/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/090813.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Thursday, August 13, 2009, Vol. 10, No. 159 Headlines A U S T R I A FINE TIME: Creditors Must File Claims by August 18 FORTSCHRITT GRUBESIC: Claims Filing Period Ends August 18 GEA-TROCKENBAU & HANDEL: Claims Filing Deadline is August 18 HALTERMANN + SCHULTE: Creditors Must File Claims by August 19 K.A.N.E. HANDELS: Creditors Have Until August 19 to File Claims K.G. FASHION: Claims Filing Deadline is August 19 KEIS GMBH: Claims Filing Deadline is August 19 KNEISZ & PODY: Claims Filing Deadline is August 19 KURTA ROHINNENAUSBAU: Claims Filing Deadline is August 19 LOVO LIFESTYLE: Creditors Have Until August 19 to File Claims MAILS & MORE: Creditors Must File Claims by August 18 B E L G I U M FORTIS BANK: S&P Downgrades Ratings on EUR3 Bil. Notes to 'BB' B U L G A R I A CENTRAL EUROPEAN: Moody's Downgrades Corp. Family Rating to 'B2' F R A N C E IXIS CORPORATE: Moody's Lowers Rating on Class D Notes to 'Ca' G E R M A N Y DUERR AG: S&P Puts 'B+' Corp. Rating on CreditWatch Negative HAPAG-LLOYD: Owners May Seek EUR1.2BB Loan Guarantees From Gov't. I R E L A N D ACA EURO: Moody's Confirms 'Caa1' Rating on Class E Notes CHEYNE CLO: Moody's Cuts Ratings on Five Classes of Notes to 'C' CORSAIR FINANCE: Moody's Junks Ratings on Schuldschein CDO Notes ELAN CORPORATION: Files Declaratory Suit Against Biogen Idec ELEMENT SIX: Talks with Unions on Rescue Plan Collapse KHEOPS CDO: Moody's Cuts Ratings on Three Classes of Notes to 'Ca' I T A L Y ARES FINANCE: S&P Lowers Rating on Class F Notes to 'B' BANCA MONTE: Moody's Assigns 'D+' Bank Financial Strength Rating CARROZZERIA BERTONE: Fiat to Make Chrysler Cars in Italian Plants FIAT SPA: To Make Chrysler Cars at Bertone Plants K A Z A K H S T A N ADAL PLUS: Creditors Must File Claims by August 21 ASIA SERVICE: Creditors Must File Claims by August 21 ELECTRO SCHET: Creditors Must File Claims by August 21 KAZ COM: Creditors Must File Claims by August 21 L TRADE: Creditors Must File Claims by August 21 RASSVET XXI: Creditors Must File Claims by August 21 STAL IMPEX-S: Creditors Must File Claims by August 21 STAL MUNAI: Creditors Must File Claims by August 21 TALDYKORGANSKOYE URIDICHESKOYE: Claims Filing Deadline is Aug. 21 VOSTOK ENERGO: Creditors Must File Claims by August 21 K Y R G Y Z S T A N KANNA TRADE: Court Names A. Abyshov as Insolvency Manager N E T H E R L A N D S HALCYON STRUCTURED: Moody's Cuts Rating on Class E Notes to 'Ca' R U S S I A BABAEVSKAYA KHIM: Creditors Must File Claims by August 17 CONSTRUCTION EMPIRE: Bankruptcy Hearing Set August 17 CONSTRUCTIOON INVESTMENT: Creditors Must File Claims by August 17 LEXGARANT INSURANCE: S&P Puts 'B' Rating on CreditWatch Negative MDM BANK: Eyes 25% Loan Boost Following Ursa Merger MOBILE TELESYSTEMS: 2Q09 Net Income Down 15% to US$563 Million NOVOLIPETSK OJSC: Fitch Affirms Long-Term IDR at 'BB+' STAROMAYNSKIY MACHINERY: Creditors Must File Claims by August 17 STROY-INDUSTRIYA: Creditors Must File Claims by August 17 SUOYARVSKAYA CARDBOARD: Creditors Must File Claims by August 17 TMK OAO: In Refinacing Talks; Secures Financing for US$300MM Bond TOP-KOM-STROY: Creditors Must File Claims by August 17 VERKHNESINYACHIKHINSKIY: Claims Filing Period Ends August 17 S P A I N * SPAIN: 980 Travel Agencies Shut Down Due to Financial Crisis S W E D E N FORD MOTOR: Likely to Close Volvo Sale This Year, Sweden Says GENERAL MOTORS: Saab May Get Loan Guarantees Exceeding US$600 Mln S W I T Z E R L A N D ALPHASTREAM ASSET: Claims Filing Deadline is August 17 AURIUS GMBH: Creditors Must File Claims by August 31 AZA GASTRONOMIE: Claims Filing Deadline is August 17 CHEMIN OUEST: Claims Filing Deadline is August 17 CMBB IMMO: Creditors Must File Claims by August 17 FEURER + MOOSER: Creditors Have Until August 17 to File Claims GIVE HEAVY: Claims Filing Deadline is August 31 HIRSCHI-BAUMANN-IMMOBILIEN: Claims Filing Deadline is August 17 IMPERIAL ENERGY: Creditors Must File Claims by August 17 MENTAL.CH GMBH: Claims Filing Deadline is August 17 ZUBLER BAUMANAGEMENT: Claims Filing Deadline is August 17 U K R A I N E BRUSILOV AGRICULTURAL: Creditors Must File Claims by August 15 RUSANOV AGRO-INDUSTRIAL: Creditors Must File Claims by August 15 TERRA-1 LLC: Creditors Must File Claims by August 15 VASILYEVKA CAR: Creditors Must File Claims by August 15 U N I T E D K I N G D O M BAA LTD: Airport Traffic Down 2.4% in July 2009 BRITISH AIRWAYS: Accuses Virgin of Double Standards Over Tie-Ups EPIC PLC: S&P Downgrades Ratings on Six Classes of Notes to 'CCC-' EUROSAIL 2006: S&P Affirms 'CCC-' Ratings on 5 Classes of Notes GESB PLC: Moody's Updates Investors on Rating Actions on Bonds ITV PLC: Simon Fox Drops Out of Chief Executive Race ROYAL BANK: MCB Bank to Acquire Pakistan Unit for US$87 Million WEST BROMWICH: Fitch Affirms 'C' Rating on Tier 2 Debt Securities * Upcoming Meetings, Conferences and Seminars ********* ============= A U S T R I A ============= FINE TIME: Creditors Must File Claims by August 18 -------------------------------------------------- Creditors of Fine Time GmbH have until August 18, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for September 1, 2009 at 9:45 a.m. For further information, contact the company's administrator: Mag. Andrea Eisner Weyrgasse 8/7 1030 Wien Austria Tel: 712 04 77 Fax: 712 04 77/12 E-mail: office@ra-eisner.at FORTSCHRITT GRUBESIC: Claims Filing Period Ends August 18 --------------------------------------------------------- Creditors of FORTSCHRITT Grubesic Handel GmbH have until August 18, 2009 to file their proofs of claim. A court hearing for examination of the claims has been scheduled for September 1, 2009 at 9:15 a.m. For further information, contact the company's administrator: Dr. Gerhard Radlinger Backerstrasse 1/3/13 1010 Wien Austria Tel: 513 23 44 Fax: 513 23 44 15 E-mail: wien@kosch-partner.at GEA-TROCKENBAU & HANDEL: Claims Filing Deadline is August 18 ------------------------------------------------------------ Creditors of GEA-Trockenbau & Handel GmbH have until August 18, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for September 1, 2009 at 9:00 a.m. For further information, contact the company's administrator: Mag. Dr. Arno Maschke Mariahilfer Strasse 50 1070 Wien Austria Tel: 523 62 00 Fax: 526 72 74 E-mail: office@sup.at HALTERMANN + SCHULTE: Creditors Must File Claims by August 19 ------------------------------------------------------------- Creditors of Haltermann + Schulte aktimex GmbH have until August 19, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for September 2, 2009 at 9:30 a.m. For further information, contact the company's administrator: Mag. Georg Rupprecht Hauptplatz 9-13 2500 Baden Austria Tel: 02252/20 98 99 Fax: 02252/20 98 99 99 E-mail: georg.rupprecht@bpv-huegle.com K.A.N.E. HANDELS: Creditors Have Until August 19 to File Claims --------------------------------------------------------------- Creditors of K.A.N.E. Handels GmbH have until August 19, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for September 2, 2009 at 10:15 a.m. For further information, contact the company's administrator: Dr. Eva Wexberg Gusshausstrasse 23 1040 Wien Austria Tel: 505 88 31 Fax: 505 94 64 E-mail: kanzlei@kainz-wexberg.at K.G. FASHION: Claims Filing Deadline is August 19 ------------------------------------------------- Creditors of K.G. Fashion GmbH have until August 19, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for September 2, 2009 at 10:45 a.m. For further information, contact the company's administrator: Mag. Wolfgang Winkler Reisnerstrasse 32/12 1030 Wien Austria Tel: 7155045 Fax: 715 50 474 E-mail: office@anwalt-vienna.at KEIS GMBH: Claims Filing Deadline is August 19 ---------------------------------------------- Creditors of KEIS GmbH have until August 19, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for September 2, 2009 at 9:45 a.m. For further information, contact the company's administrator: Mag. Susanne Poeltenstein-Rosenegger Schulerstrasse 18 1010 Wien Austria Tel: 512 40 13 Fax: 512 40 13-22 E-mail: poeltenstein@anwaltsteam.at KNEISZ & PODY: Claims Filing Deadline is August 19 -------------------------------------------------- Creditors of Kneisz & Pody GmbH have until August 19, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for September 2, 2009 at 10:00 a.m. For further information, contact the company's administrator: Mag.Dr. Ilse Korenjak Gusshausstrasse 6 1040 Wien Austria Tel: 512 21 02 Fax: 512 21 02-20 E-mail: office@buresch-korenjak.at KURTA ROHINNENAUSBAU: Claims Filing Deadline is August 19 --------------------------------------------------------- Creditors of KURTA Rohinnenausbau GmbH have until August 19, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for September 2, 2009 at 9:30 a.m. For further information, contact the company's administrator: Dr. Annemarie Kosesnik-Wehrle Oelzeltgasse 4/6 1030 Wien Austria Tel: 713 61 92 Fax: 713 61 92-22 E-mail: kanzlei@kosesnik-langer.at LOVO LIFESTYLE: Creditors Have Until August 19 to File Claims ------------------------------------------------------------- Creditors of LOVO Lifestyle Service GmbH have until August 19, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for September 2, 2009 at 10:30 a.m. For further information, contact the company's administrator: Dr. Georg Freimueller Alser Strasse 21 1080 Wien Austria Tel: 406 05 51-Serie Fax: 406 96 01 E-mail: kanzlei@jus.at MAILS & MORE: Creditors Must File Claims by August 18 ----------------------------------------------------- Creditors of Mails & More Marketingservice GmbH have until August 18, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for September 8, 2009, at 10:30 a.m. at: Land Court of St. Poelten Room 216 Second Floor St. Poelten Austria For further information, contact the company's administrator: Mag. Franz Mueller Georg-Ruck-Strasse 9 3470 Kirchberg/Wagram Austria Tel: 02279/2227 Fax: 02279/2227-9 E-mail: office@derguterat.at ============= B E L G I U M ============= FORTIS BANK: S&P Downgrades Ratings on EUR3 Bil. Notes to 'BB' -------------------------------------------------------------- Standard & Poor's Ratings Services lowered its issue rating on the EUR3 billion junior subordinated hybrid instruments (CASHES) issued by Fortis Bank SA/NV to 'BB' from 'BBB' and reinstated the CreditWatch status with developing implications. This corrects an administrative error through which the rating on these securities was inadvertently raised and removed from CreditWatch on Aug. 3, 2009. Ratings List Fortis Bank SA/NV EUR3 bil. Floating Rate Convertible and Subordinated Hybrid Equity-Linked Secs (CASHES) Perp Hybrid Due 12/19/2049 BB/Watch Dev BBB Obligors: Fortis N.V., Fortis SA/NV. =============== B U L G A R I A =============== CENTRAL EUROPEAN: Moody's Downgrades Corp. Family Rating to 'B2' ---------------------------------------------------------------- Moody's Investors Service has downgraded to B2 from Ba3 the Corporate Family Rating of Central European Media Enterprises Ltd. At the same time, Moody's downgraded to B2 from Ba3 the ratings of the company's EUR150 million senior notes due 2014 and EUR245 million senior notes due 2012. The outlook for all the ratings remains negative. The downgrade reflects Moody's view that the magnitude of the downturn in each of the company's TV advertising markets, together with the depreciation of local currencies against the US dollar (the presentation currency) and ongoing investments in its new ventures (i.e. businesses in Ukraine and Bulgaria, which are not expected to reach the EBITDA break-even level before 2012) has been significantly undermining the company's cash generation capacity and credit metrics while constraining its ability to incur debt, such that its financial risk profile is no longer commensurate with a Ba3 rating. Based on its preliminary analysis and current visibility, Moody's anticipates that the company's leverage as measured by Net Debt/EBITDA (as adjusted by Moody's) is likely to be around 9.0x at the end of 2009, and above Moody's earlier expectations. Furthermore, visibility is limited regarding the extent and duration of macroeconomic deterioration in East European countries, which increases Moody's concerns about the positioning of the company's ratings over the next 12 to 18 months. More positively, Moody's notes that the B2 rating takes into account: (i) CME's leading positions in the TV broadcasting market in most of the seven Central and Eastern European countries where it operates; (ii) its increased advertising market shares; and (iii) its adequate liquidity profile over the next 12 months to June 2010, thanks to recent equity transactions including the equity investment of USD241 million by Time Warner and the agreed investment of USD100 million by Igor Kolomoisky, a shareholder of the company. However, Moody's cautions that downward pressure could be exerted on CME's ratings if: (i) CME's liquidity profile does not improve while navigating through a deepening recession; (ii) the macroeconomic backdrop in its markets, the depreciation of local currencies against the US dollar and the company's operating performance deteriorate more severely than currently anticipated by Moody's, resulting in leverage on a Net Debt/EBITDA basis (as adjusted by Moody's) exceeding 9.0x for a prolonged period of time; and (iii) the company cannot maintain its strong market positions in its core markets. However, a market recovery combined with a solid liquidity profile and a restoration of credit metrics on a sustainable basis could lead to upgrade pressure over time. Moody's notes that, although the rating of the notes currently remains at the same level as the CFR, the increasing amount of borrowings at the operating company level ranking structurally or effectively ahead of the notes may ultimately result in the bond ratings being positioned one notch below the CFR. The last rating action on CME was implemented on March 2, 2009, when Moody's downgraded the ratings to Ba3 from Ba2. CME, a Bermuda-based company, is a TV broadcasting company with networks in seven Central and Eastern European countries. Launched in 1994, CME and its partners now operate 19 channels, including TV Nova, Nova Cinema and Nova Sport in the Czech Republic; PRO TV, PRO Cinema, Pro International, Sport.ro, MTV and Acasa in Romania; Nova TV in Croatia; TV Markiza and Nova Sport in the Slovak Republic; POP TV and Kanal A in Slovenia; Studio 1+1, Studio 1+1 International and Kino in Ukraine; and the recently acquired TV2 and Ring TV in Bulgaria. For the year ending 31 December 2008, CME generated net revenues of USD1,020 million and segment EBITDA of USD346 