/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/090501.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Friday, May 1, 2009, Vol. 10, No. 85 Headlines A U S T R I A BUSREISEN BURGSTALLER: Claims Registration Period Ends May 11 FARBEN DITTRICH: Claims Registration Period Ends May 11 FOESSL LLC: Claims Registration Period Ends May 4 HECKENBICHLER SAGE: Claims Registration Period Ends May 4 G E R M A N Y GENERAL MOTORS: Magna Eyes Minority Stake in German Unit H U N G A R Y * HUNGARY: Company Insolvencies Up in First Qtr. 2009, Coface Says I C E L A N D KAUPTHING BANK: Two Tchenguiz Pub Directors Step Down I R E L A N D TRUVO SUBSIDIARY: Moody's Junks Corporate Family Rating from 'B3' XELO PLC: S&P Downgrades Ratings on 2007 Tranche C to 'B' I T A L Y * ITALY: Milan Police Seize Assets of Four Banks in Bond Probe K A Z A K H S T A N AIFRI PERFECT: Creditors Must File Claims by June 5 NURPOLIS JSC: Creditors Must File Claims by June 5 SEVER STAL: Creditors Must File Claims by June 5 TEPLO SERVICE E: Creditors Must File Claims by June 5 K Y R G Y Z S T A N BRAND OIL: Creditors Must File Claims by May 15 SMART CORE: Creditors Must File Claims by May 15 UNI STROY: Creditors Must File Claims by May 15 N E T H E R L A N D S BITE FINANCE: Moody's Changes Corporate Family Rating to 'Caa1' CANDIDE FINANCING: S&P Affirms Rating on Class E Notes at 'BB+' HALCYON STRUCTURED: S&P Junks Rating on Class E Notes KHAMSIN CREDIT: Moody's Junks Ratings on Super Senior Notes R U S S I A ABAKANSKAYA MINING: Creditors Must File Claims by May 24 AK OJSC: S&P Lifts Long-Term Corporate Credit Rating to 'BB+' INVEST-PROEKT LLC: Creditors Must File Claims by May 24 LSR OJSC: Fitch Cuts Long-Term Issuer Default Rating to 'B-' NOGINSKIY ROOFING: Creditors Must File Claims by June 24 WOOD-PROCESSING FACTORY: Creditors Must File Claims by June 24 YAMAL-ZHIL-STROY: Bankruptcy Supervision Hearing Set June 18 S L O V E N I A ISTRABENZ D.D.: Seeks to Boost Capital Through EU475MM Share Issue S P A I N CAJA DE AHORROS: S&P Corrects Rating; Cuts Ratings on Four RMBS S W I T Z E R L A N D GLATTPARKFEST JSC: Proof of Claim Filing Deadline is May 4 NIMA IMMOBILIEN LLC: Claims Filing Deadline is May 6 PULLMANN METALL LLC: Claims Filing Deadline is May 4 TRANSTIMBER LINE + FINANZ: Claims Filing Deadline is May 4 UBS AG: Shakes Up Top Management; Removes Investment-Banking Chief YONARO JSC: Creditors Must File Proofs of Claim by May 4 U K R A I N E COEFFICIENT OF SUCCESS: Creditors Must File Claims by May 10 INFOVEST LTD: Creditors Must File Claims by May 10 INTEK LTD: Creditors Must File Claims by May 10 PROFISYSTEM-M LLC: Creditors Must File Claims by May 10 VERKHOVINA LLC: Creditors Must File Claims by May 10 U N I T E D K I N G D O M BRADFORD & BINGLEY: Richard Banks Named New Managing Director JJB SPORTS: Crystal Amber Buys 12.96% Stake LDV: Applies for Administration; Has Until May 6 to Secure Funding LLOYDS BANKING: To Phase Out Clerical Medical Brand METRONET RAIL: Moody's Withdraws Underlying Ratings on All Bonds SCREENPRINT PLUS: Goes Into Administration; 170 Jobs at Risk THPA FINANCE: Fitch Cuts Rating on Class C Notes to 'BB' * BOOK REVIEW: Beyond the Quick Fix ********* ============= A U S T R I A ============= BUSREISEN BURGSTALLER: Claims Registration Period Ends May 11 ------------------------------------------------------------- Creditors owed money by Busreisen Burgstaller LLC have until May 11, 2009, to file written proofs of claim to the court- appointed estate administrator: Mag. Gernot Goetz Tirolerstrasse 18 9800 Spittal/Drau Austria Tel: 04762/53 52, 24 75 Fax: 04762/2766 E-mail: rechtsanwaelte@hammerschmidt-goetz.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on May 18, 2009, for the examination of claims at: Land Court of Klagenfurt Meeting Room 225 Second Floor Klagenfurt Austria FARBEN DITTRICH: Claims Registration Period Ends May 11 ------------------------------------------------------- Creditors owed money by Farben Dittrich LLC have until May 11, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr. Martina Withoff Hauptplatz 5 3910 Zwettl Austria Tel: 02822/52417 Fax: 02822/52417-4 E-mail: dr.withoff@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 8:30 a.m. on May 27, 2009, for the examination of claims at: Land Court of Krems an der Donau Hall A Second Floor Krems an der Donau Austria FOESSL LLC: Claims Registration Period Ends May 4 ------------------------------------------------- Creditors owed money by Foessl LLC have until May 4, 2009, to file written proofs of claim to the court-appointed estate administrator: Mag. Helmut Holzer Bahnhofstrasse 51/DG 9020 Klagenfurt Austria Tel: 0463/50 73 50 Fax: 0463/507350-55 E-mail: office@juridicom.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on May 11, 2009, for the examination of claims at: Land Court of Klagenfurt Meeting Room 225 Second Floor Klagenfurt Austria HECKENBICHLER SAGE: Claims Registration Period Ends May 4 --------------------------------------------------------- Creditors owed money by Heckenbichler Sage LLC have until May 4, 2009, to file written proofs of claim to the court-appointed estate administrator: Mag. Paul Wolf Hauptplatz 27a 9300 St. Veit/Glan Austria Tel: 04212/36843 Fax: 04212-36843-43 E-mail: mag.wolf@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 12:30 p.m. on May 11, 2009, for the examination of claims at: Land Court of Klagenfurt Meeting Room 225 Second Floor Klagenfurt Austria ============= G E R M A N Y ============= GENERAL MOTORS: Magna Eyes Minority Stake in German Unit -------------------------------------------------------- Brian Parkin at Bloomberg News reports that Aurora, Ontario-based Magna International Inc. is interested in acquiring a minority stake in Opel, General Motors Corp.'s German unit. Magna's stake won't exceed 25 percent, Bloomberg News says citing German Economy Minister Karl-Theodor zu Guttenberg. Bloomberg News relates according to Mr. Guttenberg, Magna plans to supply car parts to Opel, which is seeking EUR3.3 billion (US$4.3 million) in state aid. Bloomberg News recalls Hendrik Hering, the economy minister for the state of Rhineland-Palatinate, said April 23 Magna and Italy's Fiat SpA are the only car-industry bidders for Opel. Bloomberg News discloses the Toronto-based Globe & Mail, citing unidentified people in the industry, reported Monday that Russian carmaker OAO GAZ, owned by Russian billionaire Oleg Deripaska, may consider buying 30 percent of the GM unit. Bloomberg News states according to Mr. Hering, Fiat is interested only in parts of the GM unit's assets. The bidders will meet with GM next week to seek clarity over financial data before each presenting an "industrial plan", Bloomberg News notes citing Mr. Guttenberg. Bloomberg News says Mr. Guttenberg said the European Union Commission may demand a cut in Opel's production capacity of up to 30 percent as a condition of approving government loan guarantees for Opel. The government official, as cited by Bloomberg News, said the regional administrations may need to underwrite 25 percent of government loan guarantees that may be offered to Opel as it restructures its business. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM Europe is based in Zurich, Switzerland, while General Motors Latin America, Africa and Middle East is headquartered in Miramar, Florida. For the 2008 calendar year, GM reported an adjusted net loss, excluding special items, of US$16.8 billion. This compares to an adjusted net loss of US$279 million. Including special items, the company reported a loss of US$30.9 billion, compared to a reported loss of US$43.3 billion in 2007, which included a non-cash special charge of US$38.3 billion in the third quarter related to the valuation allowance against deferred tax assets. As of December 31, 2008, GM reported US$91,047,000,000 in total assets, US$176,387,000,000 in total liabilities, and US$86,154,000,000 in stockholders' deficit. GM admitted in its viability plan submitted to the U.S. Treasury on February 17 that it considered bankruptcy scenarios, but ruled out the idea, citing that a Chapter 11 filing would result to plummeting sales, more loans required from the U.S. government, and the collapse of dealers and suppliers. Going Concern Doubt Deloitte & Touche LLP, has said there is substantial doubt about GM's ability to continue as a going concern after reviewing GM's 2008 financial report. Deloitte cited the Company's recurring losses from operations, stockholders' deficit and failure to generate sufficient cash flow to meet the Company's obligations and sustain the its operations. It said GM's future is dependent on the Company's ability to execute the Company's Viability Plan successfully or otherwise address these matters. If the Company fails to do so for any reason, the Company would not be able to continue as a going concern and could potentially be forced to seek relief through a filing under the U.S. Bankruptcy Code. Standard & Poor's Ratings Services on April 10 lowered its issue- level rating on GM's US$4.5 billion senior secured revolving credit facility to 'CCC-' (one notch above the 'CC' corporate credit rating on the company) from 'CCC'. It revised the recovery rating on this facility to '2' from '1', indicating its view that lenders can expect substantial (70% to 90%) recovery in the event of a payment default. The corporate credit rating remains unchanged, at 'CC', reflecting its view of the likelihood that GM will default -- through either a bankruptcy or a distressed debt exchange. Moody's Investors Service said February 18 that the risk of a bankruptcy filing by GM and Chrysler remains high. The last rating action on GM and Chrysler was a downgrade of their Corporate Family Ratings to Ca on December 3, 2008. ============= H U N G A R Y ============= * HUNGARY: Company Insolvencies Up in First Qtr. 2009, Coface Says ------------------------------------------------------------------ Sandor Peto at Reuters reports that according to French credit insurer Coface, the number of insolvency procedures against Hungarian companies jumped in the first quarter of 2009 compared with the same period a year ago. Reuters relates Coface said the number of bankruptcy, liquidation and winding up procedures against Hungarian companies rose to 6,906 in the first quarter of this year from 5,532 in the same period of 2008 and 4,517 in the same period of 2007. According to MTI-Econews, almost a quarter of the insolvency procedures were in the