uncertainty. I, along with the rest of the members of the Board of Directors and the senior management team, remain dedicated in maintaining and improving the Company�s leading position within the dry bulk industry as well as delivering long term shareholder value." Headquartered in Athens, Greece, Excel Maritime Carriers Ltd. (NYSE: EXM) -- http://www.excelmaritime.com/-- is a shipping company specializing in the world-wide seaborne transportation of dry bulk cargoes. The Company is a provider of worldwide sea borne transportation services for dry bulk cargo, including among others, iron ore, coal and grain, collectively referred to as major bulks, and steel products, fertilizers, cement, bauxite, sugar and scrap metal, collectively referred to as minor bulks. Excel's fleet is managed by one of its wholly owned subsidiaries, Maryville Maritime Inc. (Maryville). As of May 15, 2008, it owned a fleet of 40 vessels and, together with seven Panamax vessels under bareboat charters, operate 47 vessels (four Capesize, 14 Kamsarmax, 21 Panamax, two Supramax and six Handymax), with a total carrying capacity of approximately 3.7 million deadweight (dwt). On April 15, 2008, the Company completed its acquisition of Quintana Maritime Limited (Quintana). ============= H U N G A R Y ============= HUNGARIAN STATE: S&P Cuts Long-Term Issuer Credit Rating to 'BB' ---------------------------------------------------------------- Standard & Poor's Ratings Services said it lowered its long-term issuer credit rating on Hungarian State Railways Co. Ltd., the 100% state-owned vertically integrated rail infrastructure operator in Hungary, to 'BB' from 'BB+' following the downgrade of the ratings on the Republic of Hungary to 'BBB-/A-3' from 'BBB/A- 3'. At the same time, the 'B' short-term rating on MAV was affirmed. The outlook is negative. The downgrade on the sovereign reflects the ongoing deterioration in key Hungarian economic and fiscal indicators. Pressure on public finances continues to mount as revenues fall short, the government debt ratio mounts, and the risk of financial sector contingent liabilities materializing increases. The International Monetary Fund EU program provides significant, yet finite support for government funding. "Standard & Poor's applies a top-down rating approach to MAV, notching down from the rating on the sovereign because MAV is a government-related entity and plays a central role in meeting political and economic objectives," said Standard & Poor's credit analyst Timon Binder. "The long-term rating is two notches lower than those on the Hungary, reflecting the absence of direct state guarantees for MAV's total debt and that timely financial support is not explicitly guaranteed." In S&P's opinion, the government has a demonstrated track-record of support to the company through recurring budget allocations, capital injections, and state guarantees for almost 74% of the company's outstanding debt. However, S&P understands that the public service contract between MAV and the Ministry of Transport has not yet been signed, and the contract for operation of the railway network is also still pending. Therefore, S&P understands that the fixed cost subsidy for track and passenger transport activities is currently regulated by the state in provisions included in the annual budget acts. In S&P's opinion, this exposes MAV to uncertainty regarding the metrics and exact volume of future recurring budget allocations. However, given the company's key policy role, S&P expects the government's willingness to extend extraordinary financial support to MAV to remain strong and intact, even in the current stressed economic environment. "The negative outlook reflects that of the sovereign," said Mr. Binder. "Further deterioration in Hungary's economic and fiscal outlook, signs of liquidity or solvency problems in the financial sector, or a period of prolonged political paralysis could lead to a further downgrade of the sovereign ratings and therefore those on MAV." S&P expects the ratings on MAV to continue to move in line with that on the sovereign. Furthermore, a downgrade could occur if in S&P's view the ability and willingness of the state to support MAV weakened materially. ============= I C E L A N D ============= SPRON: MP Banki Inks Deal to Buy Branch Network and Online Unit --------------------------------------------------------------- Iceland Review reports that MP Banki on Monday, March 30, reached an agreement with the resolution committee of SPRON savings bank on the acquisition of its branch network and its online unit Netbankinn. According to the report, the agreement is worth almost ISK 800 million (US$6.5 million, EUR5.0 million), which includes a payment to the SPRON resolution committee and overtaking commitments such as rehiring at least 45 of the bank's employees. The acquisition, the report notes, is subject to approval from the FME and the Competition Authority. The report recalls the Financial Supervisory Authority took over the operations of SPRON on March 21. On March 24, 2009, the Troubled Company Reporter-Europe, citing Reuters, said the FME decided to take over SPRON as discussions with creditors had been unsuccessful and the bank's liquidity position had continued to deteriorate. Reuters disclosed SPRON had total assets of ISK267 billion (about US$880 million) at the end of September 2008, including ISK212 billion of loans listed as assets. SPRON -- http://www.spron.is/-- is a universal bank offering an extensive range of commercial and investment banking services to retail and corporate customers as well as institutional investors in the Greater Reykjavik area. SPRON's subsidiaries are Frjalsi Investment Bank, the online bank Netbankinn, SPRON Factoring and SPRON Asset Management. SPRON operates branches throughout the Reykjavik area. ============= I R E L A N D ============= CAMBER 4: S&P Junks Ratings on Class A3 and Class B Notes --------------------------------------------------------- Standard & Poor's Ratings Services lowered and removed from CreditWatch negative its credit ratings on the class A1-A, A1-B, A2, A3, and B notes issued by CAMBER 4 PLC, a European collateralized debt obligation of asset-backed securities transaction. At the same time, S&P affirmed and removed from CreditWatch negative S&P's rating on the class C notes. Currently the class A3, B, and C par value ratio tests are failing, as reported in the last trustee report available to us. The rating actions reflect S&P's assessment of further deterioration in the credit quality of the underlying portfolios due to their exposure to U.S. CDOs of ABS and residential mortgage-backed securities, and S&P's application of updated recovery rate calculations. The negative credit migration has led to an increase in the scenario default rates that may not be supported by current credit enhancement. The updated recovery rate calculations have decreased applicable break-even default rates. S&P will closely monitor the transaction's performance and will resolve the outstanding CreditWatch placements in due course. Ratings List CAMBER 4 PLC US$1.004 Billion Asset-Backed Floating-Rate Notes Ratings Lowered and Removed from CreditWatch Negative Rating ------ Class To From ----- -- ---- A1-A BBB- AA-/Watch Neg A1-B BBB- AA-/Watch Neg A2 B- BBB-/Watch Neg A3 CCC- BB/Watch Neg B CCC- BB-/Watch Neg Rating Affirmed and Removed from CreditWatch Negative Rating ------ Class To From ----- -- ---- C CCC- CCC-/Watch Neg DUNCANNON CRE: Fitch Junks Ratings on Eight Classes of Notes ------------------------------------------------------------ Fitch Ratings has downgraded EUR727.5 million from 11 classes of Duncannon CRE CDO I plc's notes, removed the notes from Rating Watch Negative, and assigned outlooks and recovery ratings. Rating actions: -- EUR7.5 million Class X senior notes due 2013: Downgraded to 'B' from 'AAA'; off RWN; Negative Outlook -- EUR420 million Class A senior floating-rate notes: Downgraded to 'B-' (B minus) from 'AAA'; off RWN; Negative Outlook -- EUR100 million revolving credit facility ("RCF"): Downgraded to 'B-' (B minus) from 'AAA'; off RWN; Negative Outlook -- EUR40 million Class B senior floating-rate notes: Downgraded to 'CCC' from 'AA'; off RWN; Assigned RR5 -- EUR40 million Class C-1 deferrable floating-rate notes: Downgraded to 'CC' from 'A'; off RWN; Assigned RR6 -- EUR20 million Class C-2 deferrable floating-rate notes: Downgraded to 'CC' from 'A'; off RWN; Assigned RR6 -- EUR20 million Class D-1 deferrable floating-rate notes: Downgraded to 'C' from 'BBB+'; off RWN; Assigned RR6 -- EUR20 million Class D-2 deferrable floating-rate notes: Downgraded to 'C' from 'BBB'; off RWN; Assigned RR6 -- EUR20 million Class D-3 deferrable floating-rate notes: Downgraded to 'C' from 'BBB-' (BBB minus); off RWN; Assigned RR6 -- EUR20 million Class E-1 deferrable floating-rate notes: Downgraded to 'C' from 'BB+'; off RWN; Assigned RR6 -- EUR20 million Class E-2 deferrable floating-rate notes: Downgraded to 'C' from 'BB-' (BB minus); off RWN; Assigned RR6. The transaction is a managed cash flow European commercial real estate collateralized debt obligation issued by Duncannon CRE CDO plc, a company with limited liability incorporated under the laws of Ireland. The EUR727.5 million notes are currently backed by EUR654 million performing assets and EUR49 million cash. The downgrades reflect Fitch's view on the credit risk of the rated tranches following the significant portfolio credit deterioration driven by the downgrades of the underlying B-notes and C-notes. Since closing, there have been six obligations downgraded to 'CC' (EUR104 million or 13% of the portfolio). The performing portfolio weighted average rating was lowered to 'B+' from 'BB- (BB minus)' when the transaction was placed on Rating Watch Negative in January 2009. In addition, 23% of the portfolio is rated in the 'CCC' category and another 26% in the 'B' category. The portfolio consists of 42% commercial mortgage-backed securities and 50% subordinated B-notes and C-notes. In terms of vintage concentration, 81% of the portfolio is from the 2006 and 2007 vintages. The largest geographical concentration is the United Kingdom which makes up 36% of the portfolio. In addition, 15% of the portfolio that has a weighted average life of two years or less is likely to encounter the most refinancing risk, given that most of the underlying real estate loans have bullet payment and therefore rely on refinancing at maturity. As of the last trustee report, all overcollateralisation tests were passing the minimum required thresholds; however, Fitch expects this to change because the recent downgrades of European CRE B-notes & C-notes have resulted in a much higher percentage of 'CCC' and 'CC' assets. Fitch estimates that all the OC ratios will fall substantially given that the transaction documents require OC adjustments for 'CCC' or below assets which require the use of lower of market value or base recovery rate for the par value calculation. As a result of the OC adjustments, Fitch expects the Class B Par Coverage Test (the first coverage test in the waterfall) to fall below the trigger level of 117.5% from 135% in January 2009. Upon the breach of the Class B Par Coverage Test, all the excess interests after paying Class B interest will be used to redeem Class A/RCF on a pro-rata basis first and subsequently Class B once the Class A/RCF is fully redeemed. As a result the expected Class B Par Coverage Test, Fitch expects interest payments to the Class C1 notes and below to cease. Class C1 to E2 are also highly vulnerable to defaults with negligible recoveries, considering the significant portion of 'CCC' or below B-notes & C-notes in the portfolio. The executed documents have stipulated that an inadequate par value coverage of the Class A and RCF of less than 100% can result in an event of default. A continuing event of default may result into an acceleration and liquidation although the Class A/RCF as the controlling class can decide on whether to accelerate the transaction or liquidate the transaction. A continuing event of default will require the interest proceeds and principal proceeds to flow through the pre-enforcement waterfall except without the senior fee cap and excluding certain administrative expenses. The class B notes would continue to receive available interest in the pre-enforcement waterfall. Fitch estimates that the Class A/RCF par value coverage ratio is likely to fall significantly though still remain above the EoD trigger of 100%. Further default and negative migration of assets towards 'CCC' can result in a lower Class A/RCF par value coverage ratio. While Class X's quarterly scheduled principal payment and interest payment ranks pari-passu with Class A/RCF in the waterfall prior to the liquidation, the ranking of Class X's outstanding principal upon the liquidation of the transaction is unclear in the documentation. While the agency notes that the Class X's principal is amortizing and therefore have a shorter maturity to September 2013, the unclear status of Class X's outstanding principal upon liquidation has resulted in the low sub-investment grade rating. The portfolio was 65% ramped-up at close in July 2007 and has been fully ramped up since end April 2008. There has been no re- investment since then. As a result, the US$49mio cash from asset amortization remains in the principal collection account that is highly likely to be used to redeem Class A and RCF on a pro-rata basis given that the Class B Par Coverage Test is expected to fall to below the trigger level. The performing portfolio currently contains 74 performing assets from 66 obligors with the largest obligor representing 4% of the performing portfolio. In conducting its analysis, Fitch made a three-notch downward adjustment for any names on RWN under the default analysis of its Portfolio Credit Model. In addition to this, Fitch also conducts a deterministic stress on certain B-notes given the agency's negative view on this asset class. PALMER SQUARE: S&P Junks Ratings on Four Classes of Notes --------------------------------------------------------- Standard & Poor's Ratings Services lowered and kept on CreditWatch negative its credit ratings on the class A2 to D notes issued by Palmer Square PLC, a European collateralized debt obligation of asset-backed securities transaction. At the same time, S&P lowered and placed on CreditWatch negative the class A1 notes. As reported in the last trustee report available to us, the class A2, B, and C par value ratio tests are currently failing. The rating actions reflect S&P's assessment of a further deterioration in the credit quality of the underlying portfolios due to their exposure to U.S. CDOs of ABS and residential mortgage-backed securities and the application of updated recovery rate calculations. The negative credit migration has led to an increase in the scenario default rates that may not be supported by current credit enhancement. The updated recovery rate calculations have led to a fall in the break-even default rates (when subject to S&P's cash flow analysis). As a result, S&P believes current credit enhancement cannot support the rise in scenario default rates at existing ratings levels. S&P will closely monitor the transaction's performance and will resolve the outstanding CreditWatch placements in due course. Ratings List Ratings Lowered and Placed on Creditwatch Negative Palmer Square PLC US$1,254.5 Million Asset-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- A1-A AA-/Watch Neg AAA A1-B AA-/Watch Neg AAA A1-AE AA-/Watch Neg AAA Ratings Lowered and Remaining on Creditwatch Negative Rating ------ Class To From ----- -- ---- A2-A BBB+/Watch Neg AA+/Watch Neg A2-B BBB+/Watch Neg AA+/Watch Neg B-1 BBB-/Watch Neg AA-/Watch Neg B-2 BBB-/Watch Neg AA-/Watch Neg C-1 CCC+/Watch Neg BBB-/Watch Neg C-2 CCC+/Watch Neg BBB-/Watch Neg D-1 CCC-/Watch Neg BB/Watch Neg D-2 CCC-/Watch Neg BB/Watch Neg QUALCERAM SHIRES: Goes Into Receivership; Ernst & Young Appointed ----------------------------------------------------------------- Adras Gergely at Reuters reports that Qualceram Shires plc has gone into receivership after being hit by falling property values in Ireland and the United Kingdom. Qualceram, as cited by Reuters, said Ernst & Young will become receiver in Ireland and administrator to UK subsidiaries. The company, Reuters discloses, employs just over 100 employees in Ireland and 150 in the United Kingdom. Reuters relates on Tuesday the company requested the suspension of its shares as talks with its bankers and landlord aimed at shoring up its financial position looked to have failed. On March 24, 2009, the Troubled Company-Reporter Europe, citing Independent.ie, reported Qualceram wants to sell surplus properties but this would result in a breach of its agreements with its landlord, which will, in turn, give WP Carey the right to call in letters of credit worth EUR2.6 million. The company, the report stated, has been in talks with the landlord to waive the covenants and letters of credit. The negotiations also include HBOS, the report noted. The company, Independent.ie disclosed, has also delayed the issuing of its preliminary results and it is not yet known when they will be released. Headquartered in Arklow, Ireland, Qualceram Shires plc -- http://www.qualceram-shires.com/-- is engaged in the manufacture, sale and distribution of bathroom products. The company's brands include Shires, Selecta, Shaws and Trent. STARLING FINANCE: S&P Junks Rating on EUR20 Mil. Notes from 'B-' ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered to 'CCC' from 'B-' its credit rating on the EUR20 million fixed-rate portfolio credit- linked notes issued by Starling Finance PLC series 2005-7. S&P then withdrew the rating following the repurchase of the