/raid1/www/Hosts/bankrupt/TCREUR_Public/091029.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
E U R O P E
Thursday, October 29, 2009, Vol. 10, No. 214
Headlines
A U S T R I A
MR. PAPER: Claims Filing Deadline is November 12
A Z E R B A I J A N
INTERNATIONAL INSURANCE: Moody's Assigns 'B2' Insurance Rating
B U L G A R I A
CENTRAL EUROPEAN: 3Q Net Revenues Drop 33% to US$134.5 Million
F R A N C E
CMA-CGM SA: Vincent Bollore Wants to Buy Back Delmas-Vieljeux Unit
WINDERMERE XIV: Fitch Junks Ratings on Two Classes of Notes
G E R M A N Y
DEUTSCHE APOTHEKER: Moody's Downgrades Bank Strength Rating to 'D'
SUNRISE SENIOR: Enters Into Restructuring Agreements with Lenders
TS CO.MIT: Moody's Junks Rating on EUR6.3MM Class F Notes
TUI AG: To Sell EUR250 Mln Convertible Bonds
G R E E C E
WIND HELLAS: Owner to Pick Preferred Bidder Next Week
I C E L A N D
CENTURY ALUMINUM: To Commence Exchange Offer for Notes
I R E L A N D
DOOLITTLES: Goes Into Liquidation; 34 Jobs Affected
I T A L Y
CARLA CARINI: Goes Into Liquidation, Ansa Says
K A Z A K H S T A N
CENTRAL ASIA: Creditors Must File Claims by November 5
DIVINITY 79: Creditors Must File Claims by November 5
GLOBAL TRACE: Creditors Must File Claims by November 5
IMPERIA LLP: Creditors Must File Claims by November 5
SCOT HOLLAND ESTATES: Creditors Must File Claims by November 5
SCOT HOLLAND PROJECT: Creditors Must File Claims by November 5
TAZA ORTA: Creditors Must File Claims by November 5
TRANS GROUP: Creditors Must File Claims by November 5
TURAN ESIL: Creditors Must File Claims by November 5
ZAPAD STROY: Creditors Must File Claims by November 5
K Y R G Y Z S T A N
BISHKEK COUNTRY: Creditors Must File Claims by November 11
RASSVET SERVICE: Creditors Must File Claims by November 11
STILL TRADE: Creditors Must File Claims by November 11
SUAR OSH: Creditors Must File Claims by November 11
L U X E M B O U R G
BEVERAGE PACKAGING: Moody's Downgrades Corp. Family Rating to 'B2'
N E T H E R L A N D S
ING GROEP: Moody's Downgrades Insurance Financial Strength Ratings
LYONDELL CHEMICAL: To Have Limited Examiner’s Investigation
LYONDELL CHEMICAL: Plan Outline Hearing Postponed to Dec. 4
MALIN CLO: Moody's Cuts Rating on Class E Notes to 'Caa3'
R U S S I A
ADMILON LLC: Creditors Must File Claims by November 4
ALEKS-DI CJSC: Creditors Must File Claims by November 4
ANOSOVSKIY LES: Creditors Must File Claims by November 4
BELGOROD-ELEVATOR: Creditors Must File Claims by November 4
KHIM-PROM: Tatarstan Bankruptcy Hearing Set November 5
MORDOVA-AGRO-STROY: Creditors Must File Claims by November 4
NAVASHINSKIY LES: Creditors Must File Claims by November 4
ORIMEKS-SUVAR LLC: Creditors Must File Claims by November 4
PROM-STROY LLC: Creditors Must File Claims by November 4
RBC INFORMATION: Lenders Back Debt US$208 Mln Debt Restructuring
ROSSIYANKA OJSC: Creditors Must File Claims by November 4
SERPUKHOVSKAYA PAPER: Creditors Must File Claims by November 4
SHALINSKIY REINFORCED: Creditors Must File Claims by November 4
SISTEMA-HALS JSC: Fitch Junks Issuer Default Ratings from 'B-'
TETKINSKIY SUGAR: Creditors Must File Claims by November 4
S P A I N
LA SEDA: Offers Debt Restructuring Terms to Creditors
S W I T Z E R L A N D
BALSIGER HAUSTECHNIK: Claims Filing Deadline is November 2
GROBAG AG: Claims Filing Deadline is November 2
H + W BETEILIGUNGEN: Claims Filing Deadline is November 2
IMESCH GMBH: Claims Filing Deadline is November 2
KYRIBA GMBH: Claims Filing Deadline is November 2
MAM TRADING: Claims Filing Deadline is November 2
MATON BOOTSWERFT: Claims Filing Deadline is November 2
PRONTO GMBH: Claims Filing Deadline is November 2
TEA-ROOM ALETSCH: Claims Filing Deadline is November 2
THOMAS CUGINI: Claims Filing Deadline is November 2
T U R K E Y
* ISTANBUL: Fitch Puts 'BB-' Rating on Rating Watch Positive
* TURKEY: Fitch Puts 'BB-' Issuer Rating on Positive Watch
U K R A I N E
LUGANSK CJSC: Creditors Must File Claims by November 1
SUGAR LLC: Creditors Must File Claims by November 1
U N I T E D K I N G D O M
AERO INVENTORY: Shares Suspended; Covenant Breach Likely
BRITISH AIRWAYS: DOT Delays Ruling on Alliance With American Air
CATTLES PLC: High Court to Start Hearing Welcome Case Today
FIRST QUENCH: On the Verge of Administration
GLOBE PUB: On the Verge of Administrative Receivership
HEATHER FINANCE: Moody's Withdraws Ratings on 4 Classes of Notes
LLOYDS BANKING: In Talks to Acquire CPA Global
LONDON LITE: Faces Closure; 36 Jobs at Risk
OXYGEN GAMES: Into Receivership; Former CEO Acquires Assets
SPORT MEDIA: Posts GBP7.7 Mln Interim Pre-Tax Loss
STABLE GROUP: Tool Rental Business Sold to Paradigm Oilfield
WILLIAM HILL: Moody's Assigns 'Ba1' Corporate Family Rating
WILLIAM HILL: S&P Assigns Corporate Credit Rating at 'BB+'
X X X X X X X X
* Upcoming Meetings, Conferences and Seminars
*********
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A U S T R I A
=============
MR. PAPER: Claims Filing Deadline is November 12
------------------------------------------------
Creditors of MR. PAPER PBS GmbH have until November 12, 2009, to
file their proofs of claim.
A court hearing for examination of the claims has been scheduled
for November 26, 2009 at 10:00 a.m.
For further information, contact the company's administrator:
Dr. Georg Schober
Hauptplatz 11
2700 Wiener Neustadt
Austria
Tel: 02622/23228 Serie
Fax: 02622/23228-26
E-mail: g.schober@schober.at
===================
A Z E R B A I J A N
===================
INTERNATIONAL INSURANCE: Moody's Assigns 'B2' Insurance Rating
--------------------------------------------------------------
Moody's Investors Service had assigned a first-time insurance
financial strength rating of B2 to International Insurance
Company. The rating outlook is stable.
International Insurance Company is an Azerbaijan based insurer
primarily focused on corporate and retail non-life insurance
within Azerbaijan. It is 100% owned by the International Bank of
Azerbaijan (Baa3/Negative/NP), itself 50.2% owned by the
Government of Azerbaijan. IIC was originally formed in 2002 to
act as an insurance provider for the assets against which IBA made
loans. The strategy has since been expanded to provide insurance
products outside of the IBA branch network. IIC is the 4th
largest insurance company in Azerbaijan with total premiums of
AZN13.6 million in 2008 (US$17 million) and total assets of
AZN27.3 million (US$34 million). It is licensed to write 33 types
of insurance but is predominantly focused on motor insurance and
medical insurance.
The rating is based on IIC's strong capital relative to the
insurance risks taken, good business position as the 4th largest
insurer in Azerbaijan, and good asset quality, with limited
exposure to high risk assets, although bank deposits carry some
risk. Offsetting these strengths, the operating performance is
weak, with the company reporting a net loss in 2008 and poor
underwriting performance, due to a very high expense ratio. In
addition the company is highly exposed to the economy of
Azerbaijan (Ba1/Stable), and the company's small size increases
potential exposure to concentration risks.
Moody's said that upward rating pressure for IIC may evolve over
time from 1) a significant improvement in the operating
performance of IIC, with several years of strong underwriting
profitability 2) improvement in the Azerbaijan economic and
Sovereign environment, evidenced by an upgrade in the Government
rating or 3) through enhanced support from the International Bank
of Azerbaijan or the Government
On the other hand, the rating may experience downward pressure
from 1) a deterioration in the Sovereign environment or reductions
in loan volumes at IBA impacting premium levels, 2) protracted
poor claims environment resulting in continued underwriting losses
or 3) an increased investment risk such as investments in illiquid
assets or volatile equities
This rating was assigned:
* International Insurance Company OJSC -- B2 insurance financial
strength rating, stable outlook.
At the half year 2009 IIC reported a combined ratio of 86%
resulting in Net Income of AZN895 thousand. Premium volume, at
AZN4.1 million were down on 2008, a result of the weaker operating
environment.
===============
B U L G A R I A
===============
CENTRAL EUROPEAN: 3Q Net Revenues Drop 33% to US$134.5 Million
--------------------------------------------------------------
Central European Media Enterprises Ltd. posted financial results
for the three months and nine months ended September 30, 2009.
Net revenues for the third quarter of 2009 were US$134.5 million,
a decrease of 33% compared to the third quarter of 2008. Operating
income for the quarter decreased US$40.6 million to a loss of
US$33.5 million. Net income from continuing operations decreased
US$5.7 million to a loss of US$24.3 million, and fully diluted
loss per share decreased by US$0.10 to a loss of US$0.35.
Net revenues for the nine months ended September 30, 2009 were
US$461.9 million, a decrease of 37% compared to the nine months
ended September 30, 2008. Operating income for nine months ended
September 30, 2009 decreased US$257.6 million to a loss of
US$106.2 million. Net income from continuing operations decreased
US$111.5 million to a loss of US$48.9 million, and fully diluted
income per share decreased by US$2.18 to a loss of US$0.81.
Adrian Sarbu, President and Chief Executive Officer of CME,
commented: "This is the fourth quarter of decline in our
advertising markets. TV ad spending reset 30% lower than in 2008.
We believe the markets have reached the bottom. This is
a new starting point. The macroeconomic prospects for 2010 have
improved and we expect advertising spending to follow. Our
priority for 2010 is to convert our high audience and market share
into higher revenues while managing costs rigorously. We believe
in our ability to outperform the markets."
Results for the Three Months Ended
September 30, 2009
Net revenues for the three months ended September 30, 2009
decreased by 33% to US$134.5 million from US$200.6 million for the
three months ended September 30, 2008. Operating loss for the
quarter was US$33.5 million compared to an operating income of
US$7.2 million for the three months ended September 30, 2008. Net
loss attributable to the shareholders of CME for the quarter was
US$21.6 million compared to US$19.3 million for the three months
ended September 30, 2008. Fully diluted loss per share for the
three months ended September 30, 2009 decreased US$0.10 to a loss
of US$0.35.
EBITDA for the three months ended September 30, 2009 decreased to
a loss of US$14.4 million from positive EBITDA of US$31.6 million
in the three months ended September 30, 2008. EBITDA margin for
the three months ended September 30, 2009 was -11% compared to
+16% in the three months ended September 30, 2008.
Headline results for the three months ended September 30, 2009
and 2008 were:
---------------------------------------------------------------
RESULTS (Unaudited)
---------------------------------------------------------------
For the Three Months Ended September 30, 2009
(US$000's)
---------------------------------------------------------------
2009 2008 US$ change % change
--------------------------------------------
Net revenues US$134,482 US$200,601 US$(66,119) (33)%
---------------------------------------------------------------
EBITDA US$(14,354) US$31,556 US$(45,910) (145)%
---------------------------------------------------------------
Operating (loss) US$(33,450) US$7,155 US$(40,605) Nm(1)
/ income
---------------------------------------------------------------
Net loss US$(21,550) US$(19,330) US$(2,220) (11)%
attributable
to CME
---------------------------------------------------------------
Fully diluted US$ (0.35) US$(0.45) US$(0.10) (22)%
loss per share
---------------------------------------------------------------
Results for the Nine Months Ended
September 30, 2009
Net revenues for the nine months ended September 30, 2009
decreased by 37% to US$461.9 million from US$728.4 million for the
nine months ended September 30, 2008. Operating loss for the
period was US$106.2 million compared to operating income of
US$151.4 million for the nine months ended September 30, 2008.
Net loss attributable to the shareholders of CME for the period
was US$41.9 million compared to net income of US$58.6 million for
the nine months ended September 30, 2008. Fully diluted loss per
share for the nine months ended September 30, 2009 was US$0.81, a
decrease ofUS$2.18 compared to the nine months ended September 30,
2008.
EBITDA for the nine months ended September 30, 2009 decreased to
US$30.8 million from US$217.1 million in the nine months ended
September 30, 2008. EBITDA margin for the nine months ended
September 30, 2009 was 7% compared to 30% in the nine months ended
September 30, 2008.
Headline results for the nine months ended September 30, 2009
and 2008 were:
----------------------------------------------------------------
RESULTS (Unaudited)
----------------------------------------------------------------
For the Nine Months Ended September 30,
(USUS$000's)
----------------------------------------------------------------
2009 2008 US$ change % change
----------------------------------------------------------------
Net revenues US$461,888 US$728,433 US$(266,545) (37)%
----------------------------------------------------------------
EBITDA US$30,777 US$217,120 US$(186,343) (86)%
----------------------------------------------------------------
Operating (loss) US$(106,229) US$151,372 US$(257,601) (170)%
/ income
----------------------------------------------------------------
Net (loss) /
income
attributable
to CME US$(41,907) US$58,581 US$(100,488) (172)%
----------------------------------------------------------------
Fully diluted
(loss) /income
per share US$(0.81) US$1.37 US$ (2.18) (159)%
----------------------------------------------------------------
Segment Results
The company evaluated the performance of its operations based on
net revenues and EBITDA. The company's net revenues, consolidated
EBITDA and EBITDA margin for the three months ended September 30,
2009 and 2008 were:
-----------------------------------------------------------------
SEGMENT RESULTS (Unaudited)
-----------------------------------------------------------------
For the Three Months Ended September 30,
(USUS$000's)
-----------------------------------------------------------------
2009 2008 US$ change % change
-----------------------------------------------------------------
Net revenues -
broadcast
operations US$132,148 US$198,426 US$(66,278) (33)%
-----------------------------------------------------------------
Net revenues -
non-broadcast
operations 2,334 2,175 159 7%
-----------------------------------------------------------------
Net revenues US$134,482 US$200,601 US$(66,119) (33)%
-----------------------------------------------------------------
EBITDA - broadcast
operations US$(3,342) US$46,018 US$(49,360) (107)%
-----------------------------------------------------------------
EBITDA -
non-broadcast
operations (3,903) (2,790) (1,113) (40)%
-----------------------------------------------------------------
EBITDA - Corporate (7,109) (11,672) 4,563 39%
-----------------------------------------------------------------
Consolidated EBITDA US$(14,354) US$31,556 US$(45,910) (145)%
-----------------------------------------------------------------
EBITDA Margin (11)% 16%
-----------------------------------------------------------------
Company net revenues, Consolidated EBITDA and EBITDA margin for
the nine months
ended September 30, 2009 and 2008 were:
----------------------------------------------------------------
SEGMENT RESULTS (Unaudited)
----------------------------------------------------------------
For the Nine Months Ended September 30,
(USUS$000's)
----------------------------------------------------------------
2009 2008 US$ change % hange
----------------------------------------------------------------
Net revenues -
broadcast
operations US$ 455,347 US$ 721,505 US$(266,158) (37)%
----------------------------------------------------------------
Net revenues -
non-broadcast
operations 6,541 6,928 (387) (6)%
----------------------------------------------------------------
Net revenues US$461,888 US$728,433 US$(266,545) (37)%
----------------------------------------------------------------
EBITDA - broadcast
operations US$ 61,892 US$ 258,251 US$(196,359) (76)%
----------------------------------------------------------------
EBITDA -
non-broadcast
operations (6,939) (6,160) (779)
(13)%
----------------------------------------------------------------
EBITDA - Corporate (24,176) (34,971) 10,795 31%
----------------------------------------------------------------
Consolidated EBITDA US$30,777 US$217,120 US$(186,343)
(86)%
----------------------------------------------------------------
EBITDA Margin 7% 30%
----------------------------------------------------------------
About Central European
Headquartered in Bermuda, Central European Media Enterprises Ltd.