million. =========== F R A N C E =========== IXIS CORPORATE: Moody's Lowers Rating on Class D Notes to 'Ca' -------------------------------------------------------------- Moody's Investors Service has downgraded its ratings of six classes of notes issued by IXIS Corporate and Investment Bank in the context of the Belem CDO transaction. The transaction is a managed synthetic CDO referencing a corporate portfolio. The rating actions are a response to credit deterioration in the underlying portfolio which includes Ambac Assurance Corporation which was recently downgraded multiple notches. The current loss in the portfolio is 0.89% and the lowest subordination is 1.20% of Series 1804. Moody's initially analyzed and continues to monitor this transaction using primarily the methodology and its supplements for corporate synthetic CDOs as described in Moody's Special Reports and press releases below: -- Moody's Approach to Rating Corporate Collateralized Synthetic Obligations (April 2009) The rating actions are: IXIS Corporate and Investment Bank: (1) Series 1799 - Tranche 1 Class A1 EUR132,000,000 Floating Rate Credit-Linked Note -- Current Rating: B2 -- Prior Rating: Ba1 -- Prior Rating Date: 10 March 2009, downgraded to Ba1 from A1 (2) Series 1800 - Tranche 1 Class A2 $20,200,000 Floating Rate Credit-Linked Note -- Current Rating: B2 -- Prior Rating: Ba1 -- Prior Rating Date: 10 March 2009, downgraded to Ba1 from A1 (3) Series 1801 - Tranche 1 Class A3 EUR10,000,000 Floating Rate Credit-Linked Note -- Current Rating: B2 -- Prior Rating: Ba1 -- Prior Rating Date: 10 March 2009, downgraded to Ba1 from A1 (4) Series 1802 - Tranche 1 Class B EUR100,000,000 Floating Rate Credit-Linked Note -- Current Rating: Caa2 -- Prior Rating: B1 -- Prior Rating Date: 10 March 2009, downgraded to B1 from Baa1 (5) 1803 - Tranche 1 Class C EUR30,000,000 Floating Rate Credit- Linked Note -- Current Rating: Caa3 -- Prior Rating: Caa1 -- Prior Rating Date: 10 March 2009, downgraded to Caa1 from Ba1 (6) Series 1804 - Tranche 1 Class D EUR20,000,000 Floating Rate Credit-Linked Note -- Current Rating: Ca -- Prior Rating: Caa2 -- Prior Rating Date: 10 March 2009, downgraded to Caa2 from B1 ============= G E R M A N Y ============= DUERR AG: S&P Puts 'B+' Corp. Rating on CreditWatch Negative ------------------------------------------------------------ Standard & Poor's Ratings Services said it placed its 'B+' long- term corporate credit rating and the 'B-' senior subordinated notes issue rating on Germany-based paint and assembly systems manufacturer Duerr AG on CreditWatch with negative implications. S&P's '6' recovery rating on Duerr's senior secured debt remains unchanged, indicating S&P's expectation of negligible (0%-10%) recovery for lenders in the event of a payment default. "The CreditWatch placement reflects S&P's concern that Duerr's headroom under the financial covenants of its revolving credit facility is tightening and it may have difficulty complying with them," said Standard & Poor's credit analyst Varvara Nikanorava. "Furthermore, the operating trends in the automotive industry, where the company generates a large portion of its earnings, will remain challenging in the near to medium term, in S&P's view." During the first half of 2009, the company's operating performance deteriorated as global automakers continued to postpone and downsize both renovation and expansionary investment projects. In the first six months of 2009, the company reported a 24% drop in sales, 42% drop in incoming orders, and a 28% drop in order book year on year. Still, Duerr's order book at the end of the second quarter 2009 had improved 3% on the first quarter. Although Duerr has announced initiatives to align costs with lower demand, operating margins are unlikely to remain at the 2008 level of 4.5%. Despite strict working capital management and targeted capital expenditure (capex) at levels corresponding to maintenance capex of EUR15 million-EUR20 million, Duerr is expected to post a negative FOCF for the full year 2009. As of June 30, 2009, the company had adjusted debt of about EUR316.3 million, translating into a last-12-months fully adjusted debt-to-EBITDA ratio of about 4x and a funds from operations-to- debt ratio of 5.2%. Expected negative FOCF generation will lead to an increase in indebtedness, which increases the risk that the ratios will not recover to the level S&P consider commensurate with the current rating. Duerr could be downgraded in the next three months should it fail to manage its covenants situation proactively. "In resolving the CreditWatch listing, S&P will assess the company's ability to secure adequate headroom under covenants as well as reassess its future operating trends in light of S&P's expectations regarding near- and medium-term demand prospects," said Ms. Nikanorava. HAPAG-LLOYD: Owners May Seek EUR1.2BB Loan Guarantees From Gov't. ---------------------------------------------------------------- Holger Elfes at Bloomberg News, citing Financial Times Deutschland, reports that Hapag-Lloyd AG's owners may try to secure EUR1.2 billion in loan guarantees from the German government, more than the original EUR1 billion sought. Citing the Federal economy ministry, Bloomberg discloses Hapag- Lloyd's owners need to draw up a business plan for the company�s future financing before filing for loan guarantees. Restructuring Plan Bloomberg relates Hapag-Lloyd's supervisory board said Tuesday it supports a restructuring plan for the company, proposed by strategy consultant Roland Berger & Partners GmbH. According to Bloomberg, the interested parties are in "advanced and constructive discussions" on the plan, which includes a financing proposal. Talks Robert Wright at The Financial Times reports shareholders in Hapag-Lloyd have held discussions on how the German container shipping line could secure the remainder of a EUR1.75 billion (US$2.47 billion) rescue package it seeking to survive the sector�s worst-ever downturn. The FT says shareholder discussions revolved around who would provide the EUR420 million in new equity that the container line believes it needs, and what form that money would take. Hapag-Lloyd has already secured an initial EUR330 million through an emergency package agreed by shareholders on July 28, the FT notes. Hapag-Lloyd is 43% owned by Tui, the German tourism group, which sold control of the line in March in a transaction that valued the line at EUR4.45 billion. The remaining 57% is owned by the Albert Ballin consortium. The FT relates under the July rescue deal, shareholders paid EUR315 million cash for Hapag-Lloyd's 25.1% stake in Hamburg's automated Altenwerder Container Terminal. HSH Nordbank, a member of the Albert Ballin consortium, provided a EUR15 million loan, the FT discloses. Tui had to provide EUR215 million of the EUR315 million cash, however, after just two consortium members -- Hamburg's state government and Signal Iduna insurance -- agreed to participate, the FT recounts. Citing a person familiar with the position, the FT says Tui will now be pressing the consortium to provide nearly all the cash to be provided under the latest stage of the rescue. Tui, the FT states, wishes to provide nearly all its share of the EUR420 million -� around EUR180 million -� through conversion of some of its EUR1.4 billion loans to Hapag-Lloyd into equity. According to the FT, Tui is expected to argue that such a conversion would be helpful because it would help Hapag-Lloyd avoid breaching banking covenants that set out maximum ratios between debt and equity. Hapag-Lloyd AG -- http://www.hapag-lloyd.com/-- is the transportation arm of German tourism giant TUI. Subsidiary Hapag- Lloyd Container Line, which accounts for most of Hapag-Lloyd's sales, operates a fleet of about 135 containerships. Overall, Hapag-Lloyd Container Line's vessels have a capacity of more than 490,000 twenty-foot equivalent units (TEU). The unit's routes link Europe, Asia, the Americas, and Africa. In addition to freight transportation, Hapag-Lloyd offers luxury ocean and river cruises under its Hapag-Lloyd Cruises brand. TUI sold Hapag- Lloyd's container operations to a German investment group in March 2009. ============= I R E L A N D ============= ACA EURO: Moody's Confirms 'Caa1' Rating on Class E Notes --------------------------------------------------------- Moody's Investors Service has downgraded two classes of notes and confirmed its ratings of three classes of notes issued by ACA Euro CLO 2007-1 P.L.C. Given that ACA is a relatively well-performing CLO, the senior-most tranches remain Aaa. The transaction is a managed cash collateralized loan obligation with exposure to predominantly European senior secured loans, as well as some mezzanine loan exposure. According to Moody's, the rating actions taken on the notes are a result of credit deterioration of the underlying portfolio. This is observed in, among other measures as per Trustee Report dated 11 July 2009, a decline in the average credit rating as measured through the weighted average rating factor (currently 2522), an increase in the amount of defaulted securities (currently 6.0% of the performing portfolio), an increase in the proportion of securities from issuers rated Caa1 and below (currently 3.4% of the portfolio), and a failure of Class D and Class E Par Value tests. Moody's also performed a sensitivity analysis, including amongst others, a further decline in portfolio WARF quality. The rating actions also reflect Moody's revised assumptions with respect to default probability as described in the press release dated February 4, 2009, titled "Moody's updates key assumptions for rating CLOs." These revised assumptions have been applied to all corporate credits in the underlying portfolio, the revised assumptions for the treatment of ratings on "Review for Possible Downgrade", "Review for Possible Upgrade", or with a "Negative Outlook" being applied to those corporate credits that are publicly rated. Moody's also notes that a material proportion of the collateral pool consists of debt obligations whose credit quality has been assessed through Moody's Credit Estimates. As credit estimates do not carry credit indicators such as ratings reviews and outlooks, a stress of a quarter notch-equivalent assumed downgrade was applied to each of these estimates. In addition to the quantitative factors that are explicitly modeled, qualitative factors are part of the rating committee considerations. These qualitative factors include the structural protections in each transaction, the recent deal performance in the current market environment, the legal environment, specific documentation features, the collateral manager's track record, and the potential for selection bias in the portfolio. All information available to rating committees, including macroeconomic forecasts, input from other Moody's analytical groups, market factors, and judgments regarding the nature and severity of credit stress on the transactions, may influence the final rating decision. Moody's initially analyzed and continues to monitor this transaction using primarily the methodology and its supplements for cash flow CLOs as described in Moody's Special Reports and press releases below: -- Moody's Approach to Rating Collateralized Loan Obligations (December 2008) The rating actions are: ACA Euro CLO 2007-1 P.L.C.: (1) EUR26,400,000 Class A-2 Senior Secured Floating Rate Notes due 2024 -- Current Rating: Aa1 -- Prior Rating: Aaa, on review for possible downgrade -- Prior Rating Date: 4 March 2009, Aaa placed on review for possible downgrade (2) EUR32,000,000 Class B Secured Deferrable Floating Rate Notes due 2024 -- Current Rating: A2 -- Prior Rating: Aa2, on review for possible downgrade -- Prior Rating Date: 4 March 2009, Aa2 placed on review for possible downgrade (3) EUR25,600,000 Class C Secured Deferrable Floating Rate Notes due 2024 -- Current Rating: Baa3, confirmed -- Prior Rating: Baa3, on review for possible downgrade -- Prior Rating Date: 17 March 2009, Baa3 placed on review for possible downgrade (4) EUR24,000,000 Class D Secured Deferrable Floating Rate Notes due 2024 -- Current Rating: B1, confirmed -- Prior Rating: B1, on review for possible downgrade -- Prior Rating Date: 17 March 2009, B1 placed on review for possible downgrade (5) EUR13,600,000 Class E Secured Deferrable Floating Rate Notes due 2024 -- Current Rating: Caa1, confirmed -- Prior Rating: Caa1, on review for possible downgrade -- Prior Rating Date: 17 March 2009, Caa1 placed on review for possible downgrade CHEYNE CLO: Moody's Cuts Ratings on Five Classes of Notes to 'C' ---------------------------------------------------------------- Moody's Investors Service has downgraded its ratings of six classes of notes issued by Cheyne CLO Investments I Ltd. The transaction is a partially-funded managed structured finance CDO backed by Collateralised Loan Obligations. The issuer was able to either buy cash obligations or enter into Total Return Swap (TRS) transactions referencing mezzanine CLO tranches. Under the TRS contract, each of the swap counterparty and the issuer has the right to terminate the TRS transaction upon an occurrence of an event of default under the notes. The rating actions are a response to the termination of TRS transactions by the swap counterparty (Credit Suisse) following the occurrence on March 31, 2009, as reported by the Trustee, of an event of default caused by a failure of the Controlling Class of Notes Par Value Ratio to be greater than or equal to 100%. TRS transactions were terminated with substantial termination amounts payable by the issuer. The termination payment was funded by the Supersenior Financial Guarantee which will be reimbursed from the assets currently available under the transaction, however the total amount of current portfolio is less than the amount paid by the Guarantee to Credit Suisse. The rating downgrades reflect the increased expected loss associated with each tranche due to the termination of TRS transactions. Moody's continues to monitor this transaction using primarily the methodology and its supplements for ABS CDOs as described in Moody's Special Reports below: -- Moody's Approach to Rating SF CDOs, March 2009 The rating actions are: Cheyne CLO Investments I Ltd: (1) US$165,000,000 Supersenior Financial Guarantee due 2018 -- Current Rating: Ca -- Prior Rating: A2, on review for possible downgrade -- Prior Rating Date: 9 June 2009, A2 placed under review for possible downgrade (2) US$43,000,000 Class A Senior Floating Rate Notes due 2018 -- Current Rating: C -- Prior Rating: Ba1, on review for possible downgrade -- Prior Rating Date: 9 June 2009, Ba1 placed under review for possible downgrade (3) US$42,000,000 