/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/090407.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Tuesday, April 7, 2009, Vol. 10, No. 68 Headlines A U S T R I A CVILAK LLC: Claims Registration Period Ends April 15 EINRICHTUNGSWERKSTATTE REINHARD: Claims Registration Ends April 13 FLEISCHER BAU: Claims Registration Period Ends April 14 GEIER PERSONALSERVICE: Claims Registration Period Ends April 13 MATZER LLC: Claims Registration Period Ends April 15 SV LLC: Claims Registration Period Ends April 15 F R A N C E KLENK HOLZ: Goes Into Receivership; Files for Insolvency G E R M A N Y 4 COLOURS HOTELBETRIEBS: Claims Registration Period Ends May 20 ASSYST BULLMER: Files for Insolvency in Germany ISH INTERNATIONALE: Claims Registration Period Ends May 29 MARKLIN HOLDING: Claims Registration Period Ends May 7 POSEIDON SANITARZELLEN: Claims Registration Period Ends May 29 QIMONDA AG: North-Am Unit Appoints Advisors to Sell Assets TMD FRICTION: Bought Out of Administration by Pamplona Capital VISION UND CONSTRUCTION: Claims Registration Period Ends May 11 ZENIT FINANZ: Claims Registration Period Ends May 19 I R E L A N D DUNCANNON CRE: Fitch Corrects April 1 Rating Press Release FARM MEDIA: Goes Into Examinership; 27 Jobs Affected REBEL BAR: Goes Into Liquidation Following Insolvency I T A L Y FERRETTI SPA: Caja de Ahorros Wants EUR50 Million Back K A Z A K H S T A N AKTALIM LLP: Creditors Must File Claims by May 8 AKTOBE RUBBER: Creditors Must File Claims by May 8 BEK-MYRZA LLP: Creditors Must File Claims by May 8 CONSTANTA LLP: Creditors Must File Claims by May 8 GRATIS LLP: Creditors Must File Claims by May 8 LUX AVIATION: Creditors Must File Claims by May 8 MAXIMA-OPTIX LLP: Creditors Must File Claims by May 8 SOFT LINE: Creditors Must File Claims by May 8 SONAR FOOD: Creditors Must File Claims by May 8 TRADING ATLAS: Creditors Must File Claims by May 8 K Y R G Y Z S T A N NOMAD RESOURCES: Creditors Must File Claims by April 10 L U X E M B O U R G BERNARD L. MADOFF: Luxembourg Court Names Liquidators for 2 Funds KAUPTHING BANK: J.C. Flowers Eyes Takeover N E T H E R L A N D S BI-LO LLC: Koninklijke Ahold Protest Access to GE US$35MM DIP Loan NXP BV: S&P Raises Corporate Credit Rating to 'CCC+' From 'SD' NXP SEMICONDUCTORS: Moody's Affirms 'Caa2' Corporate Family Rating R O M A N I A BANCA COMERCIALA: S&P Affirms Counterparty Credit Rating at 'BB+' R U S S I A AVTOMOBILIST LLC: Creditors Must File Claims by April 27 BALTIC CONSTRUCTION: Moskovskaya Bankruptcy Hearing Set June 25 CONSTRUCTION MANAGEMENT-8: Creditors Must File Claims by May 27 EKO-DOM-STROY LLC: Creditors Must File Claims by April 27 GAZPROM OJSC: Moody's Downgrades Ratings on Senior Unsecured Debt PUBLIC COMMMERCIAL: Creditors May File Claims STEKLO-STROY OJSC: Creditors Must File Claims by May 27 TEKH-PROM-STROY LLC: Ryazanskaya Bankruptcy Hearing Set Aug. 25 TEREM LLC: Creditors Must File Claims by April 27 VOLGOGRAD PAINT: Creditors Must File Claims by May 27 WOOD-PROCESSING PLANT: Court Names as Insolvency Manager S P A I N AUTOPISTAS DE LEON: Moody's Withdraws Rating on EUR42 Mil. Notes S W I T Z E R L A N D C QUADRAT FONDS: Creditors Must File Proofs of Claim by May 22 CMHC LLC: Deadline to File Proofs of Claim Set May 27 CRYSTAL CREDIT: More Losses Cue S&P's Junk Rating on Class C Notes DAHAG ENGINEERING: Creditors Have Until May 22 to File Claims LOGISTIK CONSULTING: Proof of Claim Filing Deadline is June 22 M & M CAFE: Creditors' Proofs of Claim Due by May 25 MARROCHA LLC: June 18 Set as Deadline to File Claims MODERN CARS: Creditors Must File Proofs of Claim by June 2 NETSCOUT SYSTEMS: Deadline to File Proofs of Claim Set May 4 OLW JSC: Creditors Have Until May 4 to File Claims SWISS ALTERNATIVE: Proof of Claim Filing Deadline is June 2 U K R A I N E CONCERN SHAR: Creditors Must File Claims by April 16 CORPORATION INDUSTRIAL: Fitch Cuts Issuer Default Rating to 'B-' DK-TOOL LLC: Creditors Must File Claims by April 16 EVELCOM LLC: Creditors Must File Claims by April 16 FOLGAT ENGINEERING: Creditors Must File Claims by April 16 GARDEN AND MARKET-GARDEN: Court Starts Bankruptcy Procedure HYPERPIPE DELIVERY: Creditors Must File Claims by April 16 RIA INTERFORM: Creditors Must File Claims by April 16 SEA TRANSPORT: Creditors Must File Claims by April 16 TA-BOR LLC: Creditors Must File Claims by April 16 VINOGRADNIK LLC: Creditors Must File Claims by April 16 YUR-COM LLC: Creditors Must File Claims by April 16 U N I T E D K I N G D O M ABLE PRINT: Appoints Joint Liquidators from Tenon Recovery AXEON HOLDINGS: Bank Loan Covenants Still Uncertain BRITISH AIRWAYS: Maintains Loss Forecast, Layoffs Continue CHELSEA HARBOUR: Duncar R. Beat Named Liquidator CONIVAL PLC: Taps Joint Liquidators from Tenon Recovery D & B RIDLEY: Appoints Joint Liquidators from PKF LLOYDS BANKING: Moody's Cuts Subordinated Debt Rating LYNMORE LTD: Brings in Joint Liquidators from BDO Stoy Hayward MANSARD MORTGAGES: S&P Cuts Ratings on Three Tranches to 'B' ROYAL BANK: Mulls Further Layoffs to Reduce Cost ROYAL BANK: Shareholders OK Redemption of GBP5BB Preference Shares ROYAL BANK: Considers Brendan Nelson for a Board Post ROYAL BANK: Shareholders Reject Salary Report ROYAL BANK: Moody's Downgrades Hybrid Debt Rating to 'Ba1' TATA MOTORS: In Talks to Refinance US$2 Bln of JLR Bridge Loan TATA STEEL: Fitch Cuts Long-Term Foreign Currency IDR to 'B+' URSUS EPC: Moody's Junks Ratings on Two Classes of Notes * Large Companies with Insolvent Balance Sheet ********* ============= A U S T R I A ============= CVILAK LLC: Claims Registration Period Ends April 15 ---------------------------------------------------- Creditors owed money by LLC Cvilak (FN 304627g) have until April 15, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Wilfrid Stenitzer Hauptplatz 32- 34 8430 Leibnitz Austria Tel: 03452/82203 03452/82252 Fax: 03452/86742 E-mail: office@stenitzer.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:20 a.m. on April 22, 2009, for the examination of claims at: Graz Land Court by Civil Cases (638) Room 222 Graz Austria Headquartered in Mureck, Austria, the Debtor declared bankruptcy on March 4, 2009, (Bankr. Case No. 26 S 36/09b). EINRICHTUNGSWERKSTATTE REINHARD: Claims Registration Ends April 13 ------------------------------------------------------------------ Creditors owed money by LLC Einrichtungswerkstatte Reinhard Sommer (FN 252441m) have until April 13, 2009, to file written proofs of claim to the court-appointed estate administrator: Barbara Senninger Kastellstrasse 4 7551 Stegersbach Austria Tel: 03326/524 23 Fax: 03326/54156 E-mail: office@anwalt-bgld.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:15 a.m. on April 27, 2009, for the examination of claims at: Land Court of Eisenstadt (309) Hall F Eisenstadt Austria Headquartered in Rotenturm an der Pinka, Austria, the Debtor declared bankruptcy on March 3, 2009, (Bankr. Case No. 26 S 14/09z). FLEISCHER BAU: Claims Registration Period Ends April 14 ------------------------------------------------------- Creditors owed money by LLC Fleischer Bau (FN 261534i) have until April 14, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Raoul Wagner Rathausstrasse 15/4 1010 Vienna Austria Tel: 405 33 82 Fax: 408 84 67 E-mail: office@hopmeier.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on April 28, 2009, for the examination of claims at: Trade Court of Vienna (007) Room 1606 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Feb. 26, 2009, (Bankr. Case No. 4 S 27/09m). GEIER PERSONALSERVICE: Claims Registration Period Ends April 13 --------------------------------------------------------------- Creditors owed money by LLC Geier Personalservice (FN 294391d) have until April 13, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr. Hanno Lecher Marktstrasse 8 (Europapassage) 6850 Dornbirn Austria Tel: 05572/38 68 98 Fax: 05572/386898-4 E-mail: office@kanzlei-lecher.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:50 a.m. on April 23, 2009, for the examination of claims at: Land Court of Feldkirch (929) Meeting Room 44 First Floor Feldkirch Austria Headquartered in Dornbirn, Austria, the Debtor declared bankruptcy on March 3, 2009, (Bankr. Case No. 14 S 12/09s). MATZER LLC: Claims Registration Period Ends April 15 ---------------------------------------------------- Creditors owed money by LLC Matzer (FN 58422s) have until April 15, 2009, to file written proofs of claim to the court- appointed estate administrator: Georg Dieter Kalchberggasse 10/III 8010 Graz Austria Tel: 0316/22 89 22 Fax: 0316/22 89 22 - 89 E-mail: office@sdra.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:10 a.m. on April 22, 2009, for the examination of claims at: Graz Land Court by Civil Cases (638) Room 222/ Graz Austria Headquartered in Graz, Austria, the Debtor declared bankruptcy on March 2, 2009, (Bankr. Case No. 26 S 33/09m). SV LLC: Claims Registration Period Ends April 15 ------------------------------------------------ Creditors owed money by LLC SV (FN 276618t) have until April 15, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr. Wilfrid Stenitzer Hauptplatz 32-34 8430 Leibnitz Austria Tel: 03452/82203 03452/82252 Fax: 03452/86742 E-mail: office@stenitzer.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on April 22, 2009, for the examination of claims at: Graz Land Court by Civil Cases (638) Room 222 Graz Austria Headquartered in Weinburg, Austria, the Debtor declared bankruptcy on March 4, 2009, (Bankr. Case No. 26 S 35/09f). =========== F R A N C E =========== KLENK HOLZ: Goes Into Receivership; Files for Insolvency -------------------------------------------------------- Klenk Holz France SAS has gone into receivership after sustaining heavy losses for years, The Timber Industry Magazine reports. Fordaq relates the company, on March 31, filed a request at the court of Colmar to open insolvency proceedings to secure its main German sawmilling business. TTJ discloses Klenk has been reducing production at its group mills to adjust with falling market demand. The company, TTJ notes, operates four sites across Germany. Klenk Holz AG -- http://www.klenk.de/-- was founded by Albert Klenk. ============= G E R M A N Y ============= 4 COLOURS HOTELBETRIEBS: Claims Registration Period Ends May 20 --------------------------------------------------------------- Creditors of 4 Colours Hotelbetriebs GmbH have until May 20, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on June 10, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Darmstadt Hall 4.308 Fourth Floor Building D Mathildenplatz 15 64283 Darmstadt 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: Ulrich Bert Birkenweg 24 64295 Darmstadt Germany Tel: 06151/66 72 9-0 Fax: 06151/66 72 9-20 E-mail: darmstadt@ltb-anwaelte.de The court opened bankruptcy proceedings against the company on April 1, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: 4 Colours Hotelbetriebs GmbH Attn: Frank Meyer-Eckardt, Manager Nordendstrasse 4A 64546 Moerfelden-Walldorf Germany ASSYST BULLMER: Files for Insolvency in Germany ----------------------------------------------- Assyst Bullmer filed for insolvency in Germany Wednesday last week, putting 120 jobs in Mehrstetten at risk, various reports say. According to just-style, the company said it was confident that a buyer would be found for the business. Assyst-Bullmer -- http://www.bullmer.de/-- is provider of PLM/PDM, CAD/CAM and Cost Optimization solutions that simplify and enhance the design, development and manufacturing process in the retail and sewn goods industries. ISH INTERNATIONALE: Claims Registration Period Ends May 29 ---------------------------------------------------------- Creditors of ISH Internationale Speditionsgesellschaft mbH have until May 29, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 1:00 p.m. on June 30, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Hof Meeting Room 012 Ground Floor Berliner Place 1 95030 Hof 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: Christian Adolf Ludwig St. 50 95028 Hof Tel: 09281/8331080 Fax: 09281/8331089 The court opened bankruptcy proceedings against the company on March 31, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ISH Internationale Speditionsgesellschaft mbH Eppenreuther St. 117 95032 Hof Germany Attn: Werner Mueller, Manager Erhard-Kuenzel- St. 17 95659 Arzberg Germany MARKLIN HOLDING: Claims Registration Period Ends May 7 ------------------------------------------------------ Creditors of Marklin Holding GmbH have until May 7, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 3:00 p.m. on May 25, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Goeppingen Hall 24 Pfarrstrasse 25 73033 Goeppingen 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: Michael Pluta C/o Pluta Rechtsanwalts GmbH Karlstrasse 33 89073 Ulm Germany Tel: (0731)968800 Fax: (0731)9688050 Em-ail: ulm@pluta.net The court opened bankruptcy proceedings against the company on March 31, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Marklin Holding GmbH Attn: Dietmar Mundil, Manager Stuttgarter Strasse 55-57 73033 Goeppingen Germany POSEIDON SANITARZELLEN: Claims Registration Period Ends May 29 -------------------------------------------------------------- Creditors of Poseidon Sanitarzellen Fertigung u. Vertriebs GmbH have until May 29, 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 18, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Augsburg Law Courts Meeting Room 162 Alten Einlass 1 86150 Augsburg 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: Christian Plail Eserwall St. 1�3 86150 Augsburg Germany 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: Poseidon Sanitarzellen Fertigung und Vertriebs GmbH Rudolf Diesel St. 7 b 86899 Landsberg Germany Attn: Roland Klages, Liquidator Landsberger St. 29 86938 Schondorf Germany QIMONDA AG: North-Am Unit Appoints Advisors to Sell Assets ---------------------------------------------------------- Qimonda North America Corporation said it has advisors to assist in the sale of their semiconductor manufacturing assets in Sandston, Virginia, subject to bankruptcy court approval. The advisory team is comprised of ATREG, a division of Colliers International, Emerald Technology Valuations LLC and Gordon Brothers Commercial & Industrial. Qimonda said the advisory team is initiating discussions with potential buyers who may consider operating the 300mm fab which has an output of 38,000 wafer starts per month and is 65nm capable. According to the company, if a strategic buyer is not found, the advisory team will move quickly to a complete 300mm tool line sale, and sale of the clean room manufacturing facilities in separate transactions. "This is the first time an operational 300mm fab has come to the market for sale. The fully automated, state-of-the-art Qimonda Richmond site was built and equipped at a cost of approximately $3 billion, and volume 300mm production began in 2005," said Stephen Rothrock, Managing Director of ATREG. Qimonda requests that all inquires are directed to ATREG, attention: Stephen Rothrock, Doug Barrett 206.515.4497. Qimonda North America Corp. and Qimonda Richmond L.L.C. each filed for creditor protection under Chapter 11 of the Bankruptcy Code on February 20, 2009. As reported in the Troubled Company Reporter, Qimonda AG filed an application with the local court in Munich, Germany, on January 23, 2009, to open insolvency proceedings. Their goal is to reorganize the companies as part of the ongoing restructuring program. According to Bloomberg News, Qimonda filed for insolvency after a plan announced in December for a loan of EUR325 million (US$418 million) from the German state of Saxony, Infineon Technologies AG, Europe's second-largest maker of semiconductors, and an unidentified Portuguese bank wasn't completed in time. Qimonda AG (NYSE: QI) -- http://www.qimonda.com/-- is a 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. TMD FRICTION: Bought Out of Administration by Pamplona Capital -------------------------------------------------------------- Martin Arnold and John Read at the Financial Times report that Pamplona Capital Management, a London-based investment fund, bought TMD Friction out of administration for an undisclosed sum Friday last week. In an April 3 release TMD Friction said that the acquisition, which is expected to complete by the end of April, will safeguard approximately 3,800 jobs worldwide. The company said that following the acquisition, it will benefit from the long-term support of Pamplona and a strong and debt-free balance sheet. Citing Derek Whitworth, chief executive of TMD, the FT discloses the company had made 300 German staff redundant and closed factories in Germany and Italy while in administration. The FT notes the company also renegotiated contracts with suppliers, such as its energy and IT providers, and ditched some property leases. The administrator was advised by Linklaters and Close Brothers while TMD management and Pamplona were advised by Allen & Overy, One Square and KPMG. As reported in the Troubled Company Reporter-Europe on Feb. 3, 2009, in December 2008 TMD Friction filed for insolvency at the local county court in Cologne, Germany, for their German operating and holding companies. The court appointed Dr. Frank Kebekus as preliminary insolvency administrator. The primary reason for filing was the decline in sales of the global automotive markets that the company services. TMD Friction http://www.tmdfriction.com/-- manufactures disc brake pads and drum brake linings for passenger cars and commercial vehicles, together with brake pads for racing cars, and friction materials for industrial and rail applications. TMD Friction supplies global automotive and commercial OEMs across a wide range of vehicle platforms. The company is also one of the largest suppliers to the global aftermarket with its Textar, Pagid, Mintex, Don, Cobreq, and Cosid brands. The company operates from locations across Europe, the US, Brazil, Mexico, China and Japan. VISION UND CONSTRUCTION: Claims Registration Period Ends May 11 --------------------------------------------------------------- Creditors of Vision und Construction GmbH have until May 11, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on June 12, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Wuppertal Meeting Room A234 Second Floor Isle 2 42103 Wuppertal 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: Holger Rhode Laurentius St. 21 � 23 42103 Wuppertal Germany Tel: 0202/4086150 Fax: 02024086159 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: Vision und Construction GmbH Attn: Wolfram Schulze, Manager Haber St. 5 42551 Velbert Germany ZENIT FINANZ: Claims Registration Period Ends May 19 ---------------------------------------------------- Creditors of Zenit Finanz-Agentur GmbH have until May 19, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on June 9, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Offenbach am Main Hall 162N First Floor Kaiserstrasse 16-18 63065 Offenbach am Main 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: Fatma Kreft Neue Mainzer St. 84 60311 Frankfurt am Main Germany Tel: 069/6773677-0 Fax: 069/6773677-20 The court opened bankruptcy proceedings against the company on March 31, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Zenit Finanz-Agentur GmbH Attn: Silke Reinmoeller, Manager Carl-Zeiss- St. 41 63322 Roedermark Germany ============= I R E L A N D ============= DUNCANNON CRE: Fitch Corrects April 1 Rating Press Release ---------------------------------------------------------- This announcement clarifies the commentary issued on April 1, 2009. The portfolio rating stratification figures have been amended to clarify the current portfolio composition based on the February trustee report as well as Fitch's recent ratings activity on the underlying portfolio. The amendments have been applied to the second paragraph after the rating actions. 