notes. * IRELAND: Corporate Insolvencies Soar to 365 in First Qtr. 2009 ---------------------------------------------------------------- The number of Irish companies entering insolvency in the first three months of the year increased to 365, compared to 363 for the full-year 2007, The Irish Times' David Labanyi reports citing information released by Kavanagh Fennell. Kavanagh Fennell has warned total insolvencies could reach 1,500 this year, almost double the total of 773 for 2008, if the current trend continues, the report notes. The report discloses to date this year there has been 276 creditors' voluntary liquidations, 32 court liquidations, 45 receiverships and 12 examinerships. According to the report, the construction sector has seen the highest proportion of firms entering insolvency so far this year with 108, or 30 per cent. ========= I T A L Y ========= BANCA DI CREDITO: S&P Affirms 'BB/B' Counterparty Credit Ratings ---------------------------------------------------------------- Standard & Poor's Ratings Services said it affirmed its 'BB/B' long- and short-term counterparty credit ratings on Italy's Banca di Credito Cooperativo dell'Alta Padovana SCaRL. The outlook is negative. At the same time, S&P removed the long- and short-term ratings from CreditWatch with negative implications, where they had initially been placed on Sept. 24, 2008. "The affirmation incorporates our expectations that the bank will be able to maintain in 2009 a financial profile in line with the ratings," said Standard & Poor's credit analyst Francesca Sacchi. The ratings on Alta Padovana continue to reflect the bank's long- standing local franchise in Italy's economically dynamic Veneto region, and the larger capital base than for other rated Italian cooperative banks. The long-term rating benefits from two notches of uplift above Alta Padovana's stand-alone creditworthiness, integrating membership within the "Banche di Credito Cooperativo" network and the potential for extraordinary liquidity and capital support from the BCC network if needed. S&P considers that Alta Padovana has low systemic importance within the Italian banking sector. However, it is one of the largest BCCs in Italy. S&P views Alta Padovana's liquidity position as weaker than peers', due to the bank's strong loan growth in past years. The bank has one EUR150 million euro medium-term note issue, of which EUR130 million is to be reimbursed in May 2009. S&P understands the bank is aiming to strengthen its liquidity by issuing a securitization of performing loans and repo it to the European Central Bank. "The negative outlook reflects the potential that S&P could downgrade Alta Padovana if its financial profile deteriorates further, especially following worsening asset quality and profitability, and additional tangible support from the BCC network fails to offset this weakening," said Ms. Sacchi. S&P might revise the outlook to stable, all other things being equal, if asset quality does not materially deteriorate further. BANCA ITALEASE: Deferred Coupon Payments Cue Fitch's Junk Rating ---------------------------------------------------------------- Fitch Ratings has downgraded Italy-based Banca Italease's EUR150 million trust preferred securities to 'CCC' from 'B-' (B minus) and removed them from the Rating Watch Negative. This follows the bank's announcement that coupon payments on these securities will be deferred. The bank's Long-term Issuer Default Rating of 'BBB-' (BBB minus) and Short-term IDR of 'F3' - which are on Rating Watch Positive - and its Support Rating of '2' are not affected by the rating action. Following a net loss of EUR1,094 million for 2008, the bank's total regulatory capital ratio has fallen below 5%, triggering a mandatory deferral of the coupon. Fitch expects coupon payments to resume on the basis of public statements made by prospective parent, Banco Popolare (BP; rated 'A-' (A minus) on Rating Watch Negative), which plans to increase Italease's capital by end-2009, following its acquisition of Italease in H109. Fitch will review the rating of these securities once more information on the recapitalization has become available. The notes were placed on RWN on March 5, 2009. CHRYSLER LLC: Chrysler-Fiat Combination an "Impossible Goal" ------------------------------------------------------------ A Bloomberg News report says Chrysler LLC may face an "impossible goal" in completing an alliance with Fiat SpA and meeting an Obama administration deadline to erase debt and win more union concessions by April 30. Bloomberg's Mike Ramsey reports that Chrysler got its blueprint for the month of April from President Barack Obama's task force, which said that US$6 billion in new aid hinges on "extinguishing the vast majority" of outstanding secured debt and new givebacks from the United Auto Workers. Bloomberg says meeting those requirements would require help from lenders JPMorgan Chase & Co., Citigroup Inc., Goldman Sachs Group Inc. and Morgan Stanley, which haven't negotiated in the three months since Chrysler got its U.S. loans and have little incentive to do so because they would be paid off first in bankruptcy. Even President Obama's autos panel suggested Chrysler might fare better by reorganizing in court, Bloomberg said. According to Bloomberg, a Chrysler-Fiat combination would be the world's sixth largest by vehicle sales, behind Ford Motor Co. The companies said they have a framework for the alliance they agreed to in principle in January, while adding that "substantial hurdles" remain. The report states that according to President Obama's task force, "Given the magnitude of the concessions needed, the most effective way for Chrysler to emerge from this restructuring with a fresh start may be by using an expedited bankruptcy process as a tool to extinguish liabilities". Completing the Fiat deal is a precondition for loans beyond Chrysler's first US$4 billion, the task force said as cited by the report, which listed debt restructuring among six additional requirements. Chrysler, dependent on light trucks and on the North American market, can't exist as a stand-alone company, President Obama's advisers said. 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. Liquidity Crunch 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 faces 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. A copy of the Chrysler viability plan is available at: http://ResearchArchives.com/t/s?39a3 A copy of GM's viability plan is available at: http://researcharchives.com/t/s?39a4 * * * 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. =================== K A Z A K H S T A N =================== AINA TV JSC: Creditors Must File Claims by May 8 ------------------------------------------------ JSC Aina TV has declared insolvency. Creditors have until May 8, 2009, to submit written proofs of claim to: Abai Ave. 27 Astana Kazakhstan ALLIANCE BANK: Likelihood of Default Cues Moody's Junk Rating ------------------------------------------------------------- Moody's Investors Service has downgraded Alliance Bank's local and foreign currency deposit ratings to Caa3 from B2, and the foreign currency senior unsecured debt rating to Ca from B2. The bank's subordinated and junior subordinated foreign currency debt ratings have been downgraded to C with a stable outlook. The bank financial strength rating of E has been affirmed. At the same time, the rating agency downgraded issuer ratings of Seimar Alliance Financial Corporation -- a holding company of Alliance Bank -- to Ca from Caa1. Alliance Bank's deposit and senior unsecured debt ratings remain on review for possible further downgrade while SAFC's issuer ratings carry a negative outlook. The rating actions conclude a review for possible downgrade that had been initiated on February 6, 2009. "The rating downgrade of Alliance Bank reflects the increasing likelihood of default and debt restructuring of the bank's liabilities stemming from the ongoing deterioration in the financial strength of both Alliance Bank and SAFC, the acceleration of Alliance Bank's public debt repayment schedule and reduced probability of government support to honor its foreign liabilities," said Semyon Isakov, a Moscow-based Moody's Analyst. Moody's understands that a significant portion of Alliance Bank's indentures have early amortization clauses that have been already partly triggered, which, together with the expected nationalization of the bank through its acquisition by Samruk- Kazyna government fund, creates the legal framework for the accelerated repayment of the bank's debt amounting for approximately two thirds of its funding base. In Moody's opinion, the stand-alone financial strength of Alliance Bank makes the accelerating repayment of such volume of debt fairly difficult. Furthermore, Moody's believes that the recent public statements by representatives of Samruk-Kazyna government fund (mainly in respect of the other large Kazakh bank BTA) indicate that government support in this situation is unlikely to be forthcoming. Therefore, Moody's now believes there is no likelihood of systemic support incorporated in Alliance Bank's ratings, and the current senior unsecured ratings now match with the bank's Baseline Credit Assessment of Ca. Moody's also expects that in order to maintain stability in the Kazakh banking system, the government may provide some support to Alliance Bank's depositors. As a result, the bank's Caa3 foreign and local currency deposit ratings factor in Moody's assessment of moderate probability of systemic support and receive a one-notch uplift from its BCA of Ca. The downgrade of SAFC's issuer ratings to Ca from Caa1 resulted from notching down from Alliance Bank's deposit ratings. Moody's previous rating action on Alliance Bank was on February 6, 2009 when the bank's BFSR was downgraded to E from E+, and local and foreign currency deposit and foreign currency senior unsecured debt ratings were downgraded to B2 from Ba2. At that time, the bank's deposit and debt ratings remained on review for possible further downgrade. Headquartered in Almaty, Kazakhstan, Alliance Bank had assets of KZT1.069 trillion (US$8.9 billion) at end-June 2008. Moody's previous rating action on SAFC was on February 6, 2009 when the company's Ba3 local and foreign currency issuer ratings were downgraded to Caa1. At that time, the company's deposit and debt ratings remained on review for possible further downgrade. Based in Almaty, Kazakhstan, SAFC is a holding company that includes a banking segment (represented largely by Alliance Bank), as well as non-banking lending, life and non-life insurance, financial brokerage and business support segments. BALAPAN OJSC: Creditors Must File Claims by May 8 ------------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda has declared OJSC Balapan insolvent. Creditors have until May 8, 2009, to submit written proofs of claim to: Alalykin St. 9 Karaganda Karaganda Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of Karaganda Alalykin St. 9 Karaganda Kazakhstan INDUSTRIYA SERVICE: Creditors Must File Claims by May 8 ------------------------------------------------------- The Specialized Inter-Regional Economic Court of Pavlodar has declared LLP Industriya Service PV insolvent. Creditors have until May 8, 2009, to submit written proofs of claim to: Djambulskaya St. 6 Pavlodar Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of Pavlodar Djambulskaya St. 6 Pavlodar Kazakhstan INVEST STROY: Creditors Must File Claims by May 8 ------------------------------------------------- LLP Invest Stroy Progress has declared insolvency. Creditors have until May 8, 2009, to submit written proofs of claim to: Suvorov St. 13 Pavlodar Kazakhstan JAS KURYLYS LLP: Creditors Must File Claims by May 8 ---------------------------------------------------- The Specialized Inter-Regional Economic Court of Pavlodar has declared LLP Jas Kurylys insolvent. Creditors have until May 8, 2009, to submit written proofs of claim to: Djambulskaya St. 6 Pavlodar Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of Pavlodar Djambulskaya St. 6 Pavlodar Pavlodar Kazakhstan PALMIRA-2006 LLP: Creditors Must File Claims by May 8 ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Palmira-2006 insolvent. Creditors have until May 8, 2009, to submit written proofs of claim to: Micro District 8, 7-41 Kostanai Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of Kostanai Baitursynov St. 70 Kostanai Kazakhstan TRANSIT TAIRA: Creditors Must File Claims by May 8 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Transit Taira insolvent. Creditors have until May 8, 2009, to submit written proofs of claim to: Micro District 8, 7-41 Kostanai Kostanai Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of Kostanai Baitursynov St. 70 Kostanai Kazakhstan VOSTOK GEO: Creditors Must File Claims by May 8 ----------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan has declared JSC Vostok Geo Resursy insolvent. Creditors have until May 8, 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 =================== K Y R G Y Z S T A N =================== AILEN-K LLC: Creditors Must File Claims by April 10 --------------------------------------------------- Creditors of LLC Kyrgyz-Kazakh Firm Ailen-K have until April 10, 2009, to submit proofs of claim to: The company can be reached at: LLC Kyrgyz-Kazakh Firm Ailen-K Tel: (0-772) 32-22-05 KEMENGER SERVICE: Creditors Must File Claims by April 10 -------------------------------------------------------- Creditors of LLC Euro Asia Kemenger Service have until April 10, 2009, to submit proofs of claim to: Micro District "Asanbai" 17/1 Bishkek Kyrgyzstan ===================== N E T H E R L A N D S ===================== ABN AMRO: S&P Affirms 'BB' Rating on Junior Subordinated Notes -------------------------------------------------------------- Standard & Poor's Ratings Services has affirmed its 'A+/A-1' long- and short-term counterparty credit ratings on ABN AMRO Bank N.V., and revised the outlook to stable from developing. In a related action, S&P placed on CreditWatch with developing implications the debt ratings on the subordinated and junior subordinated instruments that ABN AMRO has economically allocated to its businesses that the Dutch state acquired. The list below specifies which instruments are subject to the action. The developing implications mean that S&P may decide to raise, lower, or affirm the ratings on these debt instruments in the coming months. S&P's ratings action follows ABN AMRO's announcement on March 27, 2009, of further details of its planned separation into businesses that the Dutch state acquired and those that The Royal Bank of Scotland PLC acquired. The announcement lists which specific debt instrument each group of businesses plans to take. S&P understands that instruments that won't go to the RBS-acquired businesses will be transferred to a Dutch bank that is to be created in 2009 from the Dutch state-acquired businesses, namely ABN AMRO's Dutch commercial and retail banking and private banking activities. The list, which is still subject to final confirmation by ABN AMRO, stipulates that all unsecured senior debt will move to RBS-acquired businesses; some subordinated bonds and junior subordinated instruments are to be allocated to RBS- acquired businesses and some to the Dutch state-acquired businesses; and the allocation of other subordinated bonds has not yet been determined. "The outlook revision to stable on ABN AMRO reflects our reduced uncertainties about the allocation of the debt instruments between consortium members and the announced plan to move all senior debt to the RBS-acquired entities," said Standard & Poor's credit analyst Elisabeth Grandin. "The outlook on ABN AMRO now mirrors our stable outlook on RBS." "We placed the debt instruments allocated to the Dutch state- acquired businesses on CreditWatch with developing implications because S&P need to assess the new Dutch bank's credit profile," added Ms. Grandin. Information is still limited about the bank's financial profile, which has not yet been legally created. The CreditWatch placement also reflects uncertainties about how the legal transfer will take place. As part of its March 27 announcement, ABN AMRO provided some very rough information on pro forma earnings and balance sheet items for the Dutch state-acquired businesses. In the coming months, S&P will seek more information about the financial and business profiles of the new bank as well as potential support from the Dutch government to assess its overall credit profile. S&P will also take into consideration the planned combination of the new bank with Fortis Bank Nederland Holding NV. Outlook The stable outlook on ABN AMRO mirrors the stable outlook on RBS and reflects S&P's expectation that the legal entity ABN AMRO Bank N.V. and all its senior unsecured debt will become part of the RBS group but will remain a separate legal entity. S&P also understands that ABN AMRO will operationally become fully integrated into the RBS group. As a result, S&P would consider ABN AMRO a core subsidiary according to its criteria and the ratings on it would move in tandem with those on the parent. Creditwatch To resolve the CreditWatch on the debt instruments to go to Dutch state-acquired businesses, S&P needs to assess the creditworthiness of the bank to be created in 2009. Based on the limited information available to us, S&P is likely either to affirm or to lower or raise the ratings -- but no more than one notch. The bank's creditworthiness will reflect the strength of its probable market position as the third-largest Dutch banking group, its potentially moderate risk profile due to its focus on domestic retail and commercial activities, and S&P's expectations of strong support from its full owner, the Dutch state. S&P understands that the Dutch state sees