/raid1/www/Hosts/bankrupt/TCREUR_Public/091209.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
E U R O P E
Wednesday, December 9, 2009, Vol. 10, No. 243
Headlines
A U S T R I A
JOZSEF KRALIK: Claims Filing Deadline is December 28
LALO MUJKIC: Claims Filing Deadline is December 24
ORTNER - DER PLAN: Claims Filing Deadline is December 28
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 R A N C E
NOVASEP HOLDING: Moody's Assigns Corporate Family Rating at 'B3'
NOVASEP HOLDING: S&P Assigns 'B' Corporate Credit Rating
REXEL SA: Moody's Assigns 'B1' Corporate Family Rating
REXEL SA: Fitch Assigns 'BB-' Long-Term Issuer Default Rating
G E R M A N Y
CART 1: Standard & Poor's Junks Rating on Class E Notes From 'B-'
DECO 17: Moody's Cuts Rating on EUR104.6MM Class C Notes to 'Ba3'
ESCADA AG: CEO Sees Return to Profitability by End of 2010
H U N G A R Y
INVITEL HOLDINGS: S&P Puts 'CCC+' Rating on CreditWatch Positive
MAGYAR TELECOM: Moody's Assigns 'B1' Rating on EUR340 Mil. Notes
I R E L A N D
BELGARD MOTORS: High Court Appoints Tom Kavanagh as Liquidator
EIRLES TWO: Moody's Withdraws 'C' Rating on Series 300 Notes
INDEPENDENT NEWS: To Sell 49% Verivox Stake to Oakley for EUR17MM
LINEN SUPPLY: Court Rejects Examiner's Request to Repudiate Leases
I T A L Y
ALITALIA SPA: To Auction Art Collection This Month
PARMALAT SPA: Italian Police Seizes Founder's EUR100MM Art Works
K A Z A K H S T A N
AKTOBE MED: Creditors Must File Claims by December 16
ALIBEK KURYLYS: Creditors Must File Claims by December 16
ASTANA ATL: Creditors Must File Claims by December 16
ASTANA BONUS: Creditors Must File Claims by December 16
BELGRAVIA GRAND: Creditors Must File Claims by December 16
BTM ASTANA: Creditors Must File Claims by December 16
KAZHOLDING & K: Creditors Must File Claims by December 16
LARIBA BANK: Creditors Must File Claims by December 16
STANDART STROY: Creditors Must File Claims by December 16
TAZA KURYLYS 5: Creditors Must File Claims by December 16
TEMIRBANK AO: ISDA to Rule If Default Swaps Have Credit Event
K Y R G Y Z S T A N
BAI HY: Creditors Must File Claims by January 6
DRAG METAL: Creditors Must File Claims by January 6
L I T H U A N I A
LEO LT: Lithuanian Gov't and NDX Sign Liquidation Agreement
N E T H E R L A N D S
NORTH WESTERLY: Moody's Cuts Ratings on Two Classes of Notes to Ca
R U S S I A
AVTOVAZ OAO: VEB May Provide Funding for Investment Program
NOMOS CAPITAL: Fitch Assigns 'B+' Senior Unsecured Loan Notes
UC RUSAL: Fails to Get Approval for Hong Kong IPO
S P A I N
FINANCIACION BANESTO: S&P Cuts Rating on Class C Notes to 'BB'
S W I T Z E R L A N D
BUCH + SPIEL: Claims Filing Deadline is December 10
INNOMAIL GMBH: Claims Filing Deadline is December 10
KITCHEN-HOUSE: Claims Filing Deadline is December 10
MEDIA PLANTAGE: Claims Filing Deadline is December 10
RAIL IN-TRAVEL: Claims Filing Deadline is December 10
RESTAURANT KREUZ: Claims Filing Deadline is December 10
UT+E UMWELT: Claims Filing Deadline is December 10
U K R A I N E
CASTELLO-KIEV-ML: Creditors Must File Claims by December 11
KURORT TRADE: Creditors Must File Claims by December 11
MEGAINVEST-UKRAINE: Creditors Must File Claims by December 11
MIORA LUX: Creditors Must File Claims by December 11
MOBIL WORLD: Creditors Must File Claims by December 11
TRADE PRAKTIK: Creditors Must File Claims by December 11
U N I T E D K I N G D O M
APTUS PERSONNEL: To Enter Into Company Voluntary Arrangement
LLOYDS BANKING: In Debt Talks with Dubai World
MONEY PARTNERS: Fitch Junks Ratings on Three Tranches From 'B-'
ROYAL BANK: In Debt Talks with Dubai World
TATA STEEL: S&P Affirms Corporate Credit Rating at 'B+'
*********
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A U S T R I A
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JOZSEF KRALIK: Claims Filing Deadline is December 28
----------------------------------------------------
Creditors of Jozsef Kralik Handel GmbH have until December 28,
2009, to file their proofs of claim.