Class B Deferrable Floating Rate Notes due 20182018 -- Current Rating: C -- Prior Rating: B1, on review for possible downgrade -- Prior Rating Date: 9 June 2009, B1 placed under review for possible downgrade (4) US$17,500,000 Class C Deferrable Floating Rate Notes due 2018 -- Current Rating: C -- Prior Rating: B3, on review for possible downgrade -- Prior Rating Date: 9 June 2009, B3 placed under review for possible downgrade (5) US$19,500,000 Class D Deferrable Floating Rate Notes due 2018 -- Current Rating: C -- Prior Rating: Caa1, on review for possible downgrade -- Prior Rating Date: 9 June 2009, Caa1 placed under review for possible downgrade (6) US$5,500,000 Class E Deferrable Floating Rate Notes due 2018 -- Current Rating: C -- Prior Rating: Caa3, on review for possible downgrade -- Prior Rating Date: 9 June 2009, Caa3 placed under review for possible downgrade CORSAIR FINANCE: Moody's Junks Ratings on Schuldschein CDO Notes ---------------------------------------------------------------- Moody's Investors Service has downgraded its rating of one class of CDO notes issued by Corsair Finance (Ireland) N� 10 Limited. The transaction is a synthetic CDO^2 referencing a pool of bespoke corporate CDO tranches, ABS and corporate entities. The rating action is a response to deterioration in the credit quality of the transaction's corporate reference portfolio. According to Moody's, for several financial names in the reference portfolio, the forward looking ratings are currently worse than at the time of the May review. These include, but are not limited to, multiple notch downgrade of CIT group and monoline insurance companies, MBIA and Ambac Assurance. Moody's continues to monitor this transaction using primarily the methodology and its supplements for corporate synthetic CDOs as described in Moody's Special Reports and press releases below: -- Moody's Approach To Rating Corporate Collateralized Synthetic Obligations (April 2009) The rating actions are: Corsair Finance (Ireland) N� 10 Limited (1) EUR37.00M Schuldschein Fixed Rate Portfolio Credit Linked Loan -- Current Rating: Caa2 -- Prior Rating: B3 -- Prior Rating Date: 28 May 2009, downgraded to B3 from B1 ELAN CORPORATION: Files Declaratory Suit Against Biogen Idec ------------------------------------------------------------ Elan Corporation, plc on Aug. 6 filed suit against Biogen Idec Inc. in Federal Court in New York seeking declaratory and injunctive relief that certain aspects of Elan's recently announced transaction with affiliates of Johnson & Johnson comply with Elan's Collaboration Agreement with Biogen Idec for the development and marketing of Tysabri. In a letter to Elan dated July 28, 2009, Biogen Idec alleged that Elan was in material breach of the Collaboration Agreement. Biogen Idec's assertion against Elan relates to Elan's ability to obtain financing from an affiliate of Johnson & Johnson to potentially purchase Biogen Idec's Tysabri rights, if Biogen Idec undergoes a change of control. Biogen Idec made this assertion even though it was not in possession of the relevant agreement related to the Transaction at the time, which Elan has offered to share with Biogen Idec. Elan strongly believes that it is in compliance in all respects with the Collaboration Agreement. Elan is committed to aggressively and proactively protecting its science, property and assets. Elan noted in a statement, "There's nothing in the pending Transaction that is contrary to our collaboration agreement with Biogen Idec for Tysabri, an important therapeutic discovered and primarily developed by Elan. Elan's collaboration with Biogen Idec has been in place since 2000. During that time, Elan and Biogen Idec have obtained regulatory approval for Tysabri in the United States, the European Union and other countries and have made the significant benefits of Tysabri available to a growing number of patients throughout these countries. Nothing about that relationship has changed. This is the same agreement we have been operating under for the last nine years. It is unfortunate that, because of Biogen Idec�s actions, Elan was left with no alternative but to seek court intervention to protect its interest." In seeking declaratory relief, Elan has requested that the Court conduct expedited proceedings given the sixty (60) day cure period following which Biogen may seek to terminate the Elan-Biogen Collaboration Agreement. Elan continues its previously stated commitment to closing the transaction with Johnson & Johnson as soon as possible. Elan also requested that the Court enter judgment against Biogen Idec permanently enjoining Biogen Idec from terminating the Collaboration Agreement based on their July 28, 2009 Letter. About Elan Corporation, plc Headquartered in Dublin, Ireland, Elan Corporation, plc -- http://www.elan.com/-- is a neuroscience-based biotechnology company. Its principal research and development, manufacturing and marketing facilities are located in Ireland and the United States. Elan's operations are organized into two business units: Biopharmaceuticals and Elan Drug Technologies. Biopharmaceuticals engages in research, development and commercial activities primarily in neuroscience, autoimmune and severe chronic pain. EDT focuses on the specialty pharmaceutical industry, including specialized drug delivery and manufacturing. Elan shares trade on the New York, London and Dublin Stock Exchanges. The gross assets attributable to the AIP Program in the audited consolidated accounts of Elan as at December 31, 2008 were US$63.1 million. Costs (losses) associated with the AIP Program in respect of the year ended December 31, 2008 were approximately US$113 million. * * * As reported in the Troubled Company Reporter on July 6, 2009, Moody's Investors Service placed the ratings of Elan Corporation plc under review for possible upgrade. Ratings placed under review for possible upgrade include Elan's B3 Corporate Family Rating, the B2 Probability of Default Rating, and the B3 rating on Elan's senior unsecured bonds. The Troubled Company Reporter-Europe reported on July 8, 2009, that Standard & Poor's Ratings Services said that its ratings and outlook on Elan Corp. PLC (B/Stable/--) remain unchanged, following the recent announcement that Johnson & Johnson, through a newly formed company, will acquire Elan's Alzheimer's Immunotherapy Program. ELEMENT SIX: Talks with Unions on Rescue Plan Collapse ------------------------------------------------------ Gordon Deegan at The Irish Times reports that talks between diamond manufacturer Element Six in Shannon and unions representing its employees ended yesterday without any agreement on the company's survival plan. According to the report, in the rescue plan, 163 of the original 370 jobs earmarked for redundancy are to be saved, with 207 workers facing compulsory redundancy. No further talks are planned, the report says. The report discloses workers at the troubled diamond manufacturer will today return protective notice letters issued to them by the company yesterday. Siptu and Technical Engineering and Electrical Union members at the plant are also to start balloting on industrial action today, the report states. The report notes the sticking point remains the redundancy deal on offer, which is a fraction of what was on offer six months ago. "There was no budging today from management on the terms of the redundancy package, and we have no mandate to negotiate on a rescue plan without an improved redundancy deal first," the report quoted Siptu shop steward, Murdoch Gleeson, as saying. Element Six, or e6, -- http://www.e6.com-- is among the leading global suppliers of synthetic and natural industrial-grade diamonds and other industrial abrasives. Its abrasives are used for cutting, grinding, drilling, and polishing metal, concrete, glass, plastics, and other materials. The company, which had been called De Beers Industrial Diamonds until 2002, comprises companies both independent of and partly owned by diamond giant De Beers. In 2007 Element Six acquired Barat Carbide Holding GmbH from Equita, a Germany-based private equity investor. The company has production sites in China, South Africa, Sweden, The Netherlands, Ukraine, Germany, Ireland and the UK with a global sales organization, research, technical support and service network. KHEOPS CDO: Moody's Cuts Ratings on Three Classes of Notes to 'Ca' ------------------------------------------------------------------ Moody's Investors Service has downgraded its ratings of seven classes of notes issued by Kheops CDO I (Ireland) Plc. The transaction is a managed corporate synthetic CDO. All the classes of notes synthetically are referencing the same portfolio however Series 1, 2, 3 mature in 2010, Series 4,5,6 mature in 2012 and Series 7 matures in 2015. The rating actions are a response to credit deterioration in the underlying portfolio which includes entities such as CIT, Ambac Financial group and Cemex which were downgraded several notches. Moody's continues to monitor this transaction using primarily the methodology and its supplements for corporate synthetic CDOs as described in Moody's Special Reports and press releases below: -- Moody's Approach to Rating Corporate Collateralized Synthetic Obligations (April 2009) The rating actions are: Kheops CDO I (Ireland) Plc: (1) EUR30,000,000 Series 1 Class A-1E5 Floating Rate Secured Portfolio Credit-Linked Notes due 2010 -- Current Rating: Caa1 -- Prior Rating: Baa3 -- Prior Rating Date: 25 March 2009, downgraded to Baa3 from Aa3 (2) EUR5,000,000 Series 2 Class B-2E5 Fixed Rate Secured Portfolio Credit-Linked Notes due 2010 -- Current Rating: Caa3 -- Prior Rating: Ba3 -- Prior Rating Date: 25 March 2009, downgraded to Ba3 from A3 (3) EUR1,500,000 Series 3 Class C-1E5 Floating Rate Secured Portfolio Credit-Linked Notes due 2010 -- Current Rating: Ca -- Prior Rating: B3 -- Prior Rating Date: 25 March 2009, downgraded to B3 from Baa3 (4) EUR15,000,000 Series 4 Class A-1E7 Floating Rate Secured Portfolio Credit-Linked Notes due 2012 -- Current Rating: B2 -- Prior Rating: Baa3 -- Prior Rating Date: 25 March 2009, downgraded to Baa3 from Aa2 (5) EUR2,000,000 Series 5 Class B-1E7 Floating Rate Secured Portfolio Credit-Linked Notes due 2012 -- Current Rating: Caa3 -- Prior Rating: Ba3 -- Prior Rating Date: 25 March 2009, downgraded to Ba3 from A2 (6) EUR5,000,000 Series 6 Class C-1E7 Floating Rate Secured Portfolio Credit-Linked Notes due 2012 -- Current Rating: Ca -- Prior Rating: B3 -- Prior Rating Date: 25 March 2009, downgraded to B3 from Baa2 (7) EUR 50,000,000 Series 7 Class C-2E10 Fixed Rate Secured Portfolio Credit-Linked Notes due 2015 -- Current Rating: Ca -- Prior Rating: Caa2 -- Prior Rating Date: 25 March 2009, downgraded to Caa2 from Ba2 ========= I T A L Y ========= ARES FINANCE: S&P Lowers Rating on Class F Notes to 'B' ------------------------------------------------------- Standard & Poor's Ratings Services lowered and removed from CreditWatch negative its ratings on class F issued by ARES FINANCE S.r.l. and classes D and E issued by ARES FINANCE 2 S.A. At the same time S&P removed from CreditWatch negative and affirmed class E issued by ARES FINANCE S.r.l. S&P placed these notes on CreditWatch negative on June 26. The rating actions reflect S&P's assessment of short-term recovery prospects for the underlying assets. The final legal maturity dates for ARES FINANCE and ARES FINANCE 2 are March 2011 and July 2011, respectively. S&P's review of these transactions considered: * The expected timing of distributions of proceeds (following the forced sale of the assets or agreed out-of-court arrangements); * Short-term recovery prospects for the outstanding assets in the nonperforming loan (NPL) portfolios; * An analysis of recent collection patterns; and * Input S&P received from the special servicer. As of the latest interest payment date, ARES FINANCE and ARES FINANCE 2 had notes outstanding for EUR58 million and EUR52 million, respectively. Principal redemptions for ARES FINANCE in the year ending March 2009 have been about EUR22 million, 20% more than the redemptions recorded for the year ending March 2008. Principal redemptions for ARES FINANCE 2 on the latest two IPDs were approximately EUR12 million, about half of what was cumulatively redeemed on the previous two IPDs. As of the latest available reports, unresolved gross book value in ARES FINANCE and ARES FINANCE 2 was EUR847 million and EUR625 million, respectively. The average recovery rate (defined as collections over GBV) achieved on fully closed positions has been 65% and 68% for ARES FINANCE and ARES FINANCE 2, respectively. Unresolved GBV figures include loans that have been partially resolved. This means that reported unresolved GBV figures above could be significantly higher than the actual "workable" GBV. Although the underlying portfolios--measured by GBV--remain high relative to the outstanding rated note balance, the imminent legal maturity exposes rated notes to the risk that a further drop in collections would not allow a full redemption of the notes by this date. In view of the outstanding GBV levels, the cash awaiting distribution from courts, and the good profitability recorded so far, S&P note that the equity investor may have a strong incentive to seek a refinancing. Or, failing that, it may have a strong incentive to support a payment of the rated debt rather than allow the transaction to default at maturity. Both transactions are backed by a pool of secured and unsecured NPLs originated in Italy by Banca Nazionale del Lavoro SpA (AA-/Positive/A-1+). In S&P's experience, collections under NPL portfolios tend to be volatile, as they largely depend on the recovery activity carried out by the transaction's special servicer, as well as the broader economic environment. Archon Group Italia S.r.l./Societa Gestione Crediti is the special servicer for both transactions and has S&P's commercial and residential special servicer ranking of "STRONG". Ratings List Ratings Affirmed and Removed From CreditWatch Negative ARES FINANCE S.r.l. EUR633.20 Million Asset-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- E BBB- BBB-/Watch Neg Ratings Lowered and Removed From CreditWatch Negative ARES FINANCE S.r.l. EUR633.20 Million Asset-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- F B BB/Watch Neg ARES FINANCE 2 S.A. EUR684.9 Million Asset-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- D BB A/Watch Neg E B- BB/Watch Neg Ratings Affirmed ARES FINANCE S.r.l. Class Rating ----- ------ D A- BANCA MONTE: Moody's Assigns 'D+' Bank Financial Strength Rating ---------------------------------------------------------------- Moody's Investors Service has assigned Baa2 and