its ownership position as temporary, but will support the bank through a more difficult period of recessionary economic conditions and involving separation from other ABN MARO businesses as well as the subsequent combination with FBNH that carries execution risks. S&P will also need more clarity on the legal transfer of debt instruments to the new bank to resolve the CreditWatch. The CreditWatch resolution on the junior subordinated instruments will also depend on S&P's opinion about leading indicators of heightened risk of payment deferral for issuing entities and the European Commission's view of potential capital injections by Dutch government into the new entity. ABN Amro's State-Acquired Businesses and Their Complex Links On Oct. 6, 2008, the Dutch state purchased, in an emergency move, 100% of the capital of Fortis Bank Nederland Holding from the Fortis group. At this time, FBNH was the owner of the 34% stake in RFS (the holding company through which the consortium acquired ABN AMRO) with the right to ABN AMRO's Dutch commercial and retail banking and private banking activities. On Dec. 21, 2008, the Dutch government purchased from FBNH its stake in RFS to become the direct owner of related ABN AMRO businesses, and facilitate the governance of the consortium with RBS as well as the spin off of ABN AMRO. The projected combination of FBNH and those ABN AMRO businesses into a new large Dutch bank was reaffirmed on Feb. 19, 2008, with the appointment of the ABN AMRO and Fortis Bank Nederland Transition Team. S&P understands that this merger or combination is likely to become effective in 2010, after the parties separate ABN AMRO's activities between the consortium members, which they plan to complete later this year--and after they meet "EC remedies." These refer to EC requirements for a disposal of some Dutch commercial banking activities to avoid what it believes would be a dominant position in The Netherlands. Ratings List Ratings Affirmed; CreditWatch/Outlook Action ABN AMRO Bank N.V. Instruments Allocated to Dutch State Acquired Businesses To From -- ---- Subordinated Debt A/Watch Dev A -- US$250 mil 7.75% sub dep nts ser B due 05/15/2023 (New York branch) -- US$1 bil fltg rate callable lower tier II sub nts ser 822 due 01/17/2017 -- US$100 mil fltg rate callable lower tier II sub med-term nts ser 732 due 10/26/2015 -- EUR1.15 bil 4.625% sub Tier 2 nts ser 114 due 05/12/2009 -- EUR103.4 mil fltg rate sub nts ser 267 due 07/21/2020 -- EUR82 mil fltg rate sub nts ser 261 due 06/30/2017 -- EUR500 mil fltg rate sub nts ser 775 due 05/31/2018 -- EUR1 bil fltg rate lower tier II sub nts due 09/14/2016 To From -- ---- Junior Subordinated BB/Watch Dev BB -- GBP750 mil var rate fxd/fltg rate callable perp sub (upper Tier 2) nts ser 752 -- EUR1 bil var rate step-up/fxd callable perp secs (Tier 1) NB: This list does not include all ratings affected. GOLDEN TULIP: Declining Occupancy Rates Spur Receivership Request ----------------------------------------------------------------- Catherine Hornby at Reuters reports that Netherlands-based hotel chain Golden Tulip Hospitality Group said on Tuesday that it was going into voluntary receivership after declining occupancy rates and the cost of investing in new hotels led to losses. The group, as cited by Reuters, said the leisure and hospitality sector have been hit by the recession, noting occupancies outside the Netherlands and Belgium have declined substantially in the last three quarters. Reuters relates a spokesman said the group had filed for suspension of payments as a form of protection from creditors, and an interim receiver would be appointed by a court. However, the group, Reuters notes, said the operations of Golden Tulip and its franchises would not be affected by the status of receivership, as most Golden Tulip hotels are independent franchises. Reuters says the group was negotiating a possible merger with Apollo Hotels & Resorts and H2 Equity Partners. In a separate report Reuters, citing Dutch news agency, discloses franchise owners of Golden Tulip hotels want to buy the Golden Tulip brand name. Reuters relates according to ANP, the franchisees, who own 72 of the 87 Golden Tulip hotels in the Netherlands, had instructed the owners of Hotel Inntel, Westcord en Golden Green Hotels to make contact with the interim receiver as soon as possible. However, Golden Tulip group spokesman Harmen Geers dismissed the plan of the franchise-owners as "unrealistic". He urged the franchisees to approach the interim receiver if they are serious, Reuters recounts. Golden Tulip Hospitality Group -- http://www.goldentulip.com/-- is a worldwide hospitality company with more than 780 hotels and 75.000 rooms in more than 50 countries. The Golden Tulip Hospitality Group franchises and manages hotels in Europe, the Middle East & Africa, the Asian Pacific Region and the Americas. In 2006, Hotels Magazine has ranked this company the 18th largest hotel chain. MOTIF CAPITAL: S&P Withdraws 'CCC' Rating on 2006-1 Notes --------------------------------------------------------- Standard & Poor's Ratings Services removed from CreditWatch negative and withdrew its credit ratings on the series 2006-1 notes issued by Motif Capital B.V. and the series 2005-7 notes issued by Sceptre Capital B.V. Ratings List Ratings Removed from Creditwatch Negative and Withdrawn Sceptre Capital B.V. EUR50 Million Long-Short Variable-Redemption Limited-Recourse Leveraged CDO Notes Series 2005-7 Ratings ------- To From -- ---- CCC CCC/Watch Neg NR CCC Motif Capital B.V. EUR50 Million Long-Short Variable-Redemption Limited-Recourse Leveraged CDO notes Series 2006-1 Ratings ------- To From -- ---- CCC CCC/Watch Neg NR CCC NR � Not rated. SCEPTRE CAPITAL: S&P Withdraws 'CCC' Rating on 2005-7 Notes ----------------------------------------------------------- Standard & Poor's Ratings Services removed from CreditWatch negative and withdrew its credit ratings on the series 2006-1 notes issued by Motif Capital B.V. and the series 2005-7 notes issued by Sceptre Capital B.V. Ratings List Ratings Removed from Creditwatch Negative and Withdrawn Sceptre Capital B.V. EUR50 Million Long-Short Variable-Redemption Limited-Recourse Leveraged CDO Notes Series 2005-7 Ratings ------- To From -- ---- CCC CCC/Watch Neg NR CCC Motif Capital B.V. EUR50 Million Long-Short Variable-Redemption Limited-Recourse Leveraged CDO notes Series 2006-1 Ratings ------- To From -- ---- CCC CCC/Watch Neg NR CCC NR � Not rated. =========== R U S S I A =========== AGRO-STROY-MONTAZH LLC: Creditors Must File Claims by May 20 ------------------------------------------------------------ Creditors of LLC Agro-Stroy-Montazh (TIN 3663059678, PSRN 1063667232640) (Construction) have until May 20, 2009, to submit proofs of claims to: I. Ageyev Insolvency Manager Office 405a Leninskiy Prospect 15 394029 Voronezh Russia The Arbitration Court of Voronezhskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A14�3828/2008/20/16B. The Debtor can be reached at: LLC Agro-Stroy-Montazh Rostovskaya St. 38 Voronezh Russia AK BARS: Fitch Downgrades Individual Rating to 'D/E' ---------------------------------------------------- Fitch Ratings has affirmed AK BARS Bank's Long-term Issuer Default rating at 'BB' with Stable Outlook. At the same time, the bank's Individual Rating has been downgraded to 'D/E' from 'D'. These actions follow the affirmation of the Republic of Tatarstan's Long-term rating at 'BBB-'(BBB minus)/Stable Outlook. In Fitch's opinion, RT would have a strong propensity to support Ak Bars in light of the government's control of the bank, the long-standing close relationship between the government and Ak Bars, the servicing by Ak Bars of RT accounts, the bank's extensive retail franchise in the republic (1.4 million individual depositors) and its overall importance to RT's banking system (38% of assets at end-2008). In addition, support might be forthcoming indirectly, from government-related enterprises. At the same time, RT's ability to provide support might be constrained by the relative size of the local budget and RT's spare liquidity relative to the bank's balance sheet (average end- of-month cash balances of the republic's budget amounted to RUB9 billion in 2008) while existing budgetary procedures might impact the timeliness of support. Fitch also notes that indirect ownership through affiliated entities complicates a full assessment of the relationship between the RT government and Ak Bars. It might also make the government's propensity to support dependent on the relationship between RT's leadership and the bank and leading local corporates. As a result, Fitch maintains a two- notch differential between the LT rating of RT and Ak Bars. Further movements in Ak Bars' Long-term IDR and National Long-term rating are likely to be driven by changes of RT's Long-term rating or changes in Fitch's view on the RT's propensity or ability to provide support. The downgrade of the Individual Rating reflects the deterioration in the operating environment, increasing levels of loan impairment and the rather aggressive management of the balance sheet over the last few months. The latter resulted in continued corporate loan growth and, as a result, a relatively tight liquidity position. However, the rating still considers Ak Bars's large franchise in the republic, moderate proportion of foreign-currency denominated loans and low refinancing risks. The bank's Board of Directors approved a RUB9 billion equity increase (equal to 36% of end- February 2009 statutory equity), which would support capitalization (the regulatory capital ratio fell to 12.5% at end- February 2009). Dividend policy has changed and the bank does not expect any dividends in the near term. Ak Bars was founded by the Tatarstan government in 1993. It is the largest bank in the republic by assets and was among the 20 largest banks in Russia at end-2008. The RT controls 96% of the bank's shares according to end-H108 financial statements, which were reviewed by auditors. The rating actions are: -- Long-term IDR: affirmed at 'BB'; Outlook Stable -- Short-term IDR: affirmed at 'B' -- Individual Rating: downgraded to 'D/E' from 'D' -- Support Rating: affirmed at '3' -- National Long-term Rating: affirmed at 'AA-(rus)'; Outlook Stable. BAKARITSA-METALL LLC: Creditors Must File Claims by April 20 ------------------------------------------------------------ Creditors of LLC Bakaritsa-Metall (TIN 2901152891, PSRN 1062901064280) (Scrap Processing) have until April 20, 2009, to submit proofs of claims to: Ye. Bagretsova Temporary Insolvency Manager Apt. 492 Voskresenskaya St. 95 163071 Arkhangelsk Russia The Arbitration Court of Arkhangelskaya will convene on Aug. 31, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. A05�1296/2009,. The Debtor can be reached at: LLC Bakaritsa-Metall Lesozavodskaya St. 8 163035 Arkhangelsk Russia COMSTAR UNITED: S&P Puts 'BB' Corporate Ratings on Negative Watch ----------------------------------------------------------------- Standard & Poor's Ratings Services said that it had placed its 'BB' long-term corporate credit ratings and its 'ruAA' Russia national scale ratings on Russian telecoms operator Comstar United TeleSystems and its majority-owned subsidiary, Moscow City Telephone Network on CreditWatch with negative implications. This follows the announcement by Comstar's parent company Sistema (BB/Watch Neg/--) that it had signed an agreement to acquire a controlling stake in Bashkir Oil and Energy Group for US$2.5 billion. "The CreditWatch placement follows a similar action on Sistema, which controls Comstar's strategy and financial policy through a 51% ownership interest," said Standard & Poor's credit analyst Alexander Griaznov. Comstar's ratings are constrained by the aggressive financial risk profile of Sistema, as well as by Comstar's own ambitious growth strategy and uncertainties related to the regulation of the industry in Russia, in particular, those concerning the mooted privatization of national telecoms holding company OJSC Svyazinvest (not rated). These concerns are partially mitigated by Comstar's strong position in Moscow's fixed-line market, its expanding corporate- services segment, favorable financial and operating performance, and synergetic integration of its operating subsidiaries with Sistema's various telecom assets. As of Sept. 30, 2008, Comstar had cash and equivalents of US$570 million, which compares favorably with short-term maturities of about US$99 million. "We expect to resolve the CreditWatch placement within the next three months, following our analysis of the impact of the transaction on Sistema's credit profile Sistema and of its related companies," said Mr. Griaznov. DALCOMBANK: Fitch Puts 'B+' LT Issuer Rating on Watch Negative -------------------------------------------------------------- Fitch Ratings has placed Moscow Bank for Reconstruction and Development's and Dalcombank's Long-term Issuer Default Ratings of 'B+' on Rating Watch Negative. The rating action follows the placement of Sistema Joint Stock Financial Corp.'s Long-term foreign currency 'BB-' (BB minus) IDR on RWN. Sistema is the main shareholder of MBRD and, through MBRD, Dalcombank. The ratings of MBRD and Dalcombank reflect Fitch's view of the strong propensity of Sistema to provide support to banks in case of need, although this is limited by the ability of Sistema to provide support. Fitch expects to resolve the RWN on the banks' IDRs upon the resolution of the RWN on Sistema's IDR. MBRD is a medium-sized Russian bank, 95%-owned by Sistema. Servicing the needs of Sistema remains an important part of MBRD's business, but the bank has also developed a sizeable third-party customer franchise. In February 2009, MBRD became the sole owner of Dalcombank, which was acquired by Sistema in 2007. Dalcombank is a small-sized Russian bank based in Khabarovsk with a broad presence in the far east of Russia. Rating actions: MBRD -- Long-term IDR: 'B+'; placed on RWN -- Short-term IDR: affirmed at 'B' -- Individual: affirmed at 'D/E' -- Support: affirmed at '4' -- National Long-term: 'A-(A minus)(rus)'; placed on RWN Dalcombank -- Long-term IDR: 'B+'; placed on RWN -- Short-term IDR: affirmed at 'B' -- Individual: affirmed at 'E' -- Support: affirmed at '4' -- National Long-term: 'A-(A minus)(rus)'; placed on RWN KONSTRUKTSIYA-1 LLC: Bankruptcy Hearing Set July 27 --------------------------------------------------- The Arbitration Court of Volgogradskaya will convene on July 27, 2009, to hear bankruptcy proceedings on LLC Volgograd-Stroy- Konstruktsiya-1 (TIN 3446018949, PSRN 1053460056132) (Construction). The case is docketed under Case No. A12� 1893/2009,. The Insolvency Manager is: D. Shevchenko Post User Box 3544 400066 Volgograd Russia The Debtor can be reached at: LLC Volgograd-Stroy-Konstruktsiya-1 Pushkina St. 57B Volzhskiy Volgogradskaya Russia KYRSK FOUNDRY LLC: Kursk Bankruptcy Hearing Set August 19 --------------------------------------------------------- The Arbitration Court of Kursk will convene at 10:20 a.m. on Aug. 19, 2009, to hear bankruptcy supervision procedure on LLC Kursk Foundry. The case is docketed under Case No. A35�9032/08- S8. The Temporary Insolvency Manager is: V. Volgin Apt.3 Kutsygina St. 35/1 394006 Voronezh Russia Tel: (4732) 51�24�67 (4732) 77�55�34 8�910�247�50�69 E-mail: va_volgin@hotbox.ru The Court is located at: The Arbitration Court of Kursk Hall 110 K. Marksa St. 25 305004 Kursk Russia MEKHANIK CJSC: Creditors Must File Claims by April 20 ----------------------------------------------------- Creditors of CJSC Mekhanik (Mining and Construction Equipment Production) have until April 20, 2009, to submit proofs of claims to: M. Bogatova Insolvency Manager Post User Box 3084 650024 Kemerovo Russia The Arbitration Court of Kemerovo will convene on June 17, 2009, to hear bankruptcy proceedings. The case is docketed under Case No. A27�18121/2008�4. The Court is located at: The Arbitration Court of Kemerovo Krasnaya St. 8 Kemerovo Russia The Debtor can be reached at: CJSC Mekhanik Proektnaya St. 1 652702 Kiselevsk Russia MOBILE TELESYSTEMS: S&P Puts 'BB' Corp. Rating on Negative Watch ---------------------------------------------------------------- Standard & Poor's Ratings Services said that it had placed its 'BB' long-term corporate credit rating on Russia's largest telecoms operator, Mobile TeleSystems on CreditWatch with negative implications. This follows the announcement by MTS' parent company Sistema (BB/Watch Neg/--) that it had signed an agreement to acquire a controlling stake in Bashkir Oil and Energy Group for US$2.5 billion. "The CreditWatch placement follows a similar rating action on Sistema, which has substantial control over MTS' strategy and financial policy through a 52.8% ownership interest," said Standard & Poor's credit analyst Alexander Griaznov. While S&P takes the view that MTS' business risk profile points to stronger stand-alone credit quality, the rating remains constrained by Sistema's credit profile and majority ownership. From a stand-alone business perspective, MTS' main credit risks are associated with the company's own organic and external growth plans, intensifying competition, and the risks associated with operating in Russia. These risks are mitigated by the company's strong business characteristics, based on solid positions in the Russian and Ukrainian mobile markets. These characteristics include robust growth with steadily improving economies of scale; sound operating profitability; strong cash flows; and declining financial risk. As of Dec. 31, 2008, the company's short-term maturities of about US$1.2 billion were almost fully covered by cash of US$1.1 billion. "We expect to resolve the CreditWatch placement within the next three months, following our analysis of the impact of the transaction on Sistema's