A court hearing for examination of the claims has been scheduled
for January 11, 2010 at 10:15 a.m.
For further information, contact the company's administrator:
Dr. Michael Lesigang
Landstrasser Hauptstrasse 14-16/8
1030 Vienna
Austria
Tel: 715 25 26
Fax: 715 25 26/27
E-mail: michael@lesigang.at
LALO MUJKIC: Claims Filing Deadline is December 24
--------------------------------------------------
Creditors of Lalo Mujkic OEG have until December 24, 2009, to file
their proofs of claim.
A court hearing for examination of the claims has been scheduled
for January 7, 2010 at 11:35 a.m.
For further information, contact the company's administrator:
Dr. Andrea Fruhstorfer
Seilerstaette 17
1010 Vienna
Austria
Tel: 512 57 76
Fax: 512 57 76 50
E-mail: a.fruhstorfer@fg-lawyers.at
ORTNER - DER PLAN: Claims Filing Deadline is December 28
--------------------------------------------------------
Creditors of ortner - der plan GmbH have until December 28, 2009,
to file their proofs of claim.
A court hearing for examination of the claims has been scheduled
for January 11, 2010 at 10:00 a.m.
For further information, contact the company's administrator:
Dr. Katharina Widhalm-Budak
Favoritenstrasse 22/12a
1040 Vienna
Austria
Tel: 504 64 08
Fax: 504 64 08 22
E-mail: widhalm-budak@mitrecht.com
===========================
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 remain on CreditWatch with negative implications, where
they were placed on Nov. 25, 2009.
"The second downgrade within a month reflects S&P's opinion about
the length and complexity of SAZKA's negotiations with its bank
lenders," said Standard & Poor's credit analyst Diego Festa.
"SAZKA is negotiating with some existing lenders to replace
outstanding separate short-term bilateral facilities with a
medium-term secured credit line. Historically, SAZKA's short-term
debt was unsecured and provided about 20% of its debt funding."
The prolonged negotiations highlight a significant execution risk,
in S&P's view. The extended support of bank lenders is critical
for SAZKA to maintain liquidity, and therefore constitutes a
primary rating risk. This is true especially in the light of the
payment of approximately Czech koruna (CZK) 400 million, including
both interest and principal, on the senior secured bonds due at
end of January. As of Sept. 30, 2009, S&P understands that
SAZKA's credit facilities were drawn by CZK1.75 million.
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 are also
constrained by S&P's view of the company's aggressive financial
policy and a history of weak cash returns on capital investment.
Support for the ratings is provided 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 R A N C E
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NOVASEP HOLDING: Moody's Assigns Corporate Family Rating at 'B3'
----------------------------------------------------------------
Moody's Investors Service has assigned a B3 Corporate Family
Rating and B2 Probability of Default Rating to Novasep Holding
S.A.S. Concurrently, Moody's assigned a provisional (P)B3 rating
to the proposed EUR370 million senior secured notes to be issued
by Novasep. The outlook is stable.
The B3 CFR is contingent on Novasep's success in placing the
EUR370 million senior secured notes.
"The B3 CFR assigned to Novasep reflects its good position in the
niche technology market in which it benefits from relatively high
barriers to entry, limited competition in some cases, as well as
the long-term trend in the pharmaceutical industry towards
outsourcing, which should benefit the company," explained Marie
Fischer-Sabatie, Moody's lead analyst for Novasep. "However, the
rating also incorporates some cash flow volatility and the
company's relatively high client concentration."