-- http://www.cetv-net.com/-- invests in, develops and operates
commercial television channels in Central and Eastern Europe. At
present, the Company has operations in Bulgaria, Croatia, the
Czech Republic, Romania, the Slovak Republic, Slovenia and
Ukraine. The Company holds its assets through a series of Dutch
and Netherlands Antilles holding companies. It has ownership
interests in license companies and operating companies in each
market in which it operates. Operations are conducted either by
the license companies themselves or by separate operating
companies. The Company generates revenues primarily through
entering into agreements with advertisers, advertising agencies
and sponsors to place advertising on air of the television
channels that it operates.
* * *
As reported in the Troubled Company Reporter-Latin America on
September 9, 2009, Standard and Poor's Ratings Services said that
it affirmed its 'B' long-term corporate credit rating on Bermuda-
based emerging markets TV broadcaster Central European Media
Enterprises Ltd The outlook is negative. S&P also affirmed at 'B'
the debt ratings on CME's US$475 million senior convertible notes
due 2013, EUR245 million notes due 2012, and EUR150 million notes
due 2014. In addition, S&P assigned a 'B' issue rating to the
EUR150 million bond issue due 2016 announced by CME, in line with
the corporate credit rating.
===========
F R A N C E
===========
CMA-CGM SA: Vincent Bollore Wants to Buy Back Delmas-Vieljeux Unit
------------------------------------------------------------------
David Whitehouse at Bloomberg News, citing Wansquare, reports that
Vincent Bollore has made several offers to repurchase CMA-CGM SA's
Delmas-Vieljeux unit.
According to Bloomberg, Wansquare said CMA-CGM so far has refused
to sell the unit back to its former owner.
On Oct. 6, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported CMA CGM was in breach of the terms
governing about US$3.9 billion of its loans.
Headquartered in Marseilles, France, CMA CGM S.A. --
http://www.cma-cgm.com/-- ships freight PDQ. The marine
transportation company is one of the world's leading container
carriers. Through subsidiaries it operates a fleet of about 370
vessels that serve more than 400 ports around the globe, and it
maintains a network of about 650 facilities in about 150
countries. In addition to hauling containers by sea, CMA CGM
provides logistics services, arranging the transportation of
containerized freight by river, road, and rail. The company's
tourism division arranges cruises and other travel services.
Chairman Jacques Saade founded the company in 1978.
WINDERMERE XIV: Fitch Junks Ratings on Two Classes of Notes
-----------------------------------------------------------
Fitch Ratings has downgraded all classes of Windermere XIV. The
Outlook of the Class A and Class B notes were revised to Negative
from Stable, while the Class C and Class D notes were assigned
Negative Outlook after being removed from Rating Watch Negative.
The Class E and Class F notes were also removed from RWN and
assigned Recovery Ratings. The rating action is:
-- EUR669.8 million class A (XS0330752436) downgraded to 'AA'
from 'AAA'; Outlook revised to Negative from Stable
-- EUR20,000 class X (XS0330852145) affirmed 'AAA'; Outlook
Stable
-- EUR88.6 million class B (XS0330752782) downgraded to 'BBB'
from 'AA'; Outlook revised to Negative from Stable
-- EUR72.1 million class C (XS0330752949) downgraded to 'BB';
from 'A', removed from Rating RWN; assigned Negative Outlook
-- EUR30.5 million class D (XS0330753244) downgraded to 'B' from
'A'; removed from Rating RWN; assigned Negative Outlook
-- EUR40.4 million class E (XS0330753590) downgraded to 'CCC'
from 'BBB'; removed from Rating RWN; assigned a Recovery
Rating (RR) of 'RR3'
-- EUR19.7 million class F (XS0330753673) downgraded to 'CCC'
from 'BBB'; removed from Rating RWN; assigned a Recovery
Rating (RR) of 'RR5'
Windermere XIV is a securitization of commercial mortgage loans
originated across Europe by Lehman Brothers Holdings Inc., which
closed in November 2007. The transaction finances eight loans in
France, Finland, Italy and Germany, mainly secured on offices.
Although exit debt yields based on net income are above 7% for all
the loans, the degree of rollover risk on some of them, including
on the two largest, largely accounts for the rating action. This
is especially visible in the Finnish collateral, which accounts
for 30% of the portfolio's market value. Finnish leases tend to
be perpetual in nature with tenant renewal often occurring on an
annual basis, offering lenders less certainty in terms of
guaranteed long-term income than in other markets.
The largest loan in the pool is the Haussmann loan (28.4% the
portfolio), secured by a grade A office property located in the
eastern part of Paris CBD. The property is fully let to two
tenants, Atos Euronext Market Solutions (accounting for 57% of
passing rent) and Reuters France (rated 'A-'/Outlook Stable).
These tenants' leases are scheduled to expire in 2011 and 2014,
respectively. The loan benefits from scheduled amortization,
which will reduce the Fitch loan-to-value ratio below its current
100% by loan maturity in 2014.
The Fortezza II loan (27.5% the portfolio) is an interest-only
loan, secured by 10 office properties located in Rome and a single
office property located in Pescara, all fully-let to Italian
government departments. While the Republic of Italy is rated
'AA-' with Stable Outlook, the benefit of this tenant strength is
somewhat mitigated by the lease length, some 3.5 years on a
weighted average basis, which is lower than the remaining loan
term of 4.5 years. Moreover, almost a quarter of income is drawn
from tenants on leases that have expired, or are considered
"holding-over". The performance of this loan will depend
considerably on the lease extension decisions made by the Italian
public sector, since the offices are large and are not considered
to be in grade A locations and therefore may be difficult to re-
let if they become vacant.
The Sisu loan (24.6% of the portfolio) is an A-note of a EUR266m
whole loan secured by 336 retail outlets and offices in regional
Finland. In line with the sponsor's business plan, there have
been considerable disposals since closing (when there were 553
charged assets), bringing the outstanding senior loan balance down
to EUR225.1 million from EUR329.7 million and decreasing the
reported LTV to 68.5% from 72%. The loan benefits from
significant income diversity, with more than 1,000 tenants, the
largest of which contributes only 5% of passing rent. Based on
the most recent available rent roll, there is a high vacancy rate
of 18% (by lettable area); while this may present the manager with
operational challenges and costs, it is consistent with the
vacancy rate reported at closing.
Following the bankruptcy of Lehman Brothers in September 2008,
Fitch placed the classes C through F on RWN, principally owing to
the disruption in hedging arrangements that this event caused.
Issuer-level hedging and some borrower-level hedges have since
been replaced, although two loans remain unhedged. As this has
been taken into account in Fitch's analysis, the RWN status has
been removed.
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G E R M A N Y
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DEUTSCHE APOTHEKER: Moody's Downgrades Bank Strength Rating to 'D'
------------------------------------------------------------------
Moody's Investors Service downgraded the bank financial strength
rating of Deutsche Apotheker- und Aerztebank to D from C, with a
negative outlook. At the same time, Moody's affirmed apoBank's A2
senior debt and deposit ratings and A3 senior subordinated debt
rating, while the outlook on these ratings was changed to negative
from stable. The Prime-1 short-term rating was also affirmed.
The rating action concludes the review for possible downgrade on
the BFSR initiated on July 1, 2009.
The lower BFSR reflects Moody's concerns about the total size and
deteriorating quality of the bank's investments in structured
credit products, which the rating agency expects to result in
additional write-downs and continued pressure on the bank's
capitalisation. The affirmation of the A2 long-term ratings
reflects Moody's view that apoBank will continue to benefit from
the existing support mechanisms available to members of the group
of co-operative banks in Germany (the Bundesverband der Deutschen
Volksbanken und Raiffeisenbanken).
BFSR Downgrade Due to Weak Capital Levels
For Apo's Increased Risk Profile
Moody's downgraded the BFSR in light of stress tests on apoBank's
earnings, assets and capital. The outcome of the tests reflects
the rating agency's view that apoBank is only weakly capitalised
in the context of its risk profile, as its balance sheet is
burdened by EUR5.4 billion of structured credit investments of
various qualities, structures and origins.
Moody's stresses that the sheer size and complexity of this
portfolio represents a major challenge for the bank and that
transition risk with regard to the performance of underlying
assets and, therefore, potential further rating migration may lead
to apoBank again turning to the BVR for assistance. This
situation justifies the three-notch downgrade of the BFSR to D.
"We recognize apoBank's focused efforts to de-risk its structured
credit portfolios by reverting to a number of restructuring and
hedging measures, and Moody's have factored this into the
ratings," said Katharina Barten, a Frankfurt-based Moody's Vice
President and lead analyst for apoBank. "However, with this
hands-on approach, the bank has also considerably increased its
total exposure to these assets over the past two years, which
makes it more vulnerable to unforeseen events and unexpected
losses," adds Ms. Barten.
At the same time, Moody's notes positively that apoBank's core
franchise remains fully intact and that it should be able to
defend the strong market position that it enjoys in lending to
Germany's health-care professions. However, its hedging measures
have incurred costs that -- together with expected losses -- the
rating agency anticipates will weigh heavily on apoBank's
profitability and therefore on its capital generation capacity,
potentially for many years. Moreover, the challenges relating to
the structured portfolio will continue to require the time and
attention of management.
The negative outlook on the BFSR reflects these concerns, coupled
with Moody's view that -- in the short term -- the underlying
economic drivers for major parts of apoBank's ABS and RMBS
portfolios could continue to deteriorate.
Negative Outlook on A2 Long-Term Ratings In Line With
Outlook on D BFSR
Moody's changing of the outlook on the A2 senior debt and deposit
ratings to negative reflects the fact that any further downgrade
of the D BFSR would likely result in a downgrade of the A2 debt
and deposit ratings. This could occur in the event of apoBank's
regulatory capital levels declining further and/or persistent
pressure on the current weak levels, necessitating the bank
seeking further outside assistance to comply with the minimum
regulatory capital requirements.
Hybrid Ratings Unaffected But Under Pressure,
Outlook Negative
apoBank's Baa1 rating for Tier 1 hybrid capital securities (silent
participations or "Stille Einlagen") was unaffected by the rating
action. However, this rating was assigned in line with Moody's
existing methodology entitled "Guidelines for Rating Bank Junior
Securities", dated April 2007. Moody's noted that on June 16,
2009, it released a Request for Comment, in which the rating
agency has requested market feedback on potential changes to its
rating methodology for bank subordinated capital. If the revised
methodology is implemented as proposed, the rating on apoBank's
EUR150 million silent participation may be negatively affected.
Please refer to Moody's Request for Comment, titled "Moody's
Proposed Changes to Bank Subordinated Capital Ratings," for
further details regarding the implications of the proposed
methodology changes on Moody's ratings.
The last rating action on apoBank was on July 1, 2009, when
Moody's placed its BFSR on review for possible downgrade and
affirmed its A2 debt and deposit ratings.
apoBank reported total assets of EUR40.4 billion as of the end of
June 2009 and reported a net profit of EUR7.5 million for H1.
SUNRISE SENIOR: Enters Into Restructuring Agreements with Lenders
-----------------------------------------------------------------
Sunrise Senior Living, Inc., on October 27 disclosed that it
entered into a restructuring agreement, in the form of a binding
term sheet, with Capmark Finance Inc. and Natixis, London Branch,
two lenders of Sunrise and certain of its affiliates, to settle
and compromise their claims against Sunrise and certain of its
affiliates, including under operating deficit and principal
repayment guarantees provided by Sunrise and certain of its
affiliates in support of Sunrise's German subsidiaries. Capmark
Finance and Natixis contended that these claims had an aggregate
value of approximately US$121.6 million. The binding term sheet
contemplates that, on or before the first anniversary of the
execution of definitive documentation for the restructuring,
certain other identified lenders of Sunrise may elect to
participate in the restructuring with respect to their asserted
claims. The claims being settled by Capmark Finance and Natixis
represent approximately 77.5 percent of the aggregate amount of
claims asserted by the lenders that may elect to participate in
the restructuring transaction.
Sunrise also disclosed October 27 that it entered into agreements
with Sunrise's joint venture partner in the Fountains portfolio,
as well as with HSH Nordbank AG, New York Branch, the lender to
the Fountains venture, to release Sunrise from all claims that the
joint venture partner and HSH Nordbank had against Sunrise prior
to the date of the agreements and from all future funding
obligations of Sunrise in connection with the Fountains portfolio.
"We are pleased that, after having previously exited Trinity
Hospice, Greystone and Aston Gardens, substantially reduced our
overhead run rate, stabilized our liquidity by selling assets and
extended our credit line, we have now successfully restructured
our Fountains portfolio and the bulk of our corporate obligations
relating to Germany," said Mark Ordan, Sunrise's chief executive
officer. "We have been following a plan to discontinue non-core
operations nd keep Sunrise focused as the premier senior living
care provider."
Germany
The restructuring agreement, which was executed on October 22,
2009, provides that the electing lenders will release and
discharge Sunrise from certain claims they may have against
Sunrise. Sunrise will issue to the lenders that elect to
participate in the restructuring on or before the first execution
of the definitive documentation, their pro rata share of up to an
aggregate of 5 million shares of Sunrise common stock and will
grant mortgages for the benefit of all electing lenders on certain
of its unencumbered North American properties. Following the
first execution of the definitive documentation for the
restructuring, Sunrise will pursue the sale of such mortgaged
properties and distribute the net sale proceeds to the electing
lenders. Sunrise has guaranteed that, within 30 months of the
first execution of the definitive documentation for the
restructuring, the electing lenders will receive a minimum of
US$58.3 million from the net proceeds of any such sale, which
equals 80 percent of the most recent aggregate appraised value of
these properties. If the electing lenders do not receive at least
US$58.3 million by such date, Sunrise will make payment to cover
any shortfall or, at such lenders' option, convey to them the
remaining unsold properties.
In addition, Sunrise will market for sale the German assisted
living communities subject to loan agreements with the electing
lenders and will remain responsible for all costs of operating,
preserving and maintaining these communities until the earlier of
either their sale or December 31, 2010.
The closing of the transaction, including the execution of the
definitive documentation, the release of claims and the issuance
of Sunrise common stock, is conditioned upon receipt of consent
for the transaction from Bank of America, N.A., as the
administrative agent under Sunrise's credit agreement, on or
before November 11, 2009. In accordance with the binding term
sheet, definitive documentation shall be executed as soon as
reasonably possible (but no later than 40 days) after the receipt
of such required consent.
Sunrise continues to be liable under certain operating deficit and
repayment guarantees for the Klein Flottbeck and Wiesbaden
communities, and certain principal repayment guarantees for the
Hoesel land which is not part of the restructuring agreement.
Fountains
Pursuant to the agreements relating to the Fountains portfolio,
HSH Nordbank and Sunrise's joint venture partner released Sunrise
from all past and future funding commitments in connection with
the Fountains portfolio, as well as from all other liabilities
prior to the date of the agreements arising under the Fountains
joint venture, loan and management agreements, including
obligations under operating deficit and income support
obligations. Sunrise will retain certain management and operating
obligations going forward during a temporary transition period.
