/raid1/www/Hosts/bankrupt/TCREUR_Public/090625.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 25, 2009, Vol. 10, No. 124
Headlines
A U S T R I A
CINEMA & MUSIC: Creditors Must File Claims by July 15
HMC HANDEL GMBH: Creditors Have Until July 14 to File Claims
IMMOBILIENWELT REALITATEN: Creditors Must File Claims by July 14
IMMOBILIENWELT-ZEITUNGSVERLAG GMBH: Claims Filing Ends July 14
MB-MONTAGE GMBH: Creditors Have Until July 17 to File Claims
A Z E R B A I J A N
INTERNATIONAL BANK: Moody's Cuts Subordinated Debt Rating to 'Ba1'
B U L G A R I A
KREMIKOVTZI AD: No Payments Made to NEC, Receiver Says
C Y P R U S
A&G PROPERTY: Nicosia Court Orders Liquidation
F R A N C E
PEUGEOT CITROEN: Losses to Hit EUR2 Bln if Scrappage Schemes End
PEUGEOT SA: Operating Loss Won't Affect Fitch's 'BB+' Rating
RENAULT SA: To Invest US$128 Million in Argentine Unit
G E R M A N Y
ARCANDOR AG: FT Says Quelle's Chance to Get State Guarantee Slim
GENERAL MOTORS: Opel Allows All Bidders to Scrutinize Books
G R E E C E
YIOULA GLASSWORKS: S&P Lowers Corporate Credit Rating to 'B-'
I R E L A N D
ARRAMOUNT FURNITURE: Appoints Kieran Wallace as Interim Examiner
BACCHUS 2006-2: Moody's Cuts Ratings on Class D & E Notes to 'Ca'
LARAGAN DEVT'S: Owes EUR750,000 in Levies; Buyers to Lose Deposits
SANDHOUSE HOTEL: Key Executives Take Over Operations
I T A L Y
LOCAT SV: Moody's Downgrades Rating on Class C Notes to 'Ba2'
TISCALI SPA: Unveils Terms of Capital Increase Plans
K A Z A K H S T A N
ARYS LLP: Creditors Must File Claims by July 3
DINAIL COMPANY: Creditors Must File Claims by July 3
OTRASLEVAYA LABORATORIYA: Creditors Must File Claims by July 3
SHARLOTA LUX: Creditors Must File Claims by July 3
STAN TAU: Creditors Must File Claims by July 3
R U S S I A
PITKYARANTA-LES LLC: Creditors Must File Claims by July 5
SARAPULSKIY TANNERY: Court Namese Temporary Insolvency Manager
SHCHIPITSINSKYA WOOD-PROCESSING: Court Names Insolvency Manager
URAL-TALC CJSC: Court Names A. Boltrushevich as Insolvency Manager
VOLGOVYATSKAYA METAL: Under External Mgt. Bankruptcy Procedure
* Fitch Assigns 'B+' Currency Ratings on Russian City of Kazan
S W I T Z E R L A N D
A. FRICKER & CO: Creditors Have Until June 29 to File Claims
ATEP AG: Creditors Must File Claims by June 29
GLOB TEXTILE-IMPEX: Creditors Have Until June 29 to File Claims
VISION ENGINEERING: Claims Filing Deadline Is July 21
ROTHFIELDS GMBH: Creditors Must File Claims by July 31
U K R A I N E
AGRICULTURAL INDUSTRIAL: Creditors Must File Claims by June 28
ALEX LLC: Creditors Must File Claims by June 28
NAVIGATOR TRANS: Creditors Must File Claims by June 28
POLUEKT LLC: Creditors Must File Claims by June 28
T.A.I.S LLC: Creditors Must File Claims by June 28
UKRAINIAN TREACLE: Court Starts Bankruptcy Supervision Procedure
U N I T E D K I N G D O M
BUSS MURTON: Completes Pre-Packed Administration; Exits CVA
CHESTER ASSET: Fitch Cuts Ratings on Class C Notes to 'BB'
CHESTER ASSET: Fitch Lowers Ratings on Class C Notes to 'BB'
CORSAIR NO 4: Moody's Cuts Rating on Series 11 Note to 'B1'
DEBENHAMS PLC: To Use Funds Raised in Shares Placing to Cut Debt
DRAX GROUP: Places New Shares to Avoid Further Credit Rating Cut
DUNEDIN PROPERTY: "Industrious" Portfolio Up for Sale
EGRET FUNDING: S&P Downgrades Ratings on All Classes of Notes
LIVERPOOL FOOTBALL: Nears Debt Refinancing Deal With RBS
MONEY PORTAL: Completes Pre-Packaged Administration Sale
SETANTA SPORTS: Goes Into Administration
WEST BROMWICH: Fitch Affirms Rating on Lower Tier 2 Notes at 'C'
* FITCH: PIK Loans Common in European Buyout Debt Restructurings
* Upcoming Meetings, Conferences and Seminars
*********
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A U S T R I A
=============
CINEMA & MUSIC: Creditors Must File Claims by July 15
-----------------------------------------------------
Creditors of Cinema & Music Handel GmbH have until July 15, 2009,
to file their proofs of claim.
A court hearing for examination of the claims has been scheduled
for July 21, 2009 at 9:00 a.m.
For further information, contact the company's administrator:
Dr. Franz Krainer
Herrengasse 19
Second Floor
8010 Graz
Austria
Tel: 0316/822082
Fax: 0316/822082-75
E-mail: office@dr-krainer.at
HMC HANDEL GMBH: Creditors Have Until July 14 to File Claims
------------------------------------------------------------
Creditors of Hmc Handel GmbH have until July 14, 2009, to file
their proofs of claim.
A court hearing for examination of the claims has been scheduled
for July 28, 2009 at 9:00 a.m.
For further information, contact the company's administrator:
Dr. Helmut Salzbrunn
Zelinkagasse 12
1010 Vienna
Tel: 533 36 69
Fax: 533 36 69-15
E-mail: salzbrunnanwalt@aon.at
IMMOBILIENWELT REALITATEN: Creditors Must File Claims by July 14
----------------------------------------------------------------
Creditors of Immobilienwelt Realitaten GmbH have until July 14,
2009, to file their proofs of claim.
A court hearing for examination of the claims has been scheduled
for July 28, 2009 at 10:50 a.m.
For further information, contact the company's administrator:
Dr. Thomas Wanek
Hochstrasse 31
2380 Perchtoldsdorf
Tel: 01/86 93 888
Fax: 01/869166033
E-mail: anwalt@aon.at
IMMOBILIENWELT-ZEITUNGSVERLAG GMBH: Claims Filing Ends July 14
--------------------------------------------------------------
Creditors of IMMOBILIENWELT-Zeitungsverlag GmbH have until
July 14, 2009, to file their proofs of claim.
A court hearing for examination of the claims has been scheduled
for July 28, 2009 at 11:20 a.m.
For further information, contact the company's administrator:
Dr. Thomas Wanek
Hochstrasse 31
2380 Perchtoldsdorf
Austria
Tel: 01/86 93 888
Fax: 01/869 16 60 33
E-mail: anwalt@aon.at
MB-MONTAGE GMBH: Creditors Have Until July 17 to File Claims
------------------------------------------------------------
Creditors of MB-Montage GmbH have until July 17, 2009, to file
their proofs of claim.
A court hearing for examination of the claims has been scheduled
for July 31, 2009 at 9:45 a.m.
For further information, contact the company's administrator:
Dr. Susi Pariasek
Gonzagagasse 15
1010 Vienna
Austria
Tel: 533 28 55
Fax: 533 28 55-28
E-mail: office@anwaltwien.at
===================
A Z E R B A I J A N
===================
INTERNATIONAL BANK: Moody's Cuts Subordinated Debt Rating to 'Ba1'
------------------------------------------------------------------
Moody's Investors Service has downgraded these global scale
ratings of International Bank of Azerbaijan: long-term and short-
term local currency deposit ratings to Baa3/Prime-3 from
Baa2/Prime-2, and long-term foreign currency subordinated debt
rating to Ba1 from Baa3. The outlook on these ratings is now
negative.
In addition, Moody's has changed the outlook on the Ba2 long-term
foreign currency deposit rating of IBA to stable from positive
following the recent change in outlook on Azerbaijan's Ba2 foreign
currency deposit ceiling to stable from positive. Moody's notes
that the long-term foreign currency deposit rating remains
constrained by the country ceiling.
The bank's other ratings -- short-term foreign currency deposit
rating of Not Prime, and bank financial strength rating (BFSR) of
E+ -- are not affected by these actions and have therefore been
affirmed.
Refined Systemic Support Assessment
The rating action concludes the review for possible downgrade
initiated by Moody's on May 26, 2009, which focused on
Azerbaijan's ability to provide support to its banking system, as
outlined in the rating agency's Special Comment entitled
"Financial Crisis More Closely Aligns Bank Credit Risk and
Government Ratings in Non-Aaa Countries", published in May 2009.
Moody's has refined its assessment of the ability of the
Azerbaijani state to provide systemic support as the worsening of
the local economy and the resulting reduced financial capacity and
policy flexibility may adversely affect the Azerbaijani
government's ability to support the banking sector.
Moody's previously used the local currency deposit ceiling (Baa1
in the case of Azerbaijan) as the main input for its assessment of
the ability of the national government to support the banks.
Although anchoring the probability of support at the LCDC is
appropriate in most circumstances -- regarding the provision of
liquidity to a selected number of institutions over a short period
of time -- this might overestimate the capacity, and even
willingness, of a central bank to support financial institutions
in the event of a banking crisis becoming both truly systemic and
protracted.
Moody's therefore believes that the government's local currency
debt rating (usually adjusted by no more than two notches of
uplift due to the array of tools available to the central bank to
support the banking system) should have a greater weight when
considering the ability of the government to provide systemic
support.
The refined approach allows two notches of uplift from the
government bond rating as the main input for its assessment of the
ability of the national government to support the banks; however,
given the weakening economic condition in Azerbaijan, Moody's
considers a one-notch uplift to be more appropriate, reflecting
the rating agency's view that the probability of the risk that
systemic banking losses in the system will occur is medium. Thus,
the anchor used for measuring the influence of the systemic
support on banks' ratings is now Azerbaijan's government bond
rating of Ba1 plus one notch, resulting in a Baa3 input.
As a result of the amended support considerations, IBA's GLC
deposit ratings of Baa3 receives a five-notch uplift from the
Baseline Credit Assessment of B2, based on Moody's assessment of a
very high probability of systemic support in case of need. This
is based on the bank's dominant market share in Azerbaijan and its
vital importance to the country's payments system.
Amid the recent crisis, the Azerbaijani government has been
supportive by providing short-term liquidity to a number of banks
facing repayments of foreign debt. At the same time, the credit
stress in the banking system has increased significantly, with
non-performing and restructured loans reaching double-digit
levels. The total foreign borrowings of Azerbaijani banks amount
to a manageable level of around US$2 billion, with approximately
half to be repaid this year; the bulk of this amount is due from
IBA as the largest bank in the system.
According to Moody's, IBA remains the largest and the only state-
controlled bank in the country. The bank enjoys a strategic role
and government commitment since it has historically been
instrumental in implementing state investment and economic
policies, acting as an agent of the government in financing large-
scale projects of national importance to Azerbaijan.
Weakening Financial Fundamentals
The negative outlook on IBA's local currency deposit rating and
foreign currency subordinated debt rating reflects Moody's
concerns that the weakening operating environment in Azerbaijan,
coupled with the funding constraints are likely to adversely
affect IBA's asset quality, liquidity and, ultimately,
capitalization going forward.