Novasep is a provider of active ingredients and advanced
intermediates, mainly to the pharmaceutical industry. The group
manages a number of different technologies, which it can offer to
its clients individually or in combination, and is also well
diversified geographically. Moody's views Novasep's client
portfolio as concentrated and believes that, combined with the
pharmaceutical companies' large size, this creates a risk of
pricing pressure, although Moody's note that the ingredients
produced by Novasep usually represent only a fraction of the
finished product price.
The ability of the company to book new orders and conclude new
contracts on an ongoing basis is critical to maintaining free
cash-flow generation. However, this is mitigated by the fact that
a portion of the company's contracts are secured and include "take
or pay" provisions, which Moody's views positively. Moody's also
notes that the recent consolidation move in the pharmaceutical
industry could have a negative impact over the short term, but
recognizes the company's track record in terms of contract
retention rate, as well as the long-term industry trend towards
increased outsourcing.
Moody's expects Novasep's credit metrics to improve over the
intermediate term, as free cash-flow generation is expected to
pick up after two years of significant capital expenditures. "In
particular, Moody's expect the company's Debt/EBITDA ratio to move
towards 5x-5.5x within the next two years and (CFO --
Dividend)/Net Debt to improve to the low teens", says Ms. Fischer-
Sabatie.
The (P)B3 rating assigned to the EUR370 million notes reflects
their ranking as senior secured obligations of Novasep. The notes
will be secured by first-priority security interests, which will
notably include a first-ranking pledge of the capital stock of the
note guarantors. The notes will be jointly and severally, fully
and unconditionally, guaranteed on a senior basis by the material
operating subsidiaries of the group, which represent more than 90%
of consolidated EBITDA and assets.
Moody's issues provisional ratings in advance of the final sale of
securities and these ratings reflect Moody's preliminary credit
opinion regarding the transaction only. Upon a conclusive review
of the final documentation, Moody's will endeavor to assign a
definitive rating to the notes. A definitive rating may differ
from a provisional rating.
The rating outlook is stable and reflects the long-term growth
opportunities in the industry, despite some short-term pressure
due to consolidation in the pharmaceutical industry. It also
reflects the business segment and geographic diversity of the
group, which helps mitigate revenue and cash-flow volatility.
Assuming the senior secured notes are issued, Moody's believes
that Novasep has an adequate liquidity profile, provided it can
maintain free cash flow generation over the forecast period. The
liquidity position is effectively supported by positive free cash
flow, the lack of any debt maturities over the short to
intermediate term and the cushion of EUR20 million for potential
working capital requirements which is to be derived from the
senior secured notes' proceeds.
Moody's believes the rating could potentially be upgraded if the
ratio of Debt/EBITDA improves to below 5x and the ratio of (CFO --
Dividend)/Net Debt improves to the low teens.
Novasep, headquartered in Pompey, France, is a leading provider of
contract manufacturing services for Life Science industries and a
manufacturer of purification equipment. Novasep reported LTM to
September 2009 revenues of EUR302 million.
NOVASEP HOLDING: S&P Assigns 'B' Corporate Credit Rating
--------------------------------------------------------
Standard & Poor's Ratings Services said it assigned its 'B' long-
term corporate credit rating to France-based pharmaceutical
services company Novasep Holding S.A.S. The outlook is positive.
At the same time, S&P assigned a 'B' issue rating to Novasep's
proposed EUR370 million secured bond maturing in December 2016.
S&P assigned a recovery rating of '4' to this debt to reflect its
expectation of average (30%-50%) recovery for creditors in the
event of a payment default. The issue and recovery ratings are
subject to S&P's review of the final documentation.
"The ratings reflect Novasep's highly leveraged financial risk
profile following a leveraged buyout by Dutch private equity group
Gilde Buy Out Partners in 2007," said Standard & Poor's credit
analyst Olaf Toelke. "They also reflect Novasep's fair business
risk profile, in S&P's view, which is supported by a unique
product portfolio and comparatively high margins."
