/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/090720.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 Monday, July 20, 2009, Vol. 10, No. 141 Headlines A U S T R I A AUSTRIAN AIRLINES: Lufthansa Submits New Antitrust Concessions CSC COMPUTER: Creditors Must File Claims by July 27 ELEGANTVERFLIESUNGEN CH. BROD: Claims Filing Deadline is July 27 LOACKER OFFICE: Claims Filing Deadline is July 27 PMT REALKANZLEI: Creditors Must File Claims by July 27 F I N L A N D M-REAL CORP: Restructuring Won't Affect S&P's 'CCC+' Rating UPM-KYMMENE CORP: Restructuring Won't Affect S&P's 'BB+' Rating F R A N C E FCC SPARC: S&P Withdraws 'BB' Rating on Class D Notes NEW FABRIS: Renault to Buy Parts Inventory RENAULT SA: To Acquire Parts Inventory of New Fabris SOCIETE GENERALE: S&P Cuts Ratings on EUR10 Mil. Notes to 'B' G E R M A N Y ARCANDOR AG: Restructuring Adviser Quits ESCADA AG: Insolvency More Likely; Bondholders Snub Bond Swap GENERAL MOTORS: Buyers Have Until Today to Submit Final Opel Bids WADAN YARDS: May Secure Big Orders, Owner Says I R E L A N D ASHFIELD COLLEGE: Court Appoints Liquidator Following Insolvency LARAGAN DEVELOPMENTS: Faces Liquidation; Survival Scheme Rejected WHITE'S HOTEL: Goes Into Receivership; KPMG Named as Receiver I T A L Y RISANAMENTO SPA: Board to Meet Today to Assess Financial Situation K A Z A K H S T A N AKJOL TRANS: Creditors Must File Claims by July 24 AVANGARD COMPANY: Creditors Must File Claims by July 24 BURABAI JSC: Creditors Must File Claims by July 24 FORMAT STROY: Creditors Must File Claims by July 24 MTS BIRLIK: Creditors Must File Claims by July 24 NURMANS LLP: Creditors Must File Claims by July 24 NURS SERVICE: Creditors Must File Claims by July 24 REGION TECH: Creditors Must File Claims by July 24 SOAP LLC: Creditors Must File Claims by July 24 SVSK OIL: Creditors Must File Claims by July 24 K Y R G Y Z S T A N CROWN TRADING: Creditors Must File Claims by July 31 MAZGIL LLC: Creditors Must File Claims by July 31 N E T H E R L A N D S NEPTUNO CLO II: S&P Confirms 'BB-' Rating on Class sE Notes NEPTUNO CLO III: S&P Confirms 'BB-' Rating on Class E Notes R U S S I A CHEBOKSARSKIY STROITEL: Creditors Must File Claims by July 26 IC VTB: Fitch Assigns 'BB' Insurer Financial Strength Rating INTER-AVIA LLC: Creditors Must File Claims by July 26 STROY-SITI LLC: Creditors Must File Claims by July 26 VOLGO-STROY LLC: Creditors Must File Claims by July 26 S W I T Z E R L A N D ARCHITEKTUR ENZO: Creditors Must File Claims by July 24 BANQUE DE COMMERCE: Fitch Affirms Long-Term IDR at 'BB+' BLAUER OZEAN: Claims Filing Deadline is July 23 ESSOASE GMBH: Claims Filing Deadline is July 23 EURAG AG: Claims Filing Period Ends July 24 EXIM INVEST: Creditors Must File Claims by July 23 FC FUTURES: Claims Filing Deadline is July 24 GUIDE COMPANY: Claims Filing Deadline is July 23 TAXI-A, FUX: Claims Filing Period Ends July 23 TROTTMANN TECHNIK: Claims Filing Deadline is July 24 U K R A I N E CONCERN INTERNATIONAL: Creditors Must File Claims by July 24 EUROSERVICE-TOUR LLC: Creditors Must File Claims by July 24 FEMIDO LLC: Creditors Must File Claims by July 24 ICEBERG LLC: Creditors Must File Claims by July 24 VAMARIYA LLC: Creditors Must File Claims by July 24 U N I T E D K I N G D O M CHESTER ASSET: S&P Puts Low-B Rated Class C Notes on Watch Dev EMI GROUP: Terra Firma May Issue High-Yield Bond to Repay Debts LLOYDS BANKING: To Cut 1,200 Jobs in Cost-Saving Drive MIDWAY NEWCASTLE: In Administration; 70 Jobs Affected VIRGIN MEDIA: Fitch Affirms 'BB-' Long-Term Issuer Default Rating WEST BROMWICH: Former CEO Got GBP520,600 Pay-Off Last Year * Fitch Says European Auto Industry Outlook Remains Negative * BOND PRICING: For the Week July 13 to July 17, 2009 ********* ============= A U S T R I A ============= AUSTRIAN AIRLINES: Lufthansa Submits New Antitrust Concessions -------------------------------------------------------------- Gerrit Wiesmann at The Financial Times reports that Deutsche Lufthansa AG on Thursday offered new antitrust concessions to the European Commission in a bid to secure approval of its takeover of Austrian Airlines AG before the end of July. The FT relates the Commission confirmed receiving a new offer from Lufthansa, but declined to comment on the contents. Lufthansa's spokesman also refused to say on which routes the airline was offering concessions, the FT notes. According to the FT, Lufthansa can walk away from its proposed takeover of the troubled airline if the Commission fails to give the nod by month's end. Capital Injection As reported in the Troubled Company Reporter-Europe on July 16, 2009, the FT said Austrian Airlines on Tuesday warned it would need EUR1 billion (US$1.4 billion) in new funds if a takeover proposed by Lufthansa fails as the result of the row between the German airline and the European Commission over the terms of the deal. The FT disclosed Peter Malanik, Austrian Airline's co-chief executive, warned that the failure of the deal would result in the need for a huge capital injection and be followed by a radical downsizing of the airline -- which would then still need a strong partner. According to the FT, Peter Michaelis, chairman of Austrian Airline, told the carrier's shareholder meeting that if the transaction failed the company would need "more than twice" the EUR500 million pledged by the government in Vienna as part of the purchase by Lufthansa. Austrian Airlines, the FT said, lost more than EUR400 million last year and increased its debt to EUR1 billion, although half of this would in effect be absorbed by Vienna. On February 9, 2009, the Troubled Company Reporter-Europe reported that Reuters said Austrian state holding company and key Austrian Airlines shareholder OeIAG warned the Austrian flag carrier could go insolvent if a planned takeover by Germany's Lufthansa falls through. Austrian Airlines AG -- http://www.austrianairlines.co.at/deu/-- is an Austria-based holding company of Austrian Airlines Group, operating in the air transportation sector. The Group is comprised of Austrian Airlines, an operator of scheduled passenger flights; Lauda Air, which is engaged in the charter flight sector, and Tyrolean Airways, which operates as a short-haul carrier under the consumer brand Austrian arrows. The Company divides its activities into three segments: scheduled services, charter and complementary services. The scheduled flights of the Group operate under the brands of Austrian and Austrian arrows, while charter flights are handled under the Lauda Air brand. The Company has six affiliated companies and six wholly owned subsidiaries, including Lauda Air Luftfahrt GmbH, Austrian Airlines Lease & Finance Company Ltd., AUA Beteiligungen GmbH, Austrian Airlines Technik Marketing GmbH, Austrian Airlines Technik Bratislava sro and Tyrolean Airways TirolerLuftfahrt GmbH. CSC COMPUTER: Creditors Must File Claims by July 27 --------------------------------------------------- Creditors of CSC Computer Service Components GmbH have until July 27, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for August 3, 2009 at 10:30 a.m. For further information, contact the company's administrator: Dr. Wilfried Aichinger Italienerstrasse 13/5 9500 Villach Austria Tel: 04242/29992 Fax: 04242/27666 E-mail: office@abp-law.com ELEGANTVERFLIESUNGEN CH. BROD: Claims Filing Deadline is July 27 ---------------------------------------------------------------- Creditors of Elegantverfliesungen Ch. Brod OG have until July 27, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for August 3, 2009 at 10:00 a.m. For further information, contact the company's administrator: Dr. Klaus Mitzner Hans-Gasser-Platz 3 Second Floor 9500 Villach Austria Tel: 04242/21223 Fax: 04242/21223-33 E-mail: mitzner.krautzer@utanet.at LOACKER OFFICE: Claims Filing Deadline is July 27 ------------------------------------------------- Creditors of Loacker Office GmbH have until July 27, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for August 6, 2009 at 9:30 a.m. For further information, contact the company's administrator: Dr. Bernhard Ess Hirschgraben 14 6800 Feldkirch Austria Tel: 05522/79090 Fax: 05522/79090-7 E-mail: rechtsanwalt-feldkirch@aon.at PMT REALKANZLEI: Creditors Must File Claims by July 27 ------------------------------------------------------ Creditors of PMT Realkanzlei Immobilien GmbH have until July 27, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for August 6, 2009 at 9:40 a.m. For further information, contact the company's administrator: Dr. Christoph Ganahl Schwefel 93/7 6850 Dornbirn Austria Tel: 05572/890890 Fax: 05572/890890-8 E-mail: kanzlei@ganahl.cc ============= F I N L A N D ============= M-REAL CORP: Restructuring Won't Affect S&P's 'CCC+' Rating ----------------------------------------------------------- Standard & Poor's Ratings Services said that the ratings and outlook on Finland-based forest product company M-real Corp.(CCC+/ Negative/C) are unaffected at this stage by a proposed ownership restructuring of assets in pulp company Botnia (30% owned by M- real) announced on July 15, 2009. The transaction could support M-real's liquidity position and ability to meet 2010 maturities by means of cash disposal proceeds and debt deconsolidation if closed, as envisaged, in the fourth quarter of 2009. However, the transaction is still in its early stages, the final conditions are partly unclear, and approval is pending. S&P will revisit the impact on M-real's liquidity position, credit quality, and recovery prospects once S&P obtain more clarity on the transaction and certainty that it will proceed. S&P believes that the impact on M-real's business risk is negative given that cost competitiveness and asset diversity is impaired, but that this is not likely to be a key rating driver given S&P's focus on M-real's vulnerable liquidity position. The proposed transaction would split Botnia's current operations into two parts: a Finland based operation owned 53% by Metsälitto (not rated, 60% owner of M-real), 30% by M-real, and 17% by UPM- Kymmene Corp. (BB+/Negative/B); and the Uruguay pulp mill to be 100% owned by UPM-Kymmene. As a consequence of the transaction making Metsälitto the direct majority owner of Botnia, M-real would move to equity accounting from an proportionate consolidation of Botnia. This would reduce reported debt by EUR250 million according to M-real (S&P understands this to be mainly medium to longer term debt). Furthermore, the announcement said that M-real would receive a cash payment of EUR300 million as part of the transaction. The funding and timing of these cash transfers are partly unclear to us at this stage. Should the transaction proceed, S&P notes the possibility of a recovery and issue rating revision as a result of revised assumptions about the hypothetical path to default, valuation, and capital structure. The likelihood and direction of such a change is unclear at present. UPM-KYMMENE CORP: Restructuring Won't Affect S&P's 