Moody's is anticipating potential credit problems within the
corporate segment as it accounts for the largest portion of IBA's
loan book (86%). The rating agency is mainly concerned about
those industries that are most exposed to the economic downturn
and to the fall and volatility in commodity prices -- construction
and manufacturing sectors in particular. The bank's credit
exposure to the construction and aluminium sector -- which has
been particularly affected by the crisis -- exceeds 200% of its
Tier 1 capital. Also, the high level of borrower concentration
adds volatility to the bank's asset quality indicators, as the
default of only one large borrower would inevitably result in
material deterioration of the portfolio's quality.
On June 19, 2009, Moody's changed to stable from positive the
outlook on the Republic of Azerbaijan's Ba2 country ceiling for
foreign currency bank deposits and the Baa2 country ceiling for
foreign currency bonds. The local currency country ceilings for
bonds (A3) and bank deposits (Baa1) were affirmed, both with
stable outlook. Similarly, there is no change in the Prime-2
country ceilings for short-term ratings for foreign currency bonds
and Not Prime bank deposits.
The last rating action on IBA was on May 26, 2009, when Moody's
placed the Baa2 global local currency deposit rating and Baa3
foreign currency subordinated debt rating on review for possible
downgrade.
Headquartered in Baku, Azerbaijan, International Bank of
Azerbaijan reported total assets of AZN3.8 billion
(US$4.8 billion) and shareholders' equity of AZN384.4 million
(US$479.9 million) under IFRS at year-end 2008.
===============
B U L G A R I A
===============
KREMIKOVTZI AD: No Payments Made to NEC, Receiver Says
------------------------------------------------------
Veselina Yordanova at FOCUS News Agency reports that according to
Kremikovtzi AD's receiver, Tsvetan Bankov, no payments have been
made to the National Electricity Company.
According to FOCUS News Agency, Mr. Bankov said the main part of
the debts to NEK was piled up before the date for opening
insolvency proceedings. Mr. Bankov, as cited by FOCUS News
Agency, said no official letters informing that power supply to
the mill will be cut off have been received.
FOCUS News Agency relates the receiver said the deadline for
tabling a recovery plan in Sofia City expires on June 29.
About Kremikovtzi
Headquartered in Sofia, Bulgaria, Kremikovtzi AD --
http://www.kremikovtzi.com/-- is a single-site steel producer in
Bulgaria that reported BGN896 million in revenues in 2006.
It explores and produces iron and ore fields.
As reported in the Troubled Company Reporter-Europe on Aug. 8,
2008, the Sofia City Court commenced insolvency proceedings
against Kremikovtzi AD after declaring it bankrupt. The court
appointed a temporary bankruptcy administrator for the steelmaker.
The court also ruled that Kremikovtzi's insolvency started on
Dec. 31, 2005. As of Dec. 31, 2007, the company had BGN1.63
billion (US$1.3 billion) in total debts.
===========
C Y P R U S
===========
A&G PROPERTY: Nicosia Court Orders Liquidation
----------------------------------------------
Cyprus Property Magazine reports A&G PROPERTY Wise Development
Ltd, the company operating the Froiber brand in Cyprus, will be
liquidated on July 17, for repeated failure to make employer's
social security contributions.
The report relates the Social Security Fund lodged a request with
Nicosia District Court on May 4, 2007 for the company to be
liquidated. The liquidation order was finally issued on November
18, 2008, with effect on May 18, 2009, the report says. At A&G's
request, the court agreed to postpone execution of the order for
two months, to July 17, 2009, the report recounts.
According to the report, in 2003 A&G declared current liabilities
totaling CYP8.74 million, which it would not be able to repay on
demand in order to remain solvent.
===========
F R A N C E
===========
PEUGEOT CITROEN: Losses to Hit EUR2 Bln if Scrappage Schemes End
----------------------------------------------------------------
Esther Bintliff and Peggy Hollinger at the Financial Times report
that PSA Peugeot Citroen S.A. on Tuesday warned that its losses
this year could hit EUR2 billion (US$2.8 billion) if governments
abandoned car-scrapping schemes.
The FT relates Peugeot the group warned that production in the
fourth quarter could be scaled back again if government-supported
programs ended this year. Peugeot on Tuesday revised upwards its
expectations for European car sales in 2009, saying it expected
the market to contract by 12 per cent against previous
expectations of 20 per cent at the beginning of the year, the FT
discloses.
According to the FT, France, the first of the 12 European
countries to launch a scrapping scheme as part of its EUR6 billion
car industry bail-out, will decide in January whether to continue,
while Germany, which has the most generous scheme, is weighing its
options.
The FT recalls Peugeot received a EUR3 billion long-term loan from
the French government in March and a EUR400 million four-year loan
from the European Investment Bank in April.
Bond Offering
Peugeot, the FT says, announced a convertible bond issue of up to
EUR575 million. The FT discloses the initial bond offering will
be EUR500 million, with the option to increase to a maximum of
EUR575 million. The offer will run until today, June 25, with a
redemption date of January 1, 2016.
The group, which recorded a EUR343 million net loss in 2008, as
cited by the FT, said the capital raised from the bond issue would
go towards "general financing needs", development projects and the
extension of the maturity of its existing debt.
According to Bloomberg News, the company's planned EUR500 million
(US$700 million) convertible bond issue may allow it to raise
funds more cheaply than in the corporate debt market. "The chief
advantage" of choosing a convertible bond issue "is the lower
coupon," Bloomberg News quoted Julian Lim, an analyst at Nomura
International in London, as saying in an interview. "It's a cheap
way of raising capital."
Bloomerg News discloses Fitch Ratings grades the company at BB+,
the highest junk level. Fitch has a negative outlook on the
ratings, Bloomberg News notes.
PSA Peugeot Citroen S.A. -- http://www.psa-peugeot-citroen.com--
is a France-based manufacturer of passenger cars and light
commercial vehicles. It produces vehicles under the Peugeot and
Citroen brands. In addition to its automobile division, the
Company includes Banque PSA Finance, which supports the sale of
Peugeot and Citroen vehicles by financing new vehicle and
replacement parts inventory for dealers and offering financing and
related services to car buyers; Faurecia, an automotive equipment
manufacturer focused on four component families: seats, vehicle
interior, front end and exhaust systems; Gefco, which offers
logistics services covering the entire supply chain, including
overland, sea and air transport, industrial logistics, container
management, vehicle preparation and distribution, and customs and
value added tax (VAT) representation, and Peugeot Motocycles,
which manufactures scooters and motorcycles. In 2008, PSA Peugeot
Citroen S.A. sold over 3.2 million vehicles in 150 countries
worldwide.
PEUGEOT SA: Operating Loss Won't Affect Fitch's 'BB+' Rating
------------------------------------------------------------
Fitch Ratings said that Peugeot SA's launch of a minimum
EUR500 million convertible bond and the announcement that it will
post an operating loss of between EUR1 billion-EUR2 billion in
2009 will have no immediate impact on its 'BB+' Long-term Issuer
Default rating and 'B' Short-term IDR. The Outlook on PSA's Long-
term IDR is Negative.
"Fitch had anticipated an operating loss of that magnitude when it
downgraded PSA in March 2009. In addition, the downgrade had
incorporated significant uncertainties and extremely challenging
conditions for the remainder of 2009 and in 2010, which the group
confirmed in its announcement today," said Emmanuel Bulle, Senior
Director in Fitch's European Corporates group.
Despite a slower-than-expected decline in new vehicle sales so far
in 2009 as a result of scrapping incentives being offered in
several European countries, PSA's revenue and profitability will
continue to suffer from a deteriorating product mix and pressure
on prices. Lower consumer spending and confidence are likely to
constrain new vehicle sales and the sector's product mix, as
consumers increasingly opt to purchase cheaper vehicles which are
less profitable for manufacturers.
Fitch reiterates its growing concern about the risk of a pay-back
effect on new vehicle sales when the various incentive schemes
stop and/or when demand for incentivised vehicle purchases
declines. This pay-back effect may limit the potential for a
lasting rebound in sales and revenues in 2010, when economic
conditions are expected to pick up, and could weigh on PSA's
profitability.
PSA also announced the launch of a EUR500 million convertible
bond, which may be increased up to EUR575 million. The bonds can
be exchanged for new or existing PSA shares on January 1, 2016.
Proceeds of the sale will be used for general refinancing purposes
and, notably, for funding the group's development projects. The
announcement is marginally positive as it supports the group's
liquidity profile, although debt at PSA's industrial division
should remain high even if the bonds are converted in full.
However, funding needs for PSA's industrial operations for the
rest of 2009 should be covered by a EUR3 billion French government
loan and a EUR400 million European Investment Bank loan granted in
March and April 2009, respectively, and PSA's cash position. PSA
confirmed that it does not face any significant debt repayment
until September 2011 when a EUR1.5 billion bond becomes due and
that, depending on market conditions, it may consider a bond issue
to refinance. At FYE08, PSA reported EUR3.2 billion in cash and
cash equivalents and approximately EUR8.4bn of available credit
lines with banks (including EUR6bn at Banque PSA Finance).
Fitch will issue a special report focusing on liquidity in the
European auto industry in the coming weeks.
RENAULT SA: To Invest US$128 Million in Argentine Unit
------------------------------------------------------
Reuters reports that Renault SA will invest 500 million pesos
(US$128 million) between 2009 and 2011 in its Argentine unit to
begin production of a new vehicle and modernize a plant.
According to Reuters, some 335 million pesos will go to the
production of the vehicle, with 165 million pesos destined to
upgrade the company's plant in the central province of Cordoba.
Reuters relates Renault said the vehicle will be targeted to the
Latin American market.
Renault SA -- http://www.renault.com-- is a France-based company
primarily engaged in the manufacture of automobiles and related
services. The Company has two main areas of business activity:
the Automobile division, which handles the design, manufacture and
marketing of passenger cars and commercial vehicles, under
Renault, Renault Samsung Motors and Dacia brands, and the Sales
Financing division, which provides financial and commercial
services related to the Company's sales activities, and is
comprised of RCI Banque and its subsidiaries. The Company
operates worldwide via a group of subsidiaries and dependant
companies, including wholly owned Renault SAS, 99.43%-owned Dacia,
44.3%-owned Nissan Motor and 20.7%-owned AB Volvo, among others.
* * *
As reported in the Troubled Company Reporter-Europe on June 23,
2009, Standard & Poor's Ratings Services said that it has lowered
its long- and short-term corporate credit and debt ratings on
Renault S.A. to the speculative-grade level of 'BB/B', from 'BBB-/
A-3'. S&P said the outlook is stable.
=============
G E R M A N Y
=============
ARCANDOR AG: FT Says Quelle's Chance to Get State Guarantee Slim
----------------------------------------------------------------
Dave Graham and Ludwig Burger at Reuters report that according to
daily Financial Times Deutschland, Arcandor AG's Quelle mail order
unit has a slim chance of obtaining a state loan guarantee of some
EUR50 million (US$69.3 million).
Reuters relates the paper, citing its sources, said an inter-
ministerial committee assessing Quelle's qualifications for the
aid believed the risk that Quelle would default on the loan was so
high that the state would be liable for the guarantee immediately.
According to Reuters, a spokeswoman for the Economy Ministry said
that the inter-ministerial committee had yet to make a final
decision about the aid.
