/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/090611.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 Thursday, June 11, 2009, Vol. 10, No. 114 Headlines A U S T R I A GBI PERSONALLEASING: Creditors Have Until June 30 to File Claims HMT TRANSPORT: Creditors Must File Claims by June 23 HYPO ALPE-ALDRIA: Moody's Cuts Bank Fin'l Strength Rating to 'E+' JUNO - FIA PAPIERVERARBEITUNGS: Claims Filing Deadline is June 30 KLAUSRIEGLER GMBH: Creditors Must File Claims by June 30 PD-PERSONALBEREITSTELLUNG: Claims Filing Period Ends June 23 F R A N C E REMY CONTREAU: Net Profit Down to EUR86.1 Mln in FY Ended March 31 G E R M A N Y ARCANDOR AG: Files for Bankruptcy Protection DRESDNER FUNDING: S&P Raises Rating on EUR500 Mln Certs. from CCC E-MAC DE: Moody's Junks Ratings on Four Classes of Notes FRESENIUS MEDICAL: S&P Affirms 'BB' Issue Rating on Securities KLOECKNER & CO: S&P Assigns 'B+' Rating on EUR97.9 Mln Bonds PORSCHE AUTOMOBIL: Close to Reaching Qatar Investment Deal VAC FINANCIERUNG: Moody's Cuts Corporate Family Rating to 'Caa2' WADAN YARDS: Insolvency Affects Muehlhan AG WESTLB AG: Secures Additional EUR4 Billion State Guarantee G R E E C E DRYSHIPS INC: Signs Waiver Agreement on US$1.125 Bln Facility WIND HELLAS: Weak Q1 2009 Results Prompt S&P to Junk Rating I R E L A N D SMURFIT KAPPA: Seeks Consent to Amend Senior Credit Facility K A Z A K H S T A N AVTOLESPROM LLP: Creditors Must File Claims by June 26 INTER FOOD: Creditors Must File Claims by June 26 MEGA CONSULT: Creditors Must File Claims by June 26 RAMEX LLP: Creditors Must File Claims by June 26 STROY SERVICE & K: Creditors Must File Claims by June 26 K Y R G Y Z S T A N BEREKE EMTI: Court Names M. Osmonaliyev as Insolvency Manager L A T V I A ASK RIGA: Declared Insolvent by Riga Court R O M A N I A * ROMANIA: Fitch Assigns 'B+' Rating on Oradea Metropolitan Area R U S S I A AMTEL-VREDESTEIN OJSC: Files for Insolvency in Moscow Court EVRAZ GROUP: Moody's Corrects Press Release; Reviews 'Ba3' Rating NAVTEKS LLC: Creditors Must File Claims by June 22 PRESTIZH-STROY LLC: Arkhangelskaya Bankruptcy Hearing Set June 19 PROKHORO-BALANDINSKIY MARBLE: Claims Filing Period Ends June 22 ROSSICH LLC: Creditors Must File Claims by June 22 S P A I N REALIA: Nears EUR871 Million Debt Refinancing Deal With Banks S W I T Z E R L A N D A. + M. ISLAMI: Claims Filing Deadline is June 18 ABAVUS AG: Creditors' Proofs of Claim Due on June 18 AKIDOR AG: Creditors Have Until June 18 to File Claims GERBER AG: Claims Filing Deadline is June 18 GYMAR GMBH: Creditors Must File Claims by June 18 MAX STUESSI: Claims Filing Deadline is June 17 U K R A I N E BUDROOST LLC: Creditors Must File Claims by June 18 CASCADE OJSC: Creditors Must File Claims by June 18 CITEL LLC: Creditors Must File Claims by June 18 GOLDFIN COMPANY: Creditors Must File Claims by June 18 IMEXBANK: Moody's Withdraws 'E' Bank Financial Strength Rating LVOV SCIENCE: Court Starts Bankruptcy Supervision Procedure OZBUD TRADE: Creditors Must File Claims by June 18 PANTRANS SUBSIDIARY: Creditors Must File Claims by June 18 UKRAINIAN THERMAL: Court Starts Bankruptcy Supervision Procedure U N I T E D K I N G D O M ATRIUM EUROPEAN: S&P Cuts Long-Term Corp. Credit Rating to 'BB-' BROADGATE FINANCING: Fitch Cuts Rating on Class D Notes to 'BB' EUROSAIL 2006-2BL: S&P Cuts Rating on Class F1c Notes to 'CCC-' FAYCROSS LTD: In Administration; Begbies Traynor Appointed FIRST QUENCH: Issues Going Concern Warning HARVEY WORLD: In Administration; 25 Shops Sold to Vacation World HYPO REAL: Moody's Junks Rating on GBP14.9 Mln Class E Notes INSIGHT EVENTS: Losses Prompt Liquidation JESTERS: Goes Into Administration Following Expansion JUNARED PROPERTY: In Administration; Deloitte Appointed LLOYDS BANKING: To Close 164 Cheltenham & Gloucester Branches * Moody's Reviews Ratings on 26 Notes From 11 CDO Transactions * Moody's Reviews Ratings on 14 Notes Isued by 5 CDO Transactions * Upcoming Meetings, Conferences and Seminars ********* ============= A U S T R I A ============= GBI PERSONALLEASING: Creditors Have Until June 30 to File Claims ---------------------------------------------------------------- Creditors of GBI Personalleasing GmbH have until June 30, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for July 14, 2009 at 2:00 p.m. at: Land Court of Steyr Second Floor Steyr Austria For further information, contact the company's administrator: Mag. Ernst Lehenbauer Hauptplatz 21 4470 Enns Austria Tel: 07223/810 10 Fax: DW 20 E-mail: ra.lehenbauer@attglobal.net HMT TRANSPORT: Creditors Must File Claims by June 23 ---------------------------------------------------- Creditors of HMT Transport GmbH have until June 23, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for July 7, 2009 at 9:00 a.m. at: Land Court of Linz Hall 522 Linz Austria For further information, contact the company's administrators: Dr. Erhard Hackl Dr. Karl Hatak Mag. Markus Weixlbaumer Hofgasse 7 4020 Linz Austria Tel: 0732/776234, 776235 Fax: 0732/776234 E-mail: hackl.hatak@aon.at HYPO ALPE-ALDRIA: Moody's Cuts Bank Fin'l Strength Rating to 'E+' ----------------------------------------------------------------- Moody's Investors Service downgraded the bank financial strength rating of Hypo Alpe-Adria-Bank International AG to E+ from D-. The Baa1 long-term debt and deposit ratings and the Baa2 rating on the bank's subordinated liabilities were confirmed. The ratings carry a negative outlook. At the same time, the Prime-2 short-term ratings and the Caa2 ratings on the hybrid securities (Tier 1 instruments) issued by Hypo Alpe-Adria's subsidiaries, Hypo Alpe Adria (Jersey) Ltd and Hypo Alpe Adria (Jersey) II Ltd, were affirmed. The Aa2/Aa3/Prime-1 ratings for debt backed by the Austrian federal state of Carinthia and the Aaa rating for debt backed by the Republic of Austria were also affirmed. The ratings of the hybrid instruments and the backed long-term ratings carry a stable outlook. Moody's rating action concludes the review of Hypo Alpe- Adria's BFSR and debt and deposit ratings initiated on 13 May 2009 and 11 November 2008, respectively. BFSR Downgraded Due to Concerns About Asset Quality and Low Profitability The downgrade of the BFSR reflects Moody's expectation that Hypo Alpe-Adria will not be able to operate profitably until 2011. The historically low profitability of the bank does not provide a sufficient buffer to absorb the effects of the continuing downturn in the global economy and the persistent economic turmoil in international capital markets that is likely to have a worsening negative impact on the economies of Hypo Alpe Adria's core markets in South-Eastern Europe. Hence, Moody's expects pressure on earnings, asset quality and capital ratios to increase further and the likelihood that the bank would need outside support to rise. At December 31, 2008, around 43% of the bank's risk-weighted assets came from the SEE region, with Croatia and Slovenia being the most important markets, followed by activities in Serbia and Bosnia Herzegovina. "Hypo Alpe-Adria's risk management practices have historically been below industry standards. This shortcoming, combined with the enormously fast growth of the bank's balance sheet to EUR43.3 billion at the end of 2008 from EUR17.8 billion at the end of 2004, is key for the rating, especially in the current market environment. Over the next two to three years, Moody's expect the bank's provisioning to be well above that of its peers, with noticeable adverse effects on its profits and capital ratios," says Dominique Nutolo, a Frankfurt-based Moody's Assistant Vice President and lead analyst for Hypo Alpe-Adria. Moody's notes that Hypo Alpe-Adria is in the process of implementing measures to enhance its processes and integrate them into those of its major shareholder, Bayerische Landesbank. This builds on the bank's recent changes to its senior management. Hypo Alpe-Adria has a large gap to bridge in order to improve its risk management processes and culture to an acceptable level and it is clear that this is a long-term initiative, the success of which cannot be taken for granted. Overall, Moody's believes that the E+ BFSR better captures the increased likelihood of Hypo Alpe-Adria needing further outside support in order to cope with the challenging and unstable economic environment, particularly given its historically low profitability, aggressive expansion and weak risk management practices. Long-Term Ratings Confirmed Due to Unchanged Strong Support Assumptions The confirmation of Hypo Alpe-Adria's Baa1 debt and deposit ratings reflects Moody's unchanged support assumptions. The rating agency assesses a high probability of support from Hypo Alpe-Adria's parent, BayernLB, in the light of a capital injection from BayernLB of EUR700 million in 2008. Furthermore, Moody's believes that BayernLB Group's restructuring plans, which are still subject to EU approval, are unlikely to affect the probability of parental support for Hypo Alpe-Adria Moody's also takes the probability of regional and local government and systemic support into account and, overall, Hypo Alpe-Adria remains in the high support category. The outlook on the debt and deposit ratings is negative in line with the negative outlook on the BFSR. Moody's previous rating action on Hypo Alpe-Adria was on May 13, 2009, when Moody's placed the bank's D- BFSR on review for possible downgrade and downgraded its debt and deposit ratings to Baa1 from A2. Based in Klagenfurt, Austria, Hypo Alpe-Adria reported 2008 net losses of EUR520 million and total assets of EUR43.3 billion at the end of the year. JUNO - FIA PAPIERVERARBEITUNGS: Claims Filing Deadline is June 30 ----------------------------------------------------------------- Creditors of Juno-Fia Papierverarbeitungs GmbH have until June 30, 2009 to file their proofs of claim. A court hearing for examination of the claims has been scheduled for July 14, 2009 at 9.30 a.m. For further information, contact the company's administrator: Dr. Andreas Wippel Triester Str. 15 2620 Neunkirchen Austria Tel: 02635/62860 Fax: 02635/62861 14 E-mail: kanzlei@dr-wippel.at KLAUSRIEGLER GMBH: Creditors Must File Claims by June 30 -------------------------------------------------------- Creditors of Klausriegler GmbH have until June 30, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for July 14, 2009 at 2:15 p.m. at: Land Court of Steyr Second Floor Steyr Austria For further information, contact the company's administrator: Dr. Norbert Mooseder Stelzhamerstrasse 1 4400 Steyr Austria Tel: 07252/42 4 24 Fax: DW 24 E-mail: lawfirm@gltp.at PD-PERSONALBEREITSTELLUNG: Claims Filing Period Ends June 23 ------------------------------------------------------------ Creditors of PD-Personalbereitstellung und Fassadenbau Daurer KG have until June 30, 2009, to file their proofs of claim. will convene a meeting of its creditors at 13.45 p.m. on July 14, 2009, at Land Court of Steyr/2nd floor. A court hearing for examination of the claims has been scheduled for July 14, 2009 at 1:45 p.m. at: Land Court of Steyr Second Floor Steyr Austria For further information, contact the company's administrator: Dr. Wolfgang Strasser Hauptplatz 11 4300 St. Valentin Austria Tel: 07435/52 4 37 Fax: 07435/5243721 E-mail: ra-strasserwolf@rechtsanwaelte.co.at =========== F R A N C E =========== REMY CONTREAU: Net Profit Down to EUR86.1 Mln in FY Ended March 31 ------------------------------------------------------------------ Alice Dore at Dow Jones Newswires reports that Remy Cointreau SA recorded net profit of EUR86.1 million for the financial year ended March 31, down from EUR98.4 million a year earlier. According to Dow Jones, Remy's operating profit fell 14% to EUR137 million. Dow Jones relates the company said it will pay a dividend of EUR1.30 a share for fiscal 2009. Headquartered in Cognac, France, Remy Cointreau -- http://www.remycointreau.com/-- offers a range of premium wine and spirit brands, known and recognized throughout the world. These brands include, among others, Remy Martin, Cointreau, Passoa, Metaxa, Mount Gay Rum, Charles Heidsieck and Piper- Heidsieck. * * * Remy Cointreau SA continues to carry a Ba2 corporate family rating and senior unsecured rating from Moody's Investors Service with negative outlook. The company still carries 'BB-' long-term corporate credit and debt ratings from Standard & Poor's Ratings Services with negative outlook. ============= G E R M A N Y ============= ARCANDOR AG: Files for Bankruptcy Protection -------------------------------------------- Holger Elfes and Tony Czuczka at Bloomberg News report that Arcandor AG has filed for bankruptcy protection after the German government turned down its request for loan guarantees. Bloomberg News relates the district court in Arcandor's home town of Essen named lawyer Klaus Hubert Goerg as insolvency administrator. German Chancellor Angela Merkel, as cited by Bloomberg News, said Arcandor's collapse was "unavoidable" after investors and banks offered too little to save the retailer. Bloomberg News discloses Euro am Sonntag said Tuesday that the retailer won concessions worth about EUR750 million after overnight talks with suppliers, creditors, landlords and shareholders. "The commitments by the owners and the creditors were absolutely not enough for us to step in," Bloomberg News quoted Ms. Merkel as saying. "So this is now an unavoidable step, but one whose opportunities should be put to good use." BBC News reports Arcandor said its bankruptcy filing covered German retailer Karstadt and its mail-order businesses. However, it added Thomas Cook would "remain unaffected", BBC News states. Bloomberg News recalls the government on Monday rejected two applications for help by Arcandor, which employs 43,000 people. According to Bloomberg News, the retailer sought loan guarantees of EUR650 million (US$904 million) from Germany's Economy Fund program as debt came due this week. It also sought a further EUR437 million from a state-owned bank, Bloomberg News notes. Metro Merger Bloomberg News says according to Ms. Merkel, a merger between Karstadt and Metro's Kaufhof chain is still a possibility. Bloomberg News discloses Metro said it's