'BB+' Rating --------------------------------------------------------------- Standard & Poor's Ratings Services said that the rating and outlook on Finland-based forest product company UPM-Kymmene Corp. (BB+/Negative/B) is unaffected at this stage by a proposed restructuring of the company's stake in pulp producer Botnia announced on July 15, 2009. On the basis of available information, S&P currently views the impact on UPM-Kymmene's credit quality as neutral. S&P believes there will be a slight negative financial impact from accumulating an additional EUR140 million in debt at a time when cash preservation would support credit quality. However, this is balanced, in S&P's view, by a positive impact on business risk resulting from increased control of and access to low-cost South America-based pulp-production while reducing dependence on higher- cost pulp production based in Finland, in line with company strategy. The transaction is still in its early stages pending ordinary approval, and is expected to close during the fourth quarter of 2009. S&P might revisit its position as the transaction moves closer to closure and with more detailed information. The transaction with Finland-based forest product company Metsäliitto (not rated) would make UPM-Kymmene the 100% owner of Botnia's 1.1 million ton Uruguay pulp-mill, while reducing the company's stake in the remaining Botnia group (focusing on Finland based pulp production) to 17% from 47%. UPM-Kymmene would also acquire 1.2% of the shares in Finland-based power company PVO Oy from Botnia. Including a cash proportion of EUR90 million, the transaction is said by UPM-Kymmene to increase reported net debt by EUR400 million. S&P already includes about EUR270 million of proportionately consolidated Botnia debt when calculating UPM- Kymmene's adjusted debt. Given the low cost position, S&P envisages that the cash flow contribution in terms of funds from operations is higher than the EUR125 million currently consolidated by us on an annual basis, with proportionately better free operating cash flow generation given low capital expenditure needs. =========== F R A N C E =========== FCC SPARC: S&P Withdraws 'BB' Rating on Class D Notes ----------------------------------------------------- Standard & Poor's Ratings Services withdrew its 'BB' rating on the class D notes issued by FCC SPARC Europe (Junior). In conjunction with the annual reset process, the notes redeemed yesterday and thus S&P is withdrawing the rating. S&P will maintain S&P's ratings in the FCC SPARC Europe (Senior) transaction. FCC SPARC Europe (Junior) involves the securitization of the payments related to four quota share reinsurance agreements with reinsurer Nexgen Reinsurance Ltd. The agreements cover the risk on a defined individual motor insurance policy book in four countries: Belgium, Germany, Italy, and Spain. NEW FABRIS: Renault to Buy Parts Inventory ------------------------------------------ Adam Mitchell at Dow Jones Newswires reports that Renault SA Thursday said it will buy the parts inventory of its newly liquidated subcontractor New Fabris. The company didn't say how much it intends to pay. Pay Row On July 14, 2009, the Troubled Company Reporter-Europe, citing Bloomberg News, reported that fired workers at bankrupt French auto-industry supplier New Fabris threatened to blow up their factory along with parts for Renault SA and PSA Peugeot Citroen worth millions of euros if the carmakers don’t meet demands for severance pay. Bloomberg disclosed Guy Eyermann, the plant's works-council secretary and an official of the Confederation Generale du Travail union, said the employees were occupying the factory and planned to ignite gas canisters at the plant in Chatellerault, western France, if its two main clients failed to pay EUR30,000 (US$42,000) by July 31 to each of the 366 workers. The CGT, Bloomberg said, was pressing each carmaker to pay EUR5.5 million to cover the severance demands. About Renault Renault SA -- http://www.renault.com/-- is a France-based company primarily engaged in the manufacture of automobiles and related services. The Company has two main areas of business activity: the Automobile division, which handles the design, manufacture and marketing of passenger cars and commercial vehicles, under Renault, Renault Samsung Motors and Dacia brands, and the Sales Financing division, which provides financial and commercial services related to the Company's sales activities, and is comprised of RCI Banque and its subsidiaries. The Company operates worldwide via a group of subsidiaries and dependant companies, including wholly owned Renault SAS, 99.43%-owned Dacia, 44.3%-owned Nissan Motor and 20.7%-owned AB Volvo, among others. About New Fabris Based in Chatellerault, France, New Fabris supplies a wide range of parts to Peugeot and Citroen. It was declared bankrupt on June 16. Fabris, founded in 1947 by brothers Eugene and Quentin Fabris, used to make sewing machine parts. It branched out into the auto sector, employing up to 800 workers in the 1990s. RENAULT SA: To Acquire Parts Inventory of New Fabris ---------------------------------------------------- Adam Mitchell at Dow Jones Newswires reports that Renault SA Thursday said it will buy the parts inventory of its newly liquidated subcontractor New Fabris. The company didn't say how much it intends to pay. Pay Row On July 14, 2009, the Troubled Company Reporter-Europe, citing Bloomberg News, reported that fired workers at bankrupt French auto-industry supplier New Fabris threatened to blow up their factory along with parts for Renault SA and PSA Peugeot Citroen worth millions of euros if the carmakers don't meet demands for severance pay. Bloomberg disclosed Guy Eyermann, the plant's works-council secretary and an official of the Confederation Generale du Travail union, said the employees were occupying the factory and planned to ignite gas canisters at the plant in Chatellerault, western France, if its two main clients failed to pay EUR30,000 (US$42,000) by July 31 to each of the 366 workers. The CGT, Bloomberg said, was pressing each carmaker to pay EUR5.5 million to cover the severance demands. About New Fabris Based in Chatellerault, France, New Fabris supplies a wide range of parts to Peugeot and Citroen. It was declared bankrupt on June 16. Fabris, founded in 1947 by brothers Eugene and Quentin Fabris, used to make sewing machine parts. It branched out into the auto sector, employing up to 800 workers in the 1990s. Renault SA -- http://www.renault.com/-- is a France-based company primarily engaged in the manufacture of automobiles and related services. The Company has two main areas of business activity: the Automobile division, which handles the design, manufacture and marketing of passenger cars and commercial vehicles, under Renault, Renault Samsung Motors and Dacia brands, and the Sales Financing division, which provides financial and commercial services related to the Company's sales activities, and is comprised of RCI Banque and its subsidiaries. The Company operates worldwide via a group of subsidiaries and dependant companies, including wholly owned Renault SAS, 99.43%-owned Dacia, 44.3%-owned Nissan Motor and 20.7%-owned AB Volvo, among others. * * * As reported in the Troubled Company Reporter-Europe on June 23, 2009, Standard & Poor's Ratings Services said that it has lowered its long- and short-term corporate credit and debt ratings on Renault S.A. to the speculative-grade level of 'BB/B', from 'BBB-/ A-3'. S&P said the outlook is stable. SOCIETE GENERALE: S&P Cuts Ratings on EUR10 Mil. Notes to 'B' ------------------------------------------------------------- Standard & Poor's Ratings Services lowered to 'B' from 'BB', removed from CreditWatch negative, and then withdrew its credit ratings on the EUR10 million Giverny floating-rate credit-linked notes series 6719/04-09 issued by SGA Societe Generale Acceptance N.V. S&P recently received notification from the arranger of the early termination of the notes. The downgrade taken before the rating withdrawal reflects S&P's assessment of the credit deterioration of the assets in the transaction's underlying reference portfolio. S&P has lowered the rating to the level that, in S&P's view, is commensurate with the available credit enhancement for the notes. S&P placed the notes on CreditWatch negative on April 30, because the notes had a synthetic rated overcollateralization below 100% at a rating of 'BB' but an SROC of above 100% under the scenario that projects the existing portfolio 90 days forward, assuming that there is no asset rating migration in the portfolio. Therefore, in accordance with S&P's existing surveillance policy, S&P maintained the ratings at 'BB', but placed the notes on CreditWatch negative. The SROC of the notes is above 100% at a rating of 'B'. Therefore, before withdrawing the rating, S&P decided to resolve the CreditWatch status by lowering the rating to the rating level at which it currently passes SROC. ============= G E R M A N Y ============= ARCANDOR AG: Restructuring Adviser Quits ---------------------------------------- Gerrit Wiesmann at The Financial Times reports that Horst Piepenburg, Arcandor AG's restructuring adviser, has quit, blaming the company's main shareholder for lack of support. The FT relates Mr. Piepenburg said the management's plans to revive the company were "without foundation" as there was "no support from Arcandor's main shareholder Sal. Oppenheim," the German private bank. Citing a person familiar with the situation, the FT discloses the bank's partners had declined a request for more capital. According to the FT, Mr. Piepenburg's departure increases the chances that Arcandor's Karstadt department store unit and its Primondo mail-order business will be restructured and sold off in parts, or liquidated altogether in the coming months. 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. As previously reported in the The Troubled Company Reporter-Europe, on June 9, 2009, Arcandor filed for bankruptcy protection after the German government turned down its request for loan guarantees. On June 8, 2009, the government rejected two applications for help by the company, which employs 43,000 people. 