/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/090626.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Friday, June 26, 2009, Vol. 10, No. 125 Headlines A U S T R I A BARABAN TROCKENBAU: Creditors Must File Claims by July 22 B.O.N.I.T.O. GMBH: Creditors Have Until July 21 to File Claims CAFE KULTUR: Creditors Must File Claims by July 22 DALLOS GMBH: Creditors Have Until July 21 to File Claims PIRINGER GMBH: Creditors Must File Claims by July 7 F R A N C E ALCATEL-LUCENT SA: Mulls Sale of EUR500MM Convertible Bonds G E R M A N Y ARCANDOR AG: Quelle May Receive EUR50 Million Loan GENERAL MOTORS: In Talks With Beijing Auto Over Opel Sale HEIDELBERGCEMENT AG: S&P Keeps 'B-' Long-Term Corp. Credit Rating PHORMS MANAGEMENT: S&P Assigns 'B-/B' Issuer Credit Ratings QIMONDA AG: Insolvency Administrator Sells Major Holdings STANKIEWICZ GMBH: IAC to Acquire Manufacturing Facilities H U N G A R Y * HUNGARY: IMF Approves EUR1.4 Billion Disbursement I C E L A N D LANDSBANKI ISLANDS: Judge Wants Court to Look Into Icesave Issue I R E L A N D AVOCA CLO IV: S&P Junks Rating on Class E Def Notes From 'BB' BLACKWATER HOMES: Files for Bankruptcy Protection EIRLES TWO: Moody's Junks Rating on US$50 Mil. Notes From 'Ba3' INDEPENDENT NEWS: Standstill Agreement on EUR200-Mln Debt Extended TOM HOGAN: Goes Into Voluntary Liquidation * Irish Banks Face EUR35 Bln Losses as Economy Shrinks, IMF Says I T A L Y SAFILO SPA: Moody's Junks Corporate Family Rating From 'B3' SAFILO SPA: S&P Lowers Corporate Credit Rating to 'CC' * Moody's Confirms 'Ba1' Issuer Rating on City of L'Aquila K A Z A K H S T A N AK BULAK: Creditors Must File Claims by July 3 BIOTECH 2005: Creditors Must File Claims by July 3 EURASIA INSURANCE: S&P Raises Financial Strength Rating to 'BB-' KAZ TECHNO: Creditors Must File Claims by July 3 SAR SU: Creditors Must File Claims by July 3 STANDART REGION: Creditors Must File Claims by July 3 K Y R G Y Z S T A N PAN ASIA: Creditors Must File Claims by July 24 L U X E M B O U R G GATE GOURMET: S&P Puts 'B' Corp. Rating on CreditWatch Negative N E T H E R L A N D S KONINKLIJKE AHOLD: S&P Raises Sr Unsecured Notes Rating From 'BB+' R U S S I A ELISTINSKIY HOUSE: Creditors Must File Claims by July 5 LATES CJSC: Creditors Must File Claims by July 5 MUKHTOLOVSKIY FORESTRY: Creditors Must File Claims by July 5 STABILITY LLC: Creditors Must File Claims by July 5 USMANSKIY HOUSE: Creditors Must File Claims by July 5 S P A I N BANCO SANTANDER: S&P Corrects Ratings on Class D and E Notes CAJA SAN FERNANDO: S&P Junks Ratings on Four Classes of Notes RURAL HIPOTECARIO: Fitch Affirms Junks Ratings on Class E Notes S W I T Z E R L A N D DIR ARISDORF: Creditors Must File Claims by July 16 HIS JEANSWEAR: Creditors Must File Claims by July 22 KIEFER, MOSIMANN: Claims Filing Deadline is July 17 MODEATELIER BRIGITTE: Claims Filing Deadline is July 8 SANSAFE AG: Creditors Have Until July 27 to File Claims U K R A I N E PANICH LTD: Creditors Must File Claims by July 1 PRIVATE FINANCE: Creditors Must File Claims by July 1 PRIVATE TRADE: Creditors Must File Claims by July 1 SIGMA-RESOURCE LLC: Creditors Must File Claims by July 1 TRADE FINANCE: Creditors Must File Claims by July 1 U N I T E D K I N G D O M BAXI GROUP: Secures Waiver on Leveraged Loans BRIXTON PLC: Fitch Maintains LT Issuer Default Rating at 'BB' CARNUNTUM HIGH: S&P Affirms Rating on Class E Notes at 'BB' FORD MOTOR: Raises UK Prices by 4% on Weak Pound INDUS PLC: Moody's Downgrades Rating on Class B Notes to 'B2' LONDON WELSH: In Administration; Tenon Recovery Appointed PAUL GREEN: Seeks to Cut Debt Pile Through CVA SETANTA SPORTS: Liberty Global Eyes Irish Unit * ING Says European Emerging-Market Debt Default to Peak in 2010 * BOOK REVIEW: Instincts of the Herd in Peace and War ********* ============= A U S T R I A ============= BARABAN TROCKENBAU: Creditors Must File Claims by July 22 --------------------------------------------------------- Creditors of Baraban Trockenbau KG have until July 22, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for August 5, 2009 at 10:50 a.m. For further information, contact the company's administrator: Dr. Peter Zens Esteplatz 5/5 1030 Vienna Austria Tel: 534 90 Fax: DW 50 E-mail: office@schopf-zens.at B.O.N.I.T.O. GMBH: Creditors Have Until July 21 to File Claims -------------------------------------------------------------- Creditors of B.O.N.I.T.O. GmbH have until July 21, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for August 4, 2009 at 12:50 p.m. For further information, contact the company's administrator: Dr. Andrea Simma Favoritenstrasse 22/12a 1040 Vienna Austria Tel: 504 64 08 Fax: 504 64 08 22 E-mail: simma@mitrecht.com CAFE KULTUR: Creditors Must File Claims by July 22 -------------------------------------------------- Creditors of Cafe Kultur GmbH have until July 22, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for August 5, 2009 at 10:30 a.m. For further information, contact the company's administrator: Mag. Gerhard Stauder Siebensterngasse 42 1070 Vienna Tel: 523 47 91 Fax: DW 33 E-mail: kahlig.partner@aon.at DALLOS GMBH: Creditors Have Until July 21 to File Claims -------------------------------------------------------- Creditors of Dallos GmbH have until July 21, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for August 4, 2009 at 11:00 a.m. For further information, contact the company's administrator: Dr. Andreas Wippel Triester Str. 15 2620 Neunkirchen Austria Tel: 02635/62860 Fax: 02635/62861 14 E-mail: kanzlei@dr-wippel.at PIRINGER GMBH: Creditors Must File Claims by July 7 --------------------------------------------------- Creditors of Piringer GmbH have until July 7, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for July 21, 2009 at 10:00 a.m. For further information, contact the company's administrator: Dr. Katharina Widhalm-Budak Favoritenstrasse 22/12a 1040 Vienna Austria Tel: 504 64 08 Fax: 504 64 08 22 E-mail: widhalm-budak@mitrecht.com =========== F R A N C E =========== ALCATEL-LUCENT SA: Mulls Sale of EUR500MM Convertible Bonds ----------------------------------------------------------- David Whitehouse at Bloomberg News reports that La Tribune, citing unidentified market operators, said Alcatel-Lucent SA is considering selling about EUR500 million of convertible bonds in coming days to shore up its finances. About Alcatel-Lucent SA France-based Alcatel-Lucent SA (Euronext Paris and NYSE: ALU) -- http://www.alcatel-lucent.com/-- provides product offerings that enable service providers, enterprises and governments worldwide, to deliver voice, data and video communication services to end users. In the field of fixed, mobile and converged broadband networking, Internet protocol (IP) technologies, applications and services, the company offers the end-to-end product offerings that enable communications services for residential, business customers and customers. It has operations in more than 130 countries. It has three segments: Carrier, Enterprise and Services. The Carrier segment is organized into seven business divisions: IP, fixed access, optics, multicore, applications, code division multiple access networks and mobile access. Its Enterprise business segment provides software, hardware and services that interconnect networks, people, processes and knowledge. Its Services business segment integrates clients' networks. In October 2008, the company completed the acquisition of Motive, Inc. * * * As reported in the Troubled Company Reporter-Europe on March 5, 2009, Standard & Poor's Ratings Services lowered to 'B+' from 'BB-' its long-term corporate credit ratings and senior unsecured ratings on France-based telecom equipment and services supplier Alcatel Lucent and its subsidiary Alcatel-Lucent USA Inc. (formerly Lucent Technologies Inc.). The 'B' short-term rating on Alcatel Lucent was affirmed. S&P said the outlook is negative. ============= G E R M A N Y ============= ARCANDOR AG: Quelle May Receive EUR50 Million Loan -------------------------------------------------- Patrick Donahue at Bloomberg News reports that Quelle AG, Arcandor AG's mail-order unit, may get a EUR50 million (US$70 million) loan after a credit panel made up of federal state government officials reached an agreement "in principle." Daniela Philippi, a spokeswoman for the office of Bavarian state Premier Horst Seehofer, as cited by Bloomberg News, said the preliminary agreement is dependent on several unspecified conditions. Bloomberg News says a loan would be an alternative to state guarantees, for which Quelle didn't qualify. Bloomberg News recalls Quelle, which sells mail-order products through catalogs, had its funding cut off this month, forcing insolvency administrator Klaus Hubert Goerg to seek alternative funding to print next season's catalogs. 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 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: In Talks With Beijing Auto Over Opel Sale --------------------------------------------------------- Beijing Automotive Industry Holding Co. held discussions this week with General Motors Corp. about the possibility of buying Adam Opel GmbH if Magna International's bid for the European unit of GM falls through, Norihiko Shirouzu at the Wall Street Journal reports citing a person familiar with the situation. The WSJ relates the person said GM's agreement with Magna isn't binding, and GM is talking to Beijing Auto and other possible bidders to keep its options open in case its negotiations with Magna fail. Beijing Auto aimed to hand in an enhanced offer for the GM business by the middle of July, Daniel Schafer at the Financial Times reports citing several people briefed on the matter. According to the FT, one person close to GM said Belgium-based financial investor RHJ International could also make a second offer for the carmaker's European unit. GM, the FT says, expects to receive improved bids from Beijing Auto and RHJ in the coming weeks. The FT recalls GM earlier this month allowed both Beijing Auto and RHJ International to look at Opel's books in an attempt to increase the pressure on Magna. GM, the FT notes, had hoped to sign a deal by mid-July, but the failure to reach a deal so far could delay this target by several weeks. The FT says according to people close to the US carmaker, Magna remained the frontrunner. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. In 2007, nearly 9.37 million GM cars and trucks were sold globally under 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. 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. As of March 31, 2009, GM had US$82.2 billion in total assets and US$172.8 billion in total liabilities, resulting in a US$90.5 billion stockholders' deficit. Bankruptcy Creditors' Service, Inc., publishes General Motors Bankruptcy News. The newsletter tracks the Chapter 11 restructuring proceedings commenced by General Motors Corporation and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) HEIDELBERGCEMENT AG: S&P Keeps 'B-' Long-Term Corp. Credit Rating ----------------------------------------------------------------- Standard & Poor's Ratings Services said that it has affirmed its 'B-' long-term and 'B' short-term corporate credit ratings on German heavy building materials manufacturer HeidelbergCement AG. The outlook is negative. At the same time, S&P removed the corporate credit ratings from CreditWatch with negative implications, where they had originally been placed on Oct. 24, 2008. The 'CCC+' ratings on the senior unsecured bonds issued by HeidelbergCement and its subsidiaries HeidelbergCement Finance B.V., Hanson Ltd., and Hanson Australia Funding Ltd. remain on CreditWatch, but S&P has changed the implications to developing from negative. S&P's recovery rating on these bonds remains unchanged at '5', indicating S&P's expectation of modest (10%-30%) recovery in the event of a payment default. "Our rating actions follow HeidelbergCement's recent announcement that it has completed the refinancing of EUR8.7 billion of bank debt through a new set of facilities that mature in December 2011," said Standard & Poor's credit analyst Xavier Buffon. Consequently, the group has extended the maturity of its Hanson acquisition loans from mid-2010 to end-2011 and likely has removed the risk of an imminent breach of financial covenants. S&P's decision to change the CreditWatch implications on the issue ratings to developing stems from S&P's anticipation that, after S&P complete S&P's review of the complex structure in place, S&P could revise upward or downward S&P's ratings on some, or all, of HeidelbergCement's senior unsecured bonds. S&P considers that the completed refinancing removes the risk of a liquidity shortfall in the very near term, and that it should provide better, albeit possibly not that large, headroom under financial covenants. S&P thinks this gives management some additional time to execute significant asset disposals and explore the feasibility of any fresh equity infusion. At the same time, however, S&P is mindful that management will likely have to face several challenges, such as the current sharp recession and the still near-frozen conditions for asset disposals, as it makes efforts to reduce debt leverage substantially. S&P also observes that there will be a massive debt concentration due in December 2011. S&P expects market conditions to remain very difficult in 2009 given the likely sharp fall in new commercial construction in North America and mature markets in Europe, and S&P's belief that residential markets in mature and emerging Europe will continue to shrink, possibly well into 2010. On the positive side, S&P expects HeidelbergCement to benefit significantly from infrastructures-related stimulus programs, especially in the U.S. At this stage, S&P anticipates that the company's revenues will likely decline by high single digits this year, followed by further erosion, although to a lesser extent, in 2010. S&P anticipates positive discretionary annual cash flows. This, with any possible, but difficult to predict, disposal proceeds, should enable HeidelbergCement to reduce debt somewhat over the next