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 -- EUR420m 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 EUR730 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. When the February report is combined with Fitch's recent downgrades, assets rated 'CC' and below (including defaulted assets of 38.7 million) amount to 104.5 million. Asset rated in the 'CCC' category total 150.5 million. Combining all assets rated 'CCC' and below (including defaulted securities) results in a figure of 255 million. The 'CCC' and below assets comprise 31% of the total portfolio balance including cash and defaulted securities (255 million / 818.3 million), and the 'CC' and below assets form approximately 13% of the portfolio (104.5 million/ 818.3 million). The performing portfolio (excluding cash) consists of 38% commercial mortgage-backed securities and 54% subordinated B-notes and C-notes. In terms of vintage concentration, 81% of the performing portfolio is from the 2006 and 2007 vintages. The largest geographical concentration is the United Kingdom which makes up 41% of the portfolio. In addition, 19% of the performing 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. FARM MEDIA: Goes Into Examinership; 27 Jobs Affected ---------------------------------------------------- Laura Noonan at Independent.ie reports that Dublin-based post production firm Farm Media Group has gone into examinership, resulting in the loss of 27 jobs. The report relates Bobby O'Reilly, head of Farm Media, said the failure of a number of clients to pay their bills forced the company to shut down. Mr. O'Reilly, as cited by the report, said the company is pursuing legal action to recover those debts. The company has scheduled a creditors' meeting for April 15, at Buswell's Hotel on Dublin's Molesworth Street, the report notes. The report recalls Barcud Derwen rescued the company from examinership back in 2005 after it got into trouble following a rapid expansion plan. According to the report, Mr. O'Reilly confirmed that Farm Media has parted company with Barcud Derwen on "good terms". REBEL BAR: Goes Into Liquidation Following Insolvency ----------------------------------------------------- The Sunday Business Post Online's Ian Kehoe reports that The Rebel Bar Group, owned by Cork businessmen Tom and Sam Scriven, has gone into liquidation, putting more than 140 jobs at risk. The report relates the company, which owns a chain of 18 pubs, nightclubs and off-licences in Cork, told the High Court Friday last week that it was no longer in a position to meet its debts, triggering the appointment of the liquidator. According to the report, the company has suffered from the decline in the drink and hospitality sector and the overall deterioration in the Irish economy. KPMG insolvency partner Kieran Wallace was appointed as provisional liquidator of the company, the report discloses. The report adds a full hearing on the appointment will be heard in the coming days. Mr. Wallace, the report says, will attempt to keep the company trading as a going concern as he attempts to find buyers for its establishments, which include the Savoy Music Venue on Patrick Street in the city, the Manhattan bar in Ballyphehane in Cork, Sam's Bar in Ballincollig and Lakelands in Mahon Point in Cork. The company, the report notes, has leased out ten of its establishments, which are continuing to trade, while The Savoy Music Venue has been closed down. ========= I T A L Y ========= FERRETTI SPA: Caja de Ahorros Wants EUR50 Million Back ------------------------------------------------------ Ferretti SpA may need to pay Caja de Ahorros y Monte de Piedad de Madrid SA EUR50 million (US$67 million) after the lender turned down a debt restructuring plan for the Italian yachtmaker, Bloomberg News reported citing daily Il Messaggero. According to the report, Caja Madrid on April 2 rejected a plan to convert its EUR50 million share of Ferretti's debt into equity and instead wants all of the cash returned. In February, a letter obtained by Bloomberg News from facility agent Royal Bank of Scotland Group Plc said Ferretti missed an interest payment on EUR1.08 billion (US$1.4 billion) of senior loans used to finance its buyout in 2007. Data compiled by Bloomberg said Ferretti raised EUR1.28 billion of senior and so-called mezzanine loans in January 2007 to fund private equity firm Candover Investments Plc's purchase of a majority stake through a leveraged buyout. Reuters said Candover bought a majority stake in Ferritti from Permira for EUR1.7 billion (US$2.2 billion) in 2007, backed by a loan arranged by Mediobanca SpA and Royal Bank of Scotland. RBS's letter, according to Bloomberg News, said Ferretti failed to make a EUR1.4 million payment on the loans Jan. 30, constituting an "event of default." Ferretti, in a Feb. 9 statement obtained by Bloomberg News, said the payment is related to an interest-rate swap with RBS on the senior loan, and that it earlier failed to pay interest on the debt's EUR200 million lower-ranking "mezzanine" facility. According to Bloomberg News, Ferretti sought to renegotiate the loans and is being advised by NM Rothschild & Sons Ltd. About Ferretti Ferretti SpA � http://www.ferretti-yachts.com/-- is engaged in the luxury yacht sector in Italy. The company is a producer of luxury-class sport, fishing, flybridge and motor-powered nautical vessels. The organization comprises the Custom Line, Pershing, CRN, Riva, Apreamare, Bertram and Ferretti brands of motor-powered yachts used in racing competitions, as well as in leisure and fishing activities. The Ferretti brand offers yachts that range from 43 to 80 feet; Custom Line offers yachts that range from 94 to 128 feet; CRN offers 100-foot cruisers; Pershing offers speed boats that range from 37 to 88 feet; Riva offers luxury yachts that range from 33 to 84 feet; Bertram offers fishing vessels that range from 36 to 73 feet, and Apreamare offers leisure speed boats that range from 22 to 39 feet. =================== K A Z A K H S T A N =================== AKTALIM LLP: Creditors Must File Claims by May 8 ------------------------------------------------ The Specialized Inter-Regional Economic Court of Almaty has declared LLP Aktalim insolvent. Creditors have until May 8, 2009, to submit written proofs of claim to: Micro district "Mamyr 4", 14 Almaty Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of Almaty Baizakov St. 273b Almaty Kazakhstan AKTOBE RUBBER: Creditors Must File Claims by May 8 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Aktobe Rubber insolvent. Creditors have until May 8, 2009, to submit written proofs of claim to: Satpayev St. 16 Aktobe Aktube Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of Aktube Satpayev St. 16 Aktobe Aktube Kazakhstan BEK-MYRZA LLP: Creditors Must File Claims by May 8 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Bek-Myrza insolvent. Creditors have until May 8, 2009, to submit written proofs of claim to: Baitursynov St. 70 Kostanai Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of Kostanai Baitursynov St. 70 Kostanai Kazakhstan CONSTANTA LLP: Creditors Must File Claims by May 8 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Constanta insolvent. Creditors have until May 8, 2009, to submit written proofs of claim to: Baitursynov St. 70 Kostanai Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of Kostanai Baitursynov St. 70 Kostanai Kazakhstan GRATIS LLP: Creditors Must File Claims by May 8 ----------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Gratis insolvent. Creditors have until May 8, 2009, to submit written proofs of claim to: Tauelsyzdyk St. 53 Taldykorgan Almaty Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of Almaty Tauelsyzdyk St. 53 Taldykorgan Almaty Kazakhstan LUX AVIATION: Creditors Must File Claims by May 8 ------------------------------------------------- LLP Kaz Lux Aviation has declared insolvency. Creditors have until May 8, 2009, to submit written proofs of claim to: Mailin St. 1a Almaty Kazakhstan Tel: 8 701 346 33-63 MAXIMA-OPTIX LLP: Creditors Must File Claims by May 8 ----------------------------------------------------- LLP Maxima-Optix has declared insolvency. Creditors have until May 8, 2009, to submit written proofs of claim to: Abylai Han St. 21 Novoishymsky Musrepov district North Kazakhstan Kazakhstan SOFT LINE: Creditors Must File Claims by May 8 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda has declared LLP Soft Line insolvent. Creditors have until May 8, 2009, to submit written proofs of claim to: Alalykin St. 9 Karaganda Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of Karaganda Alalykin St. 9 Karaganda Kazakhstan SONAR FOOD: Creditors Must File Claims by May 8 ----------------------------------------------- LLP Sonar Food Production insolvent. Creditors have until May 8, 2009, to submit written proofs of claim to: Tole bi St. 202a Almaty Kazakhstan TRADING ATLAS: Creditors Must File Claims by May 8 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda has declared LLP Trading Atlas insolvent. Creditors have until May 8, 2009, to submit written proofs of claim to: Alalykin St. 9 Karaganda Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of Karaganda Alalykin St. 9 Karaganda Kazakhstan =================== K Y R G Y Z S T A N =================== NOMAD RESOURCES: Creditors Must File Claims by April 10 ------------------------------------------------------- Creditors of LLC Nomad Resources (INN 01109200810131) have until April 10, 2009, to submit proofs of claim to: Mederov Str. 46-12 Bishkek Kyrgyzstan Tel: (+996 312) 56-03-95 =================== L U X E M B O U R G =================== BERNARD L. MADOFF: Luxembourg Court Names Liquidators for 2 Funds ----------------------------------------------------------------- A Luxembourg judge appointed liquidators to the LuxAlpha Sicav-American Selection and Herald (Lux) US Absolute Return funds, two investment vehicles tied to Bernard Madoff, Bloomberg News reports. According to the report, Judge Christiane Junck named Alain Rukavina and Paul Laplume as liquidators for LuxAlpha, and Carlo Reding and Ferdinand Burg as liquidators for Herald Lux. The liquidators, the report says, will have to provide the court by July 2 a total amount of the claims investors have against each fund. The report relates LuxAlpha and Herald were among 17 funds and sub-funds forced to suspend customer redemptions after disclosures of losses from investments with Madoff. LuxAlpha once had US$1.4 billion in assets and Herald Lux had US$225.7 million in assets as of Oct. 31, Bloomberg News discloses. "More funds will follow," Bloomberg News quoted Lex Thielen, a lawyer at Luxembourg law firm Thielen & Associes, as saying. "The liquidation of these funds is the best thing that can happen to protect the investors' interests." About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC was a market maker in U.S. stocks, including all of the S&P 500 and more than 350 Nasdaq stocks. The firm moved large blocks of stock for institutional clients by splitting up orders or arranging off-exchange transactions between parties. It also performed clearing and settlement services. Clients included brokerages, banks, and other financial institutions. In addition, Madoff Securities managed assets for high-net-worth individuals, hedge funds, and other institutional investors. The firm is being liquidated in the aftermath of a fraud scandal involving founder Bernard L. Madoff. As reported by the Troubled Company Reporter on Dec. 15, 2008, the Securities and Exchange Commission charged Mr. Madoff and his investment firm with securities fraud for a multi-billion dollar Ponzi scheme that he perpetrated on advisory clients of his firm. The estimated losses from Madoff's fraud were allegedly at least 50 billion. Also on Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S. istrict Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. Irving H. Picard, Esq., was appointed as trustee for the liquidation of BLMIS, and Baker & Hostetler LLP was appointed as counsel. Mr. Madoff, if found guilty of all counts, would be imprisoned for 150 years, but legal experts expect the actual sentence to be much lower and would still be an effective life sentence for the 70- year-old defendant, WSJ notes. Mr. Madoff, WSJ relates, would also face millions of dollars in possible criminal fines. The report says that Mr. Madoff has been free on bail since his arrest on December 11, 2008. There was no plea agreement with Mr. Madoff in which leniency in sentencing might be recommended, the report states, citing prosecutors. KAUPTHING BANK: J.C. Flowers Eyes Takeover ------------------------------------------ Philip Blenkinsop at Reuters reports that according to Luxembourg weekly newspaper Letzebuerger Land, J.C. Flowers is eyeing to take over Kaupthing Bank Luxembourg. Reuters relates Kaupthing Bank Luxembourg was given a stay of execution of a further two months on Thursday. Suspension of Payments' Period Extended As reported in the Troubled Company Reporter-Europe on April 1, 2009, the Tribunal d'arrondissement de et a Luxembourg (Luxembourg District Court), sitting in commercial matters, ruled on the extension of the suspension of payments' period which was to expire at midnight on April 8, 2009. The District Court granted a two-month extension after hearing the Bank's court-appointed administrators, PricewaterhouseCoopers S.a r.l., represented by Emmanuelle Caruel-Henniaux partner, and Franz Fayot, attorney at law. This extension of the suspension of payments' period does not mean that the Bank will resume its operations as usual. As a result, until June 8, 2009, all payments by the Bank are still deferred temporarily and the Bank may not act or make a decision unless the Administrators agree, as this was already the case as from October 9, 2008. Had the suspension of payments' period not been extended, the decision would have been final: the Tribunal d'arrondissement de et a Luxembourg, at the request of the Commission de Surveillance du Secteur Financier (the Luxembourg financial regulator) or at the request of the Public Prosecutor, would have had no choice but to wind up the Bank, since the interbank creditors rejected the restructuring plan submitted to their vote by the Administrators in mid-March. This extension of the suspension of payments' period bodes well for the prospects of a takeover for the Bank and the unfreezing of the bank accounts. The extension will enable the Bank's Administrators and the Management to continue to work together towards this goal. Restructuring Plan Rejected The interbank creditors rejected the restructuring plan that they were asked to vote on March 16, 2009, the administrators and the management of Kaupthing Bank Luxembourg said in a press statement. Since October 9, 2008 the Bank has continued to operate, within the framework of the administrative receivership status granted by the Tribunal d'arrondissement de Luxembourg, sitting in commercial matters. The Board of Directors of Kaupthing Bank Luxembourg had applied for this status, which also includes monitoring of the Bank's management by administrators. Memorandum of Understanding A memorandum of understanding was entered into last December between the Luxembourg government and a consortium of investors headed by a Libyan sovereign fund. Under the memorandum of understanding, the activities of Kaupthing Bank Luxembourg would be taken over by the consortium. This memorandum was subject to several conditions, including the approval of the interbank creditors. A vote took place on March 16 and the interbank creditors rejected the restructuring offer. According to the terms of the judgement rendered by the Luxembourg Court of Appeal on January 28, 2009, the restructuring offer had to win (i) more than half the votes of the restructured interbank creditors, representing together (ii) more than half the liabilities represented by the restructured debt. The restructuring offer was rejected by 17 of the 25 creditor banks. In terms of liabilities, the restructuring offer was rejected by a majority of 53% of the total restructured debt. About Kaupthing Bank Headquartered in Reykjavik, Iceland, Kaupthing Bank -- http://www.kaupthing.com-- is engaged in the provision of financial services, such as private banking, asset management, pension services, brokerage services, investment banking, as well as corporate and retail banking. The Bank's offer is targeted at companies, institutional investors and individuals. The Bank is operational in thirteen countries, including Luxembourg, Switzerland, the Nordic