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. ESCADA AG: Insolvency More Likely; Bondholders Snub Bond Swap ------------------------------------------------------------- John Glover and Benedikt Kammel at Bloomberg News report that only about 37% of Escada AG's bondholders agreed to exchange their bonds for a combination of cash and two new notes valued at 40 cents on the euro, leaving the company at greater risk of insolvency. According to Bloomberg, the company needs backing from at least 80 percent of bondholders to win support from UniCredit SpA for a EUR13 million (US$18.3 million) loan, and trigger a capital increase of at least EUR29 million backed by its main shareholders. "Insolvency looks somewhat more likely now," Bloomberg quoted Jonathan Moore, an analyst at Evolution Securities Ltd., as saying in a telephone interview. "They're going to have to come back with revised terms in the offer. Investors are voting with their feet." Escada, Bloomberg discloses, extended a cash bonus to the end of July for investors that back the swap. Bloomberg relates Bruno Saelzer, the company's chief executive officer, said it decided to extend the cash incentive period because not all investors were able to decide in time to secure the bonus by the previous expiry date on July 14. The company, Bloomberg notes, offers bonus of EUR25 per EUR1,000 of notes exchanged. ESCADA AG -- http://www.escada.com/-- is a Germany-based fashion group engaged in women's designer fashion. The Company is structured into two segments: ESCADA and PRIMERA. Under its core brand ESCADA, the Company sells women's designer fashions for daytime, evening, business, leisure, wellness and special occasions, as well as couture. The fashion range is supplemented with accessories like handbags, shoes and small leather goods. Fragrances, eyewear, kids wear and jewelry from licensed partners are also sold under the ESCADA brand. The Company also offers the ESCADA Sport product line with clothes and accesoires. Through its wholly owned subsidiary, PRIMERA AG, the Company additionally sells the mid-priced brands apriori, BiBA, cavita and Laurel. As of October 31, 2008, ESCADA AG operated 182 own shops and 225 franchise shops in more than 60 countries. Its manufacture capacities are mainly outsourced to partner operations, located in Germany, Italy, Eastern Europe and Asia. GENERAL MOTORS: Buyers Have Until Today to Submit Final Opel Bids ----------------------------------------------------------------- Jeff Green and Chris Reiter at Bloomberg News report that Magna International Inc., RHJ International SA and Beijing Automotive Industry Holding Co. have until today, July 20, to submit final offers for General Motors Corp.'s European unit Opel. Bloomberg relates GM said in a statement that once received, the final bids and GM's preliminary findings will be reviewed with the government in Germany and with other countries affected, as well as with the EU Commission and the Opel/Vauxhall Trust Board, set up by Germany as part of the agreement for government bridge loans. Citing one of the people with knowledge of the plans, Bloomberg discloses GM will present the Opel trust board with preliminary analysis by Wednesday, July 22. According to Bloomberg, GM intends to have a recommendation by the following week to present to its board of directors and the U.S. Treasury. Bloomerg notes the person said the recommendation, if approved, could come back to the Opel trust board for review that same week. The trust board must approve any bid before a deal is signed, Bloomberg says. Loan Guarantees As reported in the Troubled Company Reporter-Europe on July 17, 2009, The Wall Street Journal said the German government on Wednesday warned GM that, if it sells its European car business to anyone other than Magna, then Germany might withdraw its offer to provide state aid. The WSJ disclosed German politicians, facing national elections September 27, pledged to support Magna's plan with EUR4.5 billion (US$6.3 billion) in loan guarantees. German officials pointed out GM couldn't complete a deal without Germany's aid and approval, the WSJ said. According to the WSJ, German states that host Opel factories, and which are contributing to EUR1.5 billion of interim loans to keep Opel alive, also said Wednesday that an alternative buyer would have to renegotiate state aid. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM Europe is based in Zurich, Switzerland, while General Motors Latin America, Africa and Middle East is headquartered in Miramar, Florida. As reported by the Troubled Company Reporter, GM reported net loss of US$6.0 billion, including special items, in the first quarter of 2009. This compares with a reported net loss of US$3.3 billion in the year-ago quarter. As of March 31, 2009, GM had US$82.2 billion in total assets and US$172.8 billion in total liabilities, resulting in US$90.5 billion in stockholders' deficit. 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 counsel. 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. General Motors changed its name to Motors Liquidation Co. following the sale of its key assets to a company 60.8% owned by the U.S. Government. Bankruptcy Creditors' Service, Inc., publishes General Motors Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Motors Corp. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) WADAN YARDS: May Secure Big Orders, Owner Says ---------------------------------------------- Arno Schuetze and Aleksandras Budrys at Reuters report that Wadan Yards MTW GmbH is expected to secure big orders that may help stave off its collapse. Reuters relates a spokesman of Andrey Burlakov, the Russian investor who controls Wadan, said on Wednesday that Norilsk Nickel was likely to order ten ships and marine oil and gas platforms, although the Russian metals firm said it has no such plans. "Burlakov also anticipates that Gazprom (GAZP.MM: Quote, Profile, Research) subsidiary Gazflot will order several ships for transporting liquefied natural gas", Reuters quoted Mr. Burlakov's spokesman as saying. Mr. Burkalov, who is Chairman of Wadan, was also in negotiations with U.S. based Global Water Solutions about supplying ships specialized in the desalination of sea water, Reuters notes. Stena As reported in the Troubled Company Reporter-Europe on July 15, 2009, the Financial Times said that Marc Odebrecht, the insolvency manager for Wadan Yards' German facilities, failed to reach agreement with Sweden's Stena Line on completing two vessels currently under construction. Stena is one the yard's largest customers. Bankruptcy Financing The FT disclosed Mr. Odebrecht, who has been in charge of the Wismar and Warnemuende yards since they sought bankruptcy protection in June, said Friday that he had secured EUR190 million (US$266 million) of bankruptcy financing to allow work on the remaining uncompleted ships to continue, with 90 per cent of the money guaranteed by Germany's federal government and the remainder by banks. Wadan Yards MTW GmbH is a unit of Wadan Yards Group AS -- http://www.wadanyards.com/-- a multinational maritime engineering and construction group comprising leading German and Ukrainian ship yards. The group specializes in advanced marine solutions for hydrocarbon exploration, production and transportation, particularly for Arctic conditions. As reported in the Troubled Company Reporter-Europe on June 9, 2009, Wadan Yards MTW GmbH filed for insolvency in the District Court in Schwerin, Germany, putting 2,500 jobs at the shipyards in Wismar and Rostock at risk. ============= I R E L A N D ============= ASHFIELD COLLEGE: Court Appoints Liquidator Following Insolvency ---------------------------------------------------------------- Genevieve Carbery at The Irish Times reports that the High Court appointed a liquidator to Ashfield College Ltd. after being told it has "no possibility of survival as a going concern". The Irish Times relates the court heard the Dublin school has a deficit of some EUR1.1 million and is insolvent. Some 35 staff, many of whom were part time, were let go over two weeks ago and the terms of redundancy are being dealt with by the liquidator, director Ian Redmond told The Irish Times. The Irish Times discloses the petition to have the college wound up was moved by Dawn Maye of Belarmine Park, Stepaside, Co Dublin. LARAGAN DEVELOPMENTS: Faces Liquidation; Survival Scheme Rejected ----------------------------------------------------------------- The Irish Times reports that Laragan Developments Ltd. is facing liquidation after the High Court refused to approve a scheme of arrangement which was suggested to offer the company a reasonable prospect of survival. According to the Irish Times, Mr. Justice Frank Clarke turned down the scheme on grounds including his concern about the relationship between Laragan and Alan Hanly, of the Hanly group, and that Laragan was a "vehicle of convenience" for Mr. Hanly. Laragan, part of the Hanly group of construction and quarrying companies, has liabilities of EUR147 million and assets worth EUR2.35 million, the Irish Times discloses. The court, the Irish Times relates, heard EUR101 million of Laragan's liability is owed to Alan Hanly. Other main creditors include Anglo Irish Bank, a secured creditor, AIB, and the Revenue Commissioners, the Irish Times notes. Survival Scheme The Irish Times states under the survival scheme proposed by Paul McCann, a partner with Grant Thornton who was appointed examiner to Laragan last March, creditors were to receive between 30 per cent and 1 per cent of what they were owed, while trade creditors were to get a minimum of 6.4 per cent of what was due. As reported in the Troubled Company Reporter-Europe on July 16, 2009, RTE Business said 95 home buyers, who paid either EUR15,000 or EUR20,000, as deposits for apartments in Santry and Carrickmines in Dublin would have lost 99% of their money under the scheme, Laragan Developments Ltd. is part of the Hanly Group -- http://www.hanlygroup.com/-- which comprises six autonomous firms specializing in six different areas of quarrying and construction. WHITE'S HOTEL: Goes Into Receivership; KPMG Named as Receiver ------------------------------------------------------------- BreakingNews.ie reports that White's Hotel in Wexford has gone into receivership after running into financial difficulties as a result of the economic downturn. Kieran Wallace of KPMG has been appointed receiver to the hotel, the report discloses. According to the report, the hotel will continue to trade as normal during the receivership process. The receiver hopes to be in a position to announce a new operator shortly. Whites Hotel Wexford -- http://www.whitesofwexford.ie/-- is a 4-star hotel located in Wexford, Ireland. ========= I T A L Y ========= RISANAMENTO SPA: Board to Meet Today to Assess Financial Situation ------------------------------------------------------------------ Vincent Boland at The Financial Times reports that Risanamento SpA is set to hold an emergency meeting today, July 20, after a court asked it to respond to a prosecutor's request that it be declared bankrupt. The FT relates Risanamento, controlled by the property tycoon Luigi Zunino, said in a statement its board would meet to "assess the situation and take the necessary decisions" following the setting of a court hearing for July 29 to examine the company's financial position following a prosecutor's request that it be declared bankrupt. According to the FT, Risanamento, which has a property portfolio of 2.5m square meters with a value of EUR5 billion, is struggling to manage some EUR2.8 billion (US$3.9 billion) in net debt, owed to mainly Italian banks. The FT