At the end of December 2009, after the bond issue, Novasep's
financial debt is likely to be EUR408 million, consisting mainly
of the senior debt.
The level of Novasep's debt increased significantly after the LBO
in early 2007 and the subsequent merger of Novasep with
Pharmachem. S&P believes that Novasep is capable of generating
sufficient free cash flow to quickly reduce its high debt
leverage.
Novasep is a global manufacturer of purification equipment and a
provider of contract manufacturing services to the life science
industries. Its main customer segment is pharmaceuticals, which
accounts for close to 70% of revenues. The company is unique in
its ability to offer both key technology and a range of critical
services, such as hazardous chemistry and chiral technologies.
About three-quarters of Novasep's annual sales are connected to
the production of pharmaceutical molecules.
The ratings are supported by Novasep's unique positioning as a
technologically focused niche provider of key equipment and
complete-process engineering solutions for the production of
active pharmaceutical ingredients. This position enables Novasep
to generate comparatively high EBITDA margins of more than 20%.
Another positive rating factor is the company's ability to achieve
significant free cash flows on a sustainable basis. Both
Novasep's margins and free cash generation compare well with those
of its peers. S&P has also factored into the ratings that both
Novasep and its key investors have a history of supporting its
investments.
In S&P's view, Novasep's liquidity profile is adequate for the
rating. The company should not have any short-term debt after the
bond, which will have a tenor of seven years, is issued in
December. Novasep has traditionally had adequate cash for its
operations.
"The outlook is positive because of S&P's view of Novasep's sound
position in an expanding industry," said Mr. Toelke. "It also
reflects S&P's belief that the company's leverage could improve to
levels S&P consider appropriate for a 'B+' corporate credit rating
by year-end 2010."
REXEL SA: Moody's Assigns 'B1' Corporate Family Rating
------------------------------------------------------
Moody's Investors Service assigned a B1 corporate family rating
and probability of default rating to Rexel, SA. It also assigned
a P(B1) rating to the EUR500 million senior unsecured Notes to be
issued by the company. The ratings outlook is stable. The
provisional rating on the Notes assumes that there will be no
material variations to the draft legal documentation reviewed by
Moody's.
The ratings reflect Rexel's leading position and scale as a global
distributor of low voltage electrical products. In particular,
the company benefits from strong market positions in various
European countries, which were strengthened in 2008 as a result of
the acquisition of the third industry player, Hagemeyer.
The B1 ratings also reflect Rexel's high leverage. Given the
reduction in Ebitda due to the economic downturn -- which has
reduced both sales and margins -- Moody's expects that Rexel's
adjusted net debt/Ebitda for 2009 will be above 5.5x (about 4.7x
on a reported basis). However, Moody's has considered the
positive steps taken by Rexel this year to improve its Ebita
margin; as well as its net debt reduction and the company's strong
intention to reduce leverage over the medium term.
The global marketplace for distribution of low voltage electrical
products is somewhat fragmented. Rexel is a market leader with
only about 8% global market share. However, this fragmentation is
largely a characteristic of the non-European markets. In Europe
(which provides about 60% of Rexel's sales), the industry
structure is far more concentrated, and Rexel generally has the
leading or second position in the main markets.
The industry has been consolidating -- with Rexel being a leading
consolidator, doubling in size over the past five years with
acquisitions including Gexpro and Hagemeyer -- and Moody's
believes that this trend is likely to continue. However, Rexel's
B1 ratings incorporate Moody's assumption that the company will
make only relatively small bolt-on acquisitions until its leverage
has considerably reduced.
Reported 2008 revenue of about EUR12.9 billion was 20% above 2007
revenue. However, this increase was due to the Hagemeyer
acquisition, as like-for-like revenue was essentially flat. Rexel
has forecast approximately 9% revenue decline in 2009 to about
EUR11.2 to 11.3 billion; which will result in a greater percentage
reduction in Ebitda due to lower achieved margins.
Moody's notes the ongoing progress of Rexel's cost-reduction
program, which has involved branch closures and headcount
reduction. This should result in an Ebita margin for 2009 of
about 4%, up from 3% in Q1 2009 (but compared to 5.3% in 2008).