two years. Still, at this stage S&P does not expect massive deleveraging. S&P's ratings on HeidelbergCement reflect S&P's assessment of its highly leveraged financial risk profile, weak liquidity, and still- heavy indebtedness, seemingly unresolved at this time, at the controlling shareholder level. While S&P does not anticipate the reported difficult situation of the family shareholder to directly affect HeidelbergCement's cash flows and debt in the near term, S&P thinks that this situation, for as long as it continues, could constrain opportunities for massive and durable debt reduction at the company. At this point, all these factors more than offset HeidelbergCement's satisfactory business profile, underpinned by solid market shares, large size, broad diversity, and several favorable industry characteristics, such as limited substitution risks, good price resistance despite intense volume pressures currently, and the local nature of markets. "The negative outlook reflects the risks of resumed pressure on the ratings on HeidelbergCement if S&P come to perceive liquidity as weakening, which could happen in the event of covenant tightening, or if management encounters difficulties in executing disposals or faces renewed pressures on cash flows beyond this year," said Mr. Buffon. "We think ongoing liquidity or debt issues at the controlling shareholder level continue to be a potential constraint." S&P could revise its outlook to stable or positive if the company completes significant asset disposals, if debt deleverage is quicker and larger than what S&P currently expects, and/or if overall market conditions recover more sharply or sooner than expected. PHORMS MANAGEMENT: S&P Assigns 'B-/B' Issuer Credit Ratings ----------------------------------------------------------- Standard & Poor's Ratings Services said that it assigned its 'B-/B' long- and short-term issuer credit rating to Germany-based private school-operator PHORMS Management AG and its regional subsidiary, PHORMS Berlin gGmbH. The outlook on both entities is stable. "The ratings reflect an aggressive expansion strategy into private school operations, the general risks associated with their start- up positions, and the tight labor market for bilingual teachers," said Standard & Poor's credit analyst Michael Teig. Future political and administrative support for profit-making private schools remains uncertain--a ratings drag for both entities as PHORMS Berlin still has not received personnel cost state- subsidies for the first time. "The ratings on both entities are supported by experienced professional management teams, support from a socially committed group of owners and investors through equity injections to PHORMS Management and on to PHORMS Berlin, and a stable market niche in the German school sector, leading to a strong demand profile," said Mr. Teig. S&P believes the strong demand profile for PHORMS Berlin is likely to continue. Most PHORMS schools in operation will become eligible for state subsidies for personnel costs over the next three years, which S&P believes will help to diversify revenues toward stable and predictable state subsidies. "We expect that PHORMS Management will be able to continue its aggressive expansion plan," said Mr. Teig. The ratings on both entities might come under negative pressure if PHORMS Berlin faces considerable delays in the approval of state subsidies for its two school sites in operation. A severe drop in the demand for PHORMS Management's schools, which S&P views currently as unlikely, could also trigger negative rating actions. Conversely, the ratings could be raised if S&P observes strong long-term demand and further implementation of the business model and expansion strategy. An increased diversification of the company's revenue structure toward stable and predictable state subsidies could also trigger positive rating actions. If positive rating triggers materialize, S&P believes that the ratings have the potential to improve steadily over the coming years. QIMONDA AG: Insolvency Administrator Sells Major Holdings --------------------------------------------------------- Christoph Hammerschmidt at EE Times Europe reports that Michael Jaffe, the insolvency administrator of Qimonda AG, has started to sell the company's major holdings. According to the report, holdings that have already been sold include Advanced Mask Technology Center (AMTC), nanotechnology materials research center NaMLab, and the Dresden Chip Academy. The report says Qimonda's core assets such as patents and the fabs are still in the hand of the insolvency administrator. Qimonda AG (NYSE: QI) -- http://www.qimonda.com/-- is a leading global memory supplier with a diversified DRAM product portfolio. The company generated net sales of EUR1.79 billion in financial year 2008 and had -- prior to its announcement of a repositioning of its business -- approximately 12,200 employees worldwide, of which 1,400 were in Munich, 3,200 in Dresden and 2,800 in Richmond (Virginia, USA). The company provides DRAM products with a focus on infrastructure and graphics applications, using its power saving technologies and designs. Qimonda is an active innovator and brings high performance, low power consumption and small chip sizes to the market based on its breakthrough Buried Wordline technology. STANKIEWICZ GMBH: IAC to Acquire Manufacturing Facilities --------------------------------------------------------- just-auto.com reports that International Automotive Components Group has agreed to acquire certain operations Stankiewicz GmbH and Gimotive GmbH (collectively "Stankiewicz") from German administration. According to the report, IAC has agreed to acquire certain facilities in Germany, Belgium, Czech Republic and Poland. The acquisition, the report says, will include nine manufacturing sites with approximately 1,200 employees generating over EUR150 million in annual sales. The report recalls Stankiewicz filed for insolvency on December 29, 2008 due to the severe downturn in the automotive market. Based in Adelheidsdorf, Germany, Gimotive/Stankiewicz is a supplier of soundproofing insulation used by automakers. ============= H U N G A R Y ============= * HUNGARY: IMF Approves EUR1.4 Billion Disbursement --------------------------------------------------- The Executive Board of the International Monetary Fund (IMF) on Tuesday, June 23, 2009, completed the second review of Hungary's economic performance under a program supported by a 17-month Stand-By Arrangement (SBA). The completion of the review enables the immediate disbursement of SDR 1.26 billion (about EUR1.4 billion or US$1.9 billion), bringing total disbursements under the program to SDR 7.58 billion (about EUR8.4 billion or US$11.7 billion). The SBA was approved on November 6, 2008 for SDR 10.53 billion (about EUR11.7 billion or US$16.2 billion). The arrangement entails exceptional access to IMF resources, amounting to 1,015 percent of Hungary's quota. Following the Executive Board's discussion on Hungary, Mr. John Lipsky, First Deputy Managing Director and Acting Chair, stated: "Weaker than expected external demand and tighter external financing conditions exacerbated the recession in Hungary. In these circumstances, policy settings have been revised to strengthen fiscal sustainability and preserve financial stability. More ambitious structural spending and tax reforms are under way to strengthen fiscal sustainability, allowing the partial accommodation of automatic stabilizers and an increase in the fiscal deficit target in 2009. The authorities' commitment to the firm and timely implementation of appropriate policies is reassuring. "Fiscal sustainability is being strengthened through structural spending reforms, while allowing an increase in the fiscal deficit in 2009, owing to the partial operation of automatic fiscal stabilizers. The permanent budgetary savings from expanded reforms to the pension system, social transfers, and subsidies are encouraging. These reforms, together with tax reform that will shift the tax burden from labor to consumption and wealth should boost labor participation and potential growth over the medium- term. "The prompt implementation of the authorities' revised program to preserve financial stability, including the careful monitoring of banks that receive government financial support and strengthening bank supervision, are important steps. It is recommended that the authorities explore institutional arrangements that would provide the financial supervisory agency with the necessary regulatory powers, and that remedial action and bank resolution frameworks be quickly strengthened. "Monetary and exchange rate policy will continue to target inflation over the medium term, while being prepared to act as needed to mitigate risks to financial stability and avoid risks to destabilizing the exchange rate. Looking ahead, a further strengthening of investor confidence and a corresponding easing of financial strains would create room for interest rate cuts," Mr. Lipsky stated. ============= I C E L A N D ============= LANDSBANKI ISLANDS: Judge Wants Court to Look Into Icesave Issue ---------------------------------------------------------------- Iceland Review reports that Jon Steinar Gunnlaugsson, a judge on the Supreme Court of Iceland, would like a court to establish whether country is legally obligated to compensate depositors in Icesave. Citing Morgunbladid, the report discloses Mr. Gunnlaugsson argues that if Iceland's Althingi parliament accepts the agreement between Icelandic, British and Dutch authorities on Icesave, which is currently being debated, Iceland gives up its right to have a court determine its legal obligation. Icesave is Landsbanki's online savings unit in the UK and the Netherlands. Deposit Guarantee Agreement As reported in the Troubled Company Reporter-Europe on June 15, 2009, on June 12, 2009, the government of Iceland approved the signing of an agreement to conclude the talks with Britain and Holland on the Icesave issue. According to the agreement, the Icelandic Depositors' and Investors' Guarantee Fund will reimburse the UK and the Dutch Governments the amounts paid out to eligible depositors of the Icesave accounts in accordance with the EU Deposit Guarantee Scheme (up to 20,887 EUR per deposit). The Icelandic government said British and Dutch loans to the Depositors' Guarantee Fund have a fifteen year term, but during the first seven years neither principal nor interest amounts need be paid. As a precondition for the loan, the Guarantee Fund will receive the claims of British and Dutch depositors on the bankruptcy estate of Landsbanki. During the seven-year non- payment period and later, the dividends from the bankrupt estate can be used to repay the loan partly without any additional cost. By 2016 the guarantee of Iceland's Treasury on the remaining debt will come into effect. The agreement stipulates a 5.55% interest per year or 125 points over OECD's CIRR's rate of 4.3% (Commercial Interest Reference Rates, CIRR). Furthermore, in case still better terms on loans become available during this period, the possibility remains to repay the loan in full earlier. When the old Landsbanki went into insolvency last October, the deposits of 345 thousand depositors in Britain and the Netherlands became inaccessible. The sum total of these deposits was over 1,200 billion ISK. The Depositors' Guarantee Fund is responsible for 20,887 EUR per account, or about 2.35 billion pounds in the UK and 1.33 billion EUR in the Netherlands. The terms of the agreement are based on a conservative estimate of Landsbanki assets and around 75% of the Icesave deposit guarantees are expected to be covered by these assets during the next seven years. The remainder may then have to be covered by the Treasury in the next eight year period. The British Chartered Institute of Public Finance and Accountancy (CIPFA) however, estimates that Landsbanki assets might cover up to 95% of the Icesave depositor guarantees. Freezing Order As reported in the Troubled Company Reporter-Europe on June 18, 2009, on June 15, 2009, British authorities revoked the October 2008 Freezing Order on the assets of Landsbanki in Britain, which were set using anti-terrorism legislation. Following the fall of Iceland's three largest banks, Icelandic banking assets in the UK were frozen on October 8, 2008 using anti-terrorism laws. The Icelandic government has ever since protested the application of this legislation against Iceland. About Landsbanki Islands Landsbanki Islands hf, also commonly known as Landsbankinn in Iceland, is an Icelandic bank. On October 7, 2008, the Icelandic Financial Supervisory Authority took control of Landsbanki and two other major banks. Landsbanki filed for Chapter 15 protection on Dec. 9, 2008 (Bankr. S.D. N.Y. Case No.: 08-14921). Gary S. Lee, Esq., at Morrison & Foerster LLP, represents the Debtor. When it filed for protection from its creditors, it listed assets and debts of more than US$1 billion each. ============= I R E L A N D ============= AVOCA CLO IV: S&P Junks Rating on Class E Def Notes From 'BB' ------------------------------------------------------------- Standard & Poor's Ratings Services lowered and removed from CreditWatch negative its credit ratings on the class C1, C2, D, and E deferrable notes, and the N, O, P, Q, and R combination notes issued by Avoca CLO IV PLC. At the same time, S&P removed from CreditWatch negative and affirmed the class B notes and affirmed the class A notes. S&P also withdrew S&P's rating on the class M combination notes as they have been decoupled into their constituent parts. On May 29, S&P placed 10 tranches in this deal on CreditWatch negative following S&P's preliminary review of the effect of recent developments in European collateralized loan obligations. The rating actions reflect S&P's view that the underlying portfolio's credit quality has deteriorated. S&P's analysis shows an increase in the scenario default rates for this transaction. At the same time, par value losses following the defaults of corporate obligors in the underlying portfolio