countries, the United Kingdom and the United States. The main subsidiaries include Kaupthing Singer & Friedlander and FIH Erhvervsbank. About Kaupthing Bank Luxembourg Kaupthing Bank Luxembourg SA -- http://www.kaupthing.lu/-- is a unit of Iceland-based Kaupthing Bank hf. The main services offered at Kaupthing Bank Luxembourg are Private Banking and Wealth Management. Its services include asset management, securities brokerage, issuing of credit cards and the establishment and management of holding companies in addition to providing general deposit accounts and loans. It also offers specialized Corporate and Institutional services that offer various types of Debt capital market products. ===================== N E T H E R L A N D S ===================== BI-LO LLC: Koninklijke Ahold Protest Access to GE US$35MM DIP Loan ------------------------------------------------------------------ Koninklijke Ahold N.V. objects request to obtain US$35 million in senior secured superpriority postpetition financing from GE Business Financial Services fka Merrill Lynch Capital, a division of Merrill Lynch Business Financial Services Inc., proposed by Bi-Lo LLC and its debtor-affiliates in the United States Bankruptcy Court for the District of Southern Carolina. Koninklijke Ahold says the DIP facility, which will be used to fund the postpetition operation of the Debtors' business, is extravagant if not outrageous. The lender, Koninklijke Ahold notes, has required that the Debtors to agree to: * elevate over US$65 million of its prepetition loans to the status of super-priority administrative claims; * fix defects in the collateral package of the lender by granting priming liens in and to substantially all of the Debtors' assets, including the vast majority of the Debtors' valuable leaseholds, which are currently not part of the lenders' collateral package; * waive all claims the estates may have against the lenders; and * grant the lenders liens in and to the estates' avoidance rights and actions under Chapter 5 of the Bankruptcy Code. According to Koninklijke Ahold, the provisions are in direct conflict with fundamental bankruptcy policy -- they disrupt the priority scheme contemplated by the Bankruptcy Code and offend the principle that equally situated creditors should be treated equally. Furthermore, the provisions provide an unfair advantage to the prepetition claims of the lender and are highly prejudicial to the Debtors' estates and their other stakeholders. David B. Wheeler, Esq., at Moore & Van Allen PLLC, says these extraordinary circumstances are not present here. First, the DIP motion does not make out a case of "do or die" urgency. Indeed, to the contrary, the budget filed in connection with the DIP motion indicates that the Debtors now have unrestricted cash on hand of nearly US$9 million and anticipate operating on a cash- flow positive or neutral basis throughout most of the projection period; the most substantial exception to that outlook is caused by the Debtors' apparent view that they must pay approximately US$21 million of prepetition claims to its primary supplier, C&S Wholesale Grocers, Inc., in the second or third week of the case, Mr. Wheeler points out. And that payment, if made in full at that time, only requires an anticipated use of about US$6 million of new financing suggesting at least the possibility of negotiating a structured payout that could conform to the Debtors' wherewithal without any new financing, he notes. Mr. Wheeler relates, as importantly, assuming the new money component of the financing is essential or at least important to the preservation of the business and maximization of value, Koninklijke Ahold has committed to provide the Debtors access to the proposed US$35 million of New Loans on the same economic terms, secured only by a junior lien on the Debtors' encumbered assets and a first lien on the Debtors' unencumbered assets, and without any of the onerous strings attached that improperly shift the value to the lenders. Mr. Wheeler says, there will be no "roll-up" of prepetition claims, enhancement of the prepetition collateral package, encumbrance of estate avoidance actions, waiver of estate claims and causes of action against the lenders. In addition, Koninklijke Ahold has eliminated the borrowing base concept from the financing to insure that the entire amount of the financing will beavailable to the Debtors throughout the financing term, Mr. Wheeler concludes. About Bi-Lo LLC Greenville, South Carolina-based BI-LO LLC -- http://my.bi-lo.com/ -- is a chain of 215 supermarkets based in Greenville, South Carolina. Founded in 1964 by Frank Outlaw, the Company and its affiliates operate supermarkets around South Carolina, North Carolina, Georgia, and Tennessee and have about 17,000 employees. Dallas-based Lone Star Funds bought the business in 2005 from Koninklijke Ahold NV, the Dutch supermarket operator. Lone Star also owns Bruno's Supermarkets LLC, a chain of 66 stores that filed under Chapter 11 in February in Birmingham, Alabama. BI-LO and its affiliates filed for Chapter 11 bankruptcy protection on March 23, 2009 (Bankr. D. S.C. Case No. 09-02140). Betsy Johnson Burn, Esq., Frank B.B. Knowlton, Esq., George Barry Cauthen, Esq., and Jody A. Bedenbaugh, Esq., at Nelson, Mullins, Riley and Scarborough assist the Companies in their restructuring efforts. The Companies listed US$100 million to US$500 million in assets and US$100 million to US$500 million in debts. NXP BV: S&P Raises Corporate Credit Rating to 'CCC+' From 'SD' -------------------------------------------------------------- Standard & Poor's Ratings Services said that it raised its long- term corporate credit rating on Dutch semiconductor manufacturer NXP B.V. to 'CCC+' from 'SD'. The outlook is negative. At the same time, the ratings on NXP's secured notes were raised to 'CCC+' from 'D'. The recovery rating on these notes is '4', indicating S&P's expectation of average (30%-50%) recovery in the event of a payment default. The ratings on NXP's unsecured notes was raised to 'CCC' from 'D'; these notes have a recovery rating of '5', indicating S&P's expectation of modest (10%-30%) recovery in the event of a payment default. The issue rating on NXP's senior ranking secured revolving credit facility was raised to 'B' from 'CCC+', two notches above the corporate credit rating, and the recovery rating on this facility was revised to '1' from '1+', indicating S&P's expectation of very high (90%-100%) recovery in the event of a payment default. NXP settled its distressed exchange offer. "The new ratings primarily reflect S&P's assessment of NXP's capital structure and financial risk profile following completion as still highly leveraged," said Standard & Poor's credit analyst Patrice Cochelin. S&P estimates that the exchange offer reduced NXP's gross indebtedness by about $465 million, or about 7%, to US$6.0 billion, based on NXP's reported gross debt at Dec. 31, 2008, using the current euro-dollar exchange rate, and including the recent revolver draw. "The negative outlook primarily reflects our view that very challenging economic conditions and large cash outlays for restructuring and interest payments will continue to trigger cash burn at NXP over the foreseeable future," said Mr. Cochelin. In addition, the low debt reduction achieved through the exchange offer has not alleviated S&P's concerns about the medium-term sustainability of NXP's capital structure. S&P therefore considers that NXP retains a relatively high risk of further below-par capital structure transactions and, ultimately, faces high challenges for the refinancing on its first debt maturities in 2012. A dramatic reduction in NXP's cash burn while maintainning adequate cash balances could support rating stability, however. NXP SEMICONDUCTORS: Moody's Affirms 'Caa2' Corporate Family Rating ------------------------------------------------------------------ Moody's Investors Service affirmed the Caa2 CFR of NXP Semiconductors' on the assumption that the relatively low, below 40% of superpriority notes offered, take-up of its private debt exchange offer will be complemented near term by further debt restructuring measures, so that upon completion, NXP's operating performance and credit metrics warrant at least that Caa2 rating. The probability of default rating was maintained at Ca, but the LD suffix (Limited Default) was attached reflecting the final closing of NXP's debt exchange transaction. This LD designation will be withdrawn in approximately 3 business days. Moody's downgraded the ratings for the senior secured notes of NXP to C from Caa2, to a Loss Given Default level commensurate with the 25-32% of face value in priority notes that about 7% of the secured note holders had accepted in the exchange. Moody's expects the secured notes to be involved in any future debt restructuring as well. The unsecured long-term debt of NXP was affirmed at C, and LGD amended to LGD6 (85%) to reflect the exchange rate. The outlook for the ratings remains negative. The debt exchange resulted in a swap of senior unsecured and secured debt (at a substantial discount) for new super priority notes ranking pari-passu with the EUR500 million revolving credit facility. Existing noteholders that elected to participate in the exchange accepted principal reductions of between 68% - 85%, depending upon the class of notes and date of tender. Moody's views the exchange as a distressed exchange for the particular securities involved, and reflects that a limited default has occurred through the assignment of the probability of default rating of Ca/LD (Limited Default). The debt exchange has been funded with EUR29 million of New Euro Super Priority Notes and approximately US$90 million of New Dollar Super Priority Notes, both due 2013 and with a 10% coupon. NXP received commitments representing approximately US$593 million face amount of notes. As a result of the debt exchange the Issuers' overall indebtedness will be reduced by approximately US$465 million and their related interest expense by approximately US$30 million. Compared to about US$6.5 billion debt outstanding before the exchange, the swap produced only a modest improvement in leverage and interest coverage. The company's CFR of Caa2 and the Ca/LD PDR as well as its negative rating outlook reflect NXP's very weak credit metrics, and the prospect that further debt restructuring is likely to be pursued over the next several months leading to more meaningful de-leveraging. Moody's believes that demand for semiconductors will continue to drop in 2009 given deteriorating macro-economic conditions, and that NXP's operating performance will continue to suffer. Although NXP maintains adequate liquidity, its capital structure appears unsustainable over the medium term unless semiconductor volumes rebound significantly. Issuer: NXP B.V. Downgrades: -- Senior Secured Regular Bond/Debenture, Downgraded to a range of C, LGD5, 75% from a range of Caa2, LGD4, 61% Upgrades: -- Senior Unsecured Regular Bond/Debenture, Upgraded to LGD5, 85% from LGD6, 100% Adjustment: -- Probability of Default Rating, Adjusted to Ca/LD from Ca NXP's ratings were assigned by evaluating factors Moody's believe are relevant to the credit profile of the issuer, such as i) the business risk and competitive position of the company versus others within its industry, ii) the capital structure and financial risk of the company, iii) the projected performance of the company over the near to intermediate term, and iv) management's track record and tolerance for risk. These attributes were compared against other issuers both within and outside of NXP's core industry and NXP's ratings are believed to be comparable to those of other issuers of similar credit risk. The last rating action for NXP has been on March 3, 2009, when Moody's downgraded NXP's corporate family rating to Caa2 from Caa1, its senior secured notes to Caa2 from Caa1 and senior unsecured notes to C from Caa3. NXP Semiconductors, headquartered in Eindhoven, Netherlands, is a leading semiconductor company, focusing on the designs and manufacture of semiconductors for general applications, power management (Multi-Market) and application-specific integrated circuits for the home electronics, automotive and identification technology application markets. NXP posted sales of US$5.4 billion (including the Mobile & Personal business until the beginning of August 2008) in fiscal year 2008. ============= R O M A N I A ============= BANCA COMERCIALA: S&P Affirms Counterparty Credit Rating at 'BB+' ----------------------------------------------------------------- Standard & Poor's Ratings Services said that it affirmed its 'BB+' long-term counterparty credit rating on Romania-based Banca Comerciala Romana. The rating was subsequently withdrawn at the bank's request. The outlook at the time of the withdrawal was negative. As a result of the withdrawal, BCR will no longer be subject to Standard & Poor's surveillance. There are no outstanding issues rated. =========== R U S S I A =========== AVTOMOBILIST LLC: Creditors Must File Claims by April 27 -------------------------------------------------------- Creditors of LLC Avtomobilist (TIN 3811116717, PSRN 1073811009436) (Cargo Transportation) have until April 27, 2009, to submit proofs of claims to: O. Fominykh Temporary Insolvency Manager Post User Box 100 664025 Irkutsk-25 Russia The Arbitration Court of Irkutskaya will convene on July 9, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. A19�2376/09�63. The Debtor can be reached at: LLC Avtomobilist Apt. 12 Baykalskaya St. 213 664075 Irkutsk Russia BALTIC CONSTRUCTION: Moskovskaya Bankruptcy Hearing Set June 25 --------------------------------------------------------------- The Arbitration Court of Moskovskaya will convene at 2:30 p.m. on June 25, 2009, to hear bankruptcy supervision procedure on LLC Baltic Construction Company-41 (TIN 5029068321, PSRN 1035005511342). The case is docketed under Case No. A41�1412/09. The Temporary Insolvency Manager is: V. Podkovyrov Office 201 Building 6 Ostapovskiy proezd 3 109316 Moscow Russia The Debtor can be reached at: LLC Baltic Construction Company-41 Novomytishchinskiy Prospect 82 Mytishchi 141018 Moskovskaya Russia CONSTRUCTION MANAGEMENT-8: Creditors Must File Claims by May 27 --------------------------------------------------------------- Creditors of CJSC Construction Management-8 Fundamentstroy (TIN 7711072397) (Construction) have until May 27, 2009, to submit proofs of claims to: N. Tarakanova Insolvency Manager Sovetskaya St. 4 4400026 Penza Russia The Arbitration Court of Moscow commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40�27446/08�88-64B. The Debtor can be reached at: CJSC Construction Management-8 Fundamentstroy Priorova St. 36 125130 Moscow Russia EKO-DOM-STROY LLC: Creditors Must File Claims by April 27 --------------------------------------------------------- Creditors of LLC Eko-Dom-Stroy (TIN 0275056897) (Construction) have until April 27, 2009, to submit proofs of claims to: A. Lisitsa Temporary Insolvency Manager Post User Box 26 45006 Ufa-61 Bashkortostan Russia The Arbitration Court of Bashkortostan will convene at 2:00 p.m. on Sept. 3, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. A07�18207/2008. The Debtor can be reached at: LLC Eko-Dom-Stroy Silikatnaya St. 17 450003 Ufa Bashkortostan Russia GAZPROM OJSC: Moody's Downgrades Ratings on Senior Unsecured Debt ----------------------------------------------------------------- Moody's Investors Service has downgraded the senior unsecured issuer and debt ratings of OJSC Gazprom, the Russian integrated gas company majority owned by the Russian state, to Baa1 from A3. The outlook on the ratings is stable. The downgrade of Gazprom reflects Moody's view that the economic drivers of the financial profiles of Gazprom and the Russian state are strongly correlated. In particular, movements in oil and gas prices and changes in the health of the Russian economy are factors similarly impacting the fortunes of both parties. As a result, Moody's is reflecting in Gazprom's rating the fact that the circumstances that might lead to transitions in the risk profile of Gazprom are the same factors that would place strains on, or positively impact, the Russian state's finances. Moody's therefore no longer believes it is appropriate to assign a rating to Gazprom higher than that of the Russian Federation's rating of Baa1. The rating action does not reflect any changes in Moody's view of Gazprom's stand-alone credit risk profile, equivalent to a Ba1, or Moody's assessment of the high degree of support Moody's assumes the Russian state would provide if necessary to Gazprom given its strategic importance to the state which explains the uplift assigned to the final rating. Moody's furthermore notes that the agency continues to factor into Gazprom's stand-alone risk profile the potential impact of providing support to Gazprombank notwithstanding the earlier decision by Gazprom to deconsolidate the bank. Gazprom's stand- alone profile takes into account the inherent strength of the company's business, leading market positions and financial wherewithal tempered by other factors including support for the lower rated bank as well as other challenges associated with operating in Russia. The stable outlook reflects that of the Russian Federation, as, given the high support assumption, Gazprom's ratings remain sensitive to changes in sovereign credit quality. A one-notch change in the sovereign rating would result in a commensurate change in the company's ratings, assuming no other changes to the other rating factors. Similarly, a material change in the state support assumption for the company would also negatively impact Gazprom's ratings. Moody's previous rating action on Gazprom was on December 15, 2008, when the agency changed the outlook on Gazprom's ratings to stable from positive reflecting the change in the outlook on the Baa1 rating of the Russian Federation to stable from positive. Gazprom headquartered in Moscow, Russia, is the world's largest integrated gas company focused on the production, refining and transportation of Russian gas to both domestic, Commonwealth of Independent States, Baltic and European markets. It also