On June 22, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported Bavaria agreed to provide financial
backing to Quelle as part of a government guarantee of EUR50
million (US$69.5 million). Reuters disclosed Quelle's insolvency
administrator Klaus Hubert Goerg struck said a memorandum of
understanding with banks which meant Quelle would be able to
continue to operate and start printing its autumn/winter catalogue
-- crucial for its business. Reuters related publication of the
catalogue was at risk as Quelle ran out of money to pay for the
printing after its factoring bank cut the company off.
Bankruptcy
On June 11, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported Arcandor on June 9 filed for bankruptcy
protection after the German government turned down its request for
loan guarantees. 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 disclosed Euro am Sonntag said Tuesday that the
retailer won concessions worth about EUR750 million after
overnight talks with suppliers, creditors, landlords and
shareholders.
Bloomberg News recalled the government on June 8 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 noted.
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.
GENERAL MOTORS: Opel Allows All Bidders to Scrutinize Books
-----------------------------------------------------------
Patrick Donahue at Bloomberg News reports that according to
Handelsblatt, General Motors Corp's German unit Adam Opel GmbH is
making financial details available to any interested bidder.
Bloomberg News relates Handelsblatt, citing trust Chairman Fred
Irwin, said all bidders have a right to the books, as Magna
International's memorandum of understanding with GM doesn’t make
the information exclusive.
According to Bloomberg News, the German paper, citing unidentified
people involved in the talks, said Magna is aiming for talks to
wrap up in three weeks.
On June 2, 2009, the Troubled Company Reporter-Europe, citing RIA
Novosti, reported the German government and Canadian auto-
component maker Magna, backed by Russia's Sberbank and GAZ,
reached a deal on May 30 that will see the consortium take over
Opel. RIA Novosti disclosed Magna will acquire a 20% stake in
Opel with Russia's state-owned Sberbank and car maker GAZ, owned
by billionaire Oleg Deripaska, taking a 35% slice to make the
consortium a majority shareholder. BBC News said the terms of the
agreement are thought to involve GM keeping a 35% stake in the
company, while 10% would be owned by Opel employees.
About General Motors
Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908. GM employs
about 266,000 people around the world and manufactures cars and
trucks in 35 countries. In 2007, nearly 9.37 million GM cars and
trucks were sold globally under the following brands: Buick,
Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,
Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar
subsidiary is the industry leader in vehicle safety, security and
information services.
GM Europe is based in Zurich, Switzerland, while General Motors
Latin America, Africa and Middle East is headquartered in Miramar,
Florida.
As reported by the Troubled Company Reporter, GM reported net loss
of US$6.0 billion, including special items, in the first quarter
of 2009. This compares with a reported net loss of US$3.3 billion
in the year-ago quarter. As of March 31, 2009, GM had US$82.2
billion in total assets and US$US$172.8 billion in total
liabilities, resulting in US$90.5 billion in stockholders'
deficit.
On April 27, General Motors presented the U.S. Department of
Treasury with an updated plan as required by the loan agreement
signed by GM and the U.S. Treasury on December 31, 2008. The plan
addresses the key restructuring targets required by the loan
agreement, including a number of the critical elements of the plan
that was submitted to the U.S. government on December 2, 2008.
Among these are: U.S. market competitiveness; fuel economy and
emissions; competitive labor cost; and restructuring of the
company's unsecured debt. It also includes a timeline for
repayment of the Federal loans, and an analysis of the Company's
positive net present value. The plan details the future reduction
of GM's vehicle brands and nameplates in the U.S., further
consolidation in its workforce and dealer network, accelerated
capacity actions and enhanced manufacturing competitiveness, while
maintaining GM's strong commitment to high-quality, fuel-efficient
vehicles and advanced propulsion technologies. A full-text copy
of GM's viability plan presented in February 2009 is available at
http://researcharchives.com/t/s?39a4
General Motors Corporation and three of its affiliates filed for
Chapter 11 protection on June 1, 2009 (Bankr. S.D. N.Y. Lead Case
No. 09-50026). The Honorable Robert E. Gerber presides over the
Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq.,
and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP,
assist the Debtors in their restructuring efforts. Al Koch at AP
Services, LLC, an affiliate of AlixPartners, LLP, is the Debtors'
restructuring officer. GM is also represented by Jenner & Block
LLP and Honigman Miller Schwartz and Cohn LLP as counsels.
Cravath, Swaine, & Moore LLP is providing legal advice to the GM
Board of Directors. GM's financial advisors are Morgan Stanley,
Evercore Partners and the Blackstone Group LLP.
===========
G R E E C E
===========
YIOULA GLASSWORKS: S&P Lowers Corporate Credit Rating to 'B-'
-------------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its long-term
corporate credit rating on Greece-based glass container
manufacturer Yioula Glassworks S.A. to 'B-' from 'B' and its
senior unsecured debt rating to 'CCC+' from 'B-'. The outlook is
negative.
"The downgrade reflects S&P's view that a sharper-than-anticipated
decline of demand, along with contracting margins, is likely to
weaken Yioula's credit measures to levels more appropriate for a
'B-' rating and put further strain on persistently very weak
liquidity," said Standard & Poor's credit analyst Izabela
Listowska. "The rating actions also reflect S&P's increased
uncertainties about the pace of eventual market recovery."
The ratings continue to reflect Yioula's very weak liquidity; its
exposure to volatile input prices, with continuous pressure to
pass on cost inflation; and its narrow scope of operations. These
weaknesses are mitigated by the group's dominant positions in
highly consolidated markets; its diversified and fairly protected
customer base, thanks to established relationships and a lack of
alternative suppliers; and its good, albeit weakening,
profitability. On March 31, 2009, Yioula reported total debt of
about EUR297 million.
After a weak fourth quarter of 2008, the deterioration of Yioula's
operating performance accelerated in the first quarter of 2009,
with revenues and EBITDA falling by 20% and 29%, respectively,
quarter on quarter. Market prospects remain gloomy, and S&P
predict similar rates of decline for full-year 2009. S&P believes
this anticipated underperformance will mainly result from a steep
drop in demand, owing to a severe economic slowdown in Yioula's
core markets in the Balkan region.
Yioula's financial risk profile remains highly leveraged, in S&P's
view. In 2008, debt to EBITDA was 4.9x and funds from operations
to debt was about 7%. Credit measures are likely to weaken in
2009 because of lower anticipated earnings and cash flows.
Furthermore, continued weak operating cash flows will constrain
liquidity and limit the potential for debt reduction. Yioula can
reduce its capital expenditures in 2009, which is a positive
factor. Nevertheless, the currently low level of demand is a
concern, particularly because the timing of an eventual
improvement is uncertain at this stage.
Yioula's liquidity profile is very weak, in S&P's view, but its
liquidity sources should be sufficient to meet near-term needs.
On March 31, 2009, the company had EUR18.4 million available under
EUR82.9 million of short-term revolving credit facilities and a
cash balance of about EUR4 million.
"The outlook is negative because S&P believes that Yioula will
continue to face a difficult environment over the near term, owing
to economic uncertainty in its local markets," said Ms. Listowska.
=============
I R E L A N D
=============
ARRAMOUNT FURNITURE: Appoints Kieran Wallace as Interim Examiner
----------------------------------------------------------------
Caroline Madded at the Irish Times reports that Arramount
Furniture has appointed Kieran Wallace of KPMG as interim
examiner.
According to the report, the company said it had sought the
protection of an interim examiner to allow it to put in place new
refinancing arrangements with creditors and bankers. The report
relates Mr. Wallace said the company's outlets continue to trade
as normal.
The report discloses the most recent abridged accounts filed for
Arramount Furniture showed that the firm owed creditors EUR15,000
at the end of April 2008, while its parent company Arramount
Woodcraft (Holdings) Ltd, which has net assets of EUR1.9 million,
owed EUR1.45 million.
Arramount Furniture, which employs 34 people, will return to court
on July 14 for the hearing of its petition to appoint a full
examiner, the report states.
BACCHUS 2006-2: Moody's Cuts Ratings on Class D & E Notes to 'Ca'
-----------------------------------------------------------------
Moody's Investors Service has downgraded its ratings of twelve
classes of notes issued by Bacchus 2006-2 plc.
Bacchus 2006-2 is a managed high yield CLO-arbitrage cash flow
transaction referencing mainly European senior secured loans.
According to Moody's, the rating actions taken on the notes are a
result of credit deterioration of the underlying portfolio. The
transaction has experienced some defaults and the current weighted
average rating factor is of 4368 after taking into account Moody's
updated assumptions regarding CLOs. Credit deterioration of the
collateral pool is observed in, among others, a decline in the
average credit rating (as measured through the weighted average
rating factor), an increase in the euro amount of defaulted
securities (currently 6% of the collateral pool), an increase in
the proportion of securities from issuers rated Caa1 and below
(currently 23% of the collateral pool), and failure of all Par
Value Tests and Moody's Maximum Weighted Average Rating Factor
Test.
The actions also reflect Moody's revised assumptions with respect
to default probability, the treatment of ratings on "Review for
Possible Downgrade" or with a "Negative Outlook," and the
calculation of the Diversity Score. The revised assumptions that
have been applied to all corporate credits in the underlying
portfolio are described in the press release dated February 4,
2009, titled "Moody's updates key assumptions for rating CLOs."
In addition, for 77% of the underlying referenced assets, credit
estimates were used in the analysis. As credit estimates do not
carry credit indicators such as ratings reviews and outlooks, a
stress of a quarter notch-equivalent assumed downgrade was applied
to each of these estimates.
In addition to the quantitative factors that are explicitly
modeled, qualitative factors are part of the rating committee
considerations. These qualitative factors include the structural
protections in each transaction, the recent deal performance in
the current market environment, the legal environment, specific
documentation features, the collateral manager's track record, and
the potential for selection bias in the portfolio. All
information available to rating committees, including
macroeconomic forecasts, input from other Moody's analytical
groups, market factors, and judgments regarding the nature and
severity of credit stress on the transactions, may influence the
final rating decision.
Moody's initially analysed and continues to monitor this
transaction using primarily the methodology and its supplements
for cash flow CLOs as described in Moody's Special Reports and
press releases below:
-- Moody's Approach to Rating Collateralized Loan Obligations
(December 2008)
The rating actions are:
-- Class A-1 Senior, Downgraded to A2, previously on March 19,
2009 Aaa Placed under Review for Possible Downgrade
-- Class A-2A Senior Downgraded to Aa2, previously on March 19,
2009 Aaa Placed under Review for Possible Downgrade
-- Class A-2B Senior Downgraded to Baa2, previously on March 4,
2009 Aa1 Placed under Review for Possible Downgrade
-- Class B Senior Senior Downgraded to Ba3, previously on March
4, 2009 Aa2 Placed under Review for Possible Downgrade
-- Class C Senior Downgraded to Caa1, previously on March 19,
2009 Ba3 Placed under Review for Possible Downgrade
-- Class D Senior Downgraded to Ca, previously on March 19, 2009
Caa1 Placed under Review for Possible Downgrade
-- Class E Senior Downgraded to Ca, previously on March 19, 2009
Caa3 Placed under Review for Possible Downgrade
-- Class V Combination Downgraded to Caa1, previously on March
4, 2009 Baa3 Placed under Review for Possible Downgrade
-- Class W Combination Downgraded to Ba3, previously on March 4,
2009 Aa2 Placed under Review for Possible Downgrade
-- Class X Combination Downgraded to B3, previously on March 4,
2009 Baa3 Placed under Review for Possible Downgrade
-- Class Y Combination Downgraded to Caa3, previously on March
4, 2009 Baa3 Placed under Review for Possible Downgrade
-- Class Z Combination Downgraded to Caa1, previously on March
4, 2009 Baa3 Placed under Review for Possible Downgrade
LARAGAN DEVT'S: Owes EUR750,000 in Levies; Buyers to Lose Deposits
------------------------------------------------------------------
Fiona Gartland at the Irish Times reports that property
development firm Laragan Developments Ltd. owes levies of more
than EUR750,000 to three local authorities.