notes bankers in Milan said the chances of reaching an agreement with creditors would be complicated by the banks' reluctance to write down asset values as they seek to maintain and improve their own capital reserves. Lorenzo Totaro at Bloomberg News reports that Il Messaggero said the company may agree to borrow EUR340 million (US$479.5 million) from four banks to stave off bankruptcy. Bloomberg relates Il Messaggero, without saying where it got the information, reported Intesa Sanpaolo SpA, UniCredit SpA, Banca Popolare di Milano Scrl and Banca Monte dei Paschi di Siena SpA may provide the funds under a plan prepared by adviser Leonardo & Co. The plan will be discussed by Risanamento's board in today's emergency meeting. The FT recalls shares in Risanamento were suspended on the Milan bourse last week. The FT discloses a slump in the Italian property market due to the credit crisis has left the company's Santa Giulia development -- a huge housing and office complex on the outskirts of Milan -- unfinished. Headquartered in Milan, Italy, Risanamento SpA -- http://www.risanamentospa.it-- is a company engaged in the real estate sector. It is a part of the Zunino Group. Its main activities are real estate investments, real estate promotion and development. The Company provides its services through numerous subsidiaries and associated companies, such as Milano Santa Giulia SpA, Etoile ST. Florentin Sarl, Risanamento Europe Sarl and RI Investimenti Srl. Risanamento operates in the real estate promotion and development, and real estate investments sectors. The Company's main projects are the creation of the new Milano Santa Giulia district, and the redevelopment of the former Falck area in Sesto San Giovanni. =================== K A Z A K H S T A N =================== AKJOL TRANS: Creditors Must File Claims by July 24 -------------------------------------------------- Creditors of LLP Akjol Trans have until July 24, 2009, to submit proofs of claim to: Abai Str. 40-17 Petropavlovsk North Kazakhstan Kazakhstan The Specialized Inter-Regional Economic Court of North Kazakhstan commenced bankruptcy proceedings against the company on April 29, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of North Kazakhstan Brusilovsky Str. 60 Petropavlovsk North Kazakhstan Kazakhstan AVANGARD COMPANY: Creditors Must File Claims by July 24 ------------------------------------------------------- Creditors of LLP Avangard Company have until July 24, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Baizakov Str. 273b Almaty Kazakhstan The court commenced bankruptcy proceedings against the company on May 4, 2009. BURABAI JSC: Creditors Must File Claims by July 24 -------------------------------------------------- JSC Passanger Leasing Carriage Company Leasing Burabai's branch is currently undergoing liquidation. Creditors have until July 24, 2009 to submit proofs of claim to: Novaya Promyvka Kurort-Borovoye Shuchinsk Akmola region Kazakhstan Tel: 8 (71636) 6-60-73 FORMAT STROY: Creditors Must File Claims by July 24 --------------------------------------------------- Creditors of LLP Format Stroy have until July 24, 2009, to submit proofs of claim to: Abai Str. 40-17 Petropavlovsk North Kazakhstan Kazakhstan The Specialized Inter-Regional Economic Court of North Kazakhstan commenced bankruptcy proceedings against the company on April 30, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of North Kazakhstan Brusilovsky Str. 60 Petropavlovsk North Kazakhstan Kazakhstan MTS BIRLIK: Creditors Must File Claims by July 24 ------------------------------------------------- Creditors of LLP MTS Birlik have until July 24, 2009, to submit proofs of claim to: Micro district Molodejny, 43-52 Taldykorgan Almaty Kazakhstan The Specialized Inter-Regional Economic Court of Almaty commenced bankruptcy proceedings against the company on April 14, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of Almaty Tauelsyzdyk Str. 53 Taldykorgan Almaty Kazakhstan NURMANS LLP: Creditors Must File Claims by July 24 -------------------------------------------------- Creditors of LLP Nurmans have until July 24, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Mangistau Building of former kindergarten 51 Micro District 27 Aktau Mangistau Kazakhstan The court commenced bankruptcy proceedings against the company on May 8, 2009. NURS SERVICE: Creditors Must File Claims by July 24 --------------------------------------------------- Creditors of LLP Nurs Service have until July 24, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Baizakov Str. 273b Almaty Kazakhstan The court commenced bankruptcy proceedings against the company on May 5, 2009. REGION TECH: Creditors Must File Claims by July 24 -------------------------------------------------- Creditors of LLP Region Tech Resoursy have until July 24, 2009, to submit proofs of claim to: Nurmahanov Str. 31 Micro District Taugul 3 Almaty Kazakhstan The Specialized Inter-Regional Economic Court of Almaty commenced bankruptcy proceedings against the company on April 20, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of Almaty Baizakov Str. 273b Almaty Kazakhstan SOAP LLC: Creditors Must File Claims by July 24 ----------------------------------------------- Creditors of LLP Manufacturing Commercial Firm Soap have until July 24, 2009, to submit proofs of claim to: Masanchi Str. 98b-42 Almaty Kazakhstan Tel: 8 777 214 52-28 The Specialized Inter-Regional Economic Court of Almaty commenced bankruptcy proceedings against the company on April 20, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of Almaty Baizakov Str. 273b Almaty Kazakhstan SVSK OIL: Creditors Must File Claims by July 24 ----------------------------------------------- LLP SVSK Oil Company is currently undergoing liquidation. Creditors have until July 24, 2009, to submit proofs of claim to: Mahambetov Str. 28-1 Aktobe Aktube Kazakhstan =================== K Y R G Y Z S T A N =================== CROWN TRADING: Creditors Must File Claims by July 31 ---------------------------------------------------- LLC Crown Trading is currently undergoing liquidation. Creditors have until July 31, 2009, to submit proofs of claim to: Logvinenko Str. 37-17 Bishkek Kyrgyzstan Tel: (+996 312) 38-66-74 MAZGIL LLC: Creditors Must File Claims by July 31 ------------------------------------------------- Joint Kyrgyz Chinese LLC Mazgil is currently undergoing liquidation. Creditors have until July 31, 2009 to submit proofs of claim . Inquiries can be addressed to (+996 312) 65-66-87. ===================== N E T H E R L A N D S ===================== NEPTUNO CLO II: S&P Confirms 'BB-' Rating on Class sE Notes ----------------------------------------------------------- Standard & Poor's Ratings Services has confirmed its credit ratings on the outstanding notes issued by Neptuno CLO II B.V., following amendments made to the transaction documents. S&P has received information from the investment manager, Caja de Ahorros y Monte de Piedad de Madrid, that on June 23, the noteholders agreed to the amendments requested by the issuer, investment manager, trustee, and other transaction parties. Certain Amendments Made on June 23 The amended eligibility criteria allow the collateral manager to purchase unsecured senior loans and investment-grade bonds. Changes to the portfolio profile tests include, but are not limited to, the increase in the manager's ability to purchase unsecured senior loans, mezzanine obligations, second-lien loans, and high-yield bonds (increase of the combined bucket to a maximum of 25% from a maximum of 15%). A combined bucket for mezzanine obligations, second-lien loans, and high-yield bonds has been added with a maximum of 15%. This limit was not documented at closing. The senior secured loans bucket decreased to a minimum of 75% from a minimum of 85%. Other amendments addressed the removal of the maximum discount obligations limitations and the increase of the 'CCC' securities bucket to a maximum of 7.5% compared with 5.0% at closing. The amended discount obligation definition lowered the threshold for an asset to qualify as discounted, compared with the threshold at closing. This threshold level is specific to each type of underlying asset. In addition, a set of conditions need to be satisfied for a limited number of discounted assets to be carried at their par value to calculate the coverage tests. S&P's rating confirmation addresses only the effect of the proposed changes on S&P's current ratings. It does not address the effect of the proposed changes on the rights or interests of the noteholders. In S&P's opinion, the June 23 amendments have not had an adverse effect on the ratings in this transaction. On July 2, S&P placed the class C and D notes on CreditWatch negative. This CreditWatch placement was due to S&P's view of a credit deterioration increase of the underlying portfolio and unrelated to the June 23 document amendments. Ratings List Ratings Confirmed Neptuno CLO II B.V. EUR450 Million Senior Secured Floating-Rate Notes Class Rating ----- ------ A AAA B AA C A/Watch Neg D BBB-/Watch Neg sE BB- NEPTUNO CLO III: S&P Confirms 'BB-' Rating on Class E Notes ----------------------------------------------------------- Standard & Poor's Ratings Services has confirmed its credit ratings on the outstanding notes issued by Neptuno CLO III B.V., following amendments made to the transaction documents. S&P has received information from the investment manager, Caja de Ahorros y Monte de Piedad de Madrid, that on June 23, the noteholders agreed to the amendments requested by the issuer, investment manager, trustee, and other transaction parties. Certain Amendments Made on June 23 The amended eligibility criteria allow the collateral manager to purchase unsecured senior loans and investment-grade bonds. Changes to the portfolio profile tests include, but are not limited to, the increase in the manager's ability to purchase unsecured senior loans, mezzanine obligations, second-lien loans and high-yield bonds (increase of the combined bucket to a maximum of 25% from a maximum of 12.5%). A combined bucket for mezzanine obligations, second-lien loans and high-yield bonds has been added with a maximum of 15%. This limit was not documented at closing. The limitations for high-yield bonds was increased to a maximum bucket of 10% from a maximum bucket of 5% at closing. The senior secured loans bucket decreased to a minimum of 75% from minimum of 85%. Other amendments addressed the removal of the maximum discount obligations limitations and the increase of the 'CCC' securities bucket to a maximum of 7.5% compared with 5% at closing. The amended discount obligation definition lowered the threshold for an asset to qualify as discounted was compared with the threshold at closing. This threshold level is specific to each type of underlying asset. In addition, a set of conditions need to be satisfied for a limited number of discounted assets to be carried at their par value to