Prime-2 long- and short-term deposit ratings and a D+ Bank Financial Strength Rating to Banca Monte Parma. The outlook on all ratings is stable. According to Moody's, the D+ BFSR, which translates into a baseline credit assessment of Baa3, reflects the bank's conservative business model, solid funding profile, as well as it's good, although small, franchise in the city of Parma in the wealthy region of Emilia Romagna. The rating is however constrained by the bank's modest and weakening financials, including capital levels. Given the bank's good, but very local market shares, Moody's believes that the probability of systemic support is low, which results in just a one-notch uplift in the long-term deposit rating to Baa2. Founded in 1488, Banca Monte Parma is a relatively small (total assets at 2008 year-end 2.85 billion, 61 branches), long- established savings bank based in the Province of Parma, part of the wealthy Emilia Romagna region in northern Italy. In its home province, Banca Monte Parma enjoys a good market share for lending and deposits of approximately 15%. The bank's market share in the larger region of Emila Romagna is modest with 2.3% for lending and 1.0% for deposits. Banca Monte Parma is a retail and commercial bank offering a wide range of products mainly to households and small business customers. It is currently majority owned by two local charity foundations, with the balance held by Banca Sella Holding (rated C-/A2/P-1/negative outlook), and other local private shareholders. As is common for an Italian local bank, Banca Monte Parma has a stable deposit base. At the end of 2008, after adjusting for bonds sold to retail clients, about 94% of funding was provided by retail clients, while more volatile interbank and market funds accounted for just 6%. The strong retail funding profile is considered to be a significant strength for the bank. The bank's expansion strategy in the past years has resulted in a contraction of its Tier 1 ratio to 5.87% in 2008, compared to 8.4% in 2005. Moody's notes that the recent conversion of EUR28 million of reserves into core capital should lift the bank's Tier 1 ratio to acceptable 6.95%. Given the weakening operating environment and the bank's expansion plans, pressure on the bank's Tier 1 capital ratio could result from a combination of declining profitability and internal capital generation capacity, as well as rising loan loss charges. Further, in Moody's opinion the modest size of regulatory capital in absolute terms leaves the bank exposed to any large default in its concentrated loan portfolio. Capital adequacy is a key rating driver for Banca Monte Parma. Furthermore, Moody's noted that, also in consequence of the bank's expansion of recent years, profitability and efficiency measures have been deteriorating, as have increased the level of problem loans. The rating agency said that it considers that it will be important for Banca Monte Parma to demonstrate that it can consolidate on past growth, and translate this into stronger financial fundamentals. These ratings were assigned with a stable outlook: Banca Monte Parma: -- Long-term bank deposits: Baa2 -- Short-term bank deposits: Prime-2 -- Bank financial strength rating: D+ Banca Monte Parma is headquartered in Parma, Italy, and reported total assets of EUR2.85 billion at the end of 2008. CARROZZERIA BERTONE: Fiat to Make Chrysler Cars in Italian Plants ----------------------------------------------------------------- Eva Palumbo and Sabrina Cohen at The Wall Street Journal report that the Italian government said Fiat SpA plans to build Chrysler Group LLC vehicles in Italy at the plants it will acquire through its purchase of niche manufacturer Carrozzeria Bertone SpA. Fiat and Chrysler both declined to comment. Fiat acquired a 20% stake in Chrysler in June. On Aug. 10, 2009, the Troubled Company Reporter-Europe, citing Bloomberg News, reported Italy's Industry Ministry approved Fiat's offer for bankrupt carmaker Carrozzeria Bertone. Bloomberg disclosed the ministry said Fiat's bid was the highest of those submitted and included a long-term industrial plan. According to Bloomberg, the ministry said Fiat will invest EUR150 million (US$216 million) in the company over three years and keep all of its 1,137 employees. As reported in the Troubled Company Reporter-Europe on Feb. 15, 2008, the bankruptcy court in Turin, Italy, declared Bertone insolvent on Feb. 11, 2008. About Fiat SpA Headquartered in Turin, Italy, Fiat SpA (BIT:F) -- http://www.fiatgroup.com/-- is principally engaged in the design, manufacture and sale of automobiles, trucks, wheel loaders, excavators, telehandlers, tractors and combine harvesters. Through its subsidiaries, Fiat operates mainly in five business areas: Automobiles, including sectors led by Maserati SpA, Ferrari SpA and Fiat Group Automobiles SpA, which design, produce and sell cars under the Fiat, Alfa Romeo, Lancia, Fiat Professional, Abarth, Ferrari and Maserati brands; Agricultural and Construction Equipment, which is led by Case New Holland Global NV; Trucks and Commercial Vehicles, which is led by Iveco SpA; Components and Production Systems, which includes the sectors led by Magneti Marelli Holding SpA, Teksid SpA, Comau SpA and Fiat Powertrain Technologies SpA, and Other Businesses, which includes the sectors led by Fiat Services SpA, a publishing house Editrice La Stampa SpA and an advertising agency Publikompass SpA. With operations in over 190 countries, the Group has 203 plants, 118 research centers, 633 companies and more than 198,000 employees. About Carrozzeria Bertone SpA Headquartered in Turin, Italy, Carrozzeria Bertone SpA -- http://www.bertone.it/-- manufactures car for the Bertone Group. The company does the product and process engineering for all of its products and handles the entire manufacturing cycle. FIAT SPA: To Make Chrysler Cars at Bertone Plants ------------------------------------------------- Eva Palumbo and Sabrina Cohen at The Wall Street Journal report that the Italian government said Fiat SpA plans to build Chrysler Group LLC vehicles in Italy at the plants it will acquire through its purchase of niche manufacturer Carrozzeria Bertone SpA. Fiat and Chrysler both declined to comment. Fiat acquired a 20% stake in Chrysler in June. On Aug. 10, 2009, the Troubled Company Reporter-Europe, citing Bloomberg News, reported Italy's Industry Ministry approved Fiat's offer for bankrupt carmaker Carrozzeria Bertone. Bloomberg disclosed the ministry said Fiat's bid was the highest of those submitted and included a long-term industrial plan. According to Bloomberg, the ministry said Fiat will invest EUR150 million (US$216 million) in the company over three years and keep all of its 1,137 employees. As reported in the Troubled Company Reporter-Europe on Feb. 15, 2008, the bankruptcy court in Turin, Italy, declared Bertone insolvent on Feb. 11, 2008. About Carrozzeria Bertone SpA Headquartered in Turin, Italy, Carrozzeria Bertone SpA -- http://www.bertone.it/-- manufactures car for the Bertone Group. The company does the product and process engineering for all of its products and handles the entire manufacturing cycle. About Fiat SpA Headquartered in Turin, Italy, Fiat SpA (BIT:F) -- http://www.fiatgroup.com/-- is principally engaged in the design, manufacture and sale of automobiles, trucks, wheel loaders, excavators, telehandlers, tractors and combine harvesters. Through its subsidiaries, Fiat operates mainly in five business areas: Automobiles, including sectors led by Maserati SpA, Ferrari SpA and Fiat Group Automobiles SpA, which design, produce and sell cars under the Fiat, Alfa Romeo, Lancia, Fiat Professional, Abarth, Ferrari and Maserati brands; Agricultural and Construction Equipment, which is led by Case New Holland Global NV; Trucks and Commercial Vehicles, which is led by Iveco SpA; Components and Production Systems, which includes the sectors led by Magneti Marelli Holding SpA, Teksid SpA, Comau SpA and Fiat Powertrain Technologies SpA, and Other Businesses, which includes the sectors led by Fiat Services SpA, a publishing house Editrice La Stampa SpA and an advertising agency Publikompass SpA. With operations in over 190 countries, the Group has 203 plants, 118 research centers, 633 companies and more than 198,000 employees. * * * As reported in the Troubled Company Reporter-Europe on June 16, 2009, Standard & Poor's Ratings Services said that its 'BB+' long-term corporate credit rating on Italian industrial group Fiat SpA remains on CreditWatch with negative implications, where it was placed on Jan. 22, 2009. At the same time, the 'B' short-term corporate credit rating was affirmed. =================== K A Z A K H S T A N =================== ADAL PLUS: Creditors Must File Claims by August 21 -------------------------------------------------- Creditors of LLP Adal Plus have until August 21, 2009, to submit proofs of claim to: Kravtsov Str. 18 Astana Kazakhstan The Specialized Inter-Regional Economic Court of Astana commenced bankruptcy proceedings against the company on May 18, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of Astana Abai Ave. 36 Astana Kazakhstan ASIA SERVICE: Creditors Must File Claims by August 21 ----------------------------------------------------- Creditors of LLP Asia Service Plus have until August 21, 2009, to submit proofs of claim to: Kravtsov Str. 18 Astana Kazakhstan The Specialized Inter-Regional Economic Court of Astana commenced bankruptcy proceedings against the company on May 18, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of Astana Abai Ave. 36 Astana Kazakhstan ELECTRO SCHET: Creditors Must File Claims by August 21 ------------------------------------------------------ Creditors of LLP Electro Schet Pribor have until August 21, 2009, to submit proofs of claim to: Satpaev Str. 22/1-56 Ust-Kamenogorsk East Kazakhstan Kazakhstan The Specialized Inter-Regional Economic Court of East Kazakhstan commenced bankruptcy proceedings against the company on May 15, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of East Kazakhstan Bajov Str. 2 Ust-Kamenogorsk East Kazakhstan Kazakhstan KAZ COM: Creditors Must File Claims by August 21 ------------------------------------------------ Creditors of LLP Kaz Com Group have until August 21, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Tauelsuzdyk Str. 53 Taldykorgan Almaty Kazakhstan The court commenced bankruptcy proceedings against the company on June 2, 2009. L TRADE: Creditors Must File Claims by August 21 ------------------------------------------------ Creditors of LLP L Trade Service have until August 21, 2009, to submit proofs of claim to: Satpaev Str. 22/1-56 Ust-Kamenogorsk East Kazakhstan Kazakhstan The Specialized Inter-Regional Economic Court of East Kazakhstan commenced bankruptcy proceedings against the company on May 15, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of East Kazakhstan Bajov Str. 2 Ust-Kamenogorsk East Kazakhstan Kazakhstan RASSVET XXI: Creditors Must File Claims by August 21 ---------------------------------------------------- Creditors of LLP Rassvet XXI have until August 21, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of South Kazakhstan Tynybaev Str. 42 Shymkent South Kazakhstan Kazakhstan The court commenced bankruptcy proceedings against the company on May 28, 2009. STAL IMPEX-S: Creditors Must File Claims by August 21 ----------------------------------------------------- Creditors of LLP Stal Impex-s have until August 21, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Pavlodar Djambulskaya Str. 6 Pavlodar Kazakhstan The court commenced bankruptcy proceedings against the company on May 29, 2009. STAL MUNAI: Creditors Must File Claims by August 21 --------------------------------------------------- Creditors of LLP Stal Munai Complect have until August 21, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Pavlodar Djambulskaya Str. 6 Pavlodar Kazakhstan The court commenced bankruptcy proceedings against the company on May 29, 2009. TALDYKORGANSKOYE URIDICHESKOYE: Claims Filing Deadline is Aug. 21 ----------------------------------------------------------------- Creditors of LLP Taldykorganskoye Uridicheskoye Expertnoye Agentstvo have until August 21, 2009, to submit proofs of claim to: Satpaev Str. 22/1-56 Ust-Kamenogorsk East Kazakhstan Kazakhstan The Specialized Inter-Regional Economic Court of East Kazakhstan commenced bankruptcy proceedings against the company on June 4, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of East Kazakhstan Bajov Str. 2 Ust-Kamenogorsk East Kazakhstan Kazakhstan VOSTOK ENERGO: Creditors Must File Claims by August 21 ------------------------------------------------------ LLP Vostok Energo Service is currently undergoing liquidation. Creditors have until August 21, 2009, to submit proofs of claim to: Timiryazev Str. 44-16 Almaty Kazakhstan =================== K Y R G Y Z S T A N =================== KANNA TRADE: Court Names A. Abyshov as Insolvency Manager --------------------------------------------------------- The Inter-District Court of Chui region for Economic Issues appointed A. Abyshov as insolvency manager for LLC Kanna Trade on May 26, 2009. He can be reached at: A. Abyshov Moskovskaya Str. 151 Room 108 Bishkek Kyrgyzstan The court commenced bankruptcy proceedings against the company after finding it insolvent. ===================== N E T H E R L A N D S ===================== HALCYON STRUCTURED: Moody's Cuts Rating on Class E Notes to 'Ca' ---------------------------------------------------------------- Moody's Investors Service has downgraded its ratings of five classes of notes issued by Halcyon Structured Asset Management European Long Secured/Short Unsecured CLO 2008-I B.V. This transaction is a managed cash leveraged loan collateralized loan obligation with exposure to predominantly European senior secured loans, but also to U.S. senior secured loans and mezzanine/senior unsecured loan exposures. According to Moody's, the rating actions taken on the Notes are a result of significant credit deterioration of the underlying portfolio. This is observed in, among other measures as per Trustee Report dated June 10, 2009, a decline in the average credit rating as measured through the weighted average rating factor (currently 2603), an increase in the proportion of defaulted securities (currently EUR33.5M) and of securities from issuers rated Caa1 or below (currently EUR27M out of EUR357M of performing assets and reinvestable cash), and a failure of Class C,D & E Par Value tests. Moody's also performed a sensitivity analysis, including amongst others, a further decline in portfolio WARF quality. Due to the impact of all the aforementioned stresses, key model inputs used