credit profile and on that of its related companies, including MTS," said Mr. Griaznov. MOSCOW BANK: Fitch Puts 'B+' LT Issuer Rating on Negative Watch --------------------------------------------------------------- Fitch Ratings has placed Moscow Bank for Reconstruction and Development's and Dalcombank's Long-term Issuer Default Ratings of 'B+' on Rating Watch Negative. The rating action follows the placement of Sistema Joint Stock Financial Corp.'s Long-term foreign currency 'BB-' (BB minus) IDR on RWN. Sistema is the main shareholder of MBRD and, through MBRD, Dalcombank. The ratings of MBRD and Dalcombank reflect Fitch's view of the strong propensity of Sistema to provide support to banks in case of need, although this is limited by the ability of Sistema to provide support. Fitch expects to resolve the RWN on the banks' IDRs upon the resolution of the RWN on Sistema's IDR. MBRD is a medium-sized Russian bank, 95%-owned by Sistema. Servicing the needs of Sistema remains an important part of MBRD's business, but the bank has also developed a sizeable third-party customer franchise. In February 2009, MBRD became the sole owner of Dalcombank, which was acquired by Sistema in 2007. Dalcombank is a small-sized Russian bank based in Khabarovsk with a broad presence in the far east of Russia. Rating actions: MBRD -- Long-term IDR: 'B+'; placed on RWN -- Short-term IDR: affirmed at 'B' -- Individual: affirmed at 'D/E' -- Support: affirmed at '4' -- National Long-term: 'A-(A minus)(rus)'; placed on RWN Dalcombank -- Long-term IDR: 'B+'; placed on RWN -- Short-term IDR: affirmed at 'B' -- Individual: affirmed at 'E' -- Support: affirmed at '4' -- National Long-term: 'A-(A minus)(rus)'; placed on RWN PROM-STROY-4 LLC: Creditors Must File Claims by May 20 ------------------------------------------------------ Creditors of LLC Prom-Stroy-4 (TIN 5259002371) (Construction) have until May 20, 2009, to submit proofs of claims to: V. Talanov Insolvency Manager Ploshchad� Revolutsii 7A 603002 Nizhny Novgorod Russia The Arbitration Court of Nizhegorodskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A43�22565/2008,27�138. The Debtor can be reached at: LLC Prom-Stroy-4 Krasnylh Zor� St. 1A 603650 Nizhny Novgorod Russia SEVERSKAYA TRANSPORTATION: Creditors Must File Claims by May 20 ---------------------------------------------------------------- Creditors of LLC Severskaya Transportation Company have until May 20, 2009, to submit proofs of claims to: M. Churayev Insolvency Manager Shkolnaya St. 11 Plotnikova Bakcharskiy 636210 Tomskaya Russia The Arbitration Court of Tomskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A67�5776/08. The Debtor can be reached at: LLC Severskaya Transportation Company Lesnaya St. 1a Seversk Tomskaya Russia SISTEMA: Inks Deal to Acquire Controlling Stakes in Bashkir Oil --------------------------------------------------------------- Sistema has signed an agreement with Agidel-Invest LLC, Ural- Invest LLC, Inzer-Invest LLC and Yuryuzan-Invest LLC to acquire their stakes in Bashkir Oil and Energy Group companies, including ANK Bashneft JSC, Ufaneftechim JSC, Novoil JSC, Ufaorgsintez JSC, Ufimskiy NPZ JSC and Bashkirnefteprodukt JSC. The deal is expected to be concluded for a total cash consideration of US$2.5 billion. The payment is being made in two tranches with US$2.0 billion paid upon the completion and US$500 million being paid on a deferred basis after 14 months. The completion of the deal is contingent upon the fulfillment of a number of conditions. In 2005, Sistema-Invest, a subsidiary of Sistema, acquired minority stakes in Bashkir Oil and Energy Group's subsidiaries. Following the completion of this transaction Sistema will own 76.52% stake in ANK Bashneft JSC, 65.78% stake in Ufaneftechim JSC, 87.23% stake in Novoil JSC, 73.02% stake in Ufaorgsintez JSC, 78.49% stake in Ufimskiy NPZ JSC and 73.33% stake in Bashkirnefteproduct JSC. Furthermore, in accordance with the Russian legislation Sistema plans to make an offer to minority shareholders of Bashkir Oil and Energy Group for purchase of their shares. Leonid Melamed, President and Chief Executive Officer, commented: "Sistema and its Group companies have been operating in Bashkortostan for a number of years. We are confident that the acquisition of controlling stakes in Bashkir Oil and Energy Group companies will underpin our cooperation with the Republic. We plan to further develop and build up the production potential of the oil companies thus strengthening the economy and social infrastructure in Bashkortostan. Furthermore, the creation of a vertically integrated oil company will sustain further economic development and rational use of the Republic's potential in the future. The increase in Sistema's ownership of Bashkir Oil and Energy Group companies is in line with our strategy to create additional shareholder value. This transaction will allow us to maximize the returns from our portfolio investments and to receive another steady source of cash flows." Conference Call Sistema has rescheduled the conference call to discuss the acquisition of controlling stakes in Bashkir Oil and Energy Group. Sistema has confirmed that the planned conference call with management to discuss the acquisition of controlling stakes in Bashkir Oil and Energy Group will now take place on Thursday, April 9, 2009, and not on Wednesday, April 1, 2009, as previously communicated. Sistema -- http://www.sistema.com/-- is the largest public diversified corporation in Russia and the CIS, which manages fast growing companies operating in the telecommunications, consumer services sectors and technology industries and has over 100 million customers. Sistema develops and manages market-leading businesses in selected industries, including telecommunications, technology, banking, real estate, retail, media, tourism and healthcare. Founded in 1993, the company reported revenues of US$12.6 billion for the first nine months of 2008 (unaudited), and total assets of US$32.0 billion as at September 30, 2008 (unaudited). Sistema's shares are listed under the symbol "SSA" on the London Stock Exchange, under the symbol "AFKS" on the Russian Trading System (RTS), under the symbol "AFKC" on the Moscow Interbank Currency Exchange (MICEX), and under the symbol "SIST" on the Moscow Stock Exchange (MSE). * * * As reported in the Troubled Company Reporter-Europe on Sept. 1, 2008, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Russian holding company Sistema (JSFC) to 'BB' from 'BB-'. The outlook is stable. SISTEMA: S&P Puts 'BB' Corporate Rating on Negative Watch --------------------------------------------------------- Standard & Poor's Ratings Services said that it had placed its 'BB' long-term corporate credit rating on Russian operating holding company Sistema on CreditWatch with negative implications following Sistema's announcement that it had signed an agreement to acquire a controlling stake in Bashkir Oil and Energy Group for US$2.5 billion. "The CreditWatch placement reflects the possibility that S&P could lower the rating on Sistema by one or more notches depending on the impact of this acquisition on the company's financial profile," said Standard & Poor's credit analyst Alexander Griaznov. "We are concerned about the potential increase in leverage and the impact of the transaction on the group's liquidity profile and debt structure." In addition, raising new debt could lead to pressure on financial covenants on existing facilities and significantly impact Sistema's recovery rating. The corporate credit rating on Sistema is constrained by the group's relatively aggressive financial policy, with a strong focus on business growth; predisposition to acquisitions; and limited cash flow diversification, exacerbated by the cash consumption of many of its growth-oriented business segments. These weaknesses are mitigated by continuing strong performance of Sistema's core telecommunications assets, relatively moderate leverage to date, and tangible progress in streamlining operations. Sistema's consolidated debt was US$10.1 billion as of Sept. 30, 2008. "We expect to resolve the CreditWatch placement within the next three months, following our analysis of the impact of the transaction on Sistema's credit profile," said Mr. Griaznov. SISTEMA-HALS JSC: Fitch Puts 'B' Issuer Ratings on Negative Watch ----------------------------------------------------------------- Fitch Ratings has placed Russian property developer JSC Sistema- Hals' Long-term Issuer Default Rating and Short-term IDR of 'B', respectively, and National Long-term Rating of 'BBB-(BBB minus) (rus)' on Rating Watch Negative. The RWN reflects concerns about a potential reduction in future support from SH's 71% owner, Sistema Joint Stock Financial Corp. (rated 'BB-'(BB minus)/RWN). Fitch currently notches up SH's ratings by approximately 1-2 notches to reflect the expectation of continuing support from its stronger owner. Although Sistema does not guarantee SH's debt, the notching reflects the perceived linkage between the two entities (based on Fitch's Parent and Subsidiary Rating Linkage methodology), including Sistema's high level of ownership in SH, operational links, family links, a shared brand-name and cross- default linkage. This has been underlined over the past 12 months by tangible evidence of support from Sistema, including arms- length lending to SH from Sistema subsidiaries and the pledge of assets by Sistema to assist SH with external debt financing. However, Fitch has increasing concern that Sistema's ability to support SH could be reduced going forward, especially should Sistema's stand-alone credit profile weaken. In a separate rating action, Fitch has placed Sistema's ratings on RWN following its announcement of plans to undertake a substantial debt-funded acquisition of Bashkir Oil and Energy Group. Fitch also notes that as part of the renegotiation of a debt facility in November 2008, Sistema pledged a 65.6% stake in SH to state-owned bank VTB ('BBB'/Negative Outlook). Given this pledge of shares, there continues to be a risk that the majority ownership of SH could be transferred from Sistema at some point in the future. If Sistema were to no longer hold a majority stake in SH in the future, it would imply a significant reduction in its willingness to support SH, and in turn could weaken the linkage assumptions between the two entities to such a degree that SH's ratings were no longer notched-up to reflect implied support from Sistema. SH's stand-alone profile continues to be weak, and below its current IDR of 'B'. SH is currently operating in a difficult environment, with a weakening Russian real estate market likely to reduce earnings, asset values and operating cash flows going forward. The difficult financing environment also restricts the company's ability to fund new projects and refinance existing debt. The stand-alone profile is also adversely affected by the size of the company's leverage (net debt/LTM EBITDAR), which as of Q308 stood at 7.2x. Fitch will seek to resolve SH's RWN status once the RWN status on Sistema's ratings has been resolved. SH's ratings could be downgraded if Sistema's ratings were to be downgraded, thus implying a reduced ability on the part of Sistema to support SH. However, the ratings could also be downgraded independently of a rating action with respect to Sistema, particularly if (i) SH's stand-alone profile deteriorates further without more tangible support from Sistema, and/or (ii) if Fitch perceives a reduced willingness on the part of Sistema to provide support (including a possible change in ownership in SH). The ratings could be downgraded by more than once notch, especially if future support from Sistema was no longer viewed as likely. STEKLO-TEKH LLC: Court Names Temporary Insolvency Manager --------------------------------------------------------- The Arbitration Court of Belgorodskaya appointed Yu. Dobrovolskiy as Temporary Insolvency Manager for LLC Steklo-Tekh (Glass Optical Elements Production). The case is docketed under Case No. A08� 263/2009,�2B. He can be reached at: Schorsa St. 45Zh 308036 Belgorod Russia The Debtor can be reached at: LLC Steklo-Tekh Schorsa St. 45Zh 308036 Belgorod Russia STROY-INVEST LLC: Creditors Must File Claims by April 20 -------------------------------------------------------- Creditors of LLC Stroy-Invest (TIN 1327000353, PSRN 1051327015915, RVC 132702001) (Construction) have until April 20, 2009, to submit proofs of claims to: I. Burykin Temporary Insolvency Manager Polezhayeva St. 72/28 430000 Saransk Russia The Arbitration Court of Mordovia will convene on April 6, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. A39�4737/2008. The Debtor can be reached at: LLC Stroy-Invest Furmanova St. 18 Saransk Mordovia Russia TEKH-MASH-STROY LLC: Creditors Must File Claims by April 20 ----------------------------------------------------------- Creditors of LLC Tekh-Mash-Stroy (Construction) have until April 20, 2009, to submit proofs of claims to: Ye. Melnikov Temporary Insolvency Manager Malykh St. 44b 305019 Kursk Russia The Arbitration Court of Kurskaya commenced bankruptcy supervision procedure. The case is docketed under Case No. A35�7639/08 S24. The Court is located at: The Arbitration Court of Kurskaya K. Marksa St. 25 305029 Kursk Russia The Debtor can be reached at: LLC Tekh-Mash-Stroy Engelsa St. 115 305007 Kursk Russia * Fitch Affirms 'D' Individual Ratings on Seven Russian Banks ------------------------------------------------------------- Fitch Ratings has changed the Outlooks on Credit Bank of Moscow, Locko-bank and Master Bank to Negative from Stable. These banks' Long-term Issuer Default Ratings have been affirmed at 'B'. At the same time, the agency has affirmed Evrofinance Mosnarbank, International Industrial Bank, National Reserve Bank and Roseurobank at Long-term IDR 'B', with Stable Outlook. A full list of rating actions is provided at the end of this commentary. The Negative Outlooks on CBOM, Locko and MB reflect the potential for significant asset quality deterioration in the currently difficult operating environment and the moderate loss absorption capacity of those banks, based on reserve and capital numbers in their latest statutory accounts. While MB and Locko have somewhat higher capital ratios at present than CBOM (which plans an equity injection in Q209), Fitch views the high level of construction/real estate lending at these two banks as a source of significant risk. Lending in foreign currency is also considerable at all three banks, most so at Locko. Reported loan impairment is currently low at CBOM and Locko and moderate at MB; however, Fitch notes that MB's practice of providing, and then extending, short-term loans may mean that loan impairment is not always fully captured in reported overdue numbers. CBOM and Locko have sizable foreign wholesale borrowings falling due in 2009. While, in Fitch's view, the banks' current liquidity positions should make them able to repay these facilities, the repayments are likely to reduce the banks' financial flexibility and would make them more susceptible to any marked deposit outflow. MB operates with a high liquid assets ratio in light of its predominantly short-term customer funding. The Stable Outlooks on EVMB, IIB, NRB and REB reflect those banks' considerable loss absorption capacity, which should make them able to withstand a significant increase in loan impairment without requiring recapitalization. However, asset quality is likely to deteriorate at each of these banks in light of the weaker economic outlook, with related party lending at IIB and NRB and foreign currency lending at REB and NRB as areas of particular risk. The downgrade of NRB's National rating to 'BBB-(BBB minus)(rus)' from 'BBB(rus)' reflects the recent increases in related party lending and loan impairment, as well as support provided by NRB to the failed bank, Rossiiskiy Capital. However, these risks are compatible, in Fitch's view, with NRB's 'B' Long-term IDR. The assessment of the banks referenced in this comment is the latest part of a broader review of all Fitch-rated banks in Russia, with the main focus on asset quality, loss absorption capacity and contingency recapitalization plans. The rating actions are: Credit Bank of Moscow -- Long-term foreign currency IDR: affirmed at 'B; Outlook changed to Negative from Stable -- Senior unsecured debt: affirmed at 'B'; Recovery Rating at 'RR4' -- Short-term foreign currency IDR: affirmed at 'B' -- Individual: affirmed at 'D' -- Support Rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No floor' -- National Long-term Rating: affirmed at 'BBB-(BBB minus)(rus) '; Outlook changed to Negative from Stable Evrofinance Mosnarbank -- Long-term foreign currency IDR: affirmed at 'B'; Outlook Stable -- Short-term foreign currency IDR: affirmed at 'B' -- Individual: affirmed at 'D' -- Support Rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No floor' -- National Long-term Rating: affirmed at 'BBB(rus)'; Outlook Stable International Industrial Bank -- Long-term foreign currency IDR: affirmed at 'B'; Outlook Stable -- Senior unsecured debt: affirmed at 'B'; Recovery Rating at 'RR4' -- Short-term foreign currency IDR: affirmed at 'B' -- Individual: affirmed at 'D' -- Support Rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No floor' -- National Long-term Rating: affirmed at 'BBB(rus)'; Outlook Stable Locko-bank -- Long-term foreign currency IDR: affirmed at 'B'; Outlook changed to Negative from Stable -- Senior unsecured debt: affirmed at 'B'; Recovery Rating at 'RR4' -- Long-term local currency IDR: affirmed at 'B'; Outlook changed to Negative from Stable -- Short-term foreign currency IDR: affirmed at 'B' -- Individual: affirmed at 'D' -- Support Rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No floor' -- National