owns and operates the Unified Gas Supply System in Russia, which is the largest gas transportation, storage and processing system in the world, comprising of nearly 158,500 kilometers of high-pressure trunk pipelines and 25 underground gas storage facilities and is the leading exporter of gas to Western Europe. PUBLIC COMMMERCIAL: Creditors May File Claims --------------------------------------------- Creditors of OJSC Public Commercial Bank may submit proofs of claims to: Kosmonavta Leonova St. 2 236000 Kaliningrad Russia STEKLO-STROY OJSC: Creditors Must File Claims by May 27 ------------------------------------------------------- Creditors of LLC Steklo-Stroy (TIN 3304001604, PSRN 102330059634, RVC 330401001) (Construction) have until May 27, 2009, to submit proofs of claims to: A. Shurov Insolvency Manager Radiozavodskoe shosse 2a Murom 602264 Vladimirskaya Russia The Arbitration Court of Vladimirskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A11�7384/2008. The Debtor can be reached at: LLC Steklo-Stroy Teplitskiy prospect 19 Gus�-Khrustalnyy 601505 Vladimirskaya Russia TEKH-PROM-STROY LLC: Ryazanskaya Bankruptcy Hearing Set Aug. 25 --------------------------------------------------------------- The Arbitration Court of Ryazanskaya will convene at 10:15 a.m. on Aug. 25, 2009, to hear bankruptcy supervision procedure on LLC Tekh-Prom-Stroy (TIN 6229054053, PSRN 1066229060149) (Construction). The case is docketed under Case No. A54� 330/2009,-S1. The Temporary Insolvency Manager is: O. Gudkova Liter O Mayakovskogo St. 1A 390046 Ryazan' Russia The Debtor can be reached at: LLC Tekh-Prom-Stroy Molodezhnaya St. 25a 390010 Ryazan' Russia TEREM LLC: Creditors Must File Claims by April 27 ------------------------------------------------- Creditors of LLC Terem (TIN 3329033710, PSRN 1053303600492, RVC 332901001) (Timber Houses Construction) have until April 27, 2009, to submit proofs of claims to: L. Nikitina Insolvency Manager Post User Box 122 600017 Vladimir Russia The Arbitration Court of Vladimirskiy commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A11�222/2009,. The Debtor can be reached at: LLC Terem Apt. 350 Bezymenskogo St. 11/6 600035 Vladimir Russia VOLGOGRAD PAINT: Creditors Must File Claims by May 27 ----------------------------------------------------- Creditors of LLC Volgograd Paint Materials Plant (TIN 3443061336, PSRN 1043400253907) have until May 27, 2009, to submit proofs of claims to: A. Kharkov Insolvency Manager Post User Box 1032 400105 Volgograd Russia The Arbitration Court of Volgogradskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A12�15015/2008. The Debtor can be reached at: LLC Volgograd Paint Materials Plant Pionerskaya St. 1 400012 Volgograd Russia WOOD-PROCESSING PLANT: Court Names as Insolvency Manager -------------------------------------------------------- The Arbitration Court of Ulyanovskaya appointed Yu.Soluyanova as Insolvency Manager for CJSC Wood-Processing Plant (TIN 7302008182, PSRN 1027300536284). The case is docketed under Case No. A72� 9531/05�21/50-B. He can be reached at: Post User Box 969 Dimitrovgrad-13 433513 Ulyanovskaya Russia The Debtor can be reached at: CJSC Wood-Processing Plant Zhukovskogo St. 6 Dimitrovgrad 433512 Ulyanovskaya Russia ========= S P A I N ========= AUTOPISTAS DE LEON: Moody's Withdraws Rating on EUR42 Mil. Notes ---------------------------------------------------------------- Moody's Investors Service has withdrawn the rating on the EUR42 million European Investment Bank loan facility due 2031, raised in 2001 by Autopistas de Leon, S.A., Concesionaria del Estado, and guaranteed by MBIA Insurance Corporation. Moody's has withdrawn this rating for business reasons. The rating withdrawal reflects Moody's current policy to withdraw ratings on MBIA--wrapped securities for which there is no published underlying rating. Should MBIA's rating subsequently move back into the investment grade range or should Aulesa subsequently publish the underlying rating, Moody's would reinstate the rating to the EIB Loan. The rating on the EIB Loan has been withdrawn. The last rating action was on February 18, 2009, when the insurance financial strength rating of MBIA was downgraded to B3 from Baa1. Aulesa is a special purpose company which holds a concession from the Spanish government to operate a 37.5 km four-lane toll road from the city of Astorga to the provincial capital of Leon in the autonomous region of Castilla-Leon in the northwest of Spain. Aulesa is a subsidiary of the Abertis group headquartered in Barcelona, Spain. ===================== S W I T Z E R L A N D ===================== C QUADRAT FONDS: Creditors Must File Proofs of Claim by May 22 -------------------------------------------------------------- Creditors owed money by JSC C Quadrat Fonds are requested to file their proofs of claim by May 22, 2009, to: Dr. Silvan Hurlimann Talstrasse 20 8001 Zurich Switzerland The company is currently undergoing liquidation in Zurich. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 30, 2008. CMHC LLC: Deadline to File Proofs of Claim Set May 27 ----------------------------------------------------- Creditors owed money by LLC CMHC are requested to file their proofs of claim by May 27, 2009, to: JSC ACT Audit & Tax Scheideggstrasse 73 8038 Zurich Switzerland The company is currently undergoing liquidation in Rolle. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Jan. 23, 2009. CRYSTAL CREDIT: More Losses Cue S&P's Junk Rating on Class C Notes ------------------------------------------------------------------ Standard & Poor's Ratings Services lowered and removed from CreditWatch negative its ratings on all the classes of principal- at-risk variable-rate notes issued by Crystal Credit Ltd., due to the deterioration in claim activity and increase in aggregate losses in that deal. This transaction involves the securitization of payments related to an indemnity-based excess-of-loss retrocession agreement between Swiss Reinsurance Co. and Crystal Credit, covering the risk on a defined portfolio of credit reinsurance treaties for the underwriting years 2006 to 2008. S&P has now received further information from Swiss Re, including confidential information regarding its reserving levels and additional analysis on the potential portfolio development under various scenarios. Based on this information S&P has concluded that the default probability has increased for all classes of notes issued by Crystal Credit, with the class C notes being most vulnerable to a principal loss by the final legal maturity of the notes. The worse-than-expected downturn in the global economic environment is the main driver behind the deterioration in claims activity for this securitized portfolio of credit reinsurance treaties. In particular, the portfolio has been hit by a steep increase in claims reported in the Spanish market. The exposure in Spain represented 16% of Swiss Re's portfolio by assigned credit limit as of December 2008. For the class C notes to incur a loss, aggregate losses have to reach EUR666 million. The last investor report provided by Swiss Re, which is based on information as of Feb. 22, states current reported aggregate losses to be ceded to Crystal Credit for the underwriting years 2006�2008 of EUR424 million. The aggregate gross amount of losses is EUR221 million for underwriting year 2006, EUR211 million for 2007, and EUR79 million for 2008. According to the terms of the retrocession agreement between Crystal Credit and Swiss Re, Swiss Re will retain at least 10% of the aggregate losses for each underwriting year. The ultimate percentage will depend on the gross reinsurance premium that Swiss Re receives for each underwriting year. Given the nature of the credit reinsurance business, it will take about two years for premiums and losses reported to Swiss Re to reach a stable level. As such, S&P don't expect much variability around the underwriting year 2006 reported figures. For the underwriting year 2008, on the other hand, the uncertainty remains high as some of the credit reinsurance treaties are still at risk (i.e., losses are still occurring) and premium and loss numbers have only started to be reported to Swiss Re. Although the treaties for the underwriting year 2007 are no longer at risk, the delay in reporting means that there is still significant uncertainty around the numbers reported to Swiss Re. Further, the 2007 losses are already close to the 2006 loss level and S&P expects that further losses will be reported. As a result, S&P has revised the ultimate loss ratio estimates used as a basis for S&P's analysis above the historical loss ratios. On March 30, S&P also received a notice that Swiss Re has appointed Towers, Perrin, Forster & Crosby, Inc., a professionally recognised actuarial firm, to act as the reserve validation firm according to the terms of the retrocession agreement between Crystal Credit and Swiss Re. If Swiss Re delivers a proof of loss in April 2012 which contains reported reserves greater than zero, TPFC will conduct a review of the reported reserves with a report being due 15 days after the delivery of proof of loss. KPMG Cayman Islands is the appointed claims reviewer. The extended maturity for all classes of notes is June 30, 2012. Swiss Re has the option to redeem one or more classes of notes before the extended maturity. S&P will continue to monitor the quarterly premium and loss reports and request further information from Swiss Re as S&P deems necessary until the maturity of the notes. Ratings List Crystal Credit Ltd. EUR252 Million Principal-At-Risk Variable-Rate Notes Ratings Lowered And Removed From CreditWatch Negative Rating ------ Class To From ----- -- ---- A BB+ BBB-/Watch Neg B B- BB/Watch Neg C CCC B/Watch Neg DAHAG ENGINEERING: Creditors Have Until May 22 to File Claims ------------------------------------------------------------- Creditors owed money by LLC Dahag Engineering are requested to file their proofs of claim by May 22, 2009, to: Dr. Silvan Hurlimann Talstrasse 20 8001 Zurich Switzerland The company is currently undergoing liquidation in Zurich. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 30, 2008. LOGISTIK CONSULTING: Proof of Claim Filing Deadline is June 22 -------------------------------------------------------------- Creditors owed money by LLC Logistik Consulting are requested to file their proofs of claim by June 22, 2009, to: Hochsuelstrasse 13 5722 Granichen Switzerland The company is currently undergoing liquidation in Granichen. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 2, 2008. M & M CAFE: Creditors' Proofs of Claim Due by May 25 ---------------------------------------------------- Creditors owed money by LLC M & M Cafe Turm are requested to file their proofs of claim by May 25, 2009, to: Gartenweg 2 6418 Rothenthurm Switzerland The company is currently undergoing liquidation in Rothenthurm. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Feb. 10, 2009. MARROCHA LLC: June 18 Set as Deadline to File Claims ---------------------------------------------------- Creditors owed money by LLC Marrocha are requested to file their proofs of claim by June 18, 2009, to: Rahim Zulkifli Hauptstrasse 46 4446 Buckten Switzerland The company is currently undergoing liquidation in Solothurn. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Feb. 18, 2009. MODERN CARS: Creditors Must File Proofs of Claim by June 2 ---------------------------------------------------------- Creditors owed money by LLC Modern Cars are requested to file their proofs of claim by June 2, 2009, to: Kessler Alice Kantonsstrasse 149 8807 Freienbach Switzerland The company is currently undergoing liquidation in Freienbach. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Feb. 3, 2008. NETSCOUT SYSTEMS: Deadline to File Proofs of Claim Set May 4 ------------------------------------------------------------ Creditors owed money by LLC NetScout Systems Switzerland are requested to file their proofs of claim by May 4, 2009, to: JSC CMS von Erlach Henrici Dreikonigstrasse 7 8022 Zurich Switzerland The company is currently undergoing liquidation in Zurich. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Jan. 22, 2009. OLW JSC: Creditors Have Until May 4 to File Claims -------------------------------------------------- Creditors owed money by JSC OLW are requested to file their proofs of claim by May 4, 2009, to: Mail Box: 1230 6431 Schwyz Switzerland The company is currently undergoing liquidation in Arth. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Feb. 4, 2009. SWISS ALTERNATIVE: Proof of Claim Filing Deadline is June 2 ----------------------------------------------------------- Creditors owed money by JSC Swiss Alternative Investment are requested to file their proofs of claim by June 2, 2009, to: Dr. Werner Erismann Company Arnold Wehinger Kaelin & Ferrari Riesbachstrasse 52 8008 Zurich Switzerland The company is currently undergoing liquidation in Lachen. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Jan. 12, 2009. ============= U K R A I N E ============= CONCERN SHAR: Creditors Must File Claims by April 16 ---------------------------------------------------- Creditors of LLC Concern Shar (EDRPOU 25411017) have until April 16, 2009, to submit proofs of claim to: I. Gusar Insolvency Manager Post Office Box 29 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 43/512. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy St. 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Concern Shar Build. 2 Lomonosov St. 34 Kiev Ukraine CORPORATION INDUSTRIAL: Fitch Cuts Issuer Default Rating to 'B-' ---------------------------------------------------------------- Fitch Ratings has downgraded Ukrainian-based steel producer Corporation Industrial Union of Donbass's Long-term Issuer Default Rating to 'B-' (B minus) from 'B'. The Outlook on the Long-term IDR is Negative. At the same time, the agency has affirmed the company's Short-term IDR at 'B'. Fitch has simultaneously withdrawn ISD's ratings. The agency will no longer provide ratings or analytical coverage on this issuer. The downgrade reflects Fitch's view that the current global recession and the associated volatility in the demand and pricing of steel products have weakened ISD's capacity for meeting its financial obligations and that as a result the company is likely to breach its financial covenants in FY09. The agency is forecasting a 30% reduction in ISD's production volume for 2009, which is likely to see the company record net debt/EBITDAR of between 3.0-3.5x in FY09 versus the covenanted 2.6x under its loan facilities. The Negative Outlook reflects Fitch's view that the Ukrainian metal and mining industry is expected to recover more slowly than the global metal and mining industry. ISD's high level of indebtedness and limited covenant headroom in a challenging debt and banking environment are also captured in the Negative Outlook. DK-TOOL LLC: Creditors Must File Claims by April 16 --------------------------------------------------- Creditors of LLC DK-Tool (EDRPOU 31241145) have until April 16, 2009, to submit proofs of claim to Y. Vanzhula, Insolvency Manager. The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 50/104. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy St. 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC DK-Tool M. Grushevsky St. 28/2 01021 Kiev Ukraine EVELCOM LLC: Creditors Must File Claims by April 16 --------------------------------------------------- Creditors of LLC Evelcom (EDRPOU 34602621) have until April 16, 2009, to submit proofs of claim to: E. Gavriliuk Insolvency Manager Office 87 Konstantinovskaya St. 63/12 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 43/75-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy St. 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Evelcom Yaroslavskaya St. 58 Kiev Ukraine FOLGAT ENGINEERING: Creditors Must File Claims by April 16 ---------------------------------------------------------- Creditors of LLC Folgat Engineering (EDRPOU 35134915) have until April 16, 2009, to submit proofs of claim to LLC Euromet Whole Sale Trade, Insolvency Manager. The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 44/80-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy St. 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Folgat Engineering Office 1 Vladimirskaya St. 7 01025 Kiev Ukraine GARDEN AND MARKET-GARDEN: Court Starts Bankruptcy Procedure ----------------------------------------------------------- The Economic Court of Sumy commenced bankruptcy supervision procedure on LLC Garden and Market-Garden (EDRPOU 21120843). The Temporary Insolvency Manager is: O. Maliovany Sumy and Kiev divisions St. 24/2 40024 Sumy Ukraine The Court is located at: The Economic Court of Sumy Shevchenko Avenue 18/1 40011 Sumy Ukraine The Debtor can be reached at: LLC Garden and Market-Garden Third Sumskaya St. 16-b 40030 Sumy Ukraine HYPERPIPE DELIVERY: Creditors Must File Claims by April 16 ---------------------------------------------------------- Creditors of LLC Hyperpipe Delivery (EDRPOU 34603513) have until April 16, 2009, to submit proofs of claim to: E. Gavriliuk Insolvency Manager Office 87 Konstantinovskaya St. 63/12 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 43/82-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy St. 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Hyperpipe Delivery Yaroslavskaya St. 58 Kiev Ukraine RIA INTERFORM: Creditors Must File Claims by April 16 ----------------------------------------------------- Creditors of LLC Ria Interform (EDRPOU 35529551) have until April 16, 2009, to submit proofs of claim to LLC Euromet Whole Sale Trade, Insolvency Manager. The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 44/76-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy St. 