wholesale and retail sector and 17% were in the construction industry. MTI-Econews notes the number of insolvencies were also high in the property, tourism, and automotive sectors. MTI-Econews states more than 40% of the procedures were in Budapest and Pest County. Reuters discloses companies have been hit by a slump in demand from Germany, Hungary's main export market, cuts in orders in the vehicle industry, and a fall in state orders for the construction industry. "Hungarian companies remain undercapitalized, and this is coupled with financing problems in the current credit crunch," Reuters quoted Zoltan Dercze, head of the Hungarian Coface unit, as saying. The Hungarian government, Reuters says, expects the country's economy to contract by 5.5-6 percent this year. ============= I C E L A N D ============= KAUPTHING BANK: Two Tchenguiz Pub Directors Step Down ----------------------------------------------------- Paul Charity at Morning Advertiser reports that Tim Smalley and Aaron Brown have resigned from the board of Bay Restaurants and Town and City Pubs, Robert Tchencguiz's two managed pub companies, after a request from Icelandic bank Kaupthing. According to the report, the equity in the two companies is now split between Kaupthing and management. The report relates a source said "The equity that Tchenguiz had in number of businesses was included in the original deal that Tchenguiz did with Kaupthing last October". The report recalls the Morning Advertiser said earlier this year that Kaupthing is maintaining its debt and equity investment in the two managed pub companies, with an unpaid GBP643 million overdraft outstanding from a Tchenguiz-linked company, Ocsatello. Kaupthing's investment is now overseen by a five-man committee, three of whom are Icelandic civil servants, the report says citing Ian Payne, who is chairman of Bay Restaurants and Town & City Pubs. About Kaupthing Bank Headquartered in Reykjavik, Iceland, Kaupthing Bank hf. -- http://www.kaupthing.com-- is engaged in the provision of financial services, such as private banking, asset management, pension services, brokerage services, investment banking, as well as corporate and retail banking. The Bank's offer is targeted at companies, institutional investors and individuals. The Bank is operational in thirteen countries, including Luxembourg, Switzerland, the Nordic countries, the United Kingdom and the United States. The main subsidiaries include Kaupthing Singer & Friedlander and FIH Erhvervsbank. * * * As reported in the Troubled Company Reporter on Nov. 30, 2008, Olafur Gardasson, assistant for Kaupthing Bank hf., in a proceeding under Act No. 21/1991, pending before the Reykjavik District Court, and foreign representative of the Debtor, filed a petition under chapter 15 of title 11 of the United States Code in the United States Bankruptcy Court for the Southern District of New York commencing the Debtor's chapter 15 case ancillary to the Icelandic Proceeding and seeking recognition for the Icelandic Proceeding as a "foreign main proceeding" under the Bankruptcy Code and relief in aid of the Icelandic Proceeding. Citing a court filing by Olafur Gardarsson, Reuters disclosed Kaupthing has about US$14.8 billion of principal assets, including US$222 million located in the United States, and US$26 billion of principal indebtedness. ============= I R E L A N D ============= TRUVO SUBSIDIARY: Moody's Junks Corporate Family Rating from 'B3' ----------------------------------------------------------------- Moody's Investors Service downgraded the Corporate Family Rating of Truvo Subsidiary Corp to Caa2 from B3, and the Probability of Default Rating to Caa1 from B3. At the same time, Moody's downgraded the ratings of the EUR395 million and US$200 million senior notes due 2014 issued by Truvo to Caa3 from Caa2. The outlook is negative. The downgrade reflects Moody's increasing concerns about the deteriorating trend in the group's operating environment, and the resulting potential impact on its financial risk profile, together with Moody's re-evaluation of the potential recovery prospects for debt holders in the case of distress. Moody's notes that the company's results for the year-end 2008 are broadly in line with management's earlier guidance (revenue: down by approximately 6% y-o-y; and attributable EBITDA: down 6% y-o- y). However, its year-to-date (to end-March 2009) sales performance y-o-y (as communicated by management in the annual results presentation) shows that top-line pressure has been accelerating, given the worsening macroeconomic conditions in its markets, coupled with faster than expected migration to online from print. Moody's acknowledges that online revenue growth for 2008 was circa 20% (after stripping out the timing differences), and management is committed to transforming the business from directory to a local search and advertising business over the medium term. However, in Moody's view, the group's still developing online positioning in the new cycle implies a degree of execution risk in the current environment. Moody's believes that if Truvo experiences a mid-teens revenue decline throughout 2009, the company's EBITDA generation capacity could come under substantial pressure (even after taking into account management's intention to cut costs by around EUR10 million) considering the high operational gearing of the business together with its sensitivity to revenue declines and its investments in online activities. In Moody's view, such full-year results would significantly undermine the group's free cash flow generation (possibly turning it negative) and exert further pressure on its already aggressive leverage profile, so that Total Debt / EBITDA (as adjusted by Moody's, with EBITDA including dividends from minorities/JV) is likely to exceed Moody's earlier guidance of 8.0x over the near term. The downgrade also reflects Moody's concerns in relation to the company's capital structure, which Moody's considers unsustainable, and therefore the risk associated with the uncertainty over how Truvo will ultimately decide to strengthen its credit profile in conjunction with reducing its overall debt burden, which may include the possibility of a distressed exchange, in the near to medium term. The rating agency understands that there is still some uncertainty over the group's potential use of the net proceeds (circa EUR200 million) from the disposal of its Dutch activities; and that Truvo management is currently evaluating various options, including the use of over EUR120 million to repay debt. Moody's will evaluate the impact of the end result on the group's financial risk profile and its ratings once there is more clarity on this issue. Moody's regards the liquidity profile of the company over the next twelve months to December 2009 as satisfactory. The Caa2 CFR incorporates Moody's expectations of below-average family recovery (more specifically a recovery in the 40%-range rather than a standard 50% recovery rate assumption), which reflects Moody's consideration of potential post-default valuations. The instrument ratings of Caa3 (LGD5) on the senior notes due 2014 have been derived using Moody's LGD methodology. The negative outlook reflects Moody's concerns regarding the pressures on top-line growth, profitability, and free cash flow generation capacity, together with limited visibility on the group's performance and outlook for 2009 and beyond. The ratings could be further downgraded if i) the operating environment deteriorates more severely than currently anticipated; ii) a liquidity concern arises; and/or iii) a debt restructuring proposal is pursued that amounts to a diminished financial obligation relative to the original obligation allowing Truvo to avoid default over the medium term, which Moody's determines has the characteristics of a distressed exchange. The last rating action on Truvo was on October 21, 2008, when Moody's downgraded the company's ratings to B3. Truvo'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 profile 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 Truvo's core industry and Truvo's ratings are believed to be comparable with those of other issuers with similar credit risk. Truvo Intermediate Corp., the parent of Truvo Subsidiary Corp., is, through its subsidiaries, the leading directory publisher in Belgium, Ireland and Romania. Through its joint venture with Portugal Telecom, the company is the leading directory publisher in Portugal and, through its minority interests, holds leading positions in the directory markets in South Africa and Puerto Rico. In 2008, the group generated consolidated revenues of EUR318.5 million and EBITDA of EUR159.9 million under IFRS. XELO PLC: S&P Downgrades Ratings on 2007 Tranche C to 'B' --------------------------------------------------------- Standard & Poor's Ratings Services lowered its rating on Xelo PLC Series 2007 (Spinnaker III Asia Mezzanine 2) Tranche C to 'B', from 'BB/Watch Neg'. The rating was subsequently withdrawn at the request of the issuer. The downgrade reflects the increased credit risk of underlying portfolios in the transaction. The synthetic rated over collateralization level for tranche fell below 100% at its current rating level during the SROC analysis for the month of April. This indicates that the available credit enhancement is lower than the level required to maintain its current rating. The rating withdrawal follows noteholders' decision to exercise their early redemption option in the transaction. The rating actions on the affected transaction are: Name Rating To Rating From SROC ---- --------- ----------- ---- Xelo PLC Series 2007 (Spinnaker III Asia Mezz 2) Tranche C B BB/Watch Neg 100.1840% Xelo PLC Series 2007 (Spinnaker III Asia Mezz 2) Tranche C NR B NR � Not rated. ========= I T A L Y ========= * ITALY: Milan Police Seize Assets of Four Banks in Bond Probe -------------------------------------------------------------- Elisa Martinuzzi at Bloomberg News reports that Milan's financial police on Monday seized EUR476 million (US$620 million) of assets belonging to UBS AG, Deutsche Bank AG, JPMorgan Chase & Co. and Depfa Bank Plc in a probe over alleged fraud linked to the sale of derivatives. Bloomberg News relates the financial police said in a statement that it froze the banks' stakes in Italian companies, real estate assets and accounts. According to Bloomberg News, the City of Milan is suing the four banks after it lost money on derivatives it bought from the