by Moody's in its analysis, such as par, weighted average rating factor, and weighted average recovery rate, may be different from trustee's reported numbers The rating actions also reflect Moody's revised assumptions with respect to default probability and the calculation of the Diversity Score as described in the press release dated February 4, 2009, titled "Moody's updates key assumptions for rating CLOs". These revised assumptions have been applied to all corporate credits in the underlying portfolio, the revised assumptions for the treatment of ratings on "Review for Possible Downgrade", "Review for Possible Upgrade", or with a "Negative Outlook" being applied only to those corporate credits that are publicly rated. Moody's also notes that a material proportion of the collateral pool consists of debt obligations whose credit quality has been assessed through Moody's Credit Estimates. As credit estimates do not carry credit indicators such as ratings reviews and outlooks, a stress of a quarter notch-equivalent assumed downgrade was applied to each of these estimates. In addition to the quantitative factors that are explicitly modeled, qualitative factors are part of the rating committee considerations. These qualitative factors include the structural protections in each transaction, the recent deal performance in the current market environment, the legal environment, specific documentation features, the collateral manager's track record, and the potential for selection bias in the portfolio. All information available to rating committees, including macroeconomic forecasts, input from other Moody's analytical groups, market factors, and judgments regarding the nature and severity of credit stress on the transactions, may influence the final rating decision. Moody's initially analyzed and continues to monitor this transaction using primarily the methodology and its supplements for cash flow CLOs as described in Moody's Special Reports and press releases below: -- Moody's Approach to Rating Collateralized Loan Obligations (December 2008) The rating actions are: Halcyon Structured Asset Management European Long Secured/Short Unsecured CLO 2008-I B.V.: -- EUR278,000,000 Class A Senior Secured Floating Rate Notes due 2024, Downgraded to A2; previously on May 20, 2008, Assigned Aaa; -- EUR10,000,000 Class B Deferrable Secured Floating Rate Notes due 2024, Downgraded to Ba1; previously on March 4, 2009 Aa2 Placed Under Review for Possible Downgrade; -- EUR20,000,000 Class C Deferrable Secured Floating Rate Notes due 2024, Downgraded to B1; previously on March 4, 2009 A2 Placed Under Review for Possible Downgrade; -- EUR17,000,000 Class D Deferrable Secured Floating Rate Notes due 2024, Downgraded to Caa2; previously on March 4, 2009 Baa3 Placed Under Review for Possible Downgrade; and -- EUR11,000,000 Class E Deferrable Secured Floating Rate Notes due 2024, Downgraded to Ca; previously on March 4, 2009 Ba3 Placed Under Review for Possible Downgrade. =========== R U S S I A =========== BABAEVSKAYA KHIM: Creditors Must File Claims by August 17 --------------------------------------------------------- Creditors of LLC Babaevskiy Khim-Les-Prom (TIN 3501003625, PSRN 1023501689309) (Forestry) have until August 17, 2009, to submit proofs of claims to: V. Anchukov Insolvency Manager Office 202 Kozlenskaya Str. 15 Vologda 160035 Vologodskaya Russia The Arbitration Court of Vologodskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?13�6158/2009. The Debtor can be reached at: LLC Babaevskiy Khim-Les-Prom Sverdlova Str. 43 Babaevo Babaevskiy 162482 Vologodskaya Russia CONSTRUCTION EMPIRE: Bankruptcy Hearing Set August 17 ----------------------------------------------------- The Arbitration Court of Kaliningradskaya will convene at 2:30 p.m. on August 17, 2009, to hear bankruptcy supervision procedure on LLC Construction Empire (TIN 3906087084, PSRN 1023901019251). The case is docketed under Case No. ? 21� 1828/2009. The Temporary Insolvency Manager is: A. Kasimov Post User Box 1006 236036 Kaliningrad Russia The Debtor can be reached at: LLC Construction Empire Mendeleeva Str. 9 238010 Kaliningrad Russia -- or -- Zelenaya Str. 44/14 238026 Kaliningrad Russia CONSTRUCTIOON INVESTMENT: Creditors Must File Claims by August 17 ----------------------------------------------------------------- Creditors of LLC Construction Investment Company (TIN 5507092495, PSRN 1075507014318) have until August 17, 2009, to submit proofs of claims to: G.Kaplunova Insolvency Manager Zavodskaya Str. 2 644065 Omsk Russia Tel: (3812)369653 645455 The Arbitration Court of Omskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?46�4950/2009. The Debtor can be reached at: LLC Construction Investment Company 10-y Semerechenskiy pereulok 16 644016 Omsk Russia LEXGARANT INSURANCE: S&P Puts 'B' Rating on CreditWatch Negative ---------------------------------------------------------------- Standard & Poor's Ratings Services said that it had placed its 'B' long-term counterparty credit and insurer financial strength ratings and its 'ruA-' Russia national scale rating on Russia- based aviation insurer Lexgarant on CreditWatch with negative implications. "The negative CreditWatch placement reflects the possibility that Lexgarant could fail to win the legal case that would restore its eroded liquidity and depressed capital base, and that Lexgarant's current lack of liquidity could prove to be permanent," said Standard & Poor's credit analyst Victor Nikolskiy. The ratings continue to reflect Lexgarant's small size and limited franchise, the persisting high industry risk in the aviation insurance market, and high dependence on individuals in the management team. Counterweights to these negative points are the company's proven resilience to Russia's specific country risks, due to the geographic diversity of its portfolio. The company also continues to exploit its currently good reinsurance protection to take advantage of international aviation risks. Lexgarant's capitalization and liquidity deteriorated in 2008 as a consequence of a dispute with one of Lexgarant's bankers concerning a cash deposit in the amount of Russian ruble 170 million ($5 million). The dispute led to this deposit being reclassified from Lexgarant's investment portfolio to receivables. Lexgarant does not regard it as a loss; neither is it provisioned. However, there is a possibility that if not restored, it could lead to a significant distortion of Lexgarant's current liquidity, and consequently, significantly depress its capital base. There is a possibility that Lexgarant will be able to have this amount restored in the course of legal proceedings that the company has recently initiated. "We aim to resolve the CreditWatch placement within the next six months, as that is the expected duration of the court case," said Mr. Nikolskiy. If the liquidity and capital shortfall becomes irreversible, S&P could lower the long-term global scale rating by at least one notch. An affirmation of the global scale rating will depend on Lexgarant's ability to restore its liquidity position and capitalization, due to either a positive outcome of the court case or external support from its shareholders. MDM BANK: Eyes 25% Loan Boost Following Ursa Merger --------------------------------------------------- Denis Maternovsky at Bloomberg News reports that MDM Bank Chairman Oleg Vyugin said the lender plans to boost loans to companies and consumers 25% by the end of the year following its merger with Ursa Bank. "We intend to capitalize on the geographic and business synergies of the two banks," Bloomberg quoted Mr. Vyugin as saying in a telephone interview. Bloomberg relates Igor Kim, Ursa founder and chief executive officer of the combined bank, told reporters Monday MDM bank has about RUR300 billion of loans outstanding to companies and individuals, with corporate loans accounting for over RUR200 billion. Mr. Kim, as cited by Bloomberg, said the bank wants to increase the share of retail loans to 40% to 50% of the total. Ursa Merger According to Bloomberg, following last week's merger, the bank is 54% owned by billionaire Sergei Popov, the founder of MDM, and 10.5% controlled by Mr. Kim, with the rest held by minority shareholders. Refinancing Bloomberg notes Mr. Vyugin said MDM is "close" to reaching an agreement on refinancing "more than half" of the US$500 million one-year loan it got from international lenders last year. MDM Bank -- http://www.mdmbank.com/-- is a leading financial services provider in Russia. Its operations are organized across five divisions: corporate banking (the largest), investment banking and financial markets, private banking, asset management, and retail banking (the smallest). The bank's corporate clientele, which includes nearly half of the 100 largest companies in Russia, operate mainly in the mining, nuclear energy, oil, transportation, manufacturing, and food processing industries. The bank has more than 160 offices throughout Russia, and has expanded following the merger between MDM Bank and Ursa Bank. The deal created the largest private bank in Russia. * * * As reported in the Troubled Company Reporter-Europe on Aug. 12, 2009, Moody's Investors Service upgraded to D from D- the bank financial strength rating of MDM Bank (formerly URSA Bank), which was created on August 7, 2009 by the merger of two large Russian financial institutions, MDM Bank ("pre-merger MDM") and URSA Bank. Moody's also upgraded the merged MDM's long-term global local currency deposit ratings to Ba2 from Ba3, while affirming the bank's Not Prime short-term deposit ratings. The merged MDM's foreign currency debt ratings were upgraded to Ba2 from Ba3 (for senior unsecured debt) and to Ba3 from B1 (for subordinated debt). MOBILE TELESYSTEMS: 2Q09 Net Income Down 15% to US$563 Million -------------------------------------------------------------- Torrey Clark and Maria Ermakova at Bloomberg News report that OAO Mobile TeleSystems said its net income fell 15% to US$563 million in the second quarter of 2009 from US$659.2 million a year earlier as the economic slowdown and lower wages hurt demand. According to Bloomberg, sales fell 23% to US$2.02 billion, while revenue was hurt by the decline of the ruble, which fell to an average of 32.17 to the dollar in the second quarter from 23.63 a year earlier. Comstar In an Aug. 6 report Bloomberg disclosed MTS said in a statement it will buy a 50.9% stake in OAO Comstar United TeleSystems, an integrated telecommunication solutions unit, from AFK Sistema, for US$1.27 billion after gaining approval. Headquartered in Moscow, Mobile TeleSystems OJSC -- http://www.mtsgsm.com/-- is a provider of mobile cellular communications services in Russia, Uzbekistan, Turkmenistan and Armenia and Ukraine. During the year ended December 31, 2008, the Company had a subscriber base of 91.33 million (64.63 million in Russia, 18.12 million in Ukraine, 5.65 million in Uzbekistan, 0.93 million in Turkmenistan and 2.02 million in Armenia). In addition to standard voice services, the Company offers its subscribers value added services, including voice mail, short message service (SMS), general packet radio service (GPRS), augmented by enhanced data rates for GSM evolution (EDGE), high-speed downlink packet access (HSDPA), and various SMS- and GPRS/EDGE/HSDPA-based information and entertainment services (including multi media message service (MMS)). It also offers its subscribers the ability to roam automatically throughout Europe and in much of the rest of the world. * * * As reported in the Troubled Company Reporter-Europe on Aug. 10, 2009, Moody's Investors Service placed on review for possible downgrade the Ba2 ratings of Mobile Telesystems OJSC and the Ba3 ratings of Comstar United Telesystems following the announcement on August 5th of an agreement by Sistema JFSC (B1, negative), the parent company of both issuers, to the acquisition by MTS of Sistema's 50.91 percent stake in Comstar. On Aug. 10, 2009, the Troubled Company Reporter-Europe reported that Fitch Ratings is maintaining Russia-based OJSC Mobile TeleSystems' (MTS) Long-term Issuer Default rating of 'BB+' and National Long-term rating of 'AA(rus)' on Rating Watch Negative, following the announcement of its intention to acquire Comstar from Sistema. The RWN on MTS reflects that on parent Sistema ('BB-'/RWN). The Short-term IDR is affirmed at 'B'. NOVOLIPETSK OJSC: Fitch Affirms Long-Term IDR at 'BB+' ------------------------------------------------------ Following a peer review of its EMEA metals and mining portfolio, Fitch Ratings has affirmed the ratings of four companies and downgraded the ratings of one, Anglo American Plc, by one notch. The ratings are: Anglo American Plc (AA): -- Long-term Issuer Default Rating (IDR) downgraded to 'BBB+' from 'A-'; Outlook Stable -- Short-term IDR affirmed at 'F2' Anglo American Capital Plc: -- Senior unsecured debt downgraded to 'BBB+' from 'A-' Rio Tinto Plc/Ltd: -- Long-term IDR affirmed at 'BBB+'; Outlook Positive -- Senior unsecured rating affirmed at 'BBB+' -- Short-term IDR affirmed at 'F2' Rio Tinto Finance (USA): -- Senior unsecured debt affirmed at 'BBB+' Rio Tinto Alcan Inc: -- Senior unsecured debt affirmed at 'BBB+' ArcelorMittal S.A.: -- Long-term IDR affirmed at 'BBB'; Outlook Negative -- Senior unsecured rating affirmed at 'BBB' -- Short-term IDR affirmed at 'F2' OJSC MMC Norilsk Nickel: -- Long-term IDR affirmed at 'BBB-'; Outlook Negative -- Senior unsecured rating affirmed at 'BBB-' -- Short-term IDR affirmed at 'F3' OJSC Novolipetsk Steel (NLMK): -- Long-term IDR affirmed at 'BB+'; Outlook Stable -- Short-term IDR affirmed at 'B' -- National Long-term affirmed at 'AA(rus)'; Outlook Stable The peer review included an analysis of forecast operational and financial profiles over the next three to four years. In particular, the agency focused on the expected 'exit' credit profiles of individual companies 18-24 months post the trough of the current recession, to identify companies whose financial strength could be weakened by an extended period of weaker economic growth rates and/or for whom a recovery to their pre- recession credit profiles is likely to take longer, due to either high starting debt levels, or a higher level of cash outgoings (eg. for capex and/or dividends). The downgrade of AA's ratings principally reflects the slower expected recovery of its individual credit profile to historical average levels. While the strong improvement in commodity prices so far in FY2009 means that the company is unlikely to breach Fitch's previous maximum net leverage forecast of 2.75-3.0x for FY09, its high capex plans over the next 18-24 months, in the context of the expected weak global economic