calculate the coverage tests. S&P's rating confirmation addresses only the effect of the proposed changes on S&P's current ratings. It does not address the effect of the proposed changes on the rights or interests of the noteholders. In S&P's opinion, the June 23 amendments have not had an adverse effect on the ratings in this transaction. Ratings List Ratings Confirmed Neptuno CLO III B.V. EUR650 Million Senior Secured Floating-Rate Notes Class Rating ----- ------ A-1 AAA A-2 AAA B AA C A D BBB- E BB-/Watch Neg =========== R U S S I A =========== CHEBOKSARSKIY STROITEL: Creditors Must File Claims by July 26 ------------------------------------------------------------- Creditors of OJSC Cheboksarskiy Stroitel (TIN 21273226328) (Construction) have until July 26, 2009, to submit proofs of claims to: G. Ignatyev Temporary Insolvency Manager Office 31 Kalinina Str. 66 428020 Cheboksary Russia The Arbitration Court of Chuvashia will convene at 1:15 p.m. on September 28, 2009, to hear bankruptcy supervision procedure on the company. The case is docketed under Case No. ?79–3994/2009. The Debtor can be reached at: OJSC Cheboksarskiy Stroitel Petrova Str. 6 428020 Cheboksary Chuvashia Russia IC VTB: Fitch Assigns 'BB' Insurer Financial Strength Rating ------------------------------------------------------------ Fitch Ratings has assigned LLC IC VTB Insurance an International Insurer Financial Strength rating of 'BB' and a National IFS rating of 'AA-(rus)'. The Outlooks on both ratings are Stable. The ratings reflect support from the 100% shareholder, Bank VTB ('BBB'/Negative Outlook), the short track-record of VTBI's operations, and adequate but declining capitalization. They also reflect VTBI's strong growth to date with good prospects and improving underwriting profitability. In addition, the ratings benefit from a portfolio of good credit quality investments relative to peers, experienced management team, access to a strong distribution network through Russia's second largest bank, and a good reinsurance program. The ratings are constrained by the competitive market environment, aggressive growth and profitability targets set by the parent, and the lack of a track record of stable bottom line earnings. The Stable Outlook reflects Fitch's view that the company should remain relatively resilient to the current difficulties facing the Russian insurance market and the volatility of investment markets. VTBI's portfolio of business, focusing on voluntary health insurance and motor damage, has shown improving underwriting profitability, with stable loss ratios and improving expense ratios as the business gains scale. The company has a risk-averse allocation of assets within its investment portfolio, which should provide some stability in the face of continuing volatility of Russian investment markets. As at April 30, 2009, VTBI had minimal exposure to equities and a relatively small bond portfolio (26% of all investments) of fair quality, with 40% of bonds rated 'BB' or below. Fitch views positively, from the credit risk point of view, the high allocation (74%) to cash and deposits. The good credit quality of the banks where the deposits are held is also a positive rating factor, with 97% of all cash and deposits held in banks rated 'BBB' or 'BBB+'. Fitch views positively the support provided to date to VTBI by VTB Bank, in the form of capital injections in 2006 and 2008 (RUB395.5 million and RUB104.5 million respectively), strategic guidance at Board level, as well as operational support to risk management and investment functions. However, Fitch does not consider VTBI a core part of the VTB Group, due to its small scale and lack of contribution to bottom line earnings. The agency will continue to monitor the level of VTB Bank's involvement in the management of the company, and will view negatively any weakening in the willingness or ability of the bank to support its subsidiary. Any changes in the level of the rating of VTB Bank may have an impact on the rating of VTBI. VTBI's capital adequacy, both on the regulatory basis and according to Fitch's own calculations, has declined steadily since 2007 when the company began operations under its current ownership structure. The decline resulted from strong growth in premium volumes, averaging 111% compound annual growth over 2007-2008. Fitch expects growth to continue, albeit at a slower pace, but will view negatively any further deterioration in capital adequacy through continued volume growth or net losses. As VTBI operations are newly established, earnings volatility is significant and there is no track record, as yet, of stable reliable profitability. The company reported its first positive net results in 1Q09 of RUB93 million, after accumulating an aggregate loss of RUB175 million during its rapid expansion phase of 2006-2008, driven by high expenses, low underwriting profitability and low investment yield, due to the relatively conservative nature of the investment portfolio. The combined ratio remains relatively high compared to Fitch-rated peers (2007: 99%, 2008: 98%), reflective of VTBI's position in the highly competitive Russian insurance sector. VTBI business is focused on voluntary and compulsory insurance in both the retail and corporate segments, relying partly on the bancassurance distribution model through the bank branches of its parent bank. Around 50% of GWP in 2008 were distributed through bank branches of VTB in 2008. The company has risen from 120th position in the market in 2006 to rank 26th by GWP at end-Q109. Its shareholder funds stood at RUB685 million in Q109, with total assets of RUB2.55 billion. INTER-AVIA LLC: Creditors Must File Claims by July 26 ----------------------------------------------------- Creditors of LLC Inter-Avia Airlines (TIN 5020029984, PSRN 1025002594385) have until July 26, 2009, to submit proofs of claims to: V. Vakhnin Temporary Insolvency Manager Office 206 Volodarskogo Str. 9 440026 Penza Russia The Arbitration Court of Moscow will convene at 10:00 a.m. on December 17, 2009, to hear bankruptcy supervision procedure on the company. The case is docketed under Case No. ?40–20938/09–103- 58B. The Debtor can be reached at: LLC Inter-Avia Profsoyuznaya Str. 57 17420 Moscow Russia The Court is located at: The Arbitration Court of Moscow Courtroom 9014 B. Tulskaya Str. 17 Moscow Russia STROY-SITI LLC: Creditors Must File Claims by July 26 ----------------------------------------------------- Creditors of LLC Stroy-Siti (TIN 7726524511, PSRN 1057747520797) (Construction) have until July 26, 2009, to submit proofs of claims to: P. Shkuratovskiy Temporary Insolvency Manager B. Tishinskiy pereulok 38 123557 Moscow Russia The Arbitration Court of Moscow will convene at 10:45 a.m. on August 13, 2009, to hear bankruptcy supervision procedure on the company. The case is docketed under Case No. ?40–68288/08–44- 232B. The Debtor can be reached at: LLC Stroy-Siti Building 2 Fruktovaya Str. 7 117556 Moscow Russia VOLGO-STROY LLC: Creditors Must File Claims by July 26 ------------------------------------------------------ Creditors of LLC Volgo-Stroy-Materialy (TIN 3444111501, PSRN 1033400345439) (Construction Materials, Paint Manufacturing) have until July 26, 2009, to submit proofs of claims to: O. Glukhov Temporary Insolvency Manager Post User Box 546 450008 Ufa Russia The Arbitration Court of Volgogradskaya will convene at 10:20 a.m. on August 11, 2009, to hear bankruptcy supervision procedure on the company. The case is docketed under Case No. ? 12–6029/09. The Debtor can be reached at: LLC Volgo-Stroy-Materialy Office 514 Marshala Chuykova Str. 65 400005 Volgograd Russia The Court is located at: The Arbitration Court of Volgogradskaya 7-ya Gvardeyskaya Str. 2 400005 Volgograd Russia ===================== S W I T Z E R L A N D ===================== ARCHITEKTUR ENZO: Creditors Must File Claims by July 24 ------------------------------------------------------- Creditors of Architektur Enzo Ponato GmbH are requested to file their proofs of claim by July 24, 2009 to: Enzo Ponato Liquidator Weihergasse 5 3005 Bern Switzerland The company is currently undergoing liquidation in Bern. The decision about liquidation was accepted at an extraordinary general meeting held on May 25, 2009. BANQUE DE COMMERCE: Fitch Affirms Long-Term IDR at 'BB+' -------------------------------------------------------- Fitch Ratings has affirmed Switzerland-based Banque de Commerce et de Placements' ratings at Long-term Issuer Default 'BB+', Short-term IDR 'B', Individual 'C' and Support '4'. The Outlook on BCP's Long-term IDR is Stable. The IDRs and the Individual rating, while held back by the bank's moderate size, are based on its operations in the niche markets of trade finance and correspondent banking, and management's demonstrated expertise in these, the bank's thus far resilient and sound profitability, excellent asset quality and good capitalization with a growing capital base. The ratings also reflect BCP's exposure to emerging markets (19% of risk assets at end-2008), to operational risk in its generally well managed trade finance and foreign exchange trading activities and concentration in both its loan book and funding profile. There is a high proportion of short-term interbank funding but Fitch understands that this is not used to fund the bank's core business. Despite the volatility in commodity prices and a less favorable global trade climate in 2008 and the first half of 2009, BCP has maintained its profitability with gross revenue from trade finance and correspondent banking increasing 46% in 2008, aided by strong volume growth as well as inflation in commodity prices in H108. Foreign exchange trading also contributed to 2008 results, as did private banking operations. Operating and credit costs were well- contained in 2008, resulting in improved and sound cost/income (41.5%) and operating return on average equity (25.5%) ratios. Reflecting its business model, counterparty credit risk in its loan and interbank books is, in Fitch's opinion, BCP's main risk. Its loan book (20% of assets at end-2008) is relatively concentrated although this is, to some extent, mitigated by the short-term and revolving nature of BCP's lending, the availability of collateral and often long-standing customer relationships. The bank's interbank assets (68% of assets at end-2008) are predominantly short-term and, as with emerging market banks, often collateralised. BCP's asset quality is excellent despite a small increase in the bank's impaired loans ratio to 0.16% at end-2008 (from 0.02% at end-2007). BCP is moderately exposed to market risk due to mostly currency related proprietary trading positions and closely matched assets and liabilities, both in maturity and currency. Interest-rate risk is low and well-controlled. Although the bank's capital base remains small in absolute terms, BCP has increased equity markedly, and its Tier 1 ratio (under Basel II) at end-2008 was sound