In exchange for these releases, Sunrise has, among other things:
-- Transferred its 20-percent ownership interest in the
Fountains joint venture to its joint venture partner;
-- Contributed vacant land parcels adjacent to six of the
Fountains communities and owned by Sunrise to the Fountains
joint venture; and
-- Agreed to transition from management of the 16 Fountains
communities as soon as the transition closing conditions
are met and the new manager has obtained the regulatory
approvals necessary to assume control of the
facilities (Sunrise expects to transition from management
of the Fountains communities during the course of 2010).
The contributed vacant land parcels were carried on Sunrise's
consolidated balance sheet at a book value of $12.9 million at
September 30, 2009.
About Sunrise Senior Living
Sunrise Senior Living, Inc., a McLean, Va.-based company --
http://www.sunriseseniorliving.com/-- employs roughly 40,000
people. As of June 30, 2009, Sunrise operated 415 communities in
the United States, Canada, Germany and the United Kingdom, with a
combined unit capacity of roughly 42,750 units. Sunrise offers a
full range of personalized senior living services, including
independent living, assisted living, care for individuals with
Alzheimer's and other forms of memory loss, as well as nursing and
rehabilitative services. Sunrise's senior living services are
delivered by staff trained to encourage the independence, preserve
the dignity, enable freedom of choice and protect the privacy of
residents.
TS CO.MIT: Moody's Junks Rating on EUR6.3MM Class F Notes
---------------------------------------------------------
Moody's Investors Service took these rating actions on notes
issued by TS Co.Mit One GmbH SSD CLO. Given that this is a
relatively well-performing SME CLO, with a portfolio weighted
average life of only a little over a year to maturity, the Class A
notes remain Aaa and the Class B notes are upgraded.
-- EUR15M B (currently -- EUR11,798,079.28), Upgraded to Aaa;
previously on March 13, 2009 Aa2 Placed Under Review for
Possible Downgrade
-- EUR13.9M C (currently -- EUR10,932,886.81), Upgraded to
A1; previously on March 13, 2009 A2 Placed Under Review for
Possible Downgrade
-- EUR10.2M D (currently -- EUR8,022,693.92), Downgraded to
Baa3; previously on March 13, 2009 Baa1 Placed Under Review
for Possible Downgrade
-- EUR11.3M E (currently -- EUR 8,887,886.39), Downgraded to
Caa1; previously on March 13, 2009 Ba1 Placed Under Review
for Possible Downgrade
-- EUR6.3M F (currently EUR4,955,193.30), Downgraded to Caa3;
previously on March 13, 2009 B1 Placed Under Review for
Possible Downgrade
This transaction is a static cash flow CDO exposed to a portfolio
of Certificates of Indebtedness (Schuldscheindarlehen). The
Certificates of Indebtedness represent senior unsecured debt of
the borrowers with various maturity dates, not exceeding the
scheduled maturity date of this transaction in June 2011. At
closing the portfolio consisted of 396 Certificates amounting to
EUR503 million but has since amortized considerably, with 179
Certificates remaining outstanding amounting to approximately EUR
149 million. The upgrade action is primarily a result of the
reduced time to maturity of the portfolio and the de-levering that
has accompanied the portfolio amortization.
The downgrade actions taken on the notes are a reflection of the
weak coverage ratios lower down the capital structure. Removing
poorly performing assets in the portfolio leaves classes E and F
with OC ratios below 100%, and relying on recoveries from probable
future defaults in order to be paid back. Sensitivity to
recoveries in the portfolio is emphasized due to the fact the
remaining portfolio has displayed a degree of deterioration,
although this is ameliorated by the diversity and granularity of
the remaining portfolio.
The deterioration in the portfolio can be observed in the average
credit rating as measured through the portfolio weighted average
rating factor 'WARF' (currently 1024, at closing 856), an increase
in the amount of Principal Deficiency Events (approx.
EUR6.36 million recorded in the last two collection periods) and
an increase in the Principal Deficiency Ledger (currently approx.
EUR10.15 million). Other than the Warf figures which are Moodys
own calculations, these measures were taken from the recent
trustee report dated 25 September 2009. Moody's also performed a
number of sensitivity analyses, including a decrease in the
expected recovery rates.
The rating actions follow the watchlisting of this transaction on
March 13, 2009 and reflect the application of revised and updated
key modelling parameter assumptions that Moody's uses to rate and
monitor ratings of CDOs exposed to corporate assets and which are
also being applied in its analysis of SME CDOs. Moody's announced
the changes to these assumptions in two press releases titled
"Moody's updates key assumptions for rating CLOs", published on 4
February 2009 and "Moody's Updates its Key Assumptions for Rating
Corporate Synthetic CDOs," published on 15 January 2009. The
revisions affect default probability, and asset correlation. On
top of the correlation adjustments outlined in the press releases,
to account for the fact the entire portfolio is German, a 5%
minimum inter asset correlation was also assumed. Default
probability and correlation are key parameters in Moody's model
for rating CDOs exposed to corporate assets.
Moody's notes that for all of the underlying referenced assets,
the equivalent Moody's ratings used in Moody's analysis are
obtained through a mapping process between the originator's
internal rating scale and Moody's public rating scale. To
compensate for the absence of credit indicators such as ratings
reviews and outlooks in mapped ratings Moody's applied on each
mapped credit a 0.5 notch stress equivalent to the default
probablility, as well as an additional 5% stress to account the
date of the mapping.
The transaction was modeled using CDOROM 2.5 to simulate default
times and recovery rates for each asset in the portfolio. The
output from the simulation was then used as an input in a cash
flow model which implements the sequential priorities of payment.
Baseline mean recovery assumptions of 30% were made for senior
unsecured debt in this portfolio.
Moody's highlights that the upgrade actions have incorporated the
aforementioned stresses as well as credit deterioration in the
underlying portfolio. However, the actions reflect updated
analysis indicating that the impact of these factors on the
ratings of these notes is not as negative as previously assessed
during the SME CLO deal review in March when all but the Class A
were placed on review for downgrade. The current conclusions stem
from comprehensive deal-level analysis, which included an in-depth
assessment of results from Moody's quantitative CLO rating model
along with an examination of deal-specific qualitative factors.
In addition to the quantitative factors that are explicitly
modelled, qualitative factors are part of the rating committee
considerations. These qualitative factors include the structural
protections in each transaction, the recent deal performance in
the current market environment, the legal environment, specific
documentation features, the collateral manager's track record, and
the potential for selection bias in the portfolio. All
information available to rating committees, including
macroeconomic forecasts, input from other Moody's analytical
groups, market factors, and judgments regarding the nature and
severity of credit stress on the transactions, may influence the
final rating decision.
TUI AG: To Sell EUR250 Mln Convertible Bonds
--------------------------------------------
Caroline Hyde and Holger Elfes at Bloomberg News report that TUI
AG said it would offer shareholders about EUR250 million (US$370
million) of convertible bonds.
According to Bloomberg, TUI said it will extend the maturity of
its debt with the sale and use the proceeds for "general corporate
purposes."
Bloomberg relates the company, which also said Supervisory Board
Chairman Juergen Krumnow resigned yesterday, said investors can
buy one five-year bond for every 65 shares held and may subscribe
for the notes from today, Oct. 29 to Nov. 11. Each bond will be
convertible into 10 new shares, TUI, as cited by Bloomberg, said
in its statement.
"I wouldn't suggest that shareholders buy that bond," Bloomberg
quoted Hans-Peter Wodniok, an analyst for Fairesearch in
Frankfurt, as saying.
Mr. Wodniok rates TUI "sell" partly because of the company's debt
load, Bloomberg notes.
TUI AG -- http://www.tui-group.com/en/-- is a Germany-based
company mainly engaged in the tourism sector, focusing on the
markets of Central, Northern and Western Europe. TUI owns a
network of travel agencies and tour operators, including air
tours, Thomson, First Choice and TUI Deutschland. It also
operates several airlines, including Corsairfly, Thomsonfly and
First Choice Airways, among others. The Company is structured
into three segments: TUI Travel, TUI Hotels and Resorts, and
Cruises. TUI Travel comprises the Company’s distribution, tour
operating, airline and incoming activities and services over 30
million customers in 180 countries. The TUI Hotels and Resorts
division offers a portfolio of 238 hotels, located in Spain,
Greece, Egypt, France, Turkey, Tunisia, the Balearics and the
Caribbean, among others. The Cruises sector comprises Hapag-Lloyd
Kreuzfahrten GmbH and TUI Cruises which provide luxury cruises,
and cruises within the German-speaking countries, respectively.
* * *
As reported in the Troubled Company Reporter-Europe on Sept. 21,
2009, Moody's Investors Service lowered the Corporate Family
Rating and Probability of Default Rating of TUI AG to Caa1 from
B3. At the same time, the unsecured rating and the subordinated
rating were lowered from Caa1 to Caa2 and from Caa2 to Caa3,
respectively. Moody's said the outlook is negative.
===========
G R E E C E
===========
WIND HELLAS: Owner to Pick Preferred Bidder Next Week
-----------------------------------------------------
John Glover and Maria Petrakis at Bloomberg News report that
Hellas Telecommunications II, the holding company of Wind Hellas
Telecommunications SA, said it plans to pick a preferred bidder
for its assets next week after identifying two possible buyers.
Bloomberg relates Hellas said in a statement issued in Athens
Oct. 26 it will hold talks with Weather Investments SpA and a
committee of subordinated noteholders on a stake in the company,
which is seeking to restructure as much as EUR3 billion (US$4.5
billion) of debt.
Bloomberg, citing the Oct. 26 statement, discloses Hellas II is
"facilitating" discussions between the bidders and the company's
banks, as well as with committees representing holders of the
company's senior secured debt and most of its senior unsecured
notes.
As reported in the Troubled Company Reporter-Europe on Sept. 15,
2009, Wind Hellas put itself up for sale after losing market share
and hitting trouble servicing its debt.
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 C E L A N D
=============
CENTURY ALUMINUM: To Commence Exchange Offer for Notes
------------------------------------------------------
Century Aluminum Company expects on October 28, 2009, to commence
(i) an exchange offer and consent solicitation relating to its
7.5% Senior Notes due 2014, CUSIP No. 156431AH1 (the "2014 Notes")
and (ii) a consent solicitation relating to its 1.75% Convertible
Senior Notes due 2024, CUSIP Nos. 156431AE8 and 156431AD0 (the
"2024 Notes").
Exchange Offer and Consent Solicitation Related to 2014 Notes
Holders who tender their 2014 Notes prior to the expiration of the
exchange offer will receive newly issued 8% Senior Secured Notes
due 2014. The Exchange Notes will bear interest at the rate of 8%
per annum, payable semi-annually on May 15 and November 15 of each
year, commencing May 15, 2010, and mature on May 15, 2014. All of
the Company's existing and future domestic restricted
subsidiaries, other than foreign-owned parent holding companies,
will guarantee the Exchange Notes on a senior secured basis. The
Exchange Notes and related guarantees will rank:
-- equal in right of payment with all of the company and
the guarantors'existing and future senior debt;
-- senior in right of payment to any of the company and the
guarantors'existing and future subordinated debt;
-- effectively senior to all unsecured debt, including any
2014 Notes not tendered in the exchange offer and the
2024 Notes, to the extent of the value of the collateral;
-- effectively junior to the obligations of the Company's
foreign subsidiaries; and
-- effectively junior to the Company and the guarantors'
obligations that are secured by any first priority liens,
to the extent of the value of the assets securing such
liens.
The company's obligations under the Exchange Notes and the
guarantors' obligations under the guarantees will be secured by
a pledge of and lien on, subject to certain exceptions: (i) all
property, plant and equipment owned or hereafter owned by the
Company and the guarantors; (ii) all equity interests in
domestic subsidiaries directly owned or hereafter owned by the
Company and the guarantors and 65% of equity interests in foreign
subsidiaries directly owned by the Company and the guarantors;
(iii) intercompany notes owed or hereafter owed by any non-
guarantor to the Company or any guarantor, including an
intercompany note from Century Bermuda I Ltd. to the company which
had approximately $687 million outstanding as of September 30,
2009; and (iv) proceeds of the foregoing.
The company may redeem any of the Exchange Notes beginning on
May 15, 2011. The initial redemption price will be 104% of their
aggregate principal amount, plus accrued and unpaid interest. The
redemption price will decline to 102% and 100% of their aggregate
principal amount, plus accrued and unpaid interest, on May 15,
2012, and May 15, 2013, respectively. In addition, before May 15,
2011, the Company may redeem up to 35% of the aggregate principal
amount of the Exchange Notes with proceeds of offerings of certain
of the company's capital stock at 108% of their aggregate
principal amount, plus accrued and unpaid interest.
In general, the covenants in the indenture governing the Exchange
Notes will be based on those contained in the indenture governing
the 2014 Notes, with changes deemed to be appropriate to include
the following changes to the covenants in the indenture governing
the 2014 Notes:
-- limit on indebtedness:
-- a new permitted debt provision will be added to permit up
to US$125 million of debt incurred to finance expansion
or improvement of the Grundartangi plant; provided that
such debt is not guaranteed by the company or any of
the guarantors of the Exchange Notes;
-- a new permitted debt provision will be added to permit up
to Us$500 million of debt that (i) is unsecured and
effectively subordinated to the Exchange Notes to the
extent of the value of the collateral, (ii) the stated
maturity of which is after the maturity of the
Exchange Notes, and (iii) the cash coupon of which is no
higher than the cash coupon on the Exchange Notes; and
-- a new permitted debt provision will be added for debt
pursuant to the Exchange Notes and related guarantees;
-- asset sales -- the disposition of interests of any
domestic subsidiaries excluding those that directly or
indirectly own equity interests in, or are an obligee
under debt incurred by, a foreign restricted subsidiary
("Legacy Domestic Subsidiaries") will be permitted;
provided that such disposition will be for fair market
value and any cash proceeds will be applied pursuant to
the asset sale covenant;
-- limit on liens:
-- the Exchange Notes will permit the Company to grant
permitted liens, as defined; in addition, the Exchange
Notes will permit the company to grant liens on
assets that do not secure the Exchange Notes, provided
that the Exchange Notes are equally and ratably secured
with liens on such assets;
-- permitted liens securing obligations under or with
respect to credit agreement debt will include, in
addition to liens on current assets as currently
permitted, liens on the collateral securing the
Exchange Notes on a pari passu basis with the
Exchange Notes; and
-- the existing US$150 million general lien basket will be
retained and may continue to be used to secure any
permitted debt with pari passu or priority liens on the
collateral securing the Exchange Notes; and
-- limit on restricted payments -- investments using proceeds
from permitted unsecured debt issuances in unrestricted
subsidiaries, including Helguvik, and joint ventures will
be permitted.
In general, the events of default in the indenture governing the
Exchange Notes will be based on those contained in the indenture
governing the 2014 Notes, with changes deemed to be appropriate to
include the following changes to the events of default in the
indenture governing the 2014 Notes:
-- events of default:
-- the event of default relating to the Company and its
restricted subsidiaries' bankruptcy or insolvency will
exclude bankruptcies and insolvencies relating to
Legacy Domestic Subsidiaries; and
-- the event of default relating to judgment events of
default will exclude judgments against the Company or
its restricted subsidiaries with respect to claims,
actions or judgments arising out of or relating to Legacy
Domestic Subsidiaries, including without limitation
claims, actions or judgments arising out of or
relating to the employment of current or former
employees of one or more Legacy Domestic Subsidiaries.
In conjunction with the exchange offer, the Company is soliciting
consents for amendments to the indenture governing the 2014 Notes
to eliminate most restrictive covenants and modify certain events
of default. The Company is offering a consent payment of US$50 in
aggregate principal amount of Exchange Notes for each US$1,000
principal amount (up to US$12.5 million principal amount of
Exchange Notes in the aggregate) of 2014 Notes with respect to
which consents are validly delivered (and not validly revoked)
prior to the Consent Payment Deadline (as defined below), subject
to the terms and conditions of the consent solicitation.
