/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/090916.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 Wednesday, September 16, 2009, Vol. 10, No. 183 Headlines A U S T R I A A. & H. FROEHLICH: Creditors Must File Claims by September 25 B.T.V. TRANSPORT: Claims Filing Deadline is September 25 CAFE RITTER: Claims Filing Deadline is September 22 DHC WINE: Claims Filing Deadline is September 21 DONAU-TRANS GMBH: Creditors Must File Claims by September 22 ELEKTRO KRUG: Creditors Must File Claims by September 23 EX LIBRIS: Claims Filing Deadline is September 23 G & N DIAMOND: Claims Filing Deadline is September 22 JOSEF SMUTNY: Claims Filing Deadline is September 22 LHG METALLBAU: Creditors Must File Claims by September 28 MICULESCU ISOLIERTECHNIK: Creditors Must File Claims by Sept. 23 SCHAUPERL JOSEF: Creditors Must File Claims by September 28 SJH BRENNSTOFFHANDEL: Creditors Must File Claims by September 28 WIENERBERGER AG: Mulls Rights Issue to Bolster Balance Sheet UNIMATRIX GMBH: Creditors Must File Claims by September 28 B E L G I U M CARMEUSE HOLDING: S&P Keeps CreditWatch Negative on 'B+' Rating KBC BANK: S&P Cuts Ratings on Hybrid Capital Securities to 'C' B U L G A R I A * BULGARIA: Company Bankruptcies Up 63% Year-on-Year to 221 F R A N C E BANQUE D'ORSAY: Fitch Affirms Individual Rating at 'D' G E R M A N Y HEIDELBERGCEMENT AG: To Sell Shares Via Rights Issue HEIDELBERGCEMENT AG: S&P Puts 'B-' Rating on CreditWatch Positive TRANSAMERICAN ENERGY: To File Financial Statements by Sept. 28 I R E L A N D ANGLO IRISH: Moody's Junks Ratings on Junior Subordinated Debt I T A L Y ALCATEL-LUCENT: Agrees to Freeze Italian Plant Restructuring INTESA SANPAOLO: Set to Decide on Tremonti Bonds By End of Month K A Z A K H S T A N AGJAN I DRUGIYE: Creditors Must File Claims by September 18 AKBIDAI LLP: Creditors Must File Claims by September 18 AKERKE GROUP: Creditors Must File Claims by September 18 AKTAU STROY: Creditors Must File Claims by September 18 AKTOBE INVEST: Creditors Must File Claims by September 18 AKTOBE TRADE: Creditors Must File Claims by September 18 ALMATY STROY: Creditors Must File Claims by September 18 ALTYN NAR: Creditors Must File Claims by September 18 AMANGELDY AGRO: Creditors Must File Claims by September 18 ASTANA PHARM: Creditors Must File Claims by September 18 BATYS STROY: Creditors Must File Claims by September 18 CAPITAL ASTYK: Creditors Must File Claims by September 18 ELECTRIC COMPANY: Creditors Must File Claims by September 18 ENERGO TECH: Creditors Must File Claims by September 18 GLOBAL INFORM: Creditors Must File Claims by September 18 GOR SVET: Creditors Must File Claims by September 18 INTER TECH: Creditors Must File Claims by September 18 IRTYSH INTER: Creditors Must File Claims by September 18 KARATAS STROY: Creditors Must File Claims by September 18 KAZ ELECTRO: Creditors Must File Claims by September 18 MABETEX MEGA: Creditors Must File Claims by September 18 SCART TRADE: Creditors Must File Claims by September 18 SEMEYSKAYA TEPLO: Creditors Must File Claims by September 18 TAZA KURYLYS: Creditors Must File Claims by September 18 TSK KAZ: Creditors Must File Claims by September 18 UG TRANS: Creditors Must File Claims by September 18 UNJU STROY: Creditors Must File Claims by September 18 URDJAR ASTYK: Creditors Must File Claims by September 18 K Y R G Y Z S T AN BAI CHENG: Creditors Must File Claims by September 30 L I T H U A N I A UKIO AB: Moody's Withdraws B2/Not Prime Deposit Ratings L U X E M B O U R G BREEZE FINANCE: Moody's Cuts Rating on Class B Notes to 'B2' N E T H E R L A N D S LYONDELL CHEMICAL: Files Joint Chapter 11 Plan of Reorganization R U S S I A UNITED COMPANY: Guinea Takes Over Friguia Alumina Refinery S L O V A K R E P U B L I C VOLKSBANK SLOVENSKO: Fitch Cuts Individual Rating to 'D' S P A I N OBRASCON HUARTE: Moody's Downgrades Senior Bond Rating to 'Ba1' S W I T Z E R L A N D DESCA TRANS AG: Claims Filing Deadline is October 5 DU 25: Claims Filing Deadline is September 30 RF COSMETICS: Claims Filing Deadline is September 30 ZANIN TRANSPORTE: Claims Filing Deadline is September 30 U N I T E D K I N G D O M AVONCROP LIMITED: In Administration; Up for Sale FEES COMPANY: In Administration; KPMG Appointed GREAT LEIGHS: To Be Sold to Consortium LEHMAN BROTHERS: PwC Says Euro Unit Clients Have to Wait 2 Years LEHMAN BROTHERS: Firms Face FSA Action Over Structured Products LEHMAN BROTHERS: PwC Appeals U.K. Court Denial of Proposed Scheme MG ROVER: UK Gov't. Seeks to Disqualify Former Owners MOORGATE TAVERNS: Seeks to Go Into Administration PLASTIC ENGINEERING: Enters Into Administration TIGGI'S HOLDINGS: In Administration; KPMG Appointed VISTEON CORP: G. Adams Demands Probe on U.K. Practices WHITE TOWER: Fitch Puts 'CCC'-Rated Class E Notes on Watch Neg. WINDSAVE LTD: Goes Into Liquidation * 46,900 UK Companies Have Collapsed Since Run on Northern Rock X X X X X X X X * Konstantin Konstantinov Rejoins Chadbourne & Parke in Moscow ********* ============= A U S T R I A ============= A. & H. FROEHLICH: Creditors Must File Claims by September 25 ------------------------------------------------------------- Creditors of A. & H. Froehlich KG have until September 25, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for October 9, 2009 at 11:10 a.m. at: Land Court of Korneuburg Hall II First Floor Korneuburg Austria For further information, contact the company's administrator: Mag. Rainer Ebert Hauptplatz 16 2020 Hollabrunn Austria Tel: 02952/25 26 Fax: 02952/25 26 18 E-mail: rainer.ebert@gmx.net B.T.V. TRANSPORT: Claims Filing Deadline is September 25 -------------------------------------------------------- Creditors of B.T.V. Transport GmbH have until September 25, 2009, to file their proofs of claim. For further information, contact the company's administrator: Mag. Hans Georg Popp Bahnhofstr. 22/1 8112 Gratwein Austria Tel: 03124/55 0 77 Fax: 03124/55 0 77 - 4 E-mail: kanzlei@popp-strauss.at CAFE RITTER: Claims Filing Deadline is September 22 --------------------------------------------------- Creditors of Cafe Ritter GmbH have until September 22, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for October 6, 2009 at 12:15 p.m. For further information, contact the company's administrator: Dr. Walter Kainz Gusshausstrasse 23 1040 Wien Austria Tel: 505 88 31 Fax: 505 94 64 E-mail: kanzlei@kainz-wexberg.at DHC WINE: Claims Filing Deadline is September 21 ------------------------------------------------ Creditors of DHC Wine Trading GmbH have until September 21, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for October 5, 2009, at 10:00 a.m. For further information, contact the company's administrator: Mag. Michael Wagner Untere Hauptstrasse 104 7100 Neusiedl/See Austria Tel: 02167/3503 Fax: 02167/3503-3 E-mail: neusiedl@hbw.co.at DONAU-TRANS GMBH: Creditors Must File Claims by September 22 ------------------------------------------------------------ Creditors of Donau-Trans GmbH have until September 22, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for October 13, 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: Dr. Franz Hofbauer Hauptplatz 6 3370 Ybbs/Donau Austria Tel: 07412/52731 Fax: 07412/52731-22 E-mail: kanzlei@hofbauer-nokaj.at ELEKTRO KRUG: Creditors Must File Claims by September 23 -------------------------------------------------------- Creditors of Elektro Krug GmbH have until September 23, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for October 7, 2009 at 12:15 p.m. at: Land Court of the Leoben Hall IV First Floor Leoben Austria For further information, contact the company's administrator: Mag. Ulrich Berger Schillerstrasse 2 8600 Bruck an der Mur Austria Tel: 03862-56681 Fax: 03862-56681-88 E-mail: office@re-berger.at EX LIBRIS: Claims Filing Deadline is September 23 ------------------------------------------------- Creditors of Ex Libris Handel GmbH have until September 23, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for October 7, 2009 at 9:30 a.m. For further information, contact the company's administrator: Dr. Edmund Roehlich Am Heumarkt 9/I/11 1030 Wien Austria Tel: 713 46 51 Fax: 713 84 55 E-mail: proksch@eurojus.at G & N DIAMOND: Claims Filing Deadline is September 22 ----------------------------------------------------- Creditors of G & N Diamond Projekt GmbH have until September 22, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for October 6, 2009 at 9:30 a.m. For further information, contact the company's administrator: Dr. Hans Rant Seilerstatte 5 1010 Wien Austria Tel: 513 31 65 Fax: 512 20 01 E-mail: ra-kanzlei@rant-freyler.at JOSEF SMUTNY: Claims Filing Deadline is September 22 ---------------------------------------------------- Creditors of Josef Smutny Nfg. GmbH have until September 22, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for October 6, 2009 at 1:30 p.m. For further information, contact the company's administrator: Dr. Walter Kainz Gusshausstrasse 23 1040 Wien Austria Tel: 505 88 31 Fax: 505 94 64 E-mail: kanzlei@kainz-wexberg.at LHG METALLBAU: Creditors Must File Claims by September 28 --------------------------------------------------------- Creditors of LHG Metallbau GmbH have until September 28, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for October 13, 2009, at 10:10 a.m. at: Civil Court of Graz Room 205 Second Floor Graz Austria For further information, contact the company's administrator: Mag.Dr. Regina Schedlberger Andritzer Reichsstrasse 42 8045 Graz-Andritz Austria Tel: 0316/695100 Fax: 0316/695100-9 E-mail: office@schedlberger.com MICULESCU ISOLIERTECHNIK: Creditors Must File Claims by Sept. 23 ---------------------------------------------------------------- Creditors of Miculescu Isoliertechnik GmbH have until September 23, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for October 7, 2009, at 10:00 a.m. at: Land Court of the Leoben Hall IV First Floor Leoben Austria For further information, contact the company's administrator: Dr. Karl Maier Hauptplatz 13 8720 Knittelfeld Austria Tel: 03512-83428 Fax: 03512-83428-50 E-mail: office@ra-maier.at SCHAUPERL JOSEF: Creditors Must File Claims by September 28 ----------------------------------------------------------- Creditors of Schauperl Josef Transport GmbH have until September 28, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for October 13, 2009 at 9:45 a.m. at: Civil Court of Graz Room 205 Second Floor Graz Austria For further information, contact the company's administrator: Mag. Michael Berghofer Bismarckstrasse 8 8330 Feldbach Austria Tel: 03152/2506 Fax: 03152/4979 E-mail: feldbach@reifundpartner.at SJH BRENNSTOFFHANDEL: Creditors Must File Claims by September 28 ---------------------------------------------------------------- Creditors of SJH Brennstoffhandel GmbH have until September 28, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for October 13, 2009, at 10:00 a.m. at: Civil Court of Graz Room 205 Second Floor Graz Austria For further information, contact the company's administrator: Mag. Michael Berghofer Bismarckstrasse 8 8330 Feldbach Austria Tel: 03152/2506 Fax: 03152/4979 E-mail: feldbach@reifundpartner.at WIENERBERGER AG: Mulls Rights Issue to Bolster Balance Sheet ------------------------------------------------------------ Haig Simonian at The Financial Times reports that Wienerberger AG is to launch a rights issue to stabilize its balance sheet and allow a Libyan sovereign wealth fund to acquire up to 10% of its shares. According to the FT, the group will now raise about EUR336 million through a deeply discounted 2 for 5 rights issue at EUR10 a share. The proceeds will bolster the balance sheet and follows the renegotiation last month of some bank covenants, the FT relates. At the end of June, the group�s debt stood at EUR978 million, more than three times operating profits, the FT notes. Wienerberger, the FT discloses, posted a net loss of EUR204 million in the first half of the year. The company's first-half sales fell 29% to EUR898 million. Headquarterd in Vienna, Austria, Wienerberger AG -- http://www.wienerberger.com/-- is an international building materials group. The business activities of the Group can be classified in five segments: Central-East Europe, Central-West Europe, North-West Europe, North America, and investment and other. Wienerberger concentrates on products for walls, roofs, facade and paving, with a concentration on ceramic products in the form of bricks and clay roof tiles. The Company operates 243 plants in 26 countries and five export markets. During the year ended December 31, 2008, the Company acquired 100% interest in IGM Backa Nova, 73.64% interest in Sandtoft Ltd., 83.33% interest in Bockhorner Klinker GmbH, 49.00% interest in EUCOSO sp. Z.o.o. and 100% interest in IGM Ciglana d.o.o. Petrinja. UNIMATRIX GMBH: Creditors Must File Claims by September 28 ---------------------------------------------------------- Creditors of Unimatrix GmbH have until September 28, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for October 12, 2009 at 10:00 a.m. at: Land Court of Linz Room 522 Fifth Floor Linz Austria For further information, contact the company's administrator: Dr. Peter Shamiyeh Hessenplatz 11 4020 Linz Austria Tel: 922 000 Fax: 922 000-210 E-mail: p.shamiyeh@sr-law.at ============= B E L G I U M ============= CARMEUSE HOLDING: S&P Keeps CreditWatch Negative on 'B+' Rating --------------------------------------------------------------- Standard & Poor's Ratings Services said that it was keeping its 'B+' long-term corporate credit ratings on Belgium-based lime producer Carmeuse Holding S.A. on CreditWatch, where they were placed with negative implications on July 9, 2009 to reflect covenant-related and refinancing risks. S&P's '3' recovery rating on Carmeuse's senior secured debt remain unchanged, indicating S&P's expectation of meaningful (50%-70%) recovery for lenders in an event of payment default. "The decision to keep the ratings on CreditWatch reflects uncertainty about the final outcome of discussions between Carmeuse and its lender banks on the company's financial covenants and debt refinancing," said Standard & Poor's credit analyst Per Karlsson. Carmeuse was in breach of two financial covenants at the end of June 2009, but received waivers from its banks. The current ratings factor in Carmeuse's ability to amend its covenants. S&P understand that the company's negotiations with its banks may also address a EUR107 million revolving loan that matures in December 2009 and which S&P understand to be Carmeuse's main liquidity source. If Carmeuse is unable to reset the covenants, the company is likely to remain in breach its covenants at the end of the third quarter of 2009. S&P aims to resolve the CreditWatch placement when Carmeuse and its lender banks have completed their talks on the company's financial covenants and its debt refinancing is in place. KBC BANK: S&P Cuts Ratings on Hybrid Capital Securities to 'C' -------------------------------------------------------------- Standard & Poor's Ratings Services said that it has lowered to 'C' from 'CCC' the issue ratings on three hybrid capital securities guaranteed by Belgium-based KBC Bank N.V. (A/Stable/A-1). S&P also lowered the issue rating on a fourth hybrid capital security issued by KBC to 'C' from 'CC'. At the same time, S&P removed the rating on the $280 million preferred stock issued by subsidiary KBC