Long-term Rating: affirmed at 'BBB-(BBB minus)(rus)'; Outlook changed to Negative from Stable Master bank -- Long-term foreign currency IDR: affirmed at 'B; Outlook changed to Negative from Stable -- Short-term foreign currency IDR: affirmed at 'B' -- Individual Rating: affirmed at 'D' -- Support Rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No floor' National Reserve Bank -- Long-term foreign currency IDR: affirmed at 'B; Outlook Stable -- Short-term foreign currency IDR: affirmed at 'B' -- National Long-term Rating: downgraded to 'BBB-(BBB minus)(rus)' from 'BBB(rus) '; Outlook Stable -- Individual Rating: affirmed at 'D' -- Support Rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No floor' Rosevrobank -- Long-term foreign currency IDR: affirmed at 'B'; Outlook Stable -- National Long-term Rating: affirmed at 'BBB-(BBB minus)(rus)'; Outlook Stable -- Short-term foreign currency IDR: affirmed at 'B' -- Individual Rating: affirmed at 'D' -- Support Rating: affirmed at '5' -- Support Rating Floor: affirmed at 'No floor' ========= S P A I N ========= SA NOSTRA: Fitch Assigns Low-B Ratings on Series C and D Notes -------------------------------------------------------------- Fitch Ratings has assigned ratings to TDA SA NOSTRA EMPRESAS 2 Fondo de Titulizacion de Activos's CDO notes, totaling EUR355 million and due in June 2051: -- EUR257.7 million Series A: 'AAA'; Outlook Stable -- EUR50.4 million Series B: 'A'; Outlook Stable -- EUR36.5 million Series C: 'BB'; Outlook Stable -- EUR10.4 million Series D: 'B'; Outlook Stable The transaction is a cash flow securitization of a EUR355m static pool of secured and unsecured loans granted by Caja de Ahorros y Monte de Piedad de Las Baleares (Sa Nostra, rated 'A-'(A minus)/'F2'/Negative), a Spanish savings bank, to small- and medium-sized Spanish enterprises with the purpose of financing business activity and new investments. The pool consists of 1,697 loans to SMEs with a strong concentration (approximately 92%) in the region of Baleares, the bank's home region. The ratings address the payment of interest on the notes according to the terms and conditions of the documentation, subject to a deferral trigger for the class B, C and D notes, as well as the repayment of principal by legal maturity in June 2051. TDA SA NOSTRA EMPRESAS 2, Fondo de Titulizacion de Activos is the second single-seller SME securitization transaction originated by Sa Nostra. The issuer is legally represented and managed by Titulizacion de Activos, SGFT, S.A. (TDA, or the Sociedad Gestora), a special-purpose management company with limited liability incorporated under the laws of Spain. The notes' ratings are based on the quality of the collateral, the underwriting and servicing of the loans, available credit enhancement, the characteristics and integrity of the transaction's legal and financial structure and the Sociedad Gestora's administrative capabilities, and incorporate Fitch's most up-to-date view of Spanish SME credit risk. Fitch is in the process of reviewing its rating methodology and model assumptions for all new issue SME CDO ratings. Investors should be aware that Fitch is reassessing its analytical views which could impact existing ratings, including the ratings assigned to the securities in this comment. SANTANDER HIPOTECARIO: Fitch Puts 'C'-Rated Class F Notes on RWN ---------------------------------------------------------------- Fitch Ratings has placed 16 tranches of Fondo De Titulizacion De Activos Santander Hipotecario 3 and Fondo De Titulizacion De Activos Santander Hipotecario 4 Spanish RMBS transactions on Rating Watch Negative. The RWN reflects the continued deterioration in both transactions due to the pools' weaker collateral composition as well as the deteriorating Spanish housing market and macro-economic conditions. As such, Fitch is conducting a thorough loan-by-loan analysis of both transactions and updating performance assumptions. The agency expects to complete this review in the next four weeks following the receipt of updated and accurate pool cuts from Banco Santander Central Hispano. The asset performance on both pools has deteriorated significantly and the agency expects that current economic conditions will likely cause higher arrears and defaults; especially given each transaction's high weighted average loan-to-value ratios (Shipo 3 is 85.08% and Shipo 4 is 87.46%). At the conclusion of the Fitch review, the agency expects that ratings may be downgraded by one full rating category or more across the deals' capital structure. Ratings are: Fondo De Titulizacion De Activos Santander Hipotecario 3: -- Class A1 (ISIN ES0338093000): 'AAA'; on Rating Watch Negative -- Class A2 (ISIN ES0338093018): 'AAA'; on Rating Watch Negative -- Class A3 (ISIN ES0338093026): 'AAA'; on Rating Watch Negative -- Class B (ISIN ES0338093034): 'AA-' (AA minus); on Rating Watch Negative -- Class C (ISIN ES0338093042): 'BBB+'; on Rating Watch Negative -- Class D (ISIN ES0338093059): 'BB'; on Rating Watch Negative -- Class E (ISIN ES0338093067): 'B'; on Rating Watch Negative -- Class F (ISIN ES 0338093075): 'C'; on Rating Watch Negative; Recovery Rating is 'RR6' Fondo De Titulizacion De Activos Santander Hipotecario 4: -- Class A1 (ISIN ES0337711008): 'AAA'; on Rating Watch Negative -- Class A2 (ISIN ES0337711016): 'AAA'; on Rating Watch Negative -- Class A3 (ISIN ES0337711024): 'AAA'; on Rating Watch Negative -- Class B (ISIN ES0337711032): 'AA-' (AA minus); on Rating Watch Negative -- Class C (ISIN ES0337711040): 'BBB+'; on Rating Watch Negative -- Class D (ISIN ES0337711057): 'BB'; on Rating Watch Negative -- Class E (ISIN ES0337711065): 'B'; on Rating Watch Negative -- Class F (ISIN ES0338341011): 'C'; on Rating Watch Negative; Recovery Rating is 'RR6' SANTANDER HIPOTECARIO: S&P Cuts Ratings on Class C Notes to 'BB' ---------------------------------------------------------------- Standard & Poor's Ratings Services has taken rating actions on five Spanish residential mortgage-backed securities transactions originated and serviced by Banco Santander S.A. (AA/Negative/A- 1+). Specifically, S&P: -- upgraded the ratings on the class B, C, and D notes issued by Fondo de Titulizacion de Activos Santander Hipotecario 1 (Santander 1); -- placed on CreditWatch negative the class A notes and downgraded the class B, C, D and E notes issued by Fondo de Titulizacion de Activos Santander Hipotecario 2 (Santander 2), Fondo de Titulizacion de Activos Santander Hipotecario 3 (Santander 3), and Fondo de Titulizacion de Activos Santander Hipotecario 4 (Santander 4); and -- placed the ratings on the class D and E notes issued by Fondo de Titulizacion de Activos Santander Hipotecario 5 (Santander 5) on CreditWatch negative. These rating actions follow a full credit and cash flow analysis of the most recent transaction information that S&P has received. The results of S&P's analysis showed that for those tranches either placed on CreditWatch negative or lowered, the credit enhancement available was not commensurate with the current ratings, or that the available credit enhancement may be insufficient. As a result of the ongoing deleveraging of Santander 1, the aggregate risk measures are gradually improving. The weighted- average LTV ratio of the loans has fallen to approximately 72% from 88% at closing, and the current arrears levels are relatively stable, below the average recorded for the Spanish market. In contrast, the mortgage portfolios underlying Santander Hipotecario 2, 3, 4, and 5 are generating high levels of arrears. Loans more than 90 days in arrears, including defaulted loans and repossessions, represent 3.9% (Santander 2), 7.5% (Santander 3), 10.3% (Santander 4), and 2.5% (Santander 5) of the current mortgage portfolios, well above the average for other Spanish RMBS transactions with similar seasoning. Recent performance data combined with the portfolio characteristics suggest that these numbers will continue to rapidly increase over the next few quarters. Indeed, these severe delinquencies have already broadly doubled in Santander 2 and 3, and quadrupled in Santander 4 over the last quarter. All the transactions feature a structural mechanism that traps excess spread to provide for defaults, which are defined as arrears greater than 18 months or those loans classified as defaulted by the servicer. As a result of higher delinquencies and this structural feature, Santander 3 and Santander 4 have already fully drawn their cash reserves. The effect of the reserve drawings is twofold. On the one hand, it will not allow excess spread to flow from the deals for the foreseeable future, but on the other it impairs the internal liquidity of the transactions for as long as the recoveries on defaulted assets are not received. When the cumulative default rates in Santander 2, 3, 4 and 5 reach a certain percentage of the initial balance (based on the balance of defaulted loans), the priority of payments would be altered so as to shut off interest payments to the related class of notes. In Santander 1, interest in the subordinated classes should be deferred if principal deficiencies reach certain levels for each class of notes. The rating actions therefore also take into account the effect of nonpayment of interest in the light of possible defaults, in addition to S&P's assessment of the default risk in the residual portfolios. Ratings List Ratings Raised Fondo de Titulizacion de Activos Santander Hipotecario 1 EUR1.875 Billion Residential Mortgage-Backed Floating-Rate Notes Class Rating ----- ------ To From -- ---- B AA+ AA C AA- A+ D A- BBB+ Ratings Placed on Creditwatch Negative Fondo de Titulizacion de Activos Santander Hipotecario 2 EUR1.955 Billion Mortgage-Backed Floating-Rate Notes and an Overissuance of EUR17.6 Million Floating-Rate Notes Class Rating ----- ------ To From -- ---- A AAA/Watch Neg AAA Fondo de Titulizacion de Activos Santander Hipotecario 3 EUR2.8 Billion Mortgage-Backed Floating-Rate Notes and an Overissuance of EUR22.4 Million Floating-Rate Notes Class Rating ----- ------ To From -- ---- A1 AAA/Watch Neg AAA A2 AAA/Watch Neg AAA A3 AAA/Watch Neg AAA Fondo de Titulizacion de Activos Santander Hipotecario 4 EUR1.23 Billion Mortgage-Backed Floating-Rate Notes and an Overissuance of EUR14.8 Million Floating-Rate Notes Class Rating ----- ------ To From -- ---- A1 AAA/Watch Neg AAA A2 AAA/Watch Neg AAA A3 AAA/Watch Neg AAA Fondo de Titulizacion de Activos Santander Hipotecario 5 EUR1.375 Billion Mortgage-Backed Floating-Rate Notes and an Overissuance of EUR24.7 Million Floating-Rate Notes Class Rating ----- ------ To From -- ---- D BBB/Watch Neg BB E BB/Watch Neg B Ratings Lowered and Removed from Creditwatch Negative Fondo de Titulizacion de Activos Santander Hipotecario 2 EUR1.955 Billion Mortgage-Backed Floating-Rate Notes and an Overissuance of EUR17.6 Million Floating-Rate Notes Class Rating ----- ------ To From -- ---- C BBB A-/Watch Neg D BB BBB/Watch Neg E B BB/Watch Neg Fondo de Titulizacion de Activos Santander Hipotecario 3 EUR2.8 Billion Mortgage-Backed Floating-Rate Notes and an Overissuance of EUR22.4 Million Floating-Rate Notes Class Rating ----- ------ To From -- ---- B BBB AA/Watch Neg C BB A/Watch Neg D B BBB/Watch Neg E B- BB/Watch Neg Fondo de Titulizacion de Activos Santander Hipotecario 4 EUR1.23 Billion Mortgage-Backed Floating-Rate Notes and an Overissuance of EUR14.8 Million Floating-Rate Notes Class Rating ----- ------ To From -- ---- B BBB AA/Watch Neg C BB A/Watch Neg D B BBB/Watch Neg E B- BB/Watch Neg Ratings Lowered Fondo de Titulizacion de Activos Santander Hipotecario 2 EUR1.955 Billion Mortgage-Backed Floating-Rate Notes and an Overissuance of EUR17.6 Million Floating-Rate Notes Class Rating ----- ------ To From -- ---- B A AA- TDA CAM: Fitch Cuts Ratings on Three Classes of Notes to Low-B -------------------------------------------------------------- Fitch Ratings has downgraded 14 and affirmed six tranches of five TDA CAM transactions. Fitch has simultaneously revised the Outlooks on twelve tranches of TDA CAM 5 to 9 to Negative from Stable and assigned Recovery Ratings of 'RR5' to the class D notes of TDA CAM 8 and 9. The negative rating actions reflect the deteriorating performance of the deals, evidenced by the increasing number of defaulted loans being provisioned at twelve months, as well as the rising volume of loans in arrears, which Fitch expects will eventually become defaulted. The downgrades are also a result of Fitch's expectations on the transactions' future performance, given the current challenging housing market in Spain and the general macroeconomic environment. Fitch highlighted the recent reserve fund draws of TDA CAM 5, 6 and 9 in a February 11, 2009, comment, and noted that reserve fund draws on TDA CAM 7 and 8 were also expected. According to the latest investor reports, the reserve fund draws on the five transactions ranged from 0.17% (TDA CAM 5) to 37.78% (TDA CAM 8) of the target amounts, causing a slowdown in the credit enhancement growth of the notes, particularly for the lower-rated classes. The reserve fund draws were caused by increasing volumes of defaulted loans, defined as loans with twelve or more missed payments, which are being provisioned for. In February 2009, period defaults ranged from EUR1.7 million (TDA CAM 6) to EUR4.3 million (TDA CAM 7). Although the volume of gross excess spread generated by the transactions ranges between 0.17% (TDA CAM 8) and 0.75% (TDA CAM 6) of the current portfolio outstanding, as calculated by Fitch, the pace at which loans in arrears are entering the higher arrears buckets, and eventually are being classified as defaulted, indicate that further reserve fund draws are likely to remain at least at current levels. Based on the monthly arrears and default data received, Fitch believes that full depletions of the reserve funds are likely to occur on all five transactions in forthcoming periods. The agency has particular concern in relation to the more recent transactions, TDA CAM 7 to 9, where a full depletion is expected in the course of 2009. These concerns are reflected in the downgrades of the initially rated 'AAA' notes to 'AA+' for TDA CAM 7, and to 'AA' for TDA CAM 8 and 9. Recoveries to date have been low in comparison to the cumulative defaults. According to the investor reports received, cumulative recoveries on defaulted loans range from 0.16% (TDA CAM 5) to 0.67% (TDA CAM 6) of the original portfolio balance. Fitch's expected recovery time for Spain is 36 months following default, which in the case of the more recent transactions, TDA CAM 7 to 9, is unlikely to occur in the upcoming months. In recent months, the more seasoned transactions of TDA CAM 5 and 6, have seen increasing volumes of defaults provisioned (February 2009: EUR2.1 million and EUR1.7 million, respectively), compared to levels seen twelve months ago (average defaults in 2008, as calculated by Fitch: EUR0.8 million and EUR1.3 million, respectively). The agency's concern about the loans which are expected to default in the forthcoming periods in these two transactions is reflected in the rating actions taken on the initially rated 'AAA' notes, with respect to the Outlooks being revised to Negative from Stable. Fitch's rating actions also reflect the agency's concern about the quality of the underlying portfolios, originated by Caja de Ahorros del Mediterraneo (CAM, rated 'A-'(A minus)/Stable/'F2'). Specifically, the pools contain a relatively high percentage of loans on second homes, loans to non-Spanish residents, and a heavy concentration of loans made to self-employed borrowers. Fitch considers these categories to be highly risky, particularly in the current challenging market. In addition, the volumes of loans that have been provisioned to date indicate that the lender has a large volume of properties that are yet to be sold. This is a general trend seen across most Spanish RMBS transactions. CAM, like most other Spanish lenders, is faced with the challenge of selling these properties at prices that will cover the outstanding balances of the defaulted loans, including any costs of carry attached. Fitch believes this is a concern, especially because the agency's expected house price declines for Spain from peak are between 25% and 30%, and that any delay in the sale of properties could lead to higher losses on the transactions. The latest investor reports show current loan-to-value ratios in January 2009 stood between 63.9% (TDA CAM 8) and 69.7% (TDA CAM 7). Fitch considers these to be lower than those seen in other Spanish RMBS transactions rated by Fitch. The agency sees this as a positive indicator of expected recoveries. However, the timing and magnitude of the realization of recoveries are key for the future performance of these deals and will play a crucial role in any future rating actions. The rating actions are: TDA CAM 5, Fondo de Titulizacion de Activos: -- Class A (ISIN ES0377992005) affirmed at 'AAA'; Outlook revised to Negative from Stable -- Class B (ISIN ES0377992013) downgraded to 'A-' (A minus) from 'A'; Outlook revised to Negative from Stable TDA CAM 6, Fondo de Titulizacion de Activos: -- Class A1 (ISIN ES0377993003) affirmed at 'AAA'; Outlook revised to Negative from Stable -- Class A2 (ISIN ES0377993011) affirmed at 'AAA'; Outlook revised to Negative from Stable -- Class A3 (ISIN ES0377993029) affirmed at 'AAA'; Outlook revised to Negative from Stable -- Class B (ISIN ES0377993037) downgraded to 'BBB' from 'A-' (A minus); Outlook Negative TDA CAM 7, Fondo de Titulizacion de Activos: -- Class A1 (ISIN ES0377994001) downgraded to 'AA+' from 'AAA'; Outlook revised to Negative from Stable -- Class A2 (ISIN ES0377994019) downgraded to 'AA+' from 'AAA'; Outlook revised to Negative from Stable -- Class A3 (ISIN ES0377994027) downgraded to 'AA+' from 'AAA'; Outlook revised to