recovery, mean that a return to a financial profile commensurate with the previous 'A-' rating is unlikely to occur within the 18-24 month time horizon. The Stable Outlook reflects AA's satisfactory liquidity position and the expectation of a gradual improvement in general commodity prices over the next 2-3 years. While Fitch views that the large macro-economic and financial sector policy responses announced to date should drive a return to positive economic growth rates in the second half of 2009, the pace of the economic upturn in coming years is likely to be anaemic by historical standards -- implying the potential for a similarly weak longer-term recovery in commodity and steel prices. Fitch expects to publish a special report outlining some key financial and operational outcomes from the sector review over the next month. STAROMAYNSKIY MACHINERY: Creditors Must File Claims by August 17 ---------------------------------------------------------------- Creditors of LLC Staromaynskiy Machinery And Repair Plant (TIN 7318004680 PSRN 1037300900691) have until August 17, 2009, to submit proofs of claims to: S. Borisov Temporary Insolvency Manager Volodarskogo Str. 9/202 440026 Penza Russia The Arbitration Court of Ulyanskaya will convene at 9:30 a.m.on September 28, 2009, to hear bankruptcy supervision procedure on the company. The case is docketed under Case No. ?72�3898/2009. The Debtor can be reached at: LLC Staromaynskiy Machinery and Repair Plant Ulyanovskaya Str. 15 Staraya Mayna Staromaynskiy Ulyanovskaya Russia STROY-INDUSTRIYA: Creditors Must File Claims by August 17 --------------------------------------------------------- Creditors of LLC Stroy-Industriya (TIN 3525126626, PSRN 1033500057458( (Concrete Products) have until August 17, 2009, to submit proofs of claims to: D. Roslyakov Insolvency Manager Post User Box 3 160032 Vologda-32 Russia The Arbitration Court of Vologodskaya will convene at 10:00 a.m. on November 16, 2009, to hear bankruptcy proceedings on the company. The case is docketed under Case No. ?13�6115/2009. The Debtor can be reached at: LLC Stroy-Industriya Sammera Str. 49 Vologda Vologodskaya Russia SUOYARVSKAYA CARDBOARD: Creditors Must File Claims by August 17 --------------------------------------------------------------- Creditors of LLC Suoyarskaya Cardboard Mill have until August 17, 2009, to submit proofs of claims to: N. Skachkov Insolvency Manager Apt. 66 Prospect Lenina 35A Petrozavodsk 185035 Karelia Russia The Arbitration Court of Karelia commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?26�4333/2009. TMK OAO: In Refinacing Talks; Secures Financing for US$300MM Bond ----------------------------------------------------------------- Alfred Kueppers and Polina Devitt at Reuters report that TMK OAO is in refinancing talks with several major Russian banks. Reuters relates Vladimir Shmatovich, TMK's board member for strategy, said in an interview that his company had already secured financing for a US$300 million eurobond due in September and has the "key approval" required to restructure the US$1.1 billion Gazprombank loan received in January. Mr. Shmatovich, as cited by Reuters, said the refinanced debt will have a maturity of five to seven years, with an annual interest rate of 10% to 13%. Reuters notes excluding the US$300 million eurobond that expires in September, TMK has about US$700 million more due by the end of the year. According to Reuters, the steelmaker's debt reached US$3.2 billion at the end of last year, and it said in July that it needs to increase the threshold of secured indebtedness to 40% of total assets from the current 15% level outlined in its debt covenants as it seeks to refinance. According to Reuters, the company announced Thursday last week 89% of noteholders approved the resolution. Reuters states noteholders also approved a resolution allowing TMK's U.S. IPSCO assets to raise their level of indebtedness to US$100 million from US$30 million. Buyback Offer In an Aug. 6 report Reuters disclosed TMK said it will buy back US$413 million of a US$600 million loan participation note (LPN) due in 2011. According to Reuters, the company will pay US$90 for each US$100 of the notes' nominal value, along with an early consent fee of US$5,000 for every US$100,000 of notes. TMK OAO (Trubnaya Metallurgicheskaya Kompaniya OAO or Pipe Metallurgical Company) -- http://www.tmk-group.com-- is a Russia- based engaged in the production of steel pipes. Its product portfolio covers seamless threaded pipes for oil and gas fields, seamless line pipes for infield pipelines, seamless pipes for industrial use, large-diameter welded pipes, energy tubulars, welded pipes. The Company manages production plants in Russia (TMK-CPW, Volzhsky Pipe Plant, Seversky Tube Works, Sinarsky Pipe Plant, Taganrog Metallurgical Works and Orsky Machine Building Plant), Romania (TMK-Artrom and TMK-Resita), Kazakhstan (TMK- Kaztrubprom) and the United States (TMK-Ipsco). TMK OAO has five branches in Russia. It operates also through 17 subsidiaries in Russia, Kazakhstan, Germany, Switzerland and the United States. * * * As reported in the Troubled Company Reporter-Europe on July 10, 2009, Standard & Poor's Ratings Services said it lowered the long- term corporate credit rating on Russia-based steel pipe producer OAO TMK to 'B' from 'B+'. S&P lowered the Russia national scale rating to 'ruBBB+' from 'ruA'. The outlook is negative. At the same time, S&P lowered the senior unsecured debt ratings on the US$300 million bond maturing in 2009 and US$600 million bond maturing in 2011 issued by TMK Capital S.A. to 'B' from 'B+', and placed it on CreditWatch with negative implications. The recovery rating is '4'. TOP-KOM-STROY: Creditors Must File Claims by August 17 ----------------------------------------------------- Creditors of LLC Top-Kom-Stroy (TIN 5904093270, PSRN 1035900500294) (Construction) have until August 17, 2009, to submit proofs of claims to: S. Mikheev Temporary Insolvency Manager Post User Box 6063 614002 Perm Russia The Arbitration Court of Permskiy commenced bankruptcy supervision procedure. The case is docketed under Case No. ?50�11757/2009. The Debtor can be reached at: LLC Top-Kom-Stroy Chernyshevskogo Str. 19 614007 Perm Russia VERKHNESINYACHIKHINSKIY: Claims Filing Period Ends August 17 ------------------------------------------------------------ Creditors of LLC Verkhnesinyachinskiy Metallurgic Plant have until August 17, 2009, to submit proofs of claims to: M. Fedotovskiy Temporary Insolvency Manager Michurina Str. 239 620100 Yekaterinburg Russia The Arbitration Court of Sverdlovskaya will convene at 3:30 p.m. on November 10, 2009, to hear bankruptcy supervision procedure on the company. The case is docketed under Case No. ?60�19291/2009- S11. The Debtor can be reached at: LLC Verkhnesinyachinskiy Metallurgic Plant Michurina Str. 239 620100 Yekaterinburg Russia ========= S P A I N ========= * SPAIN: 980 Travel Agencies Shut Down Due to Financial Crisis -------------------------------------------------------------- Citing a report by Amadeus, Spanish News says over the past 12 months, 980 travel agencies have closed shop around Spain, leaving the total number of travel agencies at 8,174. Spanish News relates travel agencies have been hit by the recession and the global financial crisis. According to Spanish News, in terms of autonomous communities in Spain, Catalonia and Andalucia have been the areas worst affected. Spanish News notes Amadeus expects the trend to continue, especially after summer, which is the busiest time of the year for travel agents. =========== S W E D E N =========== FORD MOTOR: Likely to Close Volvo Sale This Year, Sweden Says ------------------------------------------------------------- Niklas Magnusson and Keith Naughton at Bloomberg News report Swedish Industry Ministry State Secretary Joeran Haegglund said Ford Motor Co. is likely to complete the sale of its Volvo Cars unit in the latter part of this year. Mr. Haegglund declined to name any suitors for Gothenburg, Sweden-based Volvo Cars. Bloomberg relates Mr. Haegglund said Ford isn;t in the same rush to dispose of the unit as General Motors Co. is with its proposed sale of Saab Automobile. "We're in touch with Ford and note all rumors," Bloomberg quoted the Mr Haegglund as saying. "Ford has a slower pace than GM and Saab and we expect a sale will be completed in the latter part of the year." Citing Dagens Industri newspaper, Bloomberg discloses, Chinese carmaker Geely Automotive Holdings Ltd. wants to buy a majority of Volvo with an unidentified Swedish investor, possibly including state pension funds, and let Ford keep a stake. About Ford Motor Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The Company provides financial services through Ford Motor Credit Company. The Company has operations in Japan in the Asia Pacific region. In Europe, the Company maintains a presence in Sweden, and the United Kingdom. The Company also distributes its brands in various Latin-American regions, including Argentina and Brazil. As reported by the Troubled Company Reporter on April 15, 2009, Standard & Poor's Ratings Services said it raised its ratings on Ford Motor Co. and related entities, including the corporate credit rating, to 'CCC+' from 'SD-'. The ratings on Ford Motor Credit Co. are unchanged, at 'CCC+', and the ratings on FCE Bank PLC, Ford Credit's European bank, are also unchanged, at 'B-', maintaining the one-notch rating differential between FCE and its parent Ford Credit. S&P said that the outlook on all entities is negative. Moody's Investors Service in December 2008 lowered the Corporate Family Rating and Probability of Default Rating of Ford Motor Company to Caa3 from Caa1 and lowered the company's Speculative Grade Liquidity rating to SGL-4 from SGL-3. The outlook is negative. The downgrade reflects the increased risk that Ford will have to undertake some form of balance sheet restructuring to achieve the same UAW concessions that General Motors and Chrysler are likely to achieve as a result of the recently-approved government bailout loans. Such a balance sheet restructuring would likely entail a loss for bond holders and would be viewed by Moody's as a distressed exchange and consequently treated as a default for analytic purposes. GENERAL MOTORS: Saab May Get Loan Guarantees Exceeding US$600 Mln ----------------------------------------------------------------- Niklas Magnusson at Bloomberg News reports that General Motors Co.'s Swedish unit, Saab Automobile AG, may be able to get state guarantees for loans from the European Investment Bank that exceed the US$600 million originally sought. Bloomberg relates Haakan Lind, a government spokesman, said in a telephone interview Tuesday Saab and Koenigsegg Group, which intends to buy the Swedish carmaker, are having discussions with Swedish officials that are primarily focused on guarantees by the National Debt Office for EIB loans. Mr. Lind, as cited by Bloomberg, said the US$600 million sought by Saab is not the maximum the company can get. As reported in the Troubled Company Reporter on June 25, 2009, Koenigsegg Group AB, a group led by Koenigsegg Automobile AB, a Swedish maker of exclusive sports cars, agreed to buy Saab Automobile, which filed for insolvency proceedings in Sweden in February 2009. According to Business Week, the deal is expected to close in the third quarter of 2009. Debts In the June 25 TCR report The Wall Street Journal disclosed creditors of Saab approved the automakers' proposal for settling its debts by paying a quarter of what it originally owed. Saab proposed to settle its debts by paying 25% of about US$1.34 billion it owed to more than 600 creditors, including auto suppliers and the Swedish government. The vast majority of the debt, almost SEK10 billion, was owed to U.S. parent company GM. 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) ===================== S W I T Z E R L A N D ===================== ALPHASTREAM ASSET: Claims Filing Deadline is August 17 ------------------------------------------------------ Creditors of AlphaStream Asset Management GmbH are requested to file their proofs of claim by August 17, 2009, to: Rene Dubacher Gruebstrasse 1c 6318 Walchwil Switzerland The company is currently undergoing liquidation in Baar. The decision about liquidation was accepted at a shareholders' meeting held on June 6, 2008. AURIUS GMBH: Creditors Must File Claims by August 31 ---------------------------------------------------- Creditors of Aurius GmbH are requested to file their proofs of claim by August 31, 2009, to: Willy Huber Liquidator Bahnhofstrasse 28 6430 Schwyz Switzerland The company is currently undergoing liquidation in Feusisberg SZ. The decision about liquidation was accepted at the extraordinary shareholders' meeting held on May 18, 2009. AZA GASTRONOMIE: Claims Filing Deadline is August 17 ---------------------------------------------------- Creditors of AZA Gastronomie GmbH are requested to file their proofs of claim by August 17, 2009, to: Armin Thaler, RA Sonnenstrasse 5 Mail Box 38 9004 St. Gallen Switzerland The company is currently undergoing liquidation in Flawil. The decision about liquidation was accepted at a shareholders' meeting held on June 23, 2009. CHEMIN OUEST: Claims Filing Deadline is August 17 ------------------------------------------------- Creditors of Chemin Ouest AG are requested to file their proofs of claim by August 17, 2009, to: Chemin Ouest AG Konradstrasse 12 8005 Zurich Switzerland The company is currently undergoing liquidation in Zurich. The decision about liquidation was accepted at a general meeting held on February 3, 2009. CMBB IMMO: Creditors Must File Claims by August 17 -------------------------------------------------- Creditors of CMBB Immo AG are requested to file their proofs of claim by August 17, 2009, to: Dreispitz Management AG Freilager 4142 Muenchenstein Switzerland The company is currently undergoing liquidation in Muenchenstein. The decision about liquidation was accepted at an extraordinary general meeting held on June 19, 2009. FEURER + MOOSER: Creditors Have Until August 17 to File Claims -------------------------------------------------------------- Creditors of Feurer + Mooser AG are requested to file their proofs of claim by August 17, 2009, to: Feurer + Mooser AG Allmeindstrasse 23 8716 Schmerikon Switzerland The company is currently undergoing liquidation in Schmerikon. The decision about liquidation was accepted at an extraordinary general meeting held on June 23, 2009. GIVE HEAVY: Claims Filing Deadline is August 31 ----------------------------------------------- Creditors of Give Heavy Haulage International AG are requested to file their proofs of