It is a condition to the exchange offer that a majority of the
total outstanding principal amount of 2014 Notes participates in
the consent solicitation, and holders may not tender their 2014
Notes without delivering their consents pursuant to the consent
solicitation and may not deliver consents without tendering their
2014 Notes pursuant to the exchange offer. The tendering of 2014
Notes pursuant to the exchange offer will constitute the consent
of such holder to the proposed amendments.
The exchange offer and consent solicitation will expire at
11:59 p.m., New York City time, on November 25, 2009, unless
extended or earlier terminated. The consent payment deadline is
11:59 p.m., New York City time, on November 10, 2009, unless
extended (such date and time, as the same may be extended, the
"Consent Payment Deadline").
Tenders of 2014 Notes may be validly withdrawn and the concurrent
consents may be validly revoked at any time prior to the Consent
Payment Deadline, but not thereafter unless the exchange offer and
consent solicitation are terminated or the Company is required by
law to grant withdrawal and revocation rights. A valid withdrawal
of tendered 2014 Notes will constitute the concurrent valid
revocation of such holder's related consents, and a valid
revocation of consents will constitute the concurrent valid
withdrawal of such holder's related tendered 2014 Notes.
The exchange offer and consent solicitation for the 2014 Notes is
expected to be made pursuant to an Offering Circular and Consent
Solicitation Statement dated October 28, 2009 and related Letter
of Transmittal and Consent, which more fully set forth the terms
of the exchange offer and consent solicitation.
Consent Solicitation Related to 2024 Notes
The Company is simultaneously soliciting consents for amendments
to the indenture governing the 2024 Notes to modify certain events
of default, including to exclude events of default relating to
bankruptcies and insolvencies of its Legacy Domestic Subsidiaries.
The Company is offering a consent payment in cash of US$2.50 for
each US$1,000 principal amount of 2024 Notes for which valid
consents are received prior to the expiration of the Solicitation
Period (as defined below), subject to the terms and conditions of
the consent solicitation.
Consents that are validly executed from holders owning a majority
in aggregate principal amount outstanding of the 2024 Notes are
required to approve the proposed amendments. Pursuant to certain
Exchange and Consent Agreements and Exchange Agreements, the
Company has secured consents constituting the requisite consents
necessary to amend the indenture governing the 2024 Notes.
The consent solicitation will expire at 11:59 p.m., New York City
time, on November 10, 2009, unless extended or earlier terminated
(such period, as it may be extended, the "Solicitation Period").
The consent solicitation is expected to be made pursuant to a
Consent Solicitation Statement dated October 28, 2009 and related
Letter of Consent, which more fully set forth the terms of the
consent solicitation.
The Company has retained Houlihan Lokey as its exclusive financial
advisor in connection with the exchange offer and consent
About Century Aluminum
Century Aluminum Company owns primary aluminum capacity in the
United States and Iceland. Century's corporate offices are located
in Monterey, California.
* * *
As reported in the Troubled Company Reporter on October 6, 2009,
Moody's Investors Service changed Century Aluminum Company's
probability of default rating to Caa3/LD as Moody's believes that
CENX has completed the first US$15 million exchange of 1.75%
convertible senior notes for a discounted value equivalent to
approximately 1.2 million shares. CENX has announced agreements
to exchange US$83 million aggregate principal for approximately
7.1 million shares, representing discounted values of the debt.
=============
I R E L A N D
=============
DOOLITTLES: Goes Into Liquidation; 34 Jobs Affected
---------------------------------------------------
Paddy Clancy at The Irish Times reports that sandwich company
Doolittles has gone into liquidation, resulting in the loss of 34
jobs.
According to the Irish Times, founder and chief executive Jenni
Timony blamed the recent difficult trading climate for the
company's collapse.
"While some success has been achieved in building the brand and
generating new business, the high cost of doing business combined
with the downward pressure on selling prices has resulted in an
unsustainable tightening of margins," the Irish Times quoted
Ms. Timony as saying.
Citing documents filed at the Companies Office, the Irish Times
discloses Doolittles had total assets less current liabilities of
EUR185,716. It owed creditors EUR586,000, the Irish Times notes.
=========
I T A L Y
=========
CARLA CARINI: Goes Into Liquidation, Ansa Says
----------------------------------------------
Chris Staiti at Bloomberg News, citing Ansa news agency, reports
that Italian fashion company Carla Carini SpA has been placed in
liquidation.
According to Bloomberg, the news agency said Carla Carini is owned
by Bergamo, Italy-based Gruppo Marcovaldo, which bought it a year
ago from siblings Elleno and Carla Gasperini.
===================
K A Z A K H S T A N
===================
CENTRAL ASIA: Creditors Must File Claims by November 5
------------------------------------------------------
Creditors of LLP Central Asia Access have until November 5, 2009,
to submit proofs of claim to:
Tole bi Str. 295
Almaty
Kazakhstan
The Specialized Inter-Regional Economic Court of Almaty commenced
bankruptcy proceedings against the company on July 30, 2009, after
finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of Almaty
Baizakov Str. 273b
Almaty
Kazakhstan
DIVINITY 79: Creditors Must File Claims by November 5
-----------------------------------------------------
Creditors of LLP Divinity 79 have until November 5, 2009, to
submit proofs of claim to:
Tole bi Str. 295
Almaty
Kazakhstan
Tel: 8 701 772 00-03, 8 777 562 62-33
The Specialized Inter-Regional Economic Court of Almaty commenced
bankruptcy proceedings against the company on July 30, 2009, after
finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of Almaty
Baizakov Str. 273b
Almaty
Kazakhstan
GLOBAL TRACE: Creditors Must File Claims by November 5
------------------------------------------------------
LLP Global Trace Development is currently undergoing liquidation.
Creditors have until November 5, 2009, to submit proofs of claim
to:
Dostyk Ave. 43
Almaty
Kazakhstan
IMPERIA LLP: Creditors Must File Claims by November 5
-----------------------------------------------------
Creditors of LLP Information-Commercial Center Imperial have until
November 5, 2009, to submit proofs of claim to:
Almazov Str. 28
Uralsk
West Kazakhstan
Kazakhstan
The Specialized Inter-Regional Economic Court of West Kazakhstan
commenced bankruptcy proceedings against the company on July 28,
2009, after finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of West Kazakhstan
Seifullin Str. 37
Uralsk
West Kazakhstan
Kazakhstan
SCOT HOLLAND ESTATES: Creditors Must File Claims by November 5
--------------------------------------------------------------
LLP Scot Holland Estates is currently undergoing liquidation.
Creditors have until November 5, 2009, to submit proofs of claim
to:
Dostyk Ave. 105
Almaty
Kazakhstan
SCOT HOLLAND PROJECT: Creditors Must File Claims by November 5
--------------------------------------------------------------
LLP Scot Holland Project and Property Management is currently
undergoing liquidation. Creditors have until November 5, 2009, to
submit proofs of claim to:
Dostyk Ave. 105
Almaty
Kazakhstan
TAZA ORTA: Creditors Must File Claims by November 5
---------------------------------------------------
Creditors of LLP Taza Orta Service have until November 5, 2009, to
submit proofs of claim to:
Abai Str. 10a
Atyrau
Kazakhstan
The Specialized Inter-Regional Economic Court of Atyrau commenced
bankruptcy proceedings against the company on July 28, 2009, after
finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of Atyrau
Satpaev Str. 3
Atyrau
Kazakhstan
TRANS GROUP: Creditors Must File Claims by November 5
-----------------------------------------------------
Creditors of LLP Trans Group Semey have until November 5, 2009, to
submit proofs of claim to:
Myzy Str. 2/1
Ust-Kamenogorsk
East Kazakhstan
Kazakhstan
The Specialized Inter-Regional Economic Court of East Kazakhstan
commenced bankruptcy proceedings against the company on May 5,
2009, after finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of East Kazakhstan
Bajov Str. 2
Ust-Kamenogorsk
East Kazakhstan
Kazakhstan
TURAN ESIL: Creditors Must File Claims by November 5
----------------------------------------------------
Creditors of LLP Turan Esil Ltd. have until November 5, 2009, to
submit proofs of claim to:
The Specialized Inter-Regional
Economic Court of South Kazakhstan
Tynybaev Str. 42
Shymkent
South Kazakhstan
Kazakhstan
The court commenced bankruptcy proceedings against the company on
July 29, 2009.
ZAPAD STROY: Creditors Must File Claims by November 5
-----------------------------------------------------
Creditors of LLP Zapad Stroy Comfort have until November 5, 2009,
to submit proofs of claim to:
Almazov Str. 28
Uralsk
West Kazakhstan
Kazakhstan
The Specialized Inter-Regional Economic Court of West Kazakhstan
commenced bankruptcy proceedings against the company on July 28,
2009, after finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of West Kazakhstan
Seifullin Str. 37
Uralsk
West Kazakhstan
Kazakhstan
===================
K Y R G Y Z S T A N
===================
BISHKEK COUNTRY: Creditors Must File Claims by November 11
----------------------------------------------------------
LLC Bishkek Country Club is currently undergoing liquidation.
Creditors have until November 11, 2009, to submit proofs of claim
to:
Inquiries can be addressed to (0-543) 91-98-87.
RASSVET SERVICE: Creditors Must File Claims by November 11
----------------------------------------------------------
Representation of LLC Rassvet Service Ltd. is currently undergoing
liquidation. Creditors have until November 11, 2009, to submit
proofs of claim to:
Lev Tolstoy Str. 210
Bishkek
Kyrgyzstan
Tel: (0-555) 95-13-70
STILL TRADE: Creditors Must File Claims by November 11
------------------------------------------------------
LLC Still Trade is currently undergoing liquidation. Creditors
have until November 11, 2009, to submit proofs of claim to:
Inquiries can be addressed to (+996 312) 61-17-31.
SUAR OSH: Creditors Must File Claims by November 11
---------------------------------------------------
LLC Suar Osh Trans is currently undergoing liquidation. Creditors
have until November 11, 2009, to submit proofs of claim to:
Inquiries can be addressed to (0-555) 08-39-99.
===================
L U X E M B O U R G
===================
BEVERAGE PACKAGING: Moody's Downgrades Corp. Family Rating to 'B2'
------------------------------------------------------------------
Moody's Investors Service downgraded the Corporate Family Rating
of Beverage Packaging (Lux) I S.A to B2 from B1. The rating
outlook is stable.
The proposed senior secured notes (US$1,125 million and EUR450
million) and senior secured credit facilities (term loans:
US$1,035 million and EUR250 million; revolving credit facilities:
US$120 million and EUR80 million) have been assigned a provisional
(P)B1 rating. The B2 rating on the existing EUR480 million senior
notes and the B3 rating on the EUR420 million senior subordinated
notes were downgraded to Caa1. The ratings on the group's
existing senior secured credit facilities were downgraded to Ba2
and will be withdrawn once refinanced by the proposed senior
secured debt.
The rating action is consistent with Moody's earlier expectations
communicated on October 15 when the Corporate Family Rating was
placed under review for possible downgrade. The conclusion of the
review reflects Moody's opinion that the transaction will very
likely be completed as planned.
The downgrade of the Corporate Family Rating reflects the increase
of leverage ratios once the envisaged acquisition of Closure
Systems International and Reynolds Consumer Packaging has been
finalized. Although Beverage Packaging's so far resilient
earnings performance allowed for a notable de-leverage following
the buyout by Rank Group in 2007, the acquisition of CSI and
Reynolds Consumer at least delays the expected de-leverage
incorporated in the previous B1 rating which was an important
consideration for the downgrade to B2. At the same time Moody's
acknowledges the enhanced diversification through the planned
acquisition, but sees this balanced by the -- in Moody's view --
somewhat weaker businesses of CSI and Reynolds Consumer compared
to Beverage Packaging's existing activities. Moody's also
cautions that the recessionary environment could still unfold a
more severe impact on volumes and notes that the resilient
performance in 2009 has also been supported by a notable tailwind
from reduced raw material cost.
The provisional (P)B1 rating for the proposed senior secured notes
and senior secured credit facilities is one notch above the CFR
given the comprehensive guarantee and security package. The
proposed senior secured notes and senior secured credit facilities
will benefit from senior guarantees of operating subsidiaries
representing at least 80% of consolidated assets and EBITDA. The
proposed senior secured notes and senior secured credit facilities
are further supported by a first priority security interest which
Moody's understands comprises the clear majority of the
guarantors' assets. The existing guarantees for the existing
senior notes and senior subordinated notes are on a senior
subordinated and subordinated basis, respectively. As the
existing senior notes and the senior subordinated notes do not
benefit from tangible collateral and given the subordination of
the guarantees, Moody's rates the existing bonds below the CFR at
Caa1. Given the higher portion of senior secured debt ranking
ahead, the notching for the EUR 480 million senior notes has
widened by one notch. The instrument ratings are in line with
Moody's Loss Given Default Methodology.
Downgrades:
Issuer: Beverage Packaging Holdings (Lux) II S.A.
-- Senior Subordinated Regular Bond/Debenture, Downgraded to
Caa1, LGD6, 93% from B3, LGD5, 86%
-- Senior Unsecured Regular Bond/Debenture, Downgraded to Caa1,
LGD5, 84% from B2, LGD4, 57%
Issuer: Beverage Packaging Holdings I S.A.
-- Probability of Default Rating, Downgraded to B2 from B1
-- Corporate Family Rating, Downgraded to B2 from B1
-- Senior Secured Bank Credit Facility, Downgraded to Ba2 from
Ba1
Assignments:
Issuer: Beverage Packaging Holdings I S.A.
-- Senior Secured Bank Credit Facility, Assigned 36 - LGD3,
(P)B1
-- Senior Secured Regular Bond/Debenture, Assigned 36 - LGD3,
(P)B1
Outlook Actions:
Issuer: Beverage Packaging Holdings (Lux) II S.A.
-- Outlook, Changed To Stable From Rating Under Review
Issuer: Beverage Packaging Holdings I S.A.
-- Outlook, Changed To Stable From Rating Under Review
The last rating action was implemented on October 15, 2009, when
the B1 Corporate Family Rating was placed under review for
possible downgrade.
CSI is a global supplier of plastic closures mainly for the
beverage, dairy and food segment. The company also manufactures
aluminum closures and capping equipment. Reynolds Consumer is a
leading manufacturer of consumer food storage products in North
America. The company manufactures household products such as
aluminum foil, wraps, bags and wax paper.
Beverage Packaging Holdings, through its operating companies under
SIG Combibloc Group AG, focuses on aseptic packaging products for
the food and beverage industries. In fiscal year 2008, the
company generated revenues of approximately EUR1.25 billion with a
workforce of about 4,400 people. In May 2007, SIG was acquired by
Rank Group Holdings of New Zealand for a total compensation of
EUR1.8 billion.
Pro forma for the acquisition the combined group generated
revenues and adjusted pro forma EBITDA of EUR2,918 million and
EUR599 million, respectively, for the LTM period ended June 2009.
=====================
N E T H E R L A N D S
=====================
ING GROEP: Moody's Downgrades Insurance Financial Strength Ratings
------------------------------------------------------------------
Moody's Investors Service downgraded the insurance financial
strength ratings of ING's U.S. life insurance operating companies
to A2 from A1 and the senior debt of ING Verzekeringen N.V. to
Baa1 from A2. The short term P-1 debt rating for ING Insurance
was also downgraded to P-2. These actions conclude the review for
possible downgrade initiated on September 21, 2009, and the
ratings now carry a developing outlook.
The C+ bank financial strength rating, the Aa3 senior debt ratings
of ING Bank N.V. and the A1 senior debt rating of ING Groep N.V.
remain on review for possible downgrade, as do ratings of certain
ING Bank's subsidiaries. These ratings were placed on review last
September 21, 2009.