at 15.1%. In Fitch's rating criteria, a bank's standalone risk is reflected in Fitch's individual ratings and the prospect of external support is reflected in Fitch's support ratings. Collectively these ratings drive Fitch's Long- and Short-term IDRs. BLAUER OZEAN: Claims Filing Deadline is July 23 ----------------------------------------------- Creditors of Blauer Ozean GmbH are requested to file their proofs of claim by July 23, 2009, to: Lukas Rohr Liquidator Am Bach 8 5502 Hunzenschwil Switzerland The company is currently undergoing liquidation in Hunzenschwil. The decision about liquidation was accepted at a shareholders' meeting held on May 19, 2009. ESSOASE GMBH: Claims Filing Deadline is July 23 ----------------------------------------------- Creditors of Essoase GmbH are requested to file their proofs of claim by July 23, 2009, to: Ruth Bartschi Oberthalstrasse 14 3532 Zaziwil Switzerland The company is currently undergoing liquidation in Kirchdorf BE. The decision about liquidation was accepted at a shareholders' meeting held on June 2, 2009. EURAG AG: Claims Filing Period Ends July 24 ------------------------------------------- Creditors of Eurag AG are requested to file their proofs of claim by July 24, 2009, to: Peter Forster Kasionstrasse 30 5000 Aarau Switzerland The company is currently undergoing liquidation in Engelberg. The decision about liquidation was accepted at an extraordinary general meeting held on June 10, 2009. EXIM INVEST: Creditors Must File Claims by July 23 -------------------------------------------------- Creditors of EXIM INVEST AG are requested to file their proofs of claim by July 23, 2009, to: Mandataria Treuhand AG Bahnhofstrasse 23 6301 Zug Switzerland The company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at a general meeting held on May 25, 2009. FC FUTURES: Claims Filing Deadline is July 24 --------------------------------------------- Creditors of FC Futures Consulting GmbH are requested to file their proofs of claim by July 24, 2009, to: Virtue Trustees (Switzerland) AG Liquidator Wengistrasse 1 8004 Zurich Switzerland The company is currently undergoing liquidation in Zurich. The decision about liquidation was accepted at a shareholders' meeting held on May 4, 2009. GUIDE COMPANY: Claims Filing Deadline is July 23 ------------------------------------------------ Creditors of The Guide Company AG are requested to file their proofs of claim by July 23, 2009, to: The Guide Company AG Thurgauerstrasse 40 8050 Zurich Switzerland The company is currently undergoing liquidation in Zurich. The decision about liquidation was accepted at an extraordinary general meeting held on May 19, 2009. TAXI-A, FUX: Claims Filing Period Ends July 23 ---------------------------------------------- Creditors of Taxi-A, Fux Louis GmbH are requested to file their proofs of claim by July 23, 2009, to: Fux Louis Riedbachstrasse 23 3900 Brig Switzerland The company is currently undergoing liquidation in Brig-Glis. The decision about liquidation was accepted at a shareholders' meeting held on March 23, 2009. TROTTMANN TECHNIK: Claims Filing Deadline is July 24 ---------------------------------------------------- Creditors of Trottmann Technik GmbH are requested to file their proofs of claim by July 24, 2009, to: Willi E. Trottmann Liquidator Kirchrain 5 5504 Othmarsingen Switzerland The company is currently undergoing liquidation in Othmarsingen. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on May 29, 2009. ============= U K R A I N E ============= CONCERN INTERNATIONAL: Creditors Must File Claims by July 24 ------------------------------------------------------------ Creditors of Concern International Information and Marketing Center (code EDRPOU 34189811) have until July 24, 2009, to submit proofs of claim to: S. Kitsul Insolvency Manager Office 6 V. Kosniatin Str. 1, b. 1 Sniatin Ivano-Frankovsk Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company on May 13, 2009. The case is docketed under Case No. 50/315. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy Str. 44-b 01030 Kiev Ukraine The Debtor can be reached at: Concern International Information and Marketing Center Office 4 Khreschatik Str. 44-a 01001 Kiev Ukraine EUROSERVICE-TOUR LLC: Creditors Must File Claims by July 24 ----------------------------------------------------------- Creditors of LLC Euroservice-Tour (code EDRPOU 24728657) have until July 24, 2009, to submit proofs of claim to: S. Diachenko Insolvency Manager Bauman Str. 4 Irpen Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company on May 13, 2009. The case is docketed under Case No. 50/319. 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 Euroservice-Tour Turgenevskaya Str. 17 04050 Kiev Ukraine FEMIDO LLC: Creditors Must File Claims by July 24 ------------------------------------------------- Creditors of LLC Femido (code EDRPOU 32253319) have until July 24, 2009, to submit proofs of claim to: S. Gritsay Insolvency Manager Office 50 Heroes of Sevastopol Str. 12 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company on May 13, 2009. The case is docketed under Case No. 50/317. 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 Femido Glibochetskaya Str. 33-37 04050 Kiev Ukraine ICEBERG LLC: Creditors Must File Claims by July 24 ---------------------------------------------------- Creditors of LLC Iceberg (code EDRPOU 31455371) have until July 24, 2009, to submit proofs of claim to: S. Gritsay Insolvency Manager Office 50 Heroes of Sevastopol Str. 12 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company on May 13, 2009. The case is docketed under Case No. 50/318. 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 Iceberg Melnikov Str. 12 04050 Kiev Ukraine VAMARIYA LLC: Creditors Must File Claims by July 24 ---------------------------------------------------- Creditors of LLC Vamariya (code EDRPOU 32211813) have until July 24, 2009, to submit proofs of claim to: S. Gritsay Insolvency Manager Office 50 Heroes of Sevastopol Str. 12 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company on May 13, 2009. The case is docketed under Case No. 50/320. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy Street 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Vamariya Glibochetskaya Str. 28 04050 Kiev Ukraine =========================== U N I T E D K I N G D O M =========================== CHESTER ASSET: S&P Puts Low-B Rated Class C Notes on Watch Dev -------------------------------------------------------------- Standard & Poor's Ratings Services placed on CreditWatch developing its credit ratings on the class B and C notes issued by various Chester Asset Receivables Dealings PLC (Cards Trust I and II) transactions. At the same time, S&P kept on CreditWatch negative its ratings on the class A notes issued in these transactions. The rating actions follow worsening performance of the MBNA Bank Europe-originated U.K. credit card receivables that act as collateral in these asset-backed securities transactions. S&P has placed the notes on CreditWatch developing or kept them on CreditWatch negative while S&P conduct ongoing discussions with Bank of America, MBNA Bank Europe's parent company. S&P understands that Bank of America is currently evaluating alternatives to mitigate the risk associated with the worsening collateral performance. In the Cards Trust I transactions, charge-offs increased to 10.83% from 6.68% between November 2008 and May 2009, while the same loss figure in Cards Trust II is 11.65%, up from 7.48% over the same six-month period. So far S&P has no firm details on any action Bank of America may take due to the worsening collateral performance. As a result, S&P kept on CreditWatch negative S&P's ratings on the class A notes. If Bank of America takes no steps, or S&P consider the steps it takes to be insufficient, S&P would likely downgrade the notes in line with S&P's credit card criteria. While this downgrade risk also exists for the ratings on the class B and C notes, S&P placed these ratings on CreditWatch developing because S&P's analysis could deem the steps Bank of America takes to be material enough to warrant an upgrade, or insufficient enough to result in a downgrade. Due the poor collateral performance, on April 15, 2009, S&P downgraded Cards Trust I and II's class B and C notes. S&P will monitor closely any detailed actions Bank of America proposes and aim to resolve the CreditWatch placements in due course. Ratings List Ratings Placed on Creditwatch Developing Chester Asset Receivables Dealings No. 11 PLC GBP60 Million And EUR730 Million Asset-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- B BBB+/Watch Dev BBB+ C BB+/Watch Dev BB+ Chester Asset Receivables Dealings No. 12 PLC GBP300 Million Asset-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- B BBB+/Watch Dev BBB+ C BB+/Watch Dev BB+ Chester Asset Receivables Dealings 2001-B PLC GBP250 Million Asset-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- B BBB/Watch Dev BBB C BB/Watch Dev BB Chester Asset Receivables Dealings 2002-A PLC US$775.50 Million Asset-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- B BBB/Watch Dev BBB C BB/Watch Dev BB Chester Asset Receivables Dealings 2003-B PLC GBP250 Million Asset-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- B BBB/Watch Dev BBB C BB/Watch Dev BB Chester Asset Receivables Dealings 2003-C PLC EUR706 Million Asset-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- B BBB/Watch Dev BBB C BB/Watch Dev BB Chester Asset Receivables Dealings 2004-1 PLC GBP500 Million Asset-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- B BBB/Watch Dev BBB C BB/Watch Dev BB Chester Asset Receivables Dealings Issuer Ltd. 2004-C1 EUR175 Million Asset-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- C1 BB/Watch Dev BB Chester Asset Receivables Dealings Issuer Ltd. 2006-C1 GBP70 Million Asset-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- C BB/Watch Dev BB Chester Asset Receivables Dealings Issuer Ltd. 2004-B1 EUR125 Million Asset-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- B1 BBB/Watch Dev BBB Chester Asset Receivables Dealings Issuer Ltd. 2006-B1 GBP50 Million Asset-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- B1 BBB/Watch Dev BBB Ratings Remaining on Creditwatch Negative Chester Asset Receivables Dealings No. 11 PLC GBP60 Million And EUR730 Million Asset-Backed Floating-Rate Notes Class Rating ----- ------ A AAA/Watch Neg Chester Asset Receivables Dealings No. 12 PLC GBP300 Million Asset-Backed Floating-Rate Notes Class Rating ----- ------ A AAA/Watch Neg Chester Asset Receivables Dealings 2001-B PLC GBP250 Million Asset-Backed Floating-Rate Notes Class Rating ----- ------ A AAA/Watch Neg Chester Asset Receivables Dealings 2002-A PLC US$775.50 Million Asset-Backed Floating-Rate Notes Class Rating ----- ------ A AAA/Watch Neg Chester Asset Receivables Dealings 2003-B PLC GBP250 Million Asset-Backed Floating-Rate Notes Class Rating ----- ------ A AAA/Watch