Negative from Stable -- Class B (ISIN ES0377994035) downgraded to 'BB+' from 'A-' (A minus); Outlook Negative TDA CAM 8, Fondo de Titulizacion de Activos: -- Class A (ISIN ES0377966009) downgraded to 'AA' from 'AAA'; Outlook revised to Negative from Stable -- Class B (ISIN ES0377966017) downgraded to 'BBB' from 'A'; Outlook Negative -- Class C (ISIN ES0377966025) downgraded to 'B' from 'BBB-' (BBB minus); Outlook Negative -- Class D (ISIN ES0377966033) affirmed at 'CC'; assigned a Recovery Rating of 'RR5' TDA CAM 9, Fondo de Titulizacion de Activos: -- Class A1 (ISIN ES0377955002) downgraded to 'AA' from 'AAA'; Outlook revised to Negative from Stable -- Class A2 (ISIN ES0377955010) downgraded to 'AA' from 'AAA'; Outlook revised to Negative from Stable -- Class A3 (ISIN ES0377955028) downgraded to 'AA' from 'AAA'; Outlook revised to Negative from Stable -- Class B (ISIN ES0377955036) downgraded to 'BBB' from 'A'; Outlook Negative -- Class C (ISIN ES0377955044) downgraded to 'B' from 'BBB-' (BBB minus); Outlook Negative -- Class D (ISIN ES0377955051) downgraded to 'CC' from 'CCC'; assigned a Recovery Rating of 'RR5' Fitch will continue to monitor the performance of these transactions, and may take further rating actions as deemed necessary. =========== S W E D E N =========== FORD MOTOR: Peter Horbury to Return to Volvo as Design VP --------------------------------------------------------- Kerry E. Grace at The Wall Street Journal reports that Ford Motor Co. said that Peter Horbury will return to the Company's Volvo unit as vice president of design from effective May 1. According to WSJ, Mr. Horbury will succeed Stephen Mattin, who left Volvo to pursue other opportunities. WSJ relates that Moray Callum, currently director of design for cars at Ford Americas, will take Mr. Horbury's place as executive director of Ford Americas design. Mr. Horbury was one of the people behind the new Lincoln designs and before that was behind some of the most successful Volvo designs, WSJ says, citing Ford Motor executive J Mays. According to the report, Mr. Horbury was appointed Volvo's design director in 1991. In 2002, Mr. Horbury became executive director for the Jaguar, Land Rover, Volvo, and Aston Martin design studios, the report states. Mr. Horbury joined Ford Americas in 2004, the report says. WSJ reports that Mr. Callum will be responsible for all Ford cars and trucks designed in the Americas, and will guide the design of Lincoln and Mercury products. Ford Motor has held preliminary talks with several parties interested in acquiring Volvo, WSJ relates. Ford Motor Settles Patent Disputes With LKQ Corporation A settlement agreement has been reached between Ford Motor and LKQ Corporation in litigation filed by Ford Motor to protect its design patents on genuine Ford Motor collision parts. The settlement provides that LKQ will not challenge the validity and enforceability of Ford Motor's design patents during the term of the agreement. The settlement ends two legal actions: -- the first involving replacement collision parts for Ford's F-150 pickup truck, which had advanced to the Federal Circuit Court of Appeals; and -- the second involving replacement collision parts for the Ford Mustang, which was before the US International Trade Commission. Details about the agreement are confidential and will not be disclosed. "The settlement protects U.S. jobs and provides consumers with choices when repairing their vehicle," said Darryl Hazel, president, Ford Customer Service Division (FCSD). Mr. Hazel added that the settlement will benefit both companies and their customers in these ways: -- Ford Motor's enormous Intellectual Property investment is protected. -- Ford Motor will continue its U.S. investment, especially in Southeast Michigan, to design, engineer and produce genuine Ford Motor collision parts for sale through its U.S. dealer network. -- LKQ will be the only distributor of non-Original Equipment aftermarket copies of genuine Ford Motor collision parts protected by design patents. LKQ will pay Ford Motor a royalty for each such part sold during the agreement's term, which extends through September 30, 2011, subject to renewal upon mutual agreement of Ford Motor and LKQ. -- Competition in the market will continue by ensuring consumers have the right to choose between Original Equipment and non-OE aftermarket parts. -- Ford Motor and LKQ will work together to stop infringement of Ford Motor's design patents. Mr. Hazel stressed that the settlement does not endorse the quality or use of non-Original Equipment aftermarket replacement parts sold by LKQ Corporation. FCSD and LKQ will continue to compete vigorously. "The agreement we reached is beneficial to both Ford and LKQ," said Joseph Holsten, President and Chief Executive Officer of LKQ. "As the sole distributor of new non-Original Equipment aftermarket parts protected by Ford design patents, we will have the sole right to sell these parts in the United States for all of Ford's models." About Ford Motor Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The Company has operations in Japan in the Asia Pacific region. In Europe, the Company maintains a presence in Sweden, and the United Kingdom. The Company also distributes its brands in various Latin-American regions, including Argentina and Brazil. * * * As reported by the Troubled Company Reporter on March 6, 2009, Standard & Poor's Ratings Services said it lowered its corporate credit rating on Ford Motor Co. to 'CC' from 'CCC+'. S&P also lowered the issue-level ratings on the company's senior secured term loan, senior unsecured debt, and subordinated debt, while leaving the issue-level rating on Ford's senior secured revolving credit facility unchanged. In addition, the counterparty credit ratings and issue-level ratings on Ford Motor Credit Co. (Ford Credit) and FCE Bank PLC remain unchanged. The outlooks on Ford and Ford Credit are negative. Moody's Investors Service in December 2008 lowered the Corporate Family Rating and Probability of Default Rating of Ford Motor Company to Caa3 from Caa1 and lowered the company's Speculative Grade Liquidity rating to SGL-4 from SGL-3. The outlook is negative. The downgrade reflects the increased risk that Ford will have to undertake some form of balance sheet restructuring in order to achieve the same UAW concessions that General Motors and Chrysler are likely to achieve as a result of the recently- approved government bailout loans. Such a balance sheet restructuring would likely entail a loss for bond holders and would be viewed by Moody's as a distressed exchange and consequently treated as a default for analytic purposes. ===================== S W I T Z E R L A N D ===================== JORDAN MOTORS: Creditors Must File Proofs of Claim by April 6 ------------------------------------------------------------- Creditors owed money by LLC Jordan Motors are requested to file their proofs of claim by April 6, 2009, to: Thierry Defrance DKM Althau 1 5303 Wurenlingen Switzerland The company is currently undergoing liquidation in Wurenlingen. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Nov. 28, 2008. HOTEL CAPRICE: Deadline to File Proofs of Claim Set April 9 ----------------------------------------------------------- Creditors owed money by JSC Hotel Caprice Davos are requested to file their proofs of claim by April 9, 2009, to: Fredy Jorns Restelbergstrasse 7 8044 Zurich Switzerland The company is currently undergoing liquidation in Davos. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Jan. 5, 2009. LA FE: Creditors Have Until April 8 to File Claims -------------------------------------------------- Creditors owed money by LLC La Fe are requested to file their proofs of claim by April 8, 2009, to: Filomena M. La Cioppa Bruggwisstrasse 6 8154 Oberglatt Switzerland The company is currently undergoing liquidation in Oberglatt. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on April 20, 2007. MULLER & PANTHER: Proof of Claim Filing Deadline is April 9 ----------------------------------------------------------- Creditors owed money by LLC Muller & Panther are requested to file their proofs of claim by April 9, 2009, to: Badenerstrasse 9 PF 489 5200 Brugg Switzerland The company is currently undergoing liquidation in Brugg. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 4, 2008. QUASO LLC: Creditors' Proofs of Claim Due by April 8 ---------------------------------------------------- Creditors owed money by LLC Quaso are requested to file their proofs of claim by April 8, 2009, to: Heinrich Drexler and Ulrike Drexler Gyrisbergstrasse 140 3400 Burgdorf Switzerland The company is currently undergoing liquidation in Kirchberg. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Feb. 6, 2009. RUBY'S BOUTIQUE: April 8 Set as Deadline to File Claims ------------------------------------------------------- Creditors owed money by LLC Ruby's Boutique are requested to file their proofs of claim by April 8, 2009, to: Rubiela Mesa Franco Glattalstrasse 91 8052 Zurich Switzerland The company is currently undergoing liquidation in ohne Domizil. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on April 13, 2004. SAKURA LLC: Creditors Must File Proofs of Claim by April 6 ---------------------------------------------------------- Creditors owed money by LLC Sakura are requested to file their proofs of claim by April 6, 2009, to: JSC Seewer Treuhand Hans-Peter Meier Bernstrasse 18 2555 Brugg Switzerland The company is currently undergoing liquidation in Nidau. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Feb. 5, 2009. SCHATTIGCENTER LLC: Deadline to File Proofs of Claim Set April 6 ---------------------------------------------------------------- Creditors owed money by LLC Schattigcenter are requested to file their proofs of claim by April 6, 2009, to: Alois Puntener-Dittli Stampfig 28 6468 Attinghausen Switzerland The company is currently undergoing liquidation in Erstfeld. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Feb. 28, 2009. STATION CUT: Creditors Have Until April 8 to File Claims -------------------------------------------------------- Creditors owed money by LLC Station Cut are requested to file their proofs of claim by April 8, 2009, to: Zago Ezio JSC Zago Treuhand Glarnerstrasse 56 8854 Siebnen Switzerland The company is currently undergoing liquidation in Esslingen ZH. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Jan. 21, 2009. TARNUTZER & PARTNER: Proof of Claim Filing Deadline is April 14 --------------------------------------------------------------- Creditors owed money by JSC Tarnutzer & Partner Asset Management are requested to file their proofs of claim by April 14, 2009, to: Mauerhofer Therese Neumattstrasse 19 4543 Deitingen Switzerland The company is currently undergoing liquidation in Bellikon. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Feb. 16, 2009. =========== T U R K E Y =========== EREGLI DEMIR: Moody's Downgrades Corporate Family Rating to 'B2' ---------------------------------------------------------------- Moody's has downgraded Erdemir's corporate family and probability of default ratings to B2 from Ba3, the outlook was changed from negative to stable. The national scale rating was downgraded from Baa1.tr to Baa3.tr. The rating action has been prompted by the significant downturn in the steel industry, which has affected Erdemir's leverage ratios, profitability and short term liquidity situation. The stable outlook reflects Moody's expectation that Erdemir in the current year will be able to generate positive free cash flow despite the weak economic environment, and that over time the gross adjusted debt/EBITDA ratio will improve to a level of around 3.5x (per 12/2008: 5.6x on US$basis, 6.6x on Turkish Lira basis). It also assumes that Oyak, Erdemir's majority owner, will continue to provide liquidity support to Erdemir if it becomes necessary. With the sudden downturn of the steel industry in autumn 2008, Erdemir was hit in the 4th quarter 2008, reporting operating losses and write downs in its inventory valuation. Despite the writedowns the inventory level went up per end of 2007 to end of 2008 by 35% from around US$1.2 billion to around US$1.7 billion and hence caused a surge in net debt from US$1.6 billion in 2007 to US$2.5 billion in 2008. Given the current weakness in the steel industry in general, Moody's does not expect a recovery in profitability for Erdemir, and only a limited ability to reduce inflated debt levels, predominantly via a reduction in inventory levels. The rating action of Moody's also takes into account the weak short-term liquidity situation of Erdemir. Around 50% of Erdemir's total indebtedness consists of short term, and to a large extent uncommitted, credit lines putting the company at a high risk of a liquidity shortfall should its banks stop providing liquidity to the company. This risk is to some extent offset by the fact, that the facilities which had to be rolled over in the first two months 2009 have already been extended by Erdemir's banks and the ongoing support of Erdemir's majority shareholder Oyak, which continues to provide liquidity to the company. Moody's still believes that Erdemir, as the major steel producer in Turkey, is well positioned to take advantage from any uptick in demand which may occur during the second half of 2009 given the company's low and improved cost base and flexibility in the production of different steel grades. Erdemir has now terminated its organic capital expansion programme which should help reducing the cost base and produce more different grades of steel. The rating could come under further pressure should Erdemir be unable to generate positive free cash flow in the current year, to some extent stemming from the release of net working capital, the cut in dividends and reduction in capital expenditure, and if it becomes visible towards the end of the year that the company's debt/EBITDA figure will not improve towards a 3.5x threshold. Moody's last rating action on Erdemir was the change in outlook to negative from stable on 01 December 2008. Eregli Demir ve Celik Fabrikalari is the largest steel manufacturer in Turkey. It operates two major integrated steel plants in Turkey in Eregli and Iskenderun. The company is majority owned by Ordu Yardimlasma Kurumu, the Turkish private pension fund primarily serving members of Turkish Armed Forces (rated Ba2). Erdemir generated revenues of around US$5.2 billion in the financial year 2008. Downgrades: Issuer: Erdemir -- Probability of Default Rating, Downgraded to B2 from Ba3 -- Corporate Family Rating, Downgraded to a range of B2 to Baa3.tr from a range of Ba3 to Baa1.tr Outlook Actions: Issuer: Erdemir -- Outlook, Changed to Stable From Negative ============= U K R A I N E ============= BOBRINETS MOTORCAR: Creditors Must File Claims by April 12 ---------------------------------------------------------- Creditors of OJSC Bobrinets Motorcar Enterprise 13537 (EDRPOU 03117458) have until April 12, 2009 to submit proofs of claim to: M. Korolchuk Insolvency Manager Office 215 Ordzhonikidze St. 2 25002 Kirovograd Ukraine The Economic Court of Kirovograd commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No 11/182. The Court is located at: The Economic Court of Kirovograd Lunacharsky St. 22 25002 Kirovograd Ukraine The Debtor can be reached at: OJSC Bobrinets Motorcar Enterprise 13537 Promyshlennaya St. 3 Bobrinets 27200 Kirovograd Ukraine CENTROGROUP INFO: Creditors Must File Claims by April 13 -------------------------------------------------------- Creditors of LLC Centrogroup Info (EDRPOU 34191129) have until April 13, 2009 to submit proofs of claim to: S. Benediuk Insolvency Manager Post Office Box 157 03110 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No 15/110-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy Street 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Centrogroup Info Oranzhereynaya St. 3 04112 Kiev Ukraine LUGANSK MACHINE-TOOL: Creditors Must File Claims by April 12 ------------------------------------------------------------ Creditors of Production Enterprise Lugansk Machine-Tool Plant State Enterprise (EDRPOU 14311005) have until April 12, 2009 to submit proofs of claim to: A. Viskunov Insolvency Manager Heroes of Stalingrad quarter 6/211 91006 Lugansk Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No 12/130-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy Street 44-b 01030 Kiev Ukraine The Debtor can be reached at: Production Enterprise Lugansk Machine-Tool Plant State Enterprise Pochtovaya St. 1 91055 Lugansk Ukraine MAZURKEVICH AGRICULTURAL: Creditors Must File Claims by April 12 ---------------------------------------------------------------- Creditors of V. Mazurkevich Agricultural LLC (EDRPOU 01052832) have until April 12, 2009 to submit proofs of claim to: V. Sushkov Insolvency Manager Office 29 Ofitserskaya St. 12 Zhitomir Ukraine The Economic Court of Zhitomir commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No 4/15-B. The Court is located at: The Economic Court of Zhitomir Putiatinsky Square 3/65 10002 Zhitomir Ukraine The Debtor can be reached at: V. Mazurkevich Agricultural Llc Mazurkevich St. 35 Galeyevka Chudnov 13251 Zhitomir Ukraine SPECTOR LLC: Creditors Must File Claims by April 13 --------------------------------------------------- Creditors of LLC SPECTOR (EDRPOU 32659297) have until April 13, 2009 to submit proofs of claim to: S. Benediuk Insolvency Manager Post Office Box 157 03110 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No 15/108-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy Street 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Spector 40 Years of October St. 100/2 03127 Kiev Ukraine UKRINFO-STAR LLC: Creditors Must File Claims by April 13 -------------------------------------------------------- Creditors