Moody's changed the review direction to uncertain from possible
downgrade on the Ba1 ratings for the preference stocks of ING
Group, the subordinated debt securities of ING Verzekeringen N.V.
and the preferred stocks of Equitable of Iowa Companies Capital
Trust II. The review direction on the B1 trust preferred
securities of ING Capital Funding Trust III was also changed to
uncertain from possible downgrade.
Moody's rating actions follows the recent announcement by ING
Group of its intention to divest its insurance operations within
the next four years -- to be executed through IPOs, sales or a
combination thereof -- as a part of its final restructuring plan
filed with the European Commission ("EC"). The management views
the disposal of the insurance operations as instrumental for the
simplification of the group, the repayment of the Dutch State and
the elimination of group double leverage while minimizing the
dilution for shareholders.
The group also announced its intention to repay EUR5 billion of
core Tier I securities to the Dutch State in December 2009 and the
revision of the terms in respect of the Alt-A Back-up facility
provided by the Dutch State at the beginning of this year. As
concerns the core Tier I securities, ING has reached an agreement
with the Dutch State to alter the repayment terms for these
securities to facilitate early repayment of half of the
EUR10 billion received from the State. Under the agreement, ING
can repurchase the first EUR5 billion of the securities at the
issue price plus the accrued coupon and a repayment premium for a
total maximum repayment amount of EUR6 billion. As concerns the
Alt-A Back-up facility, ING has agreed to make additional payments
to the Dutch State corresponding to an adjustment of fees; in
total, these extra payments will result in a net present value of
EUR1.3 billion pre-tax, which will be booked in the fourth quarter
of 2009.
In order to finance the repayment of the core Tier 1 securities as
well as to mitigate the capital impact of the additional payments
for the Alt-A Back-up facility, ING announced its plan to launch a
fully underwritten rights issue of up to EUR7.5 billion to be
carried out after the Extraordinary General Meeting of
Shareholders to be held on November 25, 2009.
Finally, the group also announced that it does not expect to be
subjected by the European Commission to a mandatory deferral of
coupon payments on hybrid securities. Nevertheless ING will
consult the EC before taking any further repayment or calling
decisions for Tier 1 and Tier 2 capital.
ING Insurance Ratings
On the downgrade of the US Insurance ratings (IFSR to A2 from A1),
Moody's cited that the revised ratings reflect the removal of
Group support previously attributed to the US operations, in light
of its planned divestiture. The revised strategy represents a
variation from the one announced by the management last April 2009
when the main insurance operations were considered to be a core
part of the group strategy.
"Although ING Group remains committed to supporting its US
insurance operations while it continues to own them, the ratings
now reflect their stand-alone credit profile and the fact that the
US operations are no longer strategically core to the group," said
Laura Bazer, Senior Credit Officer and lead analyst for ING
Insurance US.
Moody's added that the EC restructuring constraints could
potentially hinder ING's ability to make additional significant
capital contributions to maintain ING US' capital at prior levels,
should this be required in the future. Growing asset losses,
tighter liquidity and variable annuity-related earnings pressures
had caused Moody's to lower ING US' ratings in January 2009.
Commenting on the developing outlook for ING US, the rating agency
said that it reflects the possibility that a business sale over
time to a higher rated buyer could lead to an upgrade while a sale
to a lower rated buyer could lead to a downgrade. In addition,
ING US's ratings are at risk due to the potential for business
erosion and/or capital pressure prior to an ultimate sale, in the
event that the waiting times until divestiture are prolonged
and/or delayed.
Commenting on the downgrade of ING Insurance (senior to Baa1 from
A2), the intermediate holding company for the insurance
subsidiaries, Moody's said that the current lower rating reflects
the standalone credit profile of the insurance holding company --
excluding Group support -- and the more limited geographical
diversification of the insurance group that is likely to result
from the disposal of some operations. The developing outlook
reflects the potential for positive rating pressure, in the event
of the acquisition of the insurance group by a stronger entity, or
negative rating pressure if the credit profile of the group
weakens through subsidiary sales and/or deterioration of the
remaining insurance subsidiaries' credit profiles.
ING Bank Ratings
ING Bank's ratings remain on review for possible downgrade where
they were placed last September 21, 2009. The review on the BFSR
reflects Moody's expectations of continued earnings and capital
pressure at the bank through continuous elevated levels of loan
losses against the background of the depressed economic
environment. As a consequence, ING Bank has rather weak prospects
of regaining its earlier financial strength and flexibility, which
has been materially weakened by the global crisis. The review
will also consider the potential impact of the Group's
restructuring on ING Bank's franchise and profitability going
forward.
The long-term debt and deposit ratings remain on review for
possible downgrade as a direct consequence of the review on the
BFSR. Moody's view that the bank benefits from "very high"
systemic support has been confirmed and, as a consequence, the
long-term debt and deposit ratings continue to benefit from a very
high probability of systemic support. Nonetheless, the review
reflects the uncertainty about the extent of the restructuring of
the bank in the coming months.
ING Group Ratings
ING Group's senior ratings remain on review for possible downgrade
where they were placed last September 21, 2009. Going forward,
ING Group will be the holding company of ING Bank and its
subsidiaries, and Moody's senior ratings of ING Group currently
reflect Moody's standard notching for bank holding companies
relative to ING Bank's senior rating. The review of ING Group's
ratings is therefore a direct consequence of the rating review on
ING Bank.
Moody's notes however that, although double leverage at ING Group
remained elevated and was close to 140% at year-end 2008, this is
expected to decrease considerably in the next few years with the
repayment of group debt via the proceeds from disposals of the
insurance operations.
"The announced rights issue to replace EUR5 billion of core Tier 1
securities received from the Dutch State at the group level is
also viewed as beneficial from a quality of capital perspective"
added Antonello Aquino, Senior Credit Officer and lead analyst for
ING Group, "and is considered as a positive step to accelerate the
complete repayment of the Dutch State".
Hybrids
The review direction on various hybrid ratings was changed to
uncertain from possible downgrade where they were placed last
August 20, 2009. The action reflects the EC's decision not to
force coupon deferral on these securities as a part of its
approval of ING's State-aid package; nevertheless, Moody's expects
that, given the current restructuring situation of the group,
there is still a moderate risk of coupon deferral on these
securities.
Ratings Affected
These ratings were downgraded and their outlook revised to
developing from on review for possible downgrade:
-- ING Verzekeringen N.V.: senior debt rating to Baa1 from A2,
short-term rating for commercial paper to Prime-2 from Prime-
1;
-- ING Life Insurance & Annuity Company: insurance financial
strength rating to A2 from A1;
-- ING USA Annuity and Life Insurance Company: insurance
financial strength rating to A2 from A1;
-- Reliastar Life Insurance Company: insurance financial strength
rating to A2 from A1;
-- Reliastar Life Insurance Company of New York: insurance
financial strength rating to A2 from A1;
-- Lion Connecticut Holdings, Inc.: unguaranteed senior unsecured
debt rating to Baa2 from A3; long-term issuer rating to Baa2
from A3;
-- ING America Insurance Holdings, Inc.: senior debt rating
(guaranteed by ING Verzekeringen N.V.) to Baa1 from A2,
short-term rating for commercial paper rating (guaranteed by
ING Verzekeringen N.V.) to Prime-2 from Prime-1;
-- ING USA Global Funding Trusts 1-3: senior secured debt rating
to A2 from A1;
-- ING Security Life Institutional Funding: senior secured debt
rating to A2 from A1;
-- Security Life of Denver Insurance Company: insurance financial
strength rating to A2 from A1;
The review direction on these ratings was changed to uncertain
from review for possible downgrade:
-- ING Groep N.V.: the Ba1 Cumulative perpetual preference stocks
with optional coupon deferral provision;
-- ING Verzekeringen N.V.: the Ba1 Cumulative dated subordinated
debt securities with optional coupon deferral provision;
-- Equitable of Iowa Companies Capital Trust II: the Ba1
Cumulative preferred stock with optional coupon deferral
provision;
-- ING Capital Funding Trust III (guaranteed by ING Groep N.V.):
the B1 Non-Cumulative trust preferred securities
All other ratings and outlooks remain unaffected by this rating
action.
On September 21, 2009, Moody's Investors Service placed on review
for possible downgrade the C+ BFSR of ING Bank N.V. and its Aa3
long-term senior debt ratings. Moody's also placed on review for
possible downgrade the A2 senior debt of ING Verzekeringen N.V.
and the A1 senior debt rating of ING Groep N.V. The A1 insurance
financial strength ratings of ING's U.S. life insurance operating
companies were also placed on review. The short term P-1 rating
for ING Bank was affirmed; the short term P-1 debt rating for ING
Insurance was placed on review.
On August 20, 2009, Moody's Investors Service downgraded the
preference stocks of ING Groep N.V. to Ba1 from A3. Moody's also
downgraded the subordinated debt securities of ING Verzekeringen
N.V. to Ba1 from A3, the trust preferred securities of ING Capital
Funding Trust III to B1 from A3 and the preferred stocks of
Equitable of Iowa Companies Capital Trust II to Ba1 from Baa1.
The ratings for these securities remained under review for
possible further downgrade
The ratings of bank subordinated capital securities are assigned
in line with Moody's existing methodology entitled "Guidelines for
Rating Bank Junior Securities", dated April 2007. Moody's notes
that it released a Request for Comment on June 16, 2009 in which
it has requested market feedback on potential changes to its
rating methodology for bank subordinated capital. If the revised
methodology is implemented as proposed, the rating on bank
subordinated capital securities may be affected. Refer to Moody's
Request for Comment, entitled "Moody's Proposed Changes to Bank
Subordinated Capital Ratings", for further details regarding the
implications of the proposed methodology changes on Moody's
ratings.
Based in Amsterdam, ING Groep N.V. had total assets amounting to
EUR1,188 billion at end-June 2009 and reported a net loss of
EUR722 million for the six months ending June 2009.
Based in Amsterdam, ING Banking activities had total assets
amounting to EUR912 billion at end-June 2009 and its Tier 1 ratio
stood at 9.4%, on a Basel II basis. In H1 2009, its net profit
stood at EUR206 million.
The insurance activities of ING Groep had total assets amounting
to EUR287 billion at end-June 2009 and the insurance capital
coverage ratios for insurance activities was 257%. In H1 2009,
the insurance activities of ING Groep reported a net loss of
EUR955 million.
LYONDELL CHEMICAL: To Have Limited Examiner’s Investigation
-----------------------------------------------------------
U.S. Bankruptcy Judge Robert E. Gerber approved an examiner with a
limited budget and scope to conduct a probe on Lyondell Chemical
Co. The examiner will have a US$200,000 budget and required
filing the final report within 30 days of appointment.
Judge Gerber, according to Bloomberg's Bill Rochelle, noted that
bankruptcy law forces him to appoint an examiner on request of any
creditor whenever there is more than US$5 million in debt, even if
the judge believes no examiner is necessary.
The Official Committee of Unsecured Creditors in Lyondell's cases
asked the Bankruptcy Court to order the appointment of an examiner
to investigate whether Len Blavatnik and the lenders from the
chemical maker's 2007 buyout are unfairly influencing its
bankruptcy.
The Creditors Committee asserts that Lyondell needs an independent
examiner because Mr. Blavatnik, chairman of Access Industries
Holding LLC, still controls the Company. The examiner, according
to the panel, should probe why the Company wouldn't refinance its
$8 billion bankruptcy loan, and how Mr. Blavatnik and lenders who
worked with him in 2005 will also fund a rights offering that
includes a "forced settlement" of the creditors' lawsuit against
them. The U.S. trustee supported the Creditors Committee's call
to appoint an examiner in the Chapter 11 cases.
The Debtors ceded to the Court's view that appointment of an
examiner is mandatory. However, the Debtors urge the Court to
limit the scope of the examiner's appointment to this area of
inquiry: whether or not the Debtors and their professionals have
used and are using customary and appropriate processes with
respect to soliciting equity sponsorship proposals and selecting
an equity sponsorship proposal.
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: Plan Outline Hearing Postponed to Dec. 4
-----------------------------------------------------------
Bill Rochelle at Bloomberg News, the hearing for approval of the
disclosure statement explaining the Chapter 11 plan for Lyondell
Chemical Co. has been postponed, for the second time, for Dec. 4.
The hearing on the plan outline was originally set for Oct. 14,
then moved to November 4. The Debtors can begin soliciting votes
on the Plan following approval of the Disclosure Statement.
The Debtors filed its Plan on September 11, 2009, that
rationalizes their balance sheet and incorporates a restructuring
that accomplishes two goals:
(1) structuring the postpetition enterprise in a way to
maximize tax, reporting, and systems efficiencies, and
allow for tradable equity; and
(2) limiting or eliminating the impact of guarantees issued by
non-filing European entities and discharge obligations of
European entities with respect to a certain "Bridge Loan
Agreement" and "2015 Notes."
LyondellBasell will still be in the same industries and have most
of its key executives based in Houston, but it will be
incorporated in the Netherlands rather than Luxembourg.
A full-text copy of the Debtors' Joint Plan is available for free
at http://bankrupt.com/misc/Lyondell_Sept11JointReorgPlan.pdf
A full-text copy of the Debtors' Disclosure Statement is
available for free at:
http://bankrupt.com/misc/Lyondell_Sept11DisclosureStat.pdf
However, lawsuits that could affect recovery by creditors have
delayed the plan approval process.
The Creditors Committee has commenced a lawsuit against Citibank
N.A., Deutsche Bank, and other banks that funded the 2007
acquisition of Lyondell Chemical Company by Basell AF S.C.A.
Having accumulated heavy debt because of the merger,
LyondellBasell was in a full-blown liquidity crisis and was
running out of money to fund its operations only three months
following the merger. The Creditors Committee asserted claims of,
among other things, fraudulent transfer, breach of fiduciary duty,
avoidance of unperfected senior liens. The first phase of a
three-part trial on the committee's suit is scheduled
to begin Dec. 1.
The Bank of New York Mellon and the Bank of New York Mellon Trust
Company, N.A., as indenture trustee for the holders of certain
notes aggregating (i) US$100 million issued by Lyondell Chemical
Company, as predecessor-in-interest of ARCO Chemical Chemical
Company, and (ii) US$225 million issued by Equistar Chemicals, LP,
have also sued the secured lenders for the 2007 LBO.
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)
MALIN CLO: Moody's Cuts Rating on Class E Notes to 'Caa3'
---------------------------------------------------------
Moody's Investors Service took these rating actions on notes
issued by Malin CLO BV:
The Variable Funding Notes and the Class A-1a Notes remain Aaa.
-- EUR47M Class A-1b First Priority Senior Secured Floating Rate
Notes due May 7, 2023, Downgraded to Aa2; previously on
March 4, 2009 Aaa Placed Under Review for Possible Downgrade
-- EUR32.5M Class B Second Priority Deferrable Secured Floating
Rate Notes due May 7, 2023, Downgraded to A3; previously on
March 4, 2009 Aa2 Placed Under Review for Possible Downgrade
-- EUR25M Class C Third Priority Deferrable Secured Floating
Rate Notes due May 7, 2023, Downgraded to Ba1; previously on
March 17, 2009 Downgraded to Baa3 and Remained On Review for
Possible Downgrade
-- EUR35M Class D Fourth Priority Deferrable Secured Floating
Rate Notes due May 7, 2023, Confirmed at B1; previously on
March 17, 2009 Downgraded to B1 and Remained On Review for
Possible Downgrade
-- EUR18.75M Class E Fifth Priority Deferrable Secured Floating
Rate Notes due May 7, 2023, Downgraded to Caa3; previously
on March 17, 2009 Downgraded to Caa1 and Remained On Review
for Possible Downgrade
This transaction is a managed cash leveraged loan collateralized
loan obligation with exposure to predominantly European senior
secured loans, as well as some mezzanine loan exposure (currently
15%).