Neg Chester Asset Receivables Dealings 2003-C PLC EUR706 Million Asset-Backed Floating-Rate Notes Class Rating ----- ------ A AAA/Watch Neg Chester Asset Receivables Dealings 2004-1 PLC GBP500 Million Asset-Backed Floating-Rate Notes Class Rating ----- ------ A AAA/Watch Neg Chester Asset Receivables Dealings Issuer Ltd. 2004-A1 GBP300 million asset backed floating rate notes Class Rating ----- ------ A1 AAA/Watch Neg Chester Asset Receivables Dealings Issuer Ltd. 2004-A2 GBP250 million asset backed floating rate notes Class Rating ----- ------ A2 AAA/Watch Neg Chester Asset Receivables Dealings Issuer Ltd. 2006-A1 GBP250 million asset backed floating rate notes Class Rating ----- ------ A1 AAA/Watch Neg Chester Asset Receivables Dealings Issuer Ltd. 2008-A1 EUR350 million asset backed floating rate notes Class Rating ----- ------ A1 AAA/Watch Neg Chester Asset Receivables Dealings Issuer Ltd. 2008-A2 GBP300 million asset backed floating rate notes Class Rating ----- ------ A2 AAA/Watch Neg EMI GROUP: Terra Firma May Issue High-Yield Bond to Repay Debts --------------------------------------------------------------- Martin Arnold and Anousha Sakoui at The Financial Times report that private equity group Blackstone is advising its rival Terra Firma on a plan to issue high-yield bonds to repay Citigroup's GBP2.6 billion of loans to EMI Group Ltd. at a discount of 20-40 per cent to face value. According to the FT, the move would replace loans maturing in 2014 with longer-dated bonds with fewer covenants imposing strict conditions on performance and financing. Restructuring Talks On July 14, 2009, the Troubled Company Reporter-Europe, citing the FT, reported Terra Firma was in talks with Citi over a restructuring of EMI. The FT disclosed Guy Hands, head of Terra Firma, is offering to inject up to GBP300 million of fresh equity in EMI, while negotiating with Citi to write down a large chunk of the music label's debt. Options The FT notes people familiar with Citi however said it would prefer to sell the whole loan rather than taking a big writedown and keeping exposure to EMI. Citing people familiar with Terra Firma's strategy, the FT relates that while buying Citi out of the debt was a possibility being discussed, there were other options on the table and a decision may not be taken until September. The FT says another option being considered is to attract a new investor, such as a big sovereign wealth fund or distressed debt group, to buy out all of Citi's EMI loans. London-based EMI Group Limited -- http://www.emigroup.com/-- houses recorded music segment EMI Music and EMI Music Publishing. EMI Music distributes CDs, videos, and other formats primarily through imprints Capitol Music Group, EMI Records, and Virgin, and sports a roster of artists such as The Beastie Boys, Norah Jones, and Lenny Kravitz. EMI Music Publishing, the world's largest music publisher, handles the rights to more than a million songs. Private equity firm Terra Firma bought EMI for US$4.9 billion in 2007. LLOYDS BANKING: To Cut 1,200 Jobs in Cost-Saving Drive ------------------------------------------------------ Jon Menon and Andrew MacAskill at Bloomberg News report that Lloyds Banking Group Plc said it plans to cut a total of 1,200 jobs in its U.K. information technology and insurance units by the end of March 2010. Bloomberg relates Lloyds said 370 contract and agency employees will be affected by the cuts, which will be partially offset by the creation of 180 new posts in group operations. Lloyds, as cited by Bloomberg, said about 240 permanent jobs will go with the merger of marketing, finance and sales operations within its Scottish Widows and Clerical Medical insurance units. The bank said bank units in Edinburgh, Halifax and Southend will be affected, Bloomberg notes. Lloyds, 43 percent government-owned, is cutting jobs in an effort to save more than GBP1.5 billion (US$2.5 billion) by 2011 as it merges operations of HBOS Plc, acquired in January, Bloomberg notes. According to Bloomberg, the bank may have to sell branches or units to win European Union approval for Britain's plans to insure about GBP260 billion of its toxic and other assets. About Lloyds Banking Group PLC Lloyds Banking Group PLC (LON:LLOY) -- http://www.lloydsbankinggroup.com/-- formerly Lloyds TSB Group plc, is United Kingdom-based financial services company, whose businesses provide a range of banking and financial services in the United Kingdom and a limited number of locations overseas. The operations of Lloyds TSB Group in the United Kingdom were conducted through over 2,000 branches of Lloyds TSB Bank, Lloyds TSB Scotland plc and Cheltenham & Gloucester plc during the year ended December 31, 2007. Cheltenham & Gloucester plc (C&G) is the Company's specialist mortgage arranger. Following the transfer of its mortgage lending and deposits to Lloyds TSB Bank, during 2007, C&G arranges mortgages for Lloyds TSB Bank rather than for its own account. International business is conducted mainly in the United States and continental Europe. Lloyds TSB Group's services in these countries are offered through branches of Lloyds TSB Bank. In January 2009, the Company acquired HBOS plc. MIDWAY NEWCASTLE: In Administration; 70 Jobs Affected ----------------------------------------------------- virginmedia.com reports that Midway Newcastle, the studio behind Wheelman and Necessary Force, has been put into administration, resulting in the loss of 70 jobs. The report relates Midway Newcastle, along with Midway San Diego, were not included in Warner's recent acquisition of Midway, leaving them seeking new funding in order to remain afloat. The report says attempts to find a buyer for the UK studio failed. According to the report, an insolvency team will close the studio as soon as possible. VIRGIN MEDIA: Fitch Affirms 'BB-' Long-Term Issuer Default Rating ----------------------------------------------------------------- Fitch Ratings has affirmed UK cable operator Virgin Media Inc.'s Long-term Issuer Default Rating at 'BB-' with a Stable Outlook, and its Short-term IDR at 'B'. This follows the company's announcement of a upcoming tap issue to the recently completed US$750 million and EUR180 million Virgin Media Finance plc senior notes due 2016. The agency has also affirmed Virgin Media Finance's and Virgin Media Investment Holdings Limited's existing instrument ratings as detailed at the end of this comment. The proposed senior note tap issue of approximately US$300 million (GBP185 million equivalent) and application of proceeds in prepayment of senior debt will, on completion, further reduce the absolute quantum of Virgin Media's refinancing risk in 2012 by a similar amount (net of fees and expenses). "This is a further example of Virgin Media's proactive approach in addressing its refinancing risk, and although it does not solve the problem, each gradual reduction in the amount of debt which falls due at that time makes that risk a bit more manageable," said Michelle De Angelis, Senior Director in Fitch's Leveraged Finance team. Adjusting for a US$300 million issuance, Fitch estimates that senior leverage at end-Q109 would be further reduced to 2.6x from 2.8x (taking into account the US$750 million and EUR180 million senior note issuance completed in June 2009). The overall amount of net debt and total leverage would be broadly similar (other than accounting for payment of any fees and any original issue discount) at GBP5.9 billion and 4.6x operating cash flow. The current consumer recession requires a cautious assessment of near-term growth prospects for the business, but Virgin Media's Q109 core residential cable results (in terms of ARPU, Revenue Generating Units and churn) showed resilience to the effects of the economic conditions, which is not unexpected for a subscription telecoms business. However, business revenues, prepaid mobile and content can be more vulnerable in an economic downturn. Therefore, as signs of an economic recovery remain tentative, Fitch believes it will be important for Virgin Media to continue to demonstrate the resilience of its business model through the coming quarters. Virgin Media's position as a second incumbent in the UK market confers on it a strong operational risk profile. Although the UK market remains highly competitive, the agency believes that as time passes and broadband access speeds become increasingly important to customers, Virgin Media has been and will be able to differentiate itself from its competitors through its ability to offer superior speeds. This, together with a focus on de- leveraging through free cash flow generation, should position the company well in terms of its risk profile as it approaches its refinancing point. In addition, any further improvement in debt and cash flow credit metrics, combined with a mitigation of the remaining refinancing risk in 2012, could provide positive momentum to the ratings. The rating of the senior secured debt issued by Virgin Media Investment Holdings Limited is affirmed at 'BB+', indicating strong anticipated recoveries. The ratings of the various tranches of senior notes issued by Virgin Media Finance Plc are not affected by the issuance of an additional US$300 million and are affirmed at 'BB' -- one notch above the IDR, indicating above-average recoveries for these junior instruments. The tap issue will have the same rating. WEST BROMWICH: Former CEO Got GBP520,600 Pay-Off Last Year -----------------------------------=---------------------- Philip Aldrick at Telegraph.co.uk reports that Stephen Karle, former chief executive of West Bromwich Building Society, got a GBP520,600 pay-off last year, including an GBP82,000 bonus, despite steering the lender to the verge of bankruptcy after loading it with risky commercial loans. According to the report, when the results were published, West Brom made a GBP48.8 million pre-tax loss after GBP66 million of bad debts. The society, the report says, was on the brink of insolvency before the British government intervened at the eleventh hour with a new financial instrument that allowed the society to recapitalize. The report discloses Mr. Karle, who left the company in October at the height of the financial crisis, is also entitled to a GBP95,000-a-year pension from the age of 65 after building up a pot worth GBP1.3 million. He was replaced by Robert Sharpe, the former Portman boss. "All payments were in accordance with external legal advice. Only the payments that the board were advised should be paid were paid," the report quoted a West Brom spokesman as saying. West Bromwich Building Society, along with its subsidiaries -- http://www.westbrom.co.uk-- operates in three business segments. Retail lending is engaged in incorporating core society lending, mortgage company lending, private customer savings and financial services. Commercial is engaged in incorporating commercial lending. Property is engaged in property rental. Some of its wholly