of LLC Ukrinfo-Star (EDRPOU 34771805) have until April 13, 2009 to submit proofs of claim to: S. Benediuk Insolvency Manager Post Office Box 157 03110 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No 15/109-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy Street 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Ukrinfo-Star Kurskaya St. 10 03049 Kiev Ukraine =========================== U N I T E D K I N G D O M =========================== ANTHRACITE EURO: Fitch Junks Ratings on Three Classes of Notes -------------------------------------------------------------- Fitch Ratings has downgraded the five classes of Anthracite Euro CRE CDO 2006-1 P.L.C.'s notes. The agency has simultaneously removed the five classes from Rating Watch Negative, and assigned rating Outlooks and Recovery Ratings: -- EUR142.5 million class A floating-rate notes due 2042 (ISIN XS0276697272): downgraded to 'B+' from 'AAA'; removed from RWN; assigned a Negative Outlook -- EUR29 million class B floating-rate notes due 2042 (ISIN XS0276697512): downgraded to 'B' from 'AA+'; removed from RWN; assigned a Negative Outlook -- EUR48.5 million class C deferrable floating-rate notes due 2042 (ISIN XS0276698163): downgraded to 'CCC' from 'A+'; removed from RWN; assigned a Recovery Rating of 'RR4' -- EUR31 million class D deferrable floating-rate notes due 2042 (ISIN XS0276698833): downgraded to 'CC' from 'BBB'; removed from RWN; assigned a Recovery Rating of 'RR6' -- EUR25 million class E deferrable floating-rate notes due 2042 (ISIN XS0276699302): downgraded to 'C' from 'BB'; removed from RWN; assigned a Recovery Rating of 'RR6' 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 significant credit deterioration to the collateral pool since the transaction's close. The application of the new SF CDO rating criteria incorporates Fitch's view on industry and vintage concentration risks and the propensity for low recoveries upon default, particularly for thin tranches. As per the trustee report dated February 4, 2009, the portfolio contained 43 performing assets from 37 obligors. The largest exposure accounts for approximately 9.6% of the outstanding portfolio amount, and the three largest obligors accounts for a total of 25.5%. According to Fitch classifications, the largest single industry is B-notes and C-notes with 55.7% of the portfolio notional, followed by CMBS assets with 31%. The largest vintage is 2006 with a concentration of 93%, while the two largest country concentrations are Germany and the United Kingdom making up 62% and 25% of the portfolio respectively. The downgrades of the CDO notes are largely driven by underlying negative rating migration within the portfolio. Over half of the portfolio has been downgraded since the February trustee report. Assets rated 'CC' and below now account for 13% of the portfolio balance, and assets rated 'CCC' and below account for 42% of the portfolio balance. The underlying downgrades impact the transaction in two ways. First, it reflects a significant increase in portfolio default risk. Second, all overcollateralization tests will likely breach causing interest proceeds to be diverted away from the junior notes to redeem the senior class. Whilst all OC tests are currently passing, Fitch expects all OC tests to soon breach their required thresholds. Given the recent negative rating migration, a higher percentage of assets will be subjected to significant adjustments in the OC calculation. Fitch has assigned Recovery Ratings of 'RR6' to the junior classes to reflect the expectation that these tranches will be cut off from interest payments and suffer low recoveries upon potential default. The transaction is a managed securitization of structured finance assets, primarily commercial mortgage-backed securities and subordinate real estate debt. The portfolio is managed by BlackRock Financial Management Inc. CARLISLE CASTLE: S&P Assigns 'BB' Rating on Class D Notes --------------------------------------------------------- Standard & Poor's Ratings Services assigned its credit ratings to the asset-backed floating-rate notes series 2009-A issued by Carlisle Castle Funding Group Ltd. This issuance is a private placement and is serviced by Capital One Bank (Europe) PLC. As in previous transactions, the collateral comprises U.K.-originated Visa, MasterCard, and American Express credit card receivables generated on accounts owned by COBE. The last public transaction, Sherwood Castle Funding Series 2006-1 PLC, was completed in October 2006. The capital structure differs from previous issuances as it comprises five tranches, with a subordinated unrated class E tranche. The Class E tranche is structured so that it does not provide direct credit enhancement to the class B, C, and D Notes. S&P has reviewed the structural impact of this mechanism and have sized for it accordingly. The class D notes have an upfront reserve of 1% at closing, in addition to a standard excess spread trapping mechanism. Charge-offs in the credit card industry have steadily risen over the past year, which can partly be attributed to the rise in U.K. bankruptcies and individual voluntary arrangements seen in H2 2008. The yield on the trust has remained stable over the past year and S&P expects it to do so in the medium term. However, the decreasing Bank of England base rate and regulatory pressures may cause downward pressure on yield in the current environment. The trust has experienced a decreasing payment rate, which is in line with a decline across the credit card industry over the past few months. This decline, as for the charge-offs, reflects a rise in unemployment and decline in general consumer affordability. As the recession deepens in the coming months negative pressures will continue to affect the trust performance. The structure for this series 2009-A issuance meets S&P's current stress levels. Ratings List Carlisle Castle Funding Ltd. GBP592.2 Million Asset-Backed Floating-Rate Loan Notes Series 2009-A Class Rating Amount (Mil.GBP) ----- ------ ---------------- A AAA 450.0 B A 44.4 C BBB 29.6 D BB 59.2 E NR 9.0 NR � Not rated. CATTLES PLC: Claims Against Subsidiaries May Be Subordinated ------------------------------------------------------------ Cattles plc in a March 31 press statement said that claims of the company against its principal subsidiaries under intra-group loans may be subordinated to the claims of certain bank creditors against those subsidiaries. This is the potential effect of terms contained within cross-guarantee documentation entered into by the company, the company said. As has been reported, Cattles's bank creditors and the holders of its private placement notes hold guarantees from the company's subsidiaries. More specifically, the banks' guarantees include guarantees from the group's principal trading companies; and the guarantees provided to holders of private placement notes include a guarantee from the group's principal trading company, Welcome Financial Services Limited. According to Cattles, if the relevant provisions in the cross- guarantee documentation do indeed have the effect of subordinating claims, the company will be prevented from making claims against the relevant trading company subsidiaries in order to recover loans made by it to those subsidiaries, until the claims of the relevant bank creditors against those subsidiaries and against the company have been satisfied in full. Cattles said in light of the group's current position, the group is implementing a cash management policy that involves leaving cash received from group activities with the legal entities in which it is generated. The company is considering the legal effect of the relevant cross- guarantee documentation and will update the market with further developments in due course. About Cattles plc Cattles plc -- http://www.cattles.co.uk/-- provides financial services to consumers and businesses. The company has three principal businesses, these being Welcome Financial Services, The Lewis Group and Cattles Invoice Finance. * * * As reported in the Troubled Company Reporter-Europe Feb. 24, 2009, Fitch Ratings downgraded Cattles PLC's Long-term Issuer Default Rating to 'B' from 'B+' and downgraded its senior unsecured debt to 'B' from 'BB-' (BB minus). Both ratings remain on Rating Watch Negative. CATTLES PLC: May Make GBP700 Mln Additional Impairment Provisions ----------------------------------------------------------------- Cattles plc has provided an update on its impairment provision review. On February 20, 2009, the Board of Cattles announced that it would delay the release of its preliminary results announcement for the year ended December 31, 2008 pending completion of a review of the adequacy of the Group's impairment provisions. Since then, an independent review commissioned by the Audit Committee, with the assistance of Freshfields Bruckhaus Deringer LLP, Cattles' legal advisers, and Deloitte LLP have confirmed the Board's belief that there has been a breakdown of internal controls which has resulted in the Group's impairment policies being applied incorrectly. Consequently, the Board reported on March 10, 2009 that, based on information received to that date and subject to completion of its external audit, it believed that the Group incurred a significant loss before tax for the year ended December 31, 2008, and that it will be necessary to restate the Group's financial statements for the year ended December 31, 2007. Cattle said the review continues to make significant progress. The Board has now received a draft report from Deloitte setting out an estimate of the potential additional levels of impairment provisions likely to be required. The Group's external auditors have commenced their review of that report. Potential Additional Impairment Provisions According to Cattles, the Deloitte report estimates that the Group will need to make a provision of around GBP700 million in excess of that originally anticipated with respect to the value of customer loans held as at December 31, 2008. As reported in its most recent interim statement, Cattles' gross receivables were GBP3.6 billion and impairment provisions were GBP0.4 billion as at June 30, 2008. The potential additional impairment provision represents the aggregate amount that would be needed in respect of impairment in the years ended December 31, 2008 and 2007 and, potentially, earlier years. The amount of this provision that should be reflected in the profit and loss account for the year ended December 31, 2008 versus earlier years remains to be determined. However, the Board continues to believe that such a provision will result in the Group reporting a significant loss before tax for the year ended December 31, 2008 and in the requirement to restate the Group's financial statements for the year ended December 31, 2007. It is possible that such a restatement of the 2007 financial statements could result in a significant reduction in previously reported profit before tax for that year. The impact on the Group's financial statements for earlier years is still being considered. Incurred But Not Reported ("IBNR") Impairment Provision The Board is also considering whether to include an additional IBNR provision consistent with accounting standard IAS39. Based on work carried out to date, the Board believes that the adoption of such a policy would result in an IBNR impairment provision of approximately GBP150 million with respect to the value of customer loans held as at December 31, 2008. Background to the Underprovisioning As previously announced, an independent forensic investigation, led by Freshfields Bruckhaus Deringer LLP with support from Deloitte, is continuing to examine how and why the underprovisioning happened. Six senior executives of the Group, including two directors of Cattles, remain suspended pending the final outcome of the investigation. Cattles said in these circumstances, the Board is not yet in a position to provide a definitive explanation for the breakdown in internal controls which resulted in the Group's impairment policies being applied incorrectly. However, in order for the breakdown in internal controls to have occurred, and for the extent of underprovisioning to have remained unrecognized (despite specific and repeated questioning by members of the Board as part of its monitoring of the Group's credit risk position) the Board believes that the Board as a whole received inaccurate and/or incomplete information. Current Position The Board also reported on March 10, 2009 that it believed Cattles was in breach of covenants under its borrowing arrangements. Cattles continues in discussions with its banks and the holders of its outstanding Eurobonds and US Private Placement Notes. Cattles said the management's focus is now on working closely with its debt providers to sustain their support for the Group's program of action to stabilise its financial position. The core actions include: the appointment of new management from both inside and outside Cattles to key roles; the consideration of selected disposals of businesses and assets; a controlled process of debt recovery and cash collection; and the simplification of the Group's operating model to reduce costs. The Group has continued to make good progress with collections and has generated net cash receipts in the first three months of 2009. As regards new management, Cattles said that the Board has resolved to appoint Jamie Smith to the Board of Cattles plc as interim Finance Director with immediate effect, subject to the approval of the FSA. Mr. Smith was previously a restructuring partner with one of the big four accountants. Cattles said the review has made significant progress in identifying the potential extent of the impairment underprovisioning and this has cleared the way for the external auditors to continue their work with respect to the financial statements for the year ended December 31, 2008. However, it is not expected that this work will be completed until the outcome of discussions with Cattles' debt providers is clearer. A further announcement will be made when appropriate. About Cattles plc Cattles plc -- http://www.cattles.co.uk/-- provides financial services to consumers and businesses. The company has three principal businesses, these being Welcome Financial Services, The Lewis Group and Cattles Invoice Finance. * * * As reported in the Troubled Company Reporter-Europe Feb. 24, 2009, Fitch Ratings downgraded Cattles PLC's Long-term Issuer Default Rating to 'B' from 'B+' and downgraded its senior unsecured debt to 'B' from 'BB-' (BB minus). Both ratings remain on Rating Watch Negative. COMMERCECOINZ LTD: Creditors Have Until April 9 to Submit Claims ---------------------------------------------------------------- Commercecoinz Limited and European Intertrade Limited went into voluntary liquidation. David J. Holl of Holl, Cameron and Co Ltd. was appointed liquidator of the companies. Creditors have until April 9, 2009 to submit their claims to the liquidator. The liquidator can be reached at: David J. Holl Holl, Cameron and Co Ltd Ground Floor Beresford House Bellozanne Road St Helier Jersey JE23JW Channel Islands CORNERSTONE TITAN: Fitch Junks Rating on GBP10.3 Mln Class G Notes ------------------------------------------------------------------ Fitch Ratings has taken various rating actions on Cornerstone Titan 2005-2 commercial mortgage-backed notes, due October 2014. The ratings are: -- GBP14.2 million class D (XS0237331029) affirmed at 'AAA'; Outlook Stable -- GBP23.7 million class E (XS0237331375) affirmed at 'A'; Outlook revised to Stable from Negative -- GBP10.1 million class F (XS0237331615) downgraded to 'BB' from 'BB+'; Outlook Negative -- GBP10.3 million class G (XS0237330302) downgraded to 'CC' from 'BB-' (BB minus); assigned a 'RR5' Recovery Rating The prepayment of four loans has resulted in an increase in credit enhancement to the class E (34.9% compared to 6.4% at closing), driving Fitch's revised outlook on that class. Despite this, Fitch believes that deteriorating property market conditions have weakened the creditworthiness of some of the outstanding loans in this transaction, especially those secured by non-prime assets. This is reflected in the weighted average Fitch LTV of 105%, implying a WA market value decline of 24.2% since closing. The Bradford retail loan (13.9% of the loan pool) is secured on a high street retail property in Bradford town centre. The tenancy profile of this loan has changed since closing; in March 2008, HMV (which previously represented 19% of total rent) paid a premium to surrender its lease. The loan has been placed on the servicer's watchlist following Zavvi Retail Ltd's (29.5% of contracted rental income) entry into administration in December 2008. The loan's interest coverage ratio fell to 0.74x, compared to 1.12x at closing and is in a breach of the covenant. However, no payment default occurred as the loan was topped up from the reserve account. The servicer's recent negotiations with the borrower have resulted in sufficient funds being provided in a reserve account to top-up the current rental income to cover interest on the loan until maturity (July 2010). The Zavvi unit is prominent in a core central pitch and is of a size that could prove attractive to other retailers. However, the slowdown in economic activity and consequent reduction in demand for new space from retail operators means that the Zavvi unit may not produce income for an extended period. This loan has already been negatively affected by the significant widening in yields for secondary retail assets. Its future performance will be determined by the borrower's ability to replace the lost rental income, so preventing a further decline in the property's capital value. Fitch estimates a current LTV of 121.6% compared to a reported