The Irish Times discloses Laragan owed Roscommon County Council
almost EUR500,000 in development levies. It owed Dun Laoghaire
Rathdown County Council more than EUR200,000 and Leitrim County
Council EUR44,000, the Irish Times states.
According to the Irish Times, the company, which was placed into
examinership by the High Court in March, has debts totaling EUR147
million, including unsecured personal credit from Alan Hanly of
EUR64 million and EUR1.5 million owed to people who put deposits
on some of their Dublin developments.
The Irish Times recalls examiner Paul McCann, of Grant Thornton,
was appointed by the High Court to produce a proposal to deal with
the creditors of Laragan, part of the Hanly Group, so that it can
continue to operate. The Irish Times says preferential creditors
will get 30 per cent of what they are owed, while unsecured
creditors are being offered between 6 per cent and 20 per cent of
their debts. The Irish Times discloses up to 400 unsecured
creditors are owed more than EUR12 million. Under the examiner's
proposal, the company's only secure creditor, Anglo Irish Bank,
which is owed EUR2.3 million, has agreed to continue to wait for
its full debt, the Irish Times notes.
Deposits
The Irish Times says almost 100 homebuyers are to lose their
deposits in Laragan's Dublin developments. The Irish Times
relates the prospective buyers, who paid deposits on apartments in
Santry, north Dublin, and in Carrickmines, south Dublin, were told
at a creditors' meeting on Tuesday that they would get back only 1
per cent of their deposits.
Laragan Developments Ltd. is part of the Hanly Group --
http://www.hanlygroup.com/-- which comprises six autonomous firms
specializing in six different areas of quarrying and construction.
SANDHOUSE HOTEL: Key Executives Take Over Operations
----------------------------------------------------
Oceanfm reports that a management contract has been signed taking
over operations at the Sandhouse Hotel in Rossnowlagh, saving 50
new jobs.
According to the report, Paul Diver and his team, who have been
key executives in the Sandhouse for a number of years, has taken
over the running of the 55-bedroom hotel from Kieran Wallace,
KPMG.
The report recalls the hotel went into voluntary liquidation in
January of this year after being hit by the recession. The hotel,
the report relates, continued in business under direction of the
liquidator, with no job losses. It had been put on the market the
previous September with a price-tag of just over EUR6 million, the
report recounts.
=========
I T A L Y
=========
LOCAT SV: Moody's Downgrades Rating on Class C Notes to 'Ba2'
-------------------------------------------------------------
Moody's Investors Service has taken this rating action on notes
issued by Locat SV S.r.l. (amounts below reflect initial note
balance):
-- Class A2 Series 2006 EUR1,348,000,000 Asset Backed Floating
Rate Notes due 2028, Downgraded to Aa2 from Aaa; previously
on 14 December 2006 Assigned Aaa;
-- Class B Series 2006 EUR152,000,000 Asset Backed Floating Rate
Notes due 2028, Downgraded to A3 from A2; previously on 14
December 2006 Assigned A2;
-- Class C Series 2006 EUR64,000,000 Asset Backed Floating Rate
Notes due 2028, Downgraded to Ba2 from Baa2; previously on 14
December 2006 Assigned Baa2;
The rating action has been prompted by the worse-than-expected
collateral performance. The portfolio has experienced so far
defaults higher than Moody's initially expected. As of March 2009
reporting date, the transaction has reported a cumulative gross
default rate of 2.7% of the total securitized pool (original pool
balance plus replenishments) whereas Moody's initial mean default
assumption was 2.9% of securitized pool balance over the life of
the transaction. The debt service reserve that provides liquidity
to the transaction has not suffered any drawing and currently
stands at its target amount of EUR24.55 million (1.56% of current
outstanding balance).
Moody's has revised its default assumption for the portfolio. The
mean lifetime default assumption is now 6.3% of total securitized
pool balance. In order to derive the revised default assumption
Moody's uses historical delinquency, default and redemption rates
over the life of a transaction. Although all three sub-pools --
auto, equipment and real estate -- exhibit increasing levels of
defaults, the real estate pool and in particular the big-ticket
real estate leases drive the increase in defaults followed by the
equipment pool. The volatility of the default rate was 54% at
closing versus 47% to date. Further, the recovery rate has been
revised downwards to 45% compared to 58% at closing. The revised
mean default as a percentage of original balance expresses Moody's
expectations of future defaults including defaults already
experienced so far. The revised recovery rate reflects the
current recoveries experienced including Moody's recovery rate
expectations for the future.
Moody's also tested the sensitivity of the notes' ratings to
stress scenarios on the mean default rate up to 6.8% of the total
securitized portfolio balance. The sensitivity analysis concluded
that the revised ratings on the notes were not affected by a
change in these assumptions within the specified range. Locat SV
S.r.l. is the fourth securitization originated and serviced by
UniCredit Leasing S.p.A. (A1, on review for possible downgrade, P-
1). Moody's does not expect that a one to two notch downgrade of
UniCredit Leasing S.p.A. should have an immediate impact on the
rating on the notes.
Moody's met the Servicer on the June 17, 2009 and was provided
with an update on their strategy, servicing and IT. As regards
their arrears management, the servicer has implemented a large
task force to focus on the reduction of delinquent positions.
The securitized portfolio includes receivables derived from auto,
equipment and real estate lease contracts (excluding the relative
residual value component of the contracts). This pool includes a
non-revolving big ticket real estate pool with currently 30
contracts. In general, the transaction should benefit from
growing excess spread as the interest component associated with
the residual value is passed on to the SPV. This is due to the
fact that as the principal component amortizes on each lease, the
interest component is always calculated on the remaining principal
including residual value.
As of the March 2009 reporting date, the big tickets real estate
pool represented 15% of the pool, compared to 19.6% at closing,
the real estate pool represented 44% of the pool, compared to
27.4%, the equipment pool 26%, compared to 37.3% and the auto pool
15% compared to 15.7%. The top ten debtors accounted for 7.5%
compared to 7.6% at closing.
Moody's ratings address the expected loss posed to investors by
the legal final maturity of the notes. Moody's ratings address
only the credit risks associated with the transaction. Other non-
credit risks have not been addressed, but may have a significant
effect on yield to investors.
TISCALI SPA: Unveils Terms of Capital Increase Plans
----------------------------------------------------
Francesca Cinelli at Bloomberg News reports that Tiscali SpA has
set the terms of its planned stock stock sale and announced a
share regrouping.
Bloomberg News relates the company on Monday approved a plan to
reduce the number of outstanding shares to 61.6 million from 616.5
million under a one-for-10 regrouping. According to Bloomberg
News, it will sell shares in a stock offering worth as much as
EUR190 million (US$263.9 million) at a price of 1 cent each, or 10
cents after the regrouping.
Bloomberg News says Tiscali may conduct a second capital increase,
which would raise EUR46.5 million, with the same pricing.
Debt
On April 29, 2009, the Troubled Company Reporter-Europe, citing
Telegraph.co.uk, reported that Tiscali, which is seeking to reduce
its EUR500 million (GBP453 million) debt pile, negotiated a stay
of execution from creditors, giving it until this month to sort
out its finances.
Auditor's Doubts
On April 17, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported Tiscali said it disagreed with Ernst &
Young for not issuing an opinion on 2008 accounts and questioning
the viability of its business. Citing Tiscali in a stock-exchange
statement, Bloomberg News disclosed Ernst & Young said it "can't
express an opinion" on 2008 results as it is uncertain the
company's business can continue unless Tiscali signs a debt
renegotiation deal. Bloomberg News recalled in March, Tiscali
halted payments on long-term bank debts. It had about EUR500
million (US$662 million) of long-term bank borrowings at the end
of last year, Bloomberg News said.
About Tiscali
Cagliari, Italy-based Tiscali S.p.A. (BIT:TIS) --
http://www.tiscali.com/-- is an Internet communications company
providing broadband and narrowband access for consumer and
business applications, as well as communications services and
content. The Company's portfolio includes Internet access in the
form of dial-up, broadband, satellite and leased lines, and
hosting services, such as co-location, shared hosting and managed
hosting. Tiscali also offers streaming media, telephony and such
services as virtual private networks (VPN), allowing companies to
communicate with remote branches. Its consumer products and
services include Internet access, voice, media, Internet Protocol
Television (IPTV) and value-added services, such as e-mail, Net
calendar, Net fax, Net phone, mail, instant messaging and Web
hosting. It is operational in Europe through its subsidiaries and
joint ventures. As of June 30, 2008, Tiscali had approximately
3.2 million active users in Italy and the United Kingdom.
===================
K A Z A K H S T A N
===================
ARYS LLP: Creditors Must File Claims by July 3
----------------------------------------------
Creditors of LLP Corporation Arys have until July 3, 2009 to
submit proofs of claim to:
Masanchi Str. 98b-42
Almaty
Kazakhstan
Tel: 8 777 214 52-28
The Specialized Inter-Regional Economic Court of Almaty commenced
bankruptcy proceedings against the company on March 30, 2009,
after finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of Almaty
Baizakov Str. 273b
Almaty
Kazakhstan
DINAIL COMPANY: Creditors Must File Claims by July 3
----------------------------------------------------
Creditors of LLP Dinail Company have until July 3, 2009, to submit
proofs of claim to:
Aimanov Str. 194
Almaty
Kazakhstan
Tel: 8 701 713 23-83
The Specialized Inter-Regional Economic Court of Almaty commenced
bankruptcy proceedings against the company on October 22, 2008,
after finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of Almaty
Baizakov Str. 273b
Almaty
Kazakhstan
OTRASLEVAYA LABORATORIYA: Creditors Must File Claims by July 3
--------------------------------------------------------------
Creditors of LLP Otraslevaya Laboratoriya Transportnyh Lent have
until July 3, 2009, to submit proofs of claim to:
The Specialized Inter-Regional
Economic Court of Karaganda
Alalykin Str. 9
Karaganda
Kazakhstan
The Specialized Inter-Regional Economic Court of Karaganda
commenced bankruptcy proceedings against the company on
April 10, 2009.
SHARLOTA LUX: Creditors Must File Claims by July 3
--------------------------------------------------
Creditors of LLP Firm Sharlota Lux have until July 3, 2009, to
submit proofs of claim to:
Dostyk Ave. 107-16
050051 Almaty
Kazakhstan
Tel: 8 777296 30-34
The Specialized Inter-Regional Economic Court of Almaty commenced
bankruptcy proceedings against the company on April 1, 2009, after
finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of Almaty
Baizakov Str. 273b
Almaty
Kazakhstan
STAN TAU: Creditors Must File Claims by July 3
----------------------------------------------
Creditors of LLP Firm Stan Tau have until July 3, 2009, to submit
proofs of claim to:
Masanchi Str. 98b-42
Almaty
Kazakhstan
Tel: 8 777 355 34-23
The Specialized Inter-Regional Economic Court of Almaty commenced
bankruptcy proceedings against the company on September 26, 2008,
after finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of Almaty
Baizakov Str. 273b
Almaty
Kazakhstan
===========
R U S S I A
===========
PITKYARANTA-LES LLC: Creditors Must File Claims by July 5
---------------------------------------------------------
Creditors of LLC Pitkyaranta-Les (TIN 1005080940, PSRN
1041001750481) (Forestry) have until July 5, 2009, to submit
proofs of claims to:
Ye.Dzhalilova
Temporary Insolvency Manager
Dimitrova Str. 5-137
Syktyvkar
167023 Komi
Russia
Tel:(8122) 229635
(8122) 311733
The Arbitration Court of Karelia will convene on Aug. 11, 2009, to
hear bankruptcy supervision procedure on the company. The case is
docketed under Case No. ?26–925/2009.