lenders in 2005. Bloomberg News discloses the city lost EUR298 million as of June on the securities, which swapped a fixed rate of interest on EUR1.7 billion of bonds for a variable rate. Bloomberg News states financial police said the banks misled municipal officials on the advantages of buying the derivatives, including the impact of the fees they charged on the contracts. The police, as cited by Bloomberg News, said the banks reaped about EUR100 million in fees from the transactions. Italy's Senate, Bloomberg News says, is leading a review of the use of derivatives among local administrations. AIAF, a group representing Italian financial analysts, will next week testify before the Italian Senate's inquiry into the cities' use of derivatives contracts, Bloomberg News notes. =================== K A Z A K H S T A N =================== AIFRI PERFECT: Creditors Must File Claims by June 5 --------------------------------------------------- JSC Aifri Perfect Capital has gone into liquidation. Creditors have until June 5, 2009, to submit proofs of claim to: Micro District Samal-2, 104 Almaty Kazakhstan NURPOLIS JSC: Creditors Must File Claims by June 5 -------------------------------------------------- JSC Insurance Company Nurpolis has gone into liquidation. Creditors have until June 5, 2009 to submit proofs of claim to: Protozanov Str. 47-1 Ust-Kamenogorsk East Kazakhstan Kazakhstan SEVER STAL: Creditors Must File Claims by June 5 ------------------------------------------------ LLP Sever Stal Stroy Remont declares about its liquidation. Creditors have until June 5, 2009, to submit proofs of claim to: Protozanov Str. 95 Ust-Kamenogorsk East Kazakhstan Kazakhstan TEPLO SERVICE E: Creditors Must File Claims by June 5 ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai commenced bankruptcy proceedings against LLP Teplo Service E on March 6, 2009. Creditors have until June 5, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Kostanai Baitursynov Str. 70 Kostanai Kazakhstan =================== K Y R G Y Z S T A N =================== BRAND OIL: Creditors Must File Claims by May 15 ----------------------------------------------- LLC Brand Oil has shut down. Creditors have until May 15, 2009, to submit proofs of claim to. Inquiries can be addressed to (+996 312) 61-34-12. SMART CORE: Creditors Must File Claims by May 15 ------------------------------------------------ LLC Smart Core KG has shut down. Creditors have until May 15, 2009, to submit proofs of claim to: Baitik Baatyr Str. 5b-2 Bishkek Kyrgyzstan UNI STROY: Creditors Must File Claims by May 15 ----------------------------------------------- LLC Uni Stroy declares has shut down. Creditors have until May 15, 2009, to submit proofs of claim. Inquiries can be addressed to (+996 312) 24-33-74. ===================== N E T H E R L A N D S ===================== BITE FINANCE: Moody's Changes Corporate Family Rating to 'Caa1' --------------------------------------------------------------- Moody's Investors Service changed the corporate family rating and the probability of default rating of Bite Finance International B.V to Caa1. It also changed the rating on the EUR190 million senior floating rate notes due 2014 to Caa2. The rating on the EUR6.1 million stub of the EUR110 million subordinated notes due 2017 that were not tendered as part of the exchange offer was changed to Caa3. The outlook is negative. The rating changes conclude the review that was ongoing following the completion in March 2009 of the tender offer for the subordinated notes, which Moody's had classified as a distressed exchange. It follows Bite's announcement that EUR50 million of the EUR103.9 million notes tendered had been cancelled, with the balance to be cancelled in this quarter. Despite the reduced debt burden, Moody's expects that Bite's leverage will remain above 6x in 2009. In Q1 2009, Bite's service revenue was 9% lower than in Q1 2008, although Ebitda was only 1% lower. The downturn in Bite's core Lithuanian market has resulted in Ebitda from that country being reduced by 13%. Although this was offset by an improved performance in Latvia, Bite's Latvian Ebitda remains negative, and that country is experiencing an even more stressed macroeconomic environment. With capex levels now being reduced to essentially maintenance levels, Ebitda minus capex has now turned positive. However, despite annual interest costs being reduced by about EUR10 million following cancellation of the subordinated notes, Moody's is concerned that Bit� may remain marginally free cash flow negative in 2009. Bite's liquidity will also remain very tight, given Moody's concerns over negative free cash flow and the fact that at March 31, 2009, its bank revolver was fully drawn, with only EUR9 million in available cash. Bite's bank covenants will also continue to tighten, although Moody's does not anticipate this causing problems in 2009. The Caa2 rating on the senior notes is one notch below the CFR, whereas prior to the debt exchange the rating on those notes had been a notch above the CFR. This change reflects the removal of a large amount of junior debt from the capital structure, which had previously more than offset the impact of the prior ranking of the bank revolver. The Caa3 rating on the EUR6.1 million stub of subordinated notes also incorporates their revised status as effectively unsecured, following the amendments that removed substantially all covenants and released collateral. The negative outlook reflects the company's current weak liquidity, combined with Moody's view that free cash flow will remain negative in 2009. The last rating announcement for Bite was on March 20, 2009, when the PDR was changed to Ca/LD upon completion of the tender offer. Bite Finance International B.V. is the Dutch holding company of the Lithuanian company Bite Lietuva UAB. Bite is a mobile telecommunications operator in Lithuania and Latvia, which reported 2008 service revenue of about EUR188 million. In February 2007 a private equity consortium led by Mid Europa Partners acquired Bite through a leveraged buyout for a total consideration of EUR443 million. CANDIDE FINANCING: S&P Affirms Rating on Class E Notes at 'BB+' --------------------------------------------------------------- Standard & Poor's Ratings Services placed on CreditWatch positive its credit ratings on the class B and C notes in Candide Financing 2005 B.V. and the class B notes in Candide Financing 2006 B.V. S&P also affirmed its ratings on the remaining notes in these transactions. S&P placed the notes on CreditWatch positive due to the deleveraging of the transactions and increased credit quality of the pools. Loans more than 60 days in arrears in S&P's Dutch RMBS (residential mortgage-backed securities) Index for Q4 2008 were at 0.52%, with the 2005 vintage showing arrears of 0.79% and the 2006 vintage 0.50%. Both transactions perform in line with their vintages, with 60+ day arrears of 0.84% for Candide 2005 and 0.62% for Candide 2006 for the same period. However, 60+ day arrears for the two transactions have risen in the past quarter, to 0.99% and 0.82%, respectively. In S&P's opinion, the pools' seasoning and the decrease of their loan-to-foreclosure value ratios (stemming from a combination of house price increases and mortgage repayments) have given rise to this increase in credit quality. This is typical of many of the earlier-vintage Dutch portfolios that S&P rate. It is worth noting that S&P does not anticipate a continuing rise in ouse prices in the Dutch mortgage market (in fact, data suggests that they may be starting to fall) and that prepayment rates (and hence the rate at which the transaction pays down) were low in 2008. The combination of these factors could slow any further increases in the transaction's overall credit quality. In placing the notes on CreditWatch positive, S&P considered the effect of falling house prices as well as rising arrears. The CreditWatch positive placements follow an initial review of the most recent loan-level data S&P has received for the transactions. S&P has conducted its analysis in line with S&P's Dutch criteria. S&P will now conduct further cash flow analysis based on S&P's European cash flow criteria (see below) in due course, to resolve the CreditWatch placements. Ratings List Ratings Placed on Creditwatch Positive Candide Financing 2005 B.V. EUR1.5 Billion Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- B AA/Watch Pos AA C A/Watch Pos A Candide Financing 2006 B.V. EUR2.016 Billion Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- B AA/Watch Pos AA Ratings Affirmed Candide Financing 2005 B.V. EUR1.5 Billion Mortgage-Backed Floating-Rate Notes Class Rating ----- ------ A AAA D BBB E BB+ Candide Financing 2006 B.V. EUR2.016 Billion Mortgage-Backed Floating-Rate Notes Class Rating ----- ------ A1 AAA A2 AAA A3 AAA C A+ D BBB HALCYON STRUCTURED: S&P Junks Rating on Class E Notes ----------------------------------------------------- Standard & Poor's Rating Services lowered its ratings on five classes of notes issued by Halcyon Structured Asset Management CLO 2008-II B.V. S&P affirmed the ratings on the senior notes. HSAM 2008-II closed in August 2008 and was due to become effective on Feb. 14, 2009. The effective date portfolio presented to us failed to meet the effective date requirements under the transaction documentation. Specifically, interest coverage covenants as set out in the transaction documents were breached for all classes of notes, and the transaction did not pass the CDO Monitor Test at the current rating levels. The portfolio comprises over 90% senior secured loans, with over two-thirds of the pool backed by European obligors. As provided in the transaction documents, the collateral manager submitted a plan outlining the steps taken to remedy the breaches in order to obtain rating agency confirmation on the effective date. However, while interest coverage triggers were brought back into compliance with the transaction documentation, the collateral quality of the pool was not sufficiently improved to enable the relevant classes of notes to pass S&P's CDO Monitor Test. Furthermore, the shortfall of interest proceeds led to a deferral of interest at the transaction's first payment date in March 2009, on all but the 'AAA' rated class A1 and A2 notes. In S&P's view, the interest coverage failure was due to the fall in the European interbank offered rate in late 2008. The notes pay semi-annually, and the interest rate for the interest