ready to talk with all parties about the formation of a German department store company which would involve about 60 Karstadt stores. Outstanding Commissions Jeffrey Ng at Dow Jones Newswires reports Li & Fung Ltd. said Wednesday Arcandor owes the company outstanding commissions totaling US$5.4 million. Dow Jones relates the Hong Kong-listed trading house, which is a buying agent for the German department store and supervises the production of its garments and hard goods, said it will offer assistance to the factories that supplied products to Arcandor's retail units, including Karstadt, Primondo and Quelle. Li & Fung will provide factories with information about Arcandor's insolvency proceedings and "advise them on how to file claims through proper legal representation in Germany for amounts owed to them," Dow Jones quoted Li & Fung as saying in a statement. About Arcandor AG Germany-based Arcandor AG (FRA:ARO) -- http://www.arcandor.com/-- formerly KarstadtQuelle AG, is a tourism and retail group. Its three core business areas are tourism, mail order services and department store retail. The Company's business areas are covered by its three operating segments: Thomas Cook, Primondo and Karstadt. Thomas Cook Group plc is a tour operator with operations in Europe and North America, set up as a result of a merger between MyTravel and Thomas Cook AG. It also operates the e-commerce platform, Thomas Cook, supporting travel services. Primondo has a portfolio of European universal and specialty mail order companies, including the core brand Quelle. Karstadt operates a range of department stores, such as cosmopolitan stores, including KaDeWe (Kaufhaus des Westens), Karstadt Oberpollinger and Alsterhaus; Karstadt brand department stores; Karstadt sports department stores, offering sports goods in a variety of retail outlets, and a portal, karstadt.de that offers online shopping, among others. DRESDNER FUNDING: S&P Raises Rating on EUR500 Mln Certs. from CCC ------------------------------------------------------------------ Standard & Poor's Ratings Services said that it had raised its rating on EUR500 million Tier 1 hybrid capital dated silent partnership certificates issued by Dresdner Funding Trust II of Commerzbank AG (A/Negative/A-1) to 'BBB+' from 'CCC'. At the same time, the rating was removed from CreditWatch, where it was placed with negative implications on Jan. 12, 2009. The rating action follows an announcement by Commerzbank to the Luxembourg Stock Exchange that it will redeem the certificates on their call date on June 30, 2009. The rating action reflects S&P's expectation that Commerzbank will redeem the instruments at their full stated liquidation amount plus annual interest for the period ended June 30, 2009. E-MAC DE: Moody's Junks Ratings on Four Classes of Notes -------------------------------------------------------- Moody's Investors Service has downgraded the ratings of all notes issued by E-MAC DE 2005-I B.V., E-MAC DE 2006-I B.V., E-MAC DE 2006-II B.V. and E-MAC DE 2007-I B.V. (the affected transactions). The rating actions conclude the review for downgrade that was initiated on May 30, 2008. The ratings of some of the classes of notes in the affected transactions were also previously downgraded: i) on September 12, 2008 due to worse-than-expected collateral performance; ii) December 12, 2008 due to the lack of back-up arrangements for the cash management and certain servicer functions; and iii) on April 7, 2009 due to an update of Moody's rating methodology for German RMBS. As detailed in the May 30, September 12 and December 12 press releases, Moody's rating review was prompted by the exposure of the affected transactions to the ability of GMAC RFC Investment B.V. to fulfil its role as cash manager and servicer in these transactions, if it were to become insolvent. GMAC RFC is an indirect wholly-owned subsidiary of Residential Capital, LLC (ResCap) which was downgraded to Moody's lowest rating of C on 20 November 2008. ResCap has required support from its parent, GMAC LLC (GMAC, rated C), to continue as a going concern for over one year. Although the recent U.S. government actions to support GMAC increase its ability to support to ResCap, its willingness to support ResCap remains uncertain. Should parental support be discontinued Moody's believes ResCap would eventually default on its obligations. Moody's has also noted that GMAC and its subsidiaries were not part of the bankruptcy filing of General Motors Corporation on 1st June 2009. The downgrades reflect the continued lack of back-up arrangement for GMAC RFC's role as appointed servicer and issuer administrator, which performs the tasks generally associated with those of a cash manager in these transactions, as well as Moody's analysis of the possible consequences for noteholders, if there was a servicing or cash management disruption. In its role as servicer (referred to as MPT provider), GMAC RFC sub-delegates the day-to-day servicing of the loan portfolio to Kreditwerk Hypotheken Management GmbH and part of the special servicing to Rechtsanwaelte Paulus Westerwelle. GMAC RFC does part of the special servicing itself and both sub-delegates rely on it to make all credit-related decisions. In addition, it is possible that a failure by GMAC RFC to fulfil its various obligations would result in the inability for investor reports to be produced on a timely basis. A cash management disruption could result in the inability of the issuer to allocate available funds when payments become due. If the inability to allocate funds were to exceed the various grace periods (typically 15 days for payments on the notes, three days for payments to swap counterparties), noteholders could experience principal or interest payment defaults and losses. In sizing these potential losses, Moody's has taken into account the exposure of the notes to the unwinding of interest hedges following termination events prompted by missed payments under the swaps. It also incorporated the potential increase in servicing costs and the potentially higher losses these structures may face in the event of a servicing transfer, which would affect all classes of notes. In all the German E-MAC DE transactions, noteholders have the option to put their notes to the issuer on pre-defined dates. Note redemptions under this put option would be funded by a servicer advance to be provided by GMAC RFC to the issuer. Because of its optional nature, this feature is not reflected in Moody's ratings. Accordingly, the downgrades do not reflect the probability that GMAC RFC will or will not be in a position to provide this servicer advance or that the issuer will be able to make timely payment to investors who exercise their put options. According to the transaction documents, the failure of the issuer to redeem notes put by investors would not constitute an event of default. If any of the notes are not redeemed on the put option date, the interest rate on such notes will be subject to a step up. Because this step up interest is calculated with reference to market prevailing rates, it could be a large multiple of the interest on the notes before the put option date. The step up component of the interest on the notes (referred to as the "extension margin" and unrated by Moody's) is deeply subordinated in the waterfall Finally, as part of the put option process, Moody's anticipates that it will be requested to affirm its current ratings on all the notes of the German E-MAC DE transactions prior to the put option date and that similar requests will be made to the other agencies rating these transactions. The inability of any of the agencies rating the transactions to comply with such requests may lead to a mandatory redemption of all the notes in the German E-MAC DE transactions, which could lead to an enforcement process. Yet, there is no certainty that Moody's or other rating agencies will be able to comply with this request and Moody's ratings are consistent with this uncertainty. However, with respect to principal payments, Moody's ratings address the ultimate payment at par on or before the rated final legal maturity date and not the likelihood of timely payments under a mandatory redemption. In addition, Moody's ratings address only the credit risks associated with the transaction. Other risks have not been addressed, but may have a significant effect on yield to investors. Complete List Of Rating Actions Issuer: E-MAC DE 2005-I B.V. -- Class A: Downgraded to Baa1; previously on 12 December 2008 downgraded to Aa1 and remained on review for possible downgrade; -- Class B: Downgraded to Baa1; previously on 7 April 2009 downgraded to Aa3 and remained on review for possible downgrade; -- Class C: Downgraded to Ba1; previously on 7 April 2009 downgraded to Baa1 and remained on review for possible downgrade; -- Class D: Downgraded to B1; previously on 7 April 2009 downgraded to Ba1 and remained on review for possible downgrade; -- Class E: Downgraded to Caa2; previously on 7 April 2009 downgraded to B2 and remained on review for possible downgrade. Issuer: E-MAC DE 2006-I B.V. -- Class A: Downgraded to Baa1; previously on 12 December 2008 downgraded to Aa1 and remained on review for possible downgrade; -- Class B: Downgraded to Baa1; previously on 7 April 2009 downgraded to A1 and remained on review for possible downgrade; -- Class C: Downgraded to Ba2; previously on 7 April 2009 downgraded to Baa2 and remained on review for possible downgrade; -- Class D: Downgraded to B1; previously on 7 April 2009 downgraded to Ba1 and remained on review for possible downgrade; -- Class E: Downgraded to Caa1; previously on 7 April 2009 downgraded to B1 and remained on review for possible downgrade. Issuer: E-MAC DE 2006-II B.V. -- Class A1: Downgraded to Baa1; previously on 12 December 2008 downgraded to Aa1 and remained on review for possible downgrade; -- Class A2: Downgraded to Baa1; previously on 12 December 2008 downgraded to Aa1 and remained on review for possible downgrade; -- Class B, Downgraded to Baa2; previously on 7 April 2009 downgraded to A2 and remained on review for possible downgrade; -- Class C: Downgraded to Ba2; previously on 7 April 2009 downgraded to Baa2 and remained on review for possible downgrade; -- Class D: Downgraded to B2; previously on 7 April 2009 downgraded to Ba2 and remained on review for possible downgrade; -- Class E: Downgraded to Caa2; previously on 7 April 2009 downgraded to B2 and remained on review for possible downgrade; -- Class F: Downgraded to Caa2; previously on 12 September 2008 downgraded to B2 and remained on review for possible downgrade. Issuer: E-MAC DE 2007-I B.V. -- Class A1: Downgraded to Baa1; previously on 12 December 2008 downgraded to Aa1 and remained on review for possible downgrade; -- Class A2: Downgraded to Baa1; previously on 12 December 2008 downgraded to Aa1 and remained on review for possible downgrade; -- Class B: Downgraded to Baa1; previously on 7 April 2009 downgraded to Aa3 and remained on review for possible downgrade; -- Class C: Downgraded to Baa3; previously on 7 April 2009 downgraded to A3 and remained on review for possible downgrade; -- Class D: Downgraded to B1; previously on 7 April 2009 downgraded to Ba1 and remained on review for possible downgrade; -- Class E: Downgraded to B3; previously on 7 April 2009 downgraded to Ba3 and remained on review for possible downgrade. FRESENIUS MEDICAL: S&P Affirms 'BB' Issue Rating on Securities -------------------------------------------------------------- Standard & Poor's Ratings Services said that it has revised its recovery rating on the US$225 million and EUR300 million trust preferred securities -- issued, respectively, by Fresenius Medical Care Capital Trust IV and Fresenius Medical Care Capital Trust V to '4' from '3', indicating its expectation of average (30%-50%) recovery in the event of a payment default. At the same time, the 'BB' issue rating on these instruments was affirmed; the rating is the same as the corporate credit rating on the parent company, German health care group Fresenius Medical Care AG & Co. KGaA (FMC; BB/Stable/--). S&P's '1' recovery rating on the US$4.6 billion senior secured credit facilities taken on by FMC and S&P's '2' recovery rating on the US$500 million unsecured notes issued by Fresenius Medical Care Finance III S.A. and guaranteed by FMC are unchanged. The 'BBB-' and 'BB+' issue ratings on the credit facilities and notes, respectively, were affirmed. The revision of S&P's recovery rating on the TPS reflects the higher level of prior-ranking liabilities in the waterfall of post-default payment priorities. FMC has made increased use of its securitization facility (to US$539 million at year-end 2008 from US$85 million at year-end 2007). This increase in prior- ranking obligations results in a lower residual enterprise value available for debtholders -- in particular for TPS holders, who are subordinated to both the senior secured lenders and the unsecured noteholders. Under S&P's updated waterfall, S&P has calculated lower coverage for TPS than S&P previously anticipated -- 30%-50%, versus 50%-70% -- hence S&P's revised recovery rating of '4' on this debt. However, S&P believes that the subordinated nature of the TPS makes recovery prospects for this debt particularly volatile. S&P has assumed in its simulated default scenario that the prior- ranking senior secured facilities will be refinanced by the time of the hypothetical default in 2012, leading to an estimated outstanding principal amount of about US$3.3 billion at default, compared with an outstanding committed amount of about US$4.1 billion as of Dec. 31, 2008 (including, in both cases, a fully drawn US$1 billion revolving credit facility). However, the recovery prospects for TPS holders could be materially weaker if the senior-ranking credit facilities are refinanced in such a way that there is more than US$3.3 billion of principal outstanding at default. Recovery Analysis The recovery ratings are supported by S&P's valuation of FMC on a going-concern basis, given its satisfactory business risk profile, its leading market position in North American dialysis services and product