have resulted in a decrease in break-even default rates when subjected to S&P's cash flow analysis. In S&P's opinion, the increase in SDRs and the fall in BDRs are no longer commensurate with the ratings previously assigned to the downgraded tranches. The credit quality deterioration is also highlighted by the fall in overcollateralization ratios. According to the latest trustee report available to us, all these tests are currently in breach of their respective trigger levels as set out in the transaction documents. Overcollateralization tests have also fallen partly due to various haircuts, such as those applied to certain 'CCC' rated assets. If all the tests remain in breach by the next payment date, the remaining interest proceeds after payment of interest to the class A noteholders will be used to delever the transaction. This effectively means that interest on the tranches junior to the class A notes is likely to defer. Under the terms of the transaction documents, the cash flows to these classes are to be resumed once certain coverage tests come back into compliance. The same factors that contributed to the downgrade of the class C- 1, C-2, D, and E notes have affected the ratings on the class N, O, P, Q, and R combo notes. This is due to the fact that the combo notes include components of the rated tranches. In several cases, some of the combos hold the unrated class F subordinated note as a component. Avoca CLO IV is an arbitrage cash flow CLO managed by Avoca Capital Holdings that closed in January 2006. As recently announced, S&P's criteria for rating cash flow CLOs are under review. This may affect S&P's ratings on the notes issued by Avoca CLO IV. The rating actions are unrelated to these proposed changes. Ratings List Avoca CLO IV PLC EUR458 Million Floating- and Fixed-Rate Notes Ratings Lowered and Removed From Creditwatch Negative Rating ------ Class To From ----- -- ---- C1 Def BBB A/Watch Neg C2 Def BBB A/Watch Neg D Def BB BBB/Watch Neg E Def CCC+ BB/Watch Neg N Combo B BBB/Watch Neg O Combo B BBB/Watch neg P Combo B BBB/Watch Neg Q Combo B BBB+/Watch Neg R Combo BB A/Watch Neg Rating affirmed and Removed From Creditwatch Negative Rating ------ Class To From ----- -- ---- B Def AA AA/Watch Neg Ratings Affirmed A1a AAA A1b AAA A2 AAA Rating Withdrawn Rating ------ Class To From ----- -- ---- M Combo NR AA NR�Not rated. BLACKWATER HOMES: Files for Bankruptcy Protection ------------------------------------------------- Ian Kehoe at the Sunday Business Post Online reports that Cork-based Blackwater Homes is asking the High Court for bankruptcy protection from its creditor. The report relates the company will petition for an examiner to be installed over the business, as it seeks to restructure its debts and source fresh investment. The company, the report discloses, has suffered from the collapse of the property sectors and is no longer able to pay its debts. According to the report, documents filed with the court state that the company is proposing the appointment of Barry Donohoe, a partner with KPMG in Cork, as the official examiner. The report says if appointed, Mr. Donohoe will have 100 days to devise a scheme of arrangement to save the business, during which time the company will have protection from its creditors. Blackwater Homes -- http://www.blackwaterhomes.ie/-- builds houses in the Cork and Waterford area. EIRLES TWO: Moody's Junks Rating on US$50 Mil. Notes From 'Ba3' --------------------------------------------------------------- Moody's Investors Service has downgraded its rating of notes issued by Eirles Two Limited under the Series 120. This rating action follows the downgrade of the rating of the Series A Euro Floating Rate Credit Linked Secured Notes due 2011 issued by Asgard CDO plc. The repack notes issued by Eirles Two Limited are credit linked to the Asgard CDO plc Series A notes which are now rated Caa1. The rating actions are: Eirles Two Limited: (1) US$50,000,000 Series 120 Floating Rate Secured Notes due 2011 -- Current Rating: Caa1 -- Prior Rating: Ba3, on review for downgrade -- Prior Rating Date: 9 June 2009, Ba3 rating placed on review for downgrade INDEPENDENT NEWS: Standstill Agreement on EUR200-Mln Debt Extended ------------------------------------------------------------------ Anousha Sakoui Salamander Davoudi and Ben Fenton at the Financial Times report that the board of Independent News & Media and its creditors agreed an extension to a "standstill" agreement that allows more time for debt restructuring negotiations. The FT relates the company has been in the middle of talks between shareholders and creditors about how to restructure a EUR200 million (US$278 million) bond it needed to repay in May. Citing people familiar with the situation, the FT discloses talks remain constructive and both shareholders and creditors are set to meet today, June 25, to continue negotiations. The standstill, the FT says, was due to expire today. Rights Issue Susan Thompson and Dan Sabbagh at The Times report Denis O'Brien, IN&M's second-largest shareholder, is understood to have told the board that he cannot support a rescue plan drawn up by Sir Anthony O�Reilly, the group's former chief executive, as he believes it is not necessarily a long-term solution to the company's debts. The Times relates the company had wanted to launch a EUR60 million deeply discounted rights issue to help repay the EUR200 million bond. The Times states under the latest version of the O'Reilly plan, bondholders would receive EUR60 million from the rights issue and as much as EUR50 million from planned disposals. The Times says without the backing of Mr. O'Brien, who owns a 26 per cent stake, the rights issue has no chance of succeeding. The Times discloses Mr. O'Brien has put forward an alternative plan that would involve the bondholders receiving EUR30 million to EUR40 million of cash, in line with their face value. On June 23, 2009, the Troubled Company Reporter-Europe, citing the FT, reported INM is also in danger of breaching covenants on a further EUR653 million debt, which is held by a syndicate of eight banks and secured on the company's assets in the UK and Ireland. The company has total debts of EUR1.4 billion, built up through its overseas expansion, the FT said. Headquartered in Dublin, Ireland, Independent News & Media PLC (ISE:IPD) -- http://www.inmplc.com/-- is engaged in printing and publishing of metropolitan, national, provincial and regional newspapers in Australia, India, Ireland, New Zealand, South Africa and the United Kingdom. It also has radio operations in Australia and New Zealand, and outdoor advertising operations in Australia, New Zealand, South-East Asia and across Africa. The Company also has online operations across each of its principal markets. The Company has three business segments: printing, publishing, online and distribution of newspapers and magazines and commercial printing; radio, and outdoor advertising. INM publishes over 200 newspaper and magazine titles, delivering a combined weekly circulation of over 32 million copies with a weekly audience of over 100 million consumers. In March 2008, it acquired The Sligo Champion. During the year ended December 31, 2007, the Company acquired the remaining 50% interest in Toowoomba Newspapers Pty Ltd. TOM HOGAN: Goes Into Voluntary Liquidation ------------------------------------------ Ciara O'Brien and David Labanyi at the Irish Times report that Galway-based Tom Hogan Motors has gone into voluntary liquidation, putting 200 jobs at risk. Tom Hogan, which had garages in Clonmel, Ennis, Limerick and Shannon, has ceased trading, the report says. According to the report, the company supplied Toyota and Lexus models, and took over the BMW franchise in Galway city from Barry Motors last year. The report discloses according to the most recent accounts filed with the Companies Registration Office, the Tom Hogan Group reported a pretax loss of EUR393,163 in 2006 after a writedown of EUR992,559 for exceptional costs. Its turnover was EUR103 million and the cost of sales EUR98 million, the report states. * Irish Banks Face EUR35 Bln Losses as Economy Shrinks, IMF Says ---------------------------------------------------------------- Dara Doyle and Ian Guider at Bloomberg News report that according to the International Monetary Fund, Ireland's banks face losses of as much as EUR35 billion (US$49 billion) through 2010. According to Bloomberg News, lenders led by Bank of Ireland Plc and Allied Irish Banks Plc are facing mounting bad debts as property loans sour. Bad Bank Bloomberg News discloses Finance Minister Brian Lenihan is planning a so-called bad bank, known as the National Asset Management Agency, to buy loans with a face value of as much as EUR90 billion from lenders, and will lay out details of the agency this month. The government, Bloomberg News says, wants to take toxic loans from its banks to revive lending and help the economy. Bloomberg News relates the IMF said Irish gross domestic product will shrink a cumulative 13.5 percent in the three years through 2010 as the collapse of the real-estate market ripples through the economy. The IMF, as cited by Bloomberg News, said Ireland "is in the midst of an unprecedented economic correction." ========= I T A L Y ========= SAFILO SPA: Moody's Junks Corporate Family Rating From 'B3' ----------------------------------------------------------- Moody's Investors Service has downgraded Safilo S.p.A.'s Corporate Family Rating to Caa2 from B3, the Probability of Default Rating to Caa3 from Caa1 and the senior unsecured rating on the EUR195 million notes due 2013 issued by Safilo Capital International SA to Ca from Caa2. Ratings remain under review for further possible downgrade where they were initially placed on February 13, 2009. "The rating action follows the company's announcement on June 23, 2009 of its request to core banks to postpone a payment due on June 30, 2009 under its amortizing senior loan and Moody's view that a potential restructuring of the existing debt is more likely at this stage", says Paolo Leschiutta, a Vice President -- Senior Analyst in Moody's Corporate Finance Group and responsible for Safilo. "The Probability of Default Rating of Caa3, reflects Moody's view of the heightened risk of default in the context of the unsustainable capital structure of the group (as highlighted in Moody's press release of April 28, 2009), that might result in some restructuring of the current debt instruments that would be view as event of default under Moody's definitions." Moody's understands that the company is looking into measures to stabilize its capital structure, however, the rating agency remains concerned on the liquidity profile of Safilo and the ongoing pressure on operating performances. As stated previously, Moody's questions the sustainability of the company's capital structure in consideration of the main bank facility amortizing schedule and the expectation that cash generation over the coming months will be affected by weaker operating performances likely to result in negative free cash flow. Moody's therefore continues its review for possible downgrade on Safilo's ratings. The review will mainly focus on the company's ability to improve its liquidity profile over the short term, mainly through obtaining covenant amendment, and to secure an adequate capital structure going forward. Safilo's CFR of Caa2, one notch higher than the PDR of Caa3, reflects Moody's expectation that the family recovery rate in case of default might be above the standard 50% average implied by Moody's Loss Given Default model in recognition of the strong brand value of Safilo's activities. Downgrades: Issuer: Safilo S.p.A. -- Corporate Family Rating, Downgraded to Caa2 from B3 -- Probability of Default Rating, Downgraded to Caa3 from Caa1 Issuer: Safilo Capital International SA -- Senior Unsecured Regular Bond, Downgraded to Ca (LGD5, 73%) from Caa2 The last rating action on Safilo was implemented on April 28, 2009, when Moody's downgraded Safilo's CFR to B3, PDR to Caa1 and the rating on the notes issued by Safilo Capital International SA to Caa2 leaving ratings under review for further possible downgrade. Safilo's ratings were assigned by evaluating factors Moody's believe are relevant to the credit profile of the issuer, such as (i) the business risk and competitive position of the company versus others within its industry, (ii) the capital structure and financial risk of the company, (iii) the projected performance of the company over the near to intermediate term, and (iv) management's track record and tolerance for risk. These attributes were compared against other issuers both within and outside of Safilo's core industry and the company's ratings are believed to be comparable to those of other issuers of similar credit risk. Headquartered in Padua, Italy, Safilo SpA is the world's leading manufacturer of high-end and luxury eyewear, generating approximately EUR1.15 billion of revenues during FY 2008. It has been listed on the Italian Stock Exchange since December 2005, with almost 60% of floating shares. The company operates in more than 30 countries and sells its products in over 130 countries, offering a strong portfolio of both owned and licensed brands. SAFILO SPA: S&P Lowers Corporate Credit Rating to 'CC' ------------------------------------------------------ Standard & Poor's Ratings Services said that it lowered to 'CC' from 'CCC+' its long-term corporate credit rating on Italy-based eyewear manufacturer Safilo SpA. The outlook is negative. At the same time, S&P lowered to 'C' from 'CCC' the issue rating on the EUR195 million 9.625% second-lien notes due 2013 issued by Safilo Capital International S.A. The recovery rating on the debt is unchanged at '5', indicating S&P's expectation of modest (10%- 30%) recovery in the event of a payment default. In addition, Standard & Poor's removed all ratings from CreditWatch, where they were placed with negative implications on Feb. 13, 2009. The downgrade follows Safilo's announcement on June 23, 2009, that it is in discussion with its senior