payment period ending in March 2009 was set in August 2008. As more than four-fifths of the portfolio assets reset more frequently than semi-annually, the EURIBOR linked interest rate on the assets was, during part of this period, lower than the EURIBOR linked interest rate on the notes. This interest rate mismatch resulted in a shortfall in proceeds available to pay interest on some of the rated notes. In addition, during the ramp-up period, the transaction has been exposed to several defaults and to an increase in assets rated 'CCC+' and below. S&P's analysis indicates that the probability of default has increased for all classes of notes, but it is most marked for the class B, C, D, and E notes. The existing ratings on these notes are, in S&P's opinion, no longer consistent with the available credit enhancement and S&P has therefore lowered the ratings on these notes as set out in the ratings list below. Ratings List Halcyon Structured Asset Management CLO 2008-II B.V. EUR405.5 Million Floating-Rate Notes and EUR38.5 Million Subordinated Notes Ratings Lowered Rating ------ Class To From ----- -- ---- B A+ AA- C1 A- A C2 BBB+ A- D BB BBB- E CCC+ BB- Ratings Affirmed Class Rating ----- ------ A1 AAA A2 AAA KHAMSIN CREDIT: Moody's Junks Ratings on Super Senior Notes ----------------------------------------------------------- Moody's Investors Service has downgraded its rating of these notes issued by Khamsin Credit Products (Netherlands) B.V., a leveraged super senior note issuer. The underlying reference portfolio consists of significant exposure to RMBS, CMBS, CLO and SF CDOs predominantly originated in Europe. The rating actions are: -- Khamsin Credit Products (Netherlands) B.V. US$2,000,000,000 Limited Recourse Secured Note Programme Series 7, 8 and 9 -- EUR25,000,000 Leveraged Super Senior Portfolio Credit Linked Notes due 2090, Series 7, Downgraded to C, Previously on 9/10/2008 Downgraded to B1 and remains on Review for Downgrade. -- EUR20,000,000 Leveraged Super Senior Portfolio Credit Linked Notes due 2090, Series 8, Downgraded to C, Previously on 9/10/2008 Downgraded to B1 and remains on Review for Downgrade. -- EUR15,000,000 Leveraged Super Senior Portfolio Credit Linked Notes due 2090, Series 9, Downgraded to C, Previously on 9/10/2008 Downgraded to B1 and remains on Review for Downgrade. Each transaction incorporates a Loss Trigger Event whose occurrence depends on the total losses of the underlying reference portfolio. Each transaction also incorporates a Downgrade Trigger Event that depends on the credit rating of the Benchmark Obligation. The Benchmark Obligation is EUR70,000,000 Class A3-a House of Europe Funding V PLC Floating Rate Notes due 2090 issued by House of Europe Funding V PLC. Following a Loss Trigger Event or Downgrade Trigger Event, the investors may decide to incur the mark-to-market loss of the super senior tranche up to the initial investment or increase the size of their investment. Moody's explained that its rating methodology applicable to this transaction assumes no recovery for a leveraged super senior note once a Trigger Event is breached. Moody's received notice on April 27, 2009 that a Downgrade Trigger Event occurred as the Benchmark Obligation was downgraded to C on March 18, 2009. =========== R U S S I A =========== ABAKANSKAYA MINING: Creditors Must File Claims by May 24 -------------------------------------------------------- Creditors of LLC Abakanskaya Mining Company (Coal Mining) have until May 24, 2009 to submit proofs of claims to: A. Petrenko Temporary Insolvency Manager Prospect Druzhby 7 654041 Novokuznetsk Russia The Arbitration Court of Khakasiya will convene on Aug. 6, 2009, to hear bankruptcy supervision procedure on the company. The case is docketed under Case No. ?74�1027/2009. The Debtor can be reached at: LLC Abakanskaya Mining Company Gogolya Str. 103A Chernogorsk Khakasiya Russia AK OJSC: S&P Lifts Long-Term Corporate Credit Rating to 'BB+' ------------------------------------------------------------- Standard & Poor's Ratings Services said that it had raised its long-term corporate credit rating on Russian oil product pipeline company OJSC AK Transnefteproduct to 'BB+' from 'BB-'. The Russia national scale rating was raised to 'ruAA+' from 'ruAA'. The outlook is negative, mirroring that on the parent, OAO AK Transneft (BBB/Negative/--). "The upgrade is based on our perception that TNP is now more closely integrated with its 100% shareholder and our expectation of the relatively high likelihood of extraordinary support from Transneft," said Standard & Poor's credit analyst Andrey Nikolaev. S&P now follow a top-down approach in assessing Transnefteproduct's credit quality and notch down two notches from the rating on Transneft to reflect the expected support S&P currently assess TNP's stand-alone credit quality at 'B+', reflecting the company's position as a relatively small and mainly commercial operator competing with other transportation providers (notably rail), in addition to fairly weak debt metrics and possible further negative free cash flow, assuming the company embarks on new development projects, such as the South pipeline. Construction of the North project over 2005-2008 has pushed Transnefteproduct's gross debt to Russian ruble 22 billion as of Sept. 30, 2008, translating into relatively weak adjusted debt to EBITDA of 2.9x. As the construction is now over and the capacity utilization of the new route is gradually increasing, S&P expects free operating cash flow to be positive for fourth-quarter 2008 and in 2009. In the near term, TNP's financial metrics will be pressured by ruble devaluation because most of TNP's debt is denominated in U.S. dollars, while revenues are in rubles. Key credit strengths are Transnefteproduct's position as one of the key transportation vehicles for Russia's oil product exports, the country's flexible regulatory regime, and TNP's adequate liquidity. As of March 31, 2009, Transnefteproduct's short-term debt of RUR2.5 billion related to credit linked notes maturing in October 2009 was more than offset by RUR8.5 billion in cash. The outlook is negative because the outlook on its parent Transneft is negative. Transneft's outlook mirrors that on the Russian Federation (foreign currency BBB/Negative/A-3; local currency BBB+/Negative/A-2; Russia national scale 'ruAAA'). "Given our top-down approach on TNP, S&P would likely downgrade TNP in case of a downgrade of Transneft," said Mr. Nikolaev. In the medium to long term, a decrease in the differentiation between the ratings on TNP and those on its parent from two notches to one notch is not excluded, but would depend on an increased share of intragroup and guaranteed debt from Transneft and/or a significant strengthening of TNP's stand-alone credit profile. The latter would depend on meaningful improvement in profit generation and deleveraging in 2009 on the back of higher capacity utilization of the North pipeline and on further tariff increases without compromising volumes transported. The company's long-term investment ambitions and the potential for important debt increases from the South pipeline project would also be an important factor. INVEST-PROEKT LLC: Creditors Must File Claims by May 24 ------------------------------------------------------- Creditors of LLC Invest-Proekt (TIN 7733505703; PSRN 1037739863644) (Construction) have until May 24, 2009, to submit proofs of claims to: M. Dyakonov Temporary Insolvency Manager Post User Box 481 111141 Moscow Russia The Arbitration Court of Moscow commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. ?40�14376/09�86�31B. The Debtor can be reached at: LLC Invest-Proekt Geroev Panfilovtsev Str. 8 125480 Moscow Russia LSR OJSC: Fitch Cuts Long-Term Issuer Default Rating to 'B-' ------------------------------------------------------------ Fitch Ratings has downgraded Russia-based OJSC LSR Group's Long- term foreign currency Issuer Default rating and senior unsecured rating to 'B-' (B minus) from 'B'. The IDR remains on Rating Watch Negative. Simultaneously, the agency has withdrawn the senior unsecured rating of 'B-' (B minus)/RWN with a Recovery Rating of 'RR4'. The RWN on the senior unsecured rating has not been resolved at the time of withdrawal because of LSR's IDR remaining on RWN. The downgrade reflects Fitch's view that there is now an increased risk that LSR may not in time obtain financing which is needed to meet its short-term debt maturities. The company's ratings were placed on RWN on January 20, 2009, as a result of a possible breach of a bank facility interest cover covenant, and the challenge in obtaining new financing to cover 2009 debt maturities. In particular, at the time of this rating action, Fitch highlighted that a downgrade of LSR's ratings could be triggered by its failure to achieve new financing by end-April to cover 2009 debt maturities. During Q109 LSR's liquidity score (measured as sources of liquidity divided by uses of liquidity over a 12-month period) decreased to 0.5x from 0.6x following a reduction in cash and undrawn credit facilities and an increase in short-term debt. Although Fitch understands that LSR has sufficient liquidity to repay its Q209 debt maturities, the company remains highly reliant on new bank financing to repay its Q309-Q110 debt maturities. Fitch understands that LSR is currently close to signing long-term loan agreements with several state-controlled banks, which would support its liquidity until approximately end-Q309. However, with this financing yet to be committed and considering the potential creditors' prevailing negative sentiment towards the construction sector in Russia, the risk of LSR failing to obtain the needed financing in time increases. The RWN continues to reflect LSR's growing challenge in obtaining a substantial amount of new financing needed to refinance its short-term debt maturities, especially as the substantial Q409- Q110 debt maturities approach, as well as Fitch's concern that LSR may breach a bank facility interest cover (EBIT/interest expenses) covenant within the next 12 months. In addition, the RWN now reflects a concern that LSR may breach a bank facility total debt/ EBITDA covenant over the next 12 months, following a decrease in the company's EBITDA and increase in total debt for 2009 forecasted by Fitch. The RWN on the senior unsecured rating reflects a possible structural subordination of LSR's senior unsecured debt to the debt of its subsidiaries. Currently, about 75% of