LTV of 81%, suggesting a sizeable MVD of 34.4% since closing. The West Midlands office loan (48.9% of the loan pool) is secured by a single office property located in Solihull, on the outskirts of Birmingham. The property is let to the Paragon Group with an unexpired lease term of 10 years. The loan performance remains broadly unchanged since closing, with a modest improvement in ICR to 1.3x from 1.27x. While the loan is amortizing throughout its term, this has only modestly offset the MVD of 35% that Fitch estimates has occurred since closing. The current Fitch LTV stands at 122% compared to the reported LTV of 79.3% and, assuming there are no further declines in value, this is scheduled to fall to 76% by loan maturity in October 2012. The Trafalgar House Portfolio (37.2% of the loan pool) loan is backed by three office properties located in central London following a disposal of one asset in 2007. The majority of the leases (64.5% by passing rent) are scheduled to expire in 2013, offering little certain income following loan maturity in January 2012. Overall, loan performance has improved since closing with an increase in occupancy levels to 99.5% from 96% and an improvement in ICR to 2x from 1.6x. Despite the ongoing volatility in the London office market, Fitch considers the reported value of these assets remains approximately appropriate due to the increases in rental income since closing. This, combined with scheduled amortization over the loan term, results in a current Fitch LTV of 76.4%. Fitch will continue to monitor the performance of the transaction. DSL REALISATIONS: Appoints Joint Liquidators from BDO ----------------------------------------------------- William John Turner and Geoffrey Stuart Kinlan of BDO Stoy Hayward LLP were appointed joint liquidators of DSL Realisations Ltd. on March 6, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through BDO Stoy Hayward LLP at: Prospect Place 85 Great North Road Hatfield Hertfordshire AL9 5BS England ELITE TILES: Appoints Joint Administrators from Smith & Williamson ------------------------------------------------------------------ Stephen Robert Cork, Anthony Cliff Spicer and Joanne Elizabeth Milner of Smith & Williamson Limited were appointed joint administrators of Elite Tiles UK Ltd. on March 20, 2009. The company can be reached through Smith & Williamson Limited at: 25 Moorgate London EC2R 6AY England ENSOR HOLDINGS: Puts Hawkins-Salmon Into Administration ------------------------------------------------------- Ensor Holdings plc has decided to place its subsidiary, Hawkins- Salmon Limited, into administration due to a further deterioration in the market for timber and fencing products. Paul Stanley and Jason Greenhalgh of Begbies Traynor have been appointed joint administrators of Hawkins-Salmon. The proceedings do not affect the Group's other trading subsidiaries which continue to trade normally. On December 12, 2008 the Group announced in its interim results statement that the recent poor performance at Hawkins-Salmon was being addressed but since then trading has worsened. Simon Binns of Crain's Manchester Business relates in December, Ensor chairman Ken Harrison said Hawkins-Salmon was the group's only unprofitable company but its problems had "turned the group result from a respectable profit into a small loss". Ensor, as cited by Crain's, said the subsidiary partly relocated from Northamptonshire to Cheshire and the move, "combined with management difficulties and the current economic climate, led to a significant loss". The Group's results for the year ending March 31, 2009, excluding Hawkins-Salmon, are expected to be satisfactory considering the current difficult economic climate. Headquartered in Manchester, United Kingdom, Ensor Holdings PLC -- http://www.ensor.co.uk/-- is primarily engaged in the manufacture, supply and distribution of building materials and tools, fencing products and rubber buffing, the distribution of electric motors and access control automation equipment, distribution of packaging and waste recycling. The Company operates in two segments: building products, which is engaged in the manufacture, marketing and distribution of materials, tools, components and access automation equipment to the construction industry; and packaging, which is engaged in the marketing and distribution of packaging materials, and its others segment includes rubber crumb manufacture, distribution of electric motors and waste recycling. Some of its subsidiaries include CMS Tools Limited, Ellard Limited, Ensor Building Products Limited, Hawkins- Salmon Limited, Hawkins-Salmon Limited, Wood's Packaging Limited and SRC Limited. ENTERTAINMENT RIGHTS: In Administration; Trading Subsidiaries Sold ------------------------------------------------------------------ Nick Edwards and Carlton Siddle of Deloitte, the business advisory firm, were appointed Joint Administrators to Entertainment Rights plc on Wednesday, April 1, 2009. The trading subsidiaries were immediately sold to Boomerang Media, a company backed by the Chicago based private equity group GTCR and managed by Eric Ellenbogen and John Engelman. Entertainment Rights is a global children's and family entertainment specialist, including brands such as Postman Pat, Casper the Friendly Ghost, Rudolph the Red-Nosed Reindeer, Rupert Bear, and He-Man and the Masters of the Universe. The group, with offices in London, New York and Nashville employs approximately 90 employees across the UK and US, who will transfer to the new company. Nick Edwards, Deloitte partner and Joint Administrator, said: "The Board of Entertainment Rights has explored a broad range of strategic options over the past six months including the possibility of restructuring or refinancing the Company's debt, raising new equity and a sale of all or parts of the business. Despite the financial support of the Group's lender through this period, the Group has been unable to achieve a solvent restructuring of the Company. "The sale to Boomerang Media secures the ongoing activities of the group's trading subsidiaries, allowing the former businesses of Entertainment Rights to survive under new ownership. The new owners have indicated their intention to invest in the business to further develop its strong portfolio of intellectual property." Boomerang Media said the acquisition of the principal U.K. and U.S. trading subsidiaries of Entertainment Rights, including Entertainment Rights, Classic Media, Inc., and Big Idea, Inc., is the first major transaction for the group, who, with the backing of GTCR, plan to invest up to US$200 million in equity capital to build leading franchises for iconic, branded entertainment. "We're happy to be back again with our friends and former colleagues at Classic Media, Big Idea (VeggieTales) and now Entertainment Rights," said Eric Ellenbogen, co-CEO of Boomerang Media. "With the support of GTCR we have the opportunity to build upon what we started here nine years ago." "We are pleased to help Boomerang acquire a terrific worldwide platform for exploiting media content," said GTCR Vice President Eric Sondag. "We continue to see a number of intriguing investments in this area, and our partnership with Eric and John, an exceptionally talented and proven management team, puts us in a position to pursue attractive opportunities such as this one." On April 1, 2009, the Joint Administrators, on behalf of the Company, made an application to the UKLA and the London Stock Exchange to suspend the shares and cancel the listing of Entertainment Rights plc's shares on the London Stock Exchange. EUROPEAN INTERTRADE: Creditors Have Until April 9 to Submit Claims ------------------------------------------------------------------ European Intertrade Limited and Commercecoinz Limited went into voluntary liquidation. David J. Holl of Holl, Cameron and Co Ltd. was appointed liquidator of the companies. Creditors have until April 9, 2009 to submit their claims to the liquidator. The liquidator can be reached at: David J. Holl Holl, Cameron and Co Ltd Ground Floor Beresford House Bellozanne Road St Helier Jersey JE23JW Channel Islands LUPUS CAPITAL: Defaults on Debt Facility, In Talks with Lenders --------------------------------------------------------------- Lupus Capital plc on Wednesday, April 1, said it has decided against making the amortization payment on one of its debt facilities pending reaching agreement with its bankers on a revised amortization profile. Lupus said this resulted in a breach of that facility and triggered a default under the company's other debt facility, solely as a result of the cross default provisions. The company said it fully intends to meet its payment obligations on its other facility when it falls due at the start of April. In its pre-close trading statement on Feb. 27 Lupus said it is currently in discussions with its bankers in relation to renegotiating its debt facilities and associated banking covenants to more appropriate levels. Lupus said it had requested that the banks allow it to defer the payment, pending completion of the ongoing discussions. The deferral was requested to allow the company's operating businesses working capital flexibility. Unfortunately, the company was not able to reach agreement with the entire banking syndicate before the breach occurred. Lupus said discussions continue with the company's bankers. This is expected to be completed during April 2009. Headquartered in Londong, United Kingdom, Lupus Capital plc � http://www.lupuscapital.co.uk/-- is a holding company. The Company, along with its subsidiaries, is engaged in the manufacture, supply and distribution of building products, and of goods to the oil and gas industries. MARCONI CORPORATION: Scheme of Arrangement Meetings Set May 19 -------------------------------------------------------------- The Scheme Supervisors of Marconi Corporation plc ("Corp", now know at telent ltd) and Marconi plc, ("plc", now known as M(2003) plc), scheduled meetings for the purposes of laying before the meetings the Supervisors' report on the operation of the companies' schemes of arrangements since the previous report, dated April 7, 2008. The meetings are to be held concurrently at 11:00 a.m. on Tuesday, May 19, 2009, at the offices of KPMG LLP, 8 Salisbury Square, London, EC4Y 888, UK. Scheme Creditors of Corp and plc may attend in person and can obtain a copy of the relevant reports of the Scheme Supervisors from Richard Heis at KPMG LLP, 8 Salisbury Square, London, EC4Y 888, UK. Scheme Creditors may dial into the meeting using the following details: 0800 389 1688 UK or +44 (0) 20 7940 5765 International Pin Number 57843806#. On May 19, 2003, Corp and plc implemented separate schemes of arrangement pursuant to Section 425 of the Companies Act 1985. The Schemes compromised the claims of Scheme Creditors. A Scheme Creditor is any person who had a claim against Corp and/or plc as at March 27, 2003, and includes the definitive holders of the 2010 and 2030 Yankee bonds dated September 19, 2000, and the 2005 and 2010 Eurobonds dated March 30, 2000, which were issued by Corp and guaranteed by plc. The Schemes provide that meetings of Scheme Creditors are to be convened at least once every year. MARCONI PLC: Scheme of Arrangement Meetings Set May 19 ------------------------------------------------------ The Scheme Supervisors of Marconi Corporation plc ("Corp", now know at telent ltd) and Marconi plc, ("plc", now known as M(2003) plc, scheduled meetings for the purposes of laying before the meetings the Supervisors' report on the operation of the companies' schemes of arrangements since the previous report, dated April 7, 2008. The meetings are to be held concurrently at 11:00 a.m. on Tuesday, May 19, 2009, at the offices of KPMG LLP, 8 Salisbury Square, London, EC4Y 888, UK. Scheme Creditors of Corp and plc may attend in person and can obtain a copy of the relevant reports of the Scheme Supervisors from Richard Heis at KPMG LLP, 8 Salisbury Square, London, EC4Y 888, UK. Scheme Creditors may dial into the meeting using the following details: 0800 389 1688 UK or +44 (0) 20 7940 5765 International Pin Number 57843806#. On May 19, 2003, Corp and plc implemented separate schemes of arrangement pursuant to Section 425 of the Companies Act 1985. The Schemes compromised the claims of Scheme Creditors. A Scheme Creditor is any person who had a claim against Corp and/or plc as at March 27, 2003, and includes the definitive holders of the 2010 and 2030 Yankee bonds dated September 19, 2000, and the 2005 and 2010 Eurobonds dated March 30, 2000, which were issued by Corp and guaranteed by plc. The Schemes provide that meetings of Scheme Creditors are to be convened at least once every year. NORTH RIDING: Taps Joint Liquidators from Tenon Recovery -------------------------------------------------------- Jonathan Paul Philmore and Thomas Ernest Dixon of Tenon Recovery were appointed joint liquidators of North Riding Finance (Pool) Ltd. on Dec. 17, 2008, for the creditors' voluntary winding-up proceeding. The company can be reached through Tenon Recovery at: Unit 1 Calder Close Calder Park Wakefield WF4 3BA England ONE MARKET: Creditors Have Until April 9 to Submit Claims --------------------------------------------------------- One Market Place Limited, Payment Intertrade Limited and Secureteller Limited went into voluntary liquidation. David J. Holl of Holl, Cameron and Co Ltd. was appointed liquidator of the companies. Creditors have until April 9, 2009 to submit their claims to the liquidator. The liquidator can be reached at: David J. Holl Holl, Cameron and Co Ltd Ground Floor Beresford House Bellozanne Road St Helier Jersey JE23JW Channel Islands PAYMENT INTERTRADE: Creditors Have Until April 9 to Submit Claims ----------------------------------------------------------------- Payment Intertrade Limited, One Market Place Limited and Secureteller Limited went into voluntary liquidation. David J. Holl of Holl, Cameron and Co Ltd. was appointed liquidator of the companies. Creditors have until April 9, 2009 to submit their claims to the liquidator. The liquidator can be reached at: David J. Holl Holl, Cameron and Co Ltd Ground Floor Beresford House Bellozanne Road St Helier Jersey JE23JW Channel Islands S. BAKER BUILDING: Brings in Joint Liquidators from Tenon Recovery ------------------------------------------------------------------ John-Paul O'Hara and Dilip K. Dattani of Tenon Recovery were appointed joint liquidators of S. Baker Building & Scaffolding Ltd. on March 6, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached at: S. Baker Building & Scaffolding Ltd. C/o Mitten Clarke Festival Way Festival Park Stoke on Trent Staffordshire ST1 5TQ England SECURETELLER LTD: Creditors Have Until April 9 to Submit Claims --------------------------------------------------------------- Secureteller Limited, One Market Place Limited and Payment Intertrade Limited went into voluntary liquidation. David J. Holl of Holl, Cameron and Co Ltd. was appointed liquidator of the companies. Creditors have until April 9, 2009 to submit their claims to the liquidator. The liquidator can be reached at: David J. Holl Holl, Cameron and Co Ltd Ground Floor Beresford House Bellozanne Road St Helier Jersey JE23JW Channel Islands TWO RIGHT: In Administration; KPMG Appointed -------------------------------------------- Ian Corfield and Jane Moriarty of KPMG Restructuring were yesterday appointed joint administrators of Two Right Feet Limited. The company, a retailer of high-end children's nursery products, trades under the name of Two Left Feet and sells goods primarily via the internet. It also has a small retail/showroom site and warehouse based in Kempston, Bedford which have now been closed and secured. The company has recently encountered severe financial difficulties after experiencing significant delays in satisfying customer orders. Ian Corfield, joint administrator and Director of Restructuring at KPMG said: "Despite the efforts of the company's directors, they were unable to secure additional funding for the company and have had no option but to place the company into administration. We understand that the company has not been processing any new orders for over a week. "We are aware that there are a number of existing orders which have not yet been fulfilled. However, we believe that there is little or no stock available in this regard and unless you are contacted within the next week regrettably we will not be able to satisfy this demand." The joint administrators have arranged for a call center to be available for a short time to customers requiring further information 0844 770 1305. Thereafter, the company's web-site will be updated with any pertinent information as and when available. Two Right Feet Limited employs 24 staff, the majority of whom have been made redundant. Anyone interested in buying the company or the business and assets should contact Richard Harvey on richard.harvey@kpmg.co.uk. * BOOK REVIEW: How To Measure Managerial Performance ---------------------------------------------------- Author: Richard S. Sloma Publisher: Beard Books Paperback: 272 pages List Price: US$34.95 Order your personal copy at: http://www.amazon.com/exec/obidos/ASIN/1893122646/internetbankrupt How to Measure Managerial Performance by Richard S. Sloma is a valuable reference tool. This practical handbook provides new insights into enterprising management techniques. This book is a compendium of principles and techniques to improve and measure managerial performance in a number of areas important to the successful operation of a business. Rigorous application of the concepts of this instructive book will enable an organization to perform at several levels higher in efficiency and effectiveness. ********* 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 * * *