Moody's expects that these actions should result in Rexel
maintaining Ebitda in 2010 at a level broadly comparable with that
anticipated for 2009, despite potentially lower sales; and this
should allow some deleveraging in that year. However, Moody's
notes the late-cycle nature of the industry, which means that
revenue may not begin to grow before 2011. There remains
considerable uncertainty about the pace and sustainability of
global economic recovery, which will be necessary to increase
revenue and Ebitda and thereby accelerate the pace of leverage
reduction.
Rexel has been generating positive free cash flow during the
downturn, in large part due to the release of working capital.
This should result in net debt reducing in 2009 by about
EUR400 million to below EUR2.5 billion. Moody's expects that the
company should continue to generate positive free cash flow as
business conditions recover, given its reduced fixed costs.
Although working capital movements are likely to turn negative as
revenues increase, the company also plans to limit the impact of
this through an ongoing program of working capital reduction. As
part of its recent bank covenant reset process, Rexel also agreed
to suspend dividends until its bank-defined indebtedness ratio
falls below 4.0x.
Rexel's liquidity is currently solid. Concurrent with the
issuance of notes, it will refinance its bank revolving credit
facilities, with a three-year EUR600 million amortizing tranche
due December 2012 and a five-year EUR1.1 billion tranche due
December 2014. With its positive free cash flow, cash balance and
undrawn RCF -- together about EUR700 million after issuance of
EUR500 million Notes -- the company has sufficient near-term
liquidity to meet ongoing debt amortization. The company has
actively extended its overall maturity profile; reset its bank
financial covenants to provide additional headroom; and the
issuance of the Notes has also helped diversify sources of debt
funding.
Over EUR1 billion of Rexel's debt is funded via European and North
American receivables securitization programs, through bank
conduits. This debt is reported on Rexel's balance sheet due to
various operating obligations imposed on the company. The
programs rely on the ongoing issuance of short-term highly-rated
securitized paper. These programs mature in 2012/13, although
Moody's notes that the company intends soon to extend maturities
by a couple of years in line with its overall policy of maturity
extension. Moody's acknowledges that Rexel has maintained access
to this funding through the recent immense financial crisis. The
B1 ratings assume that supporting liquidity lines will continue to
have the same maturity dates as their associated securitization
programs (i.e. greater than 364 days); and the agency's ongoing
analysis of Rexel's liquidity will incorporate potential risks
arising from these programs.
Although Rexel is a listed company, about 76% is owned by a group
of private equity sponsors. Moody's believes that Rexel's core
shareholder group is supportive of the company's operational and
financial strategies, including its immediate goal of reducing
leverage.
As Rexel's capital structure includes both bank debt and Notes,
Moody's has assumed a group loss given default of 50%, resulting
in the PDR being at the same B1 rating as the CFR.
The B1 rating on the Notes reflects the fact that both the
revolver and Notes are senior unsecured and pari-passu, with no
material secured debt existing within the group (notwithstanding
the receivables securitization program, which Moody's has excluded
for its LGD analysis). Negative pledge provisions prevent any
financial debt of Rexel or its Restricted Subsidiaries -- which
comprise virtually the whole group - from acquiring security
interests in preference to the Noteholders subject to specified
exceptions.
The Notes will be issued at the parent company, and Noteholders
will thus be structurally subordinated to operating company
creditors. This is largely mitigated by the fact that the Notes
will be guaranteed by subsidiaries which together comprise about
86% of the group's LTM reported Ebitda. Further mitigation is
provided by the fact that the sole permitted borrower under the
revolver -- which will be guaranteed by the same operating
companies as the Notes -- will be the parent company i.e. Rexel,
SA. Claims of Noteholders against operating company assets will
also be enhanced by the fact that Rexel will downstream proceeds
from the Notes and bank facilities to its operating companies as
intercompany loans. External operating company creditors will be
primarily trade creditors, with only about EUR 100 million
financial debt at that level (in addition to the receivables
securitization programs).
In addition to the maintenance financial covenants in the
revolver, the indenture has debt incurrence covenants based around
a consolidated Ebitda/interest ratio of 2.25x.