owned subsidiaries include West Bromwich Mortgage Company Limited, which holds and disposes debts secured on land and lend money on the security of land; West Bromwich Commercial Limited, which is engaged in commercial lending; MortgageForce Limited, which is a franchised mortgage broker; WBBS Computer Finance Limited, which is engaged in leasing and licensing computer equipment, and West Bromwich Homes Limited, which is engaged in investment in property for rental. * * * As reported in the Troubled Company Reporter-Europe on June 17, 2009, Moody's Investors Service changed the outlook on the E+ bank financial strength rating of West Bromwich Building Society to stable from negative. At the same time, Moody's affirmed West Brom's Baa3/Prime-3 long- and short-term debt and deposit ratings and Ca junior subordinated debt rating, and downgraded the entity's subordinated debt rating to Ca from Caa3. * Fitch Says European Auto Industry Outlook Remains Negative ------------------------------------------------------------ In advance of its forthcoming mid-year EMEA Industrials sector outlook update, Fitch Ratings says the credit outlook for European auto manufacturers and suppliers remains negative as the industry continues to experience one of its deepest declines while facing the prospect of anaemic global economic growth during 2010. "Depressed consumer spending and confidence will likely pressure new vehicle sales, impacting manufacturers' product mix, as consumers increasingly opt to purchase cheaper vehicles which are less profitable for manufacturers," said Emmanuel Bulle, Senior Director in Fitch's Industrials group. "Fitch is also concerned about the strong potential for a 'pay-back effect' on new vehicle sales when various incentive schemes stop, or when demand for incentivised purchases declines," Mr. Bulle added. Weak demand and lower sales will also exacerbate the general overcapacity of Europe's auto industry, and could lead to forced restructurings and strategic decisions. Manufacturers' financial structures have already been severely impacted and Fitch expects further volatility of, and stress on, financial profiles (as captured in its recent rating actions on the sector during March 2009), notably for profitability, cash generation and leverage. Refinancing risk for European auto manufacturers is expected to remain generally high due to their continuous funding needs and the higher risk-awareness of banks and capital markets to the sector. However, near-term liquidity is considered adequate, as all groups benefit from sufficient cash balances, credit facilities, alternative sources of financing and potential public support to cover anticipated negative free cash flow and short- term debt requirement. However, the role and possible support of governments and European institutions for auto manufacturers still remains uncertain. Despite these immediate challenges the auto industry does still benefit from strengths and opportunities, including long-term growth prospects. Worldwide growth in vehicle sales should be supported by emerging markets demand, continuous demographic expansion, and the lack of substitution products. The significant and pivotal importance of the auto industry in several countries and regions from a strategic, economic, political and social perspective provides further support to the auto sector as a whole. Issues affecting auto manufacturers also have a negative impact down the supply chain on auto suppliers. During H109 Fitch also took further negative rating actions and expects the downturn to further reduce profitability, cash flow generation and result in significantly higher financial leverage. "In particular, smaller to medium-sized -- suppliers are exposed to severe financial distress with the need for deep restructuring measures, and some have already filed for insolvency," Mr. Bulle added. Fitch believes that default rates for these companies will continue to remain above average levels, which will lead to accelerated consolidation with the larger, financially better-positioned players benefiting in the medium term. The agency also remains concerned about the weak credit quality of leveraged automotive credits. As of June 2009, 69% of credits in Fitch's portfolio of private shadow-rated European auto sector names were rated 'B-*' (B minus) and below (compared with 65% as of February 2009 and 55% at June 2008), with approximately half of the portfolio consisting of distressed and defaulted borrowers. Furthermore, the majority of performing companies in the portfolio continue to carry a Negative Outlook. While the liquidity profiles for many European suppliers materially tightened in recent months, Fitch expects liquidity for most of its publicly rated universe to remain adequate, supported by existing longer-term financings and moderate debt maturity profiles. At the same time however the auto supply industry's general refinancing risk remains high as a result of ongoing constrained credit markets and more limited availability of bank lending. The full mid-year EMEA Industrials sector outlook update report will be published during the week commencing July 20. * BOND PRICING: For the Week July 13 to July 17, 2009 ---------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRIA ------- CONWERT IMMO INV 1.500 11/12/2014 EUR 64.35 OESTER VOLKSBK 4.810 7/29/2025 EUR 63.89 OESTER VOLKSBK 5.270 2/8/2027 EUR 93.37 RAIFF CENTROBANK 12.000 7/17/2009 EUR 61.36 REPUBLIC OF AUST 3.124 10/10/2025 EUR 67.43 CZECH REPUBLIC -------------- CZECH REPUBLIC 2.750 1/16/2036 JPY 54.83 DENMARK ------- DANSKE BANK 5.375 9/29/2021 GBP 77.98 FRANCE ------ AIR FRANCE-KLM 4.970 4/1/2015 EUR 12.38 ALCATEL SA 4.750 1/1/2011 EUR 15.41 CALYON 6.000 6/18/2047 EUR 42.36 CAP GEMINI SA 2.500 1/1/2010 EUR 51.44 CAP GEMINI SOGET 1.000 1/1/2012 EUR 40.72 CAP GEMINI SOGET 3.500 1/1/2014 EUR 38.06 CIE FIN FONCIER 2.500 2/24/2031 CHF 73.83 CIE FIN FONCIER 3.875 4/25/2055 EUR 73.32 CLUB MEDITERRANE 4.375 11/1/2010 EUR 47.94 CMA CGM 5.500 5/16/2012 EUR 42.22 CMA CGM 5.500 5/16/2012 EUR 44.88 DEXIA MUNI AGNCY 4.680 3/9/2029 CAD 67.26 ESSILOR INT'L 1.500 7/2/2010 EUR 69.99 SOC AIR FRANCE 2.750 4/1/2020 EUR 18.77 GERMANY ------- BAYERISCHE LNDBK 4.500 2/7/2019 EUR 73.36 CITY OF KYIV 8.250 11/26/2012 USD 57.07 COMMERZBANK AG 4.125 9/13/2016 EUR 74.57 COMMERZBANK AG 6.625 8/30/2019 GBP 77.11 DEUTSCHE BK LOND 3.000 5/18/2012 CHF 69.81 DEUTSCHE BK LOND 1.000 3/31/2027 USD 42.70 IRELAND ------- ALFA BANK 8.625 12/9/2015 USD 79.58 ALFA BANK 8.635 2/22/2017 USD 74.68 ALLIED IRISH BKS 7.875 7/5/2023 GBP 71.97 ALLIED IRISH BKS 5.250 3/10/2025 GBP 52.89 ALLIED IRISH BKS 5.625 11/29/2030 GBP 52.96 BANESTO FINANC 6.120 11/7/2037 EUR 6.12 BANK OF IRELAND 4.875 1/22/2018 GBP 67.83 BANK OF IRELAND 4.625 2/27/2019 EUR 71.67 DALI CAPITAL 29 4.799 12/21/2037 GBP 74.36 DEPFA ACS BANK 1.650 12/20/2016 JPY 94.75 DEPFA ACS BANK 2.375 2/15/2019 CHF 93.84 DEPFA ACS BANK 0.500 3/3/2025 CAD 36.69 DEPFA ACS BANK 5.250 3/31/2025 CAD 73.57 DEPFA ACS BANK 4.600 12/5/2025 EUR 73.33 DEPFA ACS BANK 3.250 7/31/2031 CHF 88.82 DEPFA ACS BANK 4.900 8/24/2035 CAD 70.64 DEPFA BANK PLC 11.000 2/7/2011 BRL 67.39 UT2 FUNDING PLC 5.321 6/30/2016 EUR 37.55 ITALY ----- CIR SPA 5.750 12/16/2024 EUR 67.84 COMUNE DI MILANO 4.019 6/29/2035 EUR 70.02 LUXEMBOURG ---------- BANK OF MOSCOW 6.807 5/10/2017 USD 72.18 BREEZE 4.524 4/19/2027 EUR 88.86 CIRSA FIN LUX SA 8.750 5/15/2014 EUR 73.00 CIRSA FIN LUX SA 8.750 5/15/2014 EUR 73.60 CODERE FIN LUX 8.250 6/15/2015 EUR 59.25 CODERE FIN LUX 8.250 6/15/2015 EUR 60.21 COFINIMMO LUXEM 5.250 7/15/2014 EUR 66.31 CRC BREEZE 5.290 5/8/2026 EUR 62.98 GLOBUS CAPITAL 8.500 3/5/2012 USD 49.43 NETHERLANDS ----------- ABN AMRO BANK NV 3.375 8/15/2031 CHF 92.71 ABN AMRO BANK NV 7.412 6/29/2035 EUR 52.45 AIR BERLIN FINAN 1.500 4/11/2027 EUR 39.38 ALB FINANCE BV 9.750 2/14/2011 GBP 18.49 ALB FINANCE BV 8.750 4/20/2011 USD 20.98 ALB FINANCE BV 7.875 2/1/2012 EUR 18.48 ALB FINANCE BV 9.250 9/25/2013 USD 20.95 ALFA BK UKRAINE 9.750 12/22/2009 USD 75.47 ASTANA FINANCE 7.875 6/8/2010 EUR 17.50 ASTANA FINANCE 9.000 11/16/2011 USD 16.47 ATF CAPITAL BV 9.250 2/21/2014 USD 74.69 BK NED GEMEENTEN 0.500 6/27/2018 CAD 67.66 BK NED GEMEENTEN 0.500 2/24/2025 CAD 41.30 CEMEX FIN EUROPE 4.750 3/5/2014 EUR 64.81 CENTERCRDT INTL 8.625 1/30/2014 USD 70.94 CLONDALKIN BV 8.000 3/15/2014 EUR 62.84 CLONDALKIN BV 8.000 3/15/2014 EUR 63.28 JSC BANK GEORGIA 9.000 2/8/2012 USD 73.98 TURANALEM FIN BV 7.875 6/2/2010 USD 23.49 TURANALEM FIN BV 6.250 9/27/2011 EUR 19.48 TURANALEM FIN BV 7.750 4/25/2013 USD 21.45 TURANALEM FIN BV 8.000 3/24/2014 USD 21.94 TURANALEM FIN BV 8.500 2/10/2015 USD 21.93 TURANALEM FIN BV 8.250 1/22/2037 USD 19.39 TURANALEM FIN BV 8.250 1/22/2037 USD 19.45 ROMANIA ------- BUCHAREST 4.125 6/22/2015 EUR 77.68 SPAIN ----- AYT CEDULAS CAJA 3.750 6/30/2025 EUR 73.73 BALEAR GOV'T 4.063 11/23/2035 EUR 71.45 BANCAJA 4.375 2/14/2017 EUR 61.15 CAJA MADRID 4.125 3/24/2036 EUR 77.96 COMUN AUTO CANAR 3.900 11/30/2035 EUR 69.30 COMUN AUTO CANAR 4.200 10/25/2036 EUR 73.04 SWITZERLAND ----------- CYTOS BIOTECH 2.875 2/20/2012 CHF 42.25 UNITED KINGDOM -------------- ALFA-BANK CJSC 9.250 7/26/2010 USD 71.93 ALLIANC&LEIC BLD 5.250 3/6/2023 GBP 75.63 ALPHA CREDIT GRP 2.940 3/4/2035 JPY 57.68 AMLIN PLC 6.500 12/19/2026 GBP 69.73 ANGLIAN WAT FIN 2.400 4/20/2035 GBP 51.14 ARSENAL SEC 5.142 9/1/2029 GBP 71.05 ASPIRE DEFENCE 4.674 3/31/2040 GBP 69.88 ASPIRE DEFENCE 4.674 3/31/2040 GBP 70.14 AVIVA PLC 5.250 10/2/2023 EUR 75.78 AVIVA PLC 6.875 5/22/2038 EUR 70.75 AVIVA PLC 6.875 5/20/2058 GBP 71.3 AZOVSTAL 9.125 2/28/2011 USD 77.32 BARCLAYS BK PLC 11.650 5/20/2010 USD 46.38 BARCLAYS BK PLC 7.610 6/30/2011 USD 49.91 BL SUPER FINANCE 5.578 10/4/2025 GBP 70.84 BRADFORD&BIN BLD 7.625 2/16/2010 GBP 4.00 BRADFORD&BIN BLD 5.500 1/15/2018 GBP 3.99 BRADFORD&BIN BLD 5.750 12/12/2022 GBP 12.17 BRADFORD&BIN BLD 4.910 2/1/2047 EUR 58.70 BRIT INSURANCE 6.625 12/9/2030 GBP 58.80 BRITANNIA BLDG 5.750 12/2/2024 GBP 63.04 BRITANNIA BLDG 5.875 3/28/2033 GBP 62.26 BRITISH AIRWAYS 8.750 8/23/2016 GBP 73.73 BRITISH LAND CO 5.264 9/24/2035 GBP 71.34 BRITISH LAND CO 5.264 9/24/2035 GBP 70.78 BRITISH TEL PLC 5.750 12/7/2028 GBP 72.84 BRIXTON PLC 5.250 10/21/2015 GBP 74.57 BRIXTON PLC 6.000 9/30/2019 GBP 71.02 BROADGATE FINANC 4.999 10/5/2031 GBP 71.54 BROADGATE FINANC 5.098 4/5/2033 GBP 59.98 CATTLES PLC 7.875 1/17/2014 GBP 9.48 CATTLES PLC 8.125 7/5/2017 GBP 13.25 CGNU PLC 6.125 11/16/2026 GBP 70.82 CITY OF KIEV 8.000 11/6/2015 USD 53.74 CLERICAL MED FIN 6.450 7/5/2023 EUR 73.08 CONNECT M77/GSO 5.404 3/31/2034 GBP 71.78 CO-OPERATIVE BNK 5.625 11/16/2021 GBP 68.71 DAILY MAIL & GEN 5.750 12/7/2018 GBP 60.57 DAILY MAIL & GEN 6.375 6/21/2027 GBP 54.75 DELAMARE FINANCE 6.067 2/19/2029 GBP 72.48 PRUDENTIAL BANK 6.875 12/29/2021 GBP 58.51 ********* 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 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. 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