claim by August 31, 2009, to: Thomas Press Liquidator Schindellegistrasse 73 8808 Pfaffikon Switzerland The company is currently undergoing liquidation in Freienbach. The decision about liquidation was accepted at an extraordinary general meeting held on May 6, 2009. HIRSCHI-BAUMANN-IMMOBILIEN: Claims Filing Deadline is August 17 --------------------------------------------------------------- Creditors of Hirschi-Baumann-Immobilien AG are requested to file their proofs of claim by August 17, 2009, to: Zimmermann & Blaser Kreuzplatz 4 Mail Box: 8 3510 Konolfingen Switzerland The company is currently undergoing liquidation in Bern. The decision about liquidation was accepted at an extraordinary general meeting held on April 2, 2009. IMPERIAL ENERGY: Creditors Must File Claims by August 17 -------------------------------------------------------- Creditors of Imperial Energy Trading AG are requested to file their proofs of claim by August 17, 2009, to: Victor L. Gnehm Grabenstrasse 42 6301 Zug Switzerland The company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at a regular general meeting held on June 9, 2009. MENTAL.CH GMBH: Claims Filing Deadline is August 17 --------------------------------------------------- Creditors of mental.ch GmbH are requested to file their proofs of claim by August 17, 2009, to: Armin Thaler Sonnenstrasse 5 Mail Box 38 9004 St. Gallen Switzerland The company is currently undergoing liquidation in Wil SG. The decision about liquidation was accepted at a shareholders' meeting held on June 17, 2009. ZUBLER BAUMANAGEMENT: Claims Filing Deadline is August 17 --------------------------------------------------------- Creditors of Zubler Baumanagement GmbH are requested to file their proofs of claim by August 17, 2009, to: Zubler Baumanagement GmbH Roemerstrasse 26 4147 Aesch Switzerland The company is currently undergoing liquidation in Aesch. The decision about liquidation was accepted at a shareholders' meeting held on June 17, 2009. ============= U K R A I N E ============= BRUSILOV AGRICULTURAL: Creditors Must File Claims by August 15 -------------------------------------------------------------- Creditors of Brusilov Agricultural LLC (code EDRPOU 31942754) have until August 15, 2009, to submit proofs of claim to J. Ushach, the company's insolvency manager. The Economic Court of Chernigov commenced bankruptcy proceedings against the company on March 19, 2009. The case is docketed under Case No. 4/85b. The Court is located at: The Economic Court of Chernigov Mir Avenue 20 14000 Chernigov Ukraine The Debtor can be reached at: Brusilov Agricultural LLC Novaya Str. 2 Brusilov Chernigov Ukraine RUSANOV AGRO-INDUSTRIAL: Creditors Must File Claims by August 15 ---------------------------------------------------------------- Creditors of Agro-Industrial LLC Rusanov (code EDRPOU 30839445) have until August 15, 2009, to submit proofs of claim to J. Kostira, the company's insolvency Manager. The Economic Court of Kiev commenced bankruptcy proceedings against the company on June 3, 2008. The case is docketed under Case No. B11/087-09. The Court is located at: The Economic Court of Kiev Komintern str. 16 01032 Kiev Ukraine The Debtor can be reached at: Agro-Industrial LLC Rusanov Lenin Str. 20 Rusanov Brovary 07453 Kiev Ukraine TERRA-1 LLC: Creditors Must File Claims by August 15 ---------------------------------------------------- Creditors of LLC Terra-1 (code EDRPOU 33725260) have until August 15, 2009, to submit proofs of claim to V. Verbitsky, the company's insolvency manager. The Economic Court of Kharkov commenced bankruptcy proceedings against the company on June 30, 2009. The case is docketed under Case No. B-39/41-09. The Court is located at: The Economic Court of Kharkov Svoboda square 5 61022 Kharkov Ukraine The Debtor can be reached at: LLC Terra-1 Shevchenko Str. 327 61033 Kharkov Ukraine VASILYEVKA CAR: Creditors Must File Claims by August 15 ------------------------------------------------------- Creditors of OJSC Vasilyevka Car Repair Plant Subsidiary Company Motor (code EDRPOU 23791027) have until August 15, 2009, to submit proofs of claim to: J. Moiseyev Insolvency Manager Post Office Box 105 3rd Maliuga Lane 13 Melitopol 72316 Zaporozhye Ukraine The Economic Court of Zaporozhye region commenced bankruptcy proceedings against the company on July 6, 2008. The case is docketed under Case No. 19/147/09. The Court is located at: The Economic Court of Zaporozhye Shaumian Str. 4 69600 Zaporozhye Ukraine The Debtor can be reached at: OJSC Vasilyevka Car Repair Plant Subsidiary Company Motor Moscow Str. 53 Vasilyevka 71600 Zaporozhye Ukraine =========================== U N I T E D K I N G D O M =========================== BAA LTD: Airport Traffic Down 2.4% in July 2009 ----------------------------------------------- BAA Ltd.'s UK airports recorded further signs of stabilizing traffic figures with the results for July, which was the busiest July at Heathrow since 2006 and Heathrow's third-busiest month on record. In July, BAA airports handled 14.5 million passengers, down 2.4% compared to July 2008, following decreases of 5.9% in June and 7.3% in May. Heathrow handled 6.5 million passengers in July, an increase of 0.9% on July 2008. Across the Group as a whole there was a return to growth of 1.2% in European scheduled traffic and 4.8% in long haul traffic, excluding North Atlantic, with Heathrow up by 5.5%. UK domestic traffic was 4.8% lower and European charters fell by 18.6%. North Atlantic traffic was 8.0% lower overall but only by 2.1% at Heathrow. Results at Gatwick and Stansted also improved. At Gatwick the reduction on last year was cut from 7.6% in June to 4.8% in July, largely thanks to a 5.8% increase in European scheduled traffic. At Stansted the improvement was even more pronounced, from a drop of 11.5% in June to one of 5.7% in July. In Scotland, Edinburgh's traffic grew by 5.6%, the fourth consecutive month the capital's airport has recorded growth. At Glasgow, traffic was down by 12.9% and at Aberdeen, the airport handled 9% fewer passengers than July 2008. The decline in traffic at Southampton was reduced from 7.9% in June to 0.9% in July. Overall the number of air transport movements at BAA's UK airports was down by 5.1%. At Heathrow the reduction in flights (-3.0%), combined with the increase in passengers, produced the highest ever figure for the average number of passengers per aircraft -- at 162. The three regulated London airports together recorded a 2% reduction, bolstered by Heathrow's continued strength. Cargo activity, as measured by tonnes carried, although still lower year on year, was also on an improving trend with the rate of decrease cut to 11.7% in July. Terminal 2 Expansion Lars Paulsson at Bloomberg News reports BAA plans to more than triple capacity at London's Heathrow Terminal 2 by investing GBP1 billion (US$1.67 billion) in a new building and housing airlines from the Star Alliance group. Mary Kearney, a spokeswoman for London-based BAA, said told Bloomberg the first phase of the new terminal building will be completed in 2013, increasing capacity to 20 million passengers a year from less than 10 million today. By 2019, capacity will reach 30 million a year, Bloomberg discloses citing an e-mailed statement. Gatwick Sale As reported in the Troubled Company Reporter-Europe on July 17, 2009, guardian.co.uk said that a consortium lead by Manchester Airports Group pulled out of the bidding race for BAA's Gatwick airport. guardian.co.uk disclosed MAG refused to meet BAA's final price of GBP1.5 billion �- GBP100 million more than the owner of Manchester airport was willing to offer. According to guardian.co.uk, failure to sell Gatwick by March next year will leave BAA with the option of raising new debt in order to meet the payment schedule. guardian.co.uk said the option of raising new debt however is shrouded in doubt because the government has proposed a "special administration" regime which, in the event of BAA going bust, would give ministers powers over the group's airports. "Special Administration" Regime On June 12, 2009, the Troubled Company Reporter-Europe, citing Telegraph.co.uk, reported that BAA's bondholders proposed two alternatives to the UK government's controversial plans to force a "special administration regime". The bondholders' first alternative was to impose a license obligation that compels the debt holders to continue to operate the airports. The second was for special administration to trigger a "pre-agreed exchange offer" whereby existing debts are replaced by government- guaranteed loans in the new BAA. According to Telegraph.co.uk, the holders of GBP4.85 billion of bonds would demand a "consent fee" that would apply to the owners of all the GBP9.6 billion of senior debt secured against Heathrow, Gatwick and Stansted airports. The bondholders warned that introducing a special administration regime could lead to the insolvency of BAA. BAA -- http://www.baa.co.uk-- owns and manages seven airports in the UK, including London's Heathrow, Gatwick, and Stansted. The company oversees functions such as cargo handling, fire protection, property management, retail operations (including its own World Duty Free stores), and security. In addition, it runs the Heathrow Express rail service to London and works with other mass transit operators. Outside the UK, BAA has a 65% stake in the Naples International Airport in Italy and manages the retail operations at three US airports in Pittsburgh, Baltimore, and Boston. A group led by Spanish infrastructure manager Ferrovial acquired BAA in 2006 for more than GBP10 billion in stock. BRITISH AIRWAYS: Accuses Virgin of Double Standards Over Tie-Ups ---------------------------------------------------------------- Alistair Osborne at Telegraph.co.uk reports that British Airways plc has accused its UK rival Virgin Atlantic of double standards over airline alliances following a Virgin associate's application for its own anti-trust deal. According to the report, Virgin Blue, the Australian carrier in which Virgin Atlantic founder Sir Richard Branson retains a stake of around 26%, said last month that it was seeking immunity for a joint-venture with US carrier Delta Air Lines that would "expand both carriers' reach between the US and Australia and the South Pacific". The report relates the pair said that together they would "be a stronger competitor by offering consumers greater choice of destinations". "We are pleased that Virgin airlines in the southern hemisphere now agree that anti-trust immunity deals can be beneficial for consumers and competition," the report quoted Willie Walsh, the BA chief executive, as saying. "We look forward to this view being maintained by Virgin carriers north of the equator." Mr. Branson, the report states, will take his campaign against BA's proposed transatlantic tie-up with American Airlines to US Congress next month when he appears before the House of Representatives Judiciary Sub-committee on Competition Policy on September 16. The report says the Virgin founder is expected to reiterate his view that granting anti-trust immunity to BA/AA will allow the creation of a "monster monopoly", giving the pair an unassailable position on flights between Heathrow and the US. About British Airways Headquartered in Harmondsworth, England, British Airways Plc (LON:BAY) -- http://www.ba.com/-- is engaged in the operation of international and domestic scheduled air services for the carriage of passengers, freight and mail, and the provision of ancillary services. The Company's principal place of business is Heathrow. The Company also operates a worldwide air cargo business with its scheduled passenger services. The Company operates international scheduled airline route networks, comprising some 300 destinations at March 31, 2008. During the fiscal year ended March 31, 2008 (fiscal 2008), British Airways carried more than 33 million passengers. It carried 805,000 tons of cargo to destinations in Europe, the Americas and worldwide. At March 31, 2008, it had 245 aircraft in service. In July 2008, British Airways plc completed the purchase of French airline L'Avion. * * * As reported in the Troubled Company Reporter-Europe on Aug. 12, 2009, Standard & Poor's Ratings Services said that it assigned its 'BB' debt rating to the proposed GBP350 million senior unsecured convertible bonds to be issued by U.K.�based airline British Airways PLC (BA; BB/Negative/--). D1a CCC- CCC-/Watch Neg D1c CCC- CCC-/Watch Neg E1c CCC- CCC-/Watch Neg ETc CCC- CCC-/Watch Neg FTc CCC- CCC-/Watch Neg EPIC PLC: S&P Downgrades Ratings on Six Classes of Notes to 'CCC-' ------------------------------------------------------------------ Standard & Poor's Ratings Services lowered to 'CCC-' and placed on CreditWatch negative its credit ratings on all classes of notes issued by Epic (Industrious) PLC. This follows notification of the sale of the remaining properties backing the underlying loan and possible losses exceeding the combined outstanding balance of the class B to F notes. The Royal Bank of Scotland PLC arranged this synthetic commercial mortgage-backed securities transaction, which closed in October 2006. RBS is the credit default swap counterparty and also the servicer and special servicer. One loan secured by 89 secondary/average industrial properties in the U.K. backs the notes. On July 3, S&P lowered its ratings on all classes in anticipation of the special property auction of 31 of the 120 properties securing the loan in mid-July. All 31 properties sold at the auction at a price representing an average market value decline of 50% since closing. Ernst & Young, the administrative receiver to the borrowers, has now informed us that it has agreed to sell the remainder of the property pool in one lot. It has also told us that it expects completion in early October 2009. Reports in the press suggest that the agreed purchase price is GBP232.1 million (plus costs); this would translate into an MVD since closing of around 60% for that portion of the portfolio. After a sale of the properties, the securitization arrangements require the calculation agent (RBS) to calculate any loss and appoint a verification agent to verify, among other things, the loss. The issuer will then apply losses to the notes in a reverse sequential order, starting with the most junior class of notes. The issuer will then use the note collateral to partly repay the class A principal amount and will use the remainder to reimburse RBS for its losses under the loan. The rating actions reflect S&P's expectation of losses in view of the decision to sell the portfolio in one lot at the present time. The principal loss to the class A notes will be increased by swap