the debt is located at the subsidiary level and potentially structurally senior to unsecured obligations at the parent company LSR level. Fitch positively notes LSR's FY08 operating results. In particular, revenue increased 43% from FY07 to US$2,004 million, driven by building materials and aggregates (52%), real estate development (24%), and construction and construction services (24%). EBITDA grew 71% to US$530 million and the EBITDA margin was up at 26.5% (versus 22.1% in FY07). However, Fitch forecasts indicate that LSR's operating performance will weaken in FY09 following the downturn in the Russian economy and property market. The IDR could be affirmed if LSR obtains sufficient liquidity to cover the next 12-months debt maturities and if it successfully renegotiates the EBIT/interest expense and total debt/EBITDA covenants, or if the probability of a covenant breach substantially decreases. Conversely, a downgrade of the IDR could be triggered by a covenant breach and/or a failure to increase LSR's liquidity by end-June to cover Q309 debt maturities. NOGINSKIY ROOFING: Creditors Must File Claims by June 24 -------------------------------------------------------- Creditors of CJSC Noginskiy Roofing and Waterproofing Materials Plant (TIN 5031028319, PSRN 1035006107333) have until June 24, 2009, to submit proofs of claims to: T. Melnichuk Insolvency Manager L. Bazanovoy Str. 5/41 170100 Tver Russia The Arbitration Court of Moskovskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?41�14401/08. WOOD-PROCESSING FACTORY: Creditors Must File Claims by June 24 -------------------------------------------------------------- Creditors of LLC Wood-Processing Factory (TIN 3525148210, PSRN 1053500023950) have until June 24, 2009 to submit proofs of claims to: V. Korotaev Insolvency Manager Chernyshevskogo Str. 30/19 160014 Vologda Russia The Arbitration Court of Vologodskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?13�8741/2008. YAMAL-ZHIL-STROY: Bankruptcy Supervision Hearing Set June 18 ------------------------------------------------------------ The Arbitration Court of Yamalo-Nenetskiy will convene at 9:00 a.m. on June 18, 2009 to hear bankruptcy supervision procedure on LLC Yamal-Zhil-Stroy (Construction). The case is docketed under Case No. ?81 - 5240/2008. Creditors have until June 24, 2009, to submit proofs of claims to: B. Umarov Temporary Insolvency Manager Post User Box 1149 Dzerzhinskogo Str. 6a 640007 Kurgan Russia The Court is located at: The Arbitration Court of Yamalo-Nenetskiy Chubynina Str. 37a Salekhard Russia The Debtor can be reached at: LLC Yamal-Zhil-Stroy Taezhnaya Str. 224 Novyy Urengoy Yamalo-Nenetskiy Russia =============== S L O V E N I A =============== ISTRABENZ D.D.: Seeks to Boost Capital Through EU475MM Share Issue ------------------------------------------------------------------ Manca Ulcar at Reuters reports that Istrabenz d.d said on Wednesday it is considering launching a EUR475 million share issue that will boost its capital eightfold as its seeks to stave off bankruptcy proceedings. Reuters relates analysts, however, said the share issue -- 34.4 million shares at EUR13.8 each -- is unlikely to be successful. "It is unlikely that anyone would bring fresh money into the company. There will be quite some uncertainty as to where this will go in the coming weeks," Matej Tomazin, of investment firm Alfa Invest, told Reuters. Reuters states shareholders are expected to decide on the capital increase in early June. Reuters says if approved, the new shares will be offered to existing shareholders. On April 2, 2009, the Troubled Company Reporter-Europe, citing Reuters, reported Istrabenz was forced into insolvency after it failed to reach a deal with its creditors over its debt. Istrabenz CEO Igor Bavcar quit his post following the company's insolvency, Reuters stated. Mr. Bavcar will remain head of the company until May 15, Reuters noted. According to Reuters, Istrabenz and its affiliated firms owe some EUR950 million (US$1.26 billion) to 19 banks. The company has EUR160 million in debts due by the end of March, Reuters said citing local media reports. Reuters disclosed under Slovenian law, the company has 60 days to reach a deal with creditors on debt repayment terms or enter bankruptcy, which would be the biggest corporate failure in Slovenia in the last decade. Reuters recalled the company made a net loss of EUR220.8 million (US$294.2 million) in 2008 as a result of falls in the value of its capital investments. Headquartered in Koper, Slovenia, Istrabenz d.d. (ISTRABENZ holdinska druzba, d.d.) -- http://www.istrabenz.si/-- is a parent company of the Istrabenz Group. The Company is responsible for the asset management and supervision of the Group members. Istrabenz d.d. has developed investments in the number of divisions: Energy, which covers the gas business, production and distribution of energy, transshipment and storage of oil derivatives; Tourism, which offers hotel, catering, wellness and congress services; Investments, which deals with advertising, financial services and technical consulting; Food, which markets food products, and Information Technology that provides information support to the companies of the Istrabenz Group. As for December 31, 2007, there were 69 companies in Istrabenz Group. ========= S P A I N ========= CAJA DE AHORROS: S&P Corrects Rating; Cuts Ratings on Four RMBS --------------------------------------------------------------- This media release, published earlier, is being republished to clarify certain points within paragraphs five, six, 10, and 11. Standard & Poor's Ratings Services lowered several credit ratings across four Spanish residential mortgage-backed securities transactions originated by Caja de Ahorros y Monte de Piedad de Madrid. Specifically, S&P: -- Downgraded the class A2, B, C, D, and E notes and affirmed the class A1 notes in MADRID RMBS I, Fondo de Titulizacion de Activos; -- Downgraded the class A2, A3, B, C, and D notes and affirmed the class A1 and E notes issued by MADRID RMBS II, Fondo de Titulizacion de Activos; -- Downgraded the class A1, A2, A3, B, C, and D notes and affirmed the class E notes issued by MADRID RMBS III, Fondo de Titulizacion de Activos; -- Downgraded the class A1, A2, B, C, D, and E notes issued by MADRID RMBS IV, Fondo de Titulizacion de Activos; and -- Removed certain classes from CreditWatch negative. These rating actions follow a full credit and cash flow analysis of the most recent transaction information that S&P has received. The results of S&P's analysis showed that, due to deterioration of the underlying mortgage pools, credit enhancement available to the downgraded notes was not commensurate with the ratings. The notes, issued between November 2006 and December 2007, are each backed by a portfolio of residential mortgage loans secured over properties in Spain. Caja Madrid originated and services the loans. The mortgage portfolios underlying these transactions continue to generate high levels of arrears. As of the end of February, loans in arrears more than 90 days, including outstanding defaulted loans, are 14.31% (MADRID I), 15.85% (MADRID II), 15.27% (MADRID III), and 16.82% (MADRID IV) of their current mortgage portfolios. This is well above the average for other Spanish RMBS transactions with similar seasoning. Recent performance data, combined with the portfolio characteristics, suggests that delinquencies will continue to rapidly increase over the next few quarters. From Q3 2008 to Q1 2009, severe delinquencies, defined as arrears greater than 90 days including outstanding defaulted loans, reached 14.31% from 5.2% (MADRID I), 15.85% from 7.1% (MADRID II), 15.27% from 5.1% (MADRID III), and 16.82% from 5.0% (MADRID IV). All the transactions feature a structural mechanism that traps excess spread to provide for defaults. Defaults in these transactions are defined as arrears greater than six months, with the exception of MADRID IV, where defaults are defined as arrears greater than 12 months. These definitions are generally more conservative than those in other Spanish RMBS. As a result of a significant portion of loans being classified as defaulted, all the transactions have drawn down their cash reserves. At present, only MADRID IV has a cash reserve balance; the other transactions have already used their entire reserves. In S&P's opinion, the effect of the reserve drawings is twofold. Firstly, it prevents excess spread from flowing from the deals until the reserve fund is replenished. Secondly, it impairs the internal liquidity of the transactions for so long as recoveries on defaulted assets are not received. When the level of defaulted loans in these securitizations reaches a certain percentage of the initial collateral balance, the priority of payments is altered so as to shut off interest payments to the related class of notes. The trustee informs us that, as of the end of February, these ratios were 6.7% (trigger level: 8.00% for the most junior rated class of notes), 7.9% (8.00%), 8.4% (8.94%), and 2.1% (8.19%), for MADRID I, II, III, and IV, respectively. For the same reporting period, 90+ day arrears plus outstanding defaults as a percentage of the closing balance were 11.70%, 12.90%, 13.75%, and 15.50%, respectively. In S&P's opinion, it is reasonable to assume that a high percentage of loans 90+ days in arrears will come to be classified as defaulted, with consequent deferrals of interest. The rating actions therefore take into account the relative likelihood of nonpayment of interest in the light of recognized defaults and an assessment of the default risk in the residual portfolios. Ratings List MADRID RMBS I, Fondo de Titulizacion de Activos EUR2 Billion Residential Mortgage-Backed Floating-Rate Notes Ratings Lowered and Removed From CreditWatch Negative Rating ------ Class To From ----- -- ---- A2 AA AAA/Watch Neg B A- AA/Watch Neg C BB A/Watch Neg D B BBB/Watch Neg E CCC B/Watch Neg Rating Affirmed and Removed From CreditWatch Negative Rating ------ Class To From ----- -- ---- A1 AAA AAA/Watch Neg MADRID RMBS II, Fondo de Titulizacion de Activos EUR1.8 Billion Mortgage-Backed Floating-Rate Notes Ratings Lowered and Removed From CreditWatch Negative Rating ------ Class To From ----- -- ---- A2 AA AAA/Watch Neg A3 AA AAA/Watch Neg Ratings Lowered Rating ------ Class To From ----- -- ---- B BBB A C BB BBB D CCC B Rating Affirmed and Removed From CreditWatch Negative Rating ------ Class To From ----- -- ---- A1 AAA