lenders regarding a covenant amendment and a deferral of the June 30, 2009, payment of the amortizing facility A of its senior bank loan due in December 2011. "In S&P's view, this request reflects Safilo's increasingly fragile position due to ongoing operating underperformance and the need to secure its liquidity position," said Standard & Poor's credit analyst Diego Festa. According to Safilo's unaudited results, net sales in the first quarter of financial 2009 were down by 11.7% year on year, and EBITDA was down by 35.4%. The EBITDA margin fell 380 basis points to 10.5%. In light of falling revenues, Safilo's high fixed costs--including those for marketing, staff, and operating leases--weigh even more heavily on profitability. In the same period, free operating cash flow was negative at EUR42.8 million from negative EUR17.4 million in 2007. This decline was the main cause of an increase in reported net debt to EUR617.7 million from EUR570.0 million on Dec. 31, 2008. On March 31, 2009, the annualized ratio of reported net debt to EBITDA was 5.6x. S&P could lower the ratings to 'D' (default) or 'SD' (selective default) if Safilo were to fail to meet any of its obligations. S&P could also lower the corporate credit ratings to 'D' upon a completion of a distressed exchange offer, which under Standard & Poor's methodology means any offer constituting less than the original promise without adequate offsetting compensation. A positive rating action could occur if Safilo secures the necessary funding to mitigate the current negative cash flow trends and pressure on its liquidity position. * Moody's Confirms 'Ba1' Issuer Rating on City of L'Aquila ---------------------------------------------------------- Moody's Investors Service has confirmed the Ba1 issuer rating of the City of L'Aquila. The outlook is developing. This action concludes Moody's review for possible downgrade initiated on May 12, 2009. "The confirmation of the Ba1 rating reflects easing concerns about the city's willingness and capacity to regularly meet debt service payments, as well as more concrete prospects that the central government will provide L'Aquila with extraordinary funding to compensate for declining revenues," said Francesco Soldi, Moody's lead analyst for L'Aquila. "However, the developing outlook reflects the uncertainty regarding the amount and timing of any extraordinary funding from the government, and the extent of the economic and financial challenges facing the city over the medium to long term." Among the emergency measures adopted in the aftermath of the disaster, the central government provided for the postponement of debt service payments towards domestic lenders due in 2009. Moody's understands that, despite the legal protection offered by the national legislation, L'Aquila has continued to regularly service its debt obligations since then and remains committed to honouring its financial obligations on a timely basis as they come due. The city's commitment is supported by a comfortable cash position, which has been maintained thanks to strict control over expenditures. The same legislation establishes a temporary suspension of personal and corporate tax payments. Therefore, in 2009 the municipal budget is suffering a decline in tax revenues and proceeds from public services, which account for around two-thirds of its operating budget (2008: EUR68 million). Although the government's legislation does not provide any indication on this point, Moody's has received comfort that Italy's government will provide L'Aquila with additional funds to offset the loss of own- source revenue. As of the end of 2008, the city reported outstanding debt of EUR49.5 million, split almost equally between bank loans and domestic bonds. Its next debt service payments (interest and principal) are due by the end of June, equating to around EUR2 million. The Ba1 rating, well below the average of Italian local governments, continues to reflect the significant efforts required to restore ordinary operations and important economic and financial challenges going forward. Adequate and structural funding from the central government to ensure the city's financial stability and recovery will support upward rating movements. Conversely, the absence of adequate and timely funding from the centre could result in liquidity pressure and trigger downward rating adjustments. L'Aquila's modest economic base is expected to be severely challenged in 2009-10 by the depressed macroeconomic conditions facing the country and the earthquake. The last rating action with respect to L'Aquila was implemented on May 12, 2009, when Moody's downgraded its issuer rating to Ba1 from A1 and placed the rating under review for possible further downgrade. =================== K A Z A K H S T A N =================== AK BULAK: Creditors Must File Claims by July 3 ---------------------------------------------- Creditors of LLP AK Bulak 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 March 27, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of Almaty Baizakov Str. 273b Almaty Kazakhstan BIOTECH 2005: Creditors Must File Claims by July 3 -------------------------------------------------- Creditors of LLP Biotech 2005 have until July 3, 2009, to submit proofs of claim to: Micro district Samal, 15-29 Taldykorgan Almaty Kazakhstan The Specialized Inter-Regional Economic Court of Almaty commenced bankruptcy proceedings against the company on December 18, 2008, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of Almaty Tauelsyzdyk Str. 53 Taldykorgan Almaty Kazakhstan EURASIA INSURANCE: S&P Raises Financial Strength Rating to 'BB-' ---------------------------------------------------------------- Standard & Poor's Ratings Services said that it had raised its long-term counterparty credit and insurer financial strength ratings on Kazakhstan-based insurer Eurasia Insurance Co. to 'BB-' from 'B+'. The outlook is stable. At the same time, S&P raised its Kazakhstan national scale ratings to 'kzA-' from 'kzBBB+'. "The upgrade reflects Eurasia's sustained good operating performance to date and the improved quality and diversification of its investments, despite a tough economic and operating environment," said Standard & Poor's credit analyst Victor Nikolskiy. The ratings reflect the significant economic and industry risks that can affect insurers and other financial institutions in the domestic Kazakh market, especially in the current operating environment. Eurasia faces potentially high credit risks stemming from exposure to the troubled local banking sector and the company has only a short track record in new lines and limited geographic coverage. The rapid increase in inward reinsurance premiums and strong business growth in the markets of the Commonwealth of Independent States present especially significant risks. Eurasia's improved, extremely strong risk-based capital ratios help mitigate these risks, as do its position as the leading domestic insurer and reinsurer in Kazakhstan, its improved investment portfolio, and its good operating performance, as shown through a consistent technical and overall earnings performance in recent years. S&P believes that Eurasia benefits from privileged access to the extensive commercial activities of its small, but influential ultimate shareholder group. S&P's view is that Eurasia will maintain its position as the leading Kazakh commercial insurer, with a good operating performance, an increasingly geographically diversified business spread, and with marginal overall capitalization, despite very strong risk-based capital ratios. S&P expects the ratio of inward reinsurance premiums written to total premiums to increase in 2009. However, S&P also expects about 80% of the reinsurance exposures assumed to originate in CIS markets. Furthermore, S&P does not expect Eurasia's already high exposure to Kazakhstan's troubled banking sector to increase. S&P would revise the outlook to negative or take a negative rating action if asset quality or operating performance deteriorated significantly, or if the currently high economic and industry risks of the region became even more acute. "A positive rating action is currently unlikely until the overall operating environment in Kazakhstan eases significantly," said Mr. Nikolskiy. KAZ TECHNO: Creditors Must File Claims by July 3 ------------------------------------------------ LLP Kaz Techno Plast is currently undergoing liquidation. Creditors have until July 3, 2009, to submit proofs of claim to: Nekrasov Street Serebryansk Zyryanovsky East Kazakhstan Kazakhstan SAR SU: Creditors Must File Claims by July 3 -------------------------------------------- Creditors of LLP Sar Su Ram have until July 3, 2009, to submit proofs of claim to: Kazakhstan Str. 78-27 Ust-Kamenogorsk East Kazakhstan Kazakhstan The Specialized Inter-Regional Economic Court of East Kazakhstan commenced bankruptcy proceedings against the company on April 2, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of East Kazakhstan Bajov Str. 2 070000 Ust-Kamenogorsk East Kazakhstan Kazakhstan STANDART REGION: Creditors Must File Claims by July 3 ----------------------------------------------------- LLP Standart Region Pipe is currently undergoing liquidation. Creditors have until July 3, 2009, to submit proofs of claim to: Chaikovsky Str. 144a Almaty Kazakhstan =================== K Y R G Y Z S T A N =================== PAN ASIA: Creditors Must File Claims by July 24 ----------------------------------------------- The branch of LLP Pan Asia Global Co Ltd is currently undergoing liquidation. Creditors have until July 24, 2009, to submit proofs of claim. Inquiries can be addressed to (0-543) 20-65-94. =================== L U X E M B O U R G =================== GATE GOURMET: S&P Puts 'B' Corp. Rating on CreditWatch Negative --------------------------------------------------------------- Standard & Poor's Ratings Services placed on CreditWatch with negative implications its 'B' long-term corporate credit ratings on Luxembourg-based airline caterer Gate Gourmet Holdings S.C.A. and its 100%-owned subsidiary Gate Gourmet Borrower LLC. At the same time, the 'B' issue ratings on Gate Gourmet Borrower's Swiss franc 725 million senior secured term facilities were placed on CreditWatch with negative implications. The recovery ratings on these facilities are unchanged at '4', indicating S&P's expectation of average (30%-50%) recovery of principal and pre- petition interest in the event of a payment default. In addition, the 'BB-' issue rating on the senior secured CHF125 million revolving credit facility was placed on CreditWatch with negative implications. The recovery rating is unchanged at '1', indicating S&P's expectation of very high (90%-100%) recovery in the event of a payment default. "The CreditWatch placement reflects S&P's view that underlying trading conditions and prospects for suppliers to the airline industry have deteriorated sharply in recent months. Weakening demand for air travel is, in S&P's view, likely to adversely affect the group's operating performance this year and could place pressure on Gate Gourmet's financial flexibility," said Standard & Poor's credit analyst Mohammed Fayek. Gate Gourmet's core customer base -- the airline carriers -- are witnessing tough market conditions as lower volumes and prices and a sharp increase in fuel costs since the beginning of the year have put pressure on its operating performance. As a result, major carriers worldwide have made several profit warnings and capacity reductions for 2009. S&P believes that passenger traffic, which is a key measure of demand for airline catering services, will remain at depressed levels for at least the remainder of 2009, which is likely to place considerable pressure on Gate Gourmet's trading performance. S&P notes that forecasts made in June 2009 by the International Air Transportation Association anticipate an 8% decrease in airline passenger traffic in 2009. During the first quarter of 2009, Gate Gourmet's revenues declined by 3% at constant currency levels compared with the same period in 2008. Although the group has some flexibility to adjust its cost structure to demand, margins were hit by a decline in volumes. Gate Gourmet's funds from operations to debt for the 12 months ended March 31, 2009, was about 19%, which is commensurate with the 'B' ratings. However, the marked deterioration in the revenue and cost environment for airlines in recent months will, in S&P's view, fully test Gate Gourmet's credit measures over the coming quarters. The ratings continue to reflect the group's exposure to the cyclical and price-competitive commercial airline industry, limited bargaining power, sensitive operating margins, and highly leveraged financial structure. These factors are partially offset by the group's leading market position with widespread geographic coverage and low capital requirements. To resolve the CreditWatch placement, Standard & Poor's will discuss with management the group's current and future trading expectations, the full details of any cost-saving measures targeted to mitigate lower passenger traffic volumes, liquidity forecasts, and anticipated financial performance relative to covenant requirements. The main issues concern the group's ability to offset the adverse effect of weakening trading conditions on its operating performance, the impact on liquidity and financial flexibility, and how its credit measures will develop relative to the levels commensurate with the ratings. Based on current information, any lowering of the corporate credit ratings would likely be limited to one notch. ===================== N E T H E R L A N D S ===================== KONINKLIJKE AHOLD: S&P Raises Sr Unsecured Notes Rating From 'BB+' ------------------------------------------------------------------ Standard & Poor's Ratings Services said it raised its long- and short-term corporate credit ratings on Dutch food retailer Koninklijke Ahold N.V. to 'BBB/A-2' from 'BBB-/A-3'. The outlook is stable. S&P also raised the ratings on the group's senior unsecured notes to 'BBB-' from 'BB+'. "Our upgrade