The rating actions reflect Moody's revised assumptions with
respect to default probability and the calculation of the
diversity score as described in the press release dated
February 4, 2009, titled "Moody's updates key assumptions for
rating CLOs." These revised assumptions have been applied to all
corporate credits in the underlying portfolio, the revised
assumptions for the treatment of ratings on "Review for Possible
Downgrade", "Review for Possible Upgrade", or with a "Negative
Outlook" being applied to those corporate credits that are
publicly rated.
Moody's also notes that a material proportion of the collateral
pool consists of debt obligations whose credit quality has been
assessed through Moody's credit estimates. As credit estimates do
not carry credit indicators such as ratings reviews and outlooks,
a stress of a quarter notch-equivalent assumed downgrade was
applied to each of these credit estimates.
According to Moody's, the rating actions taken on the notes are
also a result of credit deterioration of the underlying portfolio.
This is observed through a decline in the average credit rating as
measured through the portfolio weighted average rating factor
'WARF' (currently 2642 with a covenant at maximum 2455), an
increase in the amount of defaulted securities (currently 7% of
the portfolio), an increase in the proportion of securities from
issuers rated (or which have a credit estimate consistent with)
Caa1 and below (currently 9.5% of the portfolio), and a failure of
the Class E par value test. These measures were taken from the
recent trustee report dated 28 August 2009. Moody's also
performed a number of sensitivity analyses, including
consideration of a further decline in portfolio WARF quality. Due
to the impact of all the aforementioned stresses, key model inputs
used by Moody's in its analysis, such as par, weighted average
rating factor, and weighted average recovery rate, may be
different from trustee's reported numbers.
The rating actions on the Variable Funding Notes, Class A-1a and
A-1b Notes (together the "Senior Notes") were also impacted by a
correction by Moody's in the way the priority of payments was
modelled. For the purpose of monitoring this transaction, the
Senior Notes were modelled sequentially with different priority
level assumptions, based on the terms and conditions of the notes.
These provisions set out that (i) the Variable Funding Notes are
redeemed in priority to other Senior Notes between payment dates
but rank pari passu with the Class A-1a Notes on payment dates,
and (ii) the Class A-1a Notes rank senior in right of payment to
any amounts (whether interest of principal) due to the Class A-1b.
This corrects the way the priority of payments was modelled by
Moody's in assigning the original public ratings on the notes,
where the Senior Notes were considered as if payments on such
notes would be made prorata and pari passu. The rating action on
the Senior Notes reflects, amongst others, the impact of this
remodelling which is one notch positive to the VFN and Class A-1a
(since it increases the credit enhancement) and one notch
detrimental to the Class A-1b. Other classes of notes are not
impacted by this correction.
In addition to the quantitative factors that are explicitly
modelled, qualitative factors are part of the rating committee
considerations. These qualitative factors include the structural
protections in each transaction, the recent deal performance in
the current market environment, the legal environment, specific
documentation features, the collateral manager's track record, and
the potential for selection bias in the portfolio. All
information available to rating committees, including
macroeconomic forecasts, input from other Moody's analytical
groups, market factors, and judgments regarding the nature and
severity of credit stress on the transactions, may influence the
final rating decision.
===========
R U S S I A
===========
ADMILON LLC: Creditors Must File Claims by November 4
-----------------------------------------------------
Creditors of LLC Admilon (TIN 7310101266, PSRN 1067310002055)
(Construction Materials Plant) have until November 4, 2009, to
submit proofs of claims to:
I .Oreshkin
Insolvency Manager
Post User Box 602
603000 Nizhny Novgorod
Russia
The Arbitration Court of Ulyanskaya commenced bankruptcy
proceedings against the company after finding it insolvent. The
case is docketed under Case No. ?72–8497/2009.
The Debtor can be reached at:
LLC Admilon
Pochtovaya Str. 15
Mullovka
Melekesskiy
Ulyanovskaya
Russia
ALEKS-DI CJSC: Creditors Must File Claims by November 4
-------------------------------------------------------
Creditors of CJSC Aleks-Di (TIN 5035020945) (Construction) have
until November 4, 2009, to submit proofs of claims to:
O. Yershov
Insolvency Manager
Apt. 4
Building 1
B. Kornilova Str. 7
603106 Velikiy Novgorod
Russia
The Arbitration Court of Moskovskaya commenced bankruptcy
proceedings against the company after finding it insolvent. The
case is docketed under Case No. ?41–1108/09.
The Debtor can be reached at:
CJSC Aleks-Di
Bolshaya Pokrovskaya Str. 35
Pavlovskiy Posad
Moskovskaya
Russia
ANOSOVSKIY LES: Creditors Must File Claims by November 4
--------------------------------------------------------
Creditors of LLC Anosovskiy Les-Prom-Khoz (TIN 3806001975, PSRN
1043800984677) (Forestry) have until November 4, 2009, to submit
proofs of claims to:
A. Chemyakin
Insolvency Manager
Post User Box 281
K. Marksa Str. 26B
664003 Irkutsk
Russia
The Arbitration Court of Irkutskaya commenced bankruptcy
proceedings against the company after finding it insolvent. The
case is docketed under Case No. ?19–1567/09–68-71.
The Debtor can be reached at:
LLC Anosovskiy Les-Prom-Khoz
Office 2
Pervomayskaya Str.11
Anosovo
Ust'-Udinskiy
666372 Irkutskaya
Russia
BELGOROD-ELEVATOR: Creditors Must File Claims by November 4
-----------------------------------------------------------
Creditors of OJSC Belgorod-Elevator-Stroy (TIN 3125008280)
(Construction) have until November 4, 2009, to submit proofs of
claims to:
A. Kovalevskiy
Insolvency Manager
Office 307
N/Chumichova Str. 38
308000 Belgorod
Russia
The Arbitration Court of Belgorodskaya commenced bankruptcy
proceedings against the company after finding it insolvent. T he
case is docketed under Case No. ??8–9146/2008–14-11B.
The Debtor can be reached at:
OJSC Belgorod-Elevator-Stroy
Rabochaya Str. 2
Belgorod
308017 Belgorodskaya
Russia
KHIM-PROM: Tatarstan Bankruptcy Hearing Set November 5
------------------------------------------------------
The Arbitration Court of Tatarstan will convene at 1:00 p.m. on
Nov. 5, 2009 to hear bankruptcy supervision procedure on LLC
Khim-Prom-Stroy (TIN 1616012608, RVC 161601001, PSRN
1041601000210) (Construction). The case is docketed under
Case No. ?65–8394/2009-SG4–40.
The Temporary Insolvency Manager is:
M. Mishina
Chetaeva Str. 48-110
Kazan
420126 Tatarstan
Russia
The Court is located at:
The Arbitration Court of Tatarstan
Courtroom 29
Building 1
Kremlin
Kazan
Tatarstan
Russia
The Debtor can be reached at:
LLC Khim-Prom-Stroy
Tsentralnaya Str. 3a
Vysokogorskiy
Tatarstan
Russia
MORDOVA-AGRO-STROY: Creditors Must File Claims by November 4
------------------------------------------------------------
Creditors of OJSC Mordova-Agro-Stroy (TIN 1326143052, RVC
132601001, PSRN 1021300979204) (Construction) have until
November 4, 2009, to submit proofs of claims to:
A. Lisitsin
Insolvency Manager
Prospect Lenina 13a
Saransk
430000 Mordovia
Russia
The Arbitration Court of Mordovia commenced bankruptcy proceedings
against the company after finding it insolvent. The case is
docketed under Case No. ?39–523/2009.
The Court is located at:
The Arbitration Court of Mordovia
Kommunisticheskaya Str. 33
430000 Mordovia
Russia
The Debtor can be reached at:
OJSC Mordova-Agro-Stroy
Proletarskaya Str. 130
Sarask
Mordovia
Russia
NAVASHINSKIY LES: Creditors Must File Claims by November 4
----------------------------------------------------------
Creditors of LLC Navashinskiy Les-Prom-Khoz (TIN 5223033150, PSRN
1045206732427) (Forestry) have until November 4, 2009, to submit
proofs of claims to:
V. Veselov
Insolvency Manager
Office 202
Strelka Str. 4a
603086 Nizhny Novgorod
Russia
The Arbitration Court of Nizhegorodskaya commenced bankruptcy
proceedings against the company after finding it insolvent. The
case is docketed under Case No. ?43–5774/2009 26–57.
The Debtor can be reached at:
LLC Navashinskiy Les-Prom-Khoz
Zavodskaya Str. 1
Tesha
Navashinskiy
607125 Nizhegorodskaya
Russia
ORIMEKS-SUVAR LLC: Creditors Must File Claims by November 4
-----------------------------------------------------------
Creditors of LLC Orimeks-Suvar Construction Company (TIN
1655059159, PSRN 1021602854460, RVC 165501001) have until
November 4, 2009, to submit proofs of claims to:
Sh.Garipov
Insolvency Manager
Post User Box 16
420073 Kazan
Tatrstan
Russia
The Arbitration Court of Tatarstan commenced bankruptcy
proceedings against the company after finding it insolvent. The
case is docketed under Case No. ?65–1000/2009-SG4–27.
The Debtor can be reached at:
LLC Orimeks-Suvar
Spartakovskaya Str.6
420107 Kazan
Tatarstan
Russia
PROM-STROY LLC: Creditors Must File Claims by November 4
--------------------------------------------------------
Creditors of LLC Prom-Stroy (TIN 2205003944, PSRN 1022200706219)
(Construction) have until November 4, 2009, to submit proofs of
claims to:
A. Voroshilova
Insolvency Manager
Office 3
Profinterna Str. 39
656002 Barnaul
Russia
Tel: (3852) 615993
The Arbitration Court of Altayskiy commenced bankruptcy
proceedings against the company after finding it insolvent. The
case is docketed under Case No. ?03–7673/2009.
The Debtor can be reached at:
LLC Prom-Stroy
Promyshlennaya Str. 40
Zarinsk
Altayskiy
Russia
RBC INFORMATION: Lenders Back Debt US$208 Mln Debt Restructuring
----------------------------------------------------------------
Maria Kolesnikova at Bloomberg News, citing Kommersant, reports
that OAO RBC Information Systems has agreed with creditors to
restructure US$208 million in debt.
Bloomberg relates the newspaper said RBC Information will convert
half of the debt into five-year bonds with a 7% coupon. According
to Bloomberg, Kommersant said the rest will either be repaid or
converted into eight-year bonds with a 6 percent coupon.
Headquartered in Moscow, Russia, OAO RBC Information Systems --
http://www.rbcinfosystems.com/-- provides advertising services,
software development and information services.
ROSSIYANKA OJSC: Creditors Must File Claims by November 4
---------------------------------------------------------
Creditors of OJSC Rossiyanka (Macaroni Factory) have until
November 4, 2009, to submit proofs of claims to:
Yu. Berestnev
Insolvency Manager
Apt. 50
Krasnodonskaya Str. 63
443035 Samara
Russia
The Arbitration Court of Chuvashia commenced bankruptcy
proceedings against the company after finding it insolvent. The
case is docketed under Case No. ?79–1543/2009.
The Debtor can be reached at:
OJSC Rossiyanka
Promyslennya Str.27
Novocheboksarsk
Chuvashia
Russia
SERPUKHOVSKAYA PAPER: Creditors Must File Claims by November 4
--------------------------------------------------------------
Creditors of OJSC Serpukhovskaya Paper Factory have until
November 4, 2009, to submit proofs of claims to:
S. Romanchin
Temporary Insolvency Manager
3-ya Kurskaya Str. 15
302004 Orel
Russia
The Arbitration Court of Moskovskaya commenced bankruptcy
supervision procedure. The case is docketed under Case No. ?41–
2409/08.
The Debtor can be reached at:
OJSC Serpukhovskaya Paper Factory
Proletarskaya Str.134
Serpukhov
Serpukhovskiy
142201 Moskovskiy
Russia
SHALINSKIY REINFORCED: Creditors Must File Claims by November 4
---------------------------------------------------------------
Creditors of OJSC Shalinskiy Reinforced Concrete Structures Plant
have until November 4, 2009, to submit proofs of claims to:
M. Sardalov
Temporary Insolvency Manager
Groznenskiy pereulok 5
Shali
366300 Chechnya
Russia
The Arbitration Court of Chechnya will convene at 10:00 a.m. on
November 5, 2009, to hear bankruptcy supervision procedure. The
case is docketed under Case No. ?77–804/09.
The Debtor can be reached at:
OJSC Shalinskiy Reinforced Concrete Structures Plant
Naberezhnaya Str.
Shali
Shalinskiy
366816 Chechnya
Russia
SISTEMA-HALS JSC: Fitch Junks Issuer Default Ratings from 'B-'
--------------------------------------------------------------
Fitch Ratings has downgraded Russian property developer JSC
Sistema-Hals' Long-term Issuer Default Rating to 'CCC' from 'B-'.
Fitch has simultaneously downgraded SH's Short-term IDR to 'C'
from 'B' and removed the Rating Watch Negative. The National
Long-term rating is downgraded to 'B-(rus)' from 'BB-(rus)'. The
Long-term IDR and National Long-term rating remain on RWN.
The rating action reflects a recently obtained clarification on
parental support for SH from its major shareholders, Bank VTB JSC
(rated 'BBB'/Negative) and Sistema Joint Stock Financial Corp.
(rated 'BB-'/Stable), and the company's ongoing weak underlying
trading profile. SH's ratings now benefit from a two notch uplift
over the company's standalone risk profile due to expected
parental support from VTB. Fitch had previously downgraded SH's
Long-term IDR on October 16 to 'B-' from 'B' and placed the rating
on RWN due to the company's weakened underlying trading profile
and because of uncertainty over the level of support which may be
forthcoming from SH's main shareholders.
The rating remains on RWN to reflect Fitch's view that a coercive
debt exchange, for example the occurrence of a debt-for-equity
swap or the repayment of creditors at less than par, remains a
real possibility for some time due to SH's currently unsustainable
level of debt. The occurrence of a CDE would likely result in a
downgrade of SH's rating to Restricted Default.
Due to a lack of cash resources, SH was unable to meet a scheduled
coupon payment of RUR200 million (US$7 million) on October 13,
2009 on its RUR3 billion (US$100 million) Series 1 rouble bond,
maturing 2014, and entered into a grace period. However, Fitch
understands that the coupon payment has since been made. SH also
recently confirmed that it had entered into a grace period until
February 2010 in relation to interest payments under its US$775
million (equivalent) of debt to VTB. Both events demonstrate SH's
current inability to cover its financial obligations with its own
internal resources. Even if SH is somehow able to fund its
ongoing external debt obligations, the company will still require
a material amount of new funding to build-out and maximize the
value of its existing real estate projects. Fitch is of the
opinion that attracting such funding will remain a significant
challenge.
SH's financial difficulties stem from its excessive leverage and
the rapid downturn in the Moscow real estate market. The
deterioration in SH's standalone profile is indicated by weak
reported H109 results, with LTM revenues down 61% yoy and LTM
EBITDA down 88%. As a result, SH's credit metrics have weakened
materially, with net debt/LTM EBITDA standing at 71.7x (6.6x at
H108) and LTM EBITDA interest cover at 0.2x (3.2x).
As announced in April 2009, VTB may become the majority
shareholder of SH should it exercise a call option to increase its
shareholding to 51% from a current 19.5%. VTB has previously
indicated that it intends to exercise this call option and has
until April 2010 to do so. SH's ratings could be upgraded if VTB
and/or Sistema commit to providing substantial support to SH, such
as a full debt restructuring, including legal guarantees on SH's
debt, or if SH's standalone credit profile improves.
However, the ratings could be downgraded if SH experiences another
payment default and tangible financial support is not forthcoming
from main shareholders within the applicable grace period (to the
extent SH cannot fund this itself). SH's ratings could also be
downgraded to 'RD' if the company initiates a debt restructuring
that qualifies as a CDE, or repays creditors at less than par.
