/raid1/www/Hosts/bankrupt/TCREUR_Public/091127.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
E U R O P E
Friday, November 27, 2009, Vol. 10, No. 235
Headlines
A U S T R I A
ING. ERNST: Claims Filing Deadline is December 9
NEST-BAU GMBH: Claims Filing Deadline is December 7
MICHAEL R. KERN: Claims Filing Deadline is December 7
C Z E C H R E P U B L I C
SAZKA AS: S&P Downgrades Long-Term Corporate Credit Rating to 'B'
F I N L A N D
RAHAXI INC: Sept. 30 Balance Sheet Upside Down by US$4,051,640
G E R M A N Y
BRENNTAG HOLDING: S&P Raises Corporate Credit Rating to 'B+'
GENERAL MOTORS: May Cut 5,400 German Jobs Under Opel Restructuring
UNYLON POLYMERS: Has Takeover Deal with Poland's ZAT
WESTLB AG: May Face Further Conditions on Additional Aid
WESTLB AG: Fitch Affirms Individual Rating at 'E'
* GERMANY: Banks Face Further Loan Write-Downs, Bundesbank Says
G R E E C E
HELLAS II: Jr. Creditors Mull Court Action Over Offer Rejection
I R E L A N D
AQUILAE CLO: Moody's Junks Rating on EUR12MM Class E Notes
AVOCA CAPITAL: Fitch Affirms Rating on Class F Notes at 'CCC'
BUDGET TRAVEL: Ceases Trading; 172 Jobs Affected
EP MOONEY: Goes Into Liquidation; 95 Jobs Affected
I T A L Y
SAFILO SPA: Hal Extends Offer Period for Sr. Notes Until Nov. 30
K A Z A K H S T A N
AKTOBE MONTAGE: Creditors Must File Claims by December 9
AKTOBE TRANS: Creditors Must File Claims by December 9
ALMAZ MOTORS: Creditors Must File Claims by December 9
ASIA PROM: Creditors Must File Claims by December 9
AVUAR LLP: Creditors Must File Claims by December 9
LSP LLP: Creditors Must File Claims by December 9
MIREEL LLP: Creditors Must File Claims by December 9
PAN AGRO: Creditors Must File Claims by December 9
PLAZMA-D LLP: Creditors Must File Claims by December 9
SMA DIL: Creditors Must File Claims by December 9
K Y R G Y Z S T A N
ALFA FINANCE: Creditors Must File Claims by December 23
ARAL STROY: Creditors Must File Claims by December 16
N E T H E R L A N D S
LEO-MESDAG BV: Moody's Cuts Rating on Class E Notes to 'Ba1'
QUEEN STREET: Moody's Junks Rating on EUR18MM Class E Notes
R U S S I A
ALYANS-STROY: Creditors Must File Claims by December 6
CLUTCH PLANT: Creditors Must File Claims by December 2
SALAVAT-STROY: Creditors Must File Claims by December 6
STROY-INDUSTRIYA: Creditors Must File Claims by December 2
VEKA CONSTRUCTION: Creditors Must File Claims December 6
ZAPADNO-SIBIRSKAYA: Creditors Must File Claims by December 2
ZHIL-STROY: Samarskaya Bankruptcy Hearing Set December 2
* RUSSIA: Companies to Obtain RUR500 Bln State Guarantees in 2010
* KOMI REPUBLIC: Fitch Affirms Long-Term 'BB' Currrency Rating
S P A I N
TDA 24: S&P Downgrades Rating on Class D Notes to 'B-'
S W E D E N
GENERAL MOTORS: Saab Union Dismayed on Koenigsegg Deal Collapse
S W I T Z E R L A N D
ALOIS WUERSCH: Claims Filing Deadline is November 30
ANDREA CANELLA: Claims Filing Deadline is November 30
BEFAG FERTIGPARKETT: Claims Filing Deadline is November 30
BHA - AUFZUEGE: Claims Filing Deadline is November 30
BODO GMBH: Claims Filing Deadline is November 30
F. BEREUTER: Claims Filing Deadline is November 30
FMJ GROUP: Claims Filing Deadline is November 30
FMJ SALES: Claims Filing Deadline is November 30
FMJ TECHNOLOGY: Claims Filing Deadline is November 30
GALINA AG: Claims Filing Deadline is November 30
GARAGE DANIEL: Claims Filing Deadline is November 30
GHRAMPOL GMBH: Claims Filing Deadline is November 30
H. OCHSNER: Claims Filing Deadline is November 30
HECU TIEFBAU: Claims Filing Deadline is November 30
HPK HANDEL: Claims Filing Deadline is November 30
I + M BETEILIGUNG: Claims Filing Deadline is November 30
MNZ HOLDING: Claims Filing Deadline is November 30
PS CAPITAL: Claims Filing Deadline is November 30
RENE BURKHARD: Claims Filing Deadline is November 30
VISA TREUHAND: Claims Filing Deadline is November 30
T U R K E Y
DOGAN YAYIN: Talks with Regulators on US$3.3 Bln Tax Fine Fail
U K R A I N E
FORSAGE PLUS: Creditors Must File Claims by November 29
ROSRESOURCE LLC: Creditors Must File Claims by November 29
ZAPOROZHYE AGRICULTURAL: Creditors Must File Claims by November 29
U N I T E D K I N G D O M
BORDERS UK: In Administration; 1,150 Jobs Affected
BRITISH MIDLAND: Mulls 600 Job Cuts, Route Closures
CATTLES PLC: Has Standstill and Equalization Deal with Creditors
LAND HERITAGE: Preparing to Pay Dividend to Creditors
VEDANTA RESOURCES: S&P Affirms Corporate Credit Rating at 'BB'
* UK: Banks Should Be Allowed to Fail, Mervyn King Says
X X X X X X X X
* S&P Downgrades Ratings on 525 European Corporate Synthetic CDOs
* BOOK REVIEW: Corporate Players - Designs for Working and Winning
*********
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A U S T R I A
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ING. ERNST: Claims Filing Deadline is December 9
------------------------------------------------
Creditors of Ing. Ernst Einsiedl GmbH have until December 9, 2009,
to file their proofs of claim.
A court hearing for examination of the claims has been scheduled
for December 23, 2009 at 10:10 a.m.
For further information, contact the company's administrator:
Dr. Annemarie Kosesnik-Wehrle
Oelzeltgasse 4/6
1030 Vienna
Austria
Tel: 713 61 92
Fax: DW 22
E-mail: kanzlei@kosesnik-langer.at
NEST-BAU GMBH: Claims Filing Deadline is December 7
---------------------------------------------------
Creditors of Nest-Bau GmbH have until December 7, 2009, to file
their proofs of claim.
A court hearing for examination of the claims has been scheduled
for December 21, 2009 at 9:00 a.m.
For further information, contact the company's administrator:
Mag. Johanna Abel
Franz-Josefs-Kai 49/19
1010 Vienna
Austria
Tel: 533 52 72
Fax: 533 52 72 15
E-mail: office@abel-abel.at
MICHAEL R. KERN: Claims Filing Deadline is December 7
-----------------------------------------------------
Creditors of Michael R. Kern GmbH have until December 7, 2009, to
file their proofs of claim.
A court hearing for examination of the claims has been scheduled
for December 21, 2009 at 11:00 a.m.
For further information, contact the company's administrator:
Mag. Daniel Lampersberger
Esteplatz 4
1030 Vienna
Austria
Tel: 712 33 30-0
Fax: 712 33 30-30
E-mail: kanzlei@engelhart.at
===========================
C Z E C H R E P U B L I C
===========================
SAZKA AS: S&P Downgrades Long-Term Corporate Credit Rating to 'B'
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered its long-
term corporate credit rating on Czech Republic-based gaming
company SAZKA a.s. to 'B' from 'B+'. The senior secured debt
rating on the company's EUR215 million amortizing bonds maturing
in 2021 was also lowered to 'B' from 'B+'. At the same time, all
ratings were placed on CreditWatch with negative implications.
"The downgrade reflects S&P's view that the company's financial
policy remains aggressive and that execution risks in respect of
the rollover of its short-term funding have increased in the
current credit environment," said Standard & Poor's credit analyst
Diego Festa.
Although S&P understands that SAZKA's operating profits have been
stable throughout 2009, it does not appear that the company is
reducing its indebtedness or that it is likely to materially
increase its discretionary cash flow base. SAZKA has historically
relied on short-term debt to provide about 20% of its debt
funding. S&P understand that SAZKA is currently reviewing a more
permanent approach to its debt funding with a group of creditors.
The ratings on SAZKA continue to reflect S&P's view of the
company's highly leveraged financial profile, which results from
its funding of the construction of the O2 Arena, an 18,000-seat
sports and entertainment complex in Prague. The ratings also
continue to be constrained by the company's aggressive financial
policy and a history of weak cash returns on capital investment.
Support for the ratings is provided, in S&P's view, by the
sustainable, cash-generative nature of SAZKA's well-established
domestic lottery business, which is covered by Czech lottery law.
SAZKA has a 94% share of the domestic lottery market, and more
than 6% of the domestic gaming market.
S&P aims to resolve the CreditWatch once there is clarity over the
refinancing of SAZKA's short-term debt or, in any event, within
the next three months.
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F I N L A N D
=============
RAHAXI INC: Sept. 30 Balance Sheet Upside Down by US$4,051,640
--------------------------------------------------------------
Rahaxi Inc. filed two earnings reports for the past couple of
weeks: The Company filed its annual report on Form 10-K for the
fiscal year ended June 30, 2009, on November 13 and its quarterly
report for the quarter ended September 30, 2009, on November 23.
The 10Q report was originally due November 16. The Company said
it was in the process of preparing and reviewing the financial and
other information for the 10-Q report. The Company said the Form
10-Q could not be completed on or before the November 16
prescribed due date without unreasonable effort or expense.
The Company posted a net loss of US$1,132,279 for the fiscal first
quarter ended September 30, 2009, from US$3,351,972 for the same
period a year ago. Total revenue -- from transaction processing,
consulting services, and hardware and related items -- was
US$1,237,942 for the September 30 quarter, compared to
US$1,246,485 for the year ago period.
At September 30, 2009, the Company had US$3,209,612 in total
assets against US$6,689,067 in total liabilities, resulting in
stockholders' deficiency of US$4,051,640.
The Company posted a net loss of US$17,983,146 for the fiscal year
ended June 30, 2009, from US$23,150,901 for fiscal 2008. Total
revenue -- from transaction processing, consulting services, and
hardware and related items -- was US$5,225,160 for fiscal 2009,
compared to US$6,259,707 for fiscal 2008.
At June 30, 2009, the Company had US$3,223,447 in total assets
against US$5,690,333 in total liabilities, resulting in
stockholders' deficiency of US$2,999,671.
In its November 13, 2009 audit report on the Company's 10-K, RBSM
LLP in New York, noted the Company is experiencing difficulty in
generating sufficient cash flow to meet it obligations and sustain
its operations, which raises substantial doubt about its ability
to continue as a going concern.
In its 10-Q report, the Company said it believes that anticipated
revenues from operations will be insufficient to satisfy its
ongoing capital requirements for the next 12 months. If the
Company's financial resources are insufficient, the Company will
require additional financing to execute its operating plan and
continue as a going concern. "The Company cannot predict whether
this additional financing will be in the form of equity or debt,
or be in another form. The Company may not be able to obtain the
necessary additional capital on a timely basis, on acceptable
terms, or at all. In any of these events, the Company may be
unable to implement its current plans for expansion, repay its
debt obligations as they become due, or respond to competitive
pressures, any of which circumstances would have a material
adverse effect on its business, prospects, financial condition and
results of operations," the Company said.
Management intends to raise financing through the sale of the
Company's stock in private placements to individual investors.
Management may also raise funds in the public markets. Management
believes that with this financing, the Company will be able to
generate additional revenues that will allow the Company to
continue as a going concern. This will be accomplished by hiring
additional personnel and focusing sales and marketing efforts on
the distribution of product through key marketing channels
currently being developed by the Company. The Company may also
pursue the acquisition of certain strategic industry partners
where appropriate, and may also seek to raise funds through debt
and other financings.
A full-text copy of the Company's quarterly report on Form 10-Q is
available at no charge at http://ResearchArchives.com/t/s?4a82
A full-text copy of the Company's annual report on Form 10-K is
available at no charge at http://ResearchArchives.com/t/s?4a83
Rahaxi, Inc., provides payment services and processing. Its
principal offices are in Wicklow, Ireland; the Company also has
offices in Helsinki, Finland; and Santo Domingo, the Dominican
Republic.
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G E R M A N Y
=============
BRENNTAG HOLDING: S&P Raises Corporate Credit Rating to 'B+'
------------------------------------------------------------
Standard & Poor's Ratings Services said that it had raised its
long-term corporate credit rating on Germany-based Brenntag
Holding GmbH to 'B+' from 'B'.
At the same time, the senior secured debt rating was raised to
'BB-' from 'B+'. This debt has a recovery rating of '2'
indicating Standard & Poor's expectation of substantial (70%-90%)
recovery in the event of a payment default. The rating on
Brenntag's subordinated debt was raised to 'B-' from 'CCC+'. This
debt has a recovery rating of '6', indicating Standard & Poor's
expectation of negligible (0%-10%) recovery in the event of a
payment default.
"The rating actions are based on Brenntag's strong operating
performance and significantly reduced leverage over the past 18
months," said Standard & Poor's credit analyst Per Karlsson.
Despite a 13% revenue decline in the first nine month of 2009,
Brenntag was able to maintain its EBITDA in absolute terms, thanks
to its flexible cost structure and ability to quickly reduce its
cost base. EBITDA increased slightly to about EUR397 million for
the period.
Furthermore, the group has been able to lower selling prices in
line with lower purchase prices and has even slightly improved its
gross margin in a falling chemical price environment. Lower
volumes and lower selling prices have positively influenced the
company's working capital needs and resulted in a cash inflow of
EUR235 million in the first nine months of 2009. In addition,
Brenntag reduced its capital expenditures and benefited from a
small capital increase of EUR40 million, which strengthened its
capital base. Although working capital requirements could again
increase if oil prices rise, S&P doesn't expect them to reach the
exaggerated level reported on Sept. 30, 2008.
The rating continues to be constrained by Brenntag's highly
leveraged debt structure as a result of its private equity
ownership and strong growth focus in past years. This is only
partly offset by what S&P considers to be a satisfactory business
risk profile, thanks to strong diversification, leading market
positions, and relatively stable profitability.
The stable outlook reflects S&P's expectation that Brenntag's
credit profile will continue to gradually improve, despite likely
lower sales volumes. This is thanks to the company's flexible
cost structure. S&P also expects Brenntag to continue to show a
stable operating performance in a currently very challenging
economic environment and strong free operating cash flow
generation in 2009.
GENERAL MOTORS: May Cut 5,400 German Jobs Under Opel Restructuring
------------------------------------------------------------------
Chris Reiter and Cornelius Rahn at Bloomberg News report that
General Motors Co. may close its plant in Belgium and cut 5,400
German jobs as the company seeks an accord with workers to
restructure its Adam Opel GmbH unit.
Bloomberg relates after presenting a reorganization plan to
representatives of 50,000 workers, Nick Reilly, Opel's acting
chief, said Wednesday the future of the factory in Antwerp and
2,300 workers there is "uncertain". Mr. Reilly, as cited by
Bloomberg, said a working group will be established to review
options for Antwerp. According to Bloomberg, Mr. Reilly said that
while the unit's four German sites will remain in operation, 50%
to 60% of the planned 9,000 job cuts will likely impact those
facilities.
"We must fight hard to keep our manufacturing operations in Europe
viable," Bloomberg quoted Mr. Reilly as saying at Opel's base in
Ruesselsheim, Germany, which will replace Zurich as GM's regional
headquarters. "Competition is intense and getting fiercer every
day."
GM, Bloomberg discloses, aims to wring EUR265 million a year in
savings from Opel's workforce before the unit burns through its
US$2.5 billion in cash, which Mr. Reilly has said could happen by
the end of the first quarter. GM, Bloomberg notes, plans to
present union -- approved proposals to European governments by the
middle of next month in a bid to win aid to reduce capacity by
20%.
Bloomberg notes Mr. Reilly said the unit's Polish plant will be
spared cuts, as will the Vauxhall brand's Ellesmere Port factory
in the U.K., though about 300 jobs posts are to go in Luton, north
of London.
Vauxhall
Steve Rothwell at Bloomberg News reports that GM will increase the
number of daily work shifts at Vauxhall from two to three.
Bloomberg relates GM said Thursday the boost in output at
Vauxhall's Ellesmere Port plant near Liverpool, England, will
support production of the new Astra model from 2011.
Bloomberg says in addition to cutting jobs, GM intends to
streamline Opel's management following the move from Zurich.
German Support
Andreas Cremer at Bloomberg News reports Justus Haucap, head of
the Monopolies Commission, which advises the federal government on
competition and regulation matters, said GM doesn't qualify for
aid under the so-called Germany Fund and it would be a "farce" if
the carmaker were granted the assistance to help restructure the
Opel division.
"One must give no support to GM if the fund's criteria are taken
seriously," Bloomberg quoted Mr. Haucap as saying said in a
telephone interview. "Opel's problems have nothing to do with the
financial crisis."
About General Motors
Headquartered in Detroit, Michigan, General Motors Corp.
(NYSE: GM) -- http://www.gm.com/-- as founded in 1908. GM
employs about 266,000 people around the world and manufactures
cars and trucks in 35 countries. In 2007, nearly 9.37 million GM
cars and trucks were sold globally under the following brands:
Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,
Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar
subsidiary is the industry leader in vehicle safety, security and
information services.
GM Europe is based in Zurich, Switzerland, while General Motors
Latin America, Africa and Middle East is headquartered in Miramar,
Florida.
As reported by the Troubled Company Reporter, GM reported net loss
of US$6.0 billion, including special items, in the first quarter
of 2009. This compares with a reported net loss of US$3.3 billion
in the year-ago quarter. As of March 31, 2009, GM had
US$82.2 billion in total assets and US$172.8 billion in total
liabilities, resulting in US$90.5 billion in stockholders'
deficit.
General Motors Corporation and three of its affiliates filed for
Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case
No. 09-50026). General Motors changed its name to Motors
Liquidation Co. following the sale of its key assets to a company
60.8% owned by the U.S. Government.
The Honorable Robert E. Gerber presides over the Chapter 11 cases.
Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H.
Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors
in their restructuring efforts. Al Koch at AP Services, LLC, an
affiliate of AlixPartners, LLP, serves as the Chief Executive
Officer for Motors Liquidation Company. GM is also represented by
Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as
counsel. Cravath, Swaine, & Moore LLP is providing legal advice
to the GM Board of Directors. GM's financial advisors are Morgan
Stanley, Evercore Partners and the Blackstone Group LLP.
Bankruptcy Creditors' Service, Inc., publishes General Motors
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by General Motors Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
UNYLON POLYMERS: Has Takeover Deal with Poland's ZAT
----------------------------------------------------
Plastics Information Europe reports that Zaklady Azotowe Tarnowie-
Moscicach will take over insolvent German polyamide producer
Unylon Polymers.
Financial details of the deal were not disclosed. The signed
purchase contract is subject to creditors' approval, the report
notes.
According to the report, the insolvency administrator and the
present owner, Unylon Group, believe the deal with ZAT will save
the company and the jobs in Guben.
Plastics Information Europe says Unylon’s Guben site in eastern
Germany can produce 48,000 t/y of polyamide polymers.
WESTLB AG: May Face Further Conditions on Additional Aid
--------------------------------------------------------
Matthew Newman at Bloomberg News reports that European union
regulator said West LB AG may face further conditions on
additional government aid.
Bloomberg recalls Germany's plan to extend EUR5 billion (US$7.5
billion) in guarantees for WestLB was approved by the European
Commission in May. According to Bloomberg, WestLB must
restructure before the end of 2011 as a condition for receiving
the aid and create a so-called bad bank for impaired assets.
As reported by the Troubled Company Reporter-Europe on Nov. 25,
2009, Bloomberg News said WestLB will transfer about EUR85 billion
of assets into a new unit, where they will be run down or sold,
with Germany injecting capital into the remaining entity.
About WestLB
Hearquartered in Duesseldorf, Germany, WestLB AG (DAX:WESTLB)
-- http://www.westlb.com/-- provides financial advisory,
lending, structured finance, project finance, capital markets
and private equity products, asset management, transaction
services and real estate finance to institutions.
In the United States, certain securities, trading, brokerage and
advisory services are provided by WestLB AG's wholly owned
subsidiary WestLB Securities Inc., a registered broker-dealer
and member of the NASD and SIPC.
WestLB's shareholders are the two savings banks associations in
NRW (25.15% each), two regional associations (0.52% each), the
state of NRW (17.47%) and NRW.BANK (31.18%), which is owned by
NRW (64.7%) and two regional associations (35.3%).
* * *
As reported in the Troubled Company Reporter-Europe on Sept. 17,
2009, Fitch Ratings affirmed WestLB AG's individual rating at 'E'.
Short-term IDR of WestLB was placed on RWN as well as the Support
Rating Floor of the bank.
WESTLB AG: Fitch Affirms Individual Rating at 'E'
-------------------------------------------------
Fitch Ratings said that WestLB AG's Long-term Issuer Default of
'A-' and Short-term IDR of 'F1' remain on Rating Watch Negative.
Its Support Rating '1' and Support Rating Floor 'A-' also remain
on RWN. The agency has affirmed the Individual Rating at 'E'.
Fitch has also affirmed WestLB's Long-term obligations guaranteed
by the state of North-Rhine Westphalia at 'AAA'.
The action follows WestLB's announcement that the German
government, through SoFFin (Sonderfonds
Finanzmarktstabilisierung), WestLB and its owners, the state of
North Rhine-Westphalia (rated 'AAA') and the regional savings
banks, have agreed a timetable to stabilize the bank. Fitch
understands that the stabilization measures include transferring
about EUR85 billion of non-strategic and securitized assets from
WestLB to a federal run-off institution by 30 April 2010, with
retrospective effect from 1 January 2010.
"WestLB's IDRs have to date been driven by the strong likelihood
of support from its owners, particularly the state of NRW. This
support is currently being tested," said Michael Dawson-Kropf,
Senior Director in Fitch's Financial Institutions team, based in
Frankfurt. "The proposed solution suggests the most likely source
of support for WestLB is shifting to the federal government and
away from its current owners. WestLB's successful restructuring
will involve achieving agreement between the state of NRW, the
savings banks in NRW and the various other public sector bodies
involved."
The RWN on WestLB's IDRs, Support Rating and Support Floor remain
in place. The degree of downside risk for WestLB's IDRs depends
on the extent to which any change in ownership or business model
may result in lower likelihood of support from NRW and/or the
federal government. This may reflect developments concerning
WestLB's future role in servicing the savings banks in NRW. The
conversion of Soffin's silent participations into share capital
could dilute the savings banks' ownership of WestLB, which may
signal weakening economic links with the regional savings banks.
There is also the potential for loss of public sector ownership by
end-2011 resulting from the agreement with the European Commission
on the restructuring process.
Even if WestLB were not to restructure successfully, a scenario
which Fitch considers unlikely, it could expect support in an
orderly wind-down in the agency's view. A default on any senior
obligations remains highly unlikely. The restructuring process
may take some years and progress will be reflected in WestLB's
Individual Rating.
WestLB is viewed by the state of NRW as a systemically important
bank. The German state has shown extremely strong support for
banks it considers systemically important. In a wind-down
scenario WestLB's IDRs would more likely reflect its dependence on
support from SoFFin than NRW and that the amount of downside risk
for WestLB's IDR and senior unsecured bondholders remains limited.
According to WestLB, the run-off institution will be capitalized
with EUR3 billion of capital from the bank as well as a EUR1
billion guarantee from the existing shareholders and their various
mutual support mechanisms. SoFFin will inject EUR3 billion of
capital into the WestLB core bank in the form of a silent
participation that from can be converted to shares from July 2010
in order to facilitate WestLB's restructuring. SoFFin is the
federal government's fund for providing capital and liquidity
support to the banking system. The restructuring process is
subject to the necessary official supervisory body and European
Commission approvals, but Fitch expects these to be given.
Fitch will be reviewing the details of the spin-off transaction
and its impact on WestLB's credit fundamentals as these become
clearer. The agency will consider WestLB's future loss absorption
capacity and the risk profile of those assets which stay in the
core bank, as well as the potential rating implications for the
rated liabilities which are spun off to the run-off institution.
* GERMANY: Banks Face Further Loan Write-Downs, Bundesbank Says
---------------------------------------------------------------
Frances Robinson and Jana Randow at Bloomberg News report that the
Bundesbank said German banks may have to write off another EUR90
billion (US$136 billion) on bad loans and securitization
instruments, threatening profitability even as the economy
recovers from recession.
Bloomberg relates the Frankfurt-based Bundesbank said Wednesday in
its Financial Stability Report that further write-downs on loans
may range from EUR50 billion to EUR75 billion. According to
Bloomberg, Bundesbank said banks may also need to write off
another EUR10 billion to EUR15 billion in losses from
securitization instruments, mostly collateralized debt
obligations.
"If the economic recovery continues, which the latest forecasts
indicate, losses would be lower," Bloomberg quoted Bundesbank
board member Hans-Helmut Kotz as saying at a press briefing.
Still, "it would be wrong to declare the financial and the related
economic crisis over."
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G R E E C E
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HELLAS II: Jr. Creditors Mull Court Action Over Offer Rejection
---------------------------------------------------------------
John Glover at Bloomberg News reports that subordinated
bondholders of Hellas Telecommunications II who are seeking to buy
the company's assets, said they were "disappointed" after failing
to secure the consent required from senior creditors to make the
purchase.
"Our latest proposal offered vastly superior economic returns to
all stakeholders," Bloomberg quoted Adrian Flook, a spokesman for
the subordinated bondholders committee, as saying in a statement
Wednesday. "Without the consent of the senior creditors of the
company, it is not possible for the subordinated holders' proposal
to be implemented."
Bloomberg recalls Hellas II, which is seeking to restructure as
much as EUR3 billion of debt, earlier this month selected Weather
Investments SpA, its current owner, as the preferred bidder.
According to Bloomberg, Mr. Flook said in the statement the
subordinated bondholders, who also made an offer to be a preferred
bidder, now intend to take action through the courts to defend
their interests.
Bloomberg relates the bondholders' committee, led by hedge fund
Aladdin Capital Holdings LLC, this week offered to pay
EUR450 million (US$678 million) to buy Hellas II's assets,
including Wind Hellas Telecommunications SA, the Greek mobile-
phone company. The bid included a fee of as much as 4 percentage
points for the first 51% of secured bondholders agreeing to the
deal, Bloomberg notes.
As reported by the Troubled Company Reporter-Europe on Nov. 19,
2009, Bloomberg News said Hellas Telecommunications II filed for
administration in the English High Court. Bloomberg disclosed
Hellas II moved its headquarters in August to London from
Luxembourg, allowing it to take advantage of a so- called pre-
packaged administration, using a scheme of arrangement.
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I R E L A N D
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AQUILAE CLO: Moody's Junks Rating on EUR12MM Class E Notes
----------------------------------------------------------
Moody's Investors Service took these rating actions on notes
issued by Aquilae CLO I PLC.
-- EUR216M Class A Floating Rate Notes (currently
EUR211,100,378 outstanding), due 2015, Downgraded to Aa2;
previously on Dec 19, 2003 Assigned Aaa
-- EUR12M Class B Floating Rate Notes (currently EUR12,000,000
outstanding), due 2015, Downgraded to Baa2; previously on
Mar 4, 2009 Aa2 Placed Under Review for Possible Downgrade
-- EUR15M Class C Deferrable Floating Rate Notes (currently
EUR15,000,000 outstanding), due 2015, Downgraded to Ba2;
previously on Mar 13, 2009 Downgraded to Baa3 and Remained On
Review for Possible Downgrade
-- EUR10.5M Class D Deferrable Floating Rate Notes (currently
EUR10,500,000 outstanding), due 2015, Downgraded to B3;
previously on Mar 13, 2009 Downgraded to Ba3 and Remained On
Review for Possible Downgrade
-- EUR12M Class E Deferrable Floating Rate Notes (currently EUR
12,000,000 outstanding), due 2015, Downgraded to Caa3;
previously on Mar 13, 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 second lien loan exposure.
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 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 2827), an increase in the amount of defaulted
securities (currently 2.62% of the portfolio), an increase in the
proportion of securities from issuers rated Caa1 and below
(currently 15% of the portfolio), a failure of the Class E par
value tests (currently 104.1%), and a 4.79% bucket of loans having
a maturity falling after the maturity of the notes. These
measures were taken from the recent trustee report dated 12 Oct
2009. Moody's also performed a number of sensitivity analyses,
including consideration of a further decline in portfolio WARF
quality combined with a decrease in the recovery value of the long
dated loans. 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.
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 partial principal repayment
to the senior notes post end of the reinvestment period in
December 2008, the recent deal performance in the current market
environment, the legal environment, specific documentation
features, and the collateral manager's track record. 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.
AVOCA CAPITAL: Fitch Affirms Rating on Class F Notes at 'CCC'
-------------------------------------------------------------
Fitch Ratings has taken various rating actions on three Avoca
Capital Holdings' collateralized loan obligations of leveraged
loans. The rating actions resolved the Rating Watch Negative
status assigned in August 2009 following an increase of defaults
which have been compounded by continued negative rating migration
in the European leveraged loan market. The rating actions are:
Avoca CLO V plc
-- EUR230.3m Class A1A (XS0256535567) affirmed at 'AAA'; Outlook
Stable; assigned Loss Severity Rating (LS) 'LS-2'
-- EUR64.3m Class A1B (XS0256536029) affirmed at 'AAA'; Outlook
Stable; assigned 'LS-2'
-- EUR46.5m Class A2 (XS0256536532) affirmed at 'AAA'; Outlook
Stable; assigned 'LS-3'
-- EUR34.5m Class B (XS0256536888) affirmed at 'AA'; Outlook
Negative; assigned 'LS-4'
-- EUR23.5m Class C1 (XS0256537423) downgraded to 'BBB' from
'A'; removed from RWN; assigned Negative Outlook and 'LS-4'
-- EUR9.5m Class C2 (XS0256538157) downgraded to 'BBB' from 'A';
removed from RWN; assigned Negative Outlook and 'LS-4'
-- EUR22.5m Class D (XS0256538405) downgraded to 'BB' from
'BBB'; removed from RWN; assigned Negative Outlook and 'LS-5'
-- EUR22m Class E (XS0256539122) affirmed at 'B'; removed from
RWN; assigned Negative Outlook and 'LS-5'
-- EUR10m Class F (XS0256539635) affirmed at 'CCC'; Outlook
Negative; assigned Recovery Rating 'RR-6'
Avoca CLO VI plc (Avoca VI)
-- EUR301.5m Class A1 (XS0272579763) affirmed at 'AAA'; Outlook
Stable; assigned 'LS-2'
-- EUR64m Class A2 (XS0272580266) affirmed at 'AAA'; Outlook
Stable; assigned 'LS-3'
-- EUR19.4m Class B (XS0272580779) affirmed at 'AA'; Outlook
Stable; assigned 'LS-4'
-- EUR31.5m Class C (XS0272580936) affirmed at 'A'; removed from
RWN; assigned Negative Outlook and 'LS-4'
-- EUR20m Class D (XS0272582395) affirmed at 'BBB'; removed from
RWN; assigned Negative Outlook and 'LS-5'
-- EUR23.85m Class E (XS0272583286) downgraded to 'B+' from
'BB'; removed from RWN; assigned Negative Outlook and 'LS-5'
-- EUR10m Class F (XS0272583955) downgraded to 'B-' from 'B';
removed from RWN; assigned Negative Outlook and 'LS-5'
-- EUR7m Class V combination notes (XS0272586891) downgraded to
'BBB' from 'BBB+'; removed from RWN; assigned Negative
Outlook
Avoca CLO VIII Limited
-- EUR298.4m Class A1 (XS0312372112) affirmed at 'AAA'; Outlook
Stable; assigned 'LS-2'
-- EUR52.6m Class A2 (XS0312377772) affirmed at 'AAA'; Outlook
Stable; assigned 'LS-4'
-- EUR34m Class B (XS0312378747) affirmed at 'AA'; Outlook
Negative; assigned 'LS-4'
-- EUR30m Class C (XS0312379984) downgraded to 'BBB' from 'A';
removed from RWN; assigned Negative Outlook and 'LS-5'
-- EUR21.5m Class D (XS0312380305) downgraded to 'BB' from
'BBB'; removed from RWN; assigned Negative Outlook and 'LS-5'
-- EUR21.5m Class E (XS0312380727) downgraded to 'B' from 'BB';
removed from RWN; assigned Negative Outlook and 'LS-5'
-- EUR8m Class U combination notes (XS0312840746) downgraded to
'BB' from 'A-'; removed from RWN; assigned Negative Outlook
The rating actions reflect the recent leveraged loan defaults and
increasing 'CCC'-rated asset exposure in the portfolios. Fitch
employed its global rating criteria for corporate CDOs to analyze
the quality of the underlying assets. In accordance with the
agency's cash flow analysis criteria, Fitch also modelled the
transactions' priority of payments including relevant structural
features such as the excess spread-trapping mechanism and coverage
tests. Although some credit protection remains for the downgraded
notes, Fitch's Outlook remains Negative. The performance of the
downgraded tranches is highly dependent on portfolio recovery
prospects. The Negative Outlooks reflect Fitch's view of the
increased likelihood of downgrades driven by lower-than-expected
recoveries.
Avoca V has suffered five defaults to date, which represents 10.8%
of the target par amount of the transaction. In addition, 16.7%
of the portfolio now consists of 'CCC' or lower rated obligors.
As a result of negative portfolio migration, the credit
enhancement of all tranches has been reduced and all its over-
collateralization tests, i.e. the class A, B, C, D, E, and F OC
tests are now breached. Interest payments to class B and lower-
ranked classes would henceforth be cut off until the OC tests are
back in compliance. The downgrades of the class C1, class C2 and
class D notes reflect their reduced protection following the
defaults and negative portfolio migration. The class E and class
F were already downgraded in February 2009. The affirmation of
the class A1A, class A1B, class A2 and class B notes reflects the
robust CE driven by OC and excess spread. In the last two payment
dates in February 2009 and August 2009, a total of EUR8.8m of
interest proceeds was diverted to repay the class A1A and class
A1B notes.
Avoca VI has suffered two defaults to date, which represents 2.4%
of the target par amount of the transaction. In addition, 8.7% of
the portfolio now consists of 'CCC' or lower rated obligors. As a
result of negative portfolio migration, the CE of all tranches has
been reduced and the class F OC test is now breached. The
affirmation of the class A1, class A2, class B, class C and class
D notes reflects the robust CE driven by OC and excess spread.
The downgrades of the class E and class F notes reflect their
reduced protection following the defaults and negative portfolio
migration. The class V combination notes are reliant on cash
distribution made to the class D and the equity holders. However,
the class E OC test is currently breached and consequently
cashflows are cut-off from the equity holders. As such the agency
is downgrading the class V combination notes.
Avoca VIII has suffered five defaults to date, which represents
5.8% of the target par amount of the transaction. In addition,
5.5% of the portfolio now consists of 'CCC' or lower rated
obligors. As a result of negative portfolio migration, the CE of
all tranches has been reduced and the class E OC test is now
breached. The affirmation of the class A1, class A2 and class B
notes reflects the robust CE driven by OC and excess spread. At
the last payment date in October 2009, EUR1.3 million of interest
proceeds were retained for future reinvestment. The downgrades of
the class C, class D, and class E notes reflect their reduced
protection following the defaults and negative portfolio
migration. The class U combination notes are reliant on cash
distribution made to the class D and class E notes. However, the
class C and class D OC tests could come under pressure, and
consequently interest distributions could be cut-off for the
combination notes. As such the agency is downgrading the class U
combination notes.
BUDGET TRAVEL: Ceases Trading; 172 Jobs Affected
------------------------------------------------
RTE News reports that Budget Travel is being wound up after a
provisional liquidator was appointed at the High Court.
The report relates the company ceased trading Wednesday evening
with the loss of 172 jobs and the closure of 17 retail shops.
Budget Travel is Ireland's largest tour operator. The company was
established in May 1975 and had a 30% share of the market.
EP MOONEY: Goes Into Liquidation; 95 Jobs Affected
--------------------------------------------------
Tim Healy and Breda Heffernan at Irish Independent report that EP
Mooney Ltd. has gone into liquidation with the loss of almost 100
jobs.
According to Irish Independent, the company has debts of more than
EUR22 million and had been in difficulty for several years.
Irish Independent relates EP Mooney Chief Executive Paraic Mooney
on Wednesday said he had sought bank support to continue in
business but was unable to secure funding because of the uncertain
outlook in the motor trade.
"As a result, the directors had no option but to terminate the
business, closing five branches with the loss of 95 jobs," Irish
Independent quoted Mr. Mooney as saying.
In the High Court on Wednesday Ms. Justice Mary Laffoy appointed
Paul McCann of Grant Thornton as provisional liquidator for the
company.
EP Mooney Ltd. is one of Ireland's largest car dealerships. The
company operates five garages in Dublin and employs 95 people. It
was founded in Dublin almost 40 years ago.
=========
I T A L Y
=========
SAFILO SPA: Hal Extends Offer Period for Sr. Notes Until Nov. 30
----------------------------------------------------------------
Andrew Reierson at Bloomberg News reports that HAL Holding NV said
it extended its offer to purchase Safilo Group SpA's senior notes
to Nov. 30 after getting tenders for 42.45% of the amount
outstanding as of 5 p.m. local time Thursday.
As reported by the Troubled Company Reporter-Europe on Nov. 13,
2009, Bloomberg News said Safilo warned it may default on its
banking debt if an offer for its bonds from Hal fails. Bloomberg
disclosed Hal agreed to buy a controlling stake in Safilo on
Oct. 19. According to Bloomberg, the deal is subject to a EUR300-
million bid for Safilo's bonds, for which Hal must capture at
least 60%.
Safilo Group SpA -- http://www.safilo.com/-- is an Italy-based
company operating in the eyewear sector. It designs, produces and
distributes such products as frames for reading glasses,
sunglasses, glasses for sport, ski masks, goggles and visors. Its
products are primarily manufactured in four plants in Italy, one
in Slovenia and China and are marketed in 130 countries worldwide
through 39 direct commercial subsidiaries and more than 130,000
retail distributors. The Group has 38 principal brands of which
10 directly owned and 28 licensed. Brands include Safilo, Oxydo,
Carrera, Smith, Alexander McQueen, A/X Armani Exchange, Banana
Republic, BOSS -- Hugo Boss, Bottega Veneta, Diesel, Valentino,
Dior, Emporio Armani and others.
* * *
As reported by the Troubled Company Reporter-Europe on Oct. 23,
2009, Fitch downgraded Italy-based eyewear designer and
manufacturer Safilo S.p.A.'s Long-term Issuer Default Rating to
'C' from 'CC'. Fitch simultaneously revised the Recovery Rating
on Safilo's senior credit facilities at to 'RR1' from RR2'. The
senior secured facilities -- rated 'B-' -- and Safilo's IDR remain
on Rating Watch Negative. Safilo Capital International S.A.'s
EUR195 million senior notes due 2013 were affirmed at 'C'. The
Recovery Rating for these notes remains 'RR6
===================
K A Z A K H S T A N
===================
AKTOBE MONTAGE: Creditors Must File Claims by December 9
--------------------------------------------------------
Creditors of LLP Aktobe Montage have until December 9, 2009, to
submit proofs of claim to:
The Specialized Inter-Regional
Economic Court of Aktobe
Satpaev Str. 16
Aktobe
Kazakhstan
The court commenced bankruptcy proceedings against the company on
September 11, 2009.
AKTOBE TRANS: Creditors Must File Claims by December 9
------------------------------------------------------
Creditors of LLP Aktobe Trans Montage have until December 9, 2009,
to submit proofs of claim to:
The Specialized Inter-Regional
Economic Court of Aktobe
Satpaev Str. 16
Aktobe
Kazakhstan
The court commenced bankruptcy proceedings against the company on
September 11, 2009.
ALMAZ MOTORS: Creditors Must File Claims by December 9
------------------------------------------------------
Creditors of LLP Almaz Motors have until December 9, 2009, to
submit proofs of claim to:
Micro District Jetysu-4 25/27
Almaty
Kazakhstan
The Specialized Inter-Regional Economic Court of Almaty commenced
bankruptcy proceedings against the company on September 8, 2009,
after finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of Almaty
Baizakov Str. 273b
Almaty
Kazakhstan
ASIA PROM: Creditors Must File Claims by December 9
---------------------------------------------------
Creditors of LLP Asia Prom Style have until December 9, 2009, to
submit proofs of claim to:
The Specialized Inter-Regional
Economic Court of Kostanai
Baitursynov Str. 70
Kostanai
Kazakhstan
The court commenced bankruptcy proceedings against the company on
September 14, 2009.
AVUAR LLP: Creditors Must File Claims by December 9
---------------------------------------------------
Creditors of LLP Trade Company Avuar have until December 9, 2009,
to submit proofs of claim to:
Micro District Jetysu-4 25/27
Almaty
Kazakhstan
The Specialized Inter-Regional Economic Court of Almaty commenced
bankruptcy proceedings against the company on September 3, 2009,
after finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of Almaty
Baizakov Str. 273b
Almaty
Kazakhstan
LSP LLP: Creditors Must File Claims by December 9
-------------------------------------------------
Creditors of LLP Company LSP have until December 9, 2009, to
submit proofs of claim to:
The Specialized Inter-Regional
Economic Court of North Kazakhstan
Brusilovsky Str. 60
Petropavlovsk
North Kazakhstan
Kazakhstan
The court commenced bankruptcy proceedings against the company on
July 27, 2009.
MIREEL LLP: Creditors Must File Claims by December 9
----------------------------------------------------
Creditors of LLP Mireel Gmbh have until December 9, 2009, to
submit proofs of claim to:
The Specialized Inter-Regional
Economic Court of South Kazakhstan
Tynybaev Str. 42
Shymkent
Kazakhstan
The court commenced bankruptcy proceedings against the company on
September 18, 2009.
PAN AGRO: Creditors Must File Claims by December 9
--------------------------------------------------
Creditors of LLP Pan Agro have until December 9, 2009, to submit
proofs of claim to:
Kurmangazy Str. 67-16
Almaty
Kazakhstan
The Specialized Inter-Regional Economic Court of Almaty commenced
bankruptcy proceedings against the company on January 16, 2009,
after finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of Almaty
Baizakov Str. 273b
Almaty
Kazakhstan
PLAZMA-D LLP: Creditors Must File Claims by December 9
------------------------------------------------------
Creditors of LLP Plazma-D have until December 9, 2009, to submit
proofs of claim to:
The Specialized Inter-Regional
Economic Court of Kostanai
Baitursynov Str. 70
Kostanai
Kazakhstan
The court commenced bankruptcy proceedings against the company on
September 14, 2009.
SMA DIL: Creditors Must File Claims by December 9
-------------------------------------------------
Creditors of LLP Sma Dil M have until December 9, 2009, to submit
proofs of claim to:
The Specialized Inter-Regional
Economic Court of South Kazakhstan
Tynybaev Str. 42
Shymkent
Kazakhstan
The court commenced bankruptcy proceedings against the company on
September 18, 2009.
===================
K Y R G Y Z S T A N
===================
ALFA FINANCE: Creditors Must File Claims by December 23
-------------------------------------------------------
LLC Micro Credit Company Alfa Finance is currently undergoing
liquidation. Creditors have until December 23, 2009, to submit
proofs of claim:
Inquires can be addressed to (0-555) 31-03-10
ARAL STROY: Creditors Must File Claims by December 16
-----------------------------------------------------
LLC Aral Stroy is currently undergoing liquidation. Creditors
have until December 16, 2009, to submit proofs of claim to:
Toktogul Str. 181
Bishkek
Kyrgyzstan
=====================
N E T H E R L A N D S
=====================
LEO-MESDAG BV: Moody's Cuts Rating on Class E Notes to 'Ba1'
------------------------------------------------------------
Moody's Investors Service has confirmed the rating of the Class A
Notes and downgraded the Classes B, C, D and E Notes issued by
LEO-MESDAG B.V. (amounts reflect initial outstandings):
-- EUR642.5M Senior Class A Commercial Mortgage-Backed Floating
Rate Notes due 2019, Confirmed at Aaa; previously on Oct 21,
2009 Aaa Placed On Review for Possible Downgrade
-- EUR20.5M Mezzanine Class B Commercial Mortgage-Backed
Floating Rate Notes due 2019, Downgraded to A1; previously on
Oct 21, 2009 Aa2 Placed On Review for Possible Downgrade
-- EUR112.5M Mezzanine Class C Commercial Mortgage-Backed
Floating Rate Notes due 2019, Downgraded to A3; previously on
Oct 21, 2009 Aa3 Placed On Review for Possible Downgrade
-- EUR142.5M Junior Class D Commercial Mortgage-Backed Floating
Rate Notes due 2019, Downgraded to Baa2; previously on Oct
21, 2009 A3 Placed On Review for Possible Downgrade
-- EUR82M Subordinated Class E Commercial Mortgage-Backed
Floating Rate Notes due 2019, Downgraded to Ba1; previously
on Oct 21, 2009 Baa3 Placed On Review for Possible Downgrade
Moody's has not assigned ratings to the Class X and Y Notes issued
by LEO-MESDAG B.V. The rating action concludes the review for
possible downgrade initiated on 21 October 2009. The rating
action takes Moody's updated central scenarios in account, as
described in Moody's Special Report "Moody's Updates on Its
Surveillance Approach for EMEA CMBS."
1) Transaction Overview
LEO-MESDAG B.V. represents the securitization of a commercial
mortgage loan secured by mainly first ranking mortgages on 70
retail properties and 3 car parks (the "Properties") located
throughout The Netherlands. All Properties are rented on 10-25
year contracts to mainly three tenants: Hema B.V. (44% of the
rental income of the properties), Magazijn "De Bijenkorf" B.V.
(28%) and Vroom & Dreesmann Warenhuizen B.V. (21)%. The balance
of 7% of rental income is generated by the car parks. At closing,
the three main tenants were all operating companies of the Maxeda
group. Since then, Hema B.V has been sold to Lion Capital LLP.
The Loan consists of two senior facilities; the "Senior Facility
A1" (EUR1,000 million) and "Senior Facility A2" (EUR50 million)
which mature in August 2016 and August 2017 respectively. A co-
ordination agreement determines the relationship between the two
Senior Facilities. The Loan does not benefit from scheduled
amortization, as a result the Loan's total outstanding balance has
remained unchanged since closing.
At closing, the key strengths of the transaction were the
geographic and property diversity, the quality of the Properties
-- Moody's assigned an average property grade of 1.7 on a scale of
1 (best) to 5 (worst) -- and the long weighted-average lease term
(20 years at closing). These features were viewed as the key
mitigants against the main weaknesses of the transaction, e.g.
the tenant concentration risk (operating companies of the Maxeda
group), the concentration risk of the single loan and the lack of
scheduled amortization of the Loan and the Notes.
2) Transaction Performance History
Between closing and August 2009, the reported ICR has increased
(from 1.5x to 1.6x), reflecting increasing rental cash flows.
The net rental cash flows increased to EUR67.9 million from
EUR65.9 million at closing. The latest re-valuation of the
Properties (December 2008) continued to show relative stable
values at EUR1,403 million, compared to the U/W value of
EUR1,399 million year-end 2007 and EUR1,371 million at closing.
Based on the latest valuation, the Loan's LTV decreased to 74.9%,
compared to 76.6% at closing (based on EUR 1,050 Loan balance).
The Loan has these "Default Level Covenants" and "Cash Trap Level
Covenants." Default Level Covenants: the ICR and the projected
ICR lower than 1.10x and the LTV higher than 90%. Cash Trap Level
Covenants: the ICR and the projected ICR lower than 1.30x and the
LTV higher than 85%.
3) Rating Rationale
The confirmation of the rating of the Class A Notes and the
downgrades of the Classes B, C, D, and E Notes follows a detailed
re-assessment of the Properties and the Loan's credit risk. As
outlined in more detail below, the rating action is mainly driven
by:
(i) Moody's higher default risk assessment in relation to the
loan maturity date, mostly driven by Moody's opinion
about future Dutch property market performance and by the
loan size;
(ii) The most recent performance of commercial property
markets in the Netherlands; and
(iii) Moody's opinion about future Dutch property market
performance.
The Notes benefit from the currently good loan performance driven
by the modest increase of net rental cash flow generated by the
Properties coupled with Moody's expectation that rental cash flows
will remain relatively stable in the foreseeable future. The
Properties are subject to index-linked (upward only) occupational
leases with operating companies of Maxeda (Bijenkorf and V&D
stores) and Lion Capital LLP (Hema stores). The Properties have
limited exposure to lease expiries/breaks until 2026. About 40%
of the current passing rent would expire in or before 2026, and a
further 41% before 2030.
Moody's has taken into consideration the property value increases
since closing, resulting in a December 2008 value of
EUR1,403 million, slightly above the U/W value at closing of the
transaction. Moody's expects however that the value of the
Properties will decline over the foreseeable future, mainly driven
by further yield widening. Moody's expects the value of the
Properties to recover only moderately from 2012 onwards. Taking
into account the size of the loan, in Moody's view, the
refinancing risk of the Loan has increased compared to closing,
resulting in, together with anticipated value decline, a higher
expected loss in relation to the Loan.
The current subordination levels for Moody's rated classes are
38.8%, 36.8%, 26.1%, 12.6% and 4.8% for the Class A, Class B, the
Class C, the Class D, and Class E Notes respectively. However,
the likelihood of higher than expected losses on the Loan has also
increased, which results in the downgrade action for all Moody's
rated Classes except the Class A Notes.
4) Moody's Portfolio Analysis
Property value. Since 2008, average property values across The
Netherlands have fallen considerably and are expected to continue
to decline further until 2010/2011. Moody's estimates that the
current market value of the Properties securing this transaction
is 12% lower compared to the reported December 2008 value
reflecting a value of EUR 1.23 billion. Moody's expects the value
of the Properties to decline to approximately EUR 1.13 billion
until the end of 2011. Taking into account the stable income,
further value declines will be driven by yield widening. Moody's
expects the value to moderately recover from 2012 onwards. The
reported U/W LTV as of August 2009 was 74.9%. Due to the
envisaged further value decline, Moody's expects the LTV to
increase to 93% and to decline to approximately 80% in August
2016. Moody's has taken the anticipated property value
development into account when analysing the default risk at
maturity and the loss given default for the Loan. In line with
the closing analysis, further sensitivity analysis was performed
using a vacant possession value during the term of the transaction
as the rental cashflows continue to rely on the concentrated
nature of tenants in place since closing. However, in Moody's
view the likelihood of all the Properties being vacant at the same
time is low.
Property Cash Flows. The reported net cash flows generated by the
Properties increased consistently since closing. Moody's expects
the net rental cash flows to remain stable due to current maximum
occupancy coupled with long remaining leases in place. Although
the Loan is subject to a 1.10x ICR covenant, Moody's does not
anticipate this covenant to be breached in the foreseeable future.
Given the tenant concentration in place, the future interest
coverage is sensitive to adverse tenant performance.
Refinancing Risk. The Loan's Senior Facility A1 and Senior
Facility A2 mature in August 2016 and August 2017 respectively.
Due to expected value recovery from 2012 onwards the Moody's LTV
at Loan maturity is expected to be only marginally higher compared
to November 25. However, mainly given the size of the loan at
loan maturity, in Moody's view, the default risk assessment of the
Loan has increased compared to the closing analysis. Overall, the
refinacing risk assessment is still relatively low.
Default Risk and Expected Loss. Moody's assesses a relatively low
default risk for the Loan. The transaction benefits from a very
good property portfolio and good transaction performance since
closing supported by rental cash flows based on long term
occupational leases with tenants maintaining a strong market
position in their local markets. Compared to closing, the
expected loss of the Loan increased, but is still relatively low,
which results in the rating confirmation of the Class A Notes and
the downgrades of the Class B, Class C, Class D and Class E Notes.
The property value cushion available to the Class A Noteholders is
still material. Based on Moody's expected trough value in
2010/2011, Moody's expects an LTV of 93% and a note-to-value ratio
of 57% for the Class A Notes.
QUEEN STREET: Moody's Junks Rating on EUR18MM Class E Notes
------------------------------------------------------------
Moody's Investors Service took these rating actions on notes
issued by Queen Street CLO II B.V. The Class A1 Note remains Aaa
mainly due to the current over collateralization.
-- EUR59,850,000 Class A2 Senior Secured Floating Rate Notes due
2024, Downgraded to A1; previously on March 4, 2009 Aa1
Placed Under Review for Possible Downgrade;
-- EUR34,875,000 Class B Senior Secured Floating Rate Notes due
2024, Downgraded to Baa1; previously on March 4, 2009 Aa2
Placed Under Review for Possible Downgrade;
-- EUR38,250,000 Class C Senior Secured Deferrable Floating Rate
Notes due 2024, Downgraded to Ba3; previously on March 18,
2009 Downgraded to Ba1 and Placed Under Review for Possible
Downgrade;
-- EUR16,875,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2024, Downgraded to B3; previously on March 18,
2009 Downgraded to B1 and Placed Under Review for Possible
Downgrade;
-- EUR18,000,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2024, Downgraded to Caa3; previously on March 18,
2009 Downgraded to Caa1 and Placed Under Review for Possible
Downgrade;
-- EUR14,000,000 Class X Combination Notes due 2024, Downgraded
to Ba3; previously on March 4, 2009 Baa2 Placed Under 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 a 10.5% mezzanine loan exposure.
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 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 2663), an increase in the amount of defaulted
securities (currently 2.69% of the portfolio), and mild
deterioration of the over collateralization ratios which are also
impacted by an adjustment of EUR4.7 million from assets that were
purchased at a discount (current notional of EUR16.7 million).
Moody's also observes that the transaction is exposed to a number
of mezzanine and junior CLO tranches in the underlying portfolio
(currently 5.06% of the portfolio). Some of these CLO tranches
are currently assigned low speculative-grade ratings and carry
depressed market valuations that may herald poor recovery
prospects in the event of default. These measures were taken from
the recent trustee report dated 20 October 2009. Moody's also
performed a number of sensitivity analyses, including
consideration of a further decline in portfolio WARF quality
combined with a decrease in the expected recovery rates. 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.
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
===========
ALYANS-STROY: Creditors Must File Claims by December 6
------------------------------------------------------
Creditors of LLC Alyans-Stroy (TIN 10278122241, PSRN
1060278101949) (Construction) have until December 6, 2009, to
submit proofs of claims to:
A. Yusupov
Temporary Insolvency Manager
Yu.Gagarina Str. 10/2-161
450000 Ufa
Bashkortostan
Russia
The Arbitration Court of Bashkortostan will convene at 10:45 a.m.
on February 25, 2010, to hear bankruptcy supervision procedure.
The case is docketed under Case No. ?07–11138/2009.
The Debtor can be reached at:
LLC Alyans-Stroy
Building 2A
Ayskaya Str. 69
450078 Ufa
Bashkortostan
Russia
CLUTCH PLANT: Creditors Must File Claims by December 2
------------------------------------------------------
Creditors of LLC Clutch Plant have until December 2, 2009, to
submit proofs of claims to:
G. Andreeva
Insolvency Manager
Post User Box 6492
50let Oktyabrya Str. 44
625039 Tumen
Russia
The Arbitration Court of Tumenskaya commenced bankruptcy
proceedings against the company after finding it insolvent. The
case is docketed under Case No. ?-70–3000/2009.
The Debtor can be reached at:
LLC Clutch Plant
Vladimir Khutoryanskiy Sq.
Tumen
Russia
SALAVAT-STROY: Creditors Must File Claims by December 6
-------------------------------------------------------
Creditors of CJSC Salavat-Stroy (TIN 0266022348, PSRN
1030203384969) (Construction)have until December 6, 2009, to
submit proofs of claims to:
O. Veretelnik
Temporary Insolvency Manager
Office 213
Babakina Str. 7
Khimki
121359 Moscow
Russia
The Arbitration Court of Bashkortostan will convene at 11:00 a.m.
on February 3, 2010, to hear bankruptcy supervision procedure.
The case is docketed under Case No. ?07–17645/2009.
The Debtor can be reached at:
CJSC Salavat-Stroy
Rabkorov Str. 4/1
Ufa
Bashkortostan
Russia
STROY-INDUSTRIYA: Creditors Must File Claims by December 2
----------------------------------------------------------
Creditors of LLC Stroy-Industriya (TIN 6164265800, PSRN
1076164008304) (Construction) have until December 2, 2009, to
submit proofs of claims to:
A. Shatokhin
Insolvency Manager
Post User Box 3394
344022 Rostov-on-Don
Russia
The Arbitration Court of Rostovskaya will convene at 4:00 p.m. on
November 26, 2009, to hear bankruptcy proceedings. The case is
docketed under Case No. ?-53–14389/2008.
The Debtor can be reached at:
LLC Stroy-Industriya
Pushkinskaya Str. 101
344002 Rostov-on-Don
Russia
VEKA CONSTRUCTION: Creditors Must File Claims December 6
--------------------------------------------------------
Creditors of LLC Veka Construction Company(TIN 3528079170, PSRN
1023501236494) have until December 6, 2009, to submit proofs of
claims to:
L. Likhanova
Insolvency Manager
Post User Box 1736
167011 Syktyvkar
Komi
Russia
The Arbitration Court of Vologodskaya commenced bankruptcy
proceedings against the company after finding it insolvent. The
case is docketed under Case No. ?13–2263/2009.
The Debtor can be reached at:
LLC Veka
Lunacharskogo Str. 51/5
Cherepovets
Russia
ZAPADNO-SIBIRSKAYA: Creditors Must File Claims by December 2
------------------------------------------------------------
Creditors of LLC Zapadno-Sibirskaya Construction Company (TIN
7203132083) have until December 2, 2009, to submit proofs of
claims to:
S. Shkarovskaya
Insolvency Manager
Office 10
Melnikayte Str. 90A
625026 Tumen
Russia
Tel: (3452) 20-22-93.
The Arbitration Court of Tumenskaya will convene at 9:00 a.m. on
October 15, 2009, to hear bankruptcy proceedings. The case is
docketed under Case No. ?70–2149/2009.
The Debtor can be reached at:
LLC Zapadno-Sibirskaya Construction Company
Office 901
Taymyrskaya Str. 72
Tumen
Russia
ZHIL-STROY: Samarskaya Bankruptcy Hearing Set December 2
--------------------------------------------------------
The Arbitration Court of Samarskaya will convene at 9:00 a.m. on
December 2, 2009, to hear bankruptcy supervision procedure on LLC
Zhil-Stroy Plus (TIN 6345010900, PSRN 1036301735645,)
(Construction) . The case is docketed under Case No. ?55–
18359/2009.
The Temporary Insolvency Manager is:
N. Ovchinnikova
Office 301
KomsomolskayaStr. 84a
Tolyatti
445009 Samarskaya
Russia
The Debtor can be reached at:
LLC Zhil-Stroy Plus
GromovoyStr. 33
Tolyatti
445051 Samarskaya
Russia
* RUSSIA: Companies to Obtain RUR500 Bln State Guarantees in 2010
-----------------------------------------------------------------
RIA Novosti reports that Russian Prime Minister Vladimir Putin on
Nov. 21 said Russian companies will be able to obtain state-
guaranteed loans totaling RUR500 billion (US$17 billion) in 2010.
The report relates addressing the United Russia party congress in
St. Petersburg, Vladimir Putin said that to date, state guarantees
have proved insufficient to enable companies to obtain credit amid
the global recession.
* KOMI REPUBLIC: Fitch Affirms Long-Term 'BB' Currrency Rating
--------------------------------------------------------------
Fitch Ratings has affirmed the Russian Republic of Komi's Long-
term foreign and local currency ratings at 'BB' respectively,
while affirming the region's Short-term foreign currency rating at
'B'. The agency has also affirmed its National Long-term rating
at 'AA-(rus)'. All the Long-term rating Outlooks are Stable.
The ratings take into account the region's high revenue
concentration in few companies, and its dependence on prime
natural resource extraction. This dependence renders it exposed
to price and demand fluctuations of commodities, particularly
coal, oil and gas, under the currently worsened economic
environment. However, the ratings also reflect the region's
above-national average economic profile, stable budgetary
performance, and moderate direct risk. The Stable Outlook
reflects Fitch's expectation that the Republic of Komi is likely
to report an operating margin of 9%-10% at end-2009, while
maintaining its debt at a manageable level.
The region's per capita GRP was 25.5% above the national average
in 2007; however, by end-2008 the global economic turmoil
negatively affected the region's extraction industry, leading to a
6.4% yoy drop in industrial output in Q109, although this
moderated to 3% yoy drop for H109. Slow economic recovery is
forecasted by the region's administration in Q409 and 2010.
The region's budgetary performance was sound in 2008 with an
operating margin of 14.5% (2007: 15.6%). Capex increased to 17.2%
of the total expenditure by end-2008 from 13.4% in 2007, leading
it to post a moderate deficit before debt variation of RUB0.9bn.
In Q109 tax revenues decreased, but were offset by the federal
transfers and tightened operating expenditure, which stabilized
the region's budgetary performance. Taxes amounted to 83.7% of
operating revenue in 2008 (2007: 82.6%), although fiscal
concentration remains high, with the top ten companies averaging
36.8% of total tax revenue in 2006-2007.
The region's direct risk decreased to 7.7% of current revenue in
2008 from 9.9% in 2007, and was 100% composed of domestic bonds,
with smooth repayment up to 2015. In H109 the region borrowed
RUB2.5 billion of short-term bank loans following a revenue
shortfall. Direct risk is expected to be stable at RUB5.3 billion
by end-2009, while its contingent liabilities are moderate and
strictly controlled. Fitch will monitor the refinancing of bank
loans maturing in H110
The Republic of Komi is located in the northwest of Russia.
Komi's 959,000 people account for 0.7% of the national population
and the region contributes 0.9% of the national GDP.
=========
S P A I N
=========
TDA 24: S&P Downgrades Rating on Class D Notes to 'B-'
------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on TDA 24, Fondo de
Titulizacion de Activos' class B, C, and D notes. At the same
time, S&P affirmed the class A1 and A2 notes.
These rating actions follow S&P's credit and cash flow analysis of
the most recent transaction information that S&P has received.
The results of S&P's analysis showed that, due to performance
deterioration in the underlying mortgage pool, the credit
enhancement available to the downgraded notes was not commensurate
with the ratings.
The issuer has drawn fully on the reserve fund to cover defaults
and low levels of available excess spread. It drew the bulk of
the fund on the June interest payment date, reducing it to 0.07%
of the outstanding collateral from 0.69% on the previous interest
payment date. When the level of cumulative defaulted loans
(defined as loans with arrears greater than 12 months) in TDA 24
reaches a certain percentage of the initial collateral balance,
the priority of payments changes. It postpones interest payments
to the related class of notes and diverts these funds to amortize
the most senior class of notes, thus trapping excess spread to
provide for defaults.
As of the end of September, cumulative defaults were 1.91% of the
initial collateral balance, up from around 0.75% in Q1 2009. The
trigger levels are 6.1%, 4.7%, and 3.5% for the class B, C, and D
notes, respectively.
The mortgage portfolio underlying this transaction is generating
higher delinquency levels. As of the end of October, S&P
calculates severe delinquencies, defined as arrears greater than
90 days (including outstanding defaulted loans), at 4.3% of the
closing balance. This reflects the increased risk of interest
deferral in the future.
The transaction closed in December 2005. The collateral backing
the notes comprises a portfolio of residential mortgage loans
secured over properties in Spain. Caja Castilla-La Mancha,
Credifimo, and Bankpyme originated and service the loans.
Ratings List
TDA 24, Fondo de Titulizacion de Activos
EUR490.156 Million Mortgage-Backed Floating-Rate Notes
Ratings Lowered and Removed From CreditWatch Negative
Rating
------
Class To From
----- -- ----
B BBB+ A-/Watch Neg
C BB- BBB/Watch Neg
D B- BB/Watch Neg
Ratings Affirmed
Class Rating
----- ------
A1 AAA
A2 AAA
===========
S W E D E N
===========
GENERAL MOTORS: Saab Union Dismayed on Koenigsegg Deal Collapse
---------------------------------------------------------------
Daily Bankruptcy Review reports that union leaders at Saab
Automobiles AB expressed frustration Wednesday at the collapse of
talks between Koenigsegg Group AB and General Motors Co. to sell
the Swedish auto maker. DBR says the union, however, remained
optimistic that a favorable outcome could be found.
The Wall Street Journal reported Koenigsegg Group AB said Tuesday
it was backing out of the deal to acquire General Motors Co.'s
Saab brand, citing a series of costly delays in closing its
planned purchase. The Journal's John D. Stoll said the agreement
with Koenigsegg, a Swedish maker of exotic cars, had won financial
backing from the Swedish government, but in the end, taking on
Saab proved to be too costly for a boutique car maker with no
high-volume manufacturing experience.
The New York Times reported that GM said Tuesday its board planned
to determine next week what to do with Saab. Closing the brand,
as GM initially planned to do if it could not find a buyer, is a
strong possibility, two people with direct knowledge of the
company's plans said, according to NY Times. The people spoke on
condition of anonymity because the board had not made its
decision.
NY Times said other options for GM are to seek another buyer or
keep Saab, though both those steps are considered less likely. NY
Times notes that when Penske Automotive terminated its deal to buy
Saturn in September, GM immediately announced that the brand and
its dealerships would close.
The Journal reported officials of the Swedish government,
currently the only source of financing for a Saab restructuring,
said the future of the operation and its 4,000 workers hinges on
another buyer surfacing. In an interview Tuesday, Saab Managing
Director Jan-Ake Jonsson said it is "premature" to speculate on
the company's fate, Mr. Stoll relates.
"Mr. Jonsson said he was informed of Koenigsegg's decision late
Monday. Because he had been dealing exclusively with Koenigsegg
and its partner, China's Beijing Automotive Industry Holding Co.,
for the past several months, he said it is impossible to gauge
whether there remains an appetite among other investors for Saab,"
according to Mr. Stoll.
According to the Journal, many industry observers say the
emergence of another buyer for Saab is unlikely amid the car
business' historic downturn.
Mr. Stoll said the surprise collapse of the Saab deal means GM and
its newly formed board of directors are faced with yet another
tough decision on the company's global product portfolio. In
recent months, the board approved, then ultimately reversed, Chief
Executive Frederick "Fritz" Henderson's plan to sell majority
control of GM's Germany-based Opel unit. As part of its
downsizing, GM also is phasing out its Pontiac brand, the Journal
notes.
"If GM chooses to keep Saab, it may have to find a way to replace
at least part of the EUR400 million (US$598 million) loan from the
European Investment Bank that the Swedish government guaranteed to
Saab. Under its terms, Saab needs to find a private investor to
take it over," according to Mr. Stoll.
According to the Journal, with projected sales of fewer than
50,000 vehicles globally this year, Saab represents less than 1%
of GM's total sales. Revamping its aging vehicle lineup and
retooling its plants could consume billions of dollars.
NY Times said GM paid US$600 million for half of Saab in 1990 and
US$125 million for the rest in 2000. Terms of the deal with
Koenigsegg have not been revealed, but it was contingent on US$600
million of financing from the European Investment Bank and Swedish
government guarantees, NY Times says.
GM, the Journal recalled, purchased half of Saab about 20 years
ago for US$500 million, and picked up the other half a decade
later for under US$200 million. GM has said Saab recorded only
one year of black ink during that period.
According to NY Times, analysts believe closing Saab would cost GM
considerably less than it is spending to shut down Saturn, and
failing to sell Saab is not expected to affect GM’s post-
bankruptcy recovery.
About General Motors
Headquartered in Detroit, Michigan, General Motors Corp.
(NYSE: GM) -- http://www.gm.com/-- as founded in 1908. GM
employs about 266,000 people around the world and manufactures
cars and trucks in 35 countries. In 2007, nearly 9.37 million GM
cars and trucks were sold globally under the following brands:
Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,
Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar
subsidiary is the industry leader in vehicle safety, security and
information services.
GM Europe is based in Zurich, Switzerland, while General Motors
Latin America, Africa and Middle East is headquartered in Miramar,
Florida.
As reported by the Troubled Company Reporter, GM reported net loss
of US$6.0 billion, including special items, in the first quarter
of 2009. This compares with a reported net loss of US$3.3 billion
in the year-ago quarter. As of March 31, 2009, GM had
US$82.2 billion in total assets and US$172.8 billion in total
liabilities, resulting in US$90.5 billion in stockholders'
deficit.
General Motors Corporation and three of its affiliates filed for
Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case
No. 09-50026). General Motors changed its name to Motors
Liquidation Co. following the sale of its key assets to a company
60.8% owned by the U.S. Government.
The Honorable Robert E. Gerber presides over the Chapter 11 cases.
Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H.
Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors
in their restructuring efforts. Al Koch at AP Services, LLC, an
affiliate of AlixPartners, LLP, serves as the Chief Executive
Officer for Motors Liquidation Company. GM is also represented by
Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as
counsel. Cravath, Swaine, & Moore LLP is providing legal advice
to the GM Board of Directors. GM's financial advisors are Morgan
Stanley, Evercore Partners and the Blackstone Group LLP.
Bankruptcy Creditors' Service, Inc., publishes General Motors
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by General Motors Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000).
=====================
S W I T Z E R L A N D
=====================
ALOIS WUERSCH: Claims Filing Deadline is November 30
----------------------------------------------------
Creditors of Alois Wuersch Landesprodukte AG are requested to file
their proofs of claim by November 30, 2009, to:
Bernadette Wuersch Iacconi
Im Wygarte 7
4314 Zeiningen
Switzerland
The company is currently undergoing liquidation in Killwangen.
The decision about liquidation was accepted at an extraordinary
general meeting held on September 3, 2009.
ANDREA CANELLA: Claims Filing Deadline is November 30
-----------------------------------------------------
Creditors of Andrea Canella GmbH are requested to file their
proofs of claim by November 30, 2009, to:
Andrea Canella
Liquidator
Madetswilerstrasse 4
8332 Russikon
Switzerland
The company is currently undergoing liquidation in Russikon. The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on September 30, 2009.
BEFAG FERTIGPARKETT: Claims Filing Deadline is November 30
----------------------------------------------------------
Creditors of Befag Fertigparkett Schweiz GmbH are requested to
file their proofs of claim by November 30, 2009, to:
Albert Maechler
Via Somplaz 57
7512 Champfer
Switzerland
The company is currently undergoing liquidation in St. Moritz.
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on June 19, 2009.
BHA - AUFZUEGE: Claims Filing Deadline is November 30
-----------------------------------------------------
Creditors of BHA - Aufzuege GmbH are requested to file their
proofs of claim by November 30, 2009, to:
Urs Buergin
Obere Breite 3
9215 Buhwil
Switzerland
The company is currently undergoing liquidation in Kradolf-
Schoenenberg. The decision about liquidation was accepted at an
extraordinary shareholders' meeting held on August 31, 2009.
BODO GMBH: Claims Filing Deadline is November 30
------------------------------------------------
Creditors of Bodo GmbH are requested to file their proofs of claim
by November 30, 2009, to:
Provida Management Services AG
Neustrasse 2
8590 Romanshorn
Switzerland
The company is currently undergoing liquidation in Horn/TG. The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on October 14, 2009.
F. BEREUTER: Claims Filing Deadline is November 30
--------------------------------------------------
Creditors of F. Bereuter Bauberatung AG are requested to file
their proofs of claim by November 30, 2009, to:
Areva Treuhand AG
Liquidator
Achslenstrasse 11
9016 St. Gallen
Switzerland
The company is currently undergoing liquidation in Rorschach. The
decision about liquidation was accepted at an extraordinary
general meeting held on October 12, 2009.
FMJ GROUP: Claims Filing Deadline is November 30
------------------------------------------------
Creditors of FMJ Group GmbH are requested to file their proofs of
claim by November 30, 2009, to:
Stephan Slunitschek
Rue de Malatrex 52
1201 Genève
Switzerland
The company is currently undergoing liquidation in Altstaetten.
The decision about liquidation was accepted according to the
paragraph 153 HregV on September 10, 2008.
FMJ SALES: Claims Filing Deadline is November 30
------------------------------------------------
Creditors of FMJ Sales GmbH are requested to file their proofs of
claim by November 30, 2009, to:
Stephan Slunitschek
Rue de Malatrex 52
1201 Genève
Switzerland
The company is currently undergoing liquidation in Altstaetten.
The decision about liquidation was accepted according to the
paragraph 153 HregV on September 10, 2008.
FMJ TECHNOLOGY: Claims Filing Deadline is November 30
-----------------------------------------------------
Creditors of FMJ Technology GmbH are requested to file their
proofs of claim by November 30, 2009, to:
Stephan Slunitschek
Rue de Malatrex 52
1201 Genève
Switzerland
The company is currently undergoing liquidation in Altstaetten.
The decision about liquidation was accepted according to the
paragraph 153 HregV on September 10, 2008.
GALINA AG: Claims Filing Deadline is November 30
------------------------------------------------
Creditors of Galina AG are requested to file their proofs of claim
by November 30, 2009, to:
Urs Weber
Liquidator
Goethestrasse 61
9008 St. Gallen
Switzerland
The company is currently undergoing liquidation in St. Gallen.
The decision about liquidation was accepted at an extraordinary
general meeting held on October 6, 2009.
GARAGE DANIEL: Claims Filing Deadline is November 30
----------------------------------------------------
Creditors of Garage Daniel Rebmann AG are requested to file their
proofs of claim by November 30, 2009, to:
Daniel Rebmann
Liquidator
Riedernrain 215
3027 Bern
Switzerland
The company is currently undergoing liquidation in Bern. The
decision about liquidation was accepted at an extraordinary
general meeting held on October 2, 2009.
GHRAMPOL GMBH: Claims Filing Deadline is November 30
----------------------------------------------------
Creditors of ghrampol GmbH are requested to file their proofs of
claim by November 30, 2009, to:
Beat Streit
Oberdorf
3916 Ferden
Switzerland
The company is currently undergoing liquidation in Ferden. The
decision about liquidation was accepted at a shareholders' meeting
held on June 10, 2009.
H. OCHSNER: Claims Filing Deadline is November 30
-------------------------------------------------
Creditors of H. Ochsner GmbH are requested to file their proofs of
claim by November 30, 2009, to:
H. Ochsner GmbH
Hauptstrasse 56
9042 Speicher
Switzerland
The company is currently undergoing liquidation in Speicher. The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on October 9, 2009.
HECU TIEFBAU: Claims Filing Deadline is November 30
---------------------------------------------------
Creditors of HeCu Tiefbau GmbH are requested to file their proofs
of claim by November 30, 2009, to:
R. Hengartner
Schneggenackerstrasse 210
4634 Wisen
Switzerland
The company is currently undergoing liquidation in Liestal. The
decision about liquidation was accepted at a shareholders' meeting
held on October 8, 2009.
HPK HANDEL: Claims Filing Deadline is November 30
-------------------------------------------------
Creditors of HPK Handel GmbH are requested to file their proofs of
claim by November 30, 2009, to:
Hanspeter and Pia Krieg-Wüthrich
Trachselwaldstrasse 2
3455 Gruenen
Switzerland
The company is currently undergoing liquidation in Sumiswald. The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on June 16, 2009.
I + M BETEILIGUNG: Claims Filing Deadline is November 30
--------------------------------------------------------
Creditors of I + M Beteiligung AG are requested to file their
proofs of claim by November 30, 2009, to:
I + M Beteiligung AG
Bruggerstrasse 44
5400 Baden
Switzerland
The company is currently undergoing liquidation in Baden. The
decision about liquidation was accepted at a general meeting held
on October 7, 2009.
MNZ HOLDING: Claims Filing Deadline is November 30
--------------------------------------------------
Creditors of MNZ Holding AG are requested to file their proofs of
claim by November 30, 2009, to:
Peter Rohner
Loewenstrasse 25
8001 Zurich
Switzerland
The company is currently undergoing liquidation in Zug. The
decision about liquidation was accepted at an extraordinary
general meeting held on September 28, 2009.
PS CAPITAL: Claims Filing Deadline is November 30
-------------------------------------------------
Creditors of PS Capital Management AG are requested to file their
proofs of claim by November 30, 2009, to:
Peter Rohner
Loewenstrasse 25
8001 Zurich
Switzerland
The company is currently undergoing liquidation in Zug. The
decision about liquidation was accepted at an extraordinary
general meeting held on September 28, 2009.
RENE BURKHARD: Claims Filing Deadline is November 30
----------------------------------------------------
Creditors of René Burkhard GmbH are requested to file their proofs
of claim by November 30, 2009, to:
Rene Burkhard
Liquidator
Madetswilerstrasse 4
8332 Russikon
Switzerland
The company is currently undergoing liquidation in Russikon. The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on September 30, 2009.
VISA TREUHAND: Claims Filing Deadline is November 30
----------------------------------------------------
Creditors of Visa Treuhand und Revision AG are requested to file
their proofs of claim by November 30, 2009, to:
Gallus Keel
Liquidator
Quellenrain 39
3063 Ittigen
Switzerland
The company is currently undergoing liquidation in Ittigen. The
decision about liquidation was accepted at an extraordinary
general meeting held on June 22, 2009.
===========
T U R K E Y
===========
DOGAN YAYIN: Talks with Regulators on US$3.3 Bln Tax Fine Fail
--------------------------------------------------------------
Delphine Strauss and Gerrit Wiesman at The Financial Times report
that talks between Dogan Yayin Holding and Turkish tax authorities
ended early on Wednesday without an agreement on settling a record
TRY4.8 billion (US$3.2 billion) fine that threatens Turkey's main
media group.
According to the FT, the failure of talks means Dogan Yayin must
now contest the fine in court battles that will prolong
uncertainty and complicate its relations with international
partners.
As reported by the Troubled Company Reporter-Europe on Nov. 23,
2009, German publisher Axel Springer plans to buy a 29% stake in
Dogan Yayin, provided the group's troubles with regulators and the
tax fine are "resolved successfully."
Dogan Yayin Holding AS -- http://www.dyh.com.tr/-- is a Dogan
Group holding company based in Istanbul, Turkey, established as a
media-entertainment conglomerate, active in the newspaper,
magazine and book publishing, television and radio broadcasting,
printing and news media sectors through its subsidiaries. Its
publishing and broadcasting products include magazines, daily
newspapers, national and international television stations,
thematic and interactive television channels and radio stations.
DYH also runs a television production and a record label company,
as well as two printing companies. It operates websites designed
for various purposes, and offers a digital television platform, in
addition to other online and digital services. DYH is active in
the retail sector through D&R and Yaysat, which distribute the
Holding's products. It also provides foreign trade, factoring and
mortgage services. DYH holds international partnerships with such
companies as AOL-Time Warner, the Universal Music Group and Burda
GmbH.
* * *
As reported in the Troubled Company Reporter-Europe on Sept. 14,
2009, Fitch Ratings downgraded Turkey-based Dogan Yayin Holding's
Long-term foreign and local currency Issuer Default ratings to 'B'
from 'B+' respectively. Both ratings remain on Rating Watch
Negative.
=============
U K R A I N E
=============
FORSAGE PLUS: Creditors Must File Claims by November 29
-------------------------------------------------------
Creditors of LLC Forsage Plus (code EDRPOU 35120195) have until
November 29, 2009, to submit proofs of claim to:
V. Cherepenko
Insolvency Manager
Moscow Str. 54-a
54017 Nikolayev
Ukraine
The Economic Court of Nikolayev commenced bankruptcy proceedings
against the company on October 15, 2009. The case is docketed
under Case No. 18/167/09.
The Court is located at:
The Economic Court of Nikolayev
Admiralskaya Str. 22-a
54009 Nikolayev
Ukraine
The Debtor can be reached at:
LLC Forsage Plus
Office 33
Lenin Ave. 189
54003 Nikolayev
Ukraine
ROSRESOURCE LLC: Creditors Must File Claims by November 29
----------------------------------------------------------
Creditors of LLC Trading House Rosresource (code EDRPOU 31940799)
have until November 29, 2009, to submit proofs of claim to:
V. Makarichev
Insolvency Manager
Office 7
Poznanskaya Str. 7
61118 Kharkov
Ukraine
The Economic Court of Kharkov commenced bankruptcy proceedings
against the company on October 19, 2009. The case is docketed
under Case No. B-50/81-09.
The Court is located at:
The Economic Court of Kharkov
Svoboda Square 5
61022 Kharkov
Ukraine
The Debtor can be reached at:
LLC Trading House Rosresource
50 years of VLKSM Str. 56
61153 Kharkov
Ukraine
ZAPOROZHYE AGRICULTURAL: Creditors Must File Claims by November 29
------------------------------------------------------------------
Creditors of OJSC Zaporozhye Agricultural Machine and
Technological Station (code EDRPOU 30242064) have until
November 29, 2009, to submit proofs of claim to:
L. Alekseyeva
Insolvency Manager
Office 7
Issledovatelskaya stantsiya Str. 70a
69031 Zaporozhye
Ukraine
The Economic Court of Zaporozhye commenced bankruptcy proceedings
against the company on September 22, 2009. The case is docketed
under Case No. 19/193/04.
The Court is located at:
The Economic Court of Zaporozhye
Shaumian Str. 4
69600 Zaporozhye
Ukraine
The Debtor can be reached at:
OJSC Zaporozhye Agricultural Machine
and Technological Station
Lenin Str. 152-v
69600 Zaporozhye
Ukraine
===========================
U N I T E D K I N G D O M
===========================
BORDERS UK: In Administration; 1,150 Jobs Affected
--------------------------------------------------
Philip Duffy, Geoff Bouchier and David Whitehouse of MCR have been
appointed as Joint Administrators of book-store chain Borders (UK)
Ltd.
The Administrators are currently working with the management of
Borders (UK) Ltd to maximize the realization for the Company's
creditors. Some 1,150 employees will be affected by the
administration.
The administration follows the continuing pressure on the retailer
from increased Internet competition, which has accelerated over
the last year with sales levels falling further behind prior year
levels. As a result the company has suffered from severe cash
flow pressure and several of the Company's suppliers have placed
the business on stop or reduced credit limits. A number of credit
insurers have also reduced cover to the Company.
Borders opened in Britain for the first time in 1997. Brothers
Tom and Louis Borders established its American parent in 1971. It
was spun off from Borders Group in 2007.
Phil Duffy commented: "All stores currently remain open for
business as normal while the Administrators undertake a review of
the Company's affairs and seek a purchaser for all or some of the
Company's stores in which there has already been interest."
"All outstanding employee wages have been paid up to date and
ongoing wages for retained staff will continue to be paid as an
expense of the Administration."
"The appointment of MCR as Administrators to the business is
indicative of the weakening position of book retailers in the
current market with competition on bestsellers from supermarkets
and the growing strength of the digital and on-line markets in
this sector," he continued.
Borders UK Ltd. -- http://www.borders.co.uk/-- offers books,
magazines, music, and DVDs through some 40 Borders stores
throughout the UK. Borders (UK) Ltd has 45 branded Borders and
Books Etc stores across the UK.
BRITISH MIDLAND: Mulls 600 Job Cuts, Route Closures
---------------------------------------------------
Pilita Clark at The Financial Times reports that British Midland
is to shed nearly 600 jobs and close routes in an effort to cut
costs.
According to the FT, the airline, which earlier this month shed
158 jobs at its bmibaby low-cost subsidiary, is also considering
shutting down its final salary pension scheme and will start
returning seven of the 39 aircraft in its fleet to leasing
companies.
The FT says the airline's flights from Heathrow to Brussels, Kiev,
Tel Aviv and Aleppo in Syria will be suspended from January and
its Heathrow-Amsterdam service from March. Its Palma and Venice
services from Heathrow will not be reinstated next summer, and it
will offer services to Brussels under an arrangement with Brussels
Airlines, the FT states.
As reported by the Troubled Company Reporter-Europe on Nov. 12,
2009, The Times said BMI may not be able to continue as a going
concern beyond next year. The Times disclosed unpublished
financial accounts showed that bmi, which employs 4,800 people,
needs GBP190 million of additional funding by the end of next
October. The accounts were signed off on October 23 and Deloitte,
its accountant, made it clear that there was no guarantee
Lufthansa would stand behind its British subsidiary or give it
further financial support, The Times noted. The Times said bmi's
pre-tax losses last year were GBP155.6 million, compared with a
profit of GBP15.5 million the year before.
British Midland Airways, which does business as bmi, --
http://www.iflybritishmidland.com/-- carries passengers to some
30 countries, mainly in the UK but also in continental Europe, the
Middle East, Asia, and Africa. It operates a fleet of about 50
jets, including Airbus and Embraer models. Low-fare subsidiary
bmibaby serves about 30 destinations in Europe with a fleet of
about 20 Boeing 737s. bmi is a member of the Star Alliance global
marketing group, which includes UAL's United Airlines, Air Canada,
and Singapore Airlines. In mid-2009, fellow Star Alliance member
and global airline giant Lufthansa acquired majority ownership of
bmi.
CATTLES PLC: Has Standstill and Equalization Deal with Creditors
----------------------------------------------------------------
Cattles plc has reached an agreement with its key financial
creditors regarding a formal standstill and equalization
agreement, subject to the approval of the holders of the 2014 and
2017 bonds at Bondholder meetings on December 17, 2009. The
Company has also agreed certain modifications to the terms of its
bank facilities, private placement notes and bonds. Consent
Solicitation Memoranda have been sent to the Bondholders today to
call the Bondholder meetings on December 17, 2009.
The signing of the SEA and these modifications should improve the
likelihood of the Company achieving its restructuring objectives,
namely:
* to stabilize the financial position of the Company and its
subsidiaries; and
* against this background, to continue discussions with the
Company's key financial creditors with a view to agreeing a
consensual restructuring of the Group.
Key Terms of the SEA
The SEA was signed Wednesday, Nov. 25, by the Company, Welcome
Financial Services Limited, certain other members of the Group
and, among others, lenders of certain syndicated and bilateral
facilities to the Company, certain guaranteed hedging
counterparties, certain unguaranteed hedging counterparties and
holders of certain private placement notes issued by the Company.
It is anticipated that the SEA will become effective on
December 17, 2009 when HSBC Trustee (C.I.) Limited will accede to
the SEA as trustee for the Bondholders, subject to the formal
approval of the Bondholders. The Company has received irrevocable
undertakings from Bondholders representing 79.91% of the 2014
bonds (by nominal value) and 77.81% of the 2017 bonds (by nominal
value) to vote in favor of the resolutions to be proposed at the
Bondholder meetings and therefore the Company expects that such
resolutions will be duly passed.
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.
LAND HERITAGE: Preparing to Pay Dividend to Creditors
-----------------------------------------------------
Jo Milner and Stephen Cork of Smith & Williamson, the Liquidators
of Land Heritage (UK) Limited, are in the process of finalizing
certain matters in the liquidation and will soon be able to pay a
dividend to creditors.
They are waiting on the return of less than 40 outstanding
transfer packs to maximize the return to creditors. A total of
436 transfer packs have already been completed and returned. The
liquidators require the completed packs to be returned by
December 8, 2009. Only plot holders who have returned their packs
by this date will be eligible to participate in the dividend.
Unless the missing transfer packs are returned properly completed
then those plot holders will be unable to participate in any
dividend. The packs need to be returned because they enable us to
transfer the plots of land back to the company, resulting in a
near complete plot of land being in the possession of the company
and available for sale. The more complete the sites are the
better the final return will be for the creditors. To maximize
the payout to the creditors as many plot holders as possible need
to transfer the plots back to us. If plot holders refuse to
return the plots then they will not be able to participate in the
distribution to creditors, warns Jo Milner, associate director of
Restructuring and Recovery Services at Smith & Williamson.
The company has been in liquidation since December 2006 after the
FSA intervened to stop the company trading as it was operating an
unauthorized collective investment scheme by offering plots of
land to the public under a land banking scheme. Since then the
liquidators have successfully won damages from its former advisors
which have enabled them to look to make a payment to the unsecured
creditors, including plot holders who agree to return the plots of
land to the company.
VEDANTA RESOURCES: S&P Affirms Corporate Credit Rating at 'BB'
--------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB' corporate
credit rating on London-based mining and metals company Vedanta
Resources PLC. The outlook is stable. At the same time, Standard
& Poor's affirmed the 'BB' issue ratings on the company's senior
unsecured debt. S&P removed the ratings from CreditWatch with
negative implications, where they were initially placed on
June 26, 2009.
The rating affirmation follows S&P's review of Vedanta's financial
policy, growth aspirations, and asset investment/divestment
strategies. "The 'BB' rating reflects S&P's opinion of: the
substantial execution risks at some of the company's large
projects under construction; the location of a sizable portion of
the assets in India; Vedanta's aggressive debt-funded growth
strategy; and its exposure to volatile London Metals Exchange-
traded metals prices and demand level," said Standard & Poor's
credit analyst Craig Parker.
Partly offsetting these weaknesses is S&P's view of: Vedanta's
diversified metal and mining assets; its favorable market position
and proximity to the resource-hungry Indian economy; the company's
cost-competitive operations, with an increasing reserve base;
corrective measures that the company implemented in response to
the market downturn; and a financial policy that seeks to maintain
sizable cash balances and robust liquidity.
"In S&P's opinion, Vedanta is attempting to complete a sizable and
ambitious capital-expenditure program relative to the company's
free cash generation. S&P believes this program poses substantial
execution risks at a time when global demand for mining and metals
is fragile," said Mr. Parker.
Higher debt, coupled with lower operating cash flow, has adversely
affected Vedanta's credit metrics. The company's half-year
results to Sept. 30, 2009, were aided by increased volumes, better
operational efficiencies, higher plant availability, and improved
mine management. However, lower commodity prices and by-product
realizations resulted in weak credit metrics, with operating
margins at 25%, and ratios of adjusted debt to EBITDA of 2.4x,
annualized funds from operations (FFO) to adjusted debt of 31%,
and adjusted debt-to-capital of 20%.
The stable outlook reflects S&P's expectation that the company
will continue to manage its cost structure, cash outflows, and
liquidity position to keep its financial ratios within S&P's
expectations for the rating (specifically, adjusted debt to EBITDA
below 2.5x and FFO to adjusted debt above 35% over the economic
cycle).
The rating could come under pressure if: market conditions return
to, and persist at their previous weak levels; or major operating
disruptions or delays in commissioning new assets occur that
significantly weaken the company's overall financial profile.
Conversely, the rating could be raised if the company:
successfully completes its major capital programs, reducing
execution risks; improves its geographic and commodity
diversification; and ensures that positive free cash flow is
sustainable, enabling the company to remain well above its
financial-metric targets.
* UK: Banks Should Be Allowed to Fail, Mervyn King Says
-------------------------------------------------------
Svenja O'Donnell at Bloomberg News reports that Bank of England
Governor Mervyn King on Tuesday said the U.K. should "get to the
point where we should accept that if a bank made serious mistakes,
it should be allowed to fail."
According to Bloomberg, Mr. King, who was speaking to lawmakers in
London, also said measures to split up banks will probably be
necessary.
===============
X X X X X X X X
===============
* S&P Downgrades Ratings on 525 European Corporate Synthetic CDOs
-----------------------------------------------------------------
Standard & Poor's Ratings Services lowered 525 ratings from 395
European corporate synthetic collateralized debt obligation
transactions to reflect its updated criteria. At the same time,
S&P affirmed its ratings on 354 corporate synthetic CDO tranches,
most of which (314) are in the 'CCC' range.
The aggregate issuance amount of the downgraded tranches is
$43.737 billion. The downgrades affect a large number of the
ratings S&P has assigned to corporate synthetic CDO transactions.
S&P lowered its ratings on these tranches following its analysis
of the effect that S&P's updated corporate CDO criteria have on
these ratings.
On Sept. 17, S&P placed its ratings on 1,626 European cash flow,
hybrid, and synthetic CDO transactions on CreditWatch negative in
tandem with the publication of S&P's updated criteria.
The rating actions complete S&P's review of the affected European
synthetic CDO transactions. Reviews of the cash flow and hybrid
corporate CDO transactions affected by the updated corporate CDO
criteria are ongoing; S&P currently expect to complete its review
by the end of the first-quarter 2010.
Most of the rating actions reflect S&P's recalibration of the
parameters within its CDO Evaluator model in connection with its
criteria update. However, the downgrade of 22 tranches from 12
transactions resulted from S&P's application of the largest-
obligor default test, and the downgrade of one tranche from one
transaction resulted from S&P's application of the largest-
industry default test. These are the supplemental stress tests
S&P introduced as part of its criteria update. Additionally, the
downgrade of five tranches from five transactions resulted from
S&P's application of the high-correlation sensitivity analysis,
also introduced as part of its criteria update.
In S&P's reviews of the affected synthetic CDOs, S&P considered
both the updated criteria and any credit deterioration the
transactions have experienced since its last review. S&P expects
to resume publishing these affected tranches in the monthly global
synthetic rated overcollateralization report in December and plan
to include in this report SROC ratios for synthetic corporate CDO
transactions under the updated criteria.
* BOOK REVIEW: Corporate Players - Designs for Working and Winning
Together
------------------------------------------------------------------
Author: Robert Keidel
Publisher: Beard Books
Softcover: 271 pages
List Price: US$34.95
Review by Henry Berry
In American business, the metaphor of the sports team is commonly
used for business groups of all sizes -- from ad hoc teams of a
few members that deal with temporary problems to groups of
executive managers who are responsible for long-term corporate
survival and the profitability of an entire organization.
The sports team is a favored metaphor because sports bring
individuals with different talents and different responsibilities
together to perform a particular activity and pursue a common
objective. Within its framework, sports also allow for the
outstanding performance of particular individuals and recognition
of that performance. The sports team metaphor has become so
common in business and so routinely applied to business teams of
all sorts and sizes that little thought is usually given to its
specifics.
Corporate Players - Designs for Working and Winning Together takes
a close look at what makes a sports team function effectively and
win. The author then applies these observations to develop a plan
for those in the corporate world to be as successful as those in
the sports world. While a reprint of a 1988 book, the lessons in
this book are timeless.
Keidel identifies three main types of teams found in business:
autonomy, control, and cooperation. The author relates each to a
particular type of sports team: autonomy for baseball, control for
football, and cooperation for basketball. A chart compares
differences among the three with respect to organizational
strategy, organizational structure, and organizational style. For
instance, the organizational strategy for autonomy in baseball is
"adding value through star performers"; while the organizational
strategy for cooperation in basketball is "innovating by combining
resources in novel ways."
With a sharp analytic eye and decades of experience in different
aspects of business, including academic and government positions,
Keidel delves into the specifics of business groups as sports
teams. A fundamental point often overlooked by businesspersons is
that teams in different sports are different in significant ways.
An understanding of these differences is crucial for executives,
managers, and consultants who are responsible for conceptualizing
a team in relation to a particular business matter and then
bringing together a team of individuals. As such, executives,
managers, and consultants have roles similar to a general manager
and coach of a sports team. In some cases, they may also have the
role of a player on the team.
This chart and other aids, together with the author's engaging
commentary and enlightening analyses, will help business leaders
select the right personnel, assemble a team capable of performing
the task at hand, and then coordinate all of the players to
accomplish the desired objective.
Robert W. Keidel has a Ph.D. from Wharton, and has also been a
Senior Fellow at this top business school. An author of three
other books and many articles, he teaches courses in business
strategy, technology, and organization at Drexel University's
LeBow College of Business. Robert Keidel Associates is his
business consulting firm.
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than US$3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/booksto order any title today.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. Valerie C. Udtuhan, Marites O. Claro, Rousel Elaine
C. Tumanda, Joy A. Agravante and Peter A. Chapman, Editors.
Copyright 2009. All rights reserved. ISSN 1529-2754.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.
Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.
The TCR Europe subscription rate is US$625 per half-year,
delivered via e-mail. Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each. For subscription information,
contact Christopher Beard at 240/629-3300.
* * * End of Transmission * * *