AAA/Watch Neg Rating Affirmed Class Rating ----- ------ E CCC MADRID RMBS III, Fondo de Titulizacion de Activos EUR3 Billion Mortgage-Backed Floating-Rate Notes Ratings Lowered and Removed From CreditWatch Negative Rating ------ Class To From ----- -- ---- A1 AA AAA/Watch Neg A2 AA AAA/Watch Neg A3 AA AAA/Watch Neg Ratings Lowered B BBB A C BB BBB D CCC B Rating Affirmed Class Rating ----- ------ E CCC MADRID RMBS IV, Fondo de Titulizacion de Activos EUR2.4 Billion Mortgage-Backed Floating-Rate Notes Ratings Lowered and Removed From CreditWatch Negative Rating ------ Class To From ----- -- ---- A1 AA- AAA/Watch Neg A2 AA- AAA/Watch Neg B A- AA/Watch Neg C BB A-/Watch Neg D B BB/Watch Neg E B- B/Watch Neg ===================== S W I T Z E R L A N D ===================== GLATTPARKFEST JSC: Proof of Claim Filing Deadline is May 4 ---------------------------------------------------------- Creditors of Glattparkfest JSC are requested to file their proofs of claim by May 4, 2009, to: Beatrix Jud Liquidator Grossackerstrasse 43 8152 Opfikon Switzerland The company is currently undergoing liquidation in Glattbrugg. The decision about liquidation was accepted at an extraordinary general meeting on June 8, 2007. NIMA IMMOBILIEN LLC: Claims Filing Deadline is May 6 ---------------------------------------------------- Creditors of NIMA Immobilien LLC are requested to file their proofs of claim by May 6, 2009, to: BLT Treuhand + Immobilien JSC Hardackerstrasse 5 5301 Station Siggenthal Switzerland The company is currently undergoing liquidation in Untersiggenthal. The decision about liquidation was accepted at a general meeting held on March 11, 2009. PULLMANN METALL LLC: Claims Filing Deadline is May 4 ---------------------------------------------------- Creditors of Pullmann Metall LLC are requested to file their proofs of claim by May 4, 2009, to: Werner Burkhard Treuhand JSC Zollstrasse 3 9434 Au SG Switzerland The company is currently undergoing liquidation in Reute AR. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on March 17, 2009. TRANSTIMBER LINE + FINANZ: Claims Filing Deadline is May 4 ---------------------------------------------------------- Creditors of Transtimber Line + Finanz JSC are requested to file their proofs of claim by May 4, 2009, to: Dr. Urs Wehinger Liquidator Arnold Wehinger Kaelin & Ferrari Company Riesbachstrasse 52 8008 Zurich Switzerland The company is currently undergoing liquidation in Basel. The decision about liquidation was accepted at an extraordinary general meeting held on March 13, 2009. UBS AG: Shakes Up Top Management; Removes Investment-Banking Chief ------------------------------------------------------------------ Stephen Fidler and Katharina Bart at Dow Jones Newswires report that Oswald Gruebel, the new chief executive of UBS AG, shook up the top of the bank's investment-banking unit Monday. The report relates Mr. Gruebel removed investment-banking chief Jerker Johansson after just over a year in the job. According to the report, UBS said Mr. Johansson, who was hired last March to help untangle the investment bank's heavy losses, would leave his position immediately. Mr. Gruebel installed two executives to succeed Mr. Johansson: UBS veteran Alex Wilmot-Sitwell, an investment-banking and mergers-and-acquisitions specialist, and Carsten Kengeter, a former partner at Goldman Sachs Group with a background in fixed-income products, the report states. The report discloses in a statement Monday, Mr. Gruebel played down speculation that UBS would seek to sell or shut down the investment bank as part of its austerity drive. The bank, as cited in the report, said closing down the investment bank would leave UBS unable to satisfactorily offer valuable and lucrative advisory and execution services to its high-net-worth clients. The report recalls the the bank's investment-banking unit generated more than US$50 billion in losses since the financial crisis began in August 2007. The unit's difficulties have left it unable to risk the capital needed to generate trading profits, the report notes. Mr. Gruebel, the report says, has announced a plan to return to profitability that includes shedding 8,700 jobs, 11% of the bank's total work force. About UBS AG Based in Zurich, Switzerland, UBS AG (VTX:UBSN) -- http://www.ubs.com/-- is a global provider of financial services for wealthy clients. UBS's financial businesses are organized on a worldwide basis into three Business Groups and the Corporate Center. Global Wealth Management & Business Banking consists of three segments: Wealth Management International & Switzerland, Wealth Management US and Business Banking Switzerland. The Business Groups Investment Bank and Global Asset Management constitute one segment each. The Industrial Holdings segment holds all industrial operations controlled by the Group. Global Asset Management provides investment products and services to institutional investors and wholesale intermediaries around the globe. The Investment Bank operates globally as a client-driven investment banking and securities firm. The Industrial Holdings segment comprises the non-financial businesses of UBS, including the private equity business, which primarily invests UBS and third-party funds in unlisted companies. YONARO JSC: Creditors Must File Proofs of Claim by May 4 -------------------------------------------------------- Creditors of Yonaro JSC are requested to file their proofs of claim by May 4, 2009, to: Rolf Tschudin Liquidator Schatti + Partner JSC Zugerstrasse 76B 6340 Baar Switzerland The company is currently undergoing liquidation in Baar ZG. The decision about liquidation was accepted at an extraordinary general meeting held on March 9, 2009. ============= U K R A I N E ============= COEFFICIENT OF SUCCESS: Creditors Must File Claims by May 10 ------------------------------------------------------------ Creditors of LLC Coefficient of Success Company (code EDRPOU 33936627) have until May 10, 2009, to submit proofs of claim to: S. Benediuk Insolvency Manager Post Office Box 157 03110 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company on March 31, 2009. The case is docketed under Case No. 44/140-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy Street 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Coefficient of Success Company Zdolbunovskaya Str. 7-A 02081 Kiev Ukraine INFOVEST LTD: Creditors Must File Claims by May 10 ------------------------------------------------- Creditors of LLC Infovest Ltd (code EDRPOU 34486800) have until May 10, 2009, to submit proofs of claim to: S. Benediuk Insolvency Manager Post Office Box 157 03110 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company on March 31, 2009. The case is docketed under Case No. 44/138-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy Street 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Infovest Ltd Petrovskaya str. 15 04071 Kiev Ukraine INTEK LTD: Creditors Must File Claims by May 10 ----------------------------------------------- Creditors of LLC Firm Intek Ltd (code EDRPOU 35644058) have until May 10, 2009, to submit proofs of claim to: S. Benediuk Insolvency Manager Post Office Box 157 03110 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company on March 31, 2009. The case is docketed under Case No. 44/141-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy Street 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Firm Intek Ltd Office 2K01 Derevoobrabatyvayuschaya Str. 12, B. 1 01013 Kiev Ukraine PROFISYSTEM-M LLC: Creditors Must File Claims by May 10 ------------------------------------------------------- Creditors of LLC Profisystem-m (code EDRPOU 35644739) have until May 10, 2009, to submit proofs of claim to: S. Benediuk Insolvency Manager Post Office Box 157 03110 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company on March 31, 2009. The case is docketed under Case No. 44/139-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy Street 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Profisystem-m Ac. Zabolotny Str. 15 03143 Kiev Ukraine VERKHOVINA LLC: Creditors Must File Claims by May 10 ---------------------------------------------------- Creditors of LLC Verkhovina (code EDRPOU 30708111) have until May 10, 2009, to submit proofs of claim to: V. Ischenko Insolvency Manager Post Office Box 21 Melitopol 72311 Zaporozhye Ukraine The Economic Court of Zaporozhye region commenced bankruptcy proceedings against the company on April 1, 2009. The case is docketed under Case No. 25/238/06-19/329/08. The Court is located at: The Economic Court of Zaporozhye Shaumian Str. 4 69600 Zaporozhye Ukraine The Debtor can be reached at: LLC Verkhovina Post Office Box 21 Melitopol 72372 Zaporozhye Ukraine =========================== U N I T E D K I N G D O M =========================== BRADFORD & BINGLEY: Richard Banks Named New Managing Director ------------------------------------------------------------- The Scotsman's Victoria Thomson reports that Bradford & Bingley plc on Monday appointed Richard Banks as its new managing director. According to the report, Mr. Banks, who will oversee the winding down of the bank's loan book, will receive a GBP250,000 salary. The report says the loan book, which has come under pressure due to its buy-to-let and self-certified mortgages, is being wound down to repay Treasury support last year as well as the GBP14 billion cost to the Financial Services Compensation Scheme of transferring B&B's savings business to Santander's Abbey. Richard Pym, currently executive chairman of B&B, will step down to a non-executive role after a hand-over period, the report discloses. About Bradford & Bingley Headquartered in Bingley, United Kingdom, Bradford & Bingley plc -- http://www.bbg.co.uk/-- offers residential mortgages, and focus on a range of areas providing mortgages for individuals. It focuses on its savings business and provides a range of savings products through 197 branches and network of 140 third- party branch-type agents, by phone, post and Online. JJB SPORTS: Crystal Amber Buys 12.96% Stake ------------------------------------------- Crystal Amber, an activist fund, has bought a 12.96% stake in JJB Sports plc for an undisclosed sum, sharecast.com reports. Crystal Amber now has 32.5m shares in JJB, sharecast.com says. As reported in the Troubled Company Reporter-Europe on April 29, 2009, BBC News said JJB has avoided going into administration after creditors and landlords on Monday voted overwhelmingly for a company