The Debtor can be reached at:
LLC Pitkyaranta-Les
Sadovaya Str. 22
Pitkyaranta
186810 Karelia
Russia
SARAPULSKIY TANNERY: Court Namese Temporary Insolvency Manager
--------------------------------------------------------------
The Arbitration Court of Udmurtia appointed A.Ostanin as Temporary
insolvency manager for LLC Sarapulskiy Tannery (TIN 1834031657).
The case is docketed under Case No. ?71–4355/2009-G15. He can be
reached at:
50 let Oktyabrya Sq.2
426034 Izhevsk
Russia
The Debtor can be reached at:
LLC Sarapulskiy Tannery
Truda Str. 61A
Sarapul
Udmurtia
Russia
SHCHIPITSINSKYA WOOD-PROCESSING: Court Names Insolvency Manager
---------------------------------------------------------------
The Arbitration Court of Kirovskaya appointed L.Tomilova as
insolvency manager for LLC Shchipitsinskaya Wood-Processing
Factory. The case is docketed under Case No. ?28–11768/2008–
275/24. He can be reached at:
Ilyinskaya Str. 69
Nizhny Novgorod
Russia
The Debtor can be reached at:
LLC Shchipitsinskaya Wood-Processing Factory
Zavoskaya Str. 8
Sosnovka
Vyatskopolyanskiy
612994 Kirovskaya
Russia
URAL-TALC CJSC: Court Names A. Boltrushevich as Insolvency Manager
------------------------------------------------------------------
The Arbitration Court of Chelyabinskaya appointed A.Boltrushevich
as Insolvency Manager for CJSC Ural-Talc (TIN 7415039520, RVC
741501001). The case is docketed under Case No. ?76–26830/2008–
55-196. He can be reached at:
Lenina prospect 51-19
Berezniki
618400 Permskiy
Russia
The Debtor can be reached at:
CJSC Ural-Talc
Truda Str. 41a
Miass
456317 Chelyabinskaya
Russia
VOLGOVYATSKAYA METAL: Under External Mgt. Bankruptcy Procedure
--------------------------------------------------------------
The Arbitration Court of Nizhegorodskaya has commenced external
management bankruptcy procedure on LLC Volgovyatskaya Metal-
Processing Company. The Case is docketed under No. ?43–
28888/2008–27–199.
The External Insolvency Manager is:
A. Ivannikov
Oktyabrskaya Sq. 1
603005 Nizhny Novgorod
Russia
The Debtor can be reached at:
LLC Volgovyatskaya Metal-Processing Company
Svetlogorskiy pereulok 3
603057 Nizhny Novgorod
Russia
* Fitch Assigns 'B+' Currency Ratings on Russian City of Kazan
--------------------------------------------------------------
Fitch Ratings has assigned the Russian City of Kazan Long-term
foreign and local currency ratings of 'B+', a Short-term foreign
currency rating of 'B' and a National Long-term rating of
'A(rus)'. The Outlooks for the Long-term ratings are Stable. The
rating action affects RUB2.3 billion outstanding domestic bonds
issued by the city.
The ratings reflect expected increasing pressure on Kazan's
budgetary performance in 2009, the short-term maturity profile of
direct debt and increasing costs of borrowing. However, the
ratings also reflect the city's well-diversified local economy,
moderate budget rigidity and potential support from Republic of
Tatarstan. The Stable Outlook reflects Fitch's expectation that
the city will successfully refinance maturing debt and control its
operating expenditure to mitigate operating revenue decline.
The city's debt burden is manageable at 42% of current revenue.
Its structure is dominated by bank loans and issued bonds, of
which 93% mature in 2009, causing a significant refinancing burden
for the city. The city is planning to refinance a RUB2.3 billion
bond maturing in August 2009 by issuing a new RUB2 billion
domestic bond. The city also has a RUB3.2 billion credit line in
Sberbank-Savings Bank of the Russian Federation
('BBB'/'F3'/Negative), of which RUB2.4 billion is available (on
June 22, 2009) to cover refinancing needs. However, given the
current high cost of borrowing, refinancing will increase interest
payments and add pressure to operating performance in 2009 and
2010.
The local economy is well-diversified and represented by a large-
scale industrial sector, with significant contributions from the
trade and services sectors. This helped underpin the city's sound
budgetary performance, with an average operating margin of 16% in
2004-2007. Last year, the economic downturn and financial crisis
caused the operating balance to deteriorate to 9% of operating
revenue from 13% in 2007. Fitch expects further deterioration in
the city's budgetary performance in 2009 due to operating revenue
decline; however, the operating balance is expected to remain at
6%-8% of operating revenue. Due to a relatively high level of
capital expenditure (30% of total expenditure in 2008), the city
has flexibility to scale back investments to mitigate revenue
decline, particularly as the city has invested heavily during the
last five years in infrastructure.
The city enjoys the status as the capital of the Tatarstan
Republic ('BBB-'/'F3'/Stable) - one of the most developed Russian
regions. The city received large capital transfers from the
Republic of Tatarstan and Russian Federation budgets in mid-2000s
and is likely to continue receiving significant support,
especially for investment financing.
The City of Kazan is located in the central area of European
Russia. The population of the city totaled 1.12 million in 2008.
Fitch's National ratings provide a relative measure of
creditworthiness for rated entities in countries with relatively
low international sovereign ratings and where there is demand for
such ratings. The best risk within a country is rated 'AAA' and
other credits are rated only relative to this risk. National
ratings are designed for use mainly by local investors in local
markets and are signified by the addition of an identifier for the
country concerned, such as 'AAA(rus)' for National ratings in
Russia. Specific letter grades are not therefore internationally
comparable.
=====================
S W I T Z E R L A N D
=====================
A. FRICKER & CO: Creditors Have Until June 29 to File Claims
------------------------------------------------------------
Creditors of A. Fricker & Co. AG are requested to file their
proofs of claim by June 29, 2009, to:
Arthur Fricker-Fuchs
Luegetenstrasse 1
5612 Villmergen
Switzerland
The company is currently undergoing liquidation in Villmergen.
The decision about liquidation was accepted at a general meeting
held on March 27, 2009.
ATEP AG: Creditors Must File Claims by June 29
----------------------------------------------
Creditors of Atep AG are requested to file their proofs of claim
by June 29, 2009, to:
Albert Blattmann
Bahnhofstrasse 21
6304 Zug
Switzerland
The company is currently undergoing liquidation in Zug. The
decision about liquidation was accepted at an extraordinary
general meeting held on April 22, 2009.
GLOB TEXTILE-IMPEX: Creditors Have Until June 29 to File Claims
---------------------------------------------------------------
Creditors of Glob Textile-Impex AG are requested to file their
proofs of claim by June 29, 2009, to:
Markus von Allmen
Chamerstrasse 44
6331 Huenenberg
Switzerland
The company is currently undergoing liquidation in Huenenberg.
The decision about liquidation was accepted at an extraordinary
general meeting held on April 29, 2009.
VISION ENGINEERING: Claims Filing Deadline Is July 21
-----------------------------------------------------
Creditors of Vision Engineering GmbH are requested to file their
proofs of claim by July 21, 2009, to:
Vision Engineering GmbH
Gallusstrasse 51
4612 Wangen b. Olten
Switzerland
The company is currently undergoing liquidation in Wangen b.
Olten. The decision about liquidation was accepted at a
shareholders' meeting held on Feb. 27, 2009.
ROTHFIELDS GMBH: Creditors Must File Claims by July 31
------------------------------------------------------
Creditors of Rothfields GmbH are requested to file their proofs of
claim by July 31, 2009, to:
Rothfields GmbH
Oberdorfstrasse 12
4458 Eptingen
Switzerland
The company is currently undergoing liquidation in Eptingen. The
decision about liquidation was accepted at an extraordinary
shareholdes' meeting held on April 15, 2009.
=============
U K R A I N E
=============
AGRICULTURAL INDUSTRIAL: Creditors Must File Claims by June 28
--------------------------------------------------------------
Creditors of LLC Agricultural Industrial Service (code EDRPOU
32895564) have until June 28, 2009, to submit proofs of claim to:
State tax inspection in Darnitsa district of Kiev
Insolvency Manager
O. Koshyts Str. 3
02660 Kiev
Ukraine
The Economic Court of Kiev commenced bankruptcy proceedings
against the company on Jan. 23, 2009. The case is docketed under
Case No. 50/18.
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 Agricultural Industrial Service
Zdolbunovskaya Str. 7-A
02081 Kiev
Ukraine
ALEX LLC: Creditors Must File Claims by June 28
-----------------------------------------------
Creditors of LLC Trading and Industrial Company Alex (code EDRPOU
32487818) have until June 28, 2009, to submit proofs of claim to:
State tax inspection in Darnitsa district of Kiev
Insolvency Manager
O. Koshyts Str. 3
02660 Kiev
Ukraine
The Economic Court of Kiev commenced bankruptcy proceedings
against the company on Feb. 27, 2009. The case is docketed under
Case No. 50/81.
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 Trading and Industrial Company Alex
Zdolbunovskaya Str. 7-A
02081 Kiev
Ukraine
NAVIGATOR TRANS: Creditors Must File Claims by June 28
------------------------------------------------------
Creditors of LLC Navigator Trans Group (code EDRPOU 32912584) have
until June 28, 2009, to submit proofs of claim to:
State tax inspection in Darnitsa district of Kiev
Insolvency Manager
O. Koshyts Str. 3
02660 Kiev
Ukraine
The Economic Court of Kiev commenced bankruptcy proceedings
against the company on Jan. 23, 2009. The case is docketed under
Case No. 50/20.
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 Navigator Trans Group
Yalta Str. 5-B
02099 Kiev
Ukraine
POLUEKT LLC: Creditors Must File Claims by June 28
--------------------------------------------------
Creditors of LLC Poluekt (code EDRPOU 32488303) have until
June 28, 2009, to submit proofs of claim to:
State tax inspection in Darnitsa district of Kiev
Insolvency Manager
O. Koshyts Str. 3
02660 Kiev
Ukraine
The Economic Court of Kiev commenced bankruptcy proceedings
against the company on Jan. 23, 2009. The case is docketed under
Case No. 50/16.
The Court is located at:
The Economic Court of Kiev
B. Hmelnitskiy street 44-b
01030 Kiev
Ukraine
The Debtor can be reached at:
LLC Poluekt
Yalta Str. 5-B
02099 Kiev
Ukraine
T.A.I.S LLC: Creditors Must File Claims by June 28
--------------------------------------------------
Creditors of LLC T.A.I.S (code EDRPOU 16293211) have until
June 28, 2009, to submit proofs of claim to:
A. Neverov
Insolvency Manager
Office 178
N. Uzviy Str. 7
04108 Kiev
Ukraine
The Economic Court of Kiev commenced bankruptcy proceedings
against the company on Feb. 16, 2009. The case is docketed under
Case No. 50/42.
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 T.A.I.S
Garmash Str. 8
03067 Kiev
Ukraine
UKRAINIAN TREACLE: Court Starts Bankruptcy Supervision Procedure
----------------------------------------------------------------
The Economic Court of Kiev commenced bankruptcy supervision
procedure on LLC Ukrainian Treacle (code EDRPOU 32104495).
The Insolvency Manager is:
A. Snezhko
40 years of Victory Ave. 120, b. 1
03127 Kiev
Ukraine
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 Treacle
40 years of Victory Ave. 120, b. 1
03127 Kiev
Ukraine
===========================
U N I T E D K I N G D O M
===========================
BUSS MURTON: Completes Pre-Packed Administration; Exits CVA
-----------------------------------------------------------
Katy Dowell at The Laywer reports that Turnbridge Wells-based law
firm Buss Murton has completed a pre-packed administration.
According to the report, the company, which has been trading under
a Company Voluntary Arrangement (CVA) since November, faced near-
collapse after ambitious growth plans laid down by a previous
management team left it saddled with debts of more than GBP3
million. The firm was also hit by the recession, the report
states citing senior partner Alan Williams.
"The increasingly tough trading conditions meant the firm was
facing collapse with the loss of jobs and creating serious issues
for our existing clients," the report quoted Mr. Williams as
saying.
The report relates the CVA scheme had enabled the firm to
restructure its debt and the pre-packed administration was
followed by an immediate management buy-in.
The report discloses chief executive Stuart Burnop, a former
insolvency accountant, has been made an equity partner and will
lead the firm, now known as Buss Murton Law, along with Mr.
Williams, who will remain as senior partner. The new firm, the
report says, expects to turn over more than GBP3 million in the
first financial year under its new structure and will have six
partners, 19 lawyers and a total staff of 51.
Buss Murton -- http://www.bussmurton.co.uk/-- provides legal
advice to both individuals and business clients. It has three
Kent offices, in Tunbridge Wells and Cranbrook, and most recently
in Dartford (having acquired the business and assets of Baily and
Goff).
CHESTER ASSET: Fitch Cuts Ratings on Class C Notes to 'BB'
----------------------------------------------------------
Fitch Ratings has taken various rating actions on the UK credit
card receivables backed notes issued under the Chester Asset
Receivables Dealings II master trusts. The transaction is a
securitization of UK credit card receivables originated by MBNA
Europe Bank Limited.
Fitch has downgraded the class C notes to 'BB' from 'BBB-' and
maintained the Negative Outlook. The class B notes have been
affirmed at 'A+' and the Outlook has been changed to Negative from
Stable. The class A notes have been affirmed at 'AAA' with a
Stable Outlook.
Fitch's latest rating action is driven primarily by further
deterioration in the delinquency and charge-off performance in
recent months. Since the previous rating action in December 2008,
60 to 180 day delinquencies have continued to increase, having
reached a new historical high in each of the last nine months,
rising to 7.2% in May 2009 from 5.1% in October 2008. Charge-offs
have also increased sharply, to 11.7% in May 2009, from 6.9% in
October 2008. As a result, the ability of the notes to withstand
additional deterioration has therefore been reduced; particularly
with respect to the class C notes.
The monthly payment rate reported a smaller decline, falling to
13.1% in May 2009, from 13.7% in October 2008. Yield and excess
spread have remained broadly stable, with low Libor levels having
helped to offset the impact of increased charge-offs.
Fitch also remains concerned with the debt management program
operated by MBNA for the purpose of trust reporting, which the
agency expects will have a further incremental impact on charge-
offs for the trust going forward. MBNA will continue to apply a
debt management scheme for accounts that agree to pay amounts
below the original contractual minimum.
As highlighted previously, credit enhancement for the class C
notes is provided by an excess spread trapping account which
accumulates excess spread as it falls below pre-determined
trapping triggers. Fitch continues to view these mechanisms
susceptible to rapid falls in excess spread, which the agency
views as more likely at present.
In its analysis, Fitch considered various scenarios for future
performance and their possible impact on the ratings of the notes,
taking into consideration both the deteriorating performance of
the trust and the worsening economic environment facing
cardholders in the UK, and as a result of this analysis has taken
these rating actions:
Series 2001-B
-- Class A GBP220m notes affirmed at 'AAA'; Outlook Stable
-- Class B GBP12.5m notes affirmed at 'A+'; Outlook revised to
Negative from Stable
-- Class C GBP17.5m notes downgraded to 'BB' from 'BBB-';
Outlook Negative
Series 2003-B
-- Class A GBP220m notes affirmed at 'AAA'; Outlook Stable
-- Class B GBP12.5m notes affirmed at 'A+'; Outlook revised to
Negative from Stable
-- Class C GBP17.5m notes downgraded to 'BB' from 'BBB-';
Outlook Negative
Series 2003-C
-- Class A GBP439.5m notes affirmed at 'AAA'; Outlook Stable
-- Class B GBP25.1m notes affirmed at 'A+'; Outlook revised to
Negative from Stable
-- Class C GBP35m notes downgraded to 'BB' from 'BBB-'; Outlook
Negative
Series 2004-1
-- Class A GBP440m notes affirmed at 'AAA'; Outlook Stable
-- Class B GBP25m notes affirmed at 'A+'; Outlook revised to
Negative from Stable
-- Class C GBP35m notes downgraded to 'BB' from 'BBB-'; Outlook
Negative
De-linked Series
-- 2004-A1 GBP300m notes affirmed at 'AAA'; Outlook Stable
-- 2004-B1 GBP83.5m notes affirmed at 'A+'; Outlook revised to
Negative from Stable
-- 2004-C1 GBP116.9m notes downgraded to 'BB' from 'BBB-';
Outlook Negative
-- 2004-A2 GBP250m notes affirmed at 'AAA'; Outlook Stable
-- 2006-A1 GBP250m notes affirmed at 'AAA'; Outlook Stable
-- 2006-B1 GBP50 m notes affirmed at 'A+'; Outlook revised to
Negative from Stable
-- 2006-C1 GBP70m notes downgraded to 'BB' from 'BBB-'; Outlook
Negative
-- 2008-A1 GBP261.9m notes affirmed at 'AAA'; Outlook Stable
-- 2008-A2 GBP300m notes affirmed at 'AAA'; Outlook Stable
CHESTER ASSET: Fitch Lowers Ratings on Class C Notes to 'BB'
------------------------------------------------------------
Fitch Ratings has taken various rating actions on the UK credit
card receivables backed notes issued under the Chester Asset
Receivables Dealings master trusts. The transaction is a
securitization of UK credit card receivables originated by MBNA
Europe Bank Limited.
Fitch has downgraded the class C notes to 'BB' from 'BBB-' and
maintained the Negative Outlook. The class B notes have been
affirmed at 'A+' and the Outlook has been changed to Negative from
Stable. The class A notes have been affirmed at 'AAA' with a
Stable Outlook.
Fitch's latest rating action is driven primarily by further
deterioration in the delinquency and charge-off performance in
recent months. Since the previous rating action in December 2008,
60 to 180 day delinquencies have continued to increase, having
reached a new historical high in each of the last 10 months,
rising to 6.5% in May 2009 from 5% in October 2008. Charge-offs
have also increased sharply, to 10.8% in May 2009, from 6.4% in
October 2008. As a result, the ability of the notes to withstand
additional deterioration has therefore been reduced; particularly
with respect to the class C notes.
The monthly payment rate reported a smaller decline, falling to
11.3% in May 2009, from 11.8% in October 2008. Yield and excess
spread have remained broadly stable, with low Libor levels having
helped to offset the impact of increased charge-offs.
Fitch also remains concerned with the debt management program
operated by MBNA for the purpose of trust reporting, which the
agency expects will have a further incremental impact on charge-
offs for the trust going forward. MBNA will continue to apply a
debt management scheme for accounts that agree to pay amounts
below the original contractual minimum.
As highlighted previously, credit enhancement for the class C
notes is provided by an excess spread trapping account which
accumulates excess spread as it falls below pre-determined
trapping triggers. Fitch continues to view these mechanisms
susceptible to rapid falls in excess spread, which the agency
views as more likely at present.
In its analysis, Fitch considered various scenarios for future
performance and their possible impact on the ratings of the notes,
taking into consideration both the deteriorating performance of
the trust and the worsening economic environment facing
cardholders in the UK, and as a result of this analysis has taken
these rating actions:
Series 11
-- Class A GBP438.3 million notes affirmed at 'AAA'; Outlook
Stable
-- Class B GBP20 million notes affirmed at 'A+'; Outlook revised
to Negative from Stable
-- Class C GBP40 million notes downgraded to 'BB' from 'BBB-';
Outlook Negative
Series 12
-- Class A GBP264 million notes affirmed at 'AAA'; Outlook
Stable
-- Class B GBP12 million notes affirmed at 'A+'; Outlook revised
to Negative from Stable
-- Class C GBP24 million notes downgraded to 'BB' from 'BBB-';
Outlook Negative
CORSAIR NO 4: Moody's Cuts Rating on Series 11 Note to 'B1'
-----------------------------------------------------------
Moody's Investors Service has downgraded its rating of Series 11
note issued by Corsair (Jersey) No 4 Limited.
The transaction is a static synthetic CDO referencing a portfolio
of US consumer ABS securities (80% of the total pool), and
corporate entities (20% of the total pool), the majority of which
are banking and insurance companies. The US consumer ABS
securities pool comprises securities currently rated Aa1 or above
(after application of stresses for ratings reviews). In this
transaction, in case of a credit event of an ABS security, the
final price is fixed and set at 99%. This series has a thickness
of 0.3% and a remaining subordination of 0.55%.
The rating action is a response to general corporate deterioration
in the underlying portfolio, which includes but is not limited to
exposure to Syncora Guarantee Inc, whose Insurance Financial
Strength Rating was downgraded to Ca on March 9, 2009. The
transaction also has a significant exposure to other corporate
names which continue to deteriorate in the current economic
environment. This will weigh on the ratings of the tranches in
this transaction.
Moody's initially analyzed and continues to monitor this
transaction using primarily the methodology and its supplements
for corporate synthetic CDOs and ABS CDOs as described in Moody's
Special Reports and press releases below:
-- Moody's Approach To Rating Corporate Collateralized Synthetic
Obligations (December 2008)
-- Moody's updates key assumptions for rating corporate
synthetic CDOs (January 2009)
-- Moody's Approach to Rating SF CDOs, March 2009
The rating actions are:
Corsair (Jersey) No 4 Limited:
(1) Series 11 US$100,000,000 Floating Rate Secured Portfolio
Credit-Linked Notes due 2017
-- Current Rating: B1
-- Prior Rating: Ba1, on review for possible downgrade
-- Prior Rating Date: 9 June 2009, Ba1 placed under review for
possible downgrade
DEBENHAMS PLC: To Use Funds Raised in Shares Placing to Cut Debt
----------------------------------------------------------------
Samantha Pearson at the Financial Times reports that Debenhams
plc's shareholders only took up 30.3 per cent of the shares
offered in its GBP323 million (EUR378 million) fundraising.
The FT says Debenhams placed 242.4m shares in an open offer, on
top of 161.6m shares in a placing, in an effort to cut its debt
burden of almost GBP1 billion. Debenhams, as cited by the FT,
said GBP50 million of the raised funds would go to a partial pre-
payment of a GBP150 million term loan amortization payment, due
next May.
According to BreakingNews.ie, Debenhams has said the fundraising
was motivated by investors' fears over its level of indebtedness
rather than by any concerns over the performance of the chain.
Debenhams plc -- http://www.debenhamsplc.com/-- is a department
store with a mix of own brands (including Designers at Debenhams),
international brands and concessions. The Company, along with its
subsidiaries, is engaged in the sale of fashion clothing and
accessories, cosmetics and products for use in the home. It
trades from department stores and small store formats in the
United Kingdom and the Republic of Ireland, on the Internet and
has international franchise stores. It has 140 stores in the
United Kingdom and the Republic of Ireland, and 10 smaller Desire
by Debenhams stores. In addition to its directly owned stores,
Debenhams has a further 44 international franchise stores in 15
countries. It also sells its products through its Internet site.