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Ria Interform V. Vasilevska St. 18 04116 Kiev Ukraine SEA TRANSPORT: Creditors Must File Claims by April 16 ----------------------------------------------------- Creditors of LLC Special Sea Transport (EDRPOU 32543201) have until April 16, 2009, to submit proofs of claim to: I. Zakharchenko Insolvency Manager Office 53 Oktiabrsky Avenue 325/4 54052 Nikolayev Ukraine The Economic Court of Nikolayev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 5/57/08. The Court is located at: The Economic Court of Nikolayev Admiralskaya St. 22-a 54009 Nikolayev Ukraine The Debtor can be reached at: LLC Special Sea Transport Mir Avenue 36 54034 Nikolayev Ukraine TA-BOR LLC: Creditors Must File Claims by April 16 -------------------------------------------------- Creditors of LLC Trading Company Ta-Bor (EDRPOU 35912173) have until April 16, 2009, to submit proofs of claim to LLC Vlas-Tech- Equipment, Insolvency Manager. The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 15/93-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy St. 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Trading Company Ta-Bor Office 1.203 Build. 'Club' Vasilkovskaya St. 03022 Kiev Ukraine VINOGRADNIK LLC: Creditors Must File Claims by April 16 ------------------------------------------------------- Creditors of LLC Vinogradnik (EDRPOU 30972589) have until April 16, 2009, to submit proofs of claim to: E. Gavriliuk Insolvency Manager Office 87 Konstantinovskaya St. 63/12 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 43/32-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy St. 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Vinogradnik Soviet Ukraine Avenue 5 Kiev Ukraine YUR-COM LLC: Creditors Must File Claims by April 16 --------------------------------------------------- Creditors of LLC Yur-Com (EDRPOU 34807066) have until April 16, 2009, to submit proofs of claim to Y. Vanzhula, Insolvency Manager. The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 44/27-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy St. 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC YUR-COM Kikvidze St. 11 01103 Kiev Ukraine =========================== U N I T E D K I N G D O M =========================== ABLE PRINT: Appoints Joint Liquidators from Tenon Recovery ---------------------------------------------------------- Jeremy Woodside and Christopher Ratten of Tenon Recovery were appointed joint liquidators of Able Print Services Ltd. on March 6, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through Tenon Recovery at: Arkwright House Parsonage Gardens Manchester M3 2LF England AXEON HOLDINGS: Bank Loan Covenants Still Uncertain --------------------------------------------------- The Scotsman's Hamish Rutherford reports that Axeon Holdings plc on Thursday said that it has yet to reach an agreement with its lender over its banking covenants. Axeon however assured investors that it continued to have the support of its main lender, the report notes. The report relates Axeon said it expects to have concluded the talks by the end of the month by which time it will have unveiled its 2008 results. The report recalls in February Axeon disclosed that it had obtained waivers from Ironshield Capital Management, its principal lender, over its debt until the end of February, and that it was seeking an extension of those waivers. In February, Axeon chief executive Lawrence Berns, as cited by the report, said the company's future will be determined by its bankers and the general direction of the economy, although he insisted it had a technological edge in the sector. Axeon Holdings plc -- http://www.axeon.com/-- is Europe's largest independent supplier of lithium-ion battery solutions, manufacturing over 5 million battery packs. Axeon designs and manufactures batteries and battery management systems for three main sectors: automotive; power tools; and mobile power solutions. BRITISH AIRWAYS: Maintains Loss Forecast, Layoffs Continue ---------------------------------------------------------- British Airways PLC expects to record an operating loss of GBP150 million (US$222 million) for the year ended March 31, in line with its previous outlook, Kaveri Niththyananthan at Dow Jones reports. The wider-than-expected operating loss, which doesn't include severance costs of about GBP75 million, is attributed to ongoing layoffs, the report says. According to the report, British Airways has been offering voluntary layoffs in response to the downturn hitting the global airline industry. Dow Jones recalls last October, some 450 of the 1,350 managers entitled to apply for voluntary departure took up the offer, and the airline said Friday that a further 300 would leave under the program at the end of May. British Airways also expects around GBP20 million to GBP25 million decrease in revenue after 13 straight months of declining traffic. Dow Jones says the airline carried 2.6 million passengers last month, down 8.2% from a year earlier, premium traffic dropped 13%, while non-premium traffic was down 6% from March 2008. About British Airways Headquartered in Harmondsworth, England, British Airways Plc (LON:BAY) -- http://www.ba.com/-- is engaged in the operation of international and domestic scheduled air services for the carriage of passengers, freight and mail, and the provision of ancillary services. The Company's principal place of business is Heathrow. The Company also operates a worldwide air cargo business with its scheduled passenger services. The Company operates international scheduled airline route networks, comprising some 300 destinations at March 31, 2008. During the fiscal year ended March 31, 2008 (fiscal 2008), British Airways carried more than 33 million passengers. It carried 805,000 tons of cargo to destinations in Europe, the Americas and worldwide. At March 31, 2008, it had 245 aircraft in service. In July 2008, British Airways plc completed the purchase of French airline L'Avion. * * * As reported in the Troubled Company Reporter-Europe on Mar. 10, 2009, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on U.K.-based British Airways PLC to 'BB+' from 'BBB-'. At the same time, the rating remains on CreditWatch with negative implications, where it was originally placed on Jan. 27, 2009. As reported in the Troubled Company Reporter-Europe on Feb. 13, 2009, Moody's lowered the Corporate Family Rating of British Airways to Ba1, and assigned a Probability of Default Rating of Ba1; the senior unsecured and subordinate ratings have been lowered to Ba2 and Ba3, respectively. The ratings remain under review for possible downgrade. CHELSEA HARBOUR: Duncar R. Beat Named Liquidator ------------------------------------------------ Duncan R. Beat of Tenon Recovery was appointed liquidator of Chelsea Harbour Motor Company Ltd. on March 5, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through Tenon Recovery at: 75 Springfield Road Chelmsford Essex CM2 6JB England CONIVAL PLC: Taps Joint Liquidators from Tenon Recovery ------------------------------------------------------- S. J. Parker and D. R. Beat of Tenon Recovery were appointed joint liquidators of Conival Plc. on March 10, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through Tenon Recovery at: Sherlock House 73 Baker Street London W1U 6RD England D & B RIDLEY: Appoints Joint Liquidators from PKF ------------------------------------------------- Matthew Gibson and Jonathan David Newell of PKF (UK) LLP were appointed joint liquidators of D & B Ridley Ltd. on March 3, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through PKF (UK) LLP at: Sovereign House Queen Street Manchester M2 5HR England LLOYDS BANKING: Moody's Cuts Subordinated Debt Rating ----------------------------------------------------- Moody's Investors Service has downgraded the subordinated and hybrid debt instruments issued by the two large banking groups in the UK with government shareholdings: Royal Bank of Scotland Group and Lloyds Banking Group. The subordinated or hybrid instruments of these banks have been affected by this action: * Royal Bank of Scotland: Subordinated debt rating downgraded to Baa3 from A1, and hybrid debt to Ba1 from A2, except the National Westminster Ba1 rated non cumulative preference shares with voting rights which is downgraded to Ba2; ratings are under review for further possible downgrade pending the completion of the review on the bank's C- BFSR * Royal Bank of Scotland Group: Subordinated debt rating downgraded to Ba1 from A2, and hybrid debt to Ba2 from A3, except the Ba2 rated non cumulative preference shares with voting rights which are downgraded to Ba3; ratings are under review for further possible downgrade pending the completion of the review on RBS' C- BFSR * Lloyds TSB Bank: Subordinated debt rating downgraded to A3 from A1 (negative outlook), and hybrid debt to Baa1 from A2 (remains under review for possible downgrade) * Lloyds Banking Group: Subordinated debt rating downgraded to Baa1 from A2 (negative outlook), and hybrid debt to Baa2 from A3 (remains under review for possible downgrade) * Bank of Scotland: Subordinated debt rating downgraded to Baa1 from A1, and hybrid debt to Baa2 from A2; ratings are under review for further possible downgrade pending the completion of the review on Bank of Scotland's C- BFSR * HBOS: Subordinated debt rating downgraded to Baa1 from A2, and hybrid debt to Baa2 from A3; ratings are under review for further possible downgrade pending the completion of the review on Bank of Scotland's C- BFSR The rating action was prompted by the rating agency's concern that systemic support may not be extended to these instruments in the case of financial distress. The 2009 Banking Act explicitly provides a broad remit to allow the restructuring of financial institutions with losses to subordinated and hybrid debt holders, and this has increasingly been the practice in the recent restructuring of a number of financial institutions in the UK. Therefore, it is Moody's opinion that the ratings of subordinated and hybrid instruments should be closely aligned to the bank's BFSR and no longer benefit from the support that is expected for senior creditors and depositors of these two large, systemically important institutions. In its Special Comment dated December 2008, Moody's began a dialogue with market participants regarding a potential change to its bank hybrid notching practices. The proposal explored the possibility of removing systemic support from bank hybrid ratings and considered wider notching based on the hybrid's risk characteristics. This process continues for banks generally, but as Moody's noted in its Special Comment, subordinated and hybrid ratings will be adjusted as appropriate should circumstances warrant as is the case for the subordinated and hybrid debt of these two banks. Moody's current ratings on banks' subordinated and hybrid securities generally reflect the assumption that if a government extends financial support to a bank in difficulty, that support would also benefit subordinated and hybrid investors. Moody's has observed that UK systemic support to banks has recently been limited to senior debt and deposits only. In the restructuring of the Dunfermline, Bradford & Bingley, and Northern Rock none of the subordinated or hybrid debt instruments benefit from government support measures, resulting in possible losses to investors; furthermore, the 2009 Banking Act has specifically provided a legal framework that enables such differentiating measures. Moody's therefore believes that the risk to such instruments is more closely aligned to the banks' other unsupported obligations, as indicated by the Bank Financial Strength Rating which maps into the alphanumerical Baseline Credit Assessment. Until now, Moody's has notched the ratings of these banks' subordinated and hybrid debt from the supported senior debt rating by one and two notches, respectively. Due to the potential lack of systemic support for these instruments, the anchor for subordinated and hybrid debt ratings issued by these institutions will be the BCA which maps from the intrinsic strength of the bank as indicated by Moody's published BFSR. Notwithstanding, in its rating of these subordinated and hybrid debt instruments Moody's continues to include the benefit of parental support for Bank of Scotland and HBOS. The actual notching for subordinated and hybrid debt relative to the anchor will remain unchanged reflecting the characteristics of the instruments, i.e. their relative subordination vis-a-vis each other in case of bankruptcy, apart from the non-cumulative preference shares with voting rights discussed below. The subordinated debt and hybrid issuance of Royal Bank of Scotland plc (and its holding company Royal Bank of Scotland Group), and Bank of Scotland plc (and its holding company HBOS plc) remain on review for further downgrade pending the completion of the review of the BFSRs of these entities, as the ratings will move in line with the BFSR. Downgrade of Non-Cumulative Preference Shares With Voting Rights Moody's has downgraded the non-cumulative preference shares with voting rights of the Royal Bank of Scotland Group from Ba2 to Ba3 at the holding company level, and from Ba1 to Ba2 at the operating bank level. The preference shares of Lloyds Banking Group were downgraded from A3 to Baa2 at the holding company level, and from A2 to Baa1 at the operating company level. These securities remain under review for possible downgrade, and the securities that are identified as non-cumulative preference shares with voting rights in certain circumstances and those that can get voting rights through a substitution for non-cumulative preference shares, will most likely be downgraded to Ba2 at the holding company level and Ba1 at the main operating company level. The lower rating of the RBS instruments reflects the higher percentage of government ownership and lower BFSR of RBS than Lloyds. As reflected in Moody's earlier downgrade of these instruments of RBS on March 11, 2009, Moody's considers that whereas the nationalization of these instruments is not Moody's central scenario, the potential loss to investors in such a situation, would be very high. Furthermore, Moody's are also concerned about the possibility of a distressed exchange -- whereby the bank would stop making coupon payments and offer to exchange these instruments into equity so that hybrid investors would share the risk of recapitalizing the bank with taxpayers. Moody's considers that the announcement by both banks of their participation in the UK Government's Asset Protection Scheme and the issuance of B-shares to the government, confirms Moody's core assumption that the UK government will try to avoid full nationalization of these banks. In addition, Moody's consider that the larger than expected scope of the APS will provide protection for holders of debt and hybrid instruments. Nevertheless, given the possibility of the UK government increasing its economic interest in both banks to high levels, the risk of full nationalization in the future has increased. The Treasury has not provided guidance on its approach to potential losses for hybrid debt holders in case of 100% government ownership, but ultimately Moody's would expect to see a very high level of loss for holders of non-cumulative preference shares with the above voting right features in the case of the nationalization, such as Moody's observed at Northern Rock. Downgrades: Issuer: Bank of Scotland Capital Funding L.P. -- Preferred Stock Preferred Stock, Downgraded to Baa2 from A2 Issuer: Bank of Scotland plc -- Junior Subordinated Regular Bond/Debenture, Downgraded to Baa1 from A1 -- Multiple Seniority Medium-Term Note Program, Downgraded to Baa1 from A1 -- Preference Stock Preference Stock, Downgraded to Baa2 from A2 -- Subordinate Regular Bond/Debenture, Downgraded to Baa1 from A1 Issuer: Cheltenham & Gloucester plc -- Junior Subordinated Regular Bond/Debenture, Downgraded to A3 from A1 -- Multiple Seniority Medium-Term Note Program, Downgraded to A3 from A1 Issuer: HBOS CAPITAL FUNDING NO. 3 L.P. -- Preferred Stock Preferred Stock, Downgraded to Baa2 from A3 Issuer: HBOS Capital Funding No. 1 L.P. -- Preferred Stock Preferred Stock, Downgraded to Baa2 from A3 Issuer: HBOS Capital Funding No. 4 L.P. -- Preferred Stock Preferred Stock, Downgraded to Baa2 from A3 Issuer: HBOS Group Euro Finance (Jersey) -- Preferred Stock Preferred Stock, Downgraded to Baa2 from A3 Issuer: HBOS Group Sterling Finance L.P. -- Preferred Stock Preferred Stock, Downgraded to Baa2 from A3 Issuer: HBOS plc -- Junior Subordinated Regular Bond/Debenture, Downgraded to Baa1 from A2 -- Multiple Seniority Medium-Term Note Program, Downgraded to Baa1 from A2 -- Subordinate Regular Bond/Debenture, Downgraded to Baa1 from A2 Issuer: Halifax plc -- Junior Subordinated Regular Bond/Debenture, Downgraded to Baa1 from A1 -- Subordinate Regular Bond/Debenture, Downgraded to Baa1 from A1 Issuer: Leeds Permanent Building Society -- Junior Subordinated Regular Bond/Debenture, Downgraded to Baa1 from A1 -- Subordinate Regular Bond/Debenture, Downgraded to Baa1 from A1 Issuer: Lloyds Banking Group plc -- Preference Stock Preference Stock, Downgraded to Baa2 from A3 -- Subordinate Regular Bond/Debenture, Downgraded to Baa1 from A2 Issuer: Lloyds TSB Bank Plc -- Junior Subordinated Regular Bond/Debenture, Downgraded to a range of Baa1 to A3 from a range of A2 to A1 -- Multiple Seniority Medium-Term Note Program, Downgraded to A3 from A1 -- Preferred Stock Preferred Stock, Downgraded to Baa1 from A2 -- Subordinate Regular Bond/Debenture, Downgraded to A3 from A1 Issuer: Lloyds TSB Capital 1 L.P. -- Preferred Stock Preferred Stock, Downgraded to Baa1 from A2 Issuer: Lloyds TSB Capital 2 L.P. -- Preferred Stock Preferred Stock, Downgraded to Baa1 from A2 Issuer: National Westminster Bank PLC -- Bank Financial Strength Rating, Downgraded to C- from B -- Junior Subordinated Conv./Exch. Bond/Debenture, Downgraded to Baa3 from A1 -- Junior Subordinated Regular Bond/Debenture, Downgraded to Baa3 from A1 -- Multiple Seniority Shelf, Downgraded to a range of (P)Ba1 to (P)Baa3 from a range of (P)A2 to (P)A1 -- Preference Stock Preference Stock, Downgraded to a range of Ba2 to Ba1 from a range of Ba1 to A2 -- Subordinate Regular Bond/Debenture, Downgraded to Baa3 from A1 Issuer: RBS Capital Trust A -- Junior Subordinated Regular Bond/Debenture, Downgraded to Ba3 from Ba2 Issuer: RBS Capital Trust B -- Preferred Stock Preferred Stock, Downgraded to Ba3 from Ba2 Issuer: RBS Capital Trust C -- Preferred Stock Preferred Stock, Downgraded to Ba3 from Ba2 Issuer: RBS Capital Trust D -- Preferred Stock Preferred Stock, Downgraded to Ba3 from Ba2 Issuer: RBS Capital Trust I -- Preferred Stock Preferred Stock, Downgraded to Ba3 from Ba2 Issuer: RBS Capital Trust II -- Preferred Stock Preferred Stock, Downgraded to Ba3 from Ba2 Issuer: RBS Capital Trust III -- Preferred Stock Preferred Stock, Downgraded to Ba3 from Ba2 Issuer: RBS Capital Trust IV -- Preferred Stock Preferred Stock, Downgraded to Ba3 from Ba2 Issuer: Royal Bank of Scotland Group plc -- Junior Subordinated Regular Bond/Debenture, Downgraded to a range of Ba2 to Ba1 from a range of A3 to A2 -- Multiple Seniority Medium-Term Note Program, Downgraded to Ba1 from A2 -- Multiple Seniority Shelf, Downgraded to a range of (P)Ba2 to (P)Ba1 from a range of (P)A3 to (P)A2 -- Preference Stock Preference Stock, Downgraded to a range of Ba3 to Ba2 from a range of Ba2 to A3 -- Preferred Stock Preferred Stock, Downgraded to a range of Ba3 to Ba2 from a range of Ba2 to A3 -- Subordinate Regular Bond/Debenture, Downgraded to Ba1 from A2 -- Senior Subordinated Regular Bond/Debenture, Downgraded to Ba1 from A2 Issuer: Royal Bank of Scotland plc -- Junior Subordinated Regular Bond/Debenture, Downgraded to Baa3 from A1 -- Multiple Seniority Medium-Term Note Program, Downgraded to Baa3 from A1 -- Subordinate Regular Bond/Debenture, Downgraded to Baa3 from A1 Issuer: Royal Bank of Scotland plc, Australia Branch -- Multiple Seniority Medium-Term Note Program, Downgraded to Baa3 from A1 Issuer: Scotland International Finance No. 2 B.V. -- Multiple Seniority Medium-Term Note Program, Downgraded to Baa1 from A1 -- Subordinate Regular Bond/Debenture, Downgraded to Baa1 from A1 On Review for Possible Downgrade: Issuer: Bank of Scotland plc -- Bank Financial Strength Rating, Placed on Review for Possible Downgrade, currently C- Outlook Actions: Issuer: Bank of Scotland Capital Funding L.P. -- Outlook, Changed To Rating Under Review From Stable Issuer: HBOS CAPITAL FUNDING NO. 3 L.P. -- Outlook, Changed To Rating Under Review From Stable Issuer: HBOS Capital Funding No. 1 L.P. -- Outlook, Changed To Rating Under Review From Stable Issuer: HBOS Capital Funding No. 4 L.P. -- Outlook, Changed To Rating Under Review From Stable Issuer: HBOS Group Euro Finance (Jersey) -- Outlook, Changed To Rating Under Review From Stable Issuer: HBOS Group Sterling Finance L.P. -- Outlook, Changed To Rating Under Review From Stable Issuer: HBOS plc -- Outlook, Changed To Rating Under Review From Stable Issuer: Halifax plc -- Outlook, Changed To Rating Under Review From Stable Issuer: Lloyds Banking Group plc -- Outlook, Changed To Rating Under Review From Stable Issuer: Lloyds TSB Bank Plc -- Outlook, Changed To Rating Under Review From Stable(m) Issuer: Lloyds TSB Capital 1 L.P. -- Outlook, Changed To Rating Under Review From Stable Issuer: Lloyds TSB Capital 2 L.P. -- Outlook, Changed To Rating Under Review From Stable Issuer: RBS Capital Trust A -- Outlook, Changed To Rating Under Review From Negative Issuer: RBS Capital Trust B -- Outlook, Changed To Rating Under Review From Negative Issuer: RBS Capital Trust C -- Outlook, Changed To Rating Under Review From Negative Issuer: RBS Capital Trust D -- Outlook, Changed To Rating Under Review From Negative Issuer: RBS Capital Trust I -- Outlook, Changed To Rating Under Review From Negative Issuer: RBS Capital Trust II -- Outlook, Changed To Rating Under Review From Negative Issuer: RBS Capital Trust III -- Outlook, Changed To Rating Under Review From Negative Issuer: RBS Capital Trust IV -- Outlook, Changed To Rating Under Review From Negative Issuer: Royal Bank of Scotland Group plc -- Outlook, Changed To Rating Under Review From Negative Issuer: Scotland International Finance No. 2 B.V. -- Outlook, Changed To Rating Under Review From Stable The last rating actions on the above banks' subordinated and hybrid debt ratings are: * Royal Bank of Scotland, 11 March 2009, non-cumulative preference shares downgraded to Ba1 * Royal Bank of Scotland Group, 11 March 2009, non-cumulative preference shares downgraded to Ba2 * Lloyds TSB Bank, 16 February 2009, subordinated and hybrid downgraded to A1/A2, stable outlook * Lloyds Banking Group, 16 February 2009, subordinated and hybrid downgraded to A2/A3, stable outlook * Bank of Scotland, 16 February 2009, subordinated and hybrid downgraded to A1/A2, stable outlook * HBOS, 16 February 2009, subordinated and hybrid downgraded to A2/A3, stable outlook. LYNMORE LTD: Brings in Joint Liquidators from BDO Stoy Hayward -------------------------------------------------------------- Geoffrey Stuart Kinlan and William John Turner of BDO Stoy Hayward LLP were appointed joint liquidators of The Lynmore Ltd. on March 4, 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 MANSARD MORTGAGES: S&P Cuts Ratings on Three Tranches to 'B' ------------------------------------------------------------ Standard & Poor's Ratings Services lowered and put on CreditWatch negative the ratings on three tranches and placed on CreditWatch negative 11 other tranches issued by Mansard Mortgages 2006-1 PLC, Mansard Mortgages 2007-1 PLC, and Mansard Mortgages 2007-2 PLC. The senior 'AAA' rated notes in Mansard 2006-1 and Mansard 2007-1 remain unaffected. The downgrades and CreditWatch placements follow deteriorating collateral performance in these transactions, including recent sharp increases in arrears. In the six months before the most recent interest payment date, total delinquencies (including repossessions) in Mansard 2006-1, Mansard 2007-1, and Mansard 2007-2 increased to 40.28%, 29.98%, and 17.70% from 19.13%, 17.12%, and 10.94%, respectively. Increasing effective loan-to-value ratios, caused by the continuing U.K. house price decline, have also negatively affected the transactions. This effect is most evident in Mansard 2007-2 where the underlying loans were originated in mid-2007, which is considered to have been the peak of the U.K. property market. The junior notes are most susceptible to worsening collateral performance, which has led us to downgrade the class B2a notes in Mansard 2006-1 and the class B2 notes in Mansard 2007-1 and Mansard 2007-2. The downgrades and CreditWatch negative placements are based on S&P's credit analysis of the underlying collateral. S&P will now carry out a detailed cash flow analysis of all three deals and will release the results of S&P's analysis, together with any effects on the ratings on the notes placed on CreditWatch, in due course. Ratings List Ratings Lowered and Placed on Creditwatch Negative Mansard Mortgages 2006-1 PLC GBP500 Million Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- B2a B/Watch Neg BB Mansard Mortgages 2007-1 PLC GBP250 Million Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- B2 B/Watch Neg BB Mansard Mortgages 2007-2 PLC GBP550 Million Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- B2 B/Watch Neg BB Ratings Placed on Creditwatch Negative Mansard Mortgages 2006-1 PLC GBP500 Million Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- M1a AA/Watch Neg AA M2a A/Watch Neg A B1a BBB/Watch Neg BBB Mansard Mortgages 2007-1 PLC GBP250 Million Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- M1 AA/Watch Neg AA M2 A/Watch Neg A B1 BBB/Watch Neg BBB Mansard Mortgages 2007-2 PLC GBP550 Million Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- A1 AAA/Watch Neg AAA A2 AAA/Watch Neg AAA M1 AA/Watch Neg AA M2 A/Watch Neg A B1 BBB/Watch Neg BBB ROYAL BANK: Mulls Further Layoffs to Reduce Cost ------------------------------------------------ The Royal Bank of Scotland Group plc said it will cut jobs in addition to 2,700 previously announced, Bloomberg News reports. The report relates the move comes as RBS plans to reduce costs by GBP2.5 billion (US$3.7 billion) over three years to help repay a GBP20 billion taxpayer bailout as quickly as possible. "We can only be honest and say that this will not be the end of the story and more are expected in the U.K. and internationally in the period ahead," Bloomberg News quoted Chairman Philip Hampton as saying in an advance copy of his speech to shareholders. As reported in the Troubled Company Reporter-Europe on Feb. 27, 2009, RBS incurred a GBP24.0 billion full year net loss from a net income of GBP6.8 billion in 2007, the bank's results for the full year ending Dec. 31, 2008 show. Total income for 2008 decreased 20% to GBP26.8 billion from GBP33.5 billion in 2007. About RBS The Royal Bank of Scotland Group plc (NYSE:RBS) -- http://www.rbs.com/-- is a holding company of The Royal Bank of Scotland plc (Royal Bank) and National Westminster Bank Plc (NatWest), which are United Kingdom-based clearing banks. The company's activities are organized in six business divisions: Corporate Markets (comprising Global Banking and Markets and United Kingdom Corporate Banking), Retail Markets (comprising Retail and Wealth Management), Ulster Bank, Citizens, RBS Insurance and Manufacturing. On October 17, 2007, RFS Holdings B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V., Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and controlled by RBS, completed the acquisition of ABN AMRO Holding N.V. (ABN AMRO). In July 2008, the company disposed its entire interest in Global Voice Group Ltd. ROYAL BANK: Shareholders OK Redemption of GBP5BB Preference Shares ------------------------------------------------------------------ Ragnhild Kjetland at Dow Jones Newswires reports The Royal Bank of Scotland Group plc's shareholders approved Friday a proposal to replace preference shares with ordinary shares. According to the report, by a 99.71% majority, shareholders voted to raise GBP5.37 billion by issuing new ordinary shares to redeem GBP5 billion in preference shares issued to the government in December. No ordinary shareholders took part in that capital hike, resulting in 57.9% government ownership of the bank, the report says. The report relates the bank chose to replace the preference shares because they came with a five-year dividend ban as well as a punitive 12% annual coupon. The Troubled Company Reporter-Europe on Mar. 2, 2009, citing The Wall Street Journal, reported that the U.K. government agreed to provide RBS with as much as GBP25.5 billion (US$36.64 billion) in capital and insure GBP300 billion of the bank's assets. The recent help given to RBS is part of U.K.'s GBP500 billion bank- insurance plan announced in January. Under the funding agreement, the Journal said RBS will pay a fee of GBP6.5 billion to participate in the insurance plan. The bank will also absorb the first GBP20 billion in losses on the GBP300 billion asset pool before the insurance kicks in, and will be responsible for 10% of subsequent losses, the Journal disclosed. RBS will also pay the insurance fee, and raise an additional GBP13 billion in fresh capital, by issuing special "B" shares to the government, according to the Journal. About RBS The Royal Bank of Scotland Group plc (NYSE:RBS) -- http://www.rbs.com/-- is a holding company of The Royal Bank of Scotland plc (Royal Bank) and National Westminster Bank Plc (NatWest), which are United Kingdom-based clearing banks. The company's activities are organized in six business divisions: Corporate Markets (comprising Global Banking and Markets and United Kingdom Corporate Banking), Retail Markets (comprising Retail and Wealth Management), Ulster Bank, Citizens, RBS Insurance and Manufacturing. On October 17, 2007, RFS Holdings B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V., Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and controlled by RBS, completed the acquisition of ABN AMRO Holding N.V. (ABN AMRO). In July 2008, the company disposed its entire interest in Global Voice Group Ltd. ROYAL BANK: Considers Brendan Nelson for a Board Post ----------------------------------------------------- The Royal Bank of Scotland Group plc has asked Brendan Nelson, a senior partner at accounting giant KPMG, to become a non-executive director, Reuters reports citing the Sunday Telegraph. RBS also lined up Mr. Nelson to head its audit committee, the report says. Rueters relates the Sunday Telegraph said Mr. Nelson has indicated his interest in the post but cited people close to the bank as saying the appointment could still fall through and other candidates were also being considered. About RBS The Royal Bank of Scotland Group plc (NYSE:RBS) -- http://www.rbs.com/-- is a holding company of The Royal Bank of Scotland plc (Royal Bank) and National Westminster Bank Plc (NatWest), which are United Kingdom-based clearing banks. The company's activities are organized in six business divisions: Corporate Markets (comprising Global Banking and Markets and United Kingdom Corporate Banking), Retail Markets (comprising Retail and Wealth Management), Ulster Bank, Citizens, RBS Insurance and Manufacturing. On October 17, 2007, RFS Holdings B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V., Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and controlled by RBS, completed the acquisition of ABN AMRO Holding N.V. (ABN AMRO). In July 2008, the company disposed its entire interest in Global Voice Group Ltd. ROYAL BANK: Shareholders Reject Salary Report --------------------------------------------- AFP reports that the shareholders of Royal Bank of Scotland voted down a key salary report for the group's top executives Friday last week. Citing a company spokesman, AFP discloses shareholders attending an annual general meeting in Edinburgh voted 90.42 percent in favor of rejecting the 2008 remuneration report, which includes a one-million-dollar annual pension for the group's outgoing chief executive Fred Goodwin. The rejection, AFP says, will have no impact on Mr. Goodwin's multi-million pound (dollar) pension. AFP notes that while RBS chairman Philip Hampton told shareholders in Edinburgh that the pension contract was legal, the executive said they're looking to see if there are any opportunities for redress. AFP relates in an interview with Sky News Mr. Hampton said that Mr. Goodwin was considering a "voluntary reduction" in his pension worth GBP703,000 a year (EUR772,000, US$1.04 million). However, according to the Telegraph, sources close to the former RBS chief executive insisted that although Mr. Goodwin had discussed the matter with Mr. Hampton, they had failed to reach an agreement and Mr. Goodwin now regarded the matter as closed. The Telegraph recalls Mr. Goodwin agreed to leave RBS after the government stepped in to save the bank last October with a taxpayer-funded bail-out. As part of his severance deal the company agreed to pay him his full pension from the age of 50, including a tax-free lump sum of GBP2.7 million, the Telegraph notes. As reported in the Troubled Company Reporter-Europe on Feb. 27, 2009, Bloomberg News said the Treasury, through its bank holding company U.K. Financial Investments, said in a Feb. 25 statement it has been "vigorously pursuing" with the new chairman of RBS how it can claw back "some or all of this pension." The bank has agreed to review Mr. Goodwin's entitlement and whether there is a legal basis to challenge it, the Treasury said in the statement obtained by Bloomberg News. The Troubled Company Reporter-Europe on Mar. 2, 2009, citing The Wall Street Journal, reported that the U.K. government agreed to provide RBS with as much as GBP25.5 billion (US$36.64 billion) in capital and insure GBP300 billion of the bank's assets. The recent help given to RBS is part of U.K.'s GBP500 billion bank- insurance plan announced in January. Under the funding agreement, the Journal said RBS will pay a fee of GBP6.5 billion to participate in the insurance plan. The bank will also absorb the first GBP20 billion in losses on the GBP300 billion asset pool before the insurance kicks in, and will be responsible for 10% of subsequent losses, the Journal disclosed. RBS will also pay the insurance fee, and raise an additional GBP13 billion in fresh capital, by issuing special "B" shares to the government, according to the Journal. About RBS The Royal Bank of Scotland Group plc (NYSE:RBS) -- http://www.rbs.com/-- is a holding company of The Royal Bank of Scotland plc (Royal Bank) and National Westminster Bank Plc (NatWest), which are United Kingdom-based clearing banks. The company's activities are organized in six business divisions: Corporate Markets (comprising Global Banking and Markets and United Kingdom Corporate Banking), Retail Markets (comprising Retail and Wealth Management), Ulster Bank, Citizens, RBS Insurance and Manufacturing. On October 17, 2007, RFS Holdings B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V., Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and controlled by RBS, completed the acquisition of ABN AMRO Holding N.V. (ABN AMRO). In July 2008, the company disposed its entire interest in Global Voice Group Ltd. ROYAL BANK: Moody's Downgrades Hybrid Debt Rating to 'Ba1' ---------------------------------------------------------- Moody's Investors Service has downgraded the subordinated and hybrid debt instruments issued by the two large banking groups in the UK with government shareholdings: Royal Bank of Scotland Group and Lloyds Banking Group. The subordinated or hybrid instruments of these banks have been affected by this action: * Royal Bank of Scotland: Subordinated debt rating downgraded to Baa3 from A1, and hybrid debt to Ba1 from A2, except the National Westminster Ba1 rated non cumulative preference shares with voting rights which is downgraded to Ba2; ratings are under review for further possible downgrade pending the completion of the review on the bank's C- BFSR * Royal Bank of Scotland Group: Subordinated debt rating downgraded to Ba1 from A2, and hybrid debt to Ba2 from A3, except the Ba2 rated non cumulative preference shares with voting rights which are downgraded to Ba3; ratings are under review for further possible downgrade pending the completion of the review on RBS' C- BFSR * Lloyds TSB Bank: Subordinated debt rating downgraded to A3 from A1 (negative outlook), and hybrid debt to Baa1 from A2 (remains under review for possible downgrade) * Lloyds Banking Group: Subordinated debt rating downgraded to Baa1 from A2 (negative outlook), and hybrid debt to Baa2 from A3 (remains under review for possible downgrade) * Bank of Scotland: Subordinated debt rating