Funding Trust II from CreditWatch with negative implications, where it had been placed on Aug. 10, 2009. The downgrades follow KBC's announcement of a tender offer on four hybrid capital securities. These rating actions do not affect the counterparty credit ratings on KBC or the 'CCC' ratings on two hybrid capital issues not subject to the tender offer. Under S&P's criteria on exchange offers, S&P consider KBC's tender offer as a "distressed exchange." According to its criteria, S&P views a tender offer as distressed if investors accept less than the original promise because of the risk that the issuer will not fulfill its original obligations. S&P views KBC's tender offer as distressed because it proposes a substantial discount to par value and because S&P consider there is a sizable risk of coupon deferral, in the near or medium term, on the securities subject to the tender offer. S&P previously lowered the ratings on the tender offer securities to 'CCC' from 'BB+' on May 14, 2009. At the time, S&P considered that the risk of coupon deferral had increased considerably, owing to a near-wipe-out of distributable reserves and uncertainty about whether the European Commission would request coupon deferral in order to approve the Belgian government support measures. Even following KBC's Sept. 1, 2009, announcement that it would pay all coupons on hybrid capital instruments due in 2009, S&P believes the risk of coupon deferral in 2010 remains high for all of KBC's hybrid capital instruments. Restrictions on payment of coupons on hybrids could be part of the restructuring plan that the EC requires for the approval of state aid to KBC. S&P's view also takes into account that coupons could be suspended as KBC may not be able to rebuild its distributable reserves, nearly depleted by losses in the first half of 2009. On completion of an offer that S&P consider as a distressed exchange, S&P reviews the ratings on the affected securities. In KBC's case, considering the likelihood of continuing uncertainty regarding the EC's restrictions and KBC's profitability, S&P would expect to raise the ratings on any untendered securities subject to the offer to 'CCC'. Ratings List Downgraded KBC Bank N.V. Junior Subordinated GBP525 mil 6.202% (up to) callable perp debt secs hybrid To From -- ---- C CC KBC Bank Funding Trust II* Preferred Stock EUR280 mil 6.875% fxd/fltg rate non-cum trust pfd secs To From -- ---- C CCC/Watch Neg KBC Bank Funding Trust III* Preferred Stock US$600 mil non-cum gtd trust pfd secs hybrid To From -- ---- C CCC KBC Bank Funding Trust IV* Preferred Stock EUR300 mil non-cum gtd trust pfd secs hybrid To From -- ---- C CCC Ratings Affirmed KBC Bank N.V. Junior Subordinated EUR700 mil 8% callable perp hybrid EUR1.25 bil 8% perp callable hybrid Rating ------ CCC * Guaranteed by KBC Bank N.V. =============== B U L G A R I A =============== * BULGARIA: Company Bankruptcies Up 63% Year-on-Year to 221 ----------------------------------------------------------- Dnevnik.bg, citing Registry Agency data, reports that number of Bulgarian business going bust has increased 63% year-on-year to 221 since the start of the year. According to Dnevnik, the increase in the number of firms that have filed for creditor protection was 50%. Dnevnik relates Evgenii Ivanov, executive director of the Confederation of Employers and Industrialists in Bulgaria (CEIBG), said the figures were not alarming given the bad shape of the economy. Mr. Ivanov, as cited by Dnevnik, said that the bulk of the companies that were going of out business right now were small firms that have limited resources to cushion the impact of the downturn. =========== F R A N C E =========== BANQUE D'ORSAY: Fitch Affirms Individual Rating at 'D' ------------------------------------------------------ Fitch Ratings has placed Banque d'Orsay's 'BBB+' Long-term Issuer Default Rating, 'F2' Short-term IDR and Support Rating of '2'on Rating Watch Negative. The Individual Rating has been affirmed at 'D'. The RWN placed on Banque d'Orsay follows similar rating action taken on the IDRs and Support Rating of its parent, WestLB AG ('A-' RWN/'F1' RWN). The placing of WestLB on RWN reflects the ownership change expected by 2011 that has been imposed by the European Commission in the context of the review of the state aid received by WestLB, as well as a potential reduction of the importance of WestLB to its owner, the German state of North Rhine Westfalia. Further conditions imposed by the European Commission include restructuring measures, such as a substantial downsizing of the bank's balance sheet. Banque d'Orsay is fully-owned by WestLB, and WestLB's commitment to its subsidiary is publicly stated in its annual report, in the form of a declaration of backing, a so- called 'Patronatserklaerung.' The IDRs of Banque d'Orsay are therefore based on the potential support available from WestLB. Any further change in WestLB's IDRs or in Banque d'Orsay's ownership structure will affect Banque d'Orsay's IDRs and Support Rating. Banque d'Orsay is a niche bank operating in arbitrage, asset management and private banking, primarily in France. In Fitch's rating criteria, a bank's standalone risk is reflected in Fitch's Individual ratings and the prospect of external support is reflected in Fitch's Support ratings. Collectively these ratings drive Fitch's Long- and Short-term IDRs. ============= G E R M A N Y ============= HEIDELBERGCEMENT AG: To Sell Shares Via Rights Issue ---------------------------------------------------- Daniel Schafer at The Financial Times reports that HeidelbergCement AG said it would increase its capital by 50%, by selling 62.5 million shares via a rights issue of one new share for two existing ones. According to the FT, HeidelbergCement could raise as much as EUR2.5 billion (US$3.6 billion) with the rights issue. The price for the new shares is set to be announced next Tuesday, and the subscription period is expected to run from September 24 to October 7, the FT discloses. "This is an important step to strengthen the capital base and serves to further reduce the leverage," the FT quoted Bernd Scheifele, chief executive, as saying. About HeidelbergCement Based in Heidelberg, Germany, HeidelbergCement AG (FRA:HEI) -- http://www.heidelbergcement.com/-- is a global producer of cement, concrete and building materials. The Company's core activities include the production and distribution of cement and aggregates, the two raw materials for concrete. It is also engaged in in the provision of such products as ready-mixed concrete, as well as concrete products and elements. It divides its activities into four group areas: Europe-Central Asia, North America, Asia-Australia-Africa-Mediterranean and Group Services. It divides its products into three lines: cement, aggregates and concrete and building products. Its products include sand, gravel, crushed stone, white cement, trass cement, masonry cement, aquament and portland cement for hydraulic engineering, as well as light, heavy and aerated concrete building blocks, pavers, prefabricated ceilings and walls, prefabricated cellar units and prefabricated sewage works units, among others. In 2007, the Company took over Hanson Group. * * * The Troubled Company Reporter-Europe reported on July 10, 2009, that Standard & Poor's Ratings Services affirmed the 'CCC+' rating on the senior unsecured bonds issued by Germany-based building materials group HeidelbergCement AG (B-/Negative/B), and subsidiaries HeidelbergCement Finance B.V., Hanson Ltd., and Hanson Australia Funding Ltd. At the same time, the bonds were removed from CreditWatch, where they were placed with developing implications on June 24, 2009. On June 24, 2009, the Troubled Company Reporter-Europe reported that Fitch Ratings affirmed Germany-based HeidelbergCement AG's Long-term Issuer Default rating at 'B' and removed the rating from Rating Watch Negative. A Negative Outlook was assigned. As reported in the Troubled Company Reporter-Europe on June 23, 2009, Moody's confirmed HeidelbergCement's B1 corporate family rating and assigned a negative outlook. At the same time the ratings of all bonds outstanding at HeidelbergCement and its subsidiaries were downgraded to B3. The rating action was prompted by HC's successful refinancing of its bank debt. The new agreement includes clauses which place bondholders structurally behind the bank lenders. HEIDELBERGCEMENT AG: S&P Puts 'B-' Rating on CreditWatch Positive ----------------------------------------------------------------- Standard & Poor's Ratings Services said that it has placed its 'B-' long-term corporate credit rating on German heavy building materials manufacturer HeidelbergCement AG on CreditWatch with positive implications. S&P also placed the 'CCC+' issue ratings on the senior unsecured bonds issued by subsidiaries HeidelbergCement Finance B.V., Hanson Ltd., and Hanson Australia Funding Ltd. on CreditWatch positive. S&P's recovery rating on these debt instruments remains unchanged at '5', indicating S&P's expectation of modest (10%-30%) recovery in the event of a payment default. At the same time, S&P affirmed the 'B' short-term rating on HeidelbergCement. "S&P's CreditWatch placement follows HeidelbergCement's announced decision to launch a capital increase through the proposed issuance of 62.5 million new shares, concurrently with a placement of existing shares held by banks to institutional investors," said Standard & Poor's credit analyst Xavier Buffon. "We believe that any material cash proceeds to be raised from this prospective capital increase could somewhat improve the group's financial profile and key credit metrics through a like-amount of debt reduction, and provide larger headroom under financial covenants," added Mr. Buffon. S&P would therefore view any successful outcome of this plan as an additional positive step toward a strengthened financial profile and liquidity position for HeidelbergCement, after the group's recently completed refinancing of EUR8.7 billion of bank debt through a new set of facilities that mature in 2011. In addition, and even more importantly, S&P think that this move could send positive signals to capital markets and, all other things being equal, increase the chances of successfully refinancing the heavy debt load maturing in December 2011. In particular, S&P thinks that the possible heavy dilution of the stake in the company held by the family and controlling shareholder, who is experiencing financial difficulties, could remove an important negative factor for HeidelbergCement's credit profile. S&P intends to wait for the outcome of the transaction to resolve the CreditWatch status. In particular, S&P will need to assess more precisely the cash impact of the transaction and the ultimate shareholder structure that could result. At this early stage, S&P would expect any positive rating impact to be likely limited to one notch at best, as S&P thinks key challenges remain to be tackled, such as executing significant assets disposals and addressing the huge refinancing need in late 2011. If take-up is limited, or the price too low to generate material cash proceeds, in particular, S&P could leave the ratings unchanged. TRANSAMERICAN ENERGY: To File Financial Statements by Sept. 28 -------------------------------------------------------------- TransAmerican Energy Inc. said it is nearing completion of its annual audited financial statements for the year ended April 30, 2009, which should have been filed by August 28, 2009 as required by National Instrument 51-102 Continuous Disclosure Obligations. The Company anticipates filing the Annual Financial Statements by September 28, 2009. The Company intends to satisfy the provisions of 12-203 by filing a bi-weekly Default Status Report containing the information prescribed by 12-203, as long as the Company remains in default of the financial statement filing requirement. TransAmerican Energy Inc. (TSX VENTURE:TAE)(FRANKFURT:YQJ) is not currently subject to any insolvency proceedings. If the Company provides any information to any of its creditors during the period in which it is in default of filing the Annual Financial Statements, the Company confirms that it will also file material change reports on SEDAR containing such information. ============= I R E L A N D ============= ANGLO IRISH: Moody's Junks Ratings on Junior Subordinated Debt -------------------------------------------------------------- Moody's Investors Service has downgraded the junior subordinated debt (upper tier 2) of Anglo Irish Bank Corporation Limited to Caa2 from B3. The outlook on this class of debt remains negative. The downgrade follows the announcement that the bank is to defer the coupon on the GBP300 million Fixed to Floating Rate Undated Subordinated Notes issued in September 2007 (of which under GBP40 million remains outstanding). The Caa2 rating reflects Moody's view that the prospect for recovery of interest and principal for these instruments is low given the challenges the bank faces and the length of time that the bank may need to return to sustainable profitability. Moody's notes that the bank has already deferred coupons on its tier 1 securities and that as a result of classification of the buyback of the tier 1 securities as a distressed exchange the rating on these instruments was downgraded to C. The buyback offer on the junior subordinated debt was not classed as a distressed exchange and therefore no rating action was taken at that time. The deferral of coupons on the tier 1 instruments was a requirement from the European Commission for approving the Irish Government's recapitalization of the bank. Moody's understands that there has not been any guidance from the EC on when payments will be able to resume, however Moody's expect that this is unlikely to happen until the bank has returned to profitability and Moody's would expect that payments on the junior subordinated debt may not be made until the same time. However, given the current situation of the bank and the difficult economic environment Moody's would not expect this to happen in the medium term, although Moody's note that a substantial portion of its loan portfolio will be transferred to the National Asset Management Agency (NAMA) and this may speed up this process. Depending on the value of the assets which will be transferred, however, this could also lead to a further capital requirement, although Moody's would expect the Irish government to remain supportive of the bank. Moody's are also of the opinion that the government support is likely to continue to be required to give the bank sufficient flexibility to restructure and establish a viable business model again. The last rating action on Anglo Irish was on July 30, 2009, when the bank's tier 1 securities were downgraded to C. Anglo Irish Bank had total assets of EUR88.5 billion at end-March 2009. The bank is headquartered in Dublin, Ireland. ========= I T A L Y ========= ALCATEL-LUCENT: Agrees to Freeze Italian Plant Restructuring ------------------------------------------------------------ DMeurope.com, citing AFP, reports that Alcatel-Lucent has accepted a request from the Italian government to provisionally freeze the restructuring of its plant in Battipaglia, Italy. DMeurope.com recalls Alcatel-Lucent, which has 2,000 employees in Italy, announced several months ago that it planned to end telecommunications network equipment production at the site and keep only the research center. About Alcatel-Lucent France-based Alcatel-Lucent (Euronext Paris and NYSE: ALU) -- http://www.alcatel-lucent.com/-- provides product offerings that enable service providers, enterprises and governments worldwide, to deliver voice, data and video communication services to end users. In the field of fixed, mobile and converged broadband networking, Internet protocol (IP) technologies, applications and services, the company offers the end-to-end product offerings that enable communications services for residential, business customers and customers. It has operations in more than 130 countries. It has three segments: Carrier, Enterprise and Services. The Carrier segment is organized into seven business divisions: IP, fixed access, optics, multicore, applications, code division multiple access networks and mobile access. Its Enterprise business segment provides software, hardware and services that interconnect networks, people, processes and knowledge. Its Services business segment integrates clients' networks. In October 2008, the company completed the acquisition of Motive, Inc. * * * As reported in the Troubled Company Reporter-Europe on Sept. 4, 2009, Standard & Poor's Ratings Services said it has affirmed its 'B+/B' long-term and short-term corporate credit ratings on French telecommunications equipment supplier Alcatel Lucent. S&P said the outlook is negative. INTESA SANPAOLO: Set to Decide on Tremonti Bonds By End of Month ---------------------------------------------------------------- Lorenzo Totaro at Bloomberg News reports that Intesa Sanpaolo SpA Chief Executive Officer Corrado Passera reiterated that the Italian bank will decide by the end of the month whether to sell convertible bonds to the government to boost capital. Mr. Passera, as cited by Bloomberg News, said the bank will make its decision on selling the so-called Tremonti bonds based on whether it has "all the resources to assure that we can meet lending needs and requests." On Sept. 7, 2009, the Troubled Company Reporter-Europe, citing The Financial Times, reported Intesa may not push through with its plan to request for EUR4 billion (US$5.7 billion) in state aid. Mr. Passera told the FT the bank may get by without an investment of so-called "Tremonti bonds", which Italian banks would issue to the government in return for injections of state cash. "The board will take a decision at the end of the month on the basis of how the market has developed, on our results, and achievability of our planned disposals," the FT quoted Mr. Passera as saying. "We might press ahead with our plan to issue EUR4 billion of them. But it is also possible that we will say no or decide to issue only a portion." According to the FT, shareholders would rather the bank did not issue the bonds, which carry a coupon of 8.5%, and remained independent of potential government influence. Asset Sale Lorenzo Totaro at Bloomberg News reports Mr. Passera said proceeds from the bank's planned sale of some assets will be used to improve the lender's capital levels. Bloomberg recalls the Italian bank said on Sept. 11 that it was considering the sale of some minority stakes including its holding in Banca Fideuram unit. Intesa Sanpaolo SpA -- http://www.group.intesasanpaolo.com/-- is an Italy-based banking group. It provides banking services for private and corporate clients. The Company�s products and services include current and saving accounts, loans, mortgages, financing, payment and factoring services, investment and private banking services. The Company divides its activities into six main business units: Public Finance, Corporate and Investment Banking, Territorial Banks, Foreign Banks, Eurizon Capital, and Banca Fideuram. Public Finance operates through Banca Infrastrutture Innovazione e Sviluppo; Corporate and Investment Banking is active through Banca IMI, Intesa Sanpaolo Bank Ireland, and Zao Banca Intesa, among others; Territorial Banks includes Mediocredito Italiano, Intesavita, and Setefi, among others; Foreign Banks includes CIB Bank, and KMB Bank, among others; Eurizon Capital is a subsidiary specialized in the management of investments funds; Banca Fideuram is a subsidiary operating in the Private Banking sector. =================== K A Z A K H S T A N =================== AGJAN I DRUGIYE: Creditors Must File Claims by September 18 ----------------------------------------------------------- Creditors of LLP Firm Agjan I Drugiye have until September 18, 2009, to submit proofs of claim to: Jumabaev Str. 102-25 Petropavlovsk North Kazakhstan Kazakhstan The Specialized Inter-Regional Economic Court of North Kazakhstan commenced bankruptcy proceedings against the company on June 18, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of North Kazakhstan Brusilovsky Str. 60 Petropavlovsk North Kazakhstan Kazakhstan AKBIDAI LLP: Creditors Must File Claims by September 18 ------------------------------------------------------- Creditors of LLP Firm Akbidai have until September 18, 2009, to submit proofs of claim to: Tolstoy Str. 19-38 Pavlodar Kazakhstan The Specialized Inter-Regional Economic Court of Pavlodar commenced bankruptcy proceedings against the company on June 22, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of Pavlodar Djambulskaya Str. 6 Pavlodar Kazakhstan AKERKE GROUP: Creditors Must File Claims by September 18 -------------------------------------------------------- Creditors of LLP Akerke Group Ltd. have until September 18, 2009, to submit proofs of claim to: Ilyaev Str. 24 Shymkent South Kazakhstan Kazakhstan The Specialized Inter-Regional Economic Court of South Kazakhstan commenced bankruptcy proceedings against the company on June 12, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of South Kazakhstan Tynybaev Str. 42 Shymkent South Kazakhstan Kazakhstan AKTAU STROY: Creditors Must File Claims by September 18 ------------------------------------------------------- Creditors of LLP Aktau Stroy Montage have until September 18, 2009, to submit proofs of claim to: Building of Auto Station Room 11 Micro District 28 Aktau Mangistau Kazakhstan The Specialized Inter-Regional Economic Court of Mangistau commenced bankruptcy proceedings against the company on June 18, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of Mangistau Building of Former kindergarten 51 Micro District 27 Aktau Mangistau Kazakhstan AKTOBE INVEST: Creditors Must File Claims by September 18 --------------------------------------------------------- LLP Aktobe Invest Service is currently undergoing liquidation. Creditors have until September 18, 2009, to submit proofs of claim to: Maresyev Str. 87 Aktobe Aktube Kazakhstan AKTOBE TRADE: Creditors Must File Claims by September 18 -------------------------------------------------------- Creditors of LLP Aktobe Trade have until September 18, 2009, to submit proofs of claim to: Altynsarin Str. 31 Aktobe Aktube Kazakhstan The Specialized Inter-Regional Economic Court of Aktube commenced bankruptcy proceedings against the company on June 23, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of Aktube Satpaev Str. 16 Aktobe Aktube Kazakhstan ALMATY STROY: Creditors Must File Claims by September 18 -------------------------------------------------------- Creditors of LLP Almaty Stroy Consulting have until September 18, 2009, to submit proofs of claim to: Tereshkov Str. 10 Otenai Taldykorgan Almaty Kazakhstan The Specialized Inter-Regional Economic Court of Almaty commenced bankruptcy proceedings against the company on June 19, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of Almaty Tauelsyzdyk Str. 53 Taldykorgan Almaty Kazakhstan ALTYN NAR: Creditors Must File Claims by September 18 ----------------------------------------------------- Creditors of JSC Altyn Nar have until September 18, 2009, to submit proofs of claim to: Tereshkov Str. 10 Otenai Taldykorgan Almaty Kazakhstan The Specialized Inter-Regional Economic Court of Almaty commenced bankruptcy proceedings against the company on June 23, 2009 after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of Almaty Tauelsyzdyk Str. 53 Taldykorgan Almaty Kazakhstan AMANGELDY AGRO: Creditors Must File Claims by September 18 ---------------------------------------------------------- Creditors of LLP Amangeldy Agro have until September 18, 2009, to submit proofs of claim to: Jumabaev Str. 102-25 Petropavlovsk North Kazakhstan Kazakhstan The Specialized Inter-Regional Economic Court of North Kazakhstan commenced bankruptcy proceedings against the company on June 22, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of North Kazakhstan Brusilovsky Str. 60 Petropavlovsk North Kazakhstan Kazakhstan ASTANA PHARM: Creditors Must File Claims by September 18 -------------------------------------------------------- Creditors of LLP Astana Pharm have until September 18, 2009, to submit proofs of claim to: Manas Str. 2 Room 106 Astana Kazakhstan The Specialized Inter-Regional Economic Court of Astana commenced bankruptcy proceedings against the company on June 1, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of Astana Abai Ave. 36 Astana Kazakhstan BATYS STROY: Creditors Must File Claims by September 18 ------------------------------------------------------- Creditors of LLP Batys Stroy Montage have until September 18, 2009, to submit proofs of claim to: Micro District Aeroport 9a Jylyoysky Kulsary Atyrau Kazakhstan The Specialized Inter-Regional Economic Court of Atyrau commenced bankruptcy proceedings against the company on July 7, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of Atyrau Satpaev Str. 3 Atyrau Atyrau Kazakhstan CAPITAL ASTYK: Creditors Must File Claims by September 18 --------------------------------------------------------- Creditors of LLP Capital Astyk have until September 18, 2009, to submit proofs of claim to: Manas Str. 2 Room 106 Astana Kazakhstan The Specialized Inter-Regional Economic Court of Astana commenced bankruptcy proceedings against the company on June 1, 2009 after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of Astana Abai Ave. 36 Astana Kazakhstan ELECTRIC COMPANY: Creditors Must File Claims by September 18 ------------------------------------------------------------ LLP Electric Company Service is currently undergoing liquidation. Creditors have until September 18, 2009, to submit proofs of claim to: Gagarin Str. 31/1 Uralsk West Kazakhstan Kazakhstan ENERGO TECH: Creditors Must File Claims by September 18 ------------------------------------------------------- LLP Energo Tech Snub-K is currently undergoing liquidation. Creditors have until September 18, 2009, to submit proofs of claim to: Abai Str. 5-1 Kentau South Kazakhstan Kazakhstan GLOBAL INFORM: Creditors Must File Claims by September 18 --------------------------------------------------------- Creditors of LLP Global Inform Systems have until September 18, 2009, to submit proofs of claim to: Zelenaya Str. 40 Baiserke Ilyisky Almaty Kazakhstan The Specialized Inter-Regional Economic Court of Almaty 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 Almaty Tauelsyzdyk Str. 53 Taldykorgan Almaty Kazakhstan GOR SVET: Creditors Must File Claims by September 18 ---------------------------------------------------- Creditors of LLP Gor Svet have until September 18, 2009, to submit proofs of claim to: Mashinostroileley Str. 6-63 Ust-Kamenogorsk East Kazakhstan Kazakhstan The Specialized Inter-Regional Economic Court of East Kazakhstan commenced bankruptcy proceedings against the company on June 23, 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 INTER TECH: Creditors Must File Claims by September 18 ------------------------------------------------------ LLP Inter Tech Snub Ltd. is currently undergoing liquidation. Creditors have until September 18, 2009, to submit proofs of claim to: Yarmak Str. 30 Shymkent South Kazakhstan Kazakhstan IRTYSH INTER: Creditors Must File Claims by September 18 -------------------------------------------------------- Creditors of LLP Irtysh Inter Service have until September 18, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of East Kazakhstan Bajov Str. 2 Ust-Kamenogorsk East Kazakhstan Kazakhstan The court commenced bankruptcy proceedings against the company on June 19, 2009. KARATAS STROY: Creditors Must File Claims by September 18 --------------------------------------------------------- Creditors of LLP Karatas Stroy have until September 18, 2009, to submit proofs of claim to: Ilyaev Str. 24 Shymkent South Kazakhstan Kazakhstan The Specialized Inter-Regional Economic Court of South Kazakhstan commenced bankruptcy proceedings against the company on June 12, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of South Kazakhstan Tynybaev Str. 42 Shymkent South Kazakhstan Kazakhstan KAZ ELECTRO: Creditors Must File Claims by September 18 ------------------------------------------------------- LLP Kaz Electro Therm is currently undergoing liquidation. Creditors have until September 18, 2009, to submit proofs of claim to: Suyunbai Ave. 89 Almaty Kazakhstan MABETEX MEGA: Creditors Must File Claims by September 18 -------------------------------------------------------- Creditors of LLP Mabetex Mega Elit Group have until September 18, 2009, to submit proofs of claim to: Zelenaya Str. 40 Baiserke Ilyisky Almaty Kazakhstan The Specialized Inter-Regional Economic Court of Almaty 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 Almaty Tauelsyzdyk Str. 53 Taldykorgan Almaty Kazakhstan SCART TRADE: Creditors Must File Claims by September 18 ------------------------------------------------------- Creditors of LLP Scart Trade have until September 18, 2009, to submit proofs of claim to: Altynsarin Str. 31 Aktobe Aktube Kazakhstan The Specialized Inter-Regional Economic Court of Aktube commenced bankruptcy proceedings against the company on June 23, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of Aktube Satpaev Str. 16 Aktobe Aktube Kazakhstan SEMEYSKAYA TEPLO: Creditors Must File Claims by September 18 ------------------------------------------------------------ Creditors of JSC Semeyskaya Teplo Energeticheskaya Companiya have until September 18, 2009, to submit proofs of claim to: Abai Str. 97 Semey East Kazakhstan Kazakhstan The Specialized Inter-Regional Economic Court of East Kazakhstan commenced bankruptcy proceedings against the company on June 19, 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 TAZA KURYLYS: Creditors Must File Claims by September 18 -------------------------------------------------------- Creditors of LLP Taza Kurylys 5 have until September 18, 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 July 8, 2009. TSK KAZ: Creditors Must File Claims by September 18 --------------------------------------------------- LLP Tsk Kaz Ros Stroy is currently undergoing liquidation. Creditors have until September 18, 2009, to submit proofs of claim to: Molodejnaya Str. 2A/1 Office 229 Micro District Kurylysshy Almaty Kazakhstan UG TRANS: Creditors Must File Claims by September 18 ---------------------------------------------------- Creditors of LLP Ug Trans Aktau have until September 18, 2009, to submit proofs of claim to: Building of Auto Station Room 11 Micro District 28 Aktau Mangistau Kazakhstan The Specialized Inter-Regional Economic Court