voluntary agreement (CVA) that could secure the company's future, along with almost 12,000 jobs. According to BBC, the deal could settle debts on 140 closed stores and allow the retailer to pay monthly, instead of quarterly, rent on its remaining 250 stores. The CVA, BBC disclosed, will now be lodged with the courts and, if there is no successful challenge, is expected to become effective at the end of May. About JJB Sports Headquartered in Wigan, England, JJB Sports plc -- http://www.jjbcorporate.co.uk/-- is engaged in the retailing of sportswear and sporting equipment. The company also operates a chain of fitness clubs, which has a smaller number of indoor soccer centers attached to them. It also operates a television broadcasting and marketing business, which specializes in the marketing of golf products and fitness equipment through Sky Television. LDV: Applies for Administration; Has Until May 6 to Secure Funding ------------------------------------------------------------------ Graham Ruddick at Telegraph.co.uk reports that LDV, the Birmingham-based van group owned by Russian oligarch Oleg Deripaska, has applied to enter administration, putting 850 jobs at the company and 6,000 in the supply chain at risk. The report relates Tony Woodley, joint general secretary of Unite, said LDV will go into administration on May 6 unless the government injects funds into the company, which had been seeking a GBP4 million-GBP5 million bridging loan while it tries to complete a deal with interested foreign investors, believed to include Malaysian group Westar. The government, the report states, has been reluctant to pump funding into LDV as it has already provided GBP25 million for the business over the last 15 years and is not convinced the company, which has been loss-making for seven years, has a viable business plan going forward. Mr. Deripaska, whose personal wealth and prestige have suffered as the downturn grips Russia and aluminium prices, has also been hesitant to support the company, the report notes. According to the report, Evgeniy Vereshchagin, the LDV chief executive, said it has until May 6 to secure funding for the company. The report discloses in a letter to staff, Mr. Vereshchagin said he could not guarantee that staff will be paid beyond the end of last week. The report recalls plans for a management buy-out at LDV broke down before hopes rose that two interested foreign investors could rescue the business. Mr. Vereshchagin, as cited in the report, said although he was still working with the interested investors, they are "finding it difficult to secure the necessary funds". LDV, the report recounts, shut down production last December. The company, the report says, has suffered amid the financial crisis and a fall of more than 70pc in commercial vehicle sales. Based in Birmingham, UK, LDV -- http://www.ldv.com/-- designs, manufactures and distributes the MAXUS range of light commercial vehicles. Originally formed in 1993 as Leyland DAF Vans Ltd, it later changed its name to LDV Group Ltd and is now under Gaz Group ownership since July 2006. LDV have an annual turnover of GBP160 million and export vehicles to Europe, the Middle East and to the Asian Pacific Rim. They employ approximately 900 people producing at a current rate of approximately 13,000 vehicles per year. The Group also includes Birmingham Pressings, a stamping business producing body panels and subassemblies for LDV and external customers. LLOYDS BANKING: To Phase Out Clerical Medical Brand --------------------------------------------------- Jonathan Russell at Telegraph.co.uk reports that Lloyds Banking Group plc is merging the sales force of its life insurance and investment businesses Scottish Widows and Clerical Medical. The merger, the report notes, follows Lloyds takeover of HBOS, the owner of Clerical Medical. The report relates Lloyds said it would cut 305 jobs and phase out the brand Clerical Medical for new business as part of the restructuring. The bank, as cited in the report, said the job cuts would be split between the sales team, which would lose 190 jobs and customer services, where 115 jobs would be lost. The job cuts are not due to be introduced until July, the report says. According to the report, under the restructuring plan the two companies will maintain their head offices, Scottish Widows in Edinburgh and Clerical Medical in Bristol. The report discloses pension products would be provided by Scottish Widows, while onshore and offshore investment products would be provided by Clerical Medical. State Guarantees As reported in the Troubled Company Reporter-Europe on March 9, 2009, Bloomberg News said Lloyds Banking Group obtained GBP260 billion or US$367 billion in state guarantees increasing the U.K. government's stake in the bank to as much as 75 percent from 43 percent. Under the agreement, Lloyds will pay GBP15.6 billion for asset protection, or 5.2 percent of the insured assets, in the form of non-voting shares, the report said citing the bank in a statement. Lloyds also agreed to increase lending to businesses and homeowners by GBP28 billion over the next 24 months, the report related. In return, the report disclosed Lloyds will get government insurance for GBP74 billion of residential mortgages, GBP18 billion of unsecured personal loans, GBP151 billion of corporate and commercial loans and GBP17 billion of treasury assets. The report stated Lloyds will be responsible for the initial GBP25 billion of losses on the insured assets and will cover 10 percent of any additional losses, with the Treasury responsible for the rest. The government will also underwrite a GBP4 billion share sale and convert existing preference shares into equity, the report disclosed. According to Bloomberg News, about 83 percent of the assets Lloyds is insuring came from HBOS Plc. Lloyds acquired HBOS's deteriorating quality of loans when it bought the firm in a government-brokered deal, the report said. The report recalled in September, Lloyds agreed to buy HBOS for about GBP7.7 billion as the government sought to prevent HBOS from collapsing after credit markets froze. In February, HBOS posted a pretax loss of GBP7.5 billion, the report noted. About Lloyds Banking Group PLC Lloyds Banking Group PLC (LON:LLOY) -- http://www.lloydsbankinggroup.com/-- formerly Lloyds TSB Group plc, is United Kingdom-based financial services company, whose businesses provide a range of banking and financial services in the United Kingdom and a limited number of locations overseas. The operations of Lloyds TSB Group in the United Kingdom were conducted through over 2,000 branches of Lloyds TSB Bank, Lloyds TSB Scotland plc and Cheltenham & Gloucester plc during the year ended December 31, 2007. Cheltenham & Gloucester plc (C&G) is the Company�s specialist mortgage arranger. Following the transfer of its mortgage lending and deposits to Lloyds TSB Bank, during 2007, C&G arranges mortgages for Lloyds TSB Bank rather than for its own account. International business is conducted mainly in the United States and continental Europe. Lloyds TSB Group's services in these countries are offered through branches of Lloyds TSB Bank. In January 2009, the Company acquired HBOS plc. The Troubled Company Reporter-Europe reported on February 19, 2009, that Fitch Ratings affirmed the Long-term and Short-term Issuer Default Ratings of the Lloyds Banking Group plc and its subsidiaries, Lloyds TSB bank plc, HBOS plc and Bank of Scotland plc at 'AA-' (AA minus) and 'F1+,' respectively. The agency has downgraded LBG's, LTSB's and BOS's Individual ratings to 'C/D' from 'B/C', 'B/C' from 'B' and 'C/D' from 'C' respectively. All three Individual ratings have been placed on Rating Watch Negative. The downgrades on the Individual ratings reflect Fitch's concern about the significant deterioration in certain portfolios within BOS's corporate banking and treasury units and higher risk parts of its residential mortgage portfolio, together with the agency's expectation that problems are likely to continue to increase in a weakening operating environment, severely challenging profitability and weakening capitalization over the coming 12-18 months. The Rating Watch Negative on the Individual ratings reflects ongoing uncertainty around these exposures and group capitalization. METRONET RAIL: Moody's Withdraws Underlying Ratings on All Bonds ---------------------------------------------------------------- Moody's has withdrawn the Underlying Ratings of all bonds issued by Metronet Rail BCV Finance plc and Metronet Rail SSL Finance plc. At the same time Moody's has withdrawn the ratings of the bonds issued by BCV Finance and SSL Finance which are unconditionally and irrevocably guaranteed by Ambac Assurance UK Limited. The ratings of the bonds issued by BCV Finance and SSL Finance which are unconditionally and irrevocably guaranteed by Financial Security Assurance (UK) Limited are unaffected. The Underlying Ratings have been withdrawn because Moody's believes it lacks adequate information to maintain a rating. Please refer to Moody's Withdrawal Policy on www.moodys.com. The ratings of the bonds issued by BCV Finance and SSL Finance which have been unconditionally and irrevocably guaranteed by Ambac have been withdrawn for business reasons. The rating withdrawal reflects Moody's current policy to withdraw ratings on Ambac-wrapped securities for which there is no published underlying rating. Should Ambac's rating subsequently move back into the investment grade range, Moody's would reinstate the rating to the wrapped instruments. For further information, please refer to Moody's special comment: 'Assignment of Wrapped Ratings When Financial Guarantor Falls below Investment Grade (May 6, 2008). These ratings have been withdrawn: Metronet Rail SSL Finance plc: * GB165 million Senior Secured Index-Linked Notes due 2032, unconditionally and irrevocably guaranteed by Ambac Assurance UK Limited * WR * Underlying rating of the above * WR * Underlying Rating of GB350 million Senior Secured Fixed Rate Notes due 2032, unconditionally and irrevocably guaranteed by Financial Security Assurance (UK) Limited * WR Metronet Rail BCV Finance plc: * GB350 million Senior Secured Fixed Rate Notes due 2032, unconditionally and irrevocably guaranteed by Ambac Assurance UK Limited * WR * Underlying Rating of the above * WR * Underlying rating of GB165 million Senior Secured Index-Linked Notes due 2032, unconditionally and irrevocably guaranteed by Financial Security