downgraded to Baa1 from A1, and hybrid debt to Baa2 from A2; ratings are under review for further possible downgrade pending the completion of the review on Bank of Scotland's C- BFSR * HBOS: Subordinated debt rating downgraded to Baa1 from A2, and hybrid debt to Baa2 from A3; ratings are under review for further possible downgrade pending the completion of the review on Bank of Scotland's C- BFSR The rating action was prompted by the rating agency's concern that systemic support may not be extended to these instruments in the case of financial distress. The 2009 Banking Act explicitly provides a broad remit to allow the restructuring of financial institutions with losses to subordinated and hybrid debt holders, and this has increasingly been the practice in the recent restructuring of a number of financial institutions in the UK. Therefore, it is Moody's opinion that the ratings of subordinated and hybrid instruments should be closely aligned to the bank's BFSR and no longer benefit from the support that is expected for senior creditors and depositors of these two large, systemically important institutions. In its Special Comment dated December 2008, Moody's began a dialogue with market participants regarding a potential change to its bank hybrid notching practices. The proposal explored the possibility of removing systemic support from bank hybrid ratings and considered wider notching based on the hybrid's risk characteristics. This process continues for banks generally, but as Moody's noted in its Special Comment, subordinated and hybrid ratings will be adjusted as appropriate should circumstances warrant as is the case for the subordinated and hybrid debt of these two banks. Moody's current ratings on banks' subordinated and hybrid securities generally reflect the assumption that if a government extends financial support to a bank in difficulty, that support would also benefit subordinated and hybrid investors. Moody's has observed that UK systemic support to banks has recently been limited to senior debt and deposits only. In the restructuring of the Dunfermline, Bradford & Bingley, and Northern Rock none of the subordinated or hybrid debt instruments benefit from government support measures, resulting in possible losses to investors; furthermore, the 2009 Banking Act has specifically provided a legal framework that enables such differentiating measures. Moody's therefore believes that the risk to such instruments is more closely aligned to the banks' other unsupported obligations, as indicated by the Bank Financial Strength Rating which maps into the alphanumerical Baseline Credit Assessment. Until now, Moody's has notched the ratings of these banks' subordinated and hybrid debt from the supported senior debt rating by one and two notches, respectively. Due to the potential lack of systemic support for these instruments, the anchor for subordinated and hybrid debt ratings issued by these institutions will be the BCA which maps from the intrinsic strength of the bank as indicated by Moody's published BFSR. Notwithstanding, in its rating of these subordinated and hybrid debt instruments Moody's continues to include the benefit of parental support for Bank of Scotland and HBOS. The actual notching for subordinated and hybrid debt relative to the anchor will remain unchanged reflecting the characteristics of the instruments, i.e. their relative subordination vis-a-vis each other in case of bankruptcy, apart from the non-cumulative preference shares with voting rights discussed below. The subordinated debt and hybrid issuance of Royal Bank of Scotland plc (and its holding company Royal Bank of Scotland Group), and Bank of Scotland plc (and its holding company HBOS plc) remain on review for further downgrade pending the completion of the review of the BFSRs of these entities, as the ratings will move in line with the BFSR. Downgrade Of Non-Cumulative Preference Shares With Voting Rights Moody's has downgraded the non-cumulative preference shares with voting rights of the Royal Bank of Scotland Group from Ba2 to Ba3 at the holding company level, and from Ba1 to Ba2 at the operating bank level. The preference shares of Lloyds Banking Group were downgraded from A3 to Baa2 at the holding company level, and from A2 to Baa1 at the operating company level. These securities remain under review for possible downgrade, and the securities that are identified as non-cumulative preference shares with voting rights in certain circumstances and those that can get voting rights through a substitution for non-cumulative preference shares, will most likely be downgraded to Ba2 at the holding company level and Ba1 at the main operating company level. The lower rating of the RBS instruments reflects the higher percentage of government ownership and lower BFSR of RBS than Lloyds. As reflected in Moody's earlier downgrade of these instruments of RBS on March 11, 2009, Moody's considers that whereas the nationalization of these instruments is not Moody's central scenario, the potential loss to investors in such a situation, would be very high. Furthermore, Moody's are also concerned about the possibility of a distressed exchange -- whereby the bank would stop making coupon payments and offer to exchange these instruments into equity so that hybrid investors would share the risk of recapitalizing the bank with taxpayers. Moody's considers that the announcement by both banks of their participation in the UK Government's Asset Protection Scheme and the issuance of B-shares to the government, confirms Moody's core assumption that the UK government will try to avoid full nationalization of these banks. In addition, Moody's consider that the larger than expected scope of the APS will provide protection for holders of debt and hybrid instruments. Nevertheless, given the possibility of the UK government increasing its economic interest in both banks to high levels, the risk of full nationalization in the future has increased. The Treasury has not provided guidance on its approach to potential losses for hybrid debt holders in case of 100% government ownership, but ultimately Moody's would expect to see a very high level of loss for holders of non-cumulative preference shares with the above voting right features in the case of the nationalization, such as Moody's observed at Northern Rock. Downgrades: Issuer: Bank of Scotland Capital Funding L.P. -- Preferred Stock Preferred Stock, Downgraded to Baa2 from A2 Issuer: Bank of Scotland plc -- Junior Subordinated Regular Bond/Debenture, Downgraded to Baa1 from A1 -- Multiple Seniority Medium-Term Note Program, Downgraded to Baa1 from A1 -- Preference Stock Preference Stock, Downgraded to Baa2 from A2 -- Subordinate Regular Bond/Debenture, Downgraded to Baa1 from A1 Issuer: Cheltenham & Gloucester plc -- Junior Subordinated Regular Bond/Debenture, Downgraded to A3 from A1 -- Multiple Seniority Medium-Term Note Program, Downgraded to A3 from A1 Issuer: HBOS CAPITAL FUNDING NO. 3 L.P. -- Preferred Stock Preferred Stock, Downgraded to Baa2 from A3 Issuer: HBOS Capital Funding No. 1 L.P. -- Preferred Stock Preferred Stock, Downgraded to Baa2 from A3 Issuer: HBOS Capital Funding No. 4 L.P. -- Preferred Stock Preferred Stock, Downgraded to Baa2 from A3 Issuer: HBOS Group Euro Finance (Jersey) -- Preferred Stock Preferred Stock, Downgraded to Baa2 from A3 Issuer: HBOS Group Sterling Finance L.P. -- Preferred Stock Preferred Stock, Downgraded to Baa2 from A3 Issuer: HBOS plc -- Junior Subordinated Regular Bond/Debenture, Downgraded to Baa1 from A2 -- Multiple Seniority Medium-Term Note Program, Downgraded to Baa1 from A2 -- Subordinate Regular Bond/Debenture, Downgraded to Baa1 from A2 Issuer: Halifax plc -- Junior Subordinated Regular Bond/Debenture, Downgraded to Baa1 from A1 -- Subordinate Regular Bond/Debenture, Downgraded to Baa1 from A1 Issuer: Leeds Permanent Building Society -- Junior Subordinated Regular Bond/Debenture, Downgraded to Baa1 from A1 -- Subordinate Regular Bond/Debenture, Downgraded to Baa1 from A1 Issuer: Lloyds Banking Group plc -- Preference Stock Preference Stock, Downgraded to Baa2 from A3 -- Subordinate Regular Bond/Debenture, Downgraded to Baa1 from A2 Issuer: Lloyds TSB Bank Plc -- Junior Subordinated Regular Bond/Debenture, Downgraded to a range of Baa1 to A3 from a range of A2 to A1 -- Multiple Seniority Medium-Term Note Program, Downgraded to A3 from A1 -- Preferred Stock Preferred Stock, Downgraded to Baa1 from A2 -- Subordinate Regular Bond/Debenture, Downgraded to A3 from A1 Issuer: Lloyds TSB Capital 1 L.P. -- Preferred Stock Preferred Stock, Downgraded to Baa1 from A2 Issuer: Lloyds TSB Capital 2 L.P. -- Preferred Stock Preferred Stock, Downgraded to Baa1 from A2 Issuer: National Westminster Bank PLC -- Bank Financial Strength Rating, Downgraded to C- from B -- Junior Subordinated Conv./Exch. Bond/Debenture, Downgraded to Baa3 from A1 -- Junior Subordinated Regular Bond/Debenture, Downgraded to Baa3 from A1 -- Multiple Seniority Shelf, Downgraded to a range of (P)Ba1 to (P)Baa3 from a range of (P)A2 to (P)A1 -- Preference Stock Preference Stock, Downgraded to a range of Ba2 to Ba1 from a range of Ba1 to A2 -- Subordinate Regular Bond/Debenture, Downgraded to Baa3 from A1 Issuer: RBS Capital Trust A -- Junior Subordinated Regular Bond/Debenture, Downgraded to Ba3 from Ba2 Issuer: RBS Capital Trust B -- Preferred Stock Preferred Stock, Downgraded to Ba3 from Ba2 Issuer: RBS Capital Trust C -- Preferred Stock Preferred Stock, Downgraded to Ba3 from Ba2 Issuer: RBS Capital Trust D -- Preferred Stock Preferred Stock, Downgraded to Ba3 from Ba2 Issuer: RBS Capital Trust I -- Preferred Stock Preferred Stock, Downgraded to Ba3 from Ba2 Issuer: RBS Capital Trust II -- Preferred Stock Preferred Stock, Downgraded to Ba3 from Ba2 Issuer: RBS Capital Trust III -- Preferred Stock Preferred Stock, Downgraded to Ba3 from Ba2 Issuer: RBS Capital Trust IV -- Preferred Stock Preferred Stock, Downgraded to Ba3 from Ba2 Issuer: Royal Bank of Scotland Group plc -- Junior Subordinated Regular Bond/Debenture, Downgraded to a range of Ba2 to Ba1 from a range of A3 to A2 -- Multiple Seniority Medium-Term Note Program, Downgraded to Ba1 from A2 -- Multiple Seniority Shelf, Downgraded to a range of (P)Ba2 to (P)Ba1 from a range of (P)A3 to (P)A2 -- Preference Stock Preference Stock, Downgraded to a range of Ba3 to Ba2 from a range of Ba2 to A3 -- Preferred Stock Preferred Stock, Downgraded to a range of Ba3 to Ba2 from a range of Ba2 to A3 -- Subordinate Regular Bond/Debenture, Downgraded to Ba1 from A2 -- Senior Subordinated Regular Bond/Debenture, Downgraded to Ba1 from A2 Issuer: Royal Bank of Scotland plc -- Junior Subordinated Regular Bond/Debenture, Downgraded to Baa3 from A1 -- Multiple Seniority Medium-Term Note Program, Downgraded to Baa3 from A1 -- Subordinate Regular Bond/Debenture, Downgraded to Baa3 from A1 Issuer: Royal Bank of Scotland plc, Australia Branch -- Multiple Seniority Medium-Term Note Program, Downgraded to Baa3 from A1 Issuer: Scotland International Finance No. 2 B.V. -- Multiple Seniority Medium-Term Note Program, Downgraded to Baa1 from A1 -- Subordinate Regular Bond/Debenture, Downgraded to Baa1 from A1 On Review for Possible Downgrade: Issuer: Bank of Scotland plc -- Bank Financial Strength Rating, Placed on Review for Possible Downgrade, currently C- Outlook Actions: Issuer: Bank of Scotland Capital Funding L.P. -- Outlook, Changed To Rating Under Review From Stable Issuer: HBOS CAPITAL FUNDING NO. 3 L.P. -- Outlook, Changed To Rating Under Review From Stable Issuer: HBOS Capital Funding No. 1 L.P. -- Outlook, Changed To Rating Under Review From Stable Issuer: HBOS Capital Funding No. 4 L.P. -- Outlook, Changed To Rating Under Review From Stable Issuer: HBOS Group Euro Finance (Jersey) -- Outlook, Changed To Rating Under Review From Stable Issuer: HBOS Group Sterling Finance L.P. -- Outlook, Changed To Rating Under Review From Stable Issuer: HBOS plc -- Outlook, Changed To Rating Under Review From Stable Issuer: Halifax plc -- Outlook, Changed To Rating Under Review From Stable Issuer: Lloyds Banking Group plc -- Outlook, Changed To Rating Under Review From Stable Issuer: Lloyds TSB Bank Plc -- Outlook, Changed To Rating Under Review From Stable(m) Issuer: Lloyds TSB Capital 1 L.P. -- Outlook, Changed To Rating Under Review From Stable Issuer: Lloyds TSB Capital 2 L.P. -- Outlook, Changed To Rating Under Review From Stable Issuer: RBS Capital Trust A -- Outlook, Changed To Rating Under Review From Negative Issuer: RBS Capital Trust B -- Outlook, Changed To Rating Under Review From Negative Issuer: RBS Capital Trust C -- Outlook, Changed To Rating Under Review From Negative Issuer: RBS Capital Trust D -- Outlook, Changed To Rating Under Review From Negative Issuer: RBS Capital Trust I -- Outlook, Changed To Rating Under Review From Negative Issuer: RBS Capital Trust II -- Outlook, Changed To Rating Under Review From Negative Issuer: RBS Capital Trust III -- Outlook, Changed To Rating Under Review From Negative Issuer: RBS Capital Trust IV -- Outlook, Changed To Rating Under Review From Negative Issuer: Royal Bank of Scotland Group plc -- Outlook, Changed To Rating Under Review From Negative Issuer: Scotland International Finance No. 2 B.V. -- Outlook, Changed To Rating Under Review From Stable The last rating actions on the above banks' subordinated and hybrid debt ratings are: * Royal Bank of Scotland, 11 March 2009, non-cumulative preference shares downgraded to Ba1 * Royal Bank of Scotland Group, 11 March 2009, non-cumulative preference shares downgraded to Ba2 * Lloyds TSB Bank, 16 February 2009, subordinated and hybrid downgraded to A1/A2, stable outlook * Lloyds Banking Group, 16 February 2009, subordinated and hybrid downgraded to A2/A3, stable outlook * Bank of Scotland, 16 February 2009, subordinated and hybrid downgraded to A1/A2, stable outlook * HBOS, 16 February 2009, subordinated and hybrid downgraded to A2/A3, stable outlook. TATA MOTORS: In Talks to Refinance US$2 Bln of JLR Bridge Loan -------------------------------------------------------------- Abhineet Kumar at Business Standard reports that Tata Motors is in talks with its lenders to refinance about US$2 billion of the US$3 billion bridge loan it took in June last year to acquire the Jaguar and Land Rover (JLR) brands from Ford. The company, the report recalls, had repaid US$1 billion of the bridge loan from the proceeds of a rights issue and stake sales in group firms Tata Steel and Tata Teleservices to other Tata companies. The report relates the company asked its lenders to refinance the remaining US$2 billion as a term loan. According to the report, the company could not raise the remaining amount by April, as originally planned, owing to the tightening global market following the sub-prime meltdown. The bridge loan, whose lead managers include Citigroup and JP Morgan, is due for repayment on June 1, the report notes. Citing a banker familiar with the developments, the report says it will take at least four to six weeks before the refinancing issues are finalized as the banks are renegotiating the loan terms. Equity Issue Tata Motors has postponed plans for an overseas equity issue and sale of investments, although a company spokesperson said it "will continue to pursue further divestment plans as outlined earlier, judiciously and in the right market conditions". About Tata Motors India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the company. The company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. TML is listed on the Bombay Stock Exchange, the National Stock Exchange of India and New York Stock Exchange. It was ultimately 33.4% owned by the Tata Group as of December 2007. Tata Motors has operations in Russia and the United Kingdom. * * * As reported in the Troubled Company Reporter-Asia Pacific on Mar. 27, 2009, Standard & Poor's Ratings Services lowered its corporate credit rating on India-based automaker Tata Motors Ltd. to 'B+' from 'BB-'. The rating remains on CreditWatch with negative implications, where it was placed on Dec. 12, 2008. At the same time, S&P lowered its issue rating on the company's senior unsecured notes to 'B+' from 'BB-' and also kept the rating on CreditWatch with negative implications. The rating action follows material deterioration in Tata Motors' cash flows and related metrics on a consolidated basis, derived from an adverse operating environment, which, combined with significantly high debt levels, will affect its credit protection measures beyond those consistent with a 'BB' rating category. TATA STEEL: Fitch Cuts Long-Term Foreign Currency IDR to 'B+' ------------------------------------------------------------- Fitch Ratings has downgraded Tata Steel Limited's Long-term foreign currency Issuer Default Rating to 'BB+' from 'BBB-' (BBB minus), and its National Long-term rating to 'AA(ind)' from 'AAA(ind)'. Simultaneously, Fitch has also downgraded Tata Steel U.K. Ltd's Long-term foreign currency IDR to 'B+' from 'BB'. The Outlook on all the ratings continues to be Negative. The instruments impacted by this rating action are listed at the end of this Rating Action Commentary. The downgrade reflects a sharp correction in global demand for steel products in the past six months, the impact of which has been severe in Europe, in turn impacting the profitability and credit metrics of TSUK. While TSL's India operations have also been impacted by the sharp drop in prices, the volume impact has been cushioned to an extent by continuing demand from the construction and infrastructure space. Fitch notes that the management of TSL has responded by scaling back its capex plans from approx. US$11 billion to approx. US$4.8 billion for FY09- FY11, and has initiated measures to improve efficiencies by restructuring some of its assets at TSUK as well as divesting some of its uneconomical and non core assets. TSUK has also benefited from significant cost reductions in the past six months which are expected to provide benefits to the extent of approx. GBP600 million. While Fitch has incorporated into its forecasts the benefits of these initiatives coupled with the expected benefits of raw material price reductions, these -- in Fitch's opinion -- would not be adequate to