markets, the stabilizing effects of a recurring revenue stream, and attractive growth prospects due to an aging population. At S&P's simulated point of default in 2012, S&P estimates the stressed enterprise value to be about US$5.8 billion. S&P's estimated recovery prospects take into account different security packages and a possible evolution of the capital structure on the path to default. KLOECKNER & CO: S&P Assigns 'B+' Rating on EUR97.9 Mln Bonds ------------------------------------------------------------ Standard & Poor's Ratings Services said it assigned its 'B+' senior unsecured debt rating to the EUR97.9 million 6% convertible bonds due 2014, issued by Kloeckner & Co. Financial Services S.A. KFS is a finance subsidiary of Germany-based metals distributor Kloeckner & Co. S.E. (Kloeckner; BB/Stable/--), which is guaranteeing the bonds. The recovery rating on these bonds is '6', indicating S&P's expectation of negligible (0%-10%) recovery in the event of payment default. The issue rating on these convertible bonds is two notches below the corporate credit rating on Kloeckner, reflecting its structural subordination to the liabilities of the group's operating subsidiaries, including the drawings under the EUR300 million multicurrency revolving credit facility and EUR500 million debtor securitization facility. At the same time, the existing EUR325 million 1.5% senior unsecured convertible bonds issued by Kloeckner & Co. Finance International S.A. was affirmed at 'B+', two notches lower than the 'BB' corporate credit rating of the guarantor, Kloeckner. The recovery rating on these bonds is unchanged at '6', indicating S&P's expectation of negligible (0%-10%) recovery in the event of a payment default. Recovery Analysis The issue and recovery ratings on the senior unsecured convertible bonds issued by KFS and KFI take into consideration significant pricing pressure on a discrete asset sale, which S&P sees as the most likely source of recoveries. The ratings also take into account the potential for cross-jurisdictional insolvency issues, the high level of prior-ranking debt facilities, and other structurally senior unsecured claims. Under S&P's simulated default scenario, S&P believes Kloeckner would be sold as a going concern on account of its competitive market position and its strategic presence as Europe's leading independent metals distributor. However, due to the nature of the metals distribution business, it is S&P's view that the stressed enterprise value of Kloeckner is underpinned by its asset values. Accordingly, S&P has valued the business on a discreet asset valuation basis. Ratings List New Rating Kloeckner & Co. Financial Services S.A. Senior Unsecured Debt* B+ Recovery Rating 6 Ratings Affirmed Kloeckner & Co. Finance International S.A. To From -- ---- Senior Unsecured Debt* B+ B+ Recovery Rating 6 6 * Guaranteed by Kloeckner & Co. S.E. PORSCHE AUTOMOBIL: Close to Reaching Qatar Investment Deal ---------------------------------------------------------- Chris Reiter at Bloomberg News reports that Porsche Automobil Holding SE said it is in exclusive talks with Qatar about a potential investment in the German sports-car maker. Citing two people people familiar with the discussions, who declined to be identified because the negotiations are private, Bloomberg News discloses Porsche may sell a stake of about 25 percent. Bloomberg News relates one of the people said an agreement may be reached in the next few weeks. Bloomberg News recalls Qatari Finance Minister Youssef Kamal said June 4 that his government is ready to invest in Porsche, which owns 51 percent of Volkswagen, but he declined to specify a figure or a deadline. KfW Loan Christoph Rauwald and Eyk Henning at the Wall Street Journal reports that last week, Porsche submitted a loan request to state- controlled KfW Bank to secure the remaining EUR1.75 billion part of a EUR12.5 billion credit line. The WSJ states according to Porsche, if the request is approved, KfW would receive normal interest payments, adding that the loan would be fully collateralized. Call Options Dow Jones says Porsche is under pressure because its net debt tripled to EUR9 billion (US$12.5 billion) after it raised its stake in Volkswagen to almost 51% in January and cash flows at its core sports-car operations turned anemic as demand for luxury cars collapsed amid the economic downturn. Porsche, Bloomberg News notes, holds options for about 20 percent of Volkswagen stock following transactions last year to build up the stake in an effort to reach a 75 percent ownership target. Porsche is examining a sale of the call options as part of its discussions with an investor, Bloomberg News discloses citing a person familiar with the plan. Headquartered in Stuttgart, Germany Porsche Automobil Holding SE -- http://www.porsche-se.com-- is a holding company engaged in the car manufacture industry. The Company's core products are sports cars and all-terrain vehicles. The Porsche sports car range includes the Boxster, the Cayman, the 911 and the Carrera GT. The Boxster and the Boxster S are contemporary reinterpretations of the Company's original roadsters, the 356/1 and the 550 Spyder. There are several varieties of the 911, representing the model's continuous evolution. The Carrera GT has the race-derived chassis construction and minimum weight. The Company's all-terrain models, Cayenne, Cayenne S, Cayenne Turbo and Cayenne Turbo S are balanced, four-wheel drive vehicles for on-road and off-road use. Porsche Automobil Holding SE also offers financing services, spare parts and accessories for new and classic models, as well as an approved used car service. VAC FINANCIERUNG: Moody's Cuts Corporate Family Rating to 'Caa2' ---------------------------------------------------------------- Moody's Investors Service has downgraded the corporate family rating and probability of default rating of Vac Finanzierung GmbH, the ultimate holding company of Vacuumschmelze GmbH & Co. KG, to Caa2 from Caa1. At the same time, Moody's downgraded Vac Finanzierung's senior secured notes to Caa3 from Caa2. The rating outlook is negative. The rating action concludes the review for possible downgrade initiated by Moody's on March 5, 2009. The downgrade of the CFR to Caa2 reflects Moody's belief that VAC will be challenged by these factors: (1) the recently regained headroom under the company's senior credit facility financial covenants is likely to tighten again over the next few quarters in the absence of a significant performance turnaround; and (2) VAC's continued weakening operating performance over the past few weeks with limited visibility of a turnaround in the short term, which has further increased the company's financial leverage beyond the expectations for the previous Caa1 rating category. The negative outlook reflects Moody's view that VAC will be challenged to turn around its performance and leverage metrics over the next few quarters in light of very low visibility for all segments. Furthermore, uncertainty surrounds whether the company will be able to remain in compliance with its financial covenants during 2009 and whether VAC will be successful in renegotiating its covenants beyond 2010 without impairments to bondholders' claims. While Moody's notes that the company has successfully agreed in May 2009 with the lenders of the senior credit facility for 2009 to reset its financial covenants, the new covenant levels have been tailored tightly to a business plan that expects a stabilization of performance already in Q2, 2009 and a subsequent upturn in EBITDA generation towards the level of H2, 2008. Hence, an inability to turn around operating performance or the absence of contributions by the financial sponsor could trigger a financial covenant violation during 2009. In addition, the rating reflects the uncertainty of whether the company will be successful in renegotiating covenants beyond 2010, which are expected to be agreed by September 2009 based on a revised business plan. Moody's Caa2 rating expects the continued support of bank lenders and financial sponsor. The company's performance erosion has been triggered by significantly lower demand for magnetic products in the majority of VAC's business segments. As a consequence, debt to LTM EBITDA has eroded to above 7.0x in the last twelve months ending March 2009 from 6.0x at fiscal year end 2008 and is expected to rise further during the course of 2009. This trend reflects the magnitude and pace of performance contraction. Consequently, financial leverage metrics are below the thresholds for the previous Caa1 rating category and reflect an unsustainable leveraged capital structure in a scenario of an extended downturn. At the end of March 2009, VAC had EUR22 million of on-balance sheet cash, and availability under a EUR15 million liquidity facility decreased from EUR40 million as part of the recent covenant renegotiations until 15 September 2009. The reduction of the liquidity facility diminishes the company's liquidity cushion in a scenario of a protracted period of weak operating performance, resulting in negative free cash flows, particularly as the company has annual debt repayment requirements of around EUR7 million. Downgrades: Issuer: VAC Finanzierung GmbH -- Probability of Default Rating, Downgraded to Caa2 from Caa1 -- Corporate Family Rating, Downgraded to Caa2 from Caa1 -- Senior Secured Regular Bond/Debenture, Downgraded to Caa3 from Caa2 Outlook Actions: Issuer: VAC Finanzierung GmbH -- Outlook, Changed To Negative From Rating Under Review The last rating action was implemented on 5 March 2009, when Moody's downgraded VAC's CFR to Caa1 from B3 and placed the ratings under review for possible downgrade. Headquartered in Hanau, Germany, Vacuumschmelze GmbH & Co KG has a solid and well-established market position in the design and manufacturing of magnetic products. In 2008, the company generated revenues of EUR324 million. WADAN YARDS: Insolvency Affects Muehlhan AG ------------------------------------------- Muehlhan AG said the insolvency of Wadan Yards will have a significant impact on the company. The outstanding receivable claims of EUR3 million against the Wadan Yards in Rostock-Warnemuende, for which Muehlhan has been providing surface-protection services for over 20 years, are now in serious jeopardy due to last Friday's insolvency filing. This occurred after the shareholders refused to honor their own financing and purchase commitments, despite extensive support provided by the Federal government and the State of Mecklenburg-Pomerania. Within the next few days, a decision will be made as to whether the jumbo ferries under construction will be completed and therefore whether the shipyard will continue operating over the short term under the supervision of the insolvency administrator. Consequently, Muehlhan's Executive Board no longer considers the earnings targets for 2009 (EBIT of EUR9 to 12 million) to be realistic. To what extent the bad-debt provisions and the production downtime will affect profitability will only become clear once the insolvency proceedings are underway. The Executive Board expects to issue an adjusted earnings forecast with the publication on August 7, 2009 of the results for the first half. On June 9, 2009, the Troubled Company Reporter-Europe, citing Marinelog, reported Wadan Yards MTW GmbH on Friday filed for insolvency in the District Court in Schwerin, Germany, putting 2,500 jobs at the shipyards in Wismar and Rostock at risk. Wadan Yards, which is 70 percent owned by Russian privately held investment company FLC West, is now being supervised by a court-appointed insolvency administrator, Marc Odebrecht of Brinckmann & Partners, Marinelog disclosed. About Muehlhan The Muehlhan Group -- http://www.muehlhan.com-- is a leading world provider of marine surface protection. Its core business consists of applying and renewing corrosion protection coatings to steel structures. They include steel surfaces of ships and of oil and gas rigs and platforms. The Muehlhan Group is also active in the Industry Services segment, which, besides scaffolding for marine and industry customers, includes surface protection for wind turbines, chemical production plants, and fuel storage depots, steel bridges, cranes, and machinery. Muehlhan was established in Hamburg in 1881. For 2008 the company with its some 2,500 employees around the world generated sales revenue of more than EUR 206 million (IFRS). About Wadan Wadan Yards MTW GmbH is an affiliate of Wadan Yards Group AS -- http://www.wadanyards.com/-- a multinational maritime engineering and construction group comprising leading German and Ukrainian ship yards. The group specializes in advanced marine solutions for hydrocarbon exploration, production and transportation, particularly for Arctic conditions. WESTLB AG: Secures Additional EUR4 Billion State Guarantee ---------------------------------------------------------- Oliver Suess and Mike Gavin at Bloomberg News report that WestLB AG will receive an additional guarantee of up to EUR4 billion (US$5.6 billion) from the state of North Rhine-Westphalia. Bloomberg News relates the government said in an e-mail statement the guarantee will be "shouldered by all owners according to their stakes". WestLB's main investors are two regional savings bank associations, which each own just over 25 percent, and the state of North Rhine-Westphalia, Bloomberg News discloses. According to Bloomberg News, the guarantees are meant to protect the bank from potential losses until further investments can be transferred under Germany's financial markets rescue laws, the state said. About WestLB Hearquartered in Duesseldorf, Germany, WestLB AG (DAX:WESTLB) -- http://www.westlb.com/-- provides financial advisory, lending, structured finance, project finance, capital markets and private equity products, asset management, transaction services and real estate finance to institutions. In the United States, certain securities, trading, brokerage and advisory services are provided by WestLB AG's wholly owned subsidiary WestLB Securities Inc., a registered broker-dealer and member of the NASD and SIPC. WestLB's shareholders are the two savings banks associations in NRW (25.15% each), two regional associations (0.52% each), the state of NRW (17.47%) and NRW.BANK (31.18%), which is owned by NRW (64.7%) and two regional associations (35.3%). * * * West LB AG continues to carry Fitch's 'F' Individual Rating. The rating was previously at 'D/E' and was downgraded by Fitch to its current level in January 2008. =========== G R E E C E =========== DRYSHIPS INC: Signs Waiver Agreement on US$1.125 Bln Facility ------------------------------------------------------------- DryShips Inc. signed an agreement on waiver terms with the Deutsche Bank AG, led syndicate on the US$1.125 billion facility. This facility covers drillships hull numbers 1865 and 1866 currently under construction at Samsung Heavy Industries. George Economou, Chairman and Chief Executive Officer, commented: "We are pleased to have signed this agreement with the syndicate. We remain focused on the execution of our strategy to further strengthen our balance sheet and position the company for acquisitions." About DryShips Inc. DryShips Inc. (DRYS) -- http://www.dryships.com-- based in Greece, owns and operates drybulk carriers that operate worldwide. DryShips owns a fleet of 43 drybulk carriers comprising 7 Capesize, 29 Panamax, 2 Supramax and 5 newbuilding drybulk vessels with a combined deadweight tonnage of over 3.4 million tons, 2 ultra deep water semisubmersible drilling rigs and 2 ultra deep water newbuilding drillships. DryShips Inc.'s common stock is listed on the NASDAQ Global Market where trades under the symbol "DRYS." WIND HELLAS: Weak Q1 2009 Results Prompt S&P to Junk Rating ----------------------------------------------------------- Standard & Poor's Ratings Services said that it lowered its long- term corporate credit ratings on Greek mobile telecommunications operator WIND Hellas Telecommunications S.A. and related entities to 'CCC' from 'B-' on the group's weak first-quarter results. The outlook is negative. At the same time, S&P lowered its debt ratings on the senior secured notes issued by WIND Hellas' wholly owned financial subsidiary Hellas Telecommunications (Luxembourg) V to 'CCC', in line with the corporate credit rating. The recovery rating on the notes is unchanged at '3', indicating S&P's expectation of meaningful (50%-70%) recovery in the event of a payment default. S&P also lowered the ratings on Hellas Telecommunications (Luxembourg) III's subordinated notes and Hellas Telecommunications (Luxembourg) II's subordinated notes to 'CC', two notches below the corporate credit rating on the group. The recovery rating on both issues is unchanged at '6', indicating S&P's expectation of negligible (0%-10%) recovery for unsecured creditors in the event of a payment default. Furthermore, S&P lowered its rating on Hellas Telecommunications Finance SARL's payment-in-kind notes to 'CC'. S&P also assigned a recovery rating of '6' to the PIK notes. "The downgrade mainly reflects the group's weak first-quarter 2009 results, which will likely result in reduced liquidity and in a substantial increase of the group's already very high leverage," said Standard & Poor's credit analyst Melvyn Cooke. "The negative outlook reflects the group's weakening operating performance and liquidity, with an expected substantial reduction in EBITDA in 2009," said Mr. Cooke. It also reflects Standard & Poor's view that the group's very aggressive capital structure is likely to make it very difficult for the group to raise any form of new financing, as significant deleveraging is unlikely in the face of weak EBITDA growth prospects during that period. ============= I R E L A N D ============= SMURFIT KAPPA: Seeks Consent to Amend Senior Credit Facility ------------------------------------------------------------ Smurfit Kappa Group plc on Tuesday said it is seeking the consent of its lenders to amendments to its Senior Credit Facility Agreement. Overview The proposed amendments will significantly enhance SKG's financial flexibility, providing it with: * The ability to raise longer-dated capital to refinance a portion of its existing Senior Facilities. * Extended maturity of its Revolving Credit Facility. * Increased leverage and interest cover covenant headroom. A significant number of the Group's top lenders, including a number of non-bank lenders, have already confirmed their support for all of the proposed amendments. Smurfit Kappa Group's Chief Financial Officer, Mr. Ian Curley, commented "These initiatives form part of an ongoing process of effective capital management. The proposed amendments provide SKG with significantly enhanced financial flexibility, to focus on delivering industry leading operating performance and maximizing free cash flow generation for continued net debt reduction." Amendments to Senior Credit Facility Agreement Rationale Against the backdrop of a difficult operating environment, in the first quarter of 2009 SKG continued to report industry-leading EBITDA margins and strong cash flow management. The Group continues to maintain a strong liquidity position with in excess of EUR700 million of cash on its balance sheet, undrawn committed credit facilities of approximately EUR600 million and no significant debt refinancing requirement until December 2013. Moreover, although headroom has reduced, SKG is operating well within its covenants, with a Net Debt to EBITDA ratio of 3.7 times at the end of March 2009, against a covenant level of 4.7 times. The Group's financial priority continues to be to maximize free cash flow generation for further net debt reduction. Consistent with this objective, SKG previously announced a planned reduction of capital expenditure (towards 60% of depreciation in 2009), the suspension of dividend payments and increased cost take-out efforts. The Group also re-purchased EUR43 million of senior bank debt in 2009, at an average discount of 24% to par, which contributed to its net debt reduction objective. To further strengthen its capital structure in light of the ongoing uncertainty of the global economic environment, and reflecting the recent improvement in credit markets, the Group is now seeking the consent of its lenders to amend its Senior Credit Facility Agreement. The objectives of this request are to provide SKG with the ability, as and when market conditions are attractive, to raise longer dated financing in the bond markets to refinance part of its Senior Facilities, to extend the maturity of a portion of its revolving credit facility, and to increase covenant headroom for the next three years. These proposed amendments will significantly enhance the Group's financial flexibility. Amendments to Senior Credit Facility Agreement Summary Details The principal requested amendments to SKG's Senior Credit Facility Agreement are: (i) Flexibility to issue pari passu ranking senior secured bonds, as and when market conditions are attractive, to repay senior bank debt at par thereby further extending the Group's average debt maturities and diversifying its sources of funding. (ii) Extend the maturity of a portion of the Group's current EUR600 million Revolving Credit Facility ("RCF") by one year, to year, to December 2013. SKG is offering all existing RCF lenders the opportunity to convert their commitments to a RCF2, with a commitment reduction of one- sixth upon conversion. RCF2 is to be sized according to lender appetite, however, SKG is targeting a minimum size of EUR200 million for the RCF2. The eventual portion (if any) of the RCF not converted into RCF2 will be renamed RCF1, with an unchanged maturity in December 2012. (iii) Increase the existing headroom under leverage and interest cover covenants from Q3 2009 to Q2 2012, with a return to the pre-amendment covenant levels after this period. The Group, subject to the approval of 66 2/3 per cent or more of its lenders to the requested amendments, agrees to: (a) pay each consenting lender a consent fee of 75 basis points ('bps'), including an 'early bird' incentive fee of 25bps. (b) in addition to the payment under (a) above, pay each consenting lender converting its RCF1 commitments to RCF2 commitment of such lenders after conversion. (c) pay all lenders an increased margin of 125bps on existing term loans and RCF1 drawn amounts. RCF2 lenders will be paid an additional 25bps over RCF1 lenders on drawn amounts. (d) pay all relevant lenders increased commitment fees on RCF1 and RCF2 as follows: Ratio of Consolidated Current Proposed Proposed Total Net Borrowings (% p.a.) RCF1 (% p.a.) RCF1 (% p.a) to Consolidated Pro Forma EBITDA Greater than or equal to 3:50:1.00 0.625 0.900 1.300 Less than 3.50:1.00 0.500 0.750 1.000 (e) a reduced level of Net Debt to EBITDA at which dividends can be paid to shareholders: from 4.50 times to 4.25 times. (f) prepay EUR100 million of senior bank debt at par, to be applied pro rata against existing term loans. Margin increases and commitment fees would take effect immediately upon the requested amendments becoming effective. A copy of SKG's letter requesting the consent of its lenders to the proposed amendments to its Senior Credit Facility Agreement is available on the SKG website at www.smurfitkappa.com/investors. Headquartered in Dublin, Ireland, Smurfit Kappa Group Plc -- http://www.smurfitkappa.com/-- is paper-based packaging company. The Company operates in 22 countries in Europe and is in to containerboard, solidboard, corrugated and solidboard packaging and in other paper packaging market segments. The Company also operates in nine countries in Latin America. The Company's operations are divided into packaging and specialties. The packaging segment includes a system of paper mills that produce a full line of containerboard that is converted into corrugated boxes by its converting operations. The Specialties segment primarily consists of graphicboard and solidboard businesses, along with paper sack and bag-in-box operations. * * * On June 3, 2009, the Troubled Company Reporter-Europe reported that Fitch Ratings affirmed Ireland-based Smurfit Kappa Group plc's Long-term Issuer Default Rating at 'BB'. Fitch said the Outlook on the IDR is Stable. As reported in the TCR-Europe on June 3, 2009, Standard & Poor's Ratings Services said that it had lowered its long-term issuer credit ratings on Ireland-based paper and packaging company Smurfit Kappa Group PLC to 'BB-' from 'BB'. S&P said the outlook is stable. =================== K A Z A K H S T A N =================== AVTOLESPROM LLP: Creditors Must File Claims by June 26 ------------------------------------------------------ Creditors of LLP Avtolesprom have until June 26, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Baizakov Str. 273b Almaty Kazakhstan The Specialized Inter-Regional Economic Court of Almaty commenced bankruptcy proceedings against the company on April 17, 2009. INTER FOOD: Creditors Must File Claims by June 26 ------------------------------------------------- Creditors of LLP Inter Food Almaty have until June 26, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Baizakov Str. 273b Almaty Kazakhstan The Specialized Inter-Regional Economic Court of Almaty commenced bankruptcy proceedings against the company on April 17, 2009. MEGA CONSULT: Creditors Must File Claims by June 26 --------------------------------------------------- Creditors of LLP Mega Consult LLC have until June 26, 2009, to submit proofs of claim to: Kassin Str. 2/2-21 Mamyr Almaty Kazakhstan Tel: 8 777 559 68-31 The Specialized Inter-Regional Economic Court of Almaty commenced bankruptcy proceedings against the company on Oct. 28, 2008, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of Almaty Tauelsyzdyk Str. 53 Taldykorgan Almaty Kazakhstan RAMEX LLP: Creditors Must File Claims by June 26 ------------------------------------------------ Creditors of LLP Ramex have until June 26, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of South Kazakhstan Tynybaev Str. 42 Shymkent South Kazakhstan Kazakhstan The Specialized Inter-Regional Economic Court of South Kazakhstan commenced bankruptcy proceedings against the company on March 20, 2009. STROY SERVICE & K: Creditors Must File Claims by June 26 -------------------------------------------------------- Creditors of LLP Stroy Service & K have until June 26, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Mangistau Building of Former Kindergarten 51 Micro District 27 Aktau Mangistau Kazakhstan The Specialized Inter-Regional Economic Court of Mangistau commenced bankruptcy proceedings against the company on April 10, 2009. =================== K Y R G Y Z S T A N =================== BEREKE EMTI: Court Names M. Osmonaliyev as Insolvency Manager ------------------------------------------------------------- The Inter-District Court of Bishkek for Economic Issues commenced bankruptcy proceedings against LLC Bereke Emti after finding the company insolvent. The case is docketed under Case No. ED-952/08 M??4. The court appointed M. Osmonaliyev as insolvency manager for the company on April 27, 2009. He can be reached at: M. Osmonaliyev Akiev Str. 49-30 Bishkek Kyrgyzstan Tel: (+996 312) 61-15-76 =========== L A T V I A =========== ASK RIGA: Declared Insolvent by Riga Court ------------------------------------------ Nina Kolyako at The Baltic Course reports that the Riga Central District Court in Latvia declared basketball club "ASK Riga" insolvent on Tuesday. Creditors' claims will be accepted for three months from the day the club is registered insolvent in the insolvency register, the report says. The report recalls the court launched insolvency proceedings against "ASK Riga" on April 28 following petitions from former player Gatis Jahovics and the travel agency "Airtour.lv". According to the report, the club's debts stood at LVL1,400,902. ============== R O M A N I A ============== * ROMANIA: Fitch Assigns 'B+' Rating on Oradea Metropolitan Area ---------------------------------------------------------------- Fitch Ratings has assigned the Romanian Metropolitan Area of Oradea Long-term foreign and local currency ratings of 'B+', respectively, and a Short-term foreign currency rating of 'B'. The Outlooks on the Long-term ratings are Stable. OMA's ratings reflect its main objective of providing economic and infrastructure development to the metropolitan area which is of high importance to its 11 local authority members. The ratings also factor in the importance of the City of Oradea (rated 'BB+'/'B'/Negative) to the metropolitan area, because it is the main sponsor and contributor. OMA's ratings also take into account the association's limited revenue flexibility and small budget. A clear commitment from the county council to the obligations of OMA's members in the form of a guarantee, and/or an improvement of the Romanian economy -- which could positively affect the creditworthiness of Romanian local authorities and Oradea in particular -- would be positive for OMA's rating. A deterioration of OMA's budgetary performance, which could stem from delays in members' contributions, and/or a deterioration of Oradea's ratings would be negative for OMA's rating. Furthermore, a decline in interest on the further development of the metropolitan area could be negative for the ratings. OMA has a short track record although its performance to date has been good with reported overall surpluses and operating margins, as per Fitch's calculation, well over 25% on an annual basis respectively. OMA has no debt outstanding and has indicated it has no immediate plans to contract debt. However, its ability to acquire debt funding would be limited by its low revenue flexibility, as 84% of its operating revenue derives from member contributions. OMA's revenue is also concentrated as over 87% derives solely from Oradea. Therefore, OMA's credit profile is somewhat linked to that of Oradea. The limited budget, with total revenues amounting to just RON1.95 million in 2008, is also a constraining factor for its rating. Romania's highly centralized budgetary system ensures adequate support and control from the central government, as the state supervises local authorities' accounts and financial positions including debt approval, but it also limits their budgetary flexibility. In addition, the current mayor of Oradea has clearly stated the importance of OMA with respect to economic and infrastructure development and the improvement of Oradea and its associated communes, ensuring the necessary support for the annual contributions for the association's operating and business activities. OMA was founded in 2005 as an association of nine, since increased to 11, local authorities for the purpose of implementing common projects to benefit the economic development of the metropolitan area. OMA's total population consists of about 246,000 inhabitants, most of which (207,000) are located in Oradea. =========== R U S S I A =========== AMTEL-VREDESTEIN OJSC: Files for Insolvency in Moscow Court ----------------------------------------------------------- Tire Review reports that Russian tire manufacturer OJSC Amtel- Vredestein on June 3 filed for insolvency with the Moscow Arbitration Court. Tire Review relates the tire manufacturer said "given the deteriorating position of the company and increasing number of creditors' claims to repay debt or foreclose on the company's mortgaged assets, this action is necessary and unavoidable." Amtel-Vredestein, Tire Review discloses, has requested the granting of a monitoring period in line with insolvency laws. According to Tire Review, an administrator will be appointed to run the monitoring procedure for the company. EVRAZ GROUP: Moody's Corrects Press Release; Reviews 'Ba3' Rating ----------------------------------------------------------------- Moody's Investors Service has revised its press release and said that it placed the Ba3 CFR of Evraz Group under review for possible downgrade. At the same time the ratings for Senior Unsecured Notes totaling US$300 million due in 2009 rated Ba2, Senior Unsecured Notes totaling US$2750 million due in 2013, 2015, and 2018 rated B1 were also placed under review for possible downgrade. The rating action was prompted by the severity of the downturn in the steel industry which is likely to lead to significantly lower cash flows generated by Evraz than has been previously anticipated, and hence potentially impact its financial strength going forward more than had been expected and built into the current rating. Though Moody's recognizes that Evraz has benefited from a competitive cost position further favored by the depreciation of the ruble, the metrics could deteriorate in 2009 to levels no longer in line with a Ba3. The review also reflects that despite notable progress in extending its short term refinancing, the short maturity profile of its debt continues to make the company dependent on its ability to extend facilities and the uncertainty associated with this process. Moody's also expect to see headroom under the covenants of some debt instruments to tighten significantly with a possible breach under certain economic scenarios, including on certain of its public debt issue which could be more difficult to manage smoothly. The review will therefore be focused on: 1) the 2009 operating performance as well as the capacity utilization based on possible volume and price evolution in the steel markets 2) the pace of progress achieved in negotiation with the banks (notably Russian State ones) regarding the extension of up- coming maturities for the next 12 months; 3) the level of operating efficiency of Evraz's US assets and their expected profit and cash-flow contribution in 2009 and 2010; 4) the ability of the company to generate positive free cash flow; 5) the headroom under the company's covenants and likelihood of breach as well a review of the company's options and possible initiatives to manage such an occurrence and strengthen the capital structure The last rating action was on December 1, 2008, when Moody's downgraded CFR of Evraz from Ba2 to Ba3. Evraz Group is one of the largest vertically integrated steel companies in Russia (by volume and assets) with assets also in Europe, North America and South Africa that produced 17.6 million tones of steel products, reported revenue of US$20.39 billion (58.6% increase Y-o-Y) and EBITDA of US$6.35 billion (45.9% increase Y-o-Y) in 2008. Evraz's principal assets are steel plants in Russia, Europe, North America, South Africa and Ukraine, iron ore and processing facilities, as well as coal mines, logistics and trading assets. NAVTEKS LLC: Creditors Must File Claims by June 22 -------------------------------------------------- The Arbitration Court of Ivanovskaya commenced bankruptcy proceedings against LLC Navteks (TIN 3713007149, PSRN 1043700452971) (Cotton Plant) after finding the company insolvent. The case is docketed under Case No. ?17-1401/2009 10B. Creditors have until June 22, 2009, to submit proofs of claims to: T. Shukhtina Insolvency Manager Promyshlennaya Str. 1 Navoloki Kineshemskiy 155830 Ivanovskaya Russia The Debtor can be reached at: LLC Navteks Promyshlennaya Str. 1 Navoloki Kineshemskiy 155830 Ivanovskaya Russia PRESTIZH-STROY LLC: Arkhangelskaya Bankruptcy Hearing Set June 19 ----------------------------------------------------------------- The Arbitration Court of Arkhangelskaya will convene at 2:00 p.m. on June 19, 2009, to hear bankruptcy supervision procedure on LLC Prestizh-Stroy (TIN 901088413, PSRN 1022900550287) (Construction). The case is docketed under Case No. ?05�13444/2008. The Temporary Insolvency Manager is: S. Malanin Vidanskaya Str. 15V Petrozavodsk Russia The Debtor can be reached at: LLC Prestizh-Stroy Severnaya Dvina Embankment 112/1 163000 Arlkhangelsk Russia PROKHORO-BALANDINSKIY MARBLE: Claims Filing Period Ends June 22 --------------------------------------------------------------- The Arbitration Court of Chelyabinskaya commenced bankruptcy proceedings against LLC Prokhoro-Balandinskiy Marble Quarry (TIN 7438008278) after finding the company insolvent. The case is docketed under Case No. ?76�4956/2009�55-22. Creditors have until June 22, 2009, to submit proofs of claims to: Ye.Bodanov Insolvency Manager Chkalova Str. 21 390029 Ryazan Russia The Debtor can be reached at: LLC Prokhoro-Balandinskiy Marble Quarry Prokhoro-Baladino Sosnovskiy Chelyabinskaya Russia ROSSICH LLC: Creditors Must File Claims by June 22 -------------------------------------------------- Creditors of LLC Rossich (Forestry) have until June 22, 2009, to submit proofs of claims to: Ye.Osaulenko Temporary Insolvency Manager Post User Box782 167000 Syktyvkar Komi Russia The Arbitration Court of Kostromskaya will convene on Sept. 3, 2009, to hear bankruptcy supervision procedure on the company. The case is docketed under Case No. ?31�8/2009. The Debtor can be reached at: LLC Rossich RaduzhnayaStr. 21 157610 Sharya Russia ========= S P A I N ========= REALIA: Nears EUR871 Million Debt Refinancing Deal With Banks ------------------------------------------------------------- Realia is close to refinancing EUR871 million (US$1.21 billion) of debt maturing this year, Andres Gonzalez at Reuters reports citing chairman Ignacio Bayon. "We are now closing the deal with the banks and are hoping to close it in the shortest period possible," Reuters quoted Mr. Bayon as saying. "We already have a deal on the negotiating table." Reuters discloses according to Mr. Bayon, Realia is also in very advanced talks with a group over them taking a stake in its French division, SIIC de Paris. The company holds an 82 percent stake in SIIC de Paris, Reuters notes. On June 9, 2009, the Troubled Company Reporter-Europe, citing Reuters, reported that Spanish builder FCC and savings bank Caja Madrid will lend their property unit Realia EUR100 million (US$141.7 million) as part of its debt refinancing plan. Headquartered in Madrid, Spain, Realia Business SA -- http://www.realia.es-- is a company active in the real estate sector. The Company specializes in the development of residential properties as well as the purchase, sale and lease of commercial buildings. Its asset portfolio includes 73 office blocks under lease and another three properties under development with approximately 400,000 square meters of lettable property area in use and a further 55,000 square meters under development. Realia Business SA operates on both national and international markets. It is active in such countries as Portugal, Poland, Romania and France. In Spain, it has offices in the autonomous communities of Andalusia, Catalonia, Madrid, Asturias, Valencia and the Canary Islands. ===================== S W I T Z E R L A N D ===================== A. + M. ISLAMI: Claims Filing Deadline is June 18 ------------------------------------------------- Creditors of A. + M. Islami GmbH are requested to file their proofs of claim by June 18, 2009, to: Haldemann + Joerg Daniel Haldemann Bahnhofstrasse 15 3076 Worb Switzerland The company is currently undergoing liquidation in Worb. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Feb. 26, 2009. ABAVUS AG: Creditors' Proofs of Claim Due on June 18 ---------------------------------------------------- Creditors of Abavus AG are requested to file their proofs of claim by June 18, 2009, to: Barbara Eggenberger BDO Visura Fabrikstrasse 50 8031 Zurich Switzerland The company is currently undergoing liquidation in Zurich. The decision about liquidation was accepted at an extraordinary general meeting on April 21, 2009. AKIDOR AG: Creditors Have Until June 18 to File Claims ------------------------------------------------------ Creditors of Akidor AG are requested to file their proofs of claim by June 18, 2009, to: Urs Weber Liquidator Goethestrasse 61 9008 St. Gallen Switzerland The company is currently undergoing liquidation in St. Gallen. The decision about liquidation was accepted at an extraordinary general meeting held on April 2, 2009. GERBER AG: Claims Filing Deadline is June 18 --------------------------------------------- Creditors of Gerber AG are requested to file their proofs of claim by June 18, 2009, to: Hans Peter Gerber Liquidator Seestrasse 35 3654 Gunten Switzerland The company is currently undergoing liquidation in Aesch BL. The decision about liquidation was accepted at a general meeting held on March 17, 2009. GYMAR GMBH: Creditors Must File Claims by June 18 ------------------------------------------------- Creditors of Gymar GmbH are requested to file their proofs of claim by June 18, 2009, to: Emil Hofer Brunnackerstrasse 14 8309 Birchwil Switzerland The company is currently undergoing liquidation in Kloten. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on March 10, 2009. MAX STUESSI: Claims Filing Deadline is June 17 ---------------------------------------------- Creditors of Max Stuessi/Rita Traxel, Restaurant Schluessel GmbH are requested to file their proofs of claim by June 17, 2009, to: Rita Stuessi-Traxel Liquidator Stadtlistrasse 11 6383 Dallenwil Switzerland The company is currently undergoing liquidation in Dallenwil. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on April 24, 2009. ============= U K R A I N E ============= BUDROOST LLC: Creditors Must File Claims by June 18 --------------------------------------------------- Creditors of LLC Budroost (code EDRPOU 35571303) have until June 18, 2009, to submit proofs of claim to: I. Kapeliushny Insolvency Manager Post Office Box 53 03037 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company on May 8, 2009. The case is docketed under Case No. 43/143. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy Str. 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Budroost Zabolotny Str. 15 03143 Kiev Ukraine CASCADE OJSC: Creditors Must File Claims by June 18 ---------------------------------------------------- Creditors of OJSC Cascade have until June 18, 2009, to submit proofs of claim to the company's insolvency manager, A. Matlayev. The Economic Court of Donetsk commenced bankruptcy proceedings against the company on April 8, 2009. The case is docketed under Case No. 45/166B. The Court is located at: The Economic Court of Donetsk Artem Str. 157 Donetsk Ukraine CITEL LLC: Creditors Must File Claims by June 18 ------------------------------------------------ Creditors of LLC Ukrainian Group Citel (code EDRPOU 31113746) have until June 18, 2009, to submit proofs of claim to: N. Kovalchuk Insolvency Manager Office 2 Bekhterovsky Lane 4-A Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company on May 12, 2009. The case is docketed under Case No. 44/248-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy Str. 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Ukrainian Group Citel Artem Str. 21 Kiev Ukraine GOLDFIN COMPANY: Creditors Must File Claims by June 18 ------------------------------------------------------ Creditors of LLC Goldfin Company (code EDRPOU 35760250) have until June 18, 2009, to submit proofs of claim to: LLC Lita Insolvency Manager Alekseyevskaya Str. 3 03110 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company on May 12, 2009. The case is docketed under Case No. 15/269-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy Str. 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Goldfin Company Ac. Bogomolets Str. 6 01024 Kiev Ukraine IMEXBANK: Moody's Withdraws 'E' Bank Financial Strength Rating -------------------------------------------------------------- Moody's Investors Service has withdrawn these ratings of Imexbank: -- Bank's Financial Strength Rating of E (Stable outlook); -- Long-term and short-term local and foreign currency deposit ratings of Caa2/Not Prime (Stable outlook); -- Long-term National Scale deposit ratings of B3.ua. Moody's has withdrawn these ratings for business reasons following the official request from Imexbank. Moody's notes that, as of the date of the ratings withdrawal, Imexbank had no outstanding debts rated by Moody's. Moody's previous rating action on Imexbank was implemented on June 2, 2009, when Moody's downgraded the bank's long-term local and foreign currency deposit ratings to Caa2 from B3. In addition, Imexbank's bank financial strength rating was downgraded to E from E+ and its National Scale Rating to B3.ua from Baa3.ua. As of the date of the ratings withdrawal, all ratings carried a stable outlook. Headquartered in Odessa, Ukraine, Imexbank reported unaudited total assets of UAH6.2 billion (US$805 billion) and net profit of UAH62 million (US$8 million) as at December 31, 2008 in accordance with Ukrainian Accounting Standards. LVOV SCIENCE: Court Starts Bankruptcy Supervision Procedure ----------------------------------------------------------- The Economic Court of Lvov commenced bankruptcy supervision procedure on OJSC Lvov Science and Research Institute of Facsimile-Phone Technics (code EDRPOU 14308061). The Insolvency Manager is: A. Nadlonok Office 33 Zubrovskaya Str. 25-A 79066 Lvov Ukraine The Court is located at: The Economic Court of Lvov Lichakovskaya Str. 128 79010 Lvov Ukraine The Debtor can be reached at: OJSC Lvov Science and Research Institute of Facsimile-Phone Technics Smal-Stotsky str. 1 79015 Lvov Ukraine OZBUD TRADE: Creditors Must File Claims by June 18 -------------------------------------------------- Creditors of LLC Ozbud Trade (code EDRPOU 35161760) have until June 18, 2009, to submit proofs of claim to: I. Kapeliushny Insolvency Manager Post Office Box 53 03037 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company on April 29, 2009. The case is docketed under Case No. B11/063-09. The Court is located at: The Economic Court of Kiev Komintern Str. 16 01032 Kiev Ukraine The Debtor can be reached at: LLC Ozbud Trade Promyshlennaya Str. 9 Obukhov 08700 Kiev Ukraine PANTRANS SUBSIDIARY: Creditors Must File Claims by June 18 ---------------------------------------------------------- Creditors of Subsidiary Company Pantrans (code EDRPOU 32678409) have until June 18, 2009, to submit proofs of claim to: LLC Trading House Sort Seed Vegetable Insolvency Manager Zavokzalnaya str. 5 Borispol 08300 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company on April 29, 2009. The case is docketed under Case No. B11/061-09. The Court is located at: The Economic Court of Kiev Komintern Str. 16 01032 Kiev Ukraine The Debtor can be reached at: Subsidiary Company Pantrans Khomenko Str. 15 Ivankov Kiev Ukraine UKRAINIAN THERMAL: Court Starts Bankruptcy Supervision Procedure ---------------------------------------------------------------- The Economic Court of Nikolayev commenced bankruptcy supervision procedure on OJSC Transport Building Odessa Transport LLC Ukrainian and German Company Ukrainian Thermal Building (code EDRPOU 23399424). The Insolvency Manager is: A. Spiridonov Office 56 8th of March Str. 14 Nikolayev Ukraine The Court is located at: The Economic Court of Nikolayev Admiralskaya Str. 22-a 54009 Nikolayev Ukraine The Debtor can be reached at: LLC Ukrainian and German Company Ukrainian Thermal Building General Sviridov Str. 40 54034 Nikolayev Ukraine =========================== U N I T E D K I N G D O M =========================== ATRIUM EUROPEAN: S&P Cuts Long-Term Corp. Credit Rating to 'BB-' ---------------------------------------------------------------- Standard & Poor's Ratings Services said that it has lowered its long-term corporate credit ratings on Jersey-based real estate group Atrium European Real Estate Ltd. to 'BB-' from 'BB' and placed the rating on CreditWatch with negative implications. The 'B' short-term rating has been affirmed. "The rating actions reflect our perception that bondholders may be willing to seek redemption from Atrium, which S&P analyzes as evidence of reduced access to liquidity," said Standard & Poor's credit analyst Pierre Georges. It also reflects the potential negative impact on the group's hitherto solid liquidity position in case of an acceleration of its bond due in 2016. S&P understands EUR365 million of the bond is still outstanding. This follows the company's announcement that Citibank, the trustee of the bond, determined that the buyback of certificates completed in early 2007 was in breach of Jersey legislation and constituted an event of default, which could trigger an acceleration of the bond. "Although S&P would not view this acceleration of the bond as a default under S&P's criteria, S&P believes that it could significantly hamper the company's financial flexibility, given the implied shortening of the bond maturity and the reduction of Atrium's cash position, which are currently key supports for the ratings," said Mr. Georges. S&P also currently lacks information with regards to the likelihood of an acceleration of the bond, the company's position with regards to such an event, and the potential contagion to other debt, notably with regards to any cross-default clauses. At this stage, S&P could react in the near term to forthcoming developments and S&P plans to resolve the CreditWatch once S&P has more clarity on the background of the allegations, the likelihood of acceleration, and the company's position toward such an event. S&P believes that a multiple notch downgrade could be possible, depending on the extent of the consequences of a potential acceleration of the bond. S&P is concerned about the potential risks linked to cross-default clauses, as well as CPI/Gazit intentions regarding an acceleration of the EUR427 million convertible bond issued by Atrium in case such a clause was triggered. Alternatively, S&P could affirm the ratings if S&P has evidence that the bond acceleration risk is remote and S&P has comfort that the liquidity position will remain adequate. BROADGATE FINANCING: Fitch Cuts Rating on Class D Notes to 'BB' --------------------------------------------------------------- Fitch Ratings has downgraded three tranches of Broadgate Financing PLC's notes and affirmed the transaction's five remaining tranches. Fitch has simultaneously revised the Outlooks of the three downgraded tranches to Negative from Stable. The rating actions are: -- GBP225.0 million class A1 due January 2032 (XS0213092066) affirmed at 'AAA'; Outlook Stable -- GBP286.7 million class A2 due April 2031 (XS0211897664) affirmed at 'AAA'; Outlook Stable -- GBP175.0 million class A3 due April 2033 (XS0211897821) affirmed at 'AAA'; Outlook Stable -- GBP400.0 million class A4 due July 2036 (XS0213092652) affirmed at 'AAA'; Outlook Stable -- GBP365.0 million class B due October 2033 (XS0211898043) affirmed at 'AA'; Outlook Stable -- GBP210.5 million class C1 due January 2022 (XS0213093031) downgraded to 'BBB-' from 'A'; Outlook revised to Negative from Stable -- GBP215.0 million class C2 due April 2035 (XS0211898126) downgraded to 'BBB-' from 'A'; Outlook revised to Negative from Stable -- GBP107.3 million class D due October 2025 (XS0213093627) downgraded to 'BB' from 'BBB'; Outlook revised to Negative from Stable The affirmations of the senior note classes reflect the continued good performance of the transaction. The downgrades of the lower- ranked note classes have primarily been driven by their rising leverage and the increased likelihood that they will be affected by occupational market declines, especially given large lease break and expiry exposures. The market value of the portfolio currently stands at GBP1,880 million, based on a March 2009 valuation, representing a market value decline of 25% since closing and 41% since the peak valuation of GBP3,184 million in July 2007. However, GBP238.1 million of cash collateral remains on deposit following the disposal of 51 Lime Street, a London office property, in May 2008. Considering this amount and an additional GBP20.9 million linked to the Henderson lease surrender, the reported loan-to-value ratio stands at 91.8%. Assuming that all scheduled amortization is received, the deal has an exit LTV of 21.3%. Although the relatively long term of the leases has partly insulated the transaction from the deterioration in rents affecting the London office market, the increased risk of tenant defaults in the current economic environment, and the fact that 40% of leases are scheduled to break or expire in or before September 2014, is likely to result in the Broadgate estate finding itself increasingly exposed to difficult re-letting conditions. More specifically, UBS has the ability to exercise break options on five of its leases, accounting for GBP38.6 million of rental income, in June and September 2014. Should UBS exercise all of these break options, the DSCR is likely to fall below 1.0x, unless significant rental uplifts are achieved on the remainder of the leases. The majority of the rental income is derived from tenants either in, or related to, the financial services industry, that contribute to a WA tenant rating of 'BB'(calculated using public ratings only) on the transaction as a whole. The WA terms to lease break and expiry are 7.9 and 10.1 years, respectively, and the vacancy rate stands at 5.4%. Fitch will continue to monitor the performance of the transaction. EUROSAIL 2006-2BL: S&P Cuts Rating on Class F1c Notes to 'CCC-' --------------------------------------------------------------- Standard & Poor's Ratings Services has taken various rating actions on several subordinate classes of notes issued by Eurosail 2006-2BL PLC. Specifically, S&P has: -- Lowered its rating on the class F1c notes; -- Placed on CreditWatch negative its ratings on the class B1a, B1b, C1a, C1c, D1a, D1c, and E1c notes; and -- Affirmed the class A2c notes. These rating actions are due to deteriorating collateral performance and S&P's expectation of increasing losses and loss severities. In S&P's opinion, the class F1c notes may miss timely interest payments in the very near term, if realized losses continue at their current rate. According to the March 2009 investor report, total delinquencies (including repossessions) were 41.46%. Unsold repossessions decreased in Q1, but are still 6.79% of the outstanding principal balance; losses for Q1 were GBP3,306,934 (an increase in cumulative losses to 1.31% from 0.78% of the original collateral- backed note balance). The weighted-average loss severity in Q1 was 28.31%. With the recent declines in U.K. house prices, S&P expects to see further losses in coming quarters. In addition, the liquidity facility is currently unavailable to pay interest for all notes subordinate to the A2c notes as the default rate trigger has been breached. The default rate is exceeded if 90+ days arrears as a percentage of the initial note balance is greater than 15%, and as of March 2009, these arrears were at 15.76%. If the F1c notes defer interest, S&P will lower the rating to 'D'. S&P will resolve the CreditWatch placements when S&P has received new loan-level information after the June 2009 investor report. Ratings List Eurosail 2006-2BL PLC EUR60.8 Million, GBP406.28 Million, and US$318 Million Mortgage-Backed Floating-Rate Notes Rating Lowered Rating ------ Class To From ----- -- ---- F1c CCC- CCC Ratings Placed on CreditWatch Negative Rating ------ Class To From ----- -- ---- B1a AA+/Watch Neg AA+ B1b AA+/Watch Neg AA+ C1a A+/Watch Neg A+ C1c A+/Watch Neg A+ D1a BB/Watch Neg BB D1c BB/Watch Neg BB E1c B/Watch Neg B Rating Affirmed Class Rating ----- ------ A2c AAA FAYCROSS LTD: In Administration; Begbies Traynor Appointed ---------------------------------------------------------- Burton Mail reports that Faycross Ltd has gone into administration. The report relates joint administrators John Kelly and James Martin, from Birmingham-based business rescue, recovery and restructuring specialist Begbies Traynor, were appointed to step in at the company last month. According to the report, the experts were called in after the firm's application to suspend the requirement to pay creditors for a 'period of time' was accepted at Burton County Court. The report says administrator tasks could include either finding a new buyer for the business or parts of the company, negotiating with creditors to restructure debts or overseeing the liquidation of assets to pay off creditors. Faycross Ltd -- http://www.faycross.co.uk/-- is a property firm based in Stretton. FIRST QUENCH: Issues Going Concern Warning ------------------------------------------ Edinburgh Evening News reports that First Quench Group, the group behind the off-licence chain Threshers, has warned there was a material uncertainty around its ability to continue as a going concern. According to the report, First Quench has been hit by tough trading and the withdrawal of cover for some of its suppliers by credit insurers. First Quench, as cited in the report, said: "The combination of these circumstances represent a material uncertainty that casts significant doubt upon the group's ability to continue as a going concern." The group, the report discloses, has posted a pre-tax loss of GBP30 million in the last year. It has already closed 162 loss making stores, the report notes. First Quench Group -- http://www.threshergroup.com/-- is a specialist drinks retailer. It operates Threshers, The Local, Wine Rack and Haddows shops in England, Scotland and Wales. HARVEY WORLD: In Administration; 25 Shops Sold to Vacation World ---------------------------------------------------------------- TravelWeekly.co.uk reports that Harvey World Travel has gone into administration, putting jobs at the group's 57 high-street shops at risk. The report relates the company said the termination of the group's ABTA membership and problems with loss-making leases had left it with no option but to cut short its turnaround plan and put the company into administration. The 57 travel agencies -- bought from Stella Travel Services UK by Vacation Travel owner Stuart Arnott in April -- went into administration on Friday, June 5, the report discloses. According to the report, the group sold 25 of the shops to newly-created company Vacation World later the same day. The report says the remaining 32 HWT branches -- many of which are former Galaxy Travel shops -- are now being operated by the administrators Tenon Recovery. Tenon, the report states, is assessing the viability of these branches and is in discussion with a number of interested parties about buying some of the shops. The shops are based in East Anglia, the Midlands, and the south-west, the report notes. HYPO REAL: Moody's Junks Rating on GBP14.9 Mln Class E Notes ------------------------------------------------------------ Moody's Investors Service has downgraded the Senior CDS and all classes of Notes issued by Hypo Real Estate Bank AG (Estate UK-3) (amounts reflect initial outstandings): -- GBP482,447,557 Class A1+ Senior Credit Default Swap due 2022 ("Senior CDS"), downgraded to Aa2, previously on 28 February 2007 assigned Aaa -- GBP400,000 Class A1+ Floating Rate Amortising Credit-Linked Notes due 2022, downgraded to Aa2, previously on 28 February 2007 assigned Aaa -- GBP29,800,000 Class A2 Floating Rate Amortising Credit- Linked Notes due 2022, downgraded to Baa1, previously on 28 February 2007 assigned Aa1 -- GBP35,760,000 Class B Floating Rate Amortising Credit-Linked Notes due 2022, downgraded to Ba2, previously on 28 February 2007 assigned Aa2 -- GBP24,560,000 Class C Floating Rate Amortising Credit-Linked Notes due 2022, downgraded to B2, previously on 28 February 2007 assigned A1 -- GBP8,240,000 Class D Floating Rate Amortising Credit-Linked Notes due 2022, downgraded to B3, previously on 28 February 2007 assigned A3 and -- GBP14,920,000 Class E Floating Rate Amortising Credit-Linked Notes due 2022, downgraded to Caa2, previously on 28 February 2007 assigned Baa3. The rating action concludes the review for possible downgrade that was initiated for the Senior CDS and all classes of Notes on April 8, 2009. The rating action takes into account Moody's updated central scenarios, as described in Moody's Special Report "Moody's Updates on Its Surveillance Approach for EMEA CMBS". 1) Transaction and Portfolio Overview This synthetic transaction closed in February 2007 and represents the securitization of initially 13 commercial mortgage loans ("reference claims") originated by Hypo Real Estate Bank AG (A3, P-1). The loans were secured by first ranking legal mortgages on 110 commercial properties located in the United Kingdom. The portfolio comprised 36.1% retail, 31.7% office, 11.3% mixed-use and 20.9% other properties in terms of UW market value. Since closing of the transaction, four loans (19% of the initial portfolio balance) have prepaid in full, which were all above average in terms of quality. The prepayment proceeds were allocated fully sequentially to the Senior CDS. The remaining loans are not equally contributing to the portfolio: the largest loan (Loan No 3) represents 37.5% of the current portfolio balance, while the smallest loan (Loan No 11) represents 2.2%. The current loan Herfindahl index is 4.9 compared to 7.0 at closing, indicating a higher loan concentration after prepayments. The remaining nine loans are secured by 108 commercial properties, of which 49.4% are retail, 20.3% mixed-use, 16.8% office, and 13.6% other properties in terms of UW market value. They are located throughout the United Kingdom, mainly in Yorkshire & Humberland (21.5%), London (17.1%), South East England (16.7%), Wales (14.4%), West Midlands (6.5%) and UK Other (23.8%). As of the last interest payment date, all of the remaining loans in the portfolio were current. 2) Rating Rationale The downgrades of the Senior CDS and the Notes follow a detailed re-assessment of the loan and property portfolio's credit risk. Hereby, Moody's main focus was on property value declines since closing, term default risk, refinancing risk and the anticipated work-out timing for potentially defaulting loans. In its review, Moody's especially concentrated on the loans in the portfolio with a maturity before 2014 (Loan No 1, 3, 7, 10, 11 and 12). Moody's notes that the depth of information at property and tenant level and on sponsors of the loans provided in the investor reports is due to confidentiality reasons below average compared to other EMEA CMBS transactions. Accordingly, there is additional uncertainty regarding the underlying assumptions used in the rating process. As outlined in more detail below, the rating action is mainly driven by the most recent performance of the UK commercial property markets, Moody's opinion about future property value performance and increased portfolio concentration following prepayments. Driven by, in most cases, a higher default risk assessment at the loan maturity dates, Moody's now anticipates that a large portion of the portfolio will default over the course of the transaction term. Coupled with the negative impact of significantly reduced property values, Moody's expects a substantial amount of losses on the securitized portfolio. Current subordination levels are 24% for the Senior CDS and Class A1+ Notes, 18% for Class A2, 10% for Class B Notes, 5% for Class C and 3% for Class D provide protection against those losses on the underlying reference claims. The likelihood of higher than expected losses on the portfolio has increased substantially, which results in the rating action. The Senior CDS and all but the most junior class of Notes have benefited from the sequentially allocated loan prepayments, which have increased the subordination that is available to them. The Class A2, Class B, Class C, Class D and Class E are subordinated classes in the transaction's capital structure. Due to this additional leverage, the higher portfolio risk assessment has a relatively bigger impact on the expected loss of those Notes than on the expected loss of the senior Notes. 3) Moody's Portfolio Analysis Property Values. Property values across the UK have declined significantly until Q1 2009 and are expected to continue to decline at least until 2010. Moody's estimates that compared to the underwriter's values at closing in 2007, the values of the properties securing this transaction have declined by on aggregate 18% until the beginning of 2009 (ranging from no value decline for the Loan No 13 to a 38% value decline for the Loans No 3 and 12). Looking ahead, Moody's anticipates further declines until 2010, resulting in a 27% value decline compared to the U/W value at closing (ranging from a 7% decline for the Loan No 13 to a 47% value decline for the Loan No 12). Based on this property value assessment, Moody's estimates that the transaction's early-2009 weighted average securitized loan-to- value ratio was 81% compared to the reported U/W LTV of 59%. Due to the further envisaged declines, the WA LTV will increase in Moody's opinion to 91% in 2010 and will only gradually recover thereafter. Based on Moody's anticipated trough values, the LTVs for the securitized loans range between 129% for the Loan No 3 to 54% for the Loan No 5. Loan No 1 and 9 have debt outside the securitization in the form of B-loans (amounting in total to GBP59.8 million). Based on estimated trough values, the portfolio's weighted average whole loan LTV is 98%. In addition, the borrowers of Loan No 1 and 13 entered into inflation swaps, i.e. they swap inflation uplifts agreed in the lease agreements with the respective tenants into fixed payments. According to the loan agreements, potential breakage costs regarding these swaps rank pari passu to loan principal payments in case of a default and might decrease principal recoveries and thus increase potential losses allocated to the Senior CDS and the Notes. Moody's has taken the anticipated property value development, including a gradual recovery from 2011 onwards, into account when analyzing the default risk at loan maturity and the loss given default for each securitized loan. Refinancing Risk The transaction's exposure to loans maturing in the short-term (2009 and 2010) is considerable. 12.1% of the current portfolio matures in 2009 and 2010, 2.4% in 2011, 46.6% in 2013, 12% in 2015 and 26.9% in 2019. As Moody's expects property values in the UK to only slowly recover from 2011 onwards, most of the loans (except for Loan No 5, 9 and 13, which only mature in 2015 and beyond) will be still highly leveraged at their respective maturity dates, especially when taking into account the B-loan for Loan No 1. Consequently, in Moody's view, for almost all of the loans, the default risk at maturity has increased substantially compared to the closing analysis. Term Default Risk The occupational markets in the UK are currently characterized by falling rents, increasing vacancy rates and higher than average tenant default rates. Taking into account the lease profile of the respective loans, in particular Loan No 3 and 7 could be in Moody's view exposed to weakening occupational markets. Based on the current lease profile, Moody's has incorporated into its analysis an allowance for deterioration in coverage ratios on most of the loans, in turn increasing the term default risk assumption for the respective loans. Overall Default Risk Based on its revised term and maturity default risk assessment for the securitized loans, Moody's anticipates that a large portion of the portfolio will default over the course of the transaction term. The default risk of all loans (except for Loans No 9 and 13) is predominantly driven by refinancing risk. Of those loans, Loan No 7 has in Moody's view the highest default risk, Loan No 5 has the lowest risk of defaulting. Concentration Risk The portfolio securitized in Estate UK-3 exhibits an average concentration in terms of property types (49% retail) and property location (100% UK and 21% Yorks and Humber). In Moody's view, this limits the potential benefits from different markets performing differently over time. Work-Out Strategy In scenarios where a loan defaults, Moody's current expectation is that the servicer will most likely not pursue an immediate sale of the property in the depressed market conditions. Therefore, Moody's has assumed that in most cases, upon default, a sale of the mortgaged properties and ultimate work-out of the loan will occur at a later point in time. Increased Portfolio Loss Exposure Taking into account the increased default risk of the loans, the most recent performance of the UK commercial property markets, Moody's opinion about future property value performance and the most likely work-out strategies for defaulted loans, Moody's anticipates a substantial amount of losses on the securitized portfolio. INSIGHT EVENTS: Losses Prompt Liquidation ----------------------------------------- David Quainton at Event Magazine reports that Wilsthire-based Insight Events Ltd has gone into liquidation after suffering losses over the last year. The company's assets are being put up for sale, the report relates. According to the report, administrator Tenon is handling the liquidation. JESTERS: Goes Into Administration Following Expansion ----------------------------------------------------- Chortle reports that the Jesters, Bristol's biggest comedy club, has gone into administration 16 months after expanding into a new building. The company, the report relates, called in administrators on May 28. According to the report, until it moved venues, Jesters was doing well, with property assets of more than GBP1.2 million. Jesters owner David Trew, as cited in the report, said the expansion produced "a debt servicing requirement that became untenable when the recession came into full force". Mr. Trew, the report discloses, has set up a new company, Cheltenham Road Entertainment, which has bought the Jesters name and the building. The Bristol site will continue to trade as Jesters until October 1, when it will be relaunched under a new name as a combined comedy and live music venue, the report states. JUNARED PROPERTY: In Administration; Deloitte Appointed ------------------------------------------------------- Jennifer Rigby at Property Week reports that Junared Property Group Ltd has gone into administration. Property Week relates Deloitte was appointed as the administrator of Junared One, Junared Two, Junared Three, Burridge Land and Warnock Estates on June 8. According to Property Week, the Junared companies were developing sites including the historic Birmingham Mint at Icknield Street in Hockley, Birmingham, which is part complete. Property Week discloses a 14-apartment scheme at Harrow Road in London is also part complete. "In the current economic environment, the Junared companies have been faced with lower sales interest and certain pre-sale agreements falling away, which have resulted in the companies being unable to complete the developments," Property Week quoted Matt Colishaw, partner in the reorganization services practice at Deloitte, as saying. "We are currently reviewing the developments and the options for their completion. Any parties interested in acquiring the developments in their existing state or entering into a joint venture for their completion should contact the administrators." Headquartered in High Wycombe, Junared Property Group Ltd -- http://www.junared.co.uk/-- is a property development company formed in 2006. LLOYDS BANKING: To Close 164 Cheltenham & Gloucester Branches ------------------------------------------------------------- Jon Menon and Andrew MacAskill at Bloomberg News report that Lloyds Banking Group Plc plans to shed as many as 1,660 full time jobs and shut all 164 of its Cheltenham & Gloucester branches as part of cost-cutting measures. Bloomberg News relates Lloyds, 43 percent government-owned, said Tuesday in a statement that the C&G branch network will close in November and customers will be asked to use the bank's 1,800 offices around the U.K. or telephone banking. It will also stop writing new mortgages via brokers from Bank of Scotland and Intelligent Finance from July 1, Bloomberg New discloses. According to Bloomberg News, the statement said of the total losses, 928 full-time posts are going at C&G, 168 in product and administration roles, and 159 in the intermediary sales team. Bloomberg News recalls Chief Executive Officer Eric Daniels pledged to lower costs after the acquisition of HBOS Plc in January created a bank with more than 3,000 branches and a 28 percent share of Britain's mortgage market. Lloyds, Bloomberg News states, is seeking to save more than GBP1.5 billion (US$2.42 billion) by 2011. "3,000 branches is too many," Bloomberg News quoted Simon Maughan at MF Global Securities Ltd, who has a "neutral" rating on Lloyds, as saying. "If you are going to get the cost savings you are talking about with the merger, you have to close branches and make redundant the people that work in them." 