Assurance (UK) Limited * WR Following this rating action, these ratings remain outstanding: Metronet Rail SSL Finance plc: * GB350 million Senior Secured Fixed Rate Notes due 2032, unconditionally and irrevocably guaranteed by Financial Security Assurance (UK) Limited -* Aa3 Metronet Rail BCV Finance plc: * GB165 million Senior Secured Index-Linked Notes due 2032, unconditionally and irrevocably guaranteed by Financial Security Assurance (UK) Limited -* Aa3 Moody's last rating action on both BCV Finance and SSL Finance was on April 13, 2009 when the bonds guaranteed by Ambac were downgraded to Ba3 from Baa1, following the downgrade of Ambac's Insurance Financial Strength Rating to Ba3 from Baa1. The ratings of BCV Finance and SSL Finance were assigned by evaluating factors believed to be relevant to the credit profile of the issuer such as i) the business risk and competitive position of the issuer versus others within its industry or sector, ii) the capital structure and financial risk of the issuer, iii) the projected performance of the issuer over the near to intermediate term, and iv) the issuer's history of achieving consistent operating performance and meeting budget or financial plan goals. These attributes were compared against other issuers both within and outside of BCV Finance and SSL Finance's core peer group and BCV Finance and SSL Finance's ratings are believed to be comparable to ratings assigned to other issuers of similar credit risk. Metronet Rail BCV Finance plc is a financing conduit that raised finance and lent the proceeds to Metronet Rail BCV Limited, and Metronet Rail SSL Finance plc is a financing conduit that raised finance and lent the proceeds to Metronet Rail SSL Limited. Metronet Rail BCV Limited and Metronet Rail SSL Limited are companies that were set up to provide infrastructure upgrade, operation and maintenance services to London Underground Limited under the terms of the Service Contracts forming part of the London Underground Public Private Partnership. SCREENPRINT PLUS: Goes Into Administration; 170 Jobs at Risk ------------------------------------------------------------ Helen Morris at printweek.com reports that Screenprint Plus, a unit of the SPP Group, has gone into the administration, threatening the jobs of up to 170 staff at the company. Andrew McTear and Chris Williams of McTear Williams & Wood were appointed administrators to the company on April 17, the report relates. The report discloses according to the company's latest accounts, dated March 31, 2007, it had a turnover of GBP10.8 million and a pre-tax profit of GBP338,000. BAsed in Norfolk, Screenprint Plus -- http://www.screenprintplus.co.uk/-- operates out of SPP Group's 4,300m2 factory in Great Yarmouth, which also houses the group's SPP Digital and Cherry Cube brands. THPA FINANCE: Fitch Cuts Rating on Class C Notes to 'BB' -------------------------------------------------------- Fitch Ratings has taken several rating actions with respect to THPA Finance Limited's notes as detailed below: -- GBP145 million class A2 secured 7.127% fixed-rate notes due 2024: affirmed at 'A'; Outlook revised to Negative from Stable -- GBP70 million class B secured 8.241% fixed-rate notes due 2028: affirmed at 'BBB'; Outlook revised to Negative from Stable -- GBP30 million class C secured floating-rate notes due 2031: affirmed at 'BB'; Outlook revised to Negative from Stable The affirmation follows recent discussions with management and a review of THPA's financial performance for the period ended December 2008. Although THPA has improved its financial performance in last twelve months (with EBITDA before exceptional items growing year-on-year by 1.9% to GBP43.2 million), its operations, especially in the last quarter ended December 2008, have been impacted by the worsening UK and global economic environment. Port operations have suffered from a reduction in steel slab transportation volumes, lower unitized cargo traffic and a decline in car imports. Conservancy and property revenues have benefited from increased contributions from property rentals, which partially offset lower river volumes related to the steel and chemical industries and crude oil transportation. Nevertheless, the overall impact on EBITDA, which showed a decline in the last quarter of 2008, has so far been mitigated by the minimum volume guarantee for steel slab handling with Corus, and the favorable effect of a business rates reduction for Teesport. While management continues to diversify THPA's revenue sources by attracting new projects and customers on its land holdings, a significant proportion of the transaction's revenues and EBITDA still arise from key customers, notably ConocoPhillips' Seal Sands oil terminal, Corus' Redcar steel plant and P&O's ferry services to Rotterdam and Zeebrugge. Among these, Fitch still views Conoco's oil volumes as the most vulnerable in the medium term, especially due to potentially diminishing North Sea oil reserves being transported through the Ekofisk pipeline. Fitch additionally expects ferry services and the traffic generated by the Redcar steel plant to suffer from the current recessionary environment. Moreover, Fitch understands that there are currently negotiations taking place between Corus and a consortium headed by Mantova-based Marcegaglia to sell the Redcar plant, however, it's uncertain at present what the outcome of the negotiations will be. THPA's reported EBITDA debt service coverage ration stood at 2.00x, as of end December 2008, ahead of its 1.25x default covenant, whilst its net cash flow DSCR stood at 1.73x. However, Fitch notes that THPA's credit metrics currently only consist of interest payments on the class A2, B and C notes following the early redemption of class A1 notes in 2004. The agency continues to view the prepayment of the class A1 notes as credit negative as debt service requirements will markedly increase in 2011 when principal amortization starts for the A2 tranche. However, the de-leveraging effect means that the annuity-based net cash flow DSCR at the 'BB' level stood at 1.50x as of December 2008. Fitch expects challenging economic conditions to continue, but the agency believes the ratings of the notes sit comfortably at their current levels, given the de-leveraging effect and EBITDA growth since original closing in 2001. The agency has nonetheless revised the Outlook for all note classes to Negative from Stable to reflect a potential negative impact of the worsening UK and global economic environment on THPA's operations. THPA is a securitization of the assets held, and earnings generated, by the PD Ports group which owns the port of Tees & Hartlepool on the northeast coast of England. PD Ports is owned by Babcock & Brown Infrastructure Ltd, an Australia-based infrastructure investment vehicle. * BOOK REVIEW: Beyond the Quick Fix ----------------------------------- Author: Ralph H. Kilmann Publisher: Beard Books Hardcover: 320 pages Listprice: US$34.95 Review by Henry Berry Every few years, a new approach is offered for unleashing the full potential of organized efforts. These are the quick fixes to which the title of this book refers. The jargon of the quick fix is familiar to any businessperson: decentralization, human resources, restructuring, mission statement, corporate strategy, corporate culture, and so on. These terms are all limited in scope or objective, and some are even irrelevant or misconceived with regard to the overall well-being and purpose of a corporation. With his extensive experience as a corporate consultant, author of numerous articles, and professor in business studies, Kilmann recognizes that each new idea for optimum performance and results is germane to some area of a corporation. However, he also recognizes that each new idea inevitably falls short in bringing positive change -- that is, a change that is spread throughout the corporation and is lasting. At best, when a corporation relies on an alluring, and sometimes little more than fashionable, idea, it is a wasteful distraction. At worst, it can skew a corporate organization and its operations, thereby allowing the corporation's true problems or weaknesses to grow until they become ruinous. As the author puts it, "Essentially, it is not the single approach of culture, strategy, or restructuring that is inherently ineffective. Rather, each is ineffective only if it is applied by itself -- as a "quick fix"." Kilmann tells corporate leaders how to break the cycle of embracing a quick fix, discarding it after it proves ineffective, and then turning to a newer and ostensibly better quick fix that soon proves to be equally ineffective. For a corporation to break this self-defeating cycle, the author offers a five-track program. The five tracks, or elements, of this program are corporate culture, management skills, team-building, strategy-structure, and reward system. These elements are interrelated. The virtue of Kilmann's multidimensional five-track program is that it addresses a corporation in its entirety, not simply parts of it. Kilmann's five tracks offer structural and operational aspects of a corporation that executives and managers will find familiar in their day-to-day leadership and strategic thinking. Thus, the author does not introduce any unfamiliar or radical perspectives or ideas, but rather advises readers on how to get all parts of a corporation involved in productive change by integrating the five tracks into "a carefully designed sequence of action: one by one, each track sets the stage for the next track." Kilmann does more, though, than bring all significant features of a modern corporation together in a five-track program and demonstrate the interrelation of its elements. His singularly pertinent and useful contribution is providing a sequence of steps to be implemented with respect to each track so that a corporation progresses toward its goals in an integrated way. Beyond the Quick Fix is a manual for implementing and evaluating the progress of a five-track program for corporate success. The book should be read by any corporate leader desiring to bring change to his or her organization. Ralph H. Kilmann has been connected with the University of Pittsburgh for 30 years. For a time, he was its George H. Love Professor of Organization and Management at its Katz Graduate School of Business. Additionally, he is president of a firm specializing in quantum transformations. ********* 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 * * *