follows Ahold's strong earnings reported in first- quarter 2009, enabling the group to maintain its solid financial metrics disclosed at year-end 2008," said Standard & Poor's credit analyst Nicolas Baudouin. Specifically, S&P expects the group will sustain funds from operations to debt at between 30% and 35% and debt to EBITDA at about 2.7x. The ratings continue to reflect S&P's view of Ahold's satisfactory business profile, underpinned by the favorable characteristics of the food retail market where the group enjoys leading positions in The Netherlands and on the U.S. East coast. Ahold's once highly leveraged financial profile has progressively shifted from aggressive to intermediate. Retailing trends remain challenging in the U.S., but the group nevertheless reported solid first- quarter 2009 results in this region. Ahold traditionally delivers strong trading performances in The Netherlands, where the group's Albert Heijn banner is gradually gaining market share (now exceeding 31%). This banner generates above-average profitability, reporting a 7.2% EBIT margin in 2008. The bulk of the group's U.S. sales stem from the Stop & Shop banner. Although this label is profitable, S&P believes it continues to face the need to adapt to difficult conditions. Ahold completed its "VIP" program in 2008. The program, which hinges on price repositioning and improving price perception, has positioned Stop & Shop and Giant Landover well for the current market conditions. Ahold's first-quarter 2009 figures confirmed the positive sales and operating trends observed in 2008, with the group continuing to reap the benefits of its U.S. VIP program. Ahold reported a 17.9% jump in operating income, on favorable exchange rate effects and the group's enhanced market positions. "The stable outlook reflects S&P's anticipation that Ahold will likely maintain its credit metrics at their current levels, which are in line with S&P's guidelines for the ratings," said Mr. Baudouin. S&P expects that FFO to debt will remain in the 30%-35% range and that debt to EBITDA will stay at about 2.7x. Because Ahold continued to report solid performances in the turbulent U.S. retail market during the first quarter of 2009, a downside scenario seems remote to us at this stage. It would primarily be triggered by an unexpected material debt-financed acquisition, which S&P does not foresee in the near future. S&P will also closely monitor the group's exposure to multi-employer retirement plans. Similarly, a further upgrade is unlikely in the short term given the competitiveness of the markets where Ahold operates. =========== R U S S I A =========== ELISTINSKIY HOUSE: Creditors Must File Claims by July 5 ------------------------------------------------------- The Arbitration Court of Kalmykia commenced bankruptcy supervision procedure on OJSC Elistinskiy House-Building Enterprise (PSRN 1030800781770). The case is docketed under Case No. ?22�442/2009. Creditors of have until July 5, 2009, to submit proofs of claims to: D. Ochirov Temporary Insolvency Manager Office 404 Gubarevicha Str. 5 Elista 358000 Kalmykia Russia The Debtor can be reached at: OJSC Elistinskiy House-Building Enterprise Lenina Str. 315 Elista Kalmykia Russia LATES CJSC: Creditors Must File Claims by July 5 ------------------------------------------------ Creditors of CJSC Lates (Construction) have until July 5, 2009, to submit proofs of claims to: S. Kungurov Temporary Insolvency Manager Melnikayte Str. 106-253 Tumen Russia The Arbitration Court of Tumenskaya will convene at 10:30 a.m. on August 27, 2009, to hear bankruptcy supervision procedure on the company. The case is docketed under Case No. ?70�2773/2009. MUKHTOLOVSKIY FORESTRY: Creditors Must File Claims by July 5 ------------------------------------------------------------ The Arbitration Court of Nizhegorodskaya commenced bankruptcy supervision procedure on OJSC Mukhtolovskiy Forestry. The case is docketed under Case No. ?43�5095/2009 27�48. Creditors have until July 5, 2009, to submit proofs of claims to: A. Romanov Temporary Insolvency Manager Post User Box 22 Lyskovo 2 606212 Nizhegorodskaya Russia The Debtor can be reached at: OJSC Mukhtolovskiy Forestry Kosmodemyanskoy Str. 81 Mukhtolovo Ardatovskiy Nizhegorodskaya Russia STABILITY LLC: Creditors Must File Claims by July 5 --------------------------------------------------- The Arbitration Court of Volgogradskaya commenced bankruptcy supervision procedure on LLC Stability (TIN 3442077502, PSRN 1053477209081) (Construction). The case is docketed under Case No. ?12�8260/09. Creditors have until July 5, 2009, to submit proofs of claims to: I. Bormotova Temporary Insolvency Manager Post User Box 37 400074 Volgograd Russia The Debtor can be reached at: LLC Stability Lenina Prospect 103 Volgograd Russia USMANSKIY HOUSE: Creditors Must File Claims by July 5 ----------------------------------------------------- The Arbitration Court of Lipetskaya commenced bankruptcy proceedings against LLC Usmanskiy House-Building Items Plant (TIN 4816006710, PSRN 1054800125632) after finding the company insolvent. The case is docketed under Case No. ?36�2642/2008. Creditors have until July 5, 2009, to submit proofs of claims to: T. Kozhenkova Insolvency Manager Office 14 Ignatyeva Str. 29 398002 Lipetsk Russia The Debtor can be reached at: LLC Usmanskiy House-Building Items Plant Nekrasova Str. 19A Usman' 399373 Lipetskaya Russia ========= S P A I N ========= BANCO SANTANDER: S&P Corrects Ratings on Class D and E Notes ------------------------------------------------------------ S&P is republishing this media release, originally published on April 1, 2009, to correct the ratings on Fondo de Titulizacion de Activos Santander Hipotecario 5's class D and E notes in the ratings list. S&P originally incorrectly stated these ratings as 'BB' and 'B', respectively, instead of 'BBB' and 'BB'. A corrected version follows. Standard & Poor's Ratings Services has taken rating actions on five Spanish residential mortgage-backed securities transactions originated and serviced by Banco Santander S.A. (Santander; AA/Negative/A-1+). Specifically, S&P: -- Raised the ratings on the class B, C, and D notes issued by Fondo de Titulizacion de Activos Santander Hipotecario 1; -- Placed on CreditWatch negative the class A notes and downgraded the class B, C, D and E notes issued by Fondo de Titulizacion de Activos Santander Hipotecario 2, Fondo de Titulizacion de Activos Santander Hipotecario 3, and Fondo de Titulizacion de Activos Santander Hipotecario 4; and -- Placed the ratings on the class D and E notes issued by Fondo de Titulizacion de Activos Santander Hipotecario 5 on CreditWatch negative. These rating actions follow a full credit and cash flow analysis of the most recent transaction information that S&P has received. The results of S&P's analysis showed that for those tranches either placed on CreditWatch negative or lowered, the credit enhancement available was not commensurate with the current ratings, or that the available credit enhancement may be insufficient. As a result of the ongoing deleveraging of Santander 1, the aggregate risk measures are gradually improving. The weighted- average LTV ratio of the loans has fallen to approximately 72% from 88% at closing, and the current arrears levels are relatively stable, below the average recorded for the Spanish market. In contrast, the mortgage portfolios underlying Santander Hipotecario 2, 3, 4, and 5 are generating high levels of arrears. Loans more than 90 days in arrears, including defaulted loans and repossessions, represent 3.9% (Santander 2), 7.5% (Santander 3), 10.3% (Santander 4), and 2.5% (Santander 5) of the current mortgage portfolios, well above the average for other Spanish RMBS transactions with similar seasoning. Recent performance data combined with the portfolio characteristics suggest that these numbers will continue to rapidly increase over the next few quarters. Indeed, these severe delinquencies have already broadly doubled in Santander 2 and 3, and quadrupled in Santander 4 over the last quarter. All the transactions feature a structural mechanism that traps excess spread to provide for defaults, which are defined as arrears greater than 18 months or those loans classified as defaulted by the servicer. As a result of higher delinquencies and this structural feature, Santander 3 and Santander 4 have already fully drawn their cash reserves. The effect of the reserve drawings is twofold. On the one hand, it will not allow excess spread to flow from the deals for the foreseeable future, but on the other it impairs the internal liquidity of the transactions for as long as the recoveries on defaulted assets are not received. When the cumulative default rates in Santander 2, 3, 4 and 5 reach a certain percentage of the initial balance (based on the balance of defaulted loans), the priority of payments would be altered so as to shut off interest payments to the related class of notes. In Santander 1, interest in the subordinated classes should be deferred if principal deficiencies reach certain levels for each class of notes. The rating actions therefore also take into account the effect of nonpayment of interest in the light of possible defaults, in addition to S&P's assessment of the default risk in the residual portfolios. Ratings List Ratings Raised Fondo de Titulizacion de Activos Santander Hipotecario 1 EUR1.875 Billion Residential Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- B AA+ AA C AA- A+ D A- BBB+ Ratings Placed On Creditwatch Negative Fondo de Titulizacion de Activos Santander Hipotecario 2 EUR1.955 Billion Mortgage-Backed Floating-Rate Notes and an Overissuance Of EUR17.6 Million Floating-Rate Notes Rating ------ Class To From ----- -- ---- A AAA/Watch Neg AAA Fondo de Titulizacion de Activos Santander Hipotecario 3 EUR2.8 Billion Mortgage-Backed Floating-Rate Notes and an Overissuance Of EUR22.4 Million Floating-Rate Notes Rating ------ Class To From ----- -- ---- A1 AAA/Watch Neg AAA A2 AAA/Watch Neg AAA A3 AAA/Watch Neg AAA Fondo de Titulizacion de Activos Santander Hipotecario 4 EUR1.23 Billion Mortgage-Backed Floating-Rate Notes and an Overissuance Of EUR14.8 Million Floating-Rate Notes Rating ------ Class To From ----- -- ---- A1 AAA/Watch Neg AAA A2 AAA/Watch Neg AAA A3 AAA/Watch Neg AAA Fondo de Titulizacion de Activos Santander Hipotecario 5 EUR1.375 Billion Mortgage-Backed Floating-Rate Notes and an Overissuance Of EUR24.7 Million Floating-Rate Notes Rating ------ Class To From ----- -- ---- D BBB/Watch Neg BBB E BB/Watch Neg BB Ratings Lowered and Removed From Creditwatch Negative Fondo de Titulizacion de Activos Santander Hipotecario 2 EUR1.955 Billion Mortgage-Backed Floating-Rate Notes and an Overissuance Of EUR17.6 Million Floating-Rate Notes Rating ------ Class To From ----- -- ---- C BBB A-/Watch Neg D BB BBB/Watch Neg E B BB/Watch Neg Fondo de Titulizacion de Activos Santander Hipotecario 3 EUR2.8 Billion Mortgage-Backed Floating-Rate Notes and an Overissuance Of EUR22.4 Million Floating-Rate Notes Rating ------ Class To From ----- -- ---- B BBB AA/Watch Neg C BB A/Watch Neg D B BBB/Watch Neg E B- BB/Watch Neg Fondo de Titulizacion de Activos Santander Hipotecario 4 EUR1.23 Billion Mortgage-Backed Floating-Rate Notes and an Overissuance Of EUR14.8 Million Floating-Rate Notes Rating ------ Class To From ----- -- ---- B BBB AA/Watch Neg C BB A/Watch Neg D B BBB/Watch Neg E B- BB/Watch Neg Ratings Lowered Fondo de Titulizacion de Activos Santander Hipotecario 2 EUR1.955 Billion Mortgage-Backed Floating-Rate Notes and an Overissuance Of EUR17.6 Million Floating-Rate Notes Rating ------ Class To From ----- -- ---- B A AA- CAJA SAN FERNANDO: S&P Junks Ratings on Four Classes of Notes ------------------------------------------------------------- Standard & Poor's Rating Services lowered its credit ratings on all five classes of notes series US$ issued by Caja San Fernando CDO I Fondo de Titulizacion de Activos. At the same time, S&P removed four tranches from CreditWatch negative, where they were placed on March 10. The rating actions follow S&P's assessment of a severe deterioration in the credit quality of the underlying portfolio, which comprises primarily 2002 and 2003 vintage U.S. collateralized debt obligations of asset-backed securities. Up to one-third of the portfolio is currently rated 'CC' or 'D'. S&P's analysis indicates that recoveries on defaulted assets are likely to be significantly lower than assumed in S&P's original ratings analysis. While S&P's analysis indicates that the class A1 notes currently benefit from adequate principal and interest coverage, S&P has lowered the rating due to the limited number of performing assets now remaining in the portfolio. In a concentrated portfolio, the default of a small number of obligors can rapidly reduce par coverage levels. According to S&P's analysis, par coverage on the class A2 notes depends on recoveries from assets currently in default. Interest proceeds from the portfolio appear to be sufficient to make timely payments of interest on the notes. However, in S&P's opinion, there is an increased risk of shortfalls in principal if recoveries on defaulted assets are lower than originally anticipated. As a result, S&P is lowering its rating on this note to 'CCC-'. S&P lowered to 'CC' the ratings on class B, C, and D notes as S&P's analysis indicates that the probability of ultimate repayment of principal is remote. Furthermore, interest on these notes is paid subsequent to repayments on the class A1 and A2 notes in the event of a breach of the overcollateralization tests. As such, in S&P's opinion, there is a significant probability that interest payments on the class B, C, and D notes will be deferred. Ratings List Caja San Fernando CDO I Fondo de Titulizacion de Activos US$171 Million Fixed- and Floating-Rate Notes Rating Lowered Rating ------ Class To From ----- -- ---- A1 BB AAA Ratings Lowered and Removed From CreditWatch Negative Rating ------ Class To From ----- -- ---- A2 CCC- AAA/Watch Neg B CC AA/Watch Neg C CC A/Watch Neg D CC BBB/Watch Neg RURAL HIPOTECARIO: Fitch