breakage fees, enforcement costs, special servicing, and other fees. S&P concludes that losses are likely to exceed the combined class B to F note balance. S&P estimates that the loss severity on the total debt (including the subordinated lenders) could exceed 60%. Ratings List Epic (Industrious) PLC GBP490 Million Commercial Mortgage-Backed Floating-Rate Notes Ratings Lowered and Placed on CreditWatch Negative Rating ------ Class To From ----- -- ---- A CCC-/Watch Neg BBB- B CCC-/Watch Neg BB C CCC-/Watch Neg BB- D CCC-/Watch Neg B+ E CCC-/Watch Neg B F CCC-/Watch Neg B- EUROSAIL 2006: S&P Affirms 'CCC-' Ratings on 5 Classes of Notes --------------------------------------------------------------- Standard & Poor's Ratings Services has affirmed and removed from CreditWatch negative its credit ratings on the class B1a, C1a, C1c, D1a, D1c, E1c, Etc, and FTc notes in Eurosail 2006-3NC PLC. S&P also affirmed the ratings on classes A2b, A2c, A3a, A3c, and A3c DACS. The rating actions follow S&P's credit and cash flow review of the most recent transaction information that S&P has received. The subordinate classes remain at their current ratings of 'CCC-', and in S&P's opinion there is an increased likelihood of nonpayment of timely interest for the class E1c and ETc notes for the next two interest payment dates. The reserve fund has been fully depleted and the uncleared E1c principal deficiency ledger balance has increased to GBP2.6 million. In S&P's opinion, high losses are the main reason for this increasing PDL balance. Cumulative losses increased to 1.54% in June 2009 from 0.37% in September 2008. Repossessions remain above S&P's nonconforming index for transactions of similar seasoning, but fell to 4.97% in June from 6.20% in March 2009 as 90 properties were sold in the quarter. The detachable A3 coupons step up to pay 3% in September and December. This is placing a strain on the available cash flows, and the effect has become more significant in the current low interest rate environment. After December 2009, the class A3 DACs are due no further payments. The liquidity facility continues to be unavailable to pay interest on the subordinate notes. No drawing can be made to pay interest for the class B1a, C, D1, and E1c notes if the balance of all loans that are 90+ days in arrears (including repossessions) is greater than 15% of the initial collateral-backed note balance. This percentage currently stands at 20.14%. Collection rates increased to 115.8% in June from 95.9% in March. S&P believes this sharp increase is due to borrowers' improved ability to cure their arrears balances, given lower scheduled monthly payments in recent months as a result of falling three- month LIBOR. Ratings List Eurosail 2006-3NC PLC EUR227.85 Million, GBP269.913 Million, and US$205 Million Mortgage-Backed Floating-Rate Notes, an Overissuance Of GBP18.360 Million Mortgage-Backed Floating-Rate Notes, and GBP1.173 Million Mortgage-Backed Deferrable-Interest Notes Ratings Removed From CreditWatch Negative and Affirmed Rating ------ Class To From ----- -- ---- B1a BBB BBB/Watch Neg C1a BB BB/Watch Neg C1c BB BB/Watch Neg D1a CCC- CCC-/Watch Neg D1c CCC- CCC-/Watch Neg E1c CCC- CCC-/Watch Neg ETc CCC- CCC-/Watch Neg FTc CCC- CCC-/Watch Neg Ratings Affirmed Class Rating ----- ------ A2b AAA A2c AAA A3a AAA A3c AAA A3c DACs AAA GESB PLC: Moody's Updates Investors on Rating Actions on Bonds -------------------------------------------------------------- Moody's Investors Service updates investors regarding possible further rating actions in relation to the below referenced bonds (amounts reflect initial outstandings): -- GBP104,555,000 GESB plc 8.35% Guaranteed Secured Bonds due 2018; currently rated Caa2, last downgraded to Caa2 from Ba3 on 29 July 2009 Since the July 1994 closing date Moody's rating has been solely based on a financial guarantee insurance policy issued by Ambac Assurance Corporation. The guarantee provided by Ambac ensures the timely payment of interest on each interest payment date, and the payment of principal on or before the scheduled maturity date. Ambac's insurance financial strength rating has migrated to Caa2 from originally Aaa over several rating actions comprising the period from June 4, 2008 to July 29, 2009. Therefore, the Bonds' rating has been adjusted downwards in step with Ambac's ratings over time. This is in compliance with Moody's policy on structured finance securities insured by financial guarantors. Pursuant to this policy, Moody's will withdraw the ratings on structured finance securities insured by guarantors that have financial strength ratings below Baa3 (in other words, non- investment grade) when either of two conditions are met: either, Moody's is unable to determine the underlying rating of the security (the "underlying rating" being the rating which would have existed without the guarantee) or alternatively, the Issuer has requested that the guarantee constitute the sole credit consideration. Moody's understands from the Issuer that, unless an instruction from the Bondholders is received, there will be no further requests made to determine the underlying rating of the Bonds. As explained in the above-referenced press release, absent any such request, on or shortly after 1st September 2009 Moody's intends to withdraw the ratings of the Bonds. As mentioned above, the rating and monitoring of the transaction has been, to date, solely based on the financial guarantee insurance policy issued by Ambac. The last Performance Overview for this transaction was published on May 15, 2009. ITV PLC: Simon Fox Drops Out of Chief Executive Race ---------------------------------------------------- Maija Palmer at The Financial Times reports that Simon Fox, chief executive of HMV, has ruled himself out of the running for the chief executive role at ITV plc. The FT relates Mr. Fox, who emerged as favorite in the race, told the the HMV board he would stay to see through the retailer's three-year restructuring plan he has undertaken, which is in its second year. According to the FT, Mr. Fox's elimination clears the way for other candidates, including Pascal Cagni, head of Apple Europe, Tony Ball, former chief executive of BSkyB and John Cresswell, ITV's current chief operating officer. The FT says an appointment is to be made by the end of the year. ITV, the FT discloses, is seeking a new leader because Michael Grade is stepping down halfway through what was to be a four-year term as executive chairman. About ITV plc ITV plc -- http://www.itvplc.com/-- is a United Kingdom-based advertising funded broadcaster. The Company also operates as an advertising funded media owner in the United Kingdom across all media, including television, radio, press, cinema, outdoor and the Internet. As a producer, ITV makes hours of network television. Its digital channels include ITV2, ITV3, ITV4 and Citv. ITV also makes programs for the BBC, Channel 4, five, Sky and other broadcasters. ITV produces programs watched on screens from San Francisco to Sydney. In addition, it produces a range of products related to ITV programs, such as digital video disks (DVDs) and computer games. Its online properties include itv.com, itvlocal.com and Friends Reunited * * * As reported in the Troubled Company Reporter-Europe on Aug. 11, 2009, Moody's Investors Service said that it downgraded ITV plc's senior unsecured ratings and its Corporate Family Rating to B1 (from Ba3). The rating outlook for ITV is stable. Moody's said the downgrade reflects the weight of ITV's adjusted debt, aggravated by the significant widening of the company's IAS 19 pension deficit at a time when profitability is under severe pressure due to the magnitude of the downturn in the UK's TV advertising market (-17%, ITV family -15%) while (i) the timing and the extent of a recovery in UK TV advertising is uncertain (ii) execution risks on the company's envisaged asset sales remain and (iii) a degree of management uncertainty persists as the company conducts the search for a new chief executive. On Aug. 11, 2009, the Troubled Company Reporter-Europe reported that Fitch Ratings affirmed ITV plc's Long-term Issuer Default Rating at 'BB-', and maintained the rating Outlook at Negative. The agency has also affirmed ITV's senior unsecured rating at 'BB-'. The rating affirmation follows the August 6 release of the UK broadcaster's interim results which showed a fall in net advertising revenue of 15% in the half year to June 30, 2009, and a fall in EBITA of GBP75 million to GBP46 million. ROYAL BANK: MCB Bank to Acquire Pakistan Unit for US$87 Million --------------------------------------------------------------- Naween A. Mangi at Bloomberg News reports that MCB Bank Ltd. agreed to acquire Royal Bank of Scotland Group Plc's Pakistan unit for about US$87 million. Bloomberg relates MCB Bank, Pakistan's biggest lender by market value, said in a statement to the Karachi Stock Exchange on Wednesday it will buy 1.7 billion shares, or a 99.4% stake, at 4.22 rupees apiece before making an offer for the remainder. According to Bloomberg, the statement said the purchase of RBS Pakistan, which has 75 branches in 24 cities, will expand MCB's network of outlets to 1,139. RBS, based in Edinburgh, is selling or shutting businesses in two-thirds of the 54 countries in which it operates after posting the biggest loss in British corporate history last year. On Aug. 10, 2009, the Troubled Company Reporter-Europe, citing Bloomberg News, reported RBS posted a net loss of GBP1.04 billion in the first half of 2009, compared with GBP827 million a year earlier after setting aside GBP7.52 billion (US$12.62 billion) to cover bad loans and declining assets. Bloomberg disclosed about 70% of RBS's losses came from its so-called non-core division, which includes assets the bank plans to sell or discontinue. According to Bloomberg, the bulk of the division is comprised of parts of the global banking and markets businesses, which include propriety trading and higher risk assets. The U.K. government owns 70% of RBS after it invested GBP20 billion last year to rescue the bank. About RBS The Royal Bank of Scotland Group plc (NYSE:RBS) -- http://www.rbs.com/-- is a holding company of The Royal Bank of Scotland plc (Royal Bank) and National Westminster Bank Plc (NatWest), which are United Kingdom-based clearing banks. The company's activities are organized in six business divisions: Corporate Markets (comprising Global Banking and Markets and United Kingdom Corporate Banking), Retail Markets (comprising Retail and Wealth Management), Ulster Bank, Citizens, RBS Insurance and Manufacturing. On October 17, 2007, RFS Holdings B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V., Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and controlled by RBS, completed the acquisition of ABN AMRO Holding N.V. (ABN AMRO). In July 2008, the company disposed its entire interest in Global Voice Group Ltd. WEST BROMWICH: Fitch Affirms 'C' Rating on Tier 2 Debt Securities ----------------------------------------------------------------- Fitch Ratings has affirmed West Bromwich Building Society's Long- term Issuer Default Rating at 'BBB-'. The Outlook on the Long- term IDR remains Negative. The agency has also affirmed the society's lower tier 2 debt securities at 'C' and withdrawn the rating. The rating action follows WBBS's announcement of the legal completion of the exchange of its lower tier 2 debt for participating profit deferred shares, which for regulatory purposes qualify as core tier 1 capital. The exchange was announced on 12 June and is now fully completed. Subordinated notes listed on the official list of the United Kingdom Listing Authority have been cancelled. WBBS is now the UK's 7th largest building society by total equity. WBBS's ratings are: -- Long-term Issuer Default affirmed at 'BBB-', Negative Outlook -- Short-term IDR affirmed at 'F3' -- Individual rating affirmed at 'C/D' -- Support rating affirmed at '3', -- Support Rating Floor affirmed at 'BB' -- Senior Unsecured debt affirmed at 'BBB-' -- Lower tier 2 subordinated debt affirmed at 'C' and withdrawn -- Permanent Interest Bearing Shares affirmed at 'C' * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Sept. 10-11, 2009 AMERICAN BANKRUPTCY INSTITUTE Complex Financial Restructuring Program Hyatt Regency Lake Tahoe, Incline Village, Nevada Contact: http://www.abiworld.org/ Sept. 10-12, 2009 AMERICAN BANKRUPTCY INSTITUTE 17th Annual Southwest Bankruptcy Conference Hyatt Regency Lake Tahoe, Incline Village, Nevada Contact: http://www.abiworld.org/ Oct. 2, 2009 AMERICAN BANKRUPTCY INSTITUTE ABI/GULC "Views from the Bench" Georgetown University Law Center, Washington, D.C. Contact: http://www.abiworld.org/ Oct. 7-9, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Desert Ridge, Phoenix, Arizona Contact: 312-578-6900; http://www.turnaround.org/ Oct. 20, 2009 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Paris Las Vegas, Las Vegas, Nev. Contact: http://www.abiworld.org/ Dec. 3-5, 2009 AMERICAN BANKRUPTCY INSTITUTE 21st Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, California Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 29-May 2, 2010 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ June 17-20, 2010 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Michigan Contact: 1-703-739-0800; http://www.abiworld.org/ July 7-10, 2010 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Ocean Edge Resort, Brewster, Massachusetts Contact: 1-703-739-0800; http://www.abiworld.org/ July 14-17, 2010 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Conference The Ritz-Carlton Amelia Island, Amelia, Fla. Contact: http://www.abiworld.org/ Aug. 5-7, 2010 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 6-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ Dec. 2-4, 2010 AMERICAN BANKRUPTCY INSTITUTE 22nd Annual Winter Leadership Conference Camelback Inn, Scottsdale, Arizona Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 31-Apr. 3, 2011 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ June 9-12, 2011 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa Traverse City, Michigan Contact: http://www.abiworld.org/ Dec. 1-3, 2011 AMERICAN BANKRUPTCY INSTITUTE 23rd Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, California Contact: 1-703-739-0800; http://www.abiworld.org/ ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than US$3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/booksto order any title today. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Valerie C. Udtuhan, Marites O. Claro, Rousel Elaine C. Tumanda, Joy A. Agravante and Peter A. Chapman, Editors. Copyright 2009. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *