/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/091016.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Friday, October 16, 2009, Vol. 10, No. 205 Headlines A U S T R I A B.C.L. LOGIC: Claims Filing Deadline is October 28 INDIGO COMMUNICATION: Claims Filing Deadline is October 28 MARCELLO GMBH: Claims Filing Deadline is October 27 SEIBOLD GMBH: Claims Filing Deadline is October 27 SMR BREITENFURTERSTRASSE: Claims Filing Deadline is October 27 TOYS SPIELWAREN: Claims Filing Deadline is October 28 A Z E R B A I J A N STATE OIL: Fitch Assigns 'BB+' Issuer Default Rating F R A N C E FCI INTERNATIONAL: Moody's Affirms Corporate Family Rating at 'B2' WHITE TOWER: Fitch Junks Rating on EUR15.1MM Class E Notes G E R M A N Y ARCANDOR AG: Four Bidders Still in the Race to Acquire Quelle DECO 9: Fitch Junks Ratings on Four Classes of Notes DECO 10: Fitch Junks Rating on EUR19MM Class D Notes From 'BBB' GENERAL MOTORS: Magna, Sberbank Near Opel Acquisition Deal TALISMAN-7 FINANCE: Fitch Corrects October 12 Press Release TAURUS CMBS: Fitch Downgrades Rating on Class D Notes to 'B' G R E E C E WIND HELLAS: To Defer Payment on Subordinated Bonds I R E L A N D BABCOCK NETWORKS: Ken Fennell Named Provisional Liquidator ZOE GROUP: Supreme Court Orders Liquidation of Companies I T A L Y CORDUSIO RMBS: Moody's Reviews 'Ba2' Rating on Class E Notes DIT GROUP: To Close Italian Subsidiary RISANAMENTO SPA: Awaits Bankruptcy Case Ruling, Chairman Says K A Z A K H S T A N BALHASH 5: Creditors Must File Claims by October 21 KAZAKHTELECOM JSC: Fitch Affirms Issuer Default Ratings at 'BB' MAI STROY: Creditors Must File Claims by October 21 NORTH SOUTH: Creditors Must File Claims by October 21 ONTUSTIK OIL: Creditors Must File Claims by October 21 POLIGRAPH IZDAT: Creditors Must File Claims by October 21 SHART-AK LLP: Creditors Must File Claims by October 21 SABYR 77: Creditors Must File Claims by October 21 SOLITON ETT: Creditors Must File Claims by October 21 TECH SERVICE: Creditors Must File Claims by October 21 VOSTOK MUNAI: Creditors Must File Claims by October 21 K Y R G Y Z S T A N MAKSAT OJSC: Court Names S. Jantashov as Insolvency Manager STENDLI COMPANY: Court Names T. Boronchiev as Insolvency Manager N E T H E R L A N D S DSB BANK: Talks with Banks to Avert Bankruptcy Fail ING GROEP: Oversea-Chinese Bank to Buy ING's Asia Private Bank LYONDELL CHEMICAL: Gets Nod to Tap Miller & Chevalier as Counsel LYONDELL CHEMICAL: Proposes Entry Into Enterprise Products Pact LYONDELL CHEMICAL: Proposes Pact with Gainesville-Oakwood R U S S I A AVTOVAZ OAO: On the Verge of Bankruptcy Despite State Aid DIOGANAL-STROY LLC: Creditors Must File Claims by October 25 ELEKTRIK LLC: Creditors Must File Claims by October 25 EVRAZ GROUP: S&P Assigns 'B+' Senior Unsecured Debt Rating MOBILE TELESYSTEMS: Moody's Confirms 'Ba2' Corporate Family Rating RESHOTINSKYA CHEMICAL: Creditors Must File Claims by October 25 SAFONOVSKIY ELECTRO: Creditors Must File Claims by October 25 SERPUKHOVSKIY MECHANICAL: Creditors Must File Claims by October 25 SITI-STROY LLC: Creditors Must File Claims by October 25 SOUTH STEEL: Creditors Must File Claims by October 25 TRUBOSTAL OJSC: Creditors Must File Claims by October 25 VIMPEL-COMMUNICATION: Moody's Changes Outlook on 'Ba2' Rating S W I T Z E R L A N D ATIMON AG: Claims Filing Deadline is October 21 AVIVA-NET: Claims Filing Deadline is October 19 BRUNO A. MOCK: Claims Filing Deadline is October 19 CONFLOR AG: Claims Filing Deadline is October 21 COMLUX GMBH: Claims Filing Deadline is October 21 CORE BUSINESS: Claims Filing Deadline is October 21 DOOFO HOLDING: Claims Filing Deadline is October 21 EASYDIALOG GMBH: Claims Filing Deadline is October 21 MED-ART GMBH: Claims Filing Deadline is October 21 NIWITA TREUHAND: Claims Filing Deadline is October 19 PROMOTECH INTERLAKEN: Claims Filing Deadline is October 21 REAL BETEILIGUNGS: Claims Filing Deadline is October 21 SNACK BECK: Claims Filing Deadline is October 19 U K R A I N E BUDIMPEKSSERVICE LLC: Creditors Must File Claims by October 21 ECONIKBUILD SOUTH: Creditors Must File Claims by October 21 INVESTCITY-LTD LLC: Creditors Must File Claims by October 21 KMP LLC: Creditors Must File Claims by October 21 MINERAL-AGRO LLC: Creditors Must File Claims by October 21 NAFALAN AND CO: Creditors Must File Claims by October 21 OPTIMAKS UKRAINE: Creditors Must File Claims by October 21 VIKMON LLC: Creditors Must File Claims by October 21 VO METALRESOURCE: Creditors Must File Claims by October 21 * UKRAINE: Fitch Affirms Issuer Default Ratings at 'B' U N I T E D K I N G D O M BAA: Group Wide Traffic Down 2.6% in September 2009 BRITISH AIRWAYS: September 2009 Traffic Down 0.8% DEFINED RETURNS: Enters Administration on Lehman-Related Claims FREEDOM SIPP: Court Orders Liquidation Over Non-Payment of Taxes JOOST TECHNOLOGIES: U.K. Arm Put Into Liquidation NATIONAL EXPRESS: Consortium Set to Withdraw Takeover Offer NDF ADMINISTRATION: Enters Administration on Lehman-Related Claims X X X X X X X X * BOOK REVIEW: Corporate Financial Distress and Bankruptcy - ********* ============= A U S T R I A ============= B.C.L. LOGIC: Claims Filing Deadline is October 28 -------------------------------------------------- Creditors of B.C.L. Logic GmbH have until October 28, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for November 11, 2009 at 9:50 a.m. For further information, contact the company's administrator: Dr. Edmund Roehlich Am Heumarkt 9/I/11 1030 Vienna Austria Tel: 713 46 51 Fax: 713 84 35 E-mail: proksch@eurojuris.at INDIGO COMMUNICATION: Claims Filing Deadline is October 28 ---------------------------------------------------------- Creditors of Indigo communication services GmbH have until October 28, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for November 11, 2009 at 9:30 a.m. For further information, contact the company's administrator: Dr. Martina Simlinger-Haas Reisnerstrasse 31 1030 Vienna Austria Tel: 713 99 46 Fax: 713 99 46 22 E-mail: ra.reisnerstr31@aon.at MARCELLO GMBH: Claims Filing Deadline is October 27 --------------------------------------------------- Creditors Marcello GmbH have until October 27, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for November 10, 2009 at 13:15 p.m. For further information, contact the company's administrator: Dr. Johannes Leon Reichsratsstrasse 5 1010 Vienna Austria Tel: 402 15 54 0 Fax: 402 15 54 54 E-mail: office@leonlaw.at SEIBOLD GMBH: Claims Filing Deadline is October 27 -------------------------------------------------- Creditors Seibold GmbH have until October 27, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for November 10, 2009 at 12:30 p.m. For further information, contact the company's administrator: Mag. Dr. Philipp Dobner Mariahilfer Strasse 50 1070 Vienna Austria Tel: 523 62 00 Fax: 526 72 74 E-mail: dobner@sup.at SMR BREITENFURTERSTRASSE: Claims Filing Deadline is October 27 -------------------------------------------------------------- Creditors SMR Breitenfurterstrasse 170 GmbH have until October 27, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for November 10, 2009 at 12:45 p.m. For further information, contact the company's administrator: Dr. Karl Schirl Krugerstrasse 17/3 1010 Vienna Austria Tel: 513 22 31 Fax: 513 22 31 1 E-mail: dr.karl.schirl@der-rechtsanwalt.at TOYS SPIELWAREN: Claims Filing Deadline is October 28 ----------------------------------------------------- Creditors of Toys Spielwaren Diskont GmbH have until October 28, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for November 10, 2009 at 10:45 a.m. For further information, contact the company's administrator: Mag. Andrea Eisner Weyrgasse 8/7 1030 Vienna Austria Tel: 712 04 77 Fax: 712 04 77 - 12 E-mail: office@ra-eisner.at =================== A Z E R B A I J A N =================== STATE OIL: Fitch Assigns 'BB+' Issuer Default Rating ---------------------------------------------------- Fitch Ratings has assigned State Oil Company of the Azerbaijan Republic a Long-term Issuer Default rating of 'BB+' and a Short- term IDR of 'B'. The Outlook for the Long-term IDR is Stable. As SOCAR is a 100% government-owned entity representing the state's interests in the oil and gas industry, which is vital to the country's economy (hydrocarbons account for 60% of Azerbaijan's GDP), and the largest taxpayer in the country, Fitch considers the legal, operational and strategic ties between the state and the company to be strong. The agency has therefore aligned SOCAR's ratings with those of Azerbaijan ('BB+'/Stable), based on Fitch's Parent and Subsidiary Rating Linkage methodology. The ratings also reflect SOCAR's diversified business profile with sales geared towards the regulated domestic market, which render the company less vulnerable to volatile international oil and gas prices. In addition, the ratings take into account the company's small scale compared with its Russian oil and gas peers. As its core fields are mature, Fitch expects SOCAR's oil and gas production growth to be driven primarily by output expansion under major production sharing agreements (PSAs). Nevertheless, the group is well-placed among its peers in its reserve replacement rate and reserve life. Furthermore, the ratings consider the company's solid financial profile (with FY08 EBITDAR margin of 38.9% and Fitch-adjusted net leverage of 0.8x) compared with its Russian and international peers. Although the company's gross leverage increased to 1.4x in 2008 (0.2x in 2007) following the acquisition of Petkim Petrokimya Holdings AS (Petkim; 'BB-'/Negative), a Turkish petrochemicals producer, for US$2 billion, its debt maturity profile is well- balanced and liquidity position is adequate. At FYE08 it had cash of AZN512.2 million, well above its short-term debt of AZN408 million. However, Fitch notes that SOCAR intends to pursue an expansion strategy with an intensive investment program of AZN5.2 billion (US$6.4 billion) over 2009-2013 (excluding obligations under the PSAs). The implementation of this program, along with the planned construction of an oil refinery at Petkim's facilities for about US$4.4 billion, may require significant external financing leading to a material increase in leverage. =========== F R A N C E =========== FCI INTERNATIONAL: Moody's Affirms Corporate Family Rating at 'B2' ------------------------------------------------------------------ Moody's Investors Service affirmed the B2 corporate family rating of FCI International S.A.S. It also affirmed the B3 probability of default rating and the B2 bank facility ratings; and it changed the outlook to stable from negative. The change in outlook reflects the reduction in FCI's net leverage by about one turn following the prepayment of EUR146 million of bank debt, using proceeds from the sale of its electrical division for approximately US$360 million to Hubbell Inc. It also incorporates the waiver by FCI's sponsor, Bain Capital, of its right to about EUR50 million dividend, and the resetting of bank financial covenants with improved headroom. EPI generated about 12% of FCI's 2008 revenue, and had shown relatively stable operating performance during the downturn. Although Moody's believes that the disposal has slightly increased FCI's business risk -- with remaining divisions comprising the more cyclical auto and electronics, plus the higher growth MIC - the attractive sale price (at an Ebitda multiple of about eight times) and consequent deleveraging have improved FCI's overall credit profile. The positive bank response in agreeing to reset FCI's bank covenants with 20% headroom to align with the company's new business plan, taking into account current market conditions, also reduces uncertainty over the company's financing structure and removes short-term liquidity pressure. Following the disposal, covenant-defined net leverage is now about 2.5x, although Moody's notes that these calculations exclude large restructuring costs from Ebitda, mostly in the electronics and auto divisions, that are expected to continue into mid-2010. Moody's also notes that FCI's banks have agreed that the company can buy up to EUR50 million of its debt, effectively using the cash not distributed to Bain Capital. In Moody's opinion, the primary credit impact of this use of cash would be a commensurate reduction in FCI's liquidity, which is split between cash and its bank revolver -- although Moody's recognizes that FCI's liquidity has improved compared to before the disposal of EPI. Although there have been recent improvements in FCI's end-user markets, the sustainability of the recovery remains subject to the uncertainties of global economic recovery; and forward visibility remains somewhat limited. Given this uncertainty -- combined with Moody's view that the company may remain free cash flow negative until 2011, the start of mandatory debt repayments from 2010, and the operation of a cash sweep -- FCI's liquidity profile will remain an important rating consideration. On the positive side, Moody's recognizes the significant business restructuring that has already taken place, which should materially reduce FCI's fixed costs and may allow it to improve its operating margins despite lower revenues. Moody's also acknowledges the historical support shown by Bain Capital, which continues to have significant embedded equity in FCI. The last credit rating announcement for FCI was on April 6, 2009, when the CFR was downgraded to B2, with a negative outlook. FCI, based in Versailles, France, is the world's fourth largest connector manufacturer with 2008 revenue of EUR1.25 billion. In 2005, Bain Capital acquired FCI in an LBO for a total consideration of EUR934 million. WHITE TOWER: Fitch Junks Rating on EUR15.1MM Class E Notes ---------------------------------------------------------- Fitch Ratings has downgraded White Tower 2007-1's EUR345.7m commercial mortgage-backed floating-rate notes, due 2015: -- EUR255.1 million class A: downgraded to 'A' from 'AAA'; Outlook Stable -- EUR0.0003 million class X: affirmed at 'AAA'; Outlook Stable -- EUR25.4 million class B: downgraded to 'BBB' from 'AA'; Outlook Stable -- EUR25.2 million class C: downgraded to 'BB' from 'A'; Outlook Negative -- EUR25.0 million class D: downgraded to 'B' from 'BBB'; Outlook Negative -- EUR15.1 million class E: downgraded to 'CCC' from 'BB'; assigned a Recovery Rating (RR) of RR6 The rating downgrades reflect deteriorating European property market conditions, in particular the impact on loans secured by assets of a secondary nature. This is evidenced in the weighted average Fitch LTV of 110.5%, compared to a WA reported LTV of 81.9%, which implies a market value decline of 22.5%. The assets securing the Heron City, Castor and Pollux and Sebastopol loans were all revalued in 2008, but the assets securing the other loans in the pool have not been revalued since 2006. The loans are secured by a combination of office and retail properties located across France, Germany and Spain with an aggregate market value (MV) of EUR440.4 million. Fitch's criteria for European CMBS surveillance was used to analyze the quality of the underlying commercial loans. The transaction is dominated by the Heron City, Crown, and Castor and Pollux loans, which together account for 77% of the loan pool balance. The Heron City loan, which accounts for 31% of the pool, is secured by a single shopping centre/entertainment centre asset located on the outskirts of Barcelona, Spain. The property's largest tenants are Cinesa, a large multiplex cinema operator, and Virgin Active, an international gym operator, who together account for 41.9% of current passing rent. The Castor and Pollux loan, accounting for 17% of the pool, is secured by six offices and one retail property located in and around Paris, France. In September 2009, Coheris, which was the largest tenant in the pool at that time, vacated its space, thereby reducing the loan income by 17%. Furthermore, both tenants at the Laval property terminated their leases following financial difficulties during 2009. More positively, the Valois property, which had remained vacant since closing, was let to a French law firm for nine years in August 2009. Fitch will continue to monitor the performance of the transaction. ============= G E R M A N Y ============= ARCANDOR AG: Four Bidders Still in the Race to Acquire Quelle ------------------------------------------------------------- Holger Elfes at Bloomberg News reports that Klaus Hubert Goerg, Arcandor AG's insolvency administrator, said four bidders remain in contention to buy the company's Quelle mail-order unit. "We still expect an agreement by the end of this month or early November," Bloomberg quoted Thomas Schulz, who speaks for Mr. Goerg, as saying. Bloomberg relates Sueddeutsche Zeitung said the talks would be completed in coming days According to Bloomberg, Mr. Schulz said matters still to be resolved in the discussions include conditions for financing of customer credit, logistic costs and terms for laying off some Quelle workers. About Arcandor AG Germany-based Arcandor AG (FRA:ARO) -- http://www.arcandor.com/-- formerly KarstadtQuelle AG, is a tourism and retail group. Its three core business areas are tourism, mail order services and department store retail. The Company's business areas are covered by its three operating segments: Thomas Cook, Primondo and Karstadt. Thomas Cook Group plc is a tour operator with operations in Europe and North America, set up as a result of a merger between MyTravel and Thomas Cook AG. It also operates the e-commerce platform, Thomas Cook, supporting travel services. Primondo has a portfolio of European universal and specialty mail order companies, including the core brand Quelle. Karstadt operates a range of department stores, such as cosmopolitan stores, including KaDeWe (Kaufhaus des Westens), Karstadt Oberpollinger and Alsterhaus; Karstadt brand department stores; Karstadt sports department stores, offering sports goods in a variety of retail outlets, and a portal, karstadt.de that offers online shopping, among others. On Sept. 2, 2009, the Troubled Company Reporter-Europe, citing Bloomberg News, reported that a local court in Essen formally opened insolvency proceedings for the Arcandor on Sept. 1. Bloomberg disclosed the proceedings started for the Arcandor holding company and for 14 units, including the Karstadt department-store chain and Primondo mail-order division. As reported in the Troubled Company Reporter-Europe, on June 9, 2009, Arcandor filed for bankruptcy protection after the German government turned down its request for loan guarantees. On June 8, 2009, the government rejected two applications for help by the company, which employs 43,000 people. The retailer sought loan guarantees of EUR650 million (US$904 million) from Germany's Economy Fund program. It also sought a further EUR437 million from a state-owned bank. DECO 9: Fitch Junks Ratings on Four Classes of Notes ---------------------------------------------------- Fitch Ratings has downgraded nine classes of notes from DECO 9 - Pan Europe 3 plc, a commercial mortgage-backed securitization. The Outlooks on the class A2 to D notes are Negative. The agency has simultaneously assigned Recovery Ratings to the class F, G, H and J notes The rating actions are: -- EUR345.3 million class A1 (XS0262559296) affirmed at 'AAA'; Outlook Stable -- EUR5,000 class X (XS0262560203) affirmed at 'AAA'; Outlook Stable -- EUR312.0 million class A2 (XS0262561276) downgraded to 'AA' from 'AAA'; Outlook Negative -- EUR39.0 million class B (XS0262561946) downgraded to 'A' from 'AAA'; Outlook Negative -- EUR37.6 million class C (XS0262562753) downgraded to 'BB' from 'AA'; Outlook Negative -- EUR15.2 million class D (XS0262563215) downgraded to 'BB-' from 'AA'; Outlook Negative -- EUR21.5 million class E (XS0262563728) downgraded to 'B' from 'A'; Outlook Negative -- EUR34.2 million class F (XS0262564452) downgraded to 'CCC' from 'BBB'; assigned RR5 -- EUR6.7 million class G (XS0262565004) downgraded to 'CCC' from 'BBB-'; assigned RR6 -- EUR10.0 million class H (XS0262565939) downgraded to 'CCC' from 'BB'; assigned RR6 -- EUR4.8 million class J (XS0262566234) downgraded to 'CCC' from 'BB-'; assigned RR6 Most of the underlying loans in the transaction have been affected by the ongoing downturn in the continental European commercial real estate markets. The loan pool had a reported weighted- average loan-to-value ratio of 67.6% at the July 2009 interest payment date. This compares to a WA Fitch LTV of 81.9%, reflecting an overall market value decline of 20.3% since closing in August 2006. Of the eight remaining loans, the Treveria I and PGREI Portfolio loans are the main drivers of the rating downgrades. Fitch used its European CMBS Surveillance Criteria to analyze the underlying loans of the pool. The Treveria I loan is the largest in the portfolio, representing 31.5% of the pool balance, and expires in January 2011. The loan is secured by a portfolio of predominantly secondary quality shopping centres and retail warehouses located across Germany. In the agency's opinion, the loan is exposed to significant refinancing risk due its size, its relatively short unexpired term to scheduled maturity, the secondary quality of its collateral and the considerable vacancy levels (11.7% by estimated rental value versus 4.4% at closing). The senior LTV reported as of July 2009 stands at 80.0%, which compares to an estimated WA Fitch LTV of 112.3%, reflecting an overall MVD of 30%. The second loan, which significantly contributed to the rating downgrades, is the PGREI portfolio loan (14.6% of the pool balance). The loan had a reported LTV of 80.2% at the July 2009 IPD, based on the valuation at closing. This compares to a Fitch LTV of 105%, reflecting an overall MVD of 23.5%. The magnitude of this decline primarily reflects the yield shift which Fitch believes to have occurred for this type of collateral. However, the relatively stable rental income provided by good credit tenants on generally long leases is expected to partially mitigate the refinancing risk at scheduled loan maturity on January 2014. Fitch is also closely following the performance of the Dresdner office portfolio loan (30.7% of the pool balance). If the anchor tenant Dresdner Bank AG, now part of Commerzbank AG ( 'A+'/'F1+'/Stable) and representing approximately 80% of the current rental income, decided not to renew its shortly expiring leases on some of the portfolio's largest properties, the currently robust performance of the loan could suffer substantial impairment. The facility is scheduled to mature in January 2013 and has a reported LTV of 47.2%, which compares to a Fitch LTV of 55.9%. Fitch will continue to monitor the performance of the transaction. DECO 10: Fitch Junks Rating on EUR19MM Class D Notes From 'BBB' --------------------------------------------------------------- Fitch Ratings has downgraded four classes of DECO 10 - Pan Europe 4 p.l.c and affirmed the class A1 tranche. The rating actions are: -- EUR299.1 million class A1 due October 2019 (XS0276266888) affirmed at 'AAA'; Outlook Stable -- EUR276.8 million class A2 due October 2019 (XS0276271375) downgraded to 'A' from 'AAA'; Outlook Negative -- US$31.9 million class B due October 2019 (XS0276272001) downgraded to 'BBB-' from 'AA'; Outlook Negative -- EUR31.9 million class C due October 2019 (XS0276273074) downgraded to 'B' from 'A'; Outlook Negative -- EUR19 million class D due October 2019 (XS0276273660) downgraded to 'CCC' from 'BBB'; assigned Recovery Rating 'RR6' The downgrade reflects the impact on the 10 remaining loans in the portfolio of the downturn in the European commercial real estate market. The total loan portfolio had a reported weighted-average loan-to-value ratio of 59.4% at the July 2009 interest payment date. This compares to a Fitch WA LTV of 81.8%, reflecting an overall market value decline of 20.8%. However, the value declines within the portfolio are partially mitigated by scheduled amortization on six of the 10 remaining loans, which amortize between 1% and 2% per annum of their original balance. Fitch's criteria for European CMBS surveillance were used to analyze the quality of the underlying commercial loans. Fitch is closely monitoring the performance of the Dresdner office portfolio loan, the largest loan in the portfolio at 30.7% of the pool balance. The anchor tenant Dresdner Bank AG, now part of Commerzbank AG ( 'A+'/'F1+'/Stable), represents approximately 80% of the current rental income. However, 24% of rent is derived from leases that are scheduled to expire before end-2011; should the tenant decide not to renew these shortly expiring leases on some of the portfolio's largest properties, the currently robust performance of the loan could suffer substantial impairment. The loan facility is scheduled to mature in January 2013 and has a reported LTV of 47.2%, which compares to a Fitch LTV of 55.9%. The Treveria II loan (the second-largest, at 16.7% of the pool balance) is secured by 47 retail, retail warehouse, shopping centre and mixed-use properties. The reported LTV stands at 71.7%, which compares to an estimated Fitch LTV of 107.1% (the exit Fitch LTV stands at 104.1%). The Fitch LTV reflects an overall MVD of 33%. The combination of a high Fitch LTV and loan maturity in July 2011 leaves the loan significantly exposed to balloon risk. Further, the portfolio has suffered from declining collateral income in recent quarters due to last year's administration of SinnLeffers, a German fashion retailer, which has shut approximately half of its stores, some of which were securitized in this portfolio. This has resulted in the presence of some medium to large vacant assets (11% by lettable area for the overall portfolio), as well as decreased gross rental income and increased re-letting costs, which ultimately led the loan to breach its 1.25x cash trap trigger in the July 2009 IPD. The Treveria II loan has been placed on Fitch's watchlist. The euro-funded transaction contains two loans denominated in Swiss francs (the Emmen and Swisscom loans, representing a combined 21.4% of the pool balance). Issuer-level currency hedging means that the probability of a loss being suffered by the issuer is determined by the respective borrowers' ability to pay, and not by currency fluctuations; however, should a loss be suffered on these loans, noteholders' exposure could be compounded by an appreciation of the Swiss Franc relative to the euro. Fitch has reflected this risk in its credit analysis. Fitch will continue to monitor the performance of the transaction. GENERAL MOTORS: Magna, Sberbank Near Opel Acquisition Deal ---------------------------------------------------------- Magna International Inc. and partner OAO Sberbank are close to completing an agreement to buy a majority stake in General Motors Co.'s Opel division, Chris Reiter and Jeff Green report, citing three people familiar with the situation. Bloomberg relates the people, who asked not to be identified before an agreement is announced, said the companies' lawyers are reviewing contracts in Frankfurt and aim to resolve final issues to pave the way for a deal to shift 55% of Ruesselsheim, Germany-based Adam Opel GmbH to Magna and Sberbank. According to Bloomberg, the people said an accord may be announced today at the earliest. Bloomberg says as part of the transaction, Opel's workers need to sign off on a plan to reduce as much as EUR1.6 billion (US$2.4 billion) in costs through 2014 in exchange for a 10% stake in the carmaker and more influence on the board. Bloomberg notes one of the people said those negotiations are continuing and may also be completed today. As reported in the Troubled Company Reporter-Europe on Oct. 15, 2009, Bloomberg News said German workers at GM's Opel unit agreed to freeze wages and cut bonuses. Bloomberg disclosed Harald Lieske, works council chief at the plant in Eisenach, said in a phone interview Wednesday at the plant in Eisenach, the labor accord will help achieve annual savings of about EUR175 million (US$261 million) at the carmaker's four German factories. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- as founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM Europe is based in Zurich, Switzerland, while General Motors Latin America, Africa and Middle East is headquartered in Miramar, Florida. As reported by the Troubled Company Reporter, GM reported net loss of US$6.0 billion, including special items, in the first quarter of 2009. This compares with a reported net loss of US$3.3 billion in the year-ago quarter. As of March 31, 2009, GM had US$82.2 billion in total assets and US$172.8 billion in total liabilities, resulting in US$90.5 billion in stockholders' deficit. General Motors Corporation and three of its affiliates filed for Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case No. 09-50026). General Motors changed its name to Motors Liquidation Co. following the sale of its key assets to a company 60.8% owned by the U.S. Government. The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as the Chief Executive Officer for Motors Liquidation Company. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. Bankruptcy Creditors' Service, Inc., publishes General Motors Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Motors Corp. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). TALISMAN-7 FINANCE: Fitch Corrects October 12 Press Release ----------------------------------------------------------- This announcement corrects the version published on October 12, 2009. The collateral securing the loans have an aggregate market value of EUR1,752.9 million and not EUR1,470 million as previously stated. Fitch Ratings has downgraded TALISMAN-7 Finance Ltd's EUR1,047.9 million commercial mortgage-backed floating-rate notes, due 2017,: -- EUR611.2 million class A: downgraded to 'AA' from 'AAA'; Outlook Stable -- EUR0.1 million class X: affirmed at 'AAA'; Outlook Stable -- EUR88.1 million class B: downgraded to 'A' from 'AA'; Outlook Stable -- EUR85 million class C: downgraded to 'BBB' from 'A'; Outlook Negative -- EUR67.1 million class D: downgraded to 'BB' from 'A'; Outlook Negative -- EUR47.6 million class E: downgraded to 'B' from 'BBB'; Outlook Negative -- EUR69.5 million class F: downgraded to 'B-' from 'BBB'; Outlook Negative The rating downgrades reflect deteriorating European property market conditions, and especially the impact on loans secured by assets of a secondary nature. This is evidenced in the weighted average Fitch loan-to-value ratio of 93%, as compared to a WA reported LTV of 61%, which implies a market value decline of 35%. The majority of the assets in the portfolio were last valued in December 2006, at the peak of the market, although some assets have been re-valued more recently. The loans are secured by a combination of office, retail, light industrial and multifamily properties located across Germany with an aggregate market value of EUR1,752.9 million. Fitch's criteria for European CMBS surveillance and criteria for European multifamily loans were used to analyze the quality of the underlying commercial loans. The transaction has significant exposure to the Mozart loan, which alone accounts for 57% of the pool and is secured by a portfolio of 105 mixed properties. The loan's collateral assets are, on average 30% reversionary, although most of this reversion is due to the high level of vacancies in the pool which are 25% by estimated rental value, down 3% since closing. The portfolio has a WA lease length of 3.3 years, compared to an unexpired loan term of 2.4years. A strength of the loan income is its granularity, with the rent roll comprising over 1,000 tenants and the largest tenant accounting for no more than 5% of passing rent. On August 28, 2008, a default notice over the Bruckner loan was issued by the servicer after loan sponsor Level One Holdings entered administration, although the loan has not yet been enforced. The flow of funds from tenants to the borrower collections accounts is not currently in accordance with the facility agreement, with only debt service being paid to the borrower. This issue could have an impact on the amount of cash available to service debt and pay down the loan. TAURUS CMBS: Fitch Downgrades Rating on Class D Notes to 'B' ------------------------------------------------------------ Fitch Ratings has downgraded and affirmed Taurus CMBS (Germany) 2006-1 plc's commercial mortgage-backed floating rate notes: -- EUR233.1 million class A (XS0257712579): affirmed at 'AAA'; Outlook Stable -- EUR0.1 million class X (XS0257713627): affirmed at 'AAA'; Outlook Stable -- EUR31.7 million class B (XS0257714435): downgraded to 'A' from 'AA'; Outlook Stable -- EUR19.9 million class C (XS0257715242): downgraded to 'BBB' from 'A'; Outlook Negative -- EUR17.6 million class D (XS0257715838): downgraded to 'B' from 'BBB'; Outlook Negative The downgrades reflect ongoing declines in European commercial real estate values. The pool has a reported weighted-average loan-to-value ratio of 65.1% compared to Fitch's LTV estimate of 74.4%, indicating a WA market value decline of 12.6% since closing in July 2006. Fitch's criteria for European CMBS surveillance and multifamily analysis were used to analyze the quality of the underlying commercial loans. At closing, the transaction was a securitization of a multiborrower pool of 9 commercial mortgage loans with an aggregate loan balance of EUR571.1 million, secured on properties located in Germany with an aggregate current value of EUR836.7 million. Since closing, four of the loans have prepaid and this, coupled with scheduled amortization, has reduced the pool balance to EUR302.3 million. The current loans are secured by predominantly office and retail assets, located throughout Germany. The portfolio shows a relatively long unexpired weighted-average lease term to break of 7.34 years, compared with 9.7 years at closing, and a WA loan term of 3.05 years, compared with 5.6 years at closing. One loan, the Bremen loan, is scheduled to mature in October 2010 and accounts for 16.5% of the securitized portfolio, with the remaining loans scheduled to mature in 2011 and 2013. The largest loan, the Bewag loan, represents 42.0% of the aggregate loan balance and 39.9% by MV. This loan is secured by a large office property in Berlin which is 100% let to Bewag AG (100% subsidiary of Vattenfall AB, which in turn is 100%-owned by the Swedish State (rated 'AAA')) as their headquarter building with 8.0 years remaining on the lease. With the exception of the Ruhr Portfolio loan, the rest of the loans could be described as average-to-good quality retail and shopping centre assets let on reasonably long leases and benefitting from strong tenant covenants. The Ruhr Portfolio loan is secured by 14 office and retail assets and has seen the vacancy rate increase to 17.1% from 9.8% at closing. With the exception of the Ruhr Portfolio loan, which also has the risk of further income declines in the near term, Fitch's main concern in relation to all of the loans is the refinancing risk. Fitch will continue to monitor the performance of the transaction. =========== G R E E C E =========== WIND HELLAS: To Defer Payment on Subordinated Bonds --------------------------------------------------- John Glover and Maria Petrakis at Bloomberg News report that Wind Hellas Telecommunications SA said it plans to pay interest on senior debt and use a grace period to defer coupons on subordinated bonds. Bloomberg relates Hellas Telecommunications II, the holding company for Wind Hellas, said in a statement lenders agreed to waive and amend some of the terms and conditions of its debt in return for a consent fee. According to Bloomberg, a cash investment of at least EUR50 million (Us$75 million), as well as restructuring costs and interest payments to subordinated noteholders, is among new terms being demanded by lenders. Wind Hellas Chief Operating Officer Nasos Zarkalis, as cited by Bloomberg, said the company, which is seeking to restructure as much as EUR3 billion of debt, needs a "new cash equity investment to improve its liquidity position and enable it to invest in its customers and its network." Headquartered in Athens, WIND Hellas Telecommunications S.A. -- http://www.wind.com.gr/-- offers TIM-branded (formerly Telestet) wireless telecom services to about 2.3 million consumer and small- business customers throughout Greece. From its digital GSM network, the firm offers conference calling, mobile e-mail, fax, and data transmission. * * * As reported in the Troubled Company Reporter-Europe on Sept. 8, 2009, Standard & Poor's Ratings Services said that it lowered its long-term corporate credit ratings on Greek mobile telecommunications operator WIND Hellas Telecommunications S.A. and related entities to 'CC' from 'CCC' on the group's weak second-quarter results and announcement that it was in talks with its shareholders about a potential restructuring of the group's capital structure. S&P said the outlook is negative. ============= I R E L A N D ============= BABCOCK NETWORKS: Ken Fennell Named Provisional Liquidator ---------------------------------------------------------- RTE News reports that Ken Fennell of Kavanagh Fennell has been appointed provisional liquidator to Babcock Networks Ireland. The liquidator hopes to sell the business as a going concern, the report says. Babcock Networks is a telecom equipment company. The company has offices in Ballymount in Dublin and Athlone, Co Westmeath, and employs 64 staff, the majority of whom are field-based engineers. ZOE GROUP: Supreme Court Orders Liquidation of Companies -------------------------------------------------------- Mary Carolan at The Irish Times reports that the Supreme Court on Wednesday made orders confirming the liquidation of key companies in Liam Carroll's heavily insolvent Zoe group. According to the Irish Times, the Chief Justice, Mr. Justice John Murray, said the companies must bear the consequences of Mr. Carroll's decision to deliberately withhold "material and crucial evidence" from the courts "in the teeth of legal advice" when they brought their first application for court protection. Mr. Murray, as cited by the Irish Times, said that "conscious and deliberate strategic decision" to withhold the companies' business plan was an abuse of the court's process in relation to the appointment of examiners and was a clear bar to a second petition proceeding. The judges, with whose judgments Mr. Justice Nial Fennelly agreed, also made orders lifting a stay on the winding up of the companies, the Irish Times relates. Declan Taite, who was provisional liquidator, now becomes official liquidator, the Irish Times discloses. The Irish Times notes the court made further orders awarding the costs of most of the various court proceedings to ACC Bank, which is owed EUR136 million by Zoe companies and had opposed court protection being granted. The issue of the costs of the Supreme Court appeal will be dealt with later, the Irish Times says. ========= I T A L Y ========= CORDUSIO RMBS: Moody's Reviews 'Ba2' Rating on Class E Notes ------------------------------------------------------------- Moody's Investors Service has placed on review for possible downgrade two classes of notes issued by Cordusio RMBS Securitisation S.r.l. - Series 2007: -- EUR102,000,000 Class D, Placed under review for possible downgrade; previously on 25 May 2007 assigned Baa2; -- EUR19,500,000 Class E, Placed under review for possible downgrade; previously on 25 May 2007 assigned Ba2. The review for possible downgrade was prompted by the worse-than- expected collateral performance of the underlying portfolio. This may lead to an increase in portfolio loss expectations resulting from higher-than-expected delinquency and default levels in the transaction. On the last payment date in September 2009 the cumulative defaults were equal to 0.89% of original portfolio balance. At the same time, the mortgage loans more than 90 days in arrears have reached approximately 0.95% of current balance. Moody's notes that the transaction has been drawing on its reserve fund. As of the last payment date, the reserve fund amounted to EUR1.85 million that is only about 29.6% of its target amount of EUR6.25 million. As part of Moody's detailed transaction review, Moody's will reassess the lifetime loss expectation for the portfolio, reflecting the collateral performance to date as well as the future macro-economic environment. Moody's will also request, whenever not already available, updated loan-by-loan information to revise its MILAN Aaa credit enhancement. Loan-by-loan information will also permit Moody's to validate its assumptions with regards to which loans have a higher default propensity. The lifetime loss and the MILAN Aaa credit enhancement are the key parameters used by Moody's to calibrate its loss distribution curve, which is one of the core inputs in the cash-flow model. Cordusio RMBS Securitization S.r.l. was the fourth RMBS transaction launched by UniCredit Banca SpA, now UniCredit Family Financing S.p.A. (A1/P-1). The portfolio consisted of EUR 3,908,102,838 of prime residential mortgage loans. All loans are guaranteed by first economic lien on residential properties and all of them benefit from an economic first lien mortgage (ipoteca) on the actual property. At closing, all loans were in bonis (performing). Moody's ratings address the expected loss posed to investors by the legal final maturity of the notes. Moody's ratings address only the credit risks associated with the transaction. Other non- credit risks have not been addressed, but may have a significant effect on yield to investors. DIT GROUP: To Close Italian Subsidiary -------------------------------------- Avi Krawitz at Rapaport News reports that Dubai-based Damas International on Tuesday decided to close its Italian unit DIT Group SPA. According to the report, Damas said that the Italian operation, which trades under the trademarks Stefan Hafner, loSi, Porrati and Nouvelle Bague, was running at a loss and accounted for less than 2% of the group's total revenues in fiscal 2009. RISANAMENTO SPA: Awaits Bankruptcy Case Ruling, Chairman Says ------------------------------------------------------------- Elena Distaso and Tommaso Ebhardt at Bloomberg News report that Risanamento SpA Chairman Vincenzo Mariconda yesterday said judges in the bankruptcy case for the Italian property developer expect to make a ruling in the next few days. "We asked the judges to reject the bankruptcy request" made by prosecutors, Bloomberg quoted Mr. Mariconda as saying after a court hearing. According to Bloomberg, Milan prosecutors Laura Pedio and Roberto Pellicano didn't make a filing opposing Risanamento's restructuring plan by a 3:00 p.m. deadline yesterday. Armorel Kenna at Bloomberg News, citing news agency Ansa, reports that Risanamento's lawyers say the company isn't insolvent. Bloomberg relates the news agency reported Tuesday Risanamento's creditors continue to support the company and haven't asked that the company be declared bankrupt. As reported in the Troubled Company Reporter-Europe on Oct. 13, 2009, Bloomberg News, citing Radiocor news agency, said Risanamento's latest restructuring plan was rejected by Milan prosecutors. As reported in the Troubled Company Reporter-Europe on Sept. 10, 2009, Bloomberg News, citing daily Il Sole 24 Ore, said Risanamento's restructuring plan, backed by 60% of the real estate company's creditors, includes a EUR150-million (US$218 million) capital increase, the conversion of EUR350 million of debt and the sale of assets, excluding property in New York and Paris. Risanamento was ordered to come up with the plan in response to a prosecutor's statement in July that the real-estate company had failed, according to Bloomberg. About Risanamento SpA Headquartered in Milan, Italy, Risanamento SpA -- http://www.risanamentospa.it/-- is a company engaged in the real estate sector. It is part of the Zunino Group. Its main activities are real estate investments, real estate promotion and development. The Company provides its services through numerous subsidiaries and associated companies, such as Milano Santa Giulia SpA, Etoile ST. Florentin Sarl, Risanamento Europe Sarl and RI Investimenti Srl. Risanamento operates in the real estate promotion and development, and real estate investments sectors. The Company's main projects are the creation of the new Milano Santa Giulia district, and the redevelopment of the former Falck area in Sesto San Giovanni. =================== K A Z A K H S T A N =================== BALHASH 5: Creditors Must File Claims by October 21 --------------------------------------------------- Creditors of LLP Balhash 5 have until October 21, 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 26, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of South Kazakhstan Tynybaev Str. 42 Shymkent Kazakhstan KAZAKHTELECOM JSC: Fitch Affirms Issuer Default Ratings at 'BB' --------------------------------------------------------------- Fitch Ratings has affirmed JSC Kazakhtelecom's Long-term foreign and local currency Issuer Default ratings at 'BB', Short-term foreign currency IDR at 'B' and National Long-term rating at 'A(kaz)'. The Outlooks on the Long-term IDRs and the National Long-term rating are Negative. The Negative Outlook reflects a substantial refinancing risk attributed to the US$350 million syndicated loan maturity in July 2010. Fitch expects this loan to be repaid in part with the company's accumulated cash, while the remainder of the outstanding loan is likely to be refinanced with new external debt to be received by Kaztel in the near future. However, Kaztel has yet to secure new external debt. If the company does not successfully secure new debt in the next few months, Kaztel's ratings are likely to be reviewed for a downgrade. In addition, the Negative Outlook reflects Fitch's concern that part of Kaztel's cash, which is mainly kept in local banks, may be effectively restricted for some period due to the banks' possible tight liquidity. This could in turn impact Kaztel's liquidity which was lower than the company's short-term debt plus the syndicated loan at end-June 2009. On a negative note, Fitch also underlines that nearly all of Kaztel's debt is, and will remain denominated in or linked to, foreign currency, while the company's cash flow is denominated predominantly in tenge. This mismatch results in a substantial currency risk. In case of a further tenge devaluation comparable to that in early 2009, Kaztel's leverage is likely to exceed 2x which could impact the company's rating. On a positive note, the ratings factor in Fitch's expectations of a decline in Kaztel's leverage and an improvement to generated free cash flow (FCF), following reduced capex, as well as the expected divestment of Kaztel's 51% stake in its highly-leveraged mobile subsidiary, Mobile Telecom-Service LLP (MTS), which Fitch views as likely at end-2009. At end-2008, Kaztel's leverage (net debt/EBITDA including associate dividends) was 1.7x, which left the company limited headroom for raising leverage without affecting its rating. Although the 25% tenge devaluation in early 2009 puts substantial pressure on the company's leverage, Fitch expects leverage will not increase materially or will even decrease by end-2009, due to reduced capex and the planned MTS disposal. For the same reasons, Kaztel's FCF, which has been negative in 2005-2008, is expected to improve, although remain negative in 2009, and turn positive from 2010. Kaztel's ratings continue to be supported by the company's dominant market position in the fixed-line voice and internet services segments (89% and 67% of the market at end-2008, respectively) in Kazakhstan ('BBB-'/'F3'/Negative Outlook) which is unlikely to be challenged in the short- to medium-term. The ratings are also underpinned by Kaztel's sustainable EBITDA generation, with an EBITDA margin after associate dividends of 37.4% and an organic EBITDA margin of 30.5% at end-2008. Fitch forecasts that these margins will increase following the MTS disposal. Kaztel is a fixed-line incumbent operating in Kazakhstan. The state holds an indirect 51% controlling interest in Kaztel through National Welfare Fund Samruk-Kazyna. MAI STROY: Creditors Must File Claims by October 21 --------------------------------------------------- LLP Mai Stroy Service is currently undergoing liquidation. Creditors have until October 21, 2009, to submit proofs of claim to: Saduakasov Str. 124-1 Kokshetau Kazakhstan NORTH SOUTH: Creditors Must File Claims by October 21 ----------------------------------------------------- LLP North South Trans Ltd. is currently undergoing liquidation. Creditors have until October 21, 2009, to submit proofs of claim to: Office 314 Business Center Jarsu Djangildin Str. 31 Almaty Kazakhstan ONTUSTIK OIL: Creditors Must File Claims by October 21 ------------------------------------------------------ LLP Ontustik Oil is currently undergoing liquidation. Creditors have until October 21, 2009, to submit proofs of claim to: Temir Jol Str. 9 Lenger Tolebyisky District South Kazakhstan Kazakhstan POLIGRAPH IZDAT: Creditors Must File Claims by October 21 --------------------------------------------------------- Creditors of LLP Poligraph Izdat have until October 21, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Baizakov Str. 273b Almaty Kazakhstan The court commenced bankruptcy proceedings against the company on July 14, 2009. SHART-AK LLP: Creditors Must File Claims by October 21 ------------------------------------------------------ Creditors of LLP Shart-Ak have until October 21, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of South Kazakhstan Tynybaev Str. 42 Shymkent Kazakhstan The court commenced bankruptcy proceedings against the company on July 7, 2009. SABYR 77: Creditors Must File Claims by October 21 -------------------------------------------------- Creditors of LLP Sabyr 77 have until October 21, 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 30, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of South Kazakhstan Tynybaev Str. 42 Shymkent Kazakhstan SOLITON ETT: Creditors Must File Claims by October 21 ----------------------------------------------------- Creditors of LLP Soliton Ett have until October 21, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Baizakov Str. 273b Almaty Kazakhstan The court commenced bankruptcy proceedings against the company on July 14, 2009. TECH SERVICE: Creditors Must File Claims by October 21 ------------------------------------------------------ Creditors of LLP Tech Service Ug have until October 21, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of South Kazakhstan Tynybaev Str. 42 Shymkent Kazakhstan The court commenced bankruptcy proceedings against the company on July 7, 2009. VOSTOK MUNAI: Creditors Must File Claims by October 21 ------------------------------------------------------ LLP Vostok Munai Service is currently undergoing liquidation. Creditors have until October 21, 2009, to submit proofs of claim to: Kazybek Bi Str. 40-21 Almaty Kazakhstan =================== K Y R G Y Z S T A N =================== MAKSAT OJSC: Court Names S. Jantashov as Insolvency Manager ----------------------------------------------------------- The Inter-District Court of Bishkek for Economic Issues appointed S. Jantashov as Insolvency Manager for OJSC Maksat on August 11, 2009. He can be reached at: Berdike Baatyr Str. 287 Talas Kyrgyzstan Tel: (0-772) 70-80-54 The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ED-132/09MT. STENDLI COMPANY: Court Names T. Boronchiev as Insolvency Manager ---------------------------------------------------------------- The Inter-District Court of Bishkek for Economic Issues appointed ?. Boronchiev as Insolvency Manager for LLC Stendli Company on July 7, 2009. He can be reached at: Moskovskaya Str. 151 Bishkek Kyrgyzstan Tel: (0-543) 03-63-41 The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ED-690/09???2. ===================== N E T H E R L A N D S ===================== DSB BANK: Talks with Banks to Avert Bankruptcy Fail --------------------------------------------------- Fred Pals at Bloomberg News reports that DSB Bank NV failed to reach an agreement with a group of banks including ING Groep NV and Fortis to avoid bankruptcy. Talks at the central bank's office in Amsterdam between representatives of Wognum, Netherlands-based DSB and the group didn't lead to a "solution," Bloomberg quoted Rabobank Groep NV, one of the lenders in the group, as saying in a statement. Bloomberg relates a court in Amsterdam said yesterday DSB, which was put under the control of the central bank on Oct. 12, will be declared bankrupt if it rules out a quick takeover. On Oct. 14, 2009, the Troubled Company Reporter-Europe, citing Bloomberg News, reported the central bank said DSB Bank's solvency is under "great pressure". Bloomberg disclosed Pieter Lakeman, chairman of a foundation that represents customers who seek compensation after being overcharged for their mortgages, called for deposit withdrawals at DSB on Dutch public television Oct. 1. Dutch Central Bank President Nout Wellink, as cited by Bloomberg, said capital outflows at DSB amounted to EUR600 million (US$888 million) from that day and the bank currently has about EUR3.5 billion in deposits. According to Bloomberg, the central bank said attempts to sell DSB to a group of five banks including ING Groep NV, ABN Amro Holding NV, Rabobank Groep NV, Fortis Bank Nederland and SNS Reaal NV failed because there was uncertainty about possible claims on DSB for lending too much, failing to meet its responsibilities to clients and possible losses on credits. DSB Bank -- http://www.dsbbank.com/-- is a fully licensed bank in the Netherlands, providing mortgages, consumer loans, savings and insurance products to retail clients. The bank has a leading market share in the Dutch market for consumer loans. DSB Bank also has operations in Belgium and Germany. DSB Bank, established in 1975, is privately owned by Dirk Scheringa, currently CEO of DSB Bank, Chairman of the Executive Management Board. Mr. Scheringa is also 100% owner of AZ Alkmaar football club, which plays in the Dutch Premier League and president of the Scheringa Museum for Magic Realism, an international collection of more than 500 works of art. ING GROEP: Oversea-Chinese Bank to Buy ING's Asia Private Bank -------------------------------------------------------------- Oversea-Chinese Banking Corp., the owner of Singapore's biggest life insurer, is close to an agreement to buy ING Groep NV's private banking assets in Asia for about US$1.5 billion, Bloomberg News reports citing people with knowledge on the matter. According to Bloomberg, the people said Oversea-Chinese beat out HSBC Holdings Plc for ING's Asian private bank as competition heats up in a region expected to outperform Europe and the U.S. in wealth accumulation. Bloomberg recalls Amsterdam-based ING last week sold its Geneva-based wealth management business to Julius Baer Group Ltd. as it seeks to raise as much as EUR8 billion (US$12 billion). The report discloses that ING's Asian private banking division is led by Renato de Guzman and manages assets for more than 5,000 clients from offices in Singapore, Hong Kong and the Philippines. Assets under management declined to EUR11 billion at the end of June from EUR11.4 billion three months earlier, the report notes. As reported by the Troubled Company Reporter-Europe on Sept. 17, the European Commission has extended, under EC Treaty state aid rules, its investigation of the illiquid asset back-up facility provided by the Dutch State to the financial group ING. The Commission has also extended its temporary clearance of the measure until the assessment of the measure is finalized. The Commission initially authorised the measure for six months for reasons of financial stability on March 31, while opening an in-depth investigation to analyze the complex measure in light of the Commission's Impaired Assets Communication. On the basis of the information provided so far, the Commission has doubts as to the compatibility of the measure with the Impaired Assets Communication, in particular as regards valuation and burden sharing. This decision is without prejudice to the final outcome of the investigation. In January 2009, the Dutch State and ING implemented a so-called illiquid assets back-up facility for a portfolio of US$39 billion (EUR30 billion) par value worth of US residential mortgage-backed securities , mostly backed by so-called Alt-A mortgage loans. Under the transaction, the Dutch State buys the right to receive future cash flows on 80% of the above-mentioned portfolio. The Commission has assessed the measure under its guidance Communication on the treatment of asset relief measures. Taking account of input from external experts, the Commission considers that the valuation seems at this stage not conservative enough. In addition, the Commission found that a significant proportion of securities were valued above purchase price. Therefore, the Commission continues to have doubts that the price paid by the Dutch Government, equivalent to a transfer price of 90% of the face value, is justified. Should the Dutch authorities not be in a position to address the Commission's concerns in a convincing manner, the Commission's final decision on the compatibility of the facility with EU state aid rules would have to require increasing the remuneration of the Dutch State. Headquartered in Amsterdam, the Netherlands, ING Groep N.V. -- http://www.ing.com/-- is a global financial institution offering banking, investments, life insurance and retirement services. The Company serves more than 85 million private, corporate and institutional customers in Europe, North and Latin America, Asia and Australia. ING has six business lines: Insurance Europe, Insurance Americas, Insurance Asia/Pacific, Wholesale Banking, Retail Banking and ING Direct. In July 2008, the Company completed the acquisition of CitiStreet LLC, a retirement plan and benefit service and administration company in United States. In November 2008, ING Groep N.V. increased its stake in joint venture Billington Holdings PLC from 50% to 100%. In February 2009, the Company announced that it closed the sale of its Taiwanese life insurance business to Fubon Financial Holding Co. Ltd. In April 2009, the Company sold its non-state pension fund business and its holding company in Russia to Aviva plc. LYONDELL CHEMICAL: Gets Nod to Tap Miller & Chevalier as Counsel ---------------------------------------------------------------- Lyondell Chemical Co. and its affiliates obtained the Court's authority to employ Miller & Chevalier Chartered as their special counsel, nunc pro tunc to January 6, 2009. The Debtors relate that since their retention of Miller & Chevalier as ordinary course professional, they have determined that their need of Miller & Chevalier's specialized services is more substantial than that provided for in the OCP Order. As the Debtors' special counsel, Miller & Chevalier will provide: a. advice to the Debtors on Federal income tax matters, including both the implications of the Debtors' bankruptcy and reorganization planning and more general federal income tax planning and compliance; b. advice to the Debtors with respect to tax accounting methods, including the last-in-first-out accounting method and the implications on that method of the Debtors' bankruptcy and reorganization; c. advice to the Debtors on employee benefits and pension issues; d. advice to and representation of the Debtors with respect to Federal legislative and regulatory matters, including advising and lobbying on tax, energy, customs, and climate-change issues; e. advice to the Debtors with respect to federal audit matters; f. advice to the Debtors with respect to federal customs and duty matters; and g. advice to the Debtors with respect to federal excise tax matters. The Debtors will pay Miller & Chevalier's professionals according their customary hourly rates: Title Rate per Hour ----- ------------- Members US$575 to US$825 Associate/Counsel US$250 to US$450 Legal Assistants US$165 to US$225 The Debtors will reimburse Miller & Chevalier for expenses incurred. The Debtors disclose that they owed Miller & Chevalier US$155,691 for prepetition services and expenses. Mary Lou Soller, Esq., a member at Miller & Chevalier, assures the Court that her firm does not represent any parties-in- interest in connection with the Debtors or their Chapter 11 cases. She adds that Miller & Chevalier is a "disinterested person" as the term is defined under Section 101(14) of the Bankruptcy Code. 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) LYONDELL CHEMICAL: Proposes Entry Into Enterprise Products Pact --------------------------------------------------------------- Lyondell Chemical Co. and its units sought and obtained the Court's approval of an agreement among Debtors Lyondell Chemical Company, Equistar Chemicals, L.P., and Basell USA Inc., and Enterprise Products Operating LLC. The Debtors and Enterprise Products are parties to certain contracts, spot agreements and leases wherein they engage in the production, purchase, sale, exchange and transportation of various petrochemical products, including natural gas liquid, polymer grade propylene, refinery grade propylene, butane and isobutane. Enterprise Products and Basell USA each owns an undivided 50% interest in a propane-propylene splitter and appurtenant facilities and fixtures used for the separation of polymer grade propylene from mixed propane-propylene streams, along with certain real property in Chambers County, Texas. To restructure the contractual relationship between the Debtors and Enterprise Products and resolve certain claims extant among them, the Debtors and Enterprise Products entered into the Agreement, the salient terms of which are: * Equistar will reject a Condensate Contract with Enterprise Products under Section 365 of the Bankruptcy Code, effective as of September 1, 2009. Equistar and Enterprise Product will have no further obligation to perform under the Equistar Condensate Contract after September 1, 2009. Enterprise Products will be allowed a general unsecured claim against Equistar for US$300,000 for rejection damages under the Equistar Condensate Contract. * Lyondell will assume these agreements with Enterprise Products: an ISO Processing Agreement, Butane Sales Agreement, and Lyondell Propane Purchase Agreement. Basell USA will assume these agreements with Enterprise Products: Propylene Sales Agreement, as amended; Facility and Pipeline Agreement, as amended, which will reflect the sale to Enterprise Products of Basell USA's 50% undivided interest in the Assets, pursuant to an Asset Purchase Agreement; Lake Charles Pipeline Eastern Segment Expansion Agreement; Lake Charles Pipeline West Lease Agreement, as amended; Propane Sale Agreement; and RGP Rail Purchase Agreement. Equistar will assume these agreements with Enterprise Products: PGP Term Sale Agreement; RGP Exchange Agreement; RGP Processing Agreement; and Isobutane Sales Agreement. In full and final satisfaction of all requirements under Section 365 of the Bankruptcy Code necessary for assumption of the Assumed Agreements, (i) Lyondell will pay Enterprise Products US$3,102,917, and (ii) Basell USA will pay Enterprise Products US$2,903,616. * Enterprise Products will pay US$4,717,549 to Equistar in full satisfaction of amounts owed by Enterprise Products to Equistar under various prepetition agreements. * Basell USA will sell the Splitter Assets to Enterprise Products for US$4,200,000 pursuant to the APA. The sale will be free and clear of all liens and encumbrances. * Enterprise Products and the Debtors have, in connection with the overall restructuring of their relationships, entered into several new ordinary course postpetition agreements that provide for, among other things, (i) the lease by Basell USA of Enterprise Products' 50% undivided interest in the eastern segment of the Lake Charles Pipeline; (ii) the operation and maintenance of that pipeline segment by Enterprise Products for and on behalf of Basell USA; (iii) the transport and exchange of PGP by Enterprise Products on behalf of Basell USA; and (iv) the sale and delivery of ethane and ethane/propane mix by Enterprise Products to Equistar. * Enterprise Products will extend the Debtors a line of credit for US$20 million that will cover transactions among the Parties under (i) the contracts being assumed; (ii) the new ordinary course postpetition agreements that will go into effect pursuant to the Agreement; and (iii) certain other ordinary course postpetition spot purchase and sale agreements the Parties entered into after the Petition Date. The Debtors acknowledge that payment obligations arising under these agreements for goods and services provided and for other actual costs and expenses incurred from and after the Petition Date are entitled to priority under Section 503(b) of the Bankruptcy Code. * In addition to the mutual releases provided under the Agreement, (i) Enterprise Products' Claim 7124 against Basell USA for US$3,305,913, (ii) Enterprise Products' Claim 7125 against Lyondell for US$3,304,606, (iii) Enterprise Products' reclamation claim against Basell USA for US$3,084,019, and (iv) Enterprise Products' reclamation claim against Equistar for US$2,510,521 will, subject to satisfaction of the conditions set forth in the Agreement, will be deemed disallowed and withdrawn, and deemed expunged from the claims register in the Debtors' bankruptcy cases without need for any further action by the Bankruptcy Court. Moreover, the Condensate Contract Rejection Claim will be allowed as a general unsecured claim against Equistar for US$3,000,000, which will be effectuated by fixing and allowing Claim 7126 against the bankruptcy estate of Equistar in the amount of the Condensate Contract Rejection Claim. Christopher R. Mirick, Esq., at Cadwalader, Wickersham & Taft LLP, in New York, noted that through the Agreement, the Debtors were able to obtain improved contract terms that will benefit them through advantaged pricing and substantial cost reductions that have an estimated net present value of US$54 million as well as obtaining an unsecured credit line of US$20 million. More importantly, by consensually resolving certain claims among the Parties, the Agreement allows the Debtors to avoiding the costs and risks of litigation, he said. 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) LYONDELL CHEMICAL: Proposes Pact with Gainesville-Oakwood --------------------------------------------------------- Lyondell Chemical Co. and its units ask the Court to authorize Debtor Millennium Holdings, LLC's entry into an agreement with Gainesville-Oakwood Properties, LLC, Chameleon Solutions, Inc., and U.S. Bank National Association. In May 1993, HM Holdings, Inc., and Allied Paper Incorporated executed an agreement pertaining to remediation of certain environmental contamination or pollution located at or emanating from the properties, including a plant at Gainesville, Georgia. In connection with the Environmental Agreement, Allied, HMH and Continental Bank National Association executed a Disbursement Agreement, whereby certain escrow funds and a Letter of Credit were transferred to Continental as Disbursement Agent. Millennium is successor to HMH, Gainesville-Oakwood to Allied and U.S. Bank to Continental under the Environmental Agreement and the Disbursement Agreement. In July 2006, Chameleon became a party to the Environmental Agreement and the Disbursement Agreement when it purchased a portion of the Property, which is not impacted by contamination and is not subject to remediation. Pursuant to the Environmental Agreement, Millennium submitted a Corrective Action Plan for remediation of the Property to the Georgia Department of Natural Resources, Environmental Protection Division. Millennium estimated the cost to implement the CAP at US$466,225, with Millennium's share of this cost estimated at US$340,344. The CAP was conditionally approved in August 2008. After the Petition Date, Millennium communicated to the parties to the Environmental Agreement and Disbursement Agreement that it would not continue to undertake or participate in implementation of the CAP or other remediation of the Property. To resolve all of Millennium's future financial obligations to Gainesville-Oakwood related to the Property, the parties executed the Agreement under which they agreed that: * Millennium and Gainesville-Oakwood will be released from any and all obligations under the Environmental Agreement with respect to the Property; and * Millennium and Gainesville-Oakwood jointly instructed U.S. Bank to (i) draw US$400,000 on a JP Morgan letter of credit established by Millennium pursuant to the Environmental Agreement; and (ii) deposit those funds into one or more interest bearing accounts at U.S. Bank to fund Millennium's share of implementing the CAP. Upon termination of the Environmental Agreement, any funds remaining from the JP Morgan draw proceeds will be delivered to Millennium. The Debtors assert that by entering into the Agreement, Millennium will avoid the time and expense of complying with its obligations under the Environmental Agreement, including implementation of the CAP and remediation of the Property. 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 =========== AVTOVAZ OAO: On the Verge of Bankruptcy Despite State Aid --------------------------------------------------------- Maria Plis at Reuters reports that Sergei Stepashin, the head of State Audit Chamber, said AvtoVAZ is on the brink of bankruptcy despite the allocation of huge funds. "Now the question is not in a review, it is in the fate. . .Its fate needs to be decided," Reuters quoted Stepashin, whose chamber reviews all companies which are recipients of state aid, as saying. As reported in the Troubled Company Reporter-Europe on Oct. 14, 2009, Bloomberg News said AvtoVAZ's net loss widened to RUR19.5 billion (US$659 million) from RUR2.15 billion in the first half of 2009 from RUR2.15 billion a year earlier. Bloomberg disclosed the carmaker's sales declined 46% to RUR53.1 billion. "The crisis in the financial sector of the Russian economy has negatively affected the automotive market," Bloomberg quoted AvtoVAZ as saying. Without continuing state aid this year and next, market conditions "create a material uncertainty that gives rise to significant doubt about the group's ability to continue as a going concern." According to Bloomberg, AvtoVAZis relying on the Russian government to help restructure RUR58.2 billion of short-term debt as of June 30. The state has already spent RUR25 billion to support AvtoVAZ, Bloomberg said. Based in Tolyatti, Russia, AVTOVAZ OAO (AVTOVAZ JSC) -- http://www.lada-auto.ru/-- is engaged in the manufacture of passenger cars. The Company's main brands are LADA PRIORA, LADA Kalina, LADA Samara, LADA 110 and others. The Company is also involved in the manufacture of automobile components, distribution of automobiles and spare parts and operation of automobile service centers. The Company is also active in a variety of other sectors, such as power supply, transportation, utilities, construction, insurance, banking and finance. AVTOVAZ OAO sells its products on the domestic market, as well as exports them to Kazakhstan, Ukraine, Azerbaijan, Armenia, Egypt, Syria, Greece, Belarus, Uruguay, Cyprus, Germany and others. It operates through one representative office located in Moscow, several subsidiaries and affiliated companies. DIOGANAL-STROY LLC: Creditors Must File Claims by October 25 ------------------------------------------------------------ Creditors of LLC Dioganal-Stroy (TIN 5902820804, PSRN 1045900080280) (Construction)have until October 25, 2009, to submit proofs of claims to: A. Kotelnikov Temporary Insolvency Manager Mira Str. 45a/305 614095 Perm Russia The Arbitration Court of Permskiy will convene at 10:20 a.m. on January 29, 2010, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?50�14433/2009. The Debtor can be reached at: LLC Dioganal-Stroy Krupskoy Str. 67 614077 Perm Russia ELEKTRIK LLC: Creditors Must File Claims by October 25 ------------------------------------------------------ Creditors of LLC Elektrik (Electrical Plant) (TIN 7802354487, PSRN 5067847010446) have until October 25, 2009, to submit proofs of claims to: V. Pristupa Temporary Insolvency Manager Litovskaya Str. 10 194100 Saint-Petersburg Russia The Arbitration Court of Saint-Petersburg will convene at 10:20 a.m. on March 4, 2010, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?56�50943/2009. The Court is located at: The Arbitration Court of Saint-Petersburg Courtroom 121 Suvorovskiy prospect 50/52 Saint-Petersburg Russia The Debtor can be reached at: LLC Elektrik Litovskaya Str. 10 194100 Saint-Petersburg Russia EVRAZ GROUP: S&P Assigns 'B+' Senior Unsecured Debt Rating ---------------------------------------------------------- Standard & Poor's Ratings Services said that it assigned its 'B+' local currency, senior unsecured debt rating to a proposed Russian ruble (RUR) 20 billion (approximately US$700 million) domestic bond to be issued by LLC Sibmetinvest, a subsidiary of Russia- based steel producer Evraz Group S.A. (B+/Watch Neg/--), which guarantees the bond. At the same time, the debt rating was placed on CreditWatch with negative implications. The recovery rating on this issue is '4', indicating S&P's expectation of average (30%- 50%) recovery for bondholders in the event of a payment default. The purpose of the issuance is to provide additional liquidity to support refinancing by Evraz. Sibmetinvest is an unrated wholly owned subsidiary of Evraz and is a Russian-incorporated finance holding company, with no operating activities of its own. Bondholders will be reliant on the guarantor to service and repay the debt. In S&P's view, bondholders will be in a structurally weaker position relative to debt issued by Evraz group operating subsidiaries and by the parent company. Nevertheless, S&P rate the bond at the same level as the corporate credit rating on Evraz and have assigned the same debt and recovery ratings as those on other rated debt within the group. In a default scenario, S&P believes the bond would rank pari passu with other unsecured and unsubordinated obligations of the guarantor, on the basis that the guarantee is effective. The bond will have a tenor of 10 years, with a put option after five years. The coupon payable will depend on market conditions at the time of issuance. There are no financial covenants. MOBILE TELESYSTEMS: Moody's Confirms 'Ba2' Corporate Family Rating ------------------------------------------------------------------ Moody's Investors Service has confirmed the Ba2 corporate family and senior unsecured ratings of Mobile Telesystems OJSC and the Ba3 corporate family rating of Comstar United Telesystems following the completion of the sale by their respective parent Sistema JFSC (B1, outlook negative) of Sistema's 50.91 percent stake in Comstar to MTS for a consideration of US$1.32 billion. The transaction is being financed by MTS through a 4 year loan facility from Sberbank. The outlook on the ratings is stable. The confirmation of the ratings follows Moody's assessment that notwithstanding the debt-financed nature of the transaction and the fact that Moody's does not expect Comstar to be distributing cash to MTS over the near to medium term, MTS liquidity and financial profile will be sufficiently strong on a stand-alone basis to accommodate the additional debt incurred to finance the transaction. While Moody's acknowledges that MTS' standalone proforma leverage on a Gross Debt to EBITDA basis (as adjusted by Moody's) will initially exceed the guideline set for the current rating category of 2.0x, Moody's anticipates that free cash flow and availability liquidity post acquisition will enable the company to very quickly reduce leverage into a range comfortably within the guidance. With respect to Comstar, the decision to confirm the ratings reflects the expectation that there will be few changes to Comstar's stand-alone profile and financial policies as a result of the transfer of ownership from Sistema to MTS. Nevertheless, while noting that the companies are likely to remain separate legal entities in the near to medium term limiting to a large extent the cost synergies that might otherwise have been generated from a full merger, Moody's does recognize that benefits should accrue to the companies from joint marketing initiatives, particularly on the broadband front. The last rating action on MTS and Comstar was on 6 August 2009 when Moody's placed MTS' and Comstar's ratings on review for possible downgrade following the announcement of an agreement by Sistema JFSC (B1, negative), the parent company of both issuers, to the acquisition by MTS of Sistema's 50.91 percent stake in Comstar for an estimated consideration of US$1.272 billion. The review was to focus on the implications of the debt funded acquisition on the two companies' stand-alone financial profiles as well as the implications from a debt capital structure and liquidity perspective of the funding to be arranged by MTS to finance the transaction. Open Joint Stock Company Mobile TeleSystems is the largest wireless telecommunication operator in Russia with US$10.2 billion in revenues and US$5.1 billion in reported EBITDA as at 31 December 2008. 77% of total revenue is derived from the core Russian operations, 16% from the Ukraine, 4% from Uzbekistan, 1% from Turkmenistan, and 2% from Armenia (consolidated from Q3 2007). Open Joint Stock Company Comstar - United TeleSystems is one of the largest providers of fixed-line communications to operators and corporate and residential customers in the Moscow metropolitan area and other regions of Russia, Ukraine and Armenia. Comstar reported US$1.65 billion in revenues and US$689.5 million in OIBDA in 2008, representing 10% growth year-on-year and a 41.8% OIBDA margin. The company reported Q1 2009 revenue of US$334 million and OIBDA of US$126 million. RESHOTINSKYA CHEMICAL: Creditors Must File Claims by October 25 --------------------------------------------------------------- Creditors of LLC Reshotinskaya Chemical Company (TIN 2428003970, PSRN 1052415000758) have until October 25, 2009, to submit proofs of claims to: A. Nesterov Temporary Insolvency Manager Post User Box 20647 660017 Krasnoyarsk Russia The Arbitration Court of Krasnoyarskiy will convene at 9:00 a.m. on December 8, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?33�3937/2009. The Court is located at: The Arbitration Court of Krasnoyarskiy Lenina Str. 143 660021 Krasnoyarsk Russia The Debtor can be reached at: LLC Reshotinskaya Chemical Company Sovetskaya Str. 1 Kanifolnyy Nizhneingashskiy 663845 Krasnoyarskiy Russia SAFONOVSKIY ELECTRO: Creditors Must File Claims by October 25 ------------------------------------------------------------- Creditors of OJSC Safonovskiy Electro-Mechanical Plant (TIN 6726001750, PSRN 1026700945105) have until October 25, 2009, to submit proofs of claims to: A. Povolotskiy Temporary Insolvency Manager Building 15 Nizhegorodskaya Str. 32 109029 Moscow Russia The Arbitration Court of Smolenskaya will convene at 11:00 a.m. on February 18, 2010, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?62�5097/2009. The Debtor can be reached at: OJSC Safonovskiy Electro-Mechanical Plant Stroiteley Str. 25 Safonovo 215500 Smolenskaya Russia SERPUKHOVSKIY MECHANICAL: Creditors Must File Claims by October 25 ------------------------------------------------------------------ Creditors of LLC Serpukhovskiy Mechanical and Experimental Plant (TIN 5043024414, RVC 504301001, PSRN 1045008752601) have until October 25, 2009, to submit proofs of claims to: N. Gorbunov Temporary Insolvency Manager Post User Box 101 119313 Moscow Russia The Arbitration Court of Moskovskaya will convene at 10:45 a.m. on January 25, 2010, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?41�24017/09. The Debtor can be reached at: LLC Serpukhovskiy Mechanical and Experimental Plant Ivanovskiy Dvoriki 2 Serpukhov 142200 Moskovskaya Russia SITI-STROY LLC: Creditors Must File Claims by October 25 -------------------------------------------------------- Creditors of LLC Siti-Stroy (TIN 5407029517, PSRN 1075407010403) (Construction) have until October 25, 2009, to submit proofs of claims to: V. Chayka Insolvency Manager Post User Box 4196 634061 Tomsk Russia The Arbitration Court of Tomskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?67�1682/09. The Debtor can be reached at: LLC Siti-Stroy Prospect Lenina 190 Tomsk Russia SOUTH STEEL: Creditors Must File Claims by October 25 ----------------------------------------------------- Creditors of CJSC South Steel Company (TIN 6154092274) have until October 25, 2009, to submit proofs of claims to: N. Lemaev Temporary Insolvency Manager Office 504 Oborony Str. 24 344082 Rostov-on-Don Russia The Arbitration Court of Rostovskaya will convene at 10:30 a.m. on February 2, 2010, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?53�17002/09. The Debtor can be reached at: CJSC South Steel Company Aleksandrovskaya Str. 71/15 Taganrog 347900 Rostovskaya Russia TRUBOSTAL OJSC: Creditors Must File Claims by October 25 -------------------------------------------------------- Creditors of OJSC Trubostal(Pipe Plant) (TIN 7811038294, PSRN 1027806063020) have until October 25, 2009, to submit proofs of claims to: A.Kostyunin Insolvency Manager Post User Box 36 127434 Moscow Russia The Arbitration Court of Moscow commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?56�59587/2009. The Debtor can be reached at: OJSC Trubostal Zheleznodorozhnyy Str. 16 193171 Saint-Petersburg Russia VIMPEL-COMMUNICATION: Moody's Changes Outlook on 'Ba2' Rating ------------------------------------------------------------- Moody's Investors Service has changed the outlook on the Ba2 corporate family and debt ratings of Open Joint Stock Company Vimpel-Communication to stable from negative. The stabilization of the outlook reflects primarily Vimpelcom's strengthened liquidity profile relative to Moody's earlier concerns (stemming from the company's foreign currency debt obligation exposure to rouble devaluation) supported further by generally stable year-to- date operating performance relative to Moody's earlier expectations. Moody's note in particular VimpelCom's successful efforts at refinancing and rebalancing its debt portfolio in favour of local currency-denominated debt instruments over the past 6 months reducing in the process its exposure to rouble currency volatility as well as the steps taken to improve free cash flow through the re-scaling of its capex program and the restraint shown on the shareholder distribution and investment front in the first 9 months of 2009. Moody's also note that the relatively benign macroeconomic environment, including the apparent reversal of the previous trend of rouble depreciation, has been favorable for the company's financial metrics, in particular leverage measured as adjusted debt/Ebitda and cash flow coverage in the first six months of 2009. Moreover, the recently announced settlement of the long- standing dispute between its shareholders Alfa and Telenor (A3, stable) effectively remove the questions that had existed over how a resolution might impact the company paving the way for more constructive shareholder interaction over strategic issues in the future. Moody's previous rating action on VimpelCom was on April 2, 2009 when the rating agency changed the outlook to negative from positive reflecting Moody's concerns over VimpelCom's weaker financial profile which had developed over the course of 2008 as a result of a significant increase in leverage following the acquisition of Golden Telecom and then aggravated by the subsequent rouble devaluation resulting in foreign exchange losses and increased foreign currency debt service costs given the high proportion of foreign currency denominated debt that existed at the time in the company's capital structure. In rating this issuer, Moody's has applied its rating methodology for the global telecoms industry, which sets out how it analyzes the credit risk of telecoms companies and derives their ratings. VimpelCom is the second-largest Russian provider of mobile telecommunications services, under the "Beeline" brand. For the six months ended June 30, 2009, the company generated US$4.1 billion in revenue with reported operating income before depreciation and amortization margin reaching 50.6% in the second quarter of 2009. ===================== S W I T Z E R L A N D ===================== ATIMON AG: Claims Filing Deadline is October 21 ----------------------------------------------- Creditors of Atimon AG are requested to file their proofs of claim by October 21, 2009, to: Klara Brenner Huebweg 7 5426 Lengnau Switzerland The company is currently undergoing liquidation in Lengnau AG. The decision about liquidation was accepted at an extraordinary general meeting held on August 24, 2009. AVIVA-NET: Claims Filing Deadline is October 19 ----------------------------------------------- Creditors of aviva-net GMBH are requested to file their proofs of claim by October 19, 2009, to: BB Berweger Buchhaltungen Schlossrain 10 8335 Hittnau Switzerland The company is currently undergoing liquidation in Hittnau. The decision about liquidation was accepted at an extraordinary general meeting held on June 23, 2009. BRUNO A. MOCK: Claims Filing Deadline is October 19 --------------------------------------------------- Creditors of Bruno A. Mock AG are requested to file their proofs of claim by October 19, 2009, to: Bruno A. Mock, liquidator Achereggstrasse 7 6362 Stansstad Switzerland The company is currently undergoing liquidation in Hergiswil. The decision about liquidation was accepted at an extraordinary general meeting held on September 2, 2009. CONFLOR AG: Claims Filing Deadline is October 21 ------------------------------------------------ Creditors of Conflor AG are requested to file their proofs of claim by October 21, 2009, to: Treyer Treuhand AG Lautengartenstr. 14 4052 Basel Switzerland The company is currently undergoing liquidation in Basel. The decision about liquidation was accepted at an extraordinary general meeting held on August 25, 2009. COMLUX GMBH: Claims Filing Deadline is October 21 ------------------------------------------------- Creditors of Comlux GmbH are requested to file their proofs of claim by October 21, 2009, to: Bruno Armando Steiner Hegarstrasse 16 8032 Zurich Switzerland The company is currently undergoing liquidation in Zurich. The decision about liquidation was accepted at an extraordinary general meeting held on July 13, 2009. CORE BUSINESS: Claims Filing Deadline is October 21 --------------------------------------------------- Creditors of Core Business Services AG are requested to file their proofs of claim by October 21, 2009, to: Robert Cotton Liquidator Rotackerstrasse 18 8304 Wallisellen Switzerland The company is currently undergoing liquidation in Wallisellen. The decision about liquidation was accepted at an extraordinary general meeting held on August 20, 2009. DOOFO HOLDING: Claims Filing Deadline is October 21 --------------------------------------------------- Creditors of Doofo Holding AG are requested to file their proofs of claim by October 21, 2009, to: B&P tax and legal AG Liquidator Talstrasse 82 8022 Zurich Switzerland The company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at an extraordinary general meeting held on June 17, 2009. EASYDIALOG GMBH: Claims Filing Deadline is October 21 ----------------------------------------------------- Creditors of easydialog GmbH are requested to file their proofs of claim by October 21, 2009, to: Imsand Christoph Gliserallee 1 3902 Brig-Glis Switzerland The company is currently undergoing liquidation in Baar. The decision about liquidation was accepted at a shareholders' meeting held on July 24, 2009. MED-ART GMBH: Claims Filing Deadline is October 21 -------------------------------------------------- Creditors of Med-art GmbH are requested to file their proofs of claim by October 21, 2009, to: Boschung Martin Liquidator Aarestrasse 22 3052 Zollikofen Switzerland The company is currently undergoing liquidation in Greng. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on August 13, 2009. NIWITA TREUHAND: Claims Filing Deadline is October 19 ----------------------------------------------------- Creditors of Niwita Treuhand AG are requested to file their proofs of claim by October 19, 2009, to: Stefan Knuesel, liquidator Sonnhaldenstrasse 13 6052 Hergiswil Switzerland The company is currently undergoing liquidation in Hergiswil. The decision about liquidation was accepted at an extraordinary general meeting held on August 4, 2009. PROMOTECH INTERLAKEN: Claims Filing Deadline is October 21 ---------------------------------------------------------- Creditors of Promotech GmbH Interlaken are requested to file their proofs of claim by October 21, 2009, to: Inter-Treuhand AG Postgasse 12 3800 Interlaken Switzerland The company is currently undergoing liquidation in Interlaken. The decision about liquidation was accepted at a shareholders' meeting held on August 18, 2009. REAL BETEILIGUNGS: Claims Filing Deadline is October 21 ---------------------------------------------------------- Creditors of Real Beteiligungs AG are requested to file their proofs of claim by October 21, 2009, to: lic.iur. H. Schroeder Wengistrasse 7 8026 Zurich Switzerland The company is currently undergoing liquidation in Glarus. The decision about liquidation was accepted at an extraordinary general meeting held on September 1, 2009. SNACK BECK: Claims Filing Deadline is October 19 ------------------------------------------------ Creditors of Snack Beck GmbH are requested to file their proofs of claim by October 19, 2009, to: Edwin Schelbert Obertor 9A 8402 Winterthur Switzerland The company is currently undergoing liquidation in Winterthur. The decision about liquidation was accepted at a shareholders' meeting held on June 26, 2009. ============= U K R A I N E ============= BUDIMPEKSSERVICE LLC: Creditors Must File Claims by October 21 -------------------------------------------------------------- Creditors of LLC Building Company Budimpeksservice (code EDRPOU 34937574) have until October 21, 2009, to submit proofs of claim to: LLC Boat-Building Company Dal Insolvency Manager Trekhsviatitelskaya Str. 4-b 01001 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company on September 7, 2009. The case is docketed under Case No. 44/523-B. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy Str. 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Building Company Budimpeksservice Office 43 M. Grushevsky Str. 28/2 01021 Kiev Ukraine ECONIKBUILD SOUTH: Creditors Must File Claims by October 21 ----------------------------------------------------------- Creditors of LLC Econikbuild South (code EDRPOU 35988771) have until October 21, 2009, to submit proofs of claim to: V. Cherepenko Insolvency Manager Moscow Str. 54-a 54017 Nikolayev Ukraine The Economic Court of Nikolayev commenced bankruptcy proceedings against the company on September 8, 2009. The case is docketed under Case No. 18/93/09. The Court is located at: The Economic Court of Nikolayev Admiralskaya str. 22-a 54009 Nikolayev Ukraine The Debtor can be reached at: LLC Econikbuild South Office 33 Lenin Ave. 189 54008 Nikolayev Ukraine INVESTCITY-LTD LLC: Creditors Must File Claims by October 21 ------------------------------------------------------------ Creditors of LLC Investcity-Ltd (code EDRPOU 35057621) have until October 21, 2009, to submit proofs of claim to: LLC Profitinvest Insolvency Manager Melnikov Str. 12 04050 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company on August 27, 2009. The case is docketed under Case No. 28/314-B. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy Str. 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Investcity-Ltd Citadelnaya Str. 6/8 01015 Kiev Ukraine KMP LLC: Creditors Must File Claims by October 21 ---------------------------------------------------- Creditors of LLC KMP (code EDRPOU 30803272) have until October 21, 2009, to submit proofs of claim to: V. Sovetov Insolvency Manager Office 11 K. Marks Str. 59 Ilyintsy Vinnitsa Ukraine The Economic Court of Vinnitsa region commenced bankruptcy proceedings against the company on August 31, 2009. The case is docketed under Case No. 10/134-09. The Court is located at: The Economic Court of Vinnitsa Hmelnitsky Highway 7 21100 Vinnitsa Ukraine The Debtor can be reached at: LLC KMP B. Hmelnitsky Str. 10 Ilyintsy 22700 Vinnitsa Ukraine MINERAL-AGRO LLC: Creditors Must File Claims by October 21 ---------------------------------------------------------- Creditors of LLC Mineral-Agro (code EDRPOU 35429701) have until October 21, 2009, to submit proofs of claim to: LLC Profitinvest Insolvency Manager Melnikov Str. 12 04050 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company on September 7, 2009. The case is docketed under Case No. 44/522-B. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy Str. 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Mineral-Agro Citadelnaya Str. 6/8 01015 Kiev Ukraine NAFALAN AND CO: Creditors Must File Claims by October 21 -------------------------------------------------------- Creditors of LLC Nafalan and Co (code EDRPOU 36099704) have until October 21, 2009, to submit proofs of claim to: V. Cherepenko Insolvency Manager Moscow Str. 54-a 54017 Nikolayev Ukraine The Economic Court of Nikolayev commenced bankruptcy proceedings against the company on September 8, 2009. The case is docketed under Case No. 18/94/09. The Court is located at: The Economic Court of Nikolayev Admiralskaya Str. 22-a 54009 Nikolayev Ukraine The Debtor can be reached at: LLC Nafalan and Co Office 48 Heroes of Stalingrad Ave. 13 54025 Nikolayev Ukraine OPTIMAKS UKRAINE: Creditors Must File Claims by October 21 ---------------------------------------------------------- Creditors of LLC Optimaks Ukraine (code EDRPOU 36143119) have until October 21, 2009, to submit proofs of claim to: V. Cherepenko Insolvency Manager Moscow Str. 54-a 54017 Nikolayev Ukraine The Economic Court of Nikolayev commenced bankruptcy proceedings against the company on September 8, 2009. The case is docketed under Case No. 18/95/09. The Court is located at: The Economic Court of Nikolayev Admiralskaya Str. 22-a 54009 Nikolayev Ukraine The Debtor can be reached at: LLC Optimaks Ukraine Office 48 Heroes of Stalingrad Ave. 33 54025 Nikolayev Ukraine VIKMON LLC: Creditors Must File Claims by October 21 ---------------------------------------------------- Creditors of LLC Building Company Vikmon (code EDRPOU 35922600) have until October 21, 2009, to submit proofs of claim to: LLC Boat-Building Company Dal Insolvency Manager Trekhsviatitelskaya Str. 4-b 01001 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company on August 27, 2009. The case is docketed under Case No. 28/315-B. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy Str. 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Building Company Vikmon Citadelnaya Str. 6/8 01015 Kiev Ukraine VO METALRESOURCE: Creditors Must File Claims by October 21 ---------------------------------------------------------- Creditors of LLC VO Metalresource (code EDRPOU 31161290) have until October 21, 2009, to submit proofs of claim to: N. Nikitenko Insolvency Manager Post Office Box 411 69037 Zaporozhye Ukraine The Economic Court of Zaporozhye commenced bankruptcy proceedings against the company on August 20, 2009. The case is docketed under Case No. 19/301/08-26/105/09. The Court is located at: The Economic Court of Zaporozhye Shaumian Str. 4 69600 Zaporozhye Ukraine The Debtor can be reached at: LLC VO Metalresource Pivnichne Highway 69-B 69006 Zaporozhye Ukraine * UKRAINE: Fitch Affirms Issuer Default Ratings at 'B' ------------------------------------------------------ Fitch Ratings has affirmed Ukraine's Long-term foreign and local currency Issuer Default Ratings at 'B' with Negative Outlooks. The Short-term foreign currency IDR and Country Ceiling rating are affirmed at 'B'. "Ukraine's IMF program is at serious risk of going off-track at the next review in November, mainly because policy discipline has eroded even further, risking a delay in disbursement of the next IMF loan tranche," said Andrew Colquhoun, Director in Fitch's Sovereigns Group. "Interruption to the program risks undermining fragile confidence in the currency and the banking system, which in turn could add to pressure for a rating downgrade." Ukraine's government has effectively abandoned policy commitments made at the time of the second IMF review in July 2009, including a hike of retail gas tariffs intended to trim the budget deficit to 6% of GDP in 2009, or 8.6% including the deficit of state energy company Naftogaz NJSC (rated 'Restricted Default' / Rating Watch Evolving). Fitch projects the deficit at 8.5%, or 11.1% after consolidating Naftogaz. Corrective action is unlikely ahead of presidential elections in 2010 in which the current Prime Minister, Yulia Tymoshenko, will be a main contender. Ukraine could find it difficult to finance a deficit on this scale if the IMF and other IFI funds are not forthcoming, without resorting more heavily to monetary financing. Effectively printing money would in turn increase the risks to the stability of the exchange rate and broader economy. Ukraine's macroeconomic policy framework is inconsistent as the authorities are aiming to defend the exchange rate while avoiding necessary fiscal tightening. Ukraine's gross official reserves of US$28.1bn as of end-September 2009 were down 11% from the end-2008 figure of US$31.5 billion, despite US$6.1 billion over the year in disbursements under the IMF program. The central bank has spent US$9.5 billion in currency interventions over January-September 2009. Fitch is concerned that a delay to the next IMF loan tranche could undermine fragile confidence in the currency, the hryvnia, and spark another bout of financial instability. A further sharp depreciation in the hryvnia would intensify pressure on Ukraine's crisis-hit banking system. The non- performing loan ratio hit 30% at end-June 2009 according to the IMF, significantly affected by an 18% contraction in Q209 GDP (year-on-year) and by the hryvnia's 60% depreciation since the onset of the crisis in September 2008 (impacting the 54% of loans denominated in foreign currency). Signs of renewed stress in the financial system, such as a sharp drop in the hryvnia and/or deposit flight, would add to pressure for a downgrade. Despite this challenging backdrop, Ukraine repaid maturing sovereign eurobonds worth US$1.2bn in August and September 2009, demonstrating a willingness to service its debts. Ukraine now has a gap in eurobond maturities until a yen-denominated bond for about US$0.4 billion falls due in December 2010. The global and regional macroeconomic outlooks are showing some signs of improvement, supporting the prospects for Ukraine's export industries. Rollover rates on private-sector external debt have been relatively high at about 89% for banks and 80% for corporates. Ukraine's ratings remain supported by low general government gross debt; the ratio to GDP is projected to rise to 23% by end-2009 from 14% at end-2008, but this would remain below the projected 2009 'B' rating median of 29%. The country's ratings are also supported by still relatively average high incomes for the 'B' range, projected at US$2,400 for 2009 against the 'B' median of US$1,800, although World Bank business-climate indicators are below peer medians. =========================== U N I T E D K I N G D O M =========================== BAA: Group Wide Traffic Down 2.6% in September 2009 --------------------------------------------------- BAA reported traffic statistics figures for September 2009. Heathrow Airport's passenger traffic remained stable in the month, showing a marginal decrease of 0.3% on September 2008. A 5% drop in aircraft movements and significantly improved capacity utilization led to a sharp increase in load factor from 73.9% in September 2008 to 78.2% this September. BAA's seven UK airports handled a total of 13.0 million passengers in September, 2.6% down on last year and a similar year on year result to that achieved in July and August. In March this year, traffic across the UK airports was down 11.3%, so recent figures suggest that while underlying market conditions remain soft, there are some signs of a recovery. Gatwick Airport's passenger numbers were encouraging. While overall numbers were down by 0.5% in September -- the best year on year result since May 2008 -- the airport recorded strong growth in important domestic and European scheduled markets (+5.8% and +8.7% respectively). Excluding North American traffic, which continues to be affected by the Open Skies agreement leading US airlines to relocate to Heathrow, passenger numbers grew 1.5% and the year on year effect of Open Skies will moderate significantly from October. An 11% reduction in seat capacity flown at Stansted was matched by an almost identical decrease in passengers of 11.6%. Edinburgh Airport�s numbers grew for the sixth successive month (+3.8%), largely down to new low-cost scheduled European services. Glasgow Airport declined 8.9% and Aberdeen by 5.3%, both showing slower rates of decline. Southampton recorded a 4.6% drop. Colin Matthews, BAA's chief executive, said: "Conditions remain challenging for the industry. Heathrow continues to perform well in its market, delivering strong long-haul performance on routes to India and the Middle East. "At Gatwick there are encouraging signs of growth, particularly in the European scheduled business and the overall numbers around the group appear to be improving." For the Group as a whole in September all major market areas recorded decreases with the exception of long-haul markets such as India (+15.7%), the Middle East (+18%) and South America (+33%). The number of air transport movements at BAA's airports fell by 6.1% in September and cargo tonnage (-6.3%) dropped by a similar amount. Although still weak, the cargo result was the best recorded since November 2008. "Special Administration" Regime On June 12, 2009, the Troubled Company Reporter-Europe, citing The Daily Telegraph, reported that BAA's bondholders proposed two alternatives to the UK government's controversial plans to force a "special administration regime". The bondholders' first alternative was to impose a license obligation that compels the debt holders to continue to operate the airports. The second was for special administration to trigger a "pre-agreed exchange offer" whereby existing debts are replaced by government- guaranteed loans in the new BAA. According to the Daily Telegraph, the holders of GBP4.85 billion of bonds would demand a "consent fee" that would apply to the owners of all the GBP9.6 billion of senior debt secured against Heathrow, Gatwick and Stansted airports. The bondholders warned that introducing a special administration regime could lead to the insolvency of BAA. BAA -- http://www.baa.co.uk/-- owns and manages seven airports in the UK, including London's Heathrow, Gatwick, and Stansted. The company oversees functions such as cargo handling, fire protection, property management, retail operations (including its own World Duty Free stores), and security. In addition, it runs the Heathrow Express rail service to London and works with other mass transit operators. Outside the UK, BAA has a 65% stake in the Naples International Airport in Italy and manages the retail operations at three US airports in Pittsburgh, Baltimore, and Boston. A group led by Spanish infrastructure manager Ferrovial acquired BAA in 2006 for more than GBP10 billion in stock. BRITISH AIRWAYS: September 2009 Traffic Down 0.8% ------------------------------------------------- British Airways plc reported traffic and capacity statistics for September 2009. In September 2009, passenger capacity, measured in Available-Seat- Kilometers, was 3.7% below September 2008. Traffic, measured in Revenue-Passenger-Kilometers, fell by 0.8%. This resulted in a passenger load factor increase of 2.4 points versus last year, to 81.3%. Traffic comprised a 7.9% decrease in premium traffic and a 0.7% increase in non-premium traffic. Premium traffic comparisons are starting to be against a weaker base, with the bankruptcy of Lehman Brothers occurring mid-way through September 2008. Cargo, measured in Cargo-Ton-Kilometers, fell by 2.6%. Market Conditions Market conditions remain unchanged with yields under pressure from the year on year impact of lower fuel surcharges, exchange movements and mix. Strategic Developments British Airways launched the first ever longhaul flight from London City airport, an exclusive, all-business service to New York on a 32-seater Airbus A318. Customers on the new service will be the first to be able to send emails, texts and use the internet on transatlantic flights via an in-flight mobile communications service. London City airport also saw the introduction of the first aircraft of BA CityFlyer's new fleet of Embraer efficiency jets. More than 50% of flights departed early as the airline recorded its best ever September punctuality performance. The month was also the most punctual since January 1994 with more than 87% of flights departing early or on time. British Airways scooped three top accolades at the Business Traveller Awards 2009 winning Best Airline, Best Shorthaul Carrier and Best Frequent Flyer Programme. This month it was also named Best Business Class airline by readers of Conde Nast Traveller magazine. About British Airways Headquartered in Harmondsworth, England, British Airways Plc, along with its subsidiaries, (LON:BAY) -- http://www.ba.com/-- is engaged in the operation of international and domestic scheduled air services for the carriage of passengers, freight and mail and the provision of ancillary services. The Company's principal place of business is Heathrow. It also operates a worldwide air cargo business, in conjunction with its scheduled passenger services. The Company operates international scheduled airline route networks together with its codeshare and franchise partners, and flies to more than 300 destinations worldwide. During the fiscal year ended March 31, 2009 (fiscal 2009), the Company carried more than 33 million passengers. It carried 777,000 tons of cargo to destinations in Europe, the Americas and throughout the world. In July 2008, the Company's subsidiary, BA European Limited (trading as OpenSkies), acquired the French airline, L'Avion. * * * As reported in the Troubled Company Reporter-Europe on July 13, 2009, Moody's Investors Service lowered the Corporate Family and Probability of Default Ratings of British Airways plc to Ba3; the senior unsecured and subordinate ratings were lowered to B1 and B2, respectively. Moody's said the outlook is stable. DEFINED RETURNS: Enters Administration on Lehman-Related Claims --------------------------------------------------------------- Caroline Binham at Bloomberg News reports that the Financial Services Authority said NDF Administration Ltd. and Defined Returns Ltd., both based in St. Albans, England, entered administration on Wednesday. According to Bloomberg, the regulator said the decision came after an investigation into whether firms improperly sold structured products to customers. Bloomberg relates the FSA said the two firms' 3,700 customers with Lehman-backed products must apply to the Financial Services compensation Scheme, Britain's deposit-guarantee program, for a maximum of 48,000 pounds reimbursement. "The decision to put the company into administration follows the recognition of large potential contingent liabilities within the companies," Bloomberg quoted Grant Thornton U.K., the company's administrator, as saying in a statement. "The insolvency of Lehman Brothers has left NDFA and DRL open to potential claims from customers." FREEDOM SIPP: Court Orders Liquidation Over Non-Payment of Taxes ---------------------------------------------------------------- Caroline Binham at Bloomberg News reports that the Financial Services Authority said in a statement the Freedom SIPP Ltd., which operated a pension plan of the same name, was put under court-ordered liquidation sought by the U.K. Treasury�s tax department, known as HMRC. "The FSA will continue to liaise with HMRC and the liquidator," Bloomberg quoted the FSA as saying in a statement. "Members will still be able to request a transfer of their investments to another SIPP scheme." JOOST TECHNOLOGIES: U.K. Arm Put Into Liquidation ------------------------------------------------- Maija Palmer at The Financial Times reports the U.K. arm of Joost Technologies B.V. was put into liquidation this month after failing to find a buyer. According to the FT, the company failed to strike crucial deals with large media companies. Rod Reekin at David Ruben & Partners, the liquidators, said Joost retained a skeleton staff in London, the FT discloses. The FT recalls on October 2, the directors called for the U.K. operations to be wound up. Joost Technologies B.V. -- http://www.joost.com/-- focuses on providing online video platforms for media companies, targeting cable and satellite providers, broadcasters, and video aggregators. Formerly a Web site for consumers to access nearly 60,000 television shows, movies, and music videos, in 2009 Joost restructured after losing its licensing agreement with Sony Pictures. It continues to operate Joost.com as a video site. Joost has offices in London and New York. The company was founded in 2006 by Skype co-founders Niklas Zennstrom and Janus Friis, who are also investors in Joost. NATIONAL EXPRESS: Consortium Set to Withdraw Takeover Offer ----------------------------------------------------------- Lina Saigol and Gill Plimmer at The Financial Times report that the Spanish-led consortium bidding for National Express Group plc is set to withdraw its GBP765 million takeover offer for the company. The FT relates CVC, the private equity firm, and the Cosmen family, which owns an 18.5% stake, had been due to finish due diligence by 5:00 p.m. today, Oct. 16, before making a formal offer for National Express. According to the FT, the consortium is understood to have had concerns over the terms of the refinancing of National Express�s borrowings, including a GBP490 million loan maturing in September next year. National Express is now expected to press ahead with a GBP350 million rights issue which several shareholders are willing to support, the FT says. As reported in the Troubled Company Reporter-Europe on Sept. 15, 2009, the consortium raised its indicative cash offer for National Express to 500p a share from the 450p offer the group's board had rejected. Going Concern On Aug. 4, 2009, the Troubled Company Reporter-Europe, citing Telegraph.co.uk, said National Express made a pre-tax loss of GBP48.1 million in the first six months of 2009, down from a profit of GBP52.4 million last year, after taking a GBP54.7 million hit from its forced exit from the East Coast mainline franchise, which is being taken back into government hands. According Telegraph.co.uk, the accounts declared that while the directors are confident of renegotiating covenant obligations with lenders, "covenant compliance remains dependent on actions which are yet to be delivered". In light of this the accounts warned that "underlying implementation risks represent a material uncertainty that may cast significant doubt upon the group's ability to continue as a going concern". National Express Group PLC -- http://www.nationalexpressgroup.com/ -- is the holding company of the National Express Group of companies. Its subsidiary companies provide mass passenger transport services in the United Kingdom and overseas. The Company's segments comprise: UK Bus; UK Coach; UK Trains; North American Bus; European Coach and Bus, and Central functions. Its subsidiaries include Tayside Public Transport Co. Limited, Durham School Services LP, Stock Transportation Limited, Dabliu Consulting SLU, Tury Express SA, General Tecnica Industrial SLU and Continental Auto SLU. In June 2009, the Company announced the completion of the sale of Travel London, its London bus business, to NedRailways Limited, a subsidiary of NS Dutch Railways. NDF ADMINISTRATION: Enters Administration on Lehman-Related Claims ------------------------------------------------------------------ Caroline Binham at Bloomberg News reports that the Financial Services Authority said NDF Administration Ltd. and Defined Returns Ltd., both based in St. Albans, England, entered administration on Wednesday. According to Bloomberg, the regulator said the decision came after an investigation into whether firms improperly sold structured products to customers. Bloomberg relates the FSA said the two firms' 3,700 customers with Lehman-backed products must apply to the Financial Services compensation Scheme, Britain's deposit-guarantee program, for a maximum of 48,000 pounds reimbursement. "The decision to put the company into administration follows the recognition of large potential contingent liabilities within the companies," Bloomberg quoted Grant Thornton U.K., the company's administrator, as saying in a statement. "The insolvency of Lehman Brothers has left NDFA and DRL open to potential claims from customers." =============== X X X X X X X X =============== * BOOK REVIEW: Corporate Financial Distress and Bankruptcy - Predict and Avoid Bankruptcy, Analyze and Invest in Distressed Debt, Third Edition ------------------------------------------------------------------ Authors: Edward I. Altman and Edith Hotchkiss Publisher: John Wiley & Sons, Inc. Hardcover: 368 pages List Price: US$95.00 Review by Henry Berry In the two previous editions, published in 1983 and 1993, Mr. Altman (joined by coauthor Ms. Hotchkiss for this third edition) noted that "the number of professionals dealing with the uniqueness of corporate death in this country was increasing so much that it could have perhaps been called a 'bankrupt industry'." By the 2005 date of this third edition, the number of professionals had grown so large that there was no longer any reason to question the author's remark that "the bankruptcy business is big business." One indication is the large number of varied professionals involved with bankruptcies -- estimated to be 40,000, most of whom are located in the United States, although the number outside this country is increasing rapidly. Among the professionals in this industry are turnaround managers, bankruptcy and restructuring lawyers, bankers, financial advisers, distressed debt investors, and researchers. In recent years, the field has attracted even more interest because of a number of high-profile bankruptcies involving great amounts of money. In the period 2001-2003, 100 U.S. companies with liabilities greater than $1 billion filed for protection under Chapter 11. These bankruptcies received much attention in the business media, and many were given much coverage in the mainstream media, as well. The book contains material of interest to professionals on both sides of bankruptcies. Financial officers and other corporate employees will be particularly interested in the tools used to determine the relative financial strength, vulnerabilities, or failures of a business. One such tool is the "Expected Default Frequency (EDF) Model." This model is exemplified by the "Moody's/KMV EDF Model" chart. The authors discuss the EDF Model and demonstrate its application in the section entitled "The Enron Example: Models Versus Ratings." The authors similarly address other technical issues of corporate financial distress, offering commentary, visual references such as charts and graphs, and real- life examples. The charts and graphs are especially helpful to financial analysts, turnaround consultants, and others who have a need to get a preliminary reading of corporate financial health. As for the other side of corporate bankruptcies, Mr. Altman and Ms. Hotchkiss offer expert analysis on investing in "distressed securities," restructuring of distressed firms for turnarounds, and underlying costs of bankruptcy. In sum, this book covers financial distress from early warning signs through improved financial performance, including the possibility of restructuring, to selling off surviving assets as a last-ditch effort to retrieve cash. The scope and depth of this book make it an exemplary resource for bankruptcy professionals. The Max L. Heine Professor of Finance at the Stern School of Business at New York University, Edward I. Altman is former director of research in fixed income and credit markets at the University's Salomon Center and former chair of its MBA program. Edith Hotchkiss is an associate professor in finance at Boston College and author of many articles in professional financial and business journals. ********* 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 * * *