Affirms Junks Ratings on Class E Notes --------------------------------------------------------------- Fitch Ratings has upgraded two and affirmed 22 tranches of Rural Hipotecario series Spanish RMBS transactions. The rating actions reflect strong credit enhancement levels within these transactions and the overall steady performance of the underlying collateral portfolios. Especially for older vintage transactions within the series where the upgrades have taken place, arrears levels as volume and as a percentage of the current outstanding collateral have stabilized. However, for recent vintage transactions, such as the Rural Hipotecario VIII, IX and Global I deals, a continuous increase in arrears levels has been observed. This increase is expected to cause loans in arrears to move towards higher arrears buckets and become defaulted once they reach 18 months plus in arrears. At this point, these loans will be provisioned by the transaction and absorbed by available excess spread. All transactions within the series feature an amortizing reserve fund; however, due to the current arrears levels the reserve funds are not expected to amortize over the next six quarters, providing an additional support for junior notes against possible losses. It should be noted that these transaction have reported significantly low levels of defaults to date in comparison to other transactions within the Spanish RMBS market. However, given the current economic climate -- with house price declines, rising unemployment and limited refinancing opportunities -- defaults are expected to trend upwards. Although older vintage transaction have experienced a strong build up of credit enhancement to cope with higher defaults, support provided by the credit enhancement levels for more recent vintage transactions are highly dependent on the performance of their respective collateral portfolios. Rating actions are listed below. Rural Hipotecario VI, Fondo de Titulizacion de Activos; -- Class A (ISIN ES0374306001): affirmed at 'AAA'; Outlook Stable; assigned a Loss Severity Rating of 'LS-1' -- Class B (ISIN ES0374306019): upgraded to 'AA' from 'A+'; Outlook Stable; assigned a Loss Severity Rating of 'LS-1' -- Class C (ISIN ES0374306027): affirmed at 'BBB+'; Outlook Stable; assigned a Loss Severity Rating of 'LS-2' Rural Hipotecario VII, Fondo de Titulizacion de Activos; -- Class A1 (ISIN ES0366366005): affirmed at 'AAA'; Outlook Stable; assigned a Loss Severity Rating of 'LS-1' -- Class A2 (ISIN ES0366366013 ): affirmed at 'AAA'; Outlook Stable; assigned a Loss Severity Rating of 'LS-1' -- Class B (ISIN ES0366366021): upgraded to 'AA' from 'AA-'; Outlook Stable; assigned a Loss Severity Rating of 'LS-1' -- Class C (ISIN ES0366366039): affirmed at 'BBB-'; Outlook Stable; assigned a Loss Severity Rating of 'LS-1' Rural Hipotecario VIII, Fondo de Titulizacion de Activos; -- Class A2a (ISIN ES0366367011): affirmed at 'AAA'; Outlook Stable; assigned a Loss Severity Rating of 'LS-1' -- Class A2b (ISIN ES0366367029): affirmed at 'AAA'; Outlook Stable; assigned a Loss Severity Rating of 'LS-1' -- Class B (ISIN ES0366367037): affirmed at 'A+'; Outlook Stable; assigned a Loss Severity Rating of 'LS-2' -- Class C (ISIN ES0366367045): affirmed at 'BBB'; Outlook Stable; assigned a Loss Severity Rating of 'LS-2' -- Class D (ISIN ES0366367052): affirmed at 'BB+'; Outlook Stable; assigned a Loss Severity Rating of 'LS-2' -- Class E (ISIN ES0366367060): affirmed at 'CC'; assigned a Recovery Rating of 'RR3' Rural Hipotecario Global I, Fondo de Titulizacion de Activos; -- Class A (ISIN ES0374273003): affirmed at 'AAA'; Outlook Stable; assigned a Loss Severity Rating of 'LS-1' -- Class B (ISIN ES0374273011): affirmed at 'A'; Outlook revised to Stable from Positive; assigned a Loss Severity Rating of 'LS-1' -- Class C (ISIN ES0374273029): affirmed at 'BBB+'; Outlook revised to Stable from Positive; assigned a Loss Severity Rating of 'LS-3' -- Class D (ISIN ES0374273037): affirmed at 'BB'; Outlook revised to Stable from Positive; assigned a Loss Severity Rating of 'LS-3' -- Class E (ISIN ES0374273045): affirmed at 'CC'; assigned a Recovery Rating of 'RR3' Rural Hipotecario IX, Fondo de Titulizacion de Activos; -- Class A2 (ISIN ES0374274019): affirmed at 'AAA'; Outlook Stable; assigned a Loss Severity Rating of 'LS-1' -- Class A3 (ISIN ES0374274027): affirmed at 'AAA'; Outlook Stable; assigned a Loss Severity Rating of 'LS-1' -- Class B (ISIN ES0374274035): affirmed at 'A+'; Outlook Stable; assigned a Loss Severity Rating of 'LS-3' -- Class C (ISIN ES0374274043): affirmed at 'BBB'; Outlook revised to Negative from Stable; assigned a Loss Severity Rating of 'LS-3' -- Class D (ISIN ES0374274050): affirmed at 'BB+'; Outlook revised to Negative from Stable; assigned a Loss Severity Rating of 'LS-4' -- Class E (ISIN ES0374274068): affirmed at 'CCC'; assigned a Recovery Rating of 'RR2' ===================== S W I T Z E R L A N D ===================== DIR ARISDORF: Creditors Must File Claims by July 16 --------------------------------------------------- Creditors of DIR Arisdorf AG are requested to file their proofs of claim by July 16, 2009, to: DIR Arisdorf AG Buendtenweg 26 4423 Hersberg Switzerland The company is currently undergoing liquidation in Arisdorf. The decision about liquidation was accepted at a general meeting held on December 10, 2008. HIS JEANSWEAR: Creditors Must File Claims by July 22 ----------------------------------------------------- Creditors of HIS Jeanswear AG are requested to file their proofs of claim by July 22, 2009, to: Emanuel Kunz Stampfenbachstrasse 52 8006 Zurich Switzerland The company is currently undergoing liquidation in Zurich. The decision about liquidation was accepted at an extraordinary general meeting held on April 6, 2009. KIEFER, MOSIMANN: Claims Filing Deadline is July 17 --------------------------------------------------- Creditors of Kiefer, Mosimann Kommunikation AG are requested to file their proofs of claim by July 17, 2009, to: Kiefer, Mosimann Kommunikation AG Bluemlisalpstrasse 35 8006 Zurich Switzerland The company is currently undergoing liquidation in Zurich. The decision about liquidation was accepted at a general meeting held on April 28, 2009. MODEATELIER BRIGITTE: Claims Filing Deadline is July 8 ------------------------------------------------------ Creditors of Modeatelier Brigitte Roth GmbH are requested to file their proofs of claim by July 8, 2009, to: Hasler Treuhand GmbH Hauptstrasse 15 9424 Rheineck Switzerland The company is currently undergoing liquidation in St. Margrethen. The decision about liquidation was accepted at the shareholders' meeting held on January 21, 2009. SANSAFE AG: Creditors Have Until July 27 to File Claims ------------------------------------------------------- Creditors of Sansafe AG are requested to file their proofs of claim by July 27, 2009, to: Leonhard Toenz Liquidator Seestrasse 39 8700 Kuesnacht Switzerland The company is currently undergoing liquidation in Z�rich. The decision about liquidation was accepted at a general meeting held on April 30, 2009. ============= U K R A I N E ============= PANICH LTD: Creditors Must File Claims by July 1 ------------------------------------------------ Creditors of LLC Panich Ltd (code EDRPOU 33746249) have until July 1, 2009, to submit proofs of claim to: S. Kitsul Insolvency Manager Office 15 Leskovskaya Str. 28 02097 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company on May 13, 2009. The case is docketed under Case No. 15/114-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy Str. 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Panich Ltd Yaroslavsky Lane 3-B 04071 Kiev Ukraine PRIVATE FINANCE: Creditors Must File Claims by July 1 ----------------------------------------------------- Creditors of LLC Private Finance Service (code EDRPOU 33595161) have until July 1, 2009, to submit proofs of claim to: S. Kitsul Insolvency Manager Office 15 Leskovskaya Str. 28 02097 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company on May 13, 2009. The case is docketed under Case No. 15/116-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy Str. 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Private Finance Service Elektrikov Str. 28-A 04176 Kiev Ukraine PRIVATE TRADE: Creditors Must File Claims by July 1 --------------------------------------------------- Creditors of LLC Private Trade Service (code EDRPOU 33595120) have until July 1, 2009, to submit proofs of claim to: S. Kitsul Insolvency Manager Office 15 Leskovskaya Str. 28 02097 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company on May 13, 2009. The case is docketed under Case No. 15/115-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy Str. 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Private Trade Service Pivnichno-Siretskaya Str. 3 04136 Kiev Ukraine SIGMA-RESOURCE LLC: Creditors Must File Claims by July 1 -------------------------------------------------------- Creditors of LLC Sigma-Resource (code EDRPOU 34047806) have until July 1, 2009, to submit proofs of claim to Y. Vanzhula, the company's insolvency manager. The Economic Court of Kiev commenced bankruptcy proceedings against the company on May 14, 2009. The case is docketed under Case No. 43/284. 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 Sigma-Resource P. Lumumba Str. 15 01042 Kiev Ukraine TRADE FINANCE: Creditors Must File Claims by July 1 --------------------------------------------------- Creditors of LLC Trade Finance Reserve (code EDRPOU 33595177) have until July 1, 2009, to submit proofs of claim to: S. Kitsul Insolvency Manager Office 15 Leskovskaya Str. 28 02097 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company on May 13, 2009. The case is docketed under Case No. 15/117-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy Str. 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Trade Finance Reserve Borichev Tok Str. 35 04070 Kiev Ukraine =========================== U N I T E D K I N G D O M =========================== BAXI GROUP: Secures Waiver on Leveraged Loans --------------------------------------------- Alasdair Reilly at Reuters reports that Baxi Group secured a standstill and waiver agreement on its leveraged loans. Reuters relates in mid June Baxi warned that if merger talks with Dutch heating systems group De Dietrich Remeha did not lead to an agreed transaction before June 27, it would not be able to make GBP22.3 million (US$36.94 million) of loan repayments that were also due on that day. According to Reuters, lenders agreed not to demand repayment of the loan by accelerating Baxi's debt on or before August 31. Baxi, Reuters discloses, also agreed a waiver with most of its mezzanine note lenders to ignore a cross default on the note agreement, which would be triggered by any default under the senior facility. Headquartered in Derby, Baxi Group -- http://www.baxigroup.com-- makes boilers, water heaters, space heaters, and radiators for commercial buildings and private residences. Formed in 2000 after the merger of Newmond and Baxi, the company is controlled by private equity firms BC Partners and Electra. Baxi Group has manufacturing facilities in Denmark, France, Germany, Italy, Spain, and the UK. The company improved its position in the continental European market in 2005 when it purchased Spanish boiler maker Roca, adding to subsidiaries already located across the continent. Baxi is in merger talks with smaller Dutch rival De Dietrich Remeha. BRIXTON PLC: Fitch Maintains LT Issuer Default Rating at 'BB' ------------------------------------------------------------- Fitch Ratings has maintained Brixton Plc's Long-term Issuer Default Rating of 'BB' and senior unsecured rating of 'BB+' on Rating Watch Negative. Brixton's Short-term IDR is rated 'B'. The company is one of the UK's two largest Real Estate Investment Trusts, specializing in industrial and business space. The RWN was initially put in place on March 4, 2009 following unexpected management changes and increasing concerns over the lack of a strategy for addressing reduced covenant headroom, and debt maturities of GBP380 million including a GBP275 million bond. Fitch has maintained Brixton's Long-term IDR and senior unsecured rating on RWN to the end of July 2009 following Brixton's announcement that it is in negotiation with its banks to refinance all its existing banking facilities, and that it has successfully negotiated a waiver of any potential breaches of the asset cover ratio covenant (minimum 1.67x, actual 1.86x at FY08) under those facilities prior to July 31, 2009. The waiver of this covenant enables Brixton to seek to reorganize its existing bank debt facilities without facing the prospect of an imminent breach and subsequent event of default on these bank facilities at a 30 June 2009 test date. Fitch will review the Rating Watch Negative on or by July 31, 2009. In the event that a successful renegotiation of the bank debt facilities does not occur, Fitch is likely to downgrade the ratings by at least one notch. The ratings also remain on RWN as the gearing covenant on the 2010, 2015 and 2019 bonds (175% maximum gearing) is also tested based upon the June 30, 2009 balance sheet, and further valuation declines could lead to a possible breach of this covenant when it is tested following release of the H109 accounts (likely end- August 2009). This is particularly the case for the 2010 bonds, which include Brixton's financial derivatives liability (GBP94.9m at February 2009) in its gearing covenant (142% against a covenant of 175% at FYE08). If no substantial new equity raising or cash injection materializes by mid-August 2009, which is sufficient in size to ensure the bonds' gearing covenant is met, Brixton's ratings could similarly face a multi-notch downgrade at that time. In the event that both the existing bank debt is successfully refinanced before July 31, 2009 (including a new covenant package) and new equity is raised by mid-August 2009, which is sufficient in size to prevent a bond gearing covenant breach, then it is likely that the RWN will be resolved and the ratings