TETKINSKIY SUGAR: Creditors Must File Claims by November 4
----------------------------------------------------------
Creditors of CJSC Tetkinskiy Sugar Plant (TIN 4603004073, PSRN
1024600742913) have until November 4, 2009, to submit proofs of
claims to:
N. Silakov
Insolvency Manager
Apt.1
Sadovaya Str. 25/69
305004 Kursk
Russia
The Arbitration Court of Kurskaya commenced bankruptcy proceedings
against the company after finding it insolvent. The case is
docketed under Case No. ?35–9313/2008.
The Debtor can be reached at:
CJSC Tetkinskiy Sugar Plant
Tetkino
Glushkovskiy
307490 Kurskaya
Russia
=========
S P A I N
=========
LA SEDA: Offers Debt Restructuring Terms to Creditors
-----------------------------------------------------
Gianluca Baratti at Bloomberg News reports that La Seda de
Barcelona said it has proposed terms with creditors to restructure
debt of EUR600 million acquired in 2006.
Bloomberg relates La Seda said the banks have four weeks to
approve the conditions.
According to Bloomberg, the company said it also borrowed
EUR10 million (US$15 million) from its shareholder Caixa Geral de
Depositos SA.
La Seda de Barcelona SA -- http://www.laseda.es/-- is a Spain-
based company primarily engaged in the the production and
marketing of plastics and textiles. The Company is structured in
six business divisions: PET, PTA, Chemical, Packaging,
Technological and PET Recycling. The PET division is active in
the manufacturing of PET polymers. The unit operates under the
brand name Artenius and has production plants mainly in Spain,
Portugal, Italy, Greece, Turkey, Romania and the United Kingdom.
PTA and Chemical divisions are engaged respectively in the
production of polyesters as well as ethylene oxide and glycols,
among others. Packaging division produces materials for
packaging, mainly for food and beverages sectors. PET Recycling
division is dedicated to the area of biofuels and Technological
division operates in the area of the rights licenses and patents.
La Seda de Barcelona SA is a parent company of Grupo Seda. The
Company's main subsidiaries are Slir SL, Petrolest SL and Artenius
Prat PET SL, among others.
=====================
S W I T Z E R L A N D
=====================
BALSIGER HAUSTECHNIK: Claims Filing Deadline is November 2
----------------------------------------------------------
Creditors of Balsiger Haustechnik GmbH are requested to file their
proofs of claim by November 2, 2009, to:
Leu Treuhand AG
Liquidator
Zentralstrasse 100
8212 Neuhausen am Rheinfall
Switzerland
The company is currently undergoing liquidation in Neunkirch. The
decision about liquidation was accepted at a shareholders' meeting
held on July 17, 2009.
GROBAG AG: Claims Filing Deadline is November 2
-----------------------------------------------
Creditors of Grobag AG are requested to file their proofs of claim
by November 2, 2009, to:
Grobag AG
Industriestrasse 20
6300 Zug
Switzerland
The company is currently undergoing liquidation in Zug. The
decision about liquidation was accepted at a general meeting held
on August 31, 2009.
H + W BETEILIGUNGEN: Claims Filing Deadline is November 2
---------------------------------------------------------
Creditors of H + W Beteiligungen AG are requested to file their
proofs of claim by November 2, 2009, to:
Dr. iur. Thomas Luethy
Liquidator
Zollikerstr. 141
8008 Zurich
Switzerland
The company is currently undergoing liquidation in Wetzikon. The
decision about liquidation was accepted at an extraordinary
general meeting held on August 21, 2009.
IMESCH GMBH: Claims Filing Deadline is November 2
-------------------------------------------------
Creditors of Imesch GmbH are requested to file their proofs of
claim by November 2, 2009, to:
Elisabeth Bebie Buesch
Liquidator
Hirschbuehlweg 19
7000 Chur
Switzerland
The company is currently undergoing liquidation in Zug. The
decision about liquidation was accepted at a shareholders' meeting
held on July 23, 2009.
KYRIBA GMBH: Claims Filing Deadline is November 2
-------------------------------------------------
Creditors of Kyriba GmbH are requested to file their proofs of
claim by November 2, 2009, to:
Bruno Schelbert
Liquidator
Baarerstrasse 53
6304 Zug
Switzerland
The company is currently undergoing liquidation in Zug. The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on May 16, 2008.
MAM TRADING: Claims Filing Deadline is November 2
-------------------------------------------------
Creditors of Mam Trading GmbH are requested to file their proofs
of claim by November 2, 2009, to:
Palucki Witold
Liquidator
Brueelstrasse 53
8957 Spreitenbach
Switzerland
The company is currently undergoing liquidation in Spreitenbach.
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on June 22, 2009.
MATON BOOTSWERFT: Claims Filing Deadline is November 2
------------------------------------------------------
Creditors of Maton Bootswerft AG are requested to file their
proofs of claim by November 2, 2009, to:
Scotoni Alessandro
Liquidator
Rebhaldenstrasse 71
8625 Gossau ZH
Switzerland
The company is currently undergoing liquidation in Gossau ZH. The
decision about liquidation was accepted at an extraordinary
general meeting held on April 22, 2009.
PRONTO GMBH: Claims Filing Deadline is November 2
-------------------------------------------------
Creditors of Pronto GmbH are requested to file their proofs of
claim by November 2, 2009, to:
Pius Rothenfluh
Liquidator
Bifangstrasse 40
4663 Aarburg
Switzerland
The company is currently undergoing liquidation in Aarburg. The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on September 2, 2009.
TEA-ROOM ALETSCH: Claims Filing Deadline is November 2
------------------------------------------------------
Creditors of Tea-Room Aletsch GmbH are requested to file their
proofs of claim by November 2, 2009, to:
Angst Andreas
Liquidator
Rudenz 12
3860 Meiringen
Switzerland
The company is currently undergoing liquidation in Fiesch. The
decision about liquidation was accepted at a shareholders' meeting
held on July 24, 2009.
THOMAS CUGINI: Claims Filing Deadline is November 2
---------------------------------------------------
Creditors of Thomas Cugini AG are requested to file their proofs
of claim by November 2, 2009, to:
Thomas Cugini
Pfaffensteinstr. 84
8118 Pfaffhausen
Switzerland
The company is currently undergoing liquidation in Zurich. The
decision about liquidation was accepted at a general meeting held
on August 31, 2009.
===========
T U R K E Y
===========
* ISTANBUL: Fitch Puts 'BB-' Rating on Rating Watch Positive
------------------------------------------------------------
Fitch Ratings has placed the Municipality of Metropolitan
Istanbul's and Toplu Konut Idaresi Baskanligi's ratings on Rating
Watch Positive following the agency's sovereign rating action
earlier.
The agency placed Istanbul's and TOKI's ratings on RWP after
placing the Republic of Turkey's Long-term foreign currency and
local currency Issuer Default ratings of 'BB-' and 'BB' on RWP
respectively.
The rating actions are:
Municipality of Metropolitan Istanbul:
* Long-term local currency rating: 'BB'; placed on RWP
* Long-term foreign currency rating: 'BB-'; placed on RWP
* Short-term foreign currency rating: affirmed at 'B'
Toplu Konut Idaresi Baskanligi:
* Long-term local currency rating: 'BB'; placed on RWP
* Long-term foreign currency rating: 'BB-'; placed on RWP
Istanbul, with more than 12.5 million inhabitants, plays a key
role in Turkey's economy, as it is the country's main financial
and commercial centre. The metropolitan municipality's
responsibilities are focused on investment, primarily in
infrastructure, and the provision of municipal services such as
public transport and water. Its main source of revenue is taxes
collected by the central government and shared among the
metropolitan municipalities.
TOKI is a public sector entity charged with implementing the
national government's housing policy through the provision of low
cost housing and loan facilties for the purchase of social
housing.
* TURKEY: Fitch Puts 'BB-' Issuer Rating on Positive Watch
----------------------------------------------------------
Fitch Ratings has placed Turkey's Long-term foreign currency
Issuer Default Rating of 'BB-' and its Long-term local currency
IDR of 'BB' on Rating Watch Positive. At the same time, the
agency has affirmed Turkey's Short-term foreign currency IDR at
'B' and placed the Country Ceiling of 'BB' on RWP.
The rating action reflects Turkey's relative resilience to the
severe stress test of the global financial crisis. Following a
visit to Turkey last week, Fitch will complete a review of the
sovereign rating level by the end of the year, which it believes
has a strong likelihood of leading to an upgrade. The review will
draw on the information revealed by the global financial crisis
and other developments to reassess Turkey's underlying credit
fundamentals.
Notwithstanding a sharp recession and deterioration in its public
finances, Turkey has proved relatively resilient to the global
financial crisis. The banking sector has not required any
sovereign support and is well-capitalized with a low level of non-
performing loans and a loan-to-deposit ratio of only 82%. In
contrast to previous shocks, Turkey has been able to implement
counter-cyclical fiscal and monetary policies to help stabilize
the economy without sparking an exchange rate crisis. The Central
Bank of Turkey has been able to cut its policy interest rates and
the Treasury bill rate has fallen to single digits for the first
time in its modern history. The recession has facilitated a
rebalancing of the economy, with a marked reduction in the current
account deficit and the inflation rate. GDP rebounded by 7.1% in
Q209 (on a quarter-on-quarter, seasonally and calendar adjusted
basis, according to TurkStat).
Sovereign eurobond issuance totalling US$3.75bn during the course
of 2009 underscores Turkey's international capital market access
even at times of severe financial market stress. In addition, a
deep domestic debt market has, so far, enabled the government to
finance its wider budget deficit at record low yields. Turkey's
external finances have also proved more resilient than
anticipated. Despite a decline in the roll-over rate on the
corporate sector's long-term debt to below 70% in January-August
2009, other financing sources have enabled foreign reserves to
recover to their end-2008 levels in recent months.
Nevertheless, uncertainties over Turkey's "exit" from the global
financial crisis remain, including the strength of its economic
recovery and the implementation of the fiscal consolidation set
out in the Medium Term Programme announced in September, as well
as some risks regarding external financing.
=============
U K R A I N E
=============
LUGANSK CJSC: Creditors Must File Claims by November 1
----------------------------------------------------
Creditors of Lugansk CJSC Industrial Building Repair (code EDRPOU
00293769) have until November 1, 2009, to submit proofs of claim
to:
VTB Bank
Insolvency Manager
T. Shevchenko Boulevard/Pushkinskaya Str. 8/26
01004 Kiev
Ukraine
The Economic Court of Lugansk commenced bankruptcy proceedings
against the company on August 31, 2009. The case is docketed
under Case No. 20/58b.
The Court is located at:
The Economic Court of Lugansk
Heroes of GPW Square 3-a
91000 Lugansk
Ukraine
The Debtor can be reached at:
Lugansk CJSC Industrial Building Repair
Linev Str. 83A
Lugansk
Ukraine
SUGAR LLC: Creditors Must File Claims by November 1
---------------------------------------------------
Creditors of LLC Joint Ukrainian and Austrian and German
Enterprise Ukrainian International Sugar (code EDRPOU 20036069)
have until November 1, 2009, to submit proofs of claim to:
LLC Housing Sector Geologist
Insolvency Manager
Bestuzhev Str. 36
Kiev
Ukraine
The Economic Court of Kiev commenced bankruptcy proceedings
against the company on September 29, 2009. The case is docketed
under Case No. 44/593-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 Joint Ukrainian and Austrian
and German Enterprise Ukrainian International Sugar
Vozdukhoflotsky Ave. 90-A
01038 Kiev
Ukraine
===========================
U N I T E D K I N G D O M
===========================
AERO INVENTORY: Shares Suspended; Covenant Breach Likely
--------------------------------------------------------
Jeremy Lemer at The Financial Times reports that shares in Aero
Investory plc were suspended Oct. 26 after the company said it had
discovered "issues" with the valuation of certain stock and warned
it was likely to breach non-financial covenants on its bank debt.
The FT relates in a notice to the stock exchange, the company said
the problems could have a "material impact" on its 2008 and 2009
accounts, adding that it was negotiating with its lenders over its
inability to provide audited accounts within the timescales they
required.
Aero Inventory did not say when the trading suspension might end
or when its full year results, already delayed while it moves from
Aim to the London Stock Exchange, would be published, the FT
notes.
According to the FT, at the half-year mark, the company had built
up debts of US$466.2 million (GBP286 million) pushing it close to
the limit of its US$500 million banking facility arranged by
Lloyds TSB, although a deal to sell stock to Air Canada should
trim the debt by about US$100 million.
Aero Inventory plc -- http://www.aero-inventory.com/-- is a
holding company to its subsidiary undertakings. Aero Inventory
(UK) Limited is primarily engaged in procurement and inventory
management for the aerospace industry. Aero Inventory (Hong Kong)
Limited, Aero Inventory (Switzerland) AG, Aero Inventory
(Australia) Pty Limited, Aero Inventory (Canada) Inc., Aero
Inventory (Bahrain) SPC and Aero Inventory Japan KK provide
customer support in relation to the activities of Aero Inventory
(UK) Limited. Aero Inventory (USA) Inc. provides services to Aero
Inventory (UK) Limited in relation to the procurement and
purchasing of aircraft parts, logistics and the sale of parts to
non-contract customers in the United States. The Company
principally operates in the United Kingdom, rest of Europe and
Middle East, America and Asia Pacific.
BRITISH AIRWAYS: DOT Delays Ruling on Alliance With American Air
----------------------------------------------------------------
The Department of Transportation has delayed by at least two weeks
ruling on a proposed alliance between American Airlines, British
Airways PLC, and Iberia Lineas Aereas de Espana SA, partly due to
differences between the U.S. Transportation Department and the
Justice Department, Daniel Michaels and Kaveri Niththyananthan at
The Wall Street Journal report, citing people familiar with the
matter. According to The Journal, the sources said that DOT won't
issue a preliminary ruling on the three carriers' application for
antitrust immunity by its original October 31 deadline, and could
push a final ruling into early 2010.
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.
CATTLES PLC: High Court to Start Hearing Welcome Case Today
-----------------------------------------------------------
Anousha Sakoui and Jane Croft at The Financial Times report that
the London's High Court will start hearing today the case between
Cattles plc and Welcome Financial Services that will help
determine what bondholders could recover on their investment in a
restructuring of Cattles' debt.
The case, the FT says, will settle an argument between the
company's banks and its bondholders over which would rank highest
if Cattles went into administration. According to the FT, the
banks believe their claims rank ahead of bondholders because of a
guarantee given to the banks by Welcome, a Cattles subsidiary.
The court will be asked to decide, in the event of an
administration, whether the construction of this guarantee will
mean Cattles' banks and private placement noteholders will receive
most of the cash the company gets back from its customers, which
bondholders dispute, the FT states.
The FT relates people close to the situation said the hearings are
expected to last two days but the case could run until the new
year if any decision is appealed against.
Cattles plc -- http://www.cattles.co.uk/-- is a financial
services company specializing in providing consumer credit to non-
standard customers in United Kingdom. The Company also provides
debt recovery services to external clients and its consumer credit
business, and working capital finance for small- and medium-sized
businesses. It also has a car retail operation, which is an
introducer of hire purchase customers to its consumer credit
business. Its business divisions include Welcome Financial
Services, The Lewis Group and Cattles Invoice Finance. Welcome
Financial Services consists of three businesses: Welcome Finance,
Shopacheck and Welcome Car Finance. Shopacheck provides short-
term home collected loans to some 260,000 customers through 52
branches. The Lewis Group provides debt recovery and
investigation services, serving both external clients and Welcome
Financial Services. In September 2007, it announced the
acquisition of a debt portfolio of United Kingdom credit card,
loan and overdraft receivables.