of Mangistau commenced bankruptcy proceedings against the company on June 23, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of Mangistau Building of Former Kindergarten 51 Micro District 27 Aktau Mangistau Kazakhstan UNJU STROY: Creditors Must File Claims by September 18 ------------------------------------------------------ LLP Unju Stroy Invest is currently undergoing liquidation. Creditors have until September 18, 2009, to submit proofs of claim to: Kabanbai batyr Str. 15 Office 1 Almaty Kazakhstan URDJAR ASTYK: Creditors Must File Claims by September 18 -------------------------------------------------------- Creditors of LLP Urdjar Astyk have until September 18, 2009, to submit proofs of claim to: Mashinostroileley Str. 6-63 Ust-Kamenogorsk East Kazakhstan Kazakhstan The Specialized Inter-Regional Economic Court of East Kazakhstan commenced bankruptcy proceedings against the company on June 19, 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 ================== K Y R G Y Z S T AN ================== BAI CHENG: Creditors Must File Claims by September 30 ----------------------------------------------------- LLC Bai Cheng is currently undergoing liquidation. Creditors have until September 30, 2009, to submit proofs of claim to: Kulatov Str. 13-19 Bishkek Kyrgyzstan ================= L I T H U A N I A ================= UKIO AB: Moody's Withdraws B2/Not Prime Deposit Ratings ------------------------------------------------------- Moody's Investors Service has withdrawn these ratings of AB Ukio Bankas: its bank financial strength rating of E+ and its long-term and short-term local currency and foreign currency deposit ratings of B2/Not Prime. Moody's has withdrawn these ratings for business reasons following an official request from the bank. Moody's notes that, as of the date of the ratings withdrawal, Ukio Bankas had no outstanding debts rated by Moody's. Moody's previous rating action on Ukio Bankas was on April 16, 2009, when the rating agency downgraded the bank's ratings to B2/Not Prime/E+ from Ba3/Not Prime/D-. Headquartered in Kaunas, Lithuania, Ukio Bankas reported consolidated assets of LTL3.9 billion (EUR1.2 billion) at the end of 2008. =================== L U X E M B O U R G =================== BREEZE FINANCE: Moody's Cuts Rating on Class B Notes to 'B2' ------------------------------------------------------------ Moody's Investors Service has downgraded the ratings of two classes of bonds issued by Breeze Finance S.A. -- EUR287,000,000 4.524 percent Class A Guaranteed Secured Bonds due 2027 downgraded to Ba2 from Baa2 -- EUR84,000,000 6.708 percent Class B Guaranteed Secured Bonds due 2027 downgraded to B2 from Ba1 The downgrade is prompted by worse than expected wind flow in the winter months of 2008 - 2009 coupled with the poor technical performance of several wind farms. The combination of poor availability and low wind resulted in a decrease in energy production of approximately 20% from the same period last year. The poor technical performance detailed in the Turbine Generation Overview published in August 2009 is mainly attributed to a serial defect in 10 Nordex turbines that required replacement in late 2008. There are also concerns over the structural integrity of the foundations of 17 Vestas turbines. Whilst there is no damage to the foundations to date, there is an increased risk that over time this could manifest itself. Availability has recently improved although it has at times been well below the projected level of 97% and in many months closer to Moody's stressed level of 90%. These issues raise questions on the technical reliability of the projects in the portfolio. Wind flow was approximately 30% lower than expected in the winter months which left Breeze Finance in a highly constrained liquidity position at the start of the summer. Moody's notes that wind resource has improved recently with the figures for June and July showing wind index levels some 14% above expectations. However, overall wind resource levels for the year remain much lower than expected. If current conditions prevail it should not be necessary to draw on the Debt Service Reserve Account in order to pay the Class A Bonds in October. However, whilst it is unlikely that Class B Interest will be deferred, Moody's expects the Debt Service Reserve Account to be drawn in order to meet interest payments on the Class B Bonds. In Moody's view, the long term persistence of the 2009 wind conditions would not, in and of itself, result in losses to the Class A Bonds. However, under this scenario the transaction is highly sensitive to technical problems with the turbines and any significant deterioration in availability would impact the Class A Bonds. Moody's notes that the natural cycles in the wind regime and the relatively long-term nature of the transaction would imply that it is too early to conclude on the long-term average wind production based on one particular below average wind year. However, the Class A Bonds are exposed to annual vagaries of wind energy rather than the long term mean due to the non deferrable nature of the scheduled amounts due to the Class A investors. As a result, if there is a single extremely poor wind year, the Class A Bonds could experience an event of default. In contrast, the Class B Bonds are structured with deferrable payments and, as such, are exposed more to the long term wind resource level. This is reflected in the pure expected loss nature of the rating assigned to these bonds. Moody's last rating action on Breeze Finance S.A. was on 6 July 2009 when the Class A and Class B Bonds were put on review for possible downgrade. Moody's ratings address only the credit risks associated with the transaction, other non-credit risks have not been addressed, but may have significant effect on yield to investors. Moody's ratings are subject to revision, suspension or withdrawal at any time at Moody's absolute discretion. The ratings are expressions of opinion and not recommendations to purchase, sell or hold securities. The rating is published. Moody's will publicly disseminate any change in the ratings through normal print and electronic media, and in response to requests to the Moody's rating desk, in accordance with Moody's standard practice at the time. Issuer: Breeze Finance S.A. -- A, Downgraded to Ba2; previously on Jul 6, 2009 Baa2 Placed Under Review for Possible Downgrade -- B, Downgraded to B2; previously on Jul 6, 2009 Ba1 Placed Under Review for Possible Downgrade ===================== N E T H E R L A N D S ===================== LYONDELL CHEMICAL: Files Joint Chapter 11 Plan of Reorganization ---------------------------------------------------------------- Lyondell Chemical Company and its 93 debtor affiliates delivered to the United States Bankruptcy Court for the Southern District of New York their Joint Chapter 11 Plan of Reorganization and accompanying Disclosure Statement on September 11, 2009. Debtors' counsel, Deryck A. Palmer, Esq., at Cadwalader, Wickersham & Taft LLP, in New York, says that the Debtors' Plan rationalizes the Debtors' balance sheet and incorporates a restructuring that accomplishes two goals: (1) structuring the postpetition enterprise in a way to maximize tax, reporting, and systems efficiencies, and allow for tradable equity; and (2) limiting or eliminating the impact of guarantees issued by non-filing European entities and discharge obligations of European entities with respect to a certain "Bridge Loan Agreement" and "2015 Notes." The Bridge Loan Agreement, dated as of December 20, 2007, as amended and restated on April 30, 2008 and October 17, 2008, is among LyondellBasell Finance Company, the Obligor Debtors, the Obligor Non-Debtors, Merrill Lynch Capital Corporation, as administrative agent; Citibank, N.A., as collateral agent; Merrill Lynch, Pierce, Fenner & Smith Inc., Goldman Sachs Credit Partners, L.P., Citigroup Global Markets Inc., ABN AMRO Inc., and UBS Securities LLC, as joint lead arrangers, and the Bridge Lenders. The 2015 Notes, on the other hand, refers to the 8.375% senior notes due 2015 in the principal amounts of US$615 million and EURO500 million issued pursuant to the 2015 Notes Indenture. Mr. Palmer notes that the restructuring incorporated in the Plan, among others: (i) simplifies the overall corporate structure; (ii) simplifies financial and tax reporting; (iii) solves numerous tax basis/reporting/consolidation issues; (iv) matches business reporting with legal structure and applicable financial reporting systems; and (v) concentrates accounts receivable and inventory into fewer legal entities. To effectuate structuring of the postpetition enterprise, the Debtors may (i) cause any or all of the Debtors to be merged into one or more of the Debtors or dissolved; (ii) cause transfer the assets between or among the Debtors; or (iii) engage in any other transaction in furtherance of the Plan. Any of those transactions will be effective as of the Plan Effective Date without any further action by the stockholders of directors of the Debtors, or any other person, Mr. Palmer says. In addition, on or after the effective date of the Plan, and in the Reorganized Debtors' discretion, certain transactions to be listed in a schedule to be filed in a Plan Supplement will be effectuated to simplify the overall corporate structure of the Reorganized Debtors. LyondellBasell will have this simplified organizational structure following the Plan Effective Date: Creditors New Shareholders | | New Topco N.V. | --------------------------------- | | LyondellBasell LyondellBasell Finance Company Holdings B.V. | | | | LBFC LBIH and its Subsidiaries Subsidiaries (U.S. entities/ (non-U.S. entities/ operations) operations) The Plan provides that the Reorganized Debtors will continue to operate under a non-U.S. parent company and intend to organize their new parent company, New Topco, in The Netherlands. New Topco will be a public limited liability company (naamloze vennootschap) formed under the laws of The Netherlands. The initial members of the supervisory board of New Topco will be disclosed at or before the Confirmation Hearing. Each of the members of the initial board will serve in accordance with applicable Dutch law, the New Topco Supervisory Board charter, applicable corporate governance principles and the New Topco Articles of Association, as the same may be amended from time to time. As of the Plan Effective Date, the initial New Topco Manager will be newly incorporated LyondellBasell Holdings B.V., a wholly owned subsidiary of New Topco. LBHBV will have five directors, one of whom will be the Chief Executive Officer, one of whom will be the Chief Operating Officer/Chief Financial Officer and three of whom will be key employees who are Dutch residents. New Topco's Manager will be appointed by the shareholders of New Topco every four years for a four year term. The New Topco Articles of Association and the New Topco Supervisory Board charter will provide that New Topco will be represented by the New Topco Supervisory Board with respect to the appointment by New Topco as shareholder of LBHBV of the members of LBHBV's management board. According to Mr. Palmer, although the Debtors' Chapter 11 cases are jointly administered pursuant to an order of the Bankruptcy Court, the Debtors are not proposing the substantive consolidation of their estates. Thus, although the Plan generally applies to all of the Debtors, (i) the Plan constitutes 94 distinct Chapter 11 plans, one for each Debtor, (ii) for voting purposes, each holder of a Claim in a Class will vote its Claims in that Class by individual Debtors, and (iii) the claims classification scheme in the Plan applies to each Debtor. Moreover, the Debtors are submitting a Joint Plan covered by a single Disclosure Statement, to simplify drafting and avoid duplicative costs relating to distribution of multiple plans and disclosure statements, he says. Although the plans for the Debtors are substantially similar, there are variances in certain Classes and distributions depending on whether the applicable Debtor is: (i) an Obligor Debtor, (ii) a Obligor Debtor with unencumbered assets that may be available to its General Unsecured Creditors like Lyondell Chemical and Basell USA Inc., and (iii) a Non-Obligor Debtor, explains Mr. Palmer. An Obligor Debtors means those Debtors that are obligors, issuers, borrowers or guarantors under the Debtors' Senior Secured Credit Agreement, the Bridge Loan Agreement, and the 2015 Notes Indenture. Nov. 30 Confirmation Hearing The Debtors ask the Court to set November 30, 2009, as the hearing date to consider confirmation of the Plan. Objections to confirmation of the Plan must be filed with the Court and served so as to be actually received no later than November 23, 2009. Global Restructuring, Release of Bridge Guarantee Claims and 2015 Notes Guarantee Claims Mr. Palmer notes that certain Obligor Non-Debtors are obligated under the Bridge Loan Agreement and 2015 Notes Indenture. Pursuant to an Intercreditor Agreement, the debt under the Bridge Loan Agreement is secured by liens junior to those securing the debt under the Senior Secured Credit Agreement, and the 2015 Notes are contractually subordinated. To effectuate the bargained-for priorities among the Senior Secured Lenders, the Bridge Lenders and the 2015 Noteholders, the Plan provides for an "Enforcement Sale" against collateral pledged by the Obligor Non-Debtors, thereby releasing them of any liens and claims of the Bridge Lenders and claims of the 2015 Noteholders. The resulting distribution scheme under the Plan, therefore, takes into account the value of the 2015 Notes Claims and Bridge Claims against Non-Debtor Affiliates. Specifically, the Plan provides that on or prior to the Effective Date, these transactions will be effectuated in the order set forth: * New Topco is formed outside the existing corporate structure of LyondellBasell. New Topco may be formed prior to the Effective Date. * New Topco forms LBHBV, which may be formed prior to the Effective Date. * LyondellBasell Industries Holdings B.V., the direct parent of Basell Germany and certain non-U.S. Non-Debtor Affiliates, distributes its single share of LyondellBasell Industries AF S.C.A. to non-Debtor Basell Funding S.a.r.l. * The holders of Senior Secured Claims and Bridge Loan Claims will transfer their claims against the Obligor Non-Debtors and Basell Germany -- including guarantee claims, liens, rights and interests under the Senior Secured Credit Agreement and the Bridge Loan Agreement -- to New Topco in exchange for New Common Stock and any other consideration they are to receive under the Plan other than Subscription Rights. * New Topco will contribute the claims and security interests to LBHBV. * The security agent under the Intercreditor Agreement will sell the stock of LBIH -- subject to its senior secured debt -- to LBHBV for a nominal amount of cash, thereby releasing all guarantee claims and liens against Obligor Non-Debtors under the 2015 Notes Indenture and the Bridge Loan Agreement. Obligations of Obligor Debtors will be Discharged pursuant to the Plan. * Pursuant to the Plan, Debtor LyondellBasell Finance Company will cancel its existing stock and will issue new capital stock to New Topco. * LBFC may assign a portion of the LCC/LBFC Intercompany Note -- the intercompany note in the approximate amount of $7.2 billion owed by Lyondell Chemical to LBFC -- to New Topco in consideration for cash and a portion of the New Common Stock. New Topco will transfer the remaining New Common Stock to be issued on account of Claims against the U.S. Debtors to LBFC as a capital contribution. LBFC will contribute as capital the remainder of the LCC/LBFC Intercompany Note to Lyondell Chemical. All distributions of New Common Stock to holders of Claims against the U.S. Debtors will be made by LBFC or a subsidiary of LBFC, and the value of the New Common Stock will be equal to the net value of the U.S. Debtors. * Pursuant to the Plan, LBIAF and its general partner, LyondellBasell AF GP S.a.r.l., will be liquidated or dissolved. In addition, the North American Restructuring will occur. Rights Offering Pursuant to a rights offering sponsor agreement among New Topco, the Debtors and a Rights Offering Sponsor, New Topco has agreed to sell certain shares of its New Common Stock in a Rights Offering at a subscription purchase price of New Common Stock aggregating $3 billion. On the Effective Date, the Rights Offering Sponsor will purchase any unsubscribed shares at a price per share of New Common Stock. No Subscription Rights may be exercised for fractional shares of New Common Stock. The closing date of the Rights Offering will be the Effective Date of the Plan. On the Effective Date, the proceeds received by New Topco from the Rights Offering will be used to fund emergence and provide necessary post-emergence liquidity Listing of New Common Stock New Topco will use its reasonable efforts to cause the shares of New Common Stock to be listed on the New York Stock Exchange as soon as reasonably practicable after the Effective Date. New Topco will use its commercially reasonable efforts to file a Form 10 with the Securities and Exchange Commission and seek to have the Form 10 be declared effective by the Commission as soon as reasonably practicable after the Effective Date in order to enable the shares of New Common Stock to be listed on the New York Stock Exchange. Prior to the listing of the shares, the Debtors expect that the New Common Stock will be held in global form by a transfer agent in the form of one or more bearer global share certificates for the account of Cede & Company, the nominee of the Depository Trust Company. Subject to compliance with Dutch law and the rules of the Depository Trust Company, transfers of New Common Stock prior to listing may only be made by the transfer of a book entry position in the relevant global bearer share certificate. Securities to be Issued The New Notes will have (i) a present value equal to all accrued principal and interest due with respect to the DIP Roll-Up Loans as of the effective date of the Plan; (ii) maturity not exceeding the earlier of (a) the date that is five years from the Effective Date, and (b) the earliest maturity or redemption date applicable to any of the Senior Secured Credit Facility or Bridge Loan Facility or any securities or financial instruments that replace the Senior Secured Credit Facility; and (iii) affirmative and negative covenants and events of default as agreed upon by the parties and will enjoy guarantees and security as provided in the DIP Term Loan Agreement. The terms of the New Notes will be included in a Plan Supplement to be submitted by the Debtors. Moreover, pursuant to a New Topco Articles of Association in effect upon emergence, New Topco will be authorized to issue shares of New Common Stock and will not have any authorized shares of preferred stock. Upon consummation of the Plan, the shares of New Common Stock are expected to be outstanding. Each share of New Common Stock will have a nominal value of EUR0.04, will carry one vote in New Topco's general meeting of shareholders and will be entitled to dividends to the extent declared on a record date on or after the issue date of the New Common Stock. The issuance of the New Common Stock and New Notes, if any, by a member of the Reorganized LyondellBasell and the issuance or guarantee, as applicable, by all securities, notes, stock, instruments, certificates and other documents or agreements required to be issued, executed or delivered to the Plan, and any actions necessary, will be authorized without further action under applicable law and regulation. Upon the Effective Date, the authorized capital stock or other equity securities of New Topco and the Reorganized Debtors will be set forth in the Plan Supplement. Litigation Reserved Common Stock The Official Committee of Unsecured Creditors appointed in the Debtors' Chapter 11 Cases is currently prosecuting the Committee Litigation against, among others, the Senior Secured Lenders and the Bridge Lenders seeking, among other things, to avoid certain of their liens and subordinate or disallow certain of their Claims. If the Committee Litigation is successful in avoiding the liens securing the Senior Secured Claims and Bridge Loan Claims or in avoiding or equitably subordinating the claims, some or all of the holders of Allowed General Unsecured Claims of certain of the Debtors may be entitled to a distribution. Accordingly, to preserve value for these holders of Allowed General Unsecured Claims in the event that the Committee Litigation is successful, an amount of shares of New Common Stock as determined by the Bankruptcy Court will be authorized and issued on the Effective Date and held in reserve, pending resolution or settlement of the Phase I Trial and Phase IA Trial. To the extent the Committee Litigation is successful, the Litigation Reserved Common Stock will be distributed, as determined by the Bankruptcy Court, to some or all of the holders of Allowed General Unsecured Claims as if it had been distributed on the Effective Date. Any residual amount of the Litigation Reserved Common Stock not distributed to holders of Allowed General Unsecured Claims will be distributed to the Senior Secured Lenders. To the extent the Committee Litigation is not successful, the Litigation Reserved Common Stock will be distributed to the Senior Secured Lenders pursuant to the Plan as if it had been distributed on the Effective Date. Intercompany Claims No distribution will be made with respect to Intercompany Claims, which will be fully subordinated and cancelled, left in place or compromises as determined by Reorganized LyondellBasell. Exit Facility On or before the Effective Date, Reorganized LyondellBasell will enter into an Exit Facility, which will contain terms and conditions as contemplated by a commitment letter that will be included in the Plan Supplement and approved by the Bankruptcy Court. Injunction for Non-Debtor Affiliates The Plan contains and provides for an injunction for the benefit of the Non-Debtor Affiliates. On the Effective Date and except as otherwise provided, all holders of Senior Secured Claims, Bridge Loan Claims and 2015 Notes Claims who assert claims against Non-Debtor Affiliates based on the Senior Secured Claims, Bridge Loan Claims and 2015 Notes Claims or any guaranty thereof, and all holders of claims against Non-Debtor Affiliates for which Debtors also are obligated will be permanently enjoined from taking (i) any action with respect to claims or causes of actions released pursuant to the Plan, (ii) commencing, conducting or continuing in any manner, directly or indirectly, any suit, action or other proceeding of any kind against the Non-Debtor Affiliates, (iii) enforcing, levying, attaching, collecting or otherwise recovering by any manner or means, whether directly or indirectly, any judgment, award, decree or order against the Non- Debtor Affiliates and (iv) creating, perfecting or otherwise enforcing in any manner, directly or indirectly, any encumbrance against the Non-Debtor Affiliates. Closing of Chapter 11 Cases When all disputed claims against any Debtor have become Allowed or have been disallowed by final order, and no disputed matter remains outstanding, the Reorganized Debtors will seek the Bankruptcy Court's authority to close the applicable Debtor's Chapter 11 case. Early Payment The Plan will not prevent any of the Debtors or the Reorganized Debtors from making any payments prior to the date provided for in the Plan, and neither the Debtors nor the Reorganized Debtors will suffer any penalty from making those payments. Disbursement Trust On or before the Effective Date, a Disbursement Trust Agreement will be executed by the Schedule III Debtors and the Disbursement Trustee, and all other necessary steps will be taken to establish the Disbursement Trust and its beneficial interests, which will be for the benefit of the Disbursement Trust Beneficiaries, as provided in the Plan, whether their Claims are Allowed on or after the Effective Date. In the event of any conflict between the Plan and the terms of the Disbursement Trust Agreement, the terms of the Disbursement Trust Agreement will govern. A list of the Schedule III Debtors is available for free at: http://bankrupt.com/misc/LyondellSchedIIIDebtors.pdf Litigation Trust On or after the Effective Date, the Debtors or the Reorganized Debtors, as applicable, on their own behalf and on behalf of the holders of Allowed Class 7-A Claims, if any, will execute the Litigation Trust Agreement and will take all other steps necessary to establish the Litigation Trust in accordance with the Plan. The Debtors or the Reorganized Debtors and the Official Committee of Unsecured Creditors on behalf of holders of Allowed Class 7-A Claims will transfer to the Litigation Trust all of their right, title, and interest and the claims identified in the Case Management Order to be tried in the Phase I, Phase IA and Phase II Trials and their proceeds pursuant to an action commenced by the Creditors' Committee against the Debtors' secured lenders and directors. Moreover, the Plan Supplement will include a list of all causes of action being prosecuted that will be transferred to the Litigation Trust. Any recoveries on account of the causes of action transferred to the Litigation Trust will be distributed to holders of Allowed Class 7-A Claims in accordance with the Plan and the Litigation Trust Agreement. On the Confirmation Date, the Creditors' Committee will be dissolved and the Litigation Trustee will continue to prosecute any claims related to the Phase I, Phase IA and Phase II Trials. Equity Compensation Plan In addition, New Topco will adopt an Equity Compensation Plan, whereby New Topco will implement an equity-based program under which participants will receive either or some combination of restricted stock, restricted stock units, stock options, stock appreciation rights or other types of equity-based awards related to New Common Stock. The terms of the Equity Compensation Plan will be included in the Plan Supplement. Feasibility To determine whether the Plan satisfies the feasibility requirements of Section 1129(a)(11) of the Bankruptcy Code, the Debtors have analyzed their ability to meet their obligations under the Plan. As part of this analysis, the Debtors have prepared the projections. Based upon the Financial Projections, the Debtors believe that the Reorganized Debtors will be a viable operation following the Chapter 11 Cases thus, the Plan will meet the feasibility requirements of the Bankruptcy Code. A chart reflecting the Debtors' estimate of the future performance of the Reorganized Debtors and non-Debtors on an aggregate basis, for approximately the next five years, and the ten years thereafter may be accessed for free at: http://bankrupt.com/misc/Lyondell_PlanProjections.pdf Alternatives to Plan Confirmation If the Plan is not confirmed and consummated, the Debtors' alternatives include (i) liquidation of all of the Debtors under Chapter 7 of the Bankruptcy Code and (ii) the preparation and presentation of an alternative plan or plans of reorganization. The Debtors, or any other party in interest, may attempt to formulate an alternative chapter 11 plan, which might provide for the liquidation of the Debtors' remaining assets other than as provided by the Plan. However, any attempt to formulate an alternative chapter 11 plan would necessarily delay creditors' receipt of distributions and, due to the incurrence of additional administrative expenses during the period of delay, may provide for smaller distributions to holders of Allowed General Unsecured Claims and Equity Interests than are currently provided for under the Plan. Accordingly, the Debtors believe that the Plan will enable all creditors to realize the greatest possible recovery on their Claims or Equity Interests with the least delay. Conditions Precedent to Occurrence of the Plan Effective Date The conditions precedent to the occurrence Effective Date of the Plan are: (1) The Bankruptcy Court will have entered the Confirmation Order, which will approve the Plan on substantially the same terms and conditions set forth in the Plan; (2) The Plan approved by the Bankruptcy Court pursuant to the Confirmation Order will be in form and substance satisfactory to each of the Debtors; (3) No stay of the Confirmation Order will be in effect at the time the other conditions set forth in the Plan for are satisfied or waived; (4) All documents, Instruments and agreements provided for under, or necessary to implement, the Plan will have been executed and delivered by the parties thereto, in form and substance satisfactory to each of the Debtors, unless the execution or delivery has been waived by the parties benefited thereby and all documents, Instruments and agreements will be effective on the Effective Date; (5) All of the payments to be made by the Debtors by or on the Effective Date will have been made or will be made on the Effective Date; (6) The Debtors or the Reorganized Debtors, as applicable, will have entered into an Exit Facility providing for US$[____] of financing, and all conditions precedent to funding under the Exit Facility will have been satisfied or waived; (7) The Debtors will have raised US$[__] in cash (or not less than US$[__] in cash, in the event of a reduction in the size of the Rights Offering) pursuant to the Rights Offering net of any fees and expenses to be paid pursuant to the Rights Offering Sponsor Agreement; (8) The Debtors or the Reorganized Debtors, as applicable, will have obtained all governmental and other regulatory approvals or rulings that may be necessary for consummation of the Plan or that are required by law, regulation or order; and (9) The Debtors will have distributed the appropriate amount of New Common Stock to the Rights Offering Sponsors in accordance with the terms and conditions in the Rights Offering Sponsor Agreement, and will have paid the Rights Offering Fees and Expenses, in full in Cash, without the need for any of the Rights Offering Sponsors to file retention applications or fee applications with the Bankruptcy Court unless otherwise required by order of the Bankruptcy Court. Plan Supplement The Debtors will file with the Court their liquidation analysis, projected financial income and Plan Supplement on November 13, 2009, or 10 days prior to a November 23, 2009 deadline to vote to accept or reject the Plan. A full-text copy of the Debtors' Joint Plan is available for free at: http://bankrupt.com/misc/Lyondell_Sept11JointReorgPlan.pdf A full-text copy of the Debtors' Disclosure Statement is available for free at: http://bankrupt.com/misc/Lyondell_Sept11DisclosureStat.pdf About Lyondell Chemical LyondellBasell Industries is one of the world's largest polymers, petrochemicals and fuels companies. It is the global leader in polyolefins technology, production and marketing; a pioneer in propylene oxide and derivatives; and a significant producer of fuels and refined products, including biofuels. Through research and development, LyondellBasell develops innovative materials and technologies that deliver exceptional customer value and products that improve quality of life for people around the world. Headquartered in The Netherlands, LyondellBasell -- http://www.lyondellbasell.com/-- is privately owned by Access Industries. Basell AF and Lyondell Chemical Company merged operations in 2007 to form LyondellBasell Industries, the world's third largest independent chemical company. LyondellBasell became saddled with debt as part of the US$12.7 billion merger. On January 6, 2009, LyondellBasell Industries' U.S. operations and one of its European holding companies -- Basell Germany Holdings GmbH -- filed voluntary petitions to reorganize under Chapter 11 of the U.S. Bankruptcy Code to facilitate a restructuring of the company's debts. The case is In re Lyondell Chemical Company, et al., Bankr. S.D.N.Y. Lead Case No. 09-10023). Seventy-nine Lyondell entities, including Equistar Chemicals, LP, Lyondell Chemical Company, Millennium Chemicals Inc., and Wyatt Industries, Inc. filed for Chapter 11. In May 2009, one of the cases was dismissed -- Case No. 09-10068 -- because it is duplicative of Case No. 09- 10040 relating to Debtor Glidden Latin America Holdings. The Hon. Robert E. Gerber presides over the case. Deryck A. Palmer, Esq., at Cadwalader, Wickersham & Taft LLP, in New York, serves as the Debtors' bankruptcy counsel. Evercore Partners serves as financial advisors, and Alix Partners and its subsidiary AP Services LLC, serves as restructuring advisors. AlixPartners' Kevin M. McShea acts as the Debtors' Chief Restructuring Officer. Clifford Chance LLP serves as restructuring advisors to the European entities. Lyondell Chemical estimated that consolidated assets total US$27.12 billion and debts total US$19.34 billion as of the bankruptcy filing date. Lyondell has obtained approximately US$8 billion in DIP financing to fund continuing operations. The DIP financing includes two credit agreements: a US$6.5 billion term loan, which comprises a US$3.25 billion in new loans and a US$3.25 billion roll-up of existing loans; and a US$1.57 billion asset-backed lending facility. Luxembourg-based LyondellBasell Industries AF S.C.A. and another affiliate were voluntarily added to Lyondell Chemical's reorganization filing under Chapter 11 on April 24, 2009, in order to seek protection against claims by certain financial and U.S. trade creditors. On May 8, 2009, LyondellBasell Industries added 13 non-operating entities to Lyondell Chemical Company's reorganization filing under Chapter 11 of the U.S. Bankruptcy Code. All of the entities are U.S. companies and were added to the original Chapter 11 filing for administrative purposes. The filings will have no impact on current business or operations as none of the entities manufactures or sells products. Bankruptcy Creditors' Service, Inc., publishes Lyondell Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lyondell Chemical Company and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) =========== R U S S I A =========== UNITED COMPANY: Guinea Takes Over Friguia Alumina Refinery ---------------------------------------------------------- Alpha Camara and Carli Lourens at Bloomberg News report that Guinea took over United Co. Rusal's Friguia alumina refinery. According to Bloomberg, Momo Sacko, a Camara adviser, said Friday Guinea now owns all of the operation and may go "in search of a new partner". Bloomberg relates Russia�s Foreign Ministry said Guinea plans to expropriate the site and should consider "possible consequences" for their relationship. Citing Mines Minister Mahmoud Thiam, Bloomberg discloses the government sent Rusal a letter asking it to return the Friguia development. Bloomberg recalls Camara said in April he had asked the justice ministry to consider legal action over Rusal�s deal. According to Bloomberg, Mr. Thiam said Guinea was paid US$19 million for the assets by Rusal, while consultants had valued them at US$257 million. "Rusal purchased Friguia in full compliance with Guinean legislation and we consider the plant to be our legitimate property," Bloomberg quoted Rusal as saying in an e-mailed statement Friday. Debt Restructuring On Aug. 3, 2009, the Troubled Company Reporter-Europe, citing Bloomberg News, reported that Rusal agreed with representatives of foreign banks on "key terms" to extend repayments on US$7.4 billion of loans. Bloomberg disclosed Rusal said that a coordinating committee acting for more than 70 banks consented to the the company extending payments over seven years. Rusal, as cited by Bloomberg, said it expects to reach an accord with Russian lenders in coming months. The accord is subject to approval by each bank's credit committee. Rusal, with US$14 billion in bank debt, froze payments from March 11 to renegotiate terms after metal prices slumped and operations ceased to be profitable. The company's lenders include the Royal Bank of Scotland Group Plc., Deutsche Bank AG, Sumitomo Mitsui Financial Group Inc., Barclays Plc, BNP Paribas SA, Commerzbank AG and Natixis. About Rusal Headquartered in Moscow, Russia, United Co. RUSAL -- http://www.rusal.com/-- is among the world's top aluminum producers, along with Rio Tinto Alcan and Alcoa. Formed in 2000 from various parts of the old Soviet state apparatus, RUSAL produces about 4 million tons of aluminum, 11 million tons of alumina, and 6 million tons of bauxite. Its aluminum business include packaging and foil operations in addition to a network of smelters. Those Soviet spare parts were significantly augmented in 2007 when the company merged with fellow Russian aluminum producer Sual and Glencore's alumina unit. RUSAL is majority owned by Board member Oleg Deripaska, who had owned the company completely prior to the merger. ============================= S L O V A K R E P U B L I C ============================= VOLKSBANK SLOVENSKO: Fitch Cuts Individual Rating to 'D' -------------------------------------------------------- Fitch Ratings has affirmed Slovakia-based Volksbank Slovensko a.s.'s Long-term Issuer Default rating at 'BBB+', Short-term IDR at 'F2' and Support Rating at '2'. The agency has simultaneously downgraded Volksbank Slovensko's Individual Rating to 'D' from 'C/ D'. The Outlook on the Long-term IDR is Stable. The downgrade of Volksbank Slovensko's Individual Rating reflects a stronger deterioration in its performance than the market average in H109. A weakening of loan quality has become more visible amid the economic slowdown and its lagged impact on borrowers' creditworthiness. The seasoning of the loan book, which experienced strong growth until 2008, has contributed to this trend. This trend may be further amplified by loan concentration and exposures to the corporate and real estate sectors. Fitch expects Volksbank Slovensko's profitability to remain under pressure in the short- to medium-term due to an expected further increase in loan impairment charges. At the same time, the bank's Individual Rating takes into account its largely short term, but solid customer deposit funding base, and association with a larger financial group. Like other Slovak banks, Volksbank Slovensko has faced a decline in trading and fee income following Slovakia's adoption of the euro in January 2009 as well as a rise in loan impairment charges in H109. In addition, the decline in its net interest income has underlined the bank's relatively high sensitivity to declining interest rates. Fitch considers it positive that the bank did not pay out any dividends for the financial year 2008. Capitalization has therefore improved somewhat. While the Tier 1 Ratio of 11.6% at end-June 2009 was adequate, Fitch notes that the bank's absolute equity size makes it more vulnerable to unexpected large-scale credit events. Between end-2006 and end-2008, capitalization declined in line with strong loan growth in a benign domestic economic environment. This loan growth also underpinned the bank's solid financial performance in the period. Volksbank Slovensko's IDRs and Support rating are based on, in Fitch's view, a high probability of support, in case of need, from its ultimate majority shareholder, the central institution Oesterreichische Volksbanken Aktiengesellschaft, and the bank's strong integration into Volksbank International. VBAG is a member of Austria's Volksbank Verbund Group ('A'/ Stable). VBI is a management holding company for the combined banking operations of VBAG and other European cooperative banks in central and eastern Europe. VBAG owns 51% of VBI, which in turn owns 91% of Volksbank Slovensko. Volksbank Slovensko is the ninth-largest Slovak bank. It has a strong focus on domestic SMEs, project and mortgage financing. In Fitch's rating criteria, a bank's standalone risk is reflected in Fitch's Individual ratings and the prospect of external support is reflected in Fitch's Support ratings. Collectively these ratings drive Fitch's Long- and Short-term IDRs. ========= S P A I N ========= OBRASCON HUARTE: Moody's Downgrades Senior Bond Rating to 'Ba1' --------------------------------------------------------------- Moody's Investors Service has downgraded the senior unsecured rating and senior bond rating of Obrascon Huarte Lain to Ba1 from Baa3. In conjunction with this, Moody's will withdraw the issuer rating and assign Corporate Family and Probability of Default Ratings of Ba1. The outlook on the ratings is negative. At the same time, Moody's will assign a Loss Given Default assessment of LGD3. This rating action concludes Moody's review for possible downgrade initiated on March 17, 2009. The downgrade reflects Moody's view that OHL's business model and current financial profile is no longer commensurate with an investment-grade rating. In Moody's opinion, OHL's consolidated and recourse financial profiles have weakened over the past 12-18 months as a result of its execution of a business diversification strategy aimed at decreasing the importance of domestic construction in favor of international activity and a concessions business. In the process, OHL has deployed the debt capacity and financial flexibility from its recourse business in a rapidly growing, but still relatively unseasoned, concessions portfolio. Overall, the rating downgrade is underpinned by Moody's view that the underlying cash flow generation capacity of the recourse business has weakened and remains under stress in the current economic environment. Moody's believes OHL has exhausted flexibility under the Baa3 rating following its significant investments related to its growing concessions portfolio, which has resulted in a breach of the guidance metrics for the rating category. OHL needs to demonstrate that it can deliver sustainable positive free cash flow generation in the recourse business to enable de-leveraging before it can regain an investment-grade rating. However, Moody's also acknowledges that the company may take steps in the future to reduce the financial risk of the group and strengthen its profile, which could be considered as positive to the rating. Moody's is repositioning its guidance metrics for the rating category, as the rating agency recognises that OHL's business risk has increased. Furthermore, the success of the group's business model depends on continued profitable growth in its construction activity in the context of a more challenging market environment, which the company faces with a more constrained financial profile, a degree of project concentration in its international order book, limited visibility for working capital flows and a growing concessions portfolio that continues to require investment but which is not yet generating material cash returns for the parent company. Going forward, management is expected to execute operating measures that enable sufficient improvement under credit metrics to preserve or improve the rating positioning. The Ba1 CFR incorporates Moody's expectation that OHL will demonstrate its ability to slow the pace of investments and improve working capital management to restore recourse cash flow generation, coupled with good operating performance favourably impacting EBITDA and retained cash flow growth. This is to be seen in conjunction with management operating under more conservative metrics for the rating category, including maintaining Net Recourse Debt to Recourse EBITDA between 2x and 2.5x as of year- end and RCF to Net Recourse Debt exceeding 20% as of year-end. The rating also involves the expectation of a gradual return to positive free cash flow (free cash flow before working capital) for the recourse business on a sustainable basis. The negative outlook signals execution risk under management's measures to strengthen its credit metrics and liquidity profile, as well as management's need to manage within the constraints of the revised guidance metrics over time. The Ba1 rating could come under pressure if no such progress is visible because of deteriorating operating performance and/or investments, including a further fall-off in domestic construction activity or the contribution of international construction growing below expectations, adverse working capital movements or other unexpected cash calls draining recourse cash flows. The Ba1 rating could also come under pressure if there is no improvement in the liquidity profile, given OHL's reliance on revolving short- term bilateral bank facilities is an area of concern in the current capital markets environment, despite the company's good track record of renewals. Any measures that the company may undertake to strengthen its permanent financing structure could lead to positive pressure on the rating. The LGD assessment looks at the recourse business only and takes into account that, at this stage, from an economic standpoint, the group is functioning as an integrated entity and Moody's considers that there is a homogeneous senior unsecured capital structure with a parent company acting both as holding and operating company. However, Moody's notes the risk of rating migration (single- or multi-notch downgrade) for the senior unsecured bonds in the event that there is a material increase in secured debt, for example as a result of a renegotiation of the senior syndicated credit facility whether caused by a deterioration in OHL's profile or a covenant amendment. The last rating action was implemented on March 17, 2009, when OHL's ratings were placed on review for possible downgrade. Headquartered in Madrid, OHL is one of Spain's leading construction and concession operators with environmental, development and industrial activities. Domestic construction, which generated around 40% of turnover and 16% of EBITDA in the first six months of 2009, has declined in relative importance versus concessions (around 16% of turnover and 63% of EBITDA) and international construction (39% of turnover and 17% of EBITDA), in line with the Group's intended diversification strategy. In the last 12 months to June 30, 2009, OHL reported revenues of around EUR4.17 billion and EBITDA of around EUR650 million. ===================== S W I T Z E R L A N D ===================== DESCA TRANS AG: Claims Filing Deadline is October 5 --------------------------------------------------- Creditors of Desca Trans AG are requested to file their proofs of claim by October 5, 2009, to: Juerg Zimmermann Falkensteinerstrasse 11 4132 Muttenz Switzerland The company is currently undergoing liquidation in Muttenz. The decision about liquidation was accepted at a general meeting held on June 16, 2009. DU 25: Claims Filing Deadline is September 30 --------------------------------------------- Creditors of Du 25 GmbH are requested to file their proofs of claim by September 30, 2009, to: Brutschin Zogg Joset Henric Petri Str. 19 4051 Basel Switzerland The company is currently undergoing liquidation in Basel. The decision about liquidation was accepted at a general meeting held on June 23, 2009. RF COSMETICS: Claims Filing Deadline is September 30 ---------------------------------------------------- Creditors of RF Cosmetics AG are requested to file their proofs of claim by September 30, 2009, to: Filippo Beck Liquidator Goldbach-Center Seestrasse 39 8700 Kuesnacht Switzerland The company is currently undergoing liquidation in Weinfelden TG. The decision about liquidation was accepted at an extraordinary general meeting held on July 2, 2009. ZANIN TRANSPORTE: Claims Filing Deadline is September 30 -------------------------------------------------------- Creditors of Zanin Transporte GmbH are requested to file their proofs of claim by September 30, 2009, to: Zanin Sergio Liquidator Grubenweg 3a 3052 Zollikofen Switzerland The company is currently undergoing liquidation in Bern. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on December 10, 2007. =========================== U N I T E D K I N G D O M =========================== AVONCROP LIMITED: In Administration; Up for Sale ------------------------------------------------ Leonard Curtis, the corporate recovery, insolvency and restructuring specialist, is seeking offers for Avoncrop Limited, a leading UK producer, wholesaler and distributor of horticultural products. Paul Reeves, director at Leonard Curtis and an administrator of Avoncrop, is continuing to trade the business while seeking a buyer. Avoncrop entered administration because of a failed diversification into a related venture. The business has a turnover of 10m and employs 53 staff at three sites in Bracknell, Berks, Boston, Lincs and Sandford, north Somerset. Paul Reeves said: "Avoncrop has an experienced management team and a range of strong brand names that are highly regarded by a loyal customer base. "Potential buyers could be businesses in the same sector looking to expand, firms wishing to diversify into the sector, new entrants seeking a ready-made business or a management buy-in team." FEES COMPANY: In Administration; KPMG Appointed ----------------------------------------------- Blair Nimmo and Tony Friar of KPMG Restructuring were appointed as Joint Administrators of The Fees Company Limited on Sept. 8 2009, at the request of the Company's directors. The Fees Company specialized in providing payment plan funding options for schools and golf clubs. Acting as an intermediary between schools and parents, also for golf clubs and their members, the Company would typically fund the up front payment of fees due to schools and golf clubs whilst also collecting the relevant sums (together with a finance and administration charge) from parents and golf club members by direct debit over a series of months. The Company also operated as a BACS approved Bureau. The Company employed 5 people based at its leased premises at Currie, on the outskirts of Edinburgh. Due to the nature of the Companys business, it had a significant working capital funding requirement. Over recent months the Company has explored several opportunities to refinance the business, but these were not successful. In addition, a recently identified gap in the Companys balance sheet resulted in the directors concluding that the Company was insolvent and could not continue to trade. The Company is not therefore accepting any new business and the Administrators will take immediate steps to recoup and realise the Companys assets. Blair Nimmo, Joint Administrator and Head of Restructuring for KPMG in Scotland said: "We will work with the Schools, parents, golf clubs and members, to provide them with as much help and assistance as possible during this uncertain time. We would also encourage any parties having an interest in the Companys intellectual property to contact the Joint Administrators as soon as possible." Individuals and customers having agreements with the Company should contact the Companys head office for further information if required. Telephone number 0131 449 8840. GREAT LEIGHS: To Be Sold to Consortium -------------------------------------- The Joint Administrators to Great Leighs racecourse confirmed that an agreement has been reached for the sale of the business for an undisclosed sum. The sale, to a consortium of local businessmen led by Terry Chambers and Bill Gredley, is scheduled to complete on September 29 from which date the consortium will take possession of the site. The consortium is looking to establish facilities at the course prior to seeing racing return to the site from 2011, subject to the provision of a racing license. Carlton Siddle, partner at Deloitte, commented: "We are pleased that we have been able to agree this deal given the difficulties associated with the site. This agreement has been a long time in the making. We wish the buyers every success in completing the acquisition of the course, and subsequently securing the return of racing to this excellent all weather track." Carlton Siddle and Nick Edwards of Deloitte, the business advisory firm, were appointed as Joint Administrators to the group of companies that own and operate the Great Leighs all weather horse racing complex in Chelmsford, Essex, on January 16, 2009. LEHMAN BROTHERS: PwC Says Euro Unit Clients Have to Wait 2 Years ---------------------------------------------------------------- Tony Lomas, partner at PricewaterhouseCoopers and administrator for Lehman Brothers' European operations, told The Financial Times that it could now take two more years before clients and creditors get back billions of dollars of assets tied up in the bank when it collapsed a year ago. As reported by the TCR on Aug. 24, 2009, the U.K. High Court handed down a judgement denying PwC's request for approval of a scheme of arrangement that would have helped expedite the winding up of Lehman Brothers' European units. PwC proposed to divide more than 1,000 clients into three classes and deal with the claims by class rather than individually. PwC had previously said it could take up to a decade to return assets via bilateral agreements, instead of the proposed scheme. PwC is appealing the ruling. "I had hoped to break the back of this within 24 months, but with the setback around the scheme and other issues, a more realistic estimate is now 24-36 months," Mr. Lomas told the Financial Times. According to FT, Mr. Lomas, nonetheless, said he was happy with general progress on the case. The administrators have returned US$13 billion to a few dozen clients, including leading hedge funds and corporate clients such as Chinalco, the steel giant, whose 12 per cent stake in Rio Tinto was trapped inside Lehman when the bank collapsed. PwC, FT reports, has also realised US$9 billion in cash for creditors and taken control of another US$10 billion of assets. It is now preparing to lodge claims against other parts of the Lehman empire, including one of tens of billions against the US parent company. PwC has earned fees of GBP120 million on the case, and total fees paid to advisers of the European arm are running at roughly the same level as in the United States where fees have topped US$300 million (GBP180 million). About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHMAN BROTHERS: Firms Face FSA Action Over Structured Products --------------------------------------------------------------- Following the collapse of Lehman Brothers, the Financial Services Authority and Financial Ombudsman Service have been looking at the potential detriment this has caused for investors in the UK structured products market. In May, the FSA and Ombudsman agreed that the issues relating to Lehman-backed structured products should be considered under the "Wider Implications" process, in order to allow the FSA to explore all options to achieve the best outcome for consumers. The FSA has now gained enough information from its review to enable it to move forward and believes it is now appropriate to lift the hold on individual adjudications of complaints on an immediate basis. The FSA will report back on the outcomes of its review in more detail in October but confirms that it will be taking action against firms as a result of the findings of the review. Dan Waters, retail policy director at the FSA, said, "This is a hugely complex area and during our review we have looked at promotional literature, clarity of information, quality of advice, sales systems and controls, involving plan managers, providers and advisers. "There is still much for us to do and we will be outlining some of the findings of the review next month in more detail, but I can confirm that we have found serious issues and will be taking action against firms," he added. "In light of the progress we have made, we believe our regulatory action can now progress alongside the Ombudsman adjudicating on individual complaints without prejudicing either, so individual cases referred to the Ombudsman can now proceed." About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHMAN BROTHERS: PwC Appeals U.K. Court Denial of Proposed Scheme ----------------------------------------------------------------- Partners at PricewaterhouseCoopers serving as joint administrators of Lehman Brothers' European units have taken an appeal from the judgment handed down by the High Court in the United Kingdom indicating that the court does not have jurisdiction to sanction a proposed scheme of arrangement. As reported by the TCR on Aug. 24, 2009, the U.K. High Court denied PwC's request for approval of a scheme of arrangement that would have helped expedite the winding up of Lehman Brothers' European units. PwC proposed to divide more than 1,000 clients into three classes and deal with the claims by class rather than individually. PwC had previously said it could take up to a decade to return assets via bilateral agreements, instead of the proposed scheme. After consulting advisers and representatives of the creditor's working group regarding the intention to appeal the High Court judgment, the Joint Administrators concluded that it is appropriate to appeal given the very significant advantages of a scheme of arrangement when compared with the potential alternatives, notwithstanding the complex nature of the legal arguments and that the outcome of the appeal is uncertain. Accordingly, the Joint Administrators filed an appeal application on September 10, 2009, with the Court of Appeal in U.K. GLG Partners LP, as representatives of the creditor's working group, confirmed they intend to submit written submissions in support of the appeal and the London Investment Banking Association has confirmed that it will appear as respondent. A public hearing of the appeal will be held in due course. The Administrators said they are anxious that the appeal process should not lead to any unnecessary delay in the process of returning client assets. Therefore, in parallel with the appeal process, they continue to make bilateral returns and to assess possible alternative mechanisms by which they might affect the return of client assets if the appeal is ultimately unsuccessful. At the same time, in an effort to ensure that the appeal process itself is progressed with as little delay as possible, they have (with GLG) written to the Court of Appeal requesting that the appeal be heard on an expedited basis. LIBA has also written to the Court in support of this request. If the Court of Appeal agrees to hear the appeal on an expedited basis, it is hoped that the appeal would be heard in October or November. This is, however, subject to the court's availability. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition listed $639 billion in assets and $613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) MG ROVER: UK Gov't. Seeks to Disqualify Former Owners ----------------------------------------------------- Robert Hutton at Bloomberg News reports that Business Secretary Peter Mandelson is seeking to ban investors involved in the collapse of MG Rover Group Ltd. from running other companies. According to Bloomberg, an 800-page government-commissioned report into the demise of MG Rover, which went bankrupt owing GBP1.3 billion (US$2.1 billion) weeks before the 2005 general election, says Peter Beale, John Edwards, Nick Stephenson, John Towers and Kevin Howe extracted a combined GBP42 million in pay and benefits over five years. The report was compiled over four years by outside lawyers, Guy Newey of Maitland Chambers and Gervase MacGregor of BDO Stoy Hayward. Bloomberg relates Mr. Mandelson said in a British Broadcasting Corp. interview Friday that, the government is preparing to start proceedings to disqualify the former owners. Deloitte Jonathan Guthrie at The Financial Times reports Deloitte, the auditor and tax adviser to MG Rover, the 850-page-report revealed charged fees to MG Rover of GBP30.7 million over five years. The FT says some of the advice concerned ways in which the so-called "Phoenix Four" directors led by Mr. Towers could extract "excessive" rewards from the business, which they bought for just GBP10 from BMW in 2000. The FT notes the inspectors, however, found "no evidence" that the high level of non-audit fees compromised the independence and objectivity of Deloitte as auditor. The inspectors, the FT discloses, concluded that Deloitte acted properly in qualifying MG Rover as a going concern at the end of 2004, just a few months before the collapse of the company with 6,000 job losses. On Aug. 14, 2009, the Troubled Company Reporter-Europe, citing Bloomberg News, reported the U.K. Serious Office decided not to start a criminal investigation into the collapse of MG Rover after reviewing a report provided by the office of Business Secretary Peter Mandelson in July. About MG Rover Headquartered in Birmingham, United Kingdom, MG Rover Group Limited -- http://www1.mg-rover.com/-- produced automobiles under the Rover and MG brands, together with engine maker Powertrain Ltd. Previously owned by Phoenix Venture Holdings, the company faced huge losses in recent years, reaching GBP64.1 million in 2004, which were blamed on reduced sales. MG Rover collapsed on April 8, 2005, after a tie-up with China's largest carmaker, Shanghai Automotive Industry Corp., failed to materialize. Ian Powell, Tony Lomas and Rob Hunt, partners in PricewaterhouseCoopers, were appointed as joint administrators. The crisis left 6,000 people jobless, and caused a domino effect on related