DRAX GROUP: Places New Shares to Avoid Further Credit Rating Cut
----------------------------------------------------------------
Ed Crooks at the Financial Times reports that Drax Group plc has
placed new shares and plans to refinance its remaining debt to
avoid a further credit-rating downgrade.
The FT discloses Drax raised GBP108 million (US$178 million) in a
shares placing. According to the FT, the funds raised in the
placing will be used to reduce Drax's debt, which was GBP370
million before the share issue. The company, the FT says, plans
to pay off all its debts by 2012.
Tony Quinlan, Drax's finance director, as cited by the FT, said
the company plans to refinance its remaining debts by the end of
the year. Mr. Quinlan said the company plans to reduce its term
debt to zero, the FT states.
The FT recalls last month Standard & Poor's reduced Drax to "junk"
status, cutting it from BBB-, the lowest investment grade, to BB+
as it was it was concerned about the squeeze on margins caused by
the steep fall in wholesale electricity prices since last summer.
The company's senior secured debt retained an investment grade,
marked down by S&P from BBB to BBB-, the FT recounts. But the
agency described the outlook as "negative", meaning it was
considering a further cut, the FT notes.
The FT relates Mr. Quinlan said a drop to sub-investment grade
would raise the possibility Drax's trading partners could demand
collateral for sales contracts. The FT says according to
Mr. Quinlan that could put a lot of strain on the company's
balance sheet.
Drax Group plc -- http://www.draxgroup.plc.uk/-- is a United
Kingdom-based holding company of the Drax group of companies,
which is principally engaged in the power generation business
operating in the commodity markets of power, coal, biomass, and
carbon. The Company purchases coal, biomass, and carbon
allowances from both United Kingdom and international suppliers.
Drax Group plc generates around 7% of the United Kingdom's
electricity and trade power in the electricity wholesale market of
Great Britain. Some of the Company's wholly owned subsidiaries
include Drax Finance Limited, Drax Group Limited, Drax
Intermediate Holdings Limited, Drax Power Limited, and Drax
Investments Limited. The principal activities of the subsidiaries
are the generation and sale of electricity at the Drax Power
Station, Selby, North Yorkshire, and the sale of by-products of
the electricity generation process.
DUNEDIN PROPERTY: "Industrious" Portfolio Up for Sale
-----------------------------------------------------
Crain's Manchester Business reports that according to King sturge,
Dunedin Property Industrial Fund's "Industrious" portfolio will be
put up for auction later this month.
The report recalls, Dunedin, which was placed into administration
with Ernst & Young last September along with its parent company,
put Industrious up for sale for GBP700 million in the summer of
2007 but failed to find a buyer. The firm, the report relates,
was weighed down by debts of GBP585 million and collapsed after it
was unable to negotiate a short-term cash injection from Royal
Bank of Scotland.
According to the report, the portfolio has more than halved in
value in two years. The report, citing King Sturge, discloses the
whole portfolio of 31 properties, among them a swathe of Greater
Manchester industrial estates, is now worth around GBP300 million.
It was valued at GBP521 million in June 2008, the report notes.
The report states the freehold of the properties go under the
hammer in London on July 16. Simon Bailey, a member of King
Sturge's auction team in the capital, as cited in the report, said
the initial response to the portfolio had been good but no single
buyer had stepped forward with an offer.
EGRET FUNDING: S&P Downgrades Ratings on All Classes of Notes
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
all classes of notes issued by Egret Funding CLO I PLC.
In S&P's opinion, the credit quality of the assets in the Egret
Funding CLO I's portfolio has deteriorated and as a result, the
portfolio has experienced negative rating migration, with assets
rated 'CCC+' and below, including defaulted assets, now accounting
for 10.5%. This is based on S&P's analysis (with ratings as of
June 18) of the May 29 collateral file provided by the trustee.
The negative migration has led to an increase in the scenario
default rates for all of the rated notes. In light of the
increase in the SDRs, S&P has undertaken further cash flow
analysis, which has indicated that the current credit enhancement
is, in S&P's opinion, insufficient to support S&P's current
ratings on the notes. S&P has therefore lowered the ratings to a
level that S&P believes is commensurate with the current credit
enhancement available in the transaction. Egret Funding CLO I
closed on Dec. 7, 2006, and is a managed cash flow transaction
collateralized by a pool comprising corporate loans.
LIVERPOOL FOOTBALL: Nears Debt Refinancing Deal With RBS
--------------------------------------------------------
BBC News reports that Liverpool Football Club is close to
renegotiating its debt with the Royal Bank of Scotland.
The club, BBC News discloses, owes GBP350 million to RBS and
Wachovia.
According to BBC News, RBS has told club owners Tom Hicks and
George Gillett the debt, due to be repaid in July, will be
refinanced. Citing BBC business editor Robert Peston, BBC News
says RBS will insist on significant payments in the subsequent six
months. BBC News notes the other bank owed money, Wachovia, has
yet to make any announcement.
Breathing Space
David Prentice at Liverpool Echo reports that Mr. Gillett agreed
to sell his Canadian ice hockey franchise Montreal Canadiens to
the Molson family for GBP330 million. Liverpool Echo says the the
deal gives Mr. Gillett some financial breathing space ahead of
Liverpool's refinancing deadline in July. Mr. Gillett, Liverpool
Echo discloses, will cut his ties entirely with the Canadiens –-
incuding his 80 per cent stake in the team, the Bell Centre arena,
and the Gillett Entertainment Group. The deal, Liverpool Echo
noted, has yet to be approved by the NHL's board of governors, but
although it could take up to six weeks for the sale to be
ratified, it is not expected to be blocked.
Going Concern Doubt
Liverpool Echo recalls ealier this month Liverpool's accountants,
KPMG, warned of "significant doubt on the group's and parent
company's [Kop Football Holdings Ltd] ability to continue as a
going concern" without an extension to the GBP350 million loan.
BBC News states latest accounts show Kop Holdings lost GBP42.6
million in the year to August 2008. BBC News notes interest
payments on loans accounted for GBP36.5 million of Kop's losses.
Liverpool Football Club and Athletic Grounds --
http://www.liverpoolfc.tv–- owns and operates one of the more
popular and most successful franchises in the UK Premier League.
Known as the The Reds, Liverpool has won 18 first division titles
and seven FA Cups since it was founded by John Houlding in 1892.
In addition to the football club, the company owns and operates
Anfield Stadium, Liverpool's home ground. The company generates
revenue primarily through sponsorships, broadcasting fees, and
ticket sales. The company was acquired by US businessmen George
Gillett and Tom Hicks in 2007.
MONEY PORTAL: Completes Pre-Packaged Administration Sale
--------------------------------------------------------
Maryrose Fison at citywire.co.uk reports that The Money Portal on
Monday completed its pre-packaged administration sale to Honister
Capital, a company controlled by Peter Simon.
citywire.co.uk relates, TMP's main assets were immediately sold
on to Honister after the company declared in administration by
Ernst & Young. According to citywire.co.uk , Burns Anderson,
Sage, Willis Owen and the principle assets of Bates Investment
Services have been acquired by Honister.
citywire.co.uk says the newly formed business, Honister Capital,
is debt free but shareholders, including Mr. Simon, may not see
any return on their investments because HBOS was TMP's prime
secured lender. citywire.co.uk notes it is not clear how much
HBOS, TMP's bank, will recover of its GBP32 million loans.
citywire.co.uk recalls problems for TMP first came to the fore
after the Serious Fraud Office and Pensions Regulator launched an
investigation into potential fraud at TMP's wholly owned
subsidiary the Nottinghamshire-based pension trustee GP Noble
Trustees, last August. The subsidiary announced it would cease
trading in April 2009 following its suspension, the report
recounts.
Debts
Leah Milner at Money Marketing reports Honister confirmed that
TMP's debts were in the region of GBP55 million when it entered
administration on June 17 as investors backing the firm were
issued with convertible preference shares.
Money Portal -- http://www.moneyportal.com/-- is one of the
largest Independent Financial Advisers in the UK.
SETANTA SPORTS: Goes Into Administration
----------------------------------------
Tom Freke at Reuters reports that Setanta Sports has gone into
administration after attempts to secure additional financing
failed.
Reuters relates Setanta Sports, appointed Deloitte as
administrators on Tuesday. Reuters notes Deloitte said Setanta
International and Setanta Ireland, which have around 200,000
subscribers, are not affected by the appointments and will
continue trading.
"After a huge effort by the Setanta board, management team and its
backers, it has not been possible to save the GB business, which
will be wound down in due course," Reuters quoted Neville Khan of
Deloitte as saying.
According to Reuters, Deloitte said Setanta will wind down its
British operations and its British output will go off air shortly,
leading to the loss of about 200 jobs, out of a total of 420.
Reuters discloses Deloitte said in a conference call around 950
jobs at third-party call centers contracted by Setanta are likely
to be affected. Citing Deloitte, Reuters discloses subscriptions
in the UK will stop being collected immediately.
Reuters recalls the English Premier League terminated its live
match contract with Setanta on Friday after the company failed to
meet its payments. The League then awarded the lucrative rights
to Disney ESPN (DIS.N) on Monday, Reuters recounts.
As reported in the Troubled Company Reporter-Europe on June 9,
2009, The Sunday Times said Setanta which has 1.2 million
customers, got into trouble when it won the rights to screen only
23 Premier League fixtures per season from 2010, raising doubts
over its future viability.
Setanta Sports -- http://www.setanta.com/-- is an international
sports broadcaster with operations in Great Britain, Ireland,
Luxembourg, USA, Canada and Australia. It owns and operates
premium sports TV channels that are made available on a
subscription basis to residential and commercial customers through
satellite, cable, digital terrestrial, broadband and mobile
distribution.
WEST BROMWICH: Fitch Affirms Rating on Lower Tier 2 Notes at 'C'
----------------------------------------------------------------
Fitch Ratings has downgraded Newcastle Building Society's and
Skipton Building Society's Long-term Issuer Default Ratings and
senior unsecured debt ratings. Fitch has simultaneously affirmed
the IDRs of nine other UK-based building societies, but downgraded
their senior unsecured debt ratings. As a result, the societies'
senior unsecured debt is now rated at the same level as their
IDRs. The agency has also downgraded Leeds Building Society's and
NBS's Individual Ratings.
The agency has also placed the lower tier 2 debt of the Chelsea
Building Society and the lower tier 2 debt and permanent interest
bearing shares of the Principality Building Society on Rating
Watch Negative and downgraded the lower tier 2 debt of NBS. A
full list of rating actions is provided at the end of this
comment. Fitch plans to issue a separate comment addressing the
covered bonds issued by the societies.
"Fitch's concerns continue to be concentrated on higher-risk
lending by societies, which includes buy-to-let, self-cert,
adverse, purchased loans and commercial mortgages," said Matthew
Taylor, Senior Director in Fitch's Financial Institutions team.
"Problems with commercial loans could pose meaningful challenges,
given that some societies have large exposures to individual
names. At the same time, higher funding costs are eroding
revenues, and reducing the cushion available to absorb larger loan
impairment charges."
The rating action on the societies' senior debt reflects a change
in Fitch's assessment of the potential recoveries that would be
available to senior debt holders in the event of a society being
wound up. In a winding-up, senior debt ranks ahead of retail
member deposits which, by law, must compose at least half of a
society's funding. As a result, senior creditors receive
substantial protection by ranking ahead of these depositors.