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. * Moody's Reviews Ratings on 26 Notes From 11 CDO Transactions -------------------------------------------------------------- Moody's Investors Service has placed under review for possible downgrade its ratings of 26 notes issued by 11 collateralized debt obligation transactions. The rating actions are a response to credit deterioration in the underlying portfolios. These transactions are synthetic CDOs referencing, amongst other assets, RMBS, CMBS, CLO and corporate entities. Moody's initially analyzed and continues to monitor this transaction using primarily the methodology and its supplements for ABS CDOs as described in Moody's Special Reports below: -- Moody's Approach to Rating SF CDOs, March 2009 The rating actions are: Argon Capital PLC - Series 77 (Lagonda) -- EUR10,200,000 Limited Recourse Secured Variable Rate Credit- Linked Notes due 2047, Baa2 and Placed Under Review for Possible Downgrade; previously on 19 December 2008 Downgraded to Baa2 Asgard CDO plc -- CHF 6,000,000 Series A Swiss Franc Floating Rate Credit Linked Secured Notes due 2011, Ba3 and Placed Under Review for Possible Downgrade; previously on 20 February 2009 Downgraded to Ba3 -- EUR327,000,000 Series A Euro Floating Rate Credit Linked Secured Notes due 2011, Ba3 and Placed Under Review for Possible Downgrade; previously on 20 February 2009 Downgraded to Ba3 -- GBP2,000,000 Series A Sterling Floating Rate Credit Linked Secured Notes due 2011, Ba3 and Placed Under Review for Possible Downgrade; previously on 20 February 2009 Downgraded to Ba3 -- EUR125,000,000 Series B Euro Floating Rate Credit Linked Secured Notes due 2011, B1 and Placed Under Review for Possible Downgrade; previously on 20 February 2009 Downgraded to B1 -- GBP2,000,000 Series B Sterling Floating Rate Credit Linked Secured Notes due 2011, B1 and Placed Under Review for Possible Downgrade; previously on 20 February 2009 Downgraded to B1 -- NZD 10,000,000 Series B New Zealand Dollar Floating Rate Credit Linked Secured Notes due 2011, B1 and Placed Under Review for Possible Downgrade; previously on 20 February 2009 Downgraded to B1 -- US$20,000,000 Series B Dollar Floating Rate Credit Linked Secured Notes due 2011, B1 and Placed Under Review for Possible Downgrade; previously on 20 February 2009 Downgraded to B1 -- CHF 5,000,000 Series C Swiss Franc Floating Rate Credit Linked Secured Notes due 2011, B2 and Placed Under Review for Possible Downgrade; previously on 20 February 2009 Downgraded to B2 -- US$10,000,000 Series C Dollar Floating Rate Credit Linked Secured Notes due 2011, B2 and Placed Under Review for Possible Downgrade; previously on 20 February 2009 Downgraded to B2 -- EUR7,500,000 Series D Euro Fixed Rate Credit Linked Secured Notes due 2011, B3 and Placed Under Review for Possible Downgrade; previously on 20 February 2009 Downgraded to B3 Brooklands Euro Referenced Linked Notes 2001-1 Limited -- Cl. A, B3 and Placed Under Review for Possible Downgrade; previously on 20 February 2009 Downgraded to B3 Brooklands Euro Referenced Linked Notes 2004-1 Limited -- Class A1-a Floating Rate Notes due 2054, Ba1 and Placed Under Review for Possible Downgrade; previously on 20 February 2009 Downgraded to Ba1 -- Class A1-b Floating Rate Notes due 2054, Ba1 and Placed Under Review for Possible Downgrade; previously on 20 February 2009 Downgraded to Ba1 -- Class A2 Floating Rate Notes due 2054, B3 and Placed Under Review for Possible Downgrade; previously on 20 February 2009 Downgraded to B3 Claris Limited - Series 108, 109 & 110 (Millesime 2007-3) -- Series 108/2007-Tranche 1- JPY 1,000,000,000, Baa3 and Placed Under Review for Possible Downgrade; previously on 11 March 2009 Downgraded to Baa3 -- Series 109/2007 - Tranche 1- JPY 2,300,000,000, Baa3 and Placed Under Review for Possible Downgrade; previously on 11 March 2009 Downgraded to Baa3 -- Series 110/2007-Tranche 1-EUR13,000,000, A2 and Placed Under Review for Possible Downgrade; previously on 11 March 2009 Downgraded to A2 Claris Limited - Voltaire Credit-Linked Notes -- Series 43/2005 Voltaire Floating Rate Credit Linked Notes-1, Caa2 and Placed Under Review for Possible Downgrade; previously on 27 January 2009 Downgraded to Caa2 -- Series 45/2005 Voltaire Fixed Rate Credit Linked Notes, Caa2 and Placed Under Review for Possible Downgrade; previously on 27 January 2009 Downgraded to Caa2 Corsair (Jersey) No 4 Limited -- Series 11 Floating Rate Step-down Secured Portfolio CLN, Ba1 and Placed Under Review for Possible Downgrade; previously on 20 February 2009 Downgraded to Ba1 Eirles Two Limited -- Series 120 US$50,000,000 Floating Rate Secured Notes due 2011, Ba3 and Placed Under Review for Possible Downgrade; previously on 20 February 2009 Downgraded to Ba3 Hanover Street Finance Limited -- Class A1 Floating Rate Credit-Linked Notes, Caa2 and Placed Under Review for Possible Downgrade; previously on 20 February 2009 Downgraded to Caa2 High Tide CDO I S.A. -- Class A Senior Secured Floating Rate Notes, Ba2 and Placed Under Review for Possible Downgrade; previously on 11 March 2009 Downgraded to Ba2 -- Class B Senior Secured Floating Rate Notes, Caa3 and Placed Under Review for Possible Downgrade; previously on 11 March 2009 Downgraded to Caa3 Lagonda CDO -- EUR30,000,000 Lagonda CDO CDS, A1 and Placed Under Review for Possible Downgrade; previously on 11 March 2009 Downgraded to A1 * Moody's Reviews Ratings on 14 Notes Isued by 5 CDO Transactions ----------------------------------------------------------------- Moody's Investors Service has placed under review for possible downgrade its ratings of 14 notes issued by 5 collateralized debt obligation transactions which have significant exposure to collateralized loan obligations and collateralized bond obligations. The rating actions are a response to credit deterioration in the underlying portfolio due to expectations of further rating downgrades in the underlying CLO and CBO assets. The actions also reflect a general consideration of the credit deterioration of underlying portfolios. Moody's announced revisions and updates to certain key assumptions, including Default Probability and Diversity Score, that it uses to rate and monitor CLOs in a Press Release titled "Moody's updates key assumptions for rating CLOs" published on February 4, 2009. The completion of the first stage of its two- stage review of CLOs was announced on March 27, 2009. As of March 23, Moody's had downgraded approximately 2,071 tranches from 668 transactions. Moody's continues to review CLOs with additional detailed deal analysis in Stage II, during which ratings on all CLO tranches may be subject to additional rating actions as necessary. Moody's initially analyzed and continues to monitor this transaction using primarily the methodology and its supplements for ABS CDOs as described in Moody's Special Reports below: -- Moody's Approach to Rating SF CDOs, March 2009 The rating actions are: Cheyne CLO Investments I Limited -- Supersenior Financial Guarantee, A2 and Placed Under Review for Possible Downgrade; previously on 11 March 2009 Downgraded to A2 -- Class A, Ba1 and Placed Under Review for Possible Downgrade; previously on 11 March 2009 Downgraded to Ba1 -- Class B, B1 and Placed Under Review for Possible Downgrade; previously on 11 March 2009 Downgraded to B1 -- Class C, B3 and Placed Under Review for Possible Downgrade; previously on 11 March 2009 Downgraded to B3 -- Class D, Caa1 and Placed Under Review for Possible Downgrade; previously on 11 March 2009 Downgraded to Caa1 -- Class E, Caa3 and Placed Under Review for Possible Downgrade; previously on 11 March 2009 Downgraded to Caa3 Dublin Oak Limited -- US$207,000,000 Class A Credit-Linked Notes due 2086-1, Baa2 and Placed Under Review for Possible Downgrade; previously on 19 December 2008 Downgraded to Baa2 Lunar Funding III Limited -- Series 17 Credit-Linked Secured Asset-Backed Notes due 2015, Baa1 and Placed Under Review for Possible Downgrade; previously on 11 March 2009 Downgraded to Baa1 Lunar Funding V Limited- Menton CDO I -- Series 2 US$50,000,000 Secured Asset-Backed Floating Rate Notes due 2041(Menton CDO I Class A), Caa3 and Placed Under Review for Possible Downgrade; previously on 11 March 2009 Downgraded to Caa3 Sheffield CDO, Limited -- Class A-1 Senior Secured Floating Rate Notes due 2041, Baa2 and Placed Under Review for Possible Downgrade; previously on 11 March 2009 Downgraded to Baa2 -- Class A-1D Delayed Draw Senior Secured Floating Rate Note due 2041, Baa2 and Placed Under Review for Possible Downgrade; previously on 11 March 2009 Downgraded to Baa2 -- Class A-2 Senior Secured Floating Rate Notes due 2041, B1 and Placed Under Review for Possible Downgrade; previously on 11 March 2009 Downgraded to B1 -- Class B Senior Secured Floating Rate Notes due 2041, Caa1 and Placed Under Review for Possible Downgrade; previously on 11 March 2009 Downgraded to Caa1 -- Class T Combination Notes due 2041, Caa2 and Placed Under Review for Possible Downgrade; previously on 11 March 2009 Downgraded to Caa2 * Upcoming Meetings, Conferences and Seminars --------------------------------------------- June 10-13, 2009 ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS 25th Annual Bankruptcy & Restructuring Conference The Ritz-Carlton Orlando Grande Lakes Orlando, Florida Contact: http://www.aria.org/ June 11-14, 2009 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa Traverse City, Michigan Contact: http://www.abiworld.org/ June 21-24, 2009 INTERNATIONAL ASSOCIATION OF RESTRUCTURING, INSOLVENCY & BANKRUPTCY PROFESSIONALS 8th International World Congress TBA Contact: http://www.insol.org/ July 16-19, 2009 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Mt. Washington Inn Bretton Woods, New Hampshire Contact: http://www.abiworld.org/ July 29-August 1, 2009 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Conference The Westin Hilton Head Island Resort & Spa, Hilton Head Island, S.C. Contact: http://www.abiworld.org/ August 6-8, 2009 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Conference Hotel Hershey, Hershey, Pa. Contact: http://www.abiworld.org/ Sept. 10-11, 2009 AMERICAN BANKRUPTCY INSTITUTE Complex Financial Restructuring Program Hyatt Regency Lake Tahoe, Incline Village, Nevada Contact: http://www.abiworld.org/ Sept. 10-12, 2009 AMERICAN BANKRUPTCY INSTITUTE 17th Annual Southwest Bankruptcy Conference Hyatt Regency Lake Tahoe, Incline Village, Nevada Contact: http://www.abiworld.org/ Oct. 2, 2009 AMERICAN BANKRUPTCY INSTITUTE ABI/GULC "Views from the Bench" Georgetown University Law Center, Washington, D.C. Contact: http://www.abiworld.org/ Oct. 5-9, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Desert Ridge, Phoenix, Arizona Contact: 312-578-6900; http://www.turnaround.org/ Oct. 20, 2009 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Paris Las Vegas, Las Vegas, Nev. Contact: http://www.abiworld.org/ December 3-5, 2009 AMERICAN BANKRUPTCY INSTITUTE 21st Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, California Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 29-May 2, 2010 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ June 17-20, 2010 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Michigan Contact: 1-703-739-0800; http://www.abiworld.org/ July 7-10, 2010 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Ocean Edge Resort, Brewster, Massachusetts Contact: 1-703-739-0800; http://www.abiworld.org/ July 14-17, 2010 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Conference The Ritz-Carlton Amelia Island, Amelia, Fla. Contact: http://www.abiworld.org/ August 5-7, 2010 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 4-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ December 2-4, 2010 AMERICAN BANKRUPTCY INSTITUTE 22nd Annual Winter Leadership Conference Camelback Inn, Scottsdale, Arizona Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 31-Apr. 3, 2011 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ June 9-12, 2011 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa Traverse City, Michigan Contact: http://www.abiworld.org/ December 1-3, 2011 AMERICAN BANKRUPTCY INSTITUTE 23rd Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, California Contact: 1-703-739-0800; http://www.abiworld.org/ ********* 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 * * *