businesses, particularly in the West Midlands. Days later, eight European subsidiaries -- MG Rover Deutschland GmbH; MG Rover Nederland B.V.; MG. Rover Belux S.A./N.V.; MG Rover Espana S.A.; MG Rover Italia S.p.A.; MG Rover Portugal- Veiculos e Pecas LDA; Rover France S.A.S., and Rover Ireland Limited -- were placed into administration. MOORGATE TAVERNS: Seeks to Go Into Administration ------------------------------------------------- The Directors of Pubs 'n' Bars, the community public house owner and operator announced that following discussions with Clydesdale Bank PLC, who hold a charge over the property assets of Moorgate Taverns Limited, the directors have applied to the courts for the appointment of administrators to Moorgate, a wholly owned subsidiary of PnB with immediate effect. Moorgate has an estate of ten freehold public houses within Hertfordshire, Oxfordshire and the South coast. Nine of these public houses were tenanted to individual operators and had tied contracts for beer supply and one pub was managed. As a result of the general economic environment, Moorgate has been trading at a loss after finance costs and, due to the downturn in pub values, has breached certain of its borrowing covenants with Clydesdale. There are no guarantees from PnB to Clydesdale in respect of Moorgate's borrowings and the net effect on cashflow will be an interest saving of approximately GBP150,000 per annum by PnB. The book value of the pubs as at December 31, 2008 was GBP8.03 million and the debt is GBP7.08 million. As a result of this, the Group now operates 94 pubs. PLASTIC ENGINEERING: Enters Into Administration ----------------------------------------------- Plastic Engineering (Leamington) Limited is a Warwickshire-based based company which specializes in precision injection molding of thermoplastics, predominately for the automobile and pharmaceutical industries. It entered into administration on September 2, 2009 with Geoff Rowley and Gerald Smith, Client Partners of Vantis Business Recovery Services, a division of Vantis, the UK accounting, tax and business advisory group, appointed as Joint Administrators. The company entered into administration following a loss of trade as a result of the declining UK automotive market. It is continuing to trade and, since the appointment, the administrators have spoken to a number of key customers and suppliers who have all been supportive. They are optimistic that a buyer can be found for the business and assets as a going concern. Commenting on the case, Geoff Rowley said: "We are doing all that we can to achieve a sale. Regrettably, of the 140 staff, we have had to make 40 redundancies to trade the business at a level where future losses are minimised. We are working with those affected to ensure all their claims are processed on a timely basis." TIGGI'S HOLDINGS: In Administration; KPMG Appointed --------------------------------------------------- Paul Dumbell and Brian Green from KPMG Restructuring in Manchester have been appointed Joint Administrators to Tiggi's Holdings Limited, Tiggi's (St Annes) Limited and Tiggi's (Bolton) Limited. The companies operate the "Tiggi's" branded Italian restaurants in St Annes and Bolton, along with the "21T" bar and restaurant and the "Bliss" night club in St Annes. Tiggi's Holdings Limited is a non-trading parent company. A total of 79 people are employed across the three businesses. There have been no redundancies. Paul Dumbell, joint administrator and director at KPMG Restructuring, commented, "It's no secret that the recession has eaten away at the UK hospitality sector, with many restaurants having to contend both with a reduction in corporate entertaining and a squeeze on consumer disposable income. For Tiggi's in particular, the economic downturn resulted in a fall in customer numbers and also lower spend per head." Mr. Dumbell continued, "We will continue to trade all of the establishments under license of the management while we seek a buyer for the business and assets." VISTEON CORP: G. Adams Demands Probe on U.K. Practices ------------------------------------------------------ Sinn Fein President Gerry Adams has called for an investigation of Visteon after workers were left to fend for themselves when Visteon UK terminated operations in its factories in Christopher Martin Road, Basildon, Enfield and Belfast in March 2009, according to Enfield Independent. The Belfast factory is under Mr. Adams's Northern Ireland constituency. Sinn Fein is an Irish political movement founded in 1905 to promote independence from England and unification of Ireland. Enfield Independent reported that Mr. Adams criticized both Visteon and Ford Motor Company after he obtained paperwork showing how the company's pension fund was being run. According to the report, Mr. Adams said in a Northern Ireland Assembly in May 2009, "The behavior of the board of Visteon UK and Ford Motor Company and the treatment of the workers here and in Britain, has been shameful. Indeed, I believe that aspects of that behavior amount to fraud, corruption and sharp practice. . . . We must seek to ensure that the relevant Government and statutory agencies, including the Pensions Regulator, carry out the necessary rigorous assessments and investigations into the conduct of those companies." Enfield Independent added that the Pensions Regulator issued a statement saying: "We are very aware of this situation but cannot provide comment on individual cases. As with any investigation, we will consider any evidence presented to us and act in a manner which aims to protect member benefits." UNITE Union called for a meeting with Ford's management last September 9, 2009, Hannah Crown of Enfield Independent related. The Union also supports an investigation into Visteon and Ford. Ford, however, insisted that it is independent of Visteon, Enfield Independent noted. Instead, Ford released a statement saying: "The situation for former Visteon UK employees is unfortunate but the responsibility for administering and funding their terms and conditions was Visteon's. This included managing its pension fund, which was 100 per cent funded at the time of transfer. Ford has taken a number of actions to support Visteon and to assist Visteon in its efforts to achieve long term viability. These included enabling 560 Visteon employees to return to Ford and providing Visteon with ongoing and new Ford business." About Visteon Corp. Headquartered in Van Buren Township, Michigan, Visteon Corporation (NYSE: VC) -- http://www.visteon.com/-- is a global automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic and lighting products for vehicle manufacturers, and also provides a range of products and services to aftermarket customers. The company has corporate offices in Van Buren Township, Michigan (U.S.); Shanghai, China; and Kerpen, Germany. It has facilities in 27 countries and employs roughly 35,500 people. The Company has assets of US$4,561,000,000 and debts of US$5,311,000,000 as of March 31, 2009. Visteon Corporation and 30 of its affiliates filed for Chapter 11 protection on May 28, 2009, (Bank. D. Del. Case No. 09-11786 through 09-11818). Judge Christopher S. Sontchi oversees the Chapter 11 cases. James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., and James J. Mazza, Jr., Esq., at Kirkland & Ellis LLP, in Chicago, Illinois, represent the Debtors in their restructuring efforts. Laura Davis Jones, Esq., James E. O'Neill, Esq., Timothy P. Cairns, Esq., and Mark M. Billion, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware, serve as the Debtors' local counsel. The Debtors' investment banker and financial advisor is Rothschild Inc. The Debtors' notice, claims, and solicitation agent is Kurtzman Carson Consultants LLC. The Debtors' restructuring advisor is Alvarez & Marsal North America, LLC. Bankruptcy Creditors' Service, Inc., publishes Visteon Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Visteon Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/ or 215/945-7000) WHITE TOWER: Fitch Puts 'CCC'-Rated Class E Notes on Watch Neg. --------------------------------------------------------------- Fitch Ratings has placed all of White Tower 2006-3 plc's note classes, due 2012, on Rating Watch Negative: -- GBP673.6 million class A (XS0275770914): 'AA'; placed on RWN -- GBP171.5 million class B (XS0275771649): 'BBB'; placed on RWN -- GBP116 million class C (XS0275772704): 'BB'; placed on RWN -- GBP116 million class D (XS0275773181): 'B'; placed on RWN -- GBP68 million class E (XS0275774072): 'CCC'; placed on RWN The rating actions are driven by recent developments surrounding the securitised loan and its borrowers. In a 7 September 2009 statement issued by CB Richard Ellis Loan Servicing Limited (rated 'CSS3+'), acting as special servicer, it was noted that Her Majesty's Revenue and Customs had served notices revoking the borrowers' exemption from the Non Resident Landlords Scheme in respect of six properties accounting for 59% of the total market value of the portfolio. As a result, withholding tax will be incurred on the gross rents generated by the relevant properties, instead of net income, as was previously the case, which is likely to adversely impact the level of resources available for the payment of interest and repayment of principal on the notes. A subsequent statement issued by CBRELS on September 9, 2009 said that HMRC had also presented winding up petitions in respect of seven companies, which affect the same six properties. The petitions relate to unpaid tax liabilities accounting for GBP4.8 million, plus interest and other costs incurred by HMRC. Court hearings relating to HMRC's petitions are scheduled for 21 and 28 October 2009. At the moment there is no clarity regarding the likely actions that will be taken by the affected companies, HMRC or the special servicer. The RWN reflects this uncertainty, and will be resolved once more information has been received on the likely outcome of these developments. WINDSAVE LTD: Goes Into Liquidation ----------------------------------- Terry Murden at The Scotsman reports that Windsave Ltd. has gone into liquidation. The company, the report discloses, has blamed government resistance to relaxing planning rules for forcing its household windmill operation out of business. According to the report, the company is now being wound up by the liquidator at Martin Aitken & Co at the request of the Revenue and Customs over an unpaid GBP130,000 bill. Windsave Holdings, which accounts for 80% of the business, is continuing to trade normally, the report notes. It is involved in contracts with commercial and local authority clients in the UK and overseas. * 46,900 UK Companies Have Collapsed Since Run on Northern Rock --------------------------------------------------------------- Approximately 46,900 UK companies have gone bust between this week (September 11) and the run on Northern Rock on September 14, 2007, UHY Hacker Young, the national accountancy group. UHY Hacker Young also estimates that since Lehman Brothers collapsed on September 16, 2008 28,600 UK companies have gone bust. After the run on Northern Rock companies started to go bust at the rate of 50 per day but after the failure of Lehman Brothers this accelerated to 79 a day. Mark Waterman, Partner at UHY Hacker Young, commented: "Northern Rock was a real blow to the UK economy but Lehman Brothers knocked the whole financial system for six. "The damage to the property and retail sector was predictable but what came as a big shock was how heavily funding problems impacted the manufacturing and hi-tech sectors. "With the exception of companies servicing the public sector practically no significant part of the UK economy has remained unscathed. Unfortunately many hi-tech companies that would have played an important role in the long time competitiveness of the UK economy have been sunk." 5,447 manufacturing companies have become insolvent since Northern Rock (3,370 since Lehman Bros collapsed). 1,287 IT companies have gone bankrupt since Northern Rock not including 62 specialist R&D companies. =============== X X X X X X X X =============== * Konstantin Konstantinov Rejoins Chadbourne & Parke in Moscow -------------------------------------------------------------- Chadbourne & Parke LLP said Konstantin Konstantinov has rejoined Chadbourne's practice in the Russian Federation as a partner in its Moscow office. Mr. Konstantinov had practiced with Chadbourne for over 11 years. For a short period of time he worked at Dechert LLP which established a presence in Russia recently. He has now returned to Chadbourne. Mr. Konstantinov, a Harvard educated Russian advocate, is admitted to practice in both New York and Russia. He advises clients on international commercial and financial matters, including project finance, securities regulation, secured finance, debt restructuring and mergers and acquisitions. "We are very pleased to welcome back Konstantin as the sixth resident partner in our Moscow office," said Chadbourne Managing Partner Charles K. O'Neill. "Our lawyers and our clients know him as an outstanding transactional lawyer and an extremely valued colleague and advisor." Chadbourne's Moscow office was established in 1990 and has been recognized as one of the leading law offices in Russia, most recently by Acquisition Finance Magazine and International Law Office. The firm's St. Petersburg office opened in 2005. Each of the partners in Moscow and St. Petersburg has more than a decade of experience advising clients on Russian transactions. Chadbourne's Moscow office is a full service practice, providing Russian, English and U.S. legal advice to clients on a wide range of matters, including corporate, finance and litigation. It is supported by over 400 lawyers in 11 other Chadbourne offices, including Kyiv, Almaty and Warsaw. "As it has been for almost 20 years, Chadbourne & Parke continues to be committed to Russia and to our CIS practice," said Moscow Senior Partner Mikhail Rozenberg. Added Jennifer Handz, Moscow Managing Partner, "I echo the sentiments expressed by Charlie O'Neill in New York and Mikhail Rozenberg here in Moscow. We intend to take full advantage of Konstantin's prominent reputation as a leading international practitioner, and we are delighted to have him back." About Chadbourne & Parke Chadbourne & Parke LLP -- http://www.chadbourne.com/-- an international law firm headquartered in New York City, provides a full range of legal services, including mergers and acquisitions, securities, project finance, private funds, corporate finance, energy, communications and technology, commercial and products liability litigation, securities litigation and regulatory enforcement, special investigations and litigation, intellectual property, antitrust, domestic and international tax, insurance and reinsurance, environmental, real estate, bankruptcy and financial restructuring, employment law and ERISA, trusts and estates and government contract matters. Major geographical areas of concentration include Central and Eastern Europe, Russia, the Middle East and Latin America. The Firm has offices in New York, Washington, DC, Los Angeles, London (an affiliated partnership), Moscow, St. Petersburg, Warsaw (a Polish partnership), Kyiv, Almaty, Dubai and Beijing. ********* 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 * * *