Fitch has previously rated senior debt one notch above the IDR
based on this protection. However, intervention by the UK
authorities in the case of the Dunfermline Building Society, where
member deposits were transferred to another society, undermines
the case for continuing to rate senior debt one notch above the
IDR, especially as the Banking Act 2009 expressly allows for such
transfers. In any future cases of intervention by the authorities
the same approach of transferring member deposits to another
credit institution could be taken. The agency still expects a
high degree of protection for senior debt, but no longer believes
that any society's senior debt rating should be stronger than the
IDR.
The affirmation of Leeds's Long-term and Short-term IDRs with a
Stable Outlook reflects the Society's good earnings capacity,
excellent cost efficiency and strong capital position. The
downgrade of Leeds's Individual rating mirrors the increased risk
stemming from its commercial mortgage portfolio which has seen
some deterioration. The agency is concerned about a small number
of larger syndicated and partly subordinated commercial investment
loans. Despite conservative provisioning, the society's
profitability would be reduced by any additional impairment
charges relating to the relative sizable exposures.
The downgrade of NBS' Long- and Short-term IDRs and Individual
Rating -- all three ratings remain on RWN -- reflects the agency's
view that the society will likely need to strengthen its capital
measures. Fitch is concerned about the significant concentration
in NBS' commercial mortgage book due to its weak level of pre-
impairment operating profitability and small amount of capital
available to absorb losses. The RWN will be resolved when the
agency sees that the society's loss absorbing capital base has
been restored to a more adequate level. Failure to strengthen
adequately capitalization in the next few months could result in
further ratings pressure. The agency acknowledges that the
majority of commercial mortgages extended by NBS are to low risk
housing associations. Despite the current good performance of the
society's other commercial investment mortgages which benefit from
mainly good quality tenants, Fitch believes that the concentration
in this book might amplify and accelerate any deterioration in
asset quality. The society's ratings also take into account its
sound liquidity and funding position and diversified revenue
sources. Building societies' options for strengthening their loss
absorbing capital are limited and include non-replacement of
maturing loans and asset disposals. Fitch considers that the
results from these actions may not be sufficient and thus
increasingly believes the society could exchange some or all of
its lower tier 2 capital into a profit participating deferred
shares, a new equity-like instrument. As a consequence, the
agency has downgraded the rating of the lower tier 2 debt to 'B-'
and placed it on RWN.
The downgrade of Skipton Building Society's Long- and Short-term
IDRs reflects Fitch's expectation of more moderate internal
capital generation over the medium-term. Fitch expects earnings
to be subdued partly as a result of a narrowing interest margin in
the parent society which, combined with a relatively stable loan
book, will constrain net interest revenue. Skipton's
profitability is also likely to suffer from weaker cyclical
earnings from its large estate agency subsidiary and significant
loan impairment charges, including charges related to specialist
lending. At end-March 2009, Skipton completed a merger with the
smaller Scarborough Building Society and has successfully
integrated Scarborough's savings and mortgage systems. The merger
resulted in higher risk, high loan to value self-cert and adverse
lending comprising around 12.5% of loans, the source of most of
the group's impaired loans. However, asset quality in the parent
society's mortgage book is good and the commercial book is
granular and relatively small, reducing single name concentration
risks. The Stable Outlook on Skipton's Long-term IDR is supported
by its sound funding and liquidity management, adequate
capitalization and the ability to strengthen capital by selling
one or more subsidiaries.
The affirmation of West Bromwich Building Society's ratings
reflect the society's enhanced core tier 1 capital position
despite the agency's expectations of weaker profitability in 2010.
Fitch has removed WBBS's Long and Short-term IDRs from RWN and
assigned a Negative Outlook on the society's Long-term IDR. The
Negative Outlook reflects Fitch's concern about WBBS's credit
risks, especially in its commercial mortgage portfolio which is
characterized by single name concentration, exposure to cyclical
industry sectors and its involvement in a small number of
syndications. In particular, the agency believes that the society
may need to increase its allocation of impairment allowances to
impaired loans. As such, further large impairment charges could
be required at a time when the society's pre-impairment operating
profit is under pressure. However, WBBS will benefit from not
paying coupons on its lower tier 2 debt, which it is exchanging
for PPDS, and paying reduced coupons on PIBS. The agency takes
some comfort from the society's new management which has
strengthened WBBS's risk management functions and refocused its
strategy on prime owner occupied mortgages funded by retail
deposits. WBBS has little remaining wholesale funding and its
liquidity position is adequate, as it has raised large quantities
of retail funding in the past two years. WBBS plans to reduce its
commercial mortgage exposure in coming years.
Following WBBS's announcement earlier this month that it plans to
exchange its lower tier 2 debt for PPDS, the probability of non-
performance by lower tier 2 debt or PIBS in weaker societies has
risen. As a result, Fitch is reviewing its ratings for lower tier
2 debt and PIBS for societies which may find they will have to
strengthen their loss absorbing capital. Fitch has placed the
lower tier 2 debt of Chelsea Building Society and the lower tier 2
debt and PIBS of Principality Building Society on RWN,
respectively, as part of its review. While Fitch conducts its own
assessment of capital sufficiency, the Financial Services
Authority may, based on its criteria, including stress tests,
request a society to strengthen its core Tier 1 capital. In the
current dislocated market conditions Fitch believes that building
societies would struggle to sell PPDS directly to investors. As a
result, in order to make use of the instrument, it is possible
that other societies needing to strengthen capitalization might
look to exchange existing forms of subordinated debt, such as
lower tier 2 or PIBS, for PPDS.
The ratings actions for all 11 societies are provided below:
Britannia Building Society
-- Long-term IDR affirmed at 'A-'; Outlook Negative
-- Senior unsecured notes downgraded to 'A-' from 'A'; removed
from RWN
Chelsea Building Society
-- Long-term IDR affirmed at 'BBB+'; Outlook Negative
-- Senior unsecured notes downgraded to 'BBB+' from 'A-'
-- Lower tier 2 notes: 'BBB'; placed on RWN
Coventry Building Society
-- Long-term IDR affirmed at 'A'; Outlook Stable
-- Senior unsecured notes downgraded to 'A' from 'A+'
Leeds Building Society
-- Long-term IDR affirmed at 'A'; Outlook Stable
-- Short-term IDR affirmed at 'F1'
-- Individual Rating downgraded to 'B/C' from 'B'; removed from
RWN
-- Support Rating affirmed at '3'
-- Support Rating Floor affirmed at 'BB'
-- Senior unsecured notes downgraded to 'A' from 'A+'
-- Subordinated notes and permanent interest bearing shares
affirmed at 'A-'
Nationwide Building Society
-- Long-term IDR affirmed at 'AA-'; Outlook Stable
-- Senior unsecured notes downgraded to 'AA-' from 'AA'
Newcastle Building Society
-- Long-term IDR downgraded to 'BBB-' from 'BBB+'; remains on
RWN
-- Short-term IDR downgraded to 'F3' from 'F2'; remains on RWN
-- Individual Rating downgraded to 'C/D' from 'C'; remains on
RWN
-- Support Rating: affirmed at '3'
-- Support Rating Floor: affirmed at 'BB'
-- Senior unsecured notes downgraded to 'BBB-' from 'A-';
remains on RWN
-- Lower tier 2 notes downgraded to 'B-' from 'BBB'; remains on
RWN
Norwich & Peterborough Building Society
-- Long-term IDR affirmed at 'A-'
-- Senior unsecured notes downgraded to 'A-' from 'A'
-- Principality Building Society
-- Long-term IDR affirmed at 'BBB+'; Outlook Stable
-- Senior unsecured notes downgraded to 'BBB+' from 'A-'
-- Lower tier 2 notes: 'BBB'; placed on RWN
-- Permanent interest bearing shares: 'BBB-'; placed on RWN
Skipton Building Society
-- Long-term IDR downgraded to 'A-' from 'A'; removed from RWN;
assigned a Stable Outlook
-- Short-term IDR downgraded to 'F2' from'F1'; removed from RWN
-- Individual Rating affirmed at 'B/C'
-- Support Rating: affirmed at '3'
-- Support Rating Floor: affirmed at 'BB'
-- Senior unsecured notes downgraded to 'A-' from 'A+'; removed
from RWN
-- Lower tier 2 notes downgraded to BBB+ from 'A-'; removed from
RWN
-- Permanent interest bearing shares downgraded to 'BBB+' from
'A-'; removed from RWN
West Bromwich Building Society
-- Long-term IDR affirmed at 'BBB-'; removed from RWN; assigned
a Negative Outlook
-- Short-term IDR affirmed at 'F3'; removed from RWN
-- Individual Rating affirmed at 'C/D'; removed from RWN
-- Support Rating: affirmed at '3'
-- Support Rating Floor: affirmed at 'BB'
-- Senior unsecured notes affirmed at 'BBB-'; removed from RWN
-- Lower tier 2 notes affirmed at 'C'
-- Permanent interest bearing shares affirmed at 'C'
Yorkshire Building Society
-- Long-term IDR affirmed at 'A-'; Outlook Stable
-- Senior unsecured notes downgraded to 'A-' from 'A'
* FITCH: PIK Loans Common in European Buyout Debt Restructurings
----------------------------------------------------------------
Fitch Ratings said in a new report published that the use of
Payment-in-Kind (PIK) loans is becoming increasingly common in
many debt restructurings for European buyout transactions.
Despite the clear cash flow relief provided to the distressed
borrower by the PIK debt given in exchange of cash-pay loans, the
agency warns that not all PIK loans will qualify for equity or
quasi-equity treatment by Fitch.
"Debt restructurings are often seen as a bridge to a more
permanent structure, once the immediate source of distress is
over," said Michelle De Angelis, Senior Director in Fitch's
Leveraged Finance team. "The success of such structures is
reliant on a sustained improvement in both operating performance
and general credit market conditions. The first factor carries
execution risk, whilst the latter carries market risk, but both
factors must be considered in Fitch analysis".
Unless a restructuring PIK loan meets Fitch's Holdco PIK criteria
(as set out in Fitch's criteria report Rating European Holdco PIK
dated July 11, 2007) or qualifies for some degree of equity credit
according to Fitch's assessment for hybrid instruments (as
explained in Fitch's criteria report Equity Credit for Hybrids and
Other Capital Securities dated June 25, 2008), it will be treated
as debt for the purposes of Fitch's rating analysis. The
additional cash flow headroom and flexibility which is offered by
a PIK instrument is certainly a positive element in a
restructuring, however, Fitch has to balance this short- to
medium-term cash flow flexibility with the medium- to long-term
refinancing risk. Fitch also has to assess the risk that a deal
cannot be fully refinanced and that some creditors are therefore
not repaid in full, which would constitute a default.
For Collateralized Loan Obligations), any potential haircuts and
treatment of PIK assets will remain transaction-specific and so
investors should read the CLO documentation carefully. For
transactions that have the ability to invest in subordinated debt,
if the PIK loan refers to a performing issuer (an IDR of 'B-' or
above), the PIK can be held at par for the purpose of calculating
over-collateralization (O/C) tests. A haircut may apply for
obligors rated 'CCC' and below, or, otherwise, the PIK loan should
be reflected at market value similarly to any other 'CCC'-rated
assets in the portfolio. Moreover, the reduction of regular
interest income will be detrimental to the CLO notes in so far as
less excess cash will be available to protect the senior notes
through the various cash flow diversion mechanisms such as O/C and
interest cover tests.
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
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, 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 * * *