FIRST QUENCH: On the Verge of Administration
--------------------------------------------
Andrea Felsted, Anousha Sakoui and Dan Thomas at The Financial
Times report that First Quench is on the brink of entering into
administration.
According to the FT, KPMG has been advising First Quench on
options for the business, including trying to find a buyer, and
has been lined up should it fail to find an alternative to
administration. The situation is expected to come to a head over
the next few days, the FT says.
The FT recalls earlier this year, First Quench, which employs
6,500 people, warned over its ability to continue as a going
concern after it was hit by a downturn in demand and the
withdrawal of credit insurance.
First Quench Group -- http://www.threshergroup.com/-- is a
specialist drinks retailer. It operates Threshers, The Local,
Wine Rack and Haddows shops in England, Scotland and Wales.
GLOBE PUB: On the Verge of Administrative Receivership
------------------------------------------------------
Pan Kwan Yuk and Anousha Sakoui at The Financial Times report
that Globe Pub Company was on the brink of being put into
administrative receivership last night.
According to the FT, the Bank of New York Mellon, which became the
trustee to Globe's bondholders after the pub group defaulted on a
GBP257 million asset-backed loan in April, has lined up Zolfo
Cooper as receivers to the business.
Citing people familiar with the matter, the FT discloses an
appointment of the firm could be announced as early as today,
Oct. 29. The appointment would lead to Globe, which owns 421
tenanted pubs, being sold to a new vehicle backed by Heineken, the
FT says.
Globe, the FT discloses, has been hit by the smoking ban in pubs,
the recession, soaring beer duty and cheap drinks in supermarkets.
Globe Pub Company -- http://www.globepubcompany.co.uk/-- was
established in 2004 by R20, an investment company of Robert
Tchenguiz.
HEATHER FINANCE: Moody's Withdraws Ratings on 4 Classes of Notes
----------------------------------------------------------------
Moody's Investors Service has withdrawn its ratings of four
classes of notes issued by Heather Finance Limited.
Issuer: Heather Finance Limited
-- Series 2002-4 US$100M Secured Credit-Linked Floating Rate
Notes, Withdrawn; previously on May 10, 2007 Upgraded to Aaa
-- Series 2004-5 EUR 15M Class A, Withdrawn; previously on
Feb. 23, 2009 Downgraded to B3
-- Series 2004-5 EUR 26.67M Class B, Withdrawn; previously on
Feb. 23, 2009 Downgraded to B2
-- Series 2004-12 EUR5M Class A1 Secured Credit-Linked Fixed
Rate Note, Withdrawn; previously on Feb. 23, 2009 Downgraded
to Baa3
The rating actions follow the repurchase in full of the notes on
March 25, 2009.
LLOYDS BANKING: In Talks to Acquire CPA Global
----------------------------------------------
Martin Arnold at The Financial Times reports that Lloyds Banking
Group is negotiating a GBP400 million acquisition of patent and
legal services group CPA Global.
The FT says the auction of CPA has come down to a contest between
LDC, which invests directly from the balance sheet of Lloyds, and
Intermediate Capital, the London-listed mezzanine investor. The
FT relates bank financing has been lined up by both bidders for a
deal, likely to be for a big minority stake in the company,
valuing it at GBP400 million-GBP450 million.
According to the FT, final bids are due next month for Jersey-
based CPA, which employs 1,600 people. BDO is running the
auction.
As reported in the Troubled Company Reporter-Europe, Lloyds sought
a GBP17-billion bailout from taxpayers after it agreed to buy HBOS
in September in a government- brokered deal to prevent the
collapse of Britain's biggest mortgage lender.
About Lloyds Banking Group PLC
Lloyds Banking Group PLC, formerly Lloyds TSB Group plc,
(LON:LLOY) -- http://www.lloydsbankinggroup.com/-- is a United
Kingdom-based financial services group providing a range of
banking and financial services, primarily in the United Kingdom,
to personal and corporate customers. The Company operates in
three divisions: UK Retail Banking, Insurance and Investments, and
Wholesale and International Banking. Its main business activities
are retail, commercial and corporate banking, general insurance,
and life, pensions and investment provision. The Company also
operates an international banking business with a global footprint
in 40 countries. Services are offered through a number of brands,
including Lloyds TSB, Halifax, Bank of Scotland, Scottish Widows,
Clerical Medical and Cheltenham & Gloucester. On January 16,
2009, Lloyds Banking Group plc acquired HBOS plc.
LONDON LITE: Faces Closure; 36 Jobs at Risk
-------------------------------------------
Salamander Davoudi at The Financial Times reports that London
Lite, the evening freesheet and competitor to the Evening
Standard, is facing closure.
According to the FT, London Lite's owner Daily Mail & General
Trust was in consultation with staff over the paper's future.
London Lite, which has 36 staff members and a circulation of
400,000, is said to be losing almost GBP10 million a year, the FT
says.
"The latest development in the London afternoon free newspaper
space dictates that we look again at the future of London Lite,"
the FT quoted Steve Auckland, managing director at Associated
Newspapers, a subsidiary of DMGT, as saying. "Despite reaching a
large audience with an excellent editorial format, we are
concerned about the commercial viability in this highly
competitive area."
OXYGEN GAMES: Into Receivership; Former CEO Acquires Assets
-----------------------------------------------------------
According to Games Blog at Guardian.co.uk, small British publisher
Oxygen Games went into receivership early in October. Games Blog
said the company's former CEO Jim Scott has purchased Oxygen's
assets.
Meanwhile, Mr. Scott has told MCV that developers have been left
out of pocket following the firm's fall into administration.
MCV's Tim Ingham said Mr. Scott's OG International purchased
Oxygen’s IP and stock after the firm went into administration.
According to Mr. Ingham, Mr. Scott admitted to MCV that studios
were owed payment by Oxygen -- and must now deal with
administrator FA Simms & Partners.
Oxygen Games developers included Rebellion Studios, Magellen
Interactive and Destineer Games, who produced titles such as Cate
West: The Vanishing Files and PDC World Championship Darts 2009.
Mr. Ingham also reported that Rebellion founder and CEO Jason
Kinsgley has told MCV that the firm had been fully paid by Oxygen
before the firm collapsed.
Mr. Scott told MCV that OG International distributes both software
and hardware to over 250 retailers around Europe.
SPORT MEDIA: Posts GBP7.7 Mln Interim Pre-Tax Loss
--------------------------------------------------
David Blackwell at The Financial Times reports that Sport Media
Group plc posted a pre-tax loss of GBP7.7 million for the 12
months to July 31 compared with an GBP18 million pre-tax loss for
the previous 12 months.
According to the FT, the latest interim loss was struck after
reorganization and other exceptional items, goodwill amortization
and a charge for share-based payments totaling more than GBP7
million.
Sport Media, the FT discloses, is bearing additional interest
costs after renegotiating its bank debt. The FT recalls the
company breached its banking covenants this year.
Sport Media Group plc (AIM: SPMG.L) is the integrated multi-media
group that publishes the Sunday and Daily Sport newspapers and
provides digital content for Internet and mobile channels.
STABLE GROUP: Tool Rental Business Sold to Paradigm Oilfield
------------------------------------------------------------
Paradigm Oilfield Services Limited on October 22 successfully
concluded the purchase of the down-hole oil tool rentals business
of the Stable Group for an undisclosed figure.
The move follows the appointment on August 3, 2009, of Bruce
Cartwright and Laurie Manson of PricewaterhouseCoopers LLP as the
Joint Administrators of Holsco Limited, Stable Holdings Limited,
Stable Leasing Limited and Stable Services Limited (Stable Group).
Stable Group manufactured and rented oil and gas drilling
equipment internationally primarily to drilling contractors.
POSL is a subsidiary of Netherlands-based Paradigm Group BV, which
is led by Chief Executive Officer Fraser Innes. The acquisition
of Stable Group's Tool Rental Business is part of Paradigm Group
BV's growth strategy of buying technology led oil and gas
companies which have a track record of excellent service delivery.
Paradigm Group BV’s CEO, Fraser Innes, commented: "Stable had
experienced dramatic growth and we’re in a position to realize
this growth and to continue to deliver on the company's future
potential with sufficient funding to support this. The core of
the tool leasing business is sound and we'll develop this model
with suitable working capital in place. There is potential for a
significant increase in staff numbers over the coming 12 months."
Deal initiator Simon Cowie, partner at Hall Morrice, who was
recently named Scottish Deal Maker of The Year, says of the
acquisition: "The rental business has a healthy order book and was
a crucial part of the Stable Group's growth from GBP7 million to
GBP29 million in less than three years. As a direct result, POSL
was able to see the undoubted potential of this acquisition."
Bruce Cartwright, joint administrator and partner at
PricewaterhouseCoopers LLP in Scotland, said: "Despite a good
underlying business, The Stable Group experienced pressure on its
working capital as a result of rapid expansion in a challenging
economic climate. Over the last few months, we have worked very
closely with the Group and its senior staff to secure a successful
conclusion to the sale of this part of the Group. I would also
like to acknowledge the support from customers, suppliers and
employees during this difficult period."
WILLIAM HILL: Moody's Assigns 'Ba1' Corporate Family Rating
-----------------------------------------------------------
Moody's Investors Service has assigned a Ba1 corporate family
rating and Ba1 probability of default rating to William Hill plc.
The rating outlook is stable.
William Hill's Ba1 CFR reflects the company's leadership positions
as demonstrated by a 25% market share in the retail betting
business, its established presence in the European online betting
and gaming market, and the strength of the William Hill brand.
Moody's also recognizes that the company benefits from high
barriers to entry in the UK retail sector due to the high cost of
real estate and existing regulation. Furthermore, while the UK
gambling market has evolved over the past few years, overall, the
regulatory framework in William Hill's domestic market is well-
established.
The Ba1 CFR also recognizes the stability of William Hill's retail
activities and the relative resilience that the betting business
has enjoyed in previous downturns and continues to maintain
despite the current difficult market conditions. Moody's also
acknowledges that despite the unfavorable sporting results in Q3
2009 that affected the company's performance, William Hill has
been able to deliver reasonable year-to-date revenues on the back
of good retail machine performance and a strengthened online
business after the Playtech JV. Moody's more cautiously notes the
mature nature of retail betting and cautions that organic growth
opportunities for the business are limited.
Moody's positively views William Hill's high margins and free cash
generation capacity. Moody's believes that the company's debt
protection metrics should significantly improve in FY2009 (ending
December 31, 2009) as a result of the GBP350 million rights issue
executed at the beginning of the year. More specifically, Moody's
anticipates that retained cash flow to net debt should improve to
the high teens and debt to EBITDA should decrease to around 3.3x
in the current financial year (all ratios adjusted as per Moody's
Global Standard Adjustments). Moody's notes that management has
not set an explicit leverage target but the ratings agency expects
William Hill to maintain a robust balance sheet.
Moody's considers William Hill's liquidity situation to be
satisfactory and sufficient to cover the company's funding needs
over the next 18 months. Furthermore, William Hill was compliant
with its financial covenants as of June 2009. The agency also
positively views management's willingness to adjust financial
policies in line with evolving market conditions, as demonstrated
by the execution of the rights issue and the pre-financing of
maturing facilities.
However, the group still generates a large proportion of its
revenues, earnings and cash flows in the UK, exposing the company
to the macroeconomic conditions in its domestic market, which
constrains the rating. The rating is also constrained by the
company's dependence on the retail side of the betting business,
with 82% and 86% of gross win and profits, respectively, generated
in this segment. In addition, Moody's believes the rating could
be further constrained by any potential changes in the regulatory
or fiscal environment.
Furthermore, although potential growth opportunities could arise
from the company's online business, particularly if more European
markets open from a regulatory point of view, Moody's cautions
that the online market is very competitive. Moreover, due to the
fragmented nature of the online betting market, some industry
consolidation is likely to take place going forward, exposing the
company to a degree of event risk.
Finally, while William Hill benefits from an extensive retail
store base with around 2,300 licensed betting offices in the UK
and Ireland, the majority of the real estate base is leasehold
(90%) and does not offer the company much flexibility or
additional asset coverage.
The stable outlook on the Ba1 CFR reflects Moody's expectation
that William Hill's credit metrics will improve in FY2009, with
retained cash flow to net debt in the high teens and debt to
EBITDA comfortably below 3.5x, on a sustainable basis.
William Hill's ratings were assigned by evaluating factors Moody's
believes are relevant to the credit profile of the issuer, such as
(i) scale and competitive position of the company, (ii) its
diversification and exposure to regulatory risk, (iii)
profitability, (iv) growth opportunities and management strategy,
(v) financial policies, and (vi) the projected performance of the
company over the near to intermediate term.
Headquartered in the UK, William Hill plc is a leading UK betting
and gaming company, with approximately 2,300 licensed betting
shops (2,271 in the UK and 48 in the Republic of Ireland). In
2008, the company employed over 15,000 people and posted a gross
win of around GBP1 billion. William Hill offers fixed-odds
betting, gaming machines (8,700 machines across the network) and
online gaming through three principal channels: retail, online and
telephone.
WILLIAM HILL: S&P Assigns Corporate Credit Rating at 'BB+'
----------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its long-
term corporate credit rating of 'BB+' to U.K.-based gaming group
William Hill PLC. The outlook is stable.
"The ratings on WMH reflect S&P's view of its market leadership in
the regulated and relatively recession-resilient betting industry,
but are constrained by its choice of optimal debt leverage," said
Standard & Poor's credit analyst Philip Temme. "The significant
financial profile on a lease-adjusted basis is the primary driver
for the rating as S&P view the group's satisfactory business risk
profile as compatible with an investment-grade rating."
With revenues in the 12 months to June 2009 of GBP990 million,
lease-adjusted EBITDA of GBP334.8 million, and a U.K. machine
portfolio of 8,707, WMH has a share of about 26% of the U.K.
betting market; U.K. and Irish retail betting accounted for 82% of
2008 revenues. WMH is also a sizeable player in online gaming
(particularly casino and sportsbook gaming) through 71%-owned
William Hill Online. The benefits of high barriers to entry in
the retail betting business, strong brand recognition, and lower-
than-average cyclicality are tempered by the group's dependence on
the U.K., exposure to tax and regulatory risk, relatively high
fixed costs, the maturity of the retail business and currently
challenging conditions for discretionary consumer spending.
The group's net revenues in the nine months to September 2009 rose
3% year-on-year, although unfavorable sporting results contributed
to a 3% fall in the third quarter. Continued on-line sales growth
and tight cost controls should partially offset current tough
retail operating conditions. U.K. retail betting (82% of 2008
revenues) has proved relatively resilient when unemployment has
risen in the past, protected by the group's high-volume, low-wager
business model. Gaming machines have yet to be tested through a
recession, although performance to date has been encouraging.
WMH's lease-adjusted EBITDA margin of 33.8% in the 12 months to
June 2009 was only modestly lower than in the prior year, assisted
by tight cost control.
"The stable outlook reflects S&P's view that WMH's business should
be reasonably well placed to withstand recessionary pressures,
provided that the regulatory backdrop (particularly relating to
gaming machines) remains benign and the group exercises restraint
in discretionary spending and financial policy," said Mr. Temme.
The rating broadly assumes that growth in online gaming and
continuing tight retail cost control will largely offset cyclical
pressures on the main retail business and the short-term impact of
recent adverse sporting results. The group's liquidity appears
adequate until the refinancing requirements due in 2011/2012.
Lease-adjusted debt to EBITDA at or below 4.0x (broadly equivalent
to reported debt to EBITDA at or below 3.5x) would be considered
commensurate with the current rating. Debt-funded acquisitions or
excessive growth in cash dividends would likely weigh negatively
on the rating.
===============
X X X X X X X X
===============
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AMERICAN BANKRUPTCY INSTITUTE
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*********
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
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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
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A list of Meetings, Conferences and Seminars appears in each
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*********
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Copyright 2009. All rights reserved. ISSN 1529-2754.
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