affirmed. Both Brixton and SEGRO Plc announced on June 22 that SEGRO has reached agreement with the board of Brixton on the financial terms of a possible recommended offer for the entire issued share capital of Brixton on these basis: 1.75 SEGRO share for each Brixton share. SEGRO has also announced a new GBP250 million share capital issue. However, Fitch notes SEGRO's announcement does not represent a firm intention to bid for Brixton and that even if pre-conditions are met, SEGRO may still not make an offer for Brixton. The rating action on Brixton does not factor in a bid by SEGRO as Fitch continues to assess Brixton on a standalone basis until any firm offer for the company is forthcoming. Since the beginning of March, Brixton has sold six properties at a value of GBP81.9 million at an average discount to the YE08 value of 17.6%. Further asset disposals are being pursued and proceeds will be used to reduce debt. With new tenant insolvencies, up to May 31, 2009, representing an annualized loss of rent, net of re- lettings, of GBP1.2 million per annum, Brixton's headline vacancy rate has risen to 21.1% at May 31, 2009. CARNUNTUM HIGH: S&P Affirms Rating on Class E Notes at 'BB' ----------------------------------------------------------- Standard & Poor's Rating Services affirmed and removed from CreditWatch negative its credit ratings on all eight classes of notes issued by Carnuntum High Grade I Ltd. S&P placed the class B to E notes on CreditWatch negative largely due to credit deterioration in the pool. Although the underlying portfolio has continued to be exposed to negative rating migration, the transaction has taken advantage of the current market environment and built par by purchasing assets at significant discounts while maintaining adequate credit quality. S&P placed the class A notes on CreditWatch negative due to the transaction's exposure to an 'A-2' rated counterparty. S&P has since received additional legal documentation giving us comfort that the counterparty can stay in the transaction while posting collateral, in accordance with S&P's December 2003 interest rate and currency swap counterparty criteria. Ratings List Carnuntum High Grade I Ltd. EUR1 Billion Floating-Rate Notes Ratings Affirmed and Removed From CreditWatch Negative Rating ------ Class To From ----- -- ---- A1 AAA AAA/Watch Neg A2 AAA AAA/Watch Neg A3 AAA AAA/Watch Neg B AA AA/Watch Neg C A A/Watch Neg D BBB BBB/Watch Neg E BB BB/Watch Neg C combo A A/Watch Neg FORD MOTOR: Raises UK Prices by 4% on Weak Pound ------------------------------------------------ BBC News reports that Ford has raised its UK prices for the third time, blaming the the weakness of the pound against the euro. BBC News relates Ford is to raise its UK prices by an average of 4%. "With so many of our costs priced in euros, there is no choice if we are to maintain a viable business," BBC News quoted Nigel Sharp, managing director of Ford in the UK, as saying. According to BBC News, the list price of Ka, Fiesta, Focus and Mondeo models will rise by between GBP600 and GBP650 while an S- Max will cost GBP700 more and a Galaxy will go up by GBP800. The price rises will apply to orders received after June 30, BBC News says. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The Company provides financial services through Ford Motor Credit Company. The Company has operations in Japan in the Asia Pacific region. In Europe, the Company maintains a presence in Sweden, and the United Kingdom. The Company also distributes its brands in various Latin-American regions, including Argentina and Brazil. * * * As reported by the Troubled Company Reporter on April 15, 2009, Standard & Poor's Ratings Services said it raised its ratings on Ford Motor Co. and related entities, including the corporate credit rating, to 'CCC+' from 'SD-'. The ratings on Ford Motor Credit Co. are unchanged, at 'CCC+', and the ratings on FCE Bank PLC, Ford Credit's European bank, are also unchanged, at 'B-', maintaining the one-notch rating differential between FCE and its parent Ford Credit. S&P said that the outlook on all entities is negative. Moody's Investors Service in December 2008 lowered the Corporate Family Rating and Probability of Default Rating of Ford Motor Company to Caa3 from Caa1 and lowered the company's Speculative Grade Liquidity rating to SGL-4 from SGL-3. The outlook is negative. The downgrade reflects the increased risk that Ford will have to undertake some form of balance sheet restructuring to achieve the same UAW concessions that General Motors and Chrysler are likely to achieve as a result of the recently-approved government bailout loans. Such a balance sheet restructuring would likely entail a loss for bond holders and would be viewed by Moody's as a distressed exchange and consequently treated as a default for analytic purposes. INDUS PLC: Moody's Downgrades Rating on Class B Notes to 'B2' ------------------------------------------------------------- Moody's Investors Service has downgraded these classes of Notes issued by INDUS (ECLIPSE 2007-1) plc (amounts reflect initial outstandings): -- GBP729,000,000 Class A Commercial Mortgage Backed Floating Rate Notes due 2020 downgraded to Baa1, previously on 13 April 2007 assigned Aaa; -- GBP48,000,000 Class B Commercial Mortgage Backed Floating Rate Notes due 2020 downgraded to B2, previously on 13 April 2007 assigned Aa2. At the same time, Moody's has affirmed the Aaa rating of the Class X Notes issued by INDUS (ECLIPSE 2007-1) plc. Moody's does not rate the Class C, Class D and Class E Notes issued by INDUS (ECLIPSE 2007-1) plc. The rating action concludes the review for possible downgrade that was initiated for the Class A and Class B Notes on April 8, 2009 and takes Moody's updated central scenarios into account, as described in Moody's Special Report "Moody's Updates on Its Surveillance Approach for EMEA CMBS". 1) Transaction and Portfolio Overview INDUS (ECLIPSE 2007-1) plc closed in April 2007 and represents the securitization of initially nineteen mortgage loans, eighteen originated by Barclays Bank PLC and one acquired by Barclays from HBOS. The loans are secured by first-ranking legal mortgages over initially 366 commercial properties located across the UK. The properties were predominantly offices (50%) and located in Greater London (62%). The remaining collateral pool largely consisted of residential (17%), retail (15%) and mixed use (9%) properties. Since closing, there have been almost no changes in the portfolio composition. Altogether sixteen property disposals have taken place, mostly within the G-res 1 Portfolio Loan and the Nos 2 & 3 Portfolio Loan. The nineteen loans are not equally contributing to the portfolio: the largest loan (Adelphi Loan) represents 25% of the current portfolio balance, while the smallest loan (Apex Loan) represents 0.5%. The current loan Herfindahl index is 7.5 versus 7.9 at closing. Following the property disposals, the remaining loans are secured by 350 properties which are still predominantly office use (49%). 60% of the properties are located in Greater London. As of the last interest payment date four loans representing 41.3% of the securitized pool were in default (Adelphi Loan, Greater London Portfolio Loan, Agora Max Portfolio Loan and Apex Loan). Of the four loans, the Apex Loan and the Agora Max Loan were in special servicing. The Apex Loan has not paid its debt service due since the July 2008 IPD. The Agora Max Portfolio Loan was transferred to special servicing in May 2009. A further loan (Lloyds Portfolio Loan, 3.7%) had an event of default on the April 2009 IPD due to an LTV default covenant breach, however the cure period is still in effect. As more than 10% of the loans in the pool are in default, the sequential payment trigger has been breached. Previously, the proceeds from prepayments and balloon repayments were allocated to the Notes in a combination of fully sequential, modified pro-rata and pro-rata basis, based on certain loan buckets. As a result of the payment default under the Apex Loan, loan protection liquidity facility drawings have been made every quarter since the July 2008 IPD. As of the April 2009 IPD the outstanding drawing under the liquidity facility was GBP206,679. 2) Rating Rationale The downgrades of the Class A and Class B Notes follow a detailed re-assessment of the loan and property portfolio's credit risk. Hereby, Moody's main focus was on property value declines, term default risk, refinancing risk and the anticipated work-out timing for defaulted and potentially defaulting loans. In its review, Moody's especially concentrated on the seven largest loans in the portfolio of which five are either on the servicer's watchlist, have an event of default outstanding or are in special servicing (the Adelphi Loan, the Criterion Loan, the G-res 1 Portfolio Loan, the Nos 2 & 3 Portfolio Loan, the Greater London Portfolio Loan, the Agora Max Portfolio Loan and the Lloyds Portfolio Loan). As outlined in more detail below, the rating action is mainly driven by the most recent performance of the UK commercial property markets, Moody's opinion about future property value performance, the performance of the portfolio to date with currently 41.3% (and potentially 45% by the next IPD) of the current loan balance being in default and for some of the loans senior ranking termination costs of long dated swaps entered into by the borrower at or around closing. Driven by, in many cases, a higher default risk assessment at the loan maturity dates, Moody's now anticipates that a very large portion of the portfolio will default over the course of the transaction term. Coupled with the negative impact of significantly reduced property values, Moody's expects a substantial amount of losses on the securitized portfolio. Those losses will, given the back-loaded default risk profile and the anticipated work-out strategy for defaulted loans, crystallize only towards the end of the transaction term. The current subordination levels for Moody's rated classes, 18.9% and 13.4% for the Class A and the Class B Notes respectively, provide protection against losses. However, the likelihood of higher than expected losses on the portfolio has increased substantially, which results in the rating action. Since closing none of the loans have prepaid. At the same time, the loan portfolio only provides for limited scheduled principal repayment over time. As a result, unlike other large multi- borrower transactions (EMEA CMBS conduit deals), the Class A and the Class B Notes do not benefit from a meaningful increase in subordination levels since closing. In addition, the Class B Notes are subordinated to the Class A Notes in the capital structure. Due to this additional leverage, the higher portfolio risk assessment has a relatively bigger impact on the expected loss of the Class B Notes than on the expected loss of the Class A Notes. Moody's anticipates that INDUS (ECLIPSE 2007-1) plc is one of the most negatively affected EMEA CMBS conduit deals following the application of its updated central scenarios. 3) Moody's Portfolio Analysis Property Values. Property values across the UK have declined significantly until Q1 2009 and are expected to continue to decline at least until 2010. Moody's estimates that compared to the underwriter's values at closing, the values of the properties securing this transaction have declined by on aggregate 33% until the beginning of 2009 (ranging from 15% for the Forster Hall Loan to a 50% decline for the Agora Max Portfolio Loan, the Workspace Portfolio Loan and the Grafton Estate Portfolio Loan). Looking ahead, Moody's anticipates further declines until 2010, resulting in a 39% value decline compared to the U/W value at closing (with the Agora Max Portfolio Loan, the Workspace Portfolio Loan and the Grafton Estate Portfolio Loan being most affected). Based on this property value assessment, Moody's estimates that the transaction's early-2009 weighted average securitized loan-to- value ratio was 98% compared to the U/W LTV of 75% (both LTVs excluding the mark to market of long dated borrower level swaps). Due to the further envisaged declines, the WA LTV will increase in Moody's opinion to 109% in 2010 and will only gradually recover thereafter. Based on Moody's anticipated trough values, the LTVs for the securitized loans range between 152% (Workspace Portfolio Loan) and 67% (Pitch 2 Portfolio Loan). As three loans (Adelphi Loan, Criterion Loan and the Agora Max Portfolio Loan) have additional debt in the form of B-loans (amounting to GBP104.6 million on aggregate), based on estimated trough values, the whole loan leverage is on average 121%. Moody's has taken the anticipated property value development, including a gradual recovery from 2011 onwards, into account when analyzing the default risk at loan maturity and the loss given default for each securitized loan. A number of borrowers in the portfolio entered into long dated swaps in order to hedge interest rate risk. Given the current interest environment, those swaps are currently out of the money and potential swap termination costs rank senior to the securitized loans. Due to the swap maturity being after loan maturity, there is the risk that at loan maturity, the swaps are still out of the money thereby potentially increasing the refinancing exposure and/or reducing the available recovery. Moody's has taken those senior ranking swap termination costs into account when analyzing the recovery rates for potentially defaulting loans. Refinancing Risk. The transaction's exposure to loans maturing in the short-term (2009 and 2010) is low. None of the loans have an extension option, so that, 1.3% of the current portfolio matures in 2010, 48.5% in 2011 and 2012 and 24.2% in 2013 and 2014 and 26.0% after 2014. However, as Moody's expects property values in the UK to only slowly recover from 2011 onwards, all loans will be still highly leveraged at their respective maturity dates, especially when taking into account the B-loans for three of the loans. Consequently, in Moody's view, for almost all of the loans, the default risk at