compensate for the sharp drop in profitability at TSUK. Consequently, Fitch expects financial leverage for the consolidated entity to revert from its deleveraging trend and increase to beyond the 3.5x net debt to EBITDA level indicated previously as a negative rating trigger. The agency continues to take a consolidated view on TSL in line with its Parent and Subsidiary Rating Linkage methodology -- with TSUK's rating benefiting from potential parental support despite TSUK's acquisition debt remaining non-recourse to TSL. However, the extent of this potential parental support factored in has been reduced, placing the foreign currency IDR of TSUK at 'B+'. The Negative Outlook continues to reflect the uncertainty over demand and prices (especially in Europe), and also takes into account the recent deterioration in conditions in Europe during the past few weeks which could potentially impact TSUK more than anticipated presently. However, Fitch notes that TSUK's more modest capex plans do provide it with some additional flexibility and potentially therefore some downside protection. In any event, a financial leverage ratio in excess of 4.0x net debt to EBITDA on a sustained basis would act as a negative trigger for the ratings. Fitch has also reviewed the ability of the Tata group to provide support to TSL. While the agency notes the sharp drop in valuations of key listed entities in the group -- potentially limiting its ability to provide support to all group companies -- it has drawn comfort from the valuations of some of the group's unlisted entities, providing it with additional financial flexibility not factored in at the time of Fitch's last review. Additionally, in the context of potential group support, Fitch's draws comfort from its assessment of the strategic importance of TSL to the Tata group. Therefore, Fitch continues to provide a one-notch benefit to TSL's Long-term foreign currency IDR and National Long-term rating on account of expected support. Any weakening of linkages between the group and TSL, and/or the group's inability to provide support would continue to act as negative triggers to the rating. The revised ratings continue to reflect the strength of TSL's low cost operations in India, with captive sources of iron-ore and coal. The liquidity profile of the group remains satisfactory, with repayments of its debt obligations being fairly back ended. While Fitch expects EBITDA generation to remain under pressure, the consolidated entity would benefit from the release of working capital on account of lower production and expectation of lower iron-ore and coal prices for its TSUK operations. With existing cash balances of US$1.36 billion and undrawn lines of US$933 million as at March 31, 2009, TSL's liquidity position is expected to remain comfortable. However, Fitch notes that the drop in EBITDA at TSUK could potentially lead to a breach of some of its covenants stipulated in the financing agreements. TSL has initiated discussions with its bankers to resolve this issue and Fitch would continue to monitor this closely. TSL is the flagship of the Tata Group and the sixth-largest steel producer in the world. TSL's revenue composition remains tilted towards Europe, which contributed 69% of revenues in FY08, with India contributing 15%, Asia contributing12% and 5% from other markets. Fitch has also downgraded the ratings on TSL and TSUK's debt instruments: TSL: -- Long Term Debt aggregating INR58.5 billion: National Long-term rating at 'AA(ind)'; -- Non-Convertible Debenture Issue of INR20 billion: National Long-term rating at 'AA (ind)'; -- Non-Convertible Debenture Issue of INR15 billion: National Long-term rating at 'AA (ind)'; -- Fund Based Cash Credit Limits of INR10.6 billion and Non-Fund Based Limits of INR23.40 billion: National Long- term rating at 'AA(ind)'; -- Fund Based Limits of INR7.25 billion and Non-Fund Based Limits of INR7.6 billion: National Short-term rating at 'F1+(ind)'; and Commercial Paper/Short Term Debt of INR9.75 billion: National Short-term rating of 'F1+(ind)'. TSUK and its subsidiaries: -- Senior Secured Bank Loan Facilities aggregating GBP3.67 billion: Long-term rating at 'BB-' (BB minus). URSUS EPC: Moody's Junks Ratings on Two Classes of Notes -------------------------------------------------------- Moody's Investors Service has downgraded these classes of Notes issued by Ursus EPC p.l.c. (amounts reflecting initial outstandings): -- GBP114,900,000 Class A Commercial Mortgage Backed Floating Rate Notes due 2012 downgraded to A1, previously on 4 August 2005 assigned Aaa; -- GBP9,700,000 Class B Commercial Mortgage Backed Floating Rate Notes due 2012 downgraded to Baa3 , previously on 4 August 2005 assigned Aa2; -- GBP9,700,000 Class C Commercial Mortgage Backed Floating Rate Notes due 2012 downgraded to Ba3, previously on 4 August 2005 assigned A2; -- GBP9,500,000 Class D Commercial Mortgage Backed Floating Rate Notes due 2012 downgraded to Caa1, previously on 4 August 2005 assigned Baa3; -- GBP5,388,221 Class E Commercial Mortgage Backed Floating Rate Notes due 2012 downgraded to Ca, previously on 4 August 2005 assigned Ba3. At the same time Moody's has affirmed the ratings of the Class X1, X3 and X4 Notes. Moody's has not rated the Class X2 and V Notes issued by Ursus EPC p.l.c. The rating action concludes a review for possible downgrade that was initiated for the Class A, Class B, Class C, Class D and Class E Notes on 10 February 2009. Ursus EPC p.l.c. closed in August 2005 and represents the true- sale securitization of initially nine commercial mortgage loans that were secured by 23 properties throughout the UK. Five of the loans prepaid reducing the pool balance to approximately GBP47.5m as of January 2009. Currently four loans remain in the pool secured by eight properties; (i) the Castlegate Shopping Centre Loan (76% of the current pool balance) secured by a single shopping centre located in Stockton-on-Tees, (ii) the TK Maxx Loan (16.5% of the current pool balance) secured by a distribution warehouse in Wakefield, (iii) the Lamorna Loan (6% of the current pool balance) secured by 5 properties dominated by retail in London and (iv) the Shazr Loan (1.5% of the current pool balance) secured by a single mixed use building located in London. The Lamorna Loan and the Shazr Loan are cross defaulted. The downgrade was prompted by (i) the refinancing profile of the transaction with all loans maturing in 2009 or 2010, (ii) the observed negative value development of the properties in the portfolio and expected further declines in value throughout 2009, and (iii) the anticipated work-out strategy in relation to potentially defaulting loans. Property values in the UK have been declining over the course of 2008 and are expected to decline further until 2010. Moody's anticipates that the transaction's average loan-to-value will reach 109% in late 2009/early 2010 with the loan's individual LTVs ranging between 89% and 114%. Combined with commercial real estate and lending markets that are expected to remain stalled, this results in a significant refinancing risk for the remaining loans in the portfolio. As Moody's does not expect a meaningful recovery of the UK commercial real estate market until the transaction's legal final maturity in 2012, ultimate principal losses for more junior classes of Notes are very likely. Due to Moody's anticipation that upon loan defaults, the servicer will not pursue an immediate sale of the respective property security, the more senior classes of Notes face the risk of higher than currently expected real estate value declines and deteriorating occupational markets. The biggest loan in the remaining portfolio, the Castlegate Shopping Center Loan, is secured by a 1972 built shopping center in Stockton-on-Tees. The interest only loan matures in April 2010. The property is let to 72 tenants. The main tenant Woolworths (12% of current rent) is in administration since November 2008. Other larger tenants include Wilkinsons Hardware and Boots. The vacancy rate in the center (not taking into account the Woolworths space) is 6% on a sqft basis. About 16% of the leases (by rent payable) expire during the remaining term of the loan. Without the Woolworths tenancy, the weighted average remaining lease term is above 10 years driven by some very long leases. Since closing of the transaction in August 2005, the property cash flows have been in line with Moody's expectations. The underwriter's ICR has slightly increased until the last IPD, when it dropped from 1.5x to 1.28x mainly due to the exclusion of Woolworth rental income. So far, the property has been revalued on a semi-annual basis at the borrower's discretion with the last update in September 2008. As of September 2008, the U/W market value declined by approximately 1.5% to GBP47.3 million compared to 48.0 million in March 2008. The U/W market value of the shopping center at closing was GBP45.1 million. In Moody's opinion, the value of the shopping center has declined significantly in 2008, especially in Q4 2008. After incorporating a further value decline over the coming quarters, Moody's anticipates that the value will fall to GBP31.6 million ("trough value") late 2009 / early 2010, which represents a net initial yield of 9.1% (disregarding Woolworths income) and a 30% decline since closing in 2005. Consequently, the Moody's LTV at or around the loan's maturity in April 2010 is 114% which in Moody's view makes a refinancing at that date unlikely, even if commercial real estate lending markets recover to some extend until then. For the remaining three loans, Moody's also adjusted its refinancing risk assessment and its value assumptions. Moody's Model Value changes resulted in a Moody's LTV of 98% (reflecting a 29% value decline compared to the U/W value at closing) for the TK Maxx Loan and a combined Moody's LTV for the Lamorna Loan and Shazr Loan of 88% (reflecting a 32% decline compared to the U/W value at closing). These value assumptions and corresponding LTV's take into account Moody's expected trough values late 2009/early 2010. In Moody's view, as for the Castlegate Shopping Center Loan, given the current and anticipated state of the UK commercial real estate lending and investment markets over 2009 and 2010, a refinancing of the loans in October 2009 (Lamorna Loan and Shazr Loan) and April 2010 (TK Maxx Loan) is unlikely. Moody's expects that in case of a loan default, the servicer would not pursue an immediate sale of the property in the currently depressed market. Such an immediate sale would crystallize a loss in the transaction. The rental cash flows generated by the mortgaged properties are expected to remain relatively stable; for example, the TK Maxx Loan benefits from a lease with NBC Apparel until March 2015; NBC Apparel's rental payments are guaranteed by TJX Companies (A3). Moody's anticipates that the servicer's strategy would include a stand-still and collection of rental cash flows as part of loan recovery. Moody's has incorporated this expectation into its analysis, hereby assuming a moderate increase of property values from 2011 onwards. Moody's currently expects that potential work-out strategies will be defined taking into account the legal final maturity of the transaction in July 2012. Given the heightened default risk of the securitized loans, recovery aspects, which can be measured by note-to-value levels, become important. Based on Moody's assumed trough values, the Class D NTV is 102% and the Class E NTV is 109%. As such, in Moody's central scenario, principal losses on those junior Classes of Notes are highly likely, bearing in mind that no meaningful property value recovery back to 2008 levels is expected until the legal final maturity of the transaction. For more senior classes of Notes, which still show NTVs of below 100% based on trough values, the risk of more than currently expected value declines has substantially increased. In the possible scenario that the loans default on their respective maturity dates, potentially arising special servicing fees rank senior to Note interest payments in the waterfall. As these fees are not absorbed by the Class X Notes, this increases the risk of interest shortfalls on the Notes. Moody's downgrade of the Class E Notes considers this additional risk. Moody's affirmed the ratings of the Classes X1, X3 and X4 Notes. The Class X Notes are entitled to receive prepayment fees in connection with the underlying loans and the difference between (i) interest payable on the loans and (ii) interest payable on the Notes and certain costs. The liquidity facility can be used to cover potential interest shortfalls on the Class X Notes. In relation to principal, the Class X Notes benefit from equivalent amounts deposited on the Class X Account. Given these characteristics, the ratings of the Class X Notes are not affected by the increased credit risk of the loan portfolio. * Large Companies with Insolvent Balance Sheet ---------------------------------------------- Shareholders Total Working Equity Assets Capital Ticker (US$MM) (US$MM) (US$MM) ------ ----------- ------- -------- AUSTRIA ------- Libro AG (110) 174 (168) Sky Europe (4) 213 (54) BELGIUM ------- Sabena S.A. (85) 2,215 (279) CYPRUS ------ Allbury Travel (5) 275 (100) Libra Holidays (5) 275 (100) CZECH REPUBLIC -------------- Ceskomoravska Kolben & Danek Praha Holding (89) 192 (59) Setuza A.S. (61) 139 (62) DENMARK ------- Elite Shipping (28) 101 3 Roskilde Bank (533) 7,877 N.A. FRANCE ------ BSN Glasspack (101) 1,151 159 Grande Paroisse S.A. (927) 629 347 Immob Hoteliere (67) 301 (17) Lab Dosilos (28) 110 (44) Matussiere et Forest S.A MTF (78) 294 (38) Pagesjaunes GRP PAJ (3,023) 1,377 (453) Rhodia SA (342) 6,507 712 SDR Centrest (132) (252) N.A. Selcodis S.A. SPVX (21) 141 (36) Trouvay Cauvin (0) 134 9 GERMANY ------- Alno AG ANO (21) 340 (88) Brokat AG (27) 144 109 CBB Holding AG COB (43) 905 N.A. Cinemaxx AG MXC (38) 178 (47) Dortmunder Actien-Brauerei DABG (13) 118 (27) EECH Group AG 0 109 57 EM.TV AG EV4G.BE (22) 849 19 Kaufring AG KAUG (19) 151 (48) Kunert AG (28) 102 29 Maternus Kliniken AG MAK.F (17) 182 (99) Nordsee AG (8) 195 (14) P & T Technology 0 109 57 Primacom AG PRC (14) 730 (68) Rinol AG 0 168 (6) Sander AG (6) 128 32 Sinnleffers AG (4) 454 (182) Spar Handels- AG SPAG (442) 1,433 (294) TA Triumph-Adler TWN (66) 484 (77) Vivanco Gruppe (10) 131 28 GREECE ------ Empedos SA (34) 175 (57) Noussa Spin (11) 450 (107) Petzetakis-PFC PETZP (15) 294 (143) Radio A.Korassidis KORA (101) 181 (165) Commercial Themeliodome (56) 232 (128) United Textiles (11) 450 (107) HUNGARY ------- Brodograde Indus (322) 264 (366) IPK Osijek DD OS (15) 124 (82) OT Optima Teleko (26) 119 7 ICELAND ------- Decode Genetics (187) 111 48 IRELAND ------- Elan Corp PLC ELN (388) 1,599 705 Waterford Wed Ut WTFU (506) 821 364 ITALY ----- Binda S.p.A. BND (11) 129 (23) Cirio Finanziaria S.p.A. (422) 1,583 N.A. Gruppo Coin S.p.A. GC (152) 791 (61) Compagnia Italia ICT (138) 527 (318) Credito Fondiario e Industriale S.p.A. (200) 4,213 N.A. Fullsix (4) 114 (18) I Viaggi del Ventaglio S.p.A. VVE (73) 540 (127) Lazzio S.p.A. (15) 261 (40) Olcese S.p.A. OLCI.MI (13) 180 (80) Parmalat Finanziaria S.p.A. (18,4219) 4,121 (16,919) Snia S.p.A. SN (25) 488 31 Technodiffusione Italia S.p.A. TDIFF.PK (90) 152 (30) LUXEMBOURG ---------- Carrier1 International S.A. (95) 472 393 NETHERLANDS ----------- Baan Company N.V. BAAN (8) 610 46 James Hardie Ind. (238) 2,357 184 United Pan-Euro Air UPC (5,505) 5,113 (9,170) NORWAY ------ Interoil Exploration IOX (25) 210 (11) Petroleum-Geo Services PGO (18) 400 (758) POLAND ------ Toora (289) 147 (86) PORTUGAL -------- Lisgrafica Impressao e Artes Graficas SA LIG (4) 117 (27) ROMANIA ------- Oltchim RM Valce OLT (7) 673 (170) Rafo Onesti RAF (430) 353 (616) RUSSIA ------ Akcionernoe Brd (117) 135 (24) East Siberia Brd VSNK (113) 148 (11) Gukovugol (58) 144 (148) OAO Samaraneftegas (332) 892 (611) Vanadiy-Tula-Brd (12) 105 (3) Vimpel Ship SOVP (116) 135 (24) Zil Auto ZILLP (240) 478 (447) SWITZERLAND ----------- Fortune Management (119) 265 (54) TURKEY ------ Egs Ege Giyim VE (7) 147 (25) Iktisat Financial (46) 108 N.A. Mudurnu Tavukcul (65) 160 (115) Nergis Holding (77) 299 38 Sifas (17) 117 21 Yasarbank (4,025) 2,644 N.A. UKRAINE ------- Dniprooblenergo DNON (51) 433 (200) Donetskoblenergo DOON (367) 631 (469) UNITED KINGDOM -------------- Advance Display (3,016) 2,590 (411) Airtours Plc (379) 1,818 (932) Alldays Plc (120) 252 (290) Amer Bus Sys (497) 121 (497) Amey Plc AMY (49) 932 (76) Anker Plc (22) 115 16 Atkins (WS) Plc ATK (46) 1,345 58 Black & Edgingto (140) 203 23 BNB Recruitment (10) 104 38 Booker Plc BKRUY (60) 1,298 (13) Bradstock Group BDK (2) 269 7 British Energy Ltd (5,823) 4,921 534 British Energy Plc BGY (5,823) 4,921 534 British Sky Broadcast (334) 8,126 (388) Carlisle Group (12) 204 30 Compass Group CPG (668) 2,972 (440) Danka Bus (497) 121 (497) Dawson Holdings (18) 226 (63) Dignity Plc DTY (9) 648 71 E-II Holdings (199) 651 149 Easynet Group ESY.L (45) 323 68 Electrical and Music Industries Group EMI (2,266) 2,950 (582) European Home (14) 111 (70) Farepak Plc (14) 111 (70) Gartland Whalley (11) 145 (13) Hilton Food Group (21) 256 (12) Kleeneze Plc (14) 111 (70) Ladbrokes Plc LAD (814) 2,403 (706) Lambert Fenchurch Group (1) 1,827 5 Leeds United (73) 144 (48) M 2003 Plc (2,204) 7,204 (1,078) Mytravel Group MT.L (380) 1,818 (931) New Star Asset (398) 293 21 Next Plc (119) 3,161 (125) Orange Plc ORNGF (594) 2,902 12 Orbis Plc (4) 128 (5) Patientline Plc (55) 125 (10) Preedy Alfred (119) 3,161 (125) Rank Group Plc (132) 1,066 (175) Regus Plc (46) 367 (97) Rentokil Initial (8) 4,178 (886) Saatchi & Saatchi SSI (119) 705 (66) Samsonite Corp. (199) 651 (149) SFI Group SUF (108) 178 (265) Skyepharma Plc SKP (140) 203 23 Smiths News Plc (124) 201 (92) Styles & Wood (57) 107 (9) Telewest Communications Plc TLWT (3,702) 7,581 (10,042) Thorn Emi Plc (2,266) 2,950 (582) Topps Tiles Plc (111) 195 18 Trio Finance (14) 592 N.A. UTC Group (12) 204 30 Virgin Mobile (392) 166 (176) Watson & Philip (120) 252 (290) ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than US$3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each 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 * * *