maturity has increased substantially compared to the closing analysis. Term Default Risk. The occupational markets in the UK are currently characterized by falling rents, increasing vacancy rates and higher than average tenant default rates. Taking into account the lease profile of the respective loans, the Agora Max Portfolio Loan, the Greater London Portfolio, the Workspace Portfolio Loan, the Gullwing Portfolio Loan, the Alba Gate Loan and the St. George Portfolio Loan could be in Moody's view especially exposed to weakening occupational markets. The balance of the portfolio benefits from long-dated leases. Based on the current lease profile, Moody's has incorporated into its analysis an allowance for deterioration in coverage ratios and a higher than average tenant default rates on most of the loans in turn increasing the term default risk assumption for the respective loans. Loans in Default and/or Special Servicing. Two loans, the Apex loan (0.5%) and the Agora Max Portfolio Loan (7.4%) are currently in special servicing. The Apex Loan has not paid its debt service due since July 2008. In Moody's analysis, this loan is deemed to be defaulted. The Agora Max Portfolio Loan was transferred to special servicing in May 2009. The largest of the three shopping centres securing the Agora Max Portfolio Loan was subject to a Compulsory Purchase Order and the net sale proceeds was insufficient to fully repay the senior debt allocated against this property and no payment was made to the junior lender. Furthermore two loans, the Adelphi Loan and the Greater London Portfolio Loan are in default due to an uncured LTV default covenant breach. A further loan (the Lloyds Portfolio Loan) had an event of default at the April 2009 IPD due to an LTV default covenant breach, however the cure period is still in effect. Overall Default Risk. Based on its revised term and maturity default risk assessment for the securitized loans, Moody's anticipates that a very large portion of the portfolio will default over the course of the transaction term. For all the loans maturing before 2013, the default risk is predominantly driven by refinancing risk. Besides the Apex Loan that already suffered a payment default, the Agora Max Loan has currently in Moody's view the highest default risk, while the Pitch 2 Portfolio Loan has the lowest risk of defaulting. Concentration Risk. The portfolio securitized in INDUS (ECLIPSE 2007-1) plc exhibits an average concentration in terms of property types (49% office) and property location (100% UK and 60% Greater London). In Moody's view, this limits the potential benefits from different markets performing differently over time. Work-Out Strategy. In scenarios where a loan defaults, Moody's current expectation is that the servicer will most likely not pursue an immediate sale of the property in the depressed market conditions. Therefore, Moody's has assumed that in most cases, upon default, a sale of the mortgaged properties and ultimate work-out of the loan will occur at a later point in time. Increased Portfolio Loss Exposure. Taking into account the increased default risk of the loans, the most recent performance of the UK commercial property markets, Moody's opinion about future property value performance and the most likely work-out strategies for defaulted loans, Moody's anticipates a substantial amount of losses on the securitized portfolio, which will, given the back-loaded default risk profile and the anticipated work-out strategy for defaulted loans, crystallize only towards the end of the transaction term. LONDON WELSH: In Administration; Tenon Recovery Appointed --------------------------------------------------------- Carl Jackson and Gareth Roberts of leading turnaround, restructuring and insolvency specialist, Tenon Recovery, were appointed joint administrators to London Welsh Rugby Club on Tuesday, June 23, 2009. London Welsh Rugby Club, founded in 1885 and now in the top six of National Division One, has played a vital role both in the local community and in British Rugby. Around 177 Welsh international players have played for the club and a further 43 of these went on to join the British Lions squad. The club recently made the decision to turn professional and has developed a three-year plan to reach the Guinness Premiership. However, investment in top quality players and experienced training and coaching staff has come at great personal cost to the principal investor and Chairman of the Club, Kelvin Bryon. For London Welsh to progress towards promotion to the Premiership, the Club will need to secure additional investment from either another individual or a consortium of investors. It is hoping to generate interest of an additional GBP1 to GBP1.5 million a season. There are sufficient funds available for the Club to continue to operate for one more month but without additional income, the Club will be unable to continue to trade in its present form. This is likely to result in exclusion from the Championship and the British and Irish Cup by the RFU and the Club will revert to playing local level rugby. Carl Jackson, National Head of Tenon Recovery, said: "London Welsh Rugby Club has a long and proud history in British rugby and this could prove an exciting opportunity to invest in the future Premiership aspirations of London Welsh. We hope to preserve the value and heritage of London Welsh and deliver a positive outcome for all involved. "We will work closely with the Board to attract interested parties over the next month and urge anyone who is interested to get in contact with us immediately." Kelvin Bryon, Chairman of London Welsh Rugby Club, said: "I have seen London Welsh Rugby Club over the last twenty years rise from almost being relegated from Division 5 South to become one of the top eighteen clubs in England. "London Welsh is within striking distance of the elite level of English rugby but I am unable to continue being the principal investor of the Club. To continue and achieve our dream of reaching the Premiership, we need other investors to step forward to join us on our exciting journey." John Dawes, Club President and Captain of the 1971 Lions Squad has said: "We have seen recently that as a result of its resurgence the Club has a vital role to play in the future of English and Welsh Rugby. The newly created Championship has given the Club the opportunity to take advantage of the exciting opportunities presented by the creation of this new competition." PAUL GREEN: Seeks to Cut Debt Pile Through CVA ---------------------------------------------- Helen Morris at PrintWeek reports that Paul Green Printing has proposed a Company Voluntary Arrangement (CVA) in an attempt to reduce its debt pile of almost GBP1.8 million. PrintWeek relates chartered accountant Langley Group, which has been appointed as nominee to the CVA proposal, said a copy of the proposal had been entered into court on June 15. PrintWeek discloses according to the report, the company owes just under GBP600,000 in unsecured debts and GBP1.2 million in secured debt. Printweek, citing the report, recounts that in the first two months of this year, the company had experienced "extremely disappointing sales" which led to "a reluctance" by the bank to release funds to the business "even when [it] was well within the agreed facility". PrintWeek says a meeting of creditors to consider the 43.38 pence in the pound proposal, will be held on July 3, 2009. In a statement from the Langley Group to creditors, Alan Bradstock, insolvency practitioner and Langley Group partner, as cited by PrintWeek, said: "If creditors reject the proposal, then I consider it is inevitable that a creditor will petition for the compulsory winding up of the company." Based in east London, Paul Green Printing produces brochures, reports, magazines, point-of-sale products and catalogues. SETANTA SPORTS: Liberty Global Eyes Irish Unit ---------------------------------------------- Amanda Andrews and Rowena Mason at Telegraph.co.uk report that US-based cable firm Liberty Global is eyeing the Irish unit of sports broadcaster Setanta Sports. According to Telegraph.co.uk, any bid would be likely to come through Liberty's European content arm, Chellomedia, which is the owner of cable television operator UPC Ireland. Telegraph.co.uk says other parties likely to bid for Setanta Ireland include the existing management and Denis Desmond, an Irish businessman who has a 20pc stake in the unit. On June 25, 2009, the Troubled Company Reporter-Europe, citing Reuters reported that Setanta Sports went into administration after attempts to secure additional financing failed. Reuters related Setanta Sports, appointed Deloitte as administrators on Tuesday. 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 recalled the English Premier League terminated its live match contract with Setanta Friday last week after the company failed to meet its payments. The League then awarded the lucrative rights to Disney ESPN (DIS.N) on Monday, Reuters said. 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. * ING Says European Emerging-Market Debt Default to Peak in 2010 ---------------------------------------------------------------- Laura Cochrane at Bloomberg News reports that according to ING Groep NV's David Spegel, a quarter of emerging-market corporate bonds ranked below investment grade may be in default next year. Bloomberg News relates Mr. Spegel, head of emerging- market strategy at ING in New York, wrote in a research note received June 19 the failure rate may jump to 25.5 percent in March from 6.5 percent last month based on the current level of missed coupon payments triggering defaults. Mr. Spegel, as cited by Bloomberg News, said emerging-market borrowers missed 13.9 percent of the US$450 billion of coupon payments on international bonds due in May. Bloomberg News discloses according to Mr. Spegel, a slowing in the rate of failed interest payments will result in defaults on emerging-market corporate bonds reaching a peak of only 11.35 percent in January next year. Mr. Spegel said central and eastern Europe will peak in February 2010 at 20.15 percent, Bloomberg News notes. * BOOK REVIEW: Instincts of the Herd in Peace and War ----------------------------------------------------- Author: Wilfred Trotter Publisher: Beard Books Softcover: 264 pages List Price: US$34.95 by Henry Berry Instincts of the Herd in Peace and War examines how individuals become involved in social groups and how this affects their involvement in a nation, the ultimate social group. According to Trotter, human beings are, by nature, "gregarious," and their gregariousness is instinctive. Consequently, individuals are compelled to attach themselves to a primary social group and assume a role within it. Individuals may form attachments to other groups and take different or modified roles within them, but it is their attachment to, identification with, and role within a primary group that lends them their personal identity, sense of purpose, and sense of self-worth and fulfillment. Although a nation is the ultimate group, it becomes the primary social group only in the case of war. To Trotter, war and peace are not mutually exclusive social states. They form a continuum of historical social states that comprise the entirety of all possible social states. There can be no utopias, nor can there be eternal wars. The flow of events brings periods of peace and war. The events in Europe preceding World War I -- the period during which Trotter wrote the first edition of his book -- were a test case for the author's observations and conclusions. The people of England, France, Germany, and other European nations became focused on defending their nations against external enemies. Societies (i. e., nations) underwent upheaval as their people turned from limited involvement with smaller social groups to large-scale involvement in national defense. Trotter's book is recognized as a classic in the field of sociology, a relatively new science in the latter 1800s and early 1900s. Trotter and others sought to understand the group dynamics of democratic societies, which were replacing the class structure of aristocratic, hierarchal societies. Trotter also sought to counter the misleading effects of psychology, especially the influence of Freudian psychology, which saw individuals as influenced mostly by inner, largely subconscious feelings and experiences. Trotter argues that psychology is not an independent field. Says the author, "The two fields -- the social and the individual -- are absolutely continuous; all human psychology, it is contended, must be the psychology of associated man, since man as a solitary animal is unknown to us . . . ." Even a hermit is born in society; and society has an interest in hermits for what they may reflect about conditions of society. This reprint is the second edition of Trotter's classic work. The second edition includes the author's 45-page "Postscript of 1919," assaying the conditions of peace after World War I had ended. "With the cessation of war this great stream of moral power [in defending the nation] began rapidly to dry up at its source," observes Trotter. He proffers that the aim of statecraft is keeping this "great stream of moral power" in times of peace. He believes that the progressive evolution of society can be accomplished by a "scientific statecraft [applying] the intellect as an active factor in the direction of society." While basically a work of sociology, Trotter's book can be a picture of individual and group behavior for leaders in any organization where motivation, unity, and progress are important. This includes business leaders, especially leaders of larger companies with multiple business sites and different employee segments. Business leaders will immediately grasp the truth and relevance of the author's view of society and glean from it essential lessons and leadership principles, practices, and goals. Wilfred Trotter (1872-1939) was an English surgeon as well as an influential sociologist. ********* 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 * * *