The stable outlook incorporates Moody's expectation that Rexel
will reduce its leverage over the medium term, while acknowledging
the ongoing uncertainty of the economic environment in Rexel's
main markets of Europe and the US. It also incorporates Moody's
view that the company will not undertake any material debt-funded
acquisition until leverage is materially reduced. Negative
ratings pressure could develop if, inter alia, net adjusted
debt/Ebitda rises above 6x, or if the company turns free cash flow
negative at any point. Positive ratings pressure could develop
if, inter alia, net adjusted debt/Ebitda falls towards 4.5x.
Moody's issues provisional ratings in advance of the final sale of
securities and these ratings reflect Moody's preliminary credit
opinion regarding the transaction only. Upon a conclusive review
of the final documentation, Moody's will endeavor to assign a
definitive rating to the Notes. A definitive rating may differ
from a provisional rating.
Rexel's ratings were assigned by evaluating factors Moody's
believe are relevant to the credit profile of the issuer, such as
i) the business risk and competitive position of the company
versus others within its industry; ii) the capital structure and
financial risk of the company; iii) the projected performance of
the company over the near to intermediate term; and iv)
management's track record and tolerance for risk. These
attributes were compared against other issuers both within and
outside of Rexel's core industry and Rexel's ratings are believed
to be comparable to those of other issuers of similar credit risk.
Headquartered in Paris, France, Rexel, SA, is the listed parent
company for a leading global distributor of low voltage electrical
products. Revenue for 2008 was reported at about EUR12.9 billion.
REXEL SA: Fitch Assigns 'BB-' Long-Term Issuer Default Rating
-------------------------------------------------------------
Fitch Ratings has assigned France-based electrical distributor
Rexel, SA a Long-term Issuer Default rating of 'BB-' with a Stable
Outlook, and a Short-term IDR of 'B'. Fitch has also assigned
Rexel's proposed EUR500 million high-yield bond offering an
expected senior unsecured rating of 'BB-'. The final senior
unsecured rating is contingent upon the receipt of final
documentation and structure conforming to information already
received.
Despite its exposure to the highly cyclical demand in the
construction and industrial sectors, Rexel benefits from an
enhanced financial flexibility which mainly stems from the past
nine months' repayment of debt (expected at least EUR0.9 billion
by YE09 to EUR2.7 billion), which shows the company's commitment
towards de-leveraging. This financial flexibility is also derived
from the comprehensive cost-reduction program underway, proven
cash conversion, dividend suspension and the expected availability
of liquidity sources in the foreseeable future.
"Despite the group's low-margin nature as a distribution business,
Rexel has proved to be cash-generative during the economic
downturn," said Pablo Mazzini, Senior Director at Fitch's
Leveraged Finance team in London. "Moreover, the application of
excess liquidity to debt redemption while financing its cost
restructuring measures from internally generated cash demonstrates
the strength of the business model."
The Stable Outlook reflects the view that Rexel should be well
placed to benefit from the economic stabilization and eventual
growth in demand Fitch expects from H210, aided by the debt
refinancing plan currently underway. The agency remains cautions,
nonetheless, about the outlook for Rexel's activities in the North
American region where business conditions will likely remain
challenging in 2010.
In the longer-term, Fitch assumes in its rating case forecast a
moderate level of refinancing risk as net leverage (lease-
adjusted) is anticipated to decline to 4.8x by 2011
(conservatively without adding back restructuring costs) from its
peak of 5.8x in LTM to Q209. Critically, Rexel's free cash flow
is expected to remain positive. Furthermore, interest cover
(measured as operating EBITDAR-capex/net interest plus rents) is
expected to be 2.2x by 2011, in line with other distributors and
cyclical retailers as well as 'BB'-rated peers.
Despite the positive prospects for long-term growth and the
opportunities derived from the development of new distribution
channels, such as e-commerce, and new revenue streams from new
technologies, Fitch recognizes that in the near-term purchase
decisions by contractors are taking longer, as new build primarily
in the commercial and residential real estate segments, and even
renovation activities, are being delayed. Future rating actions
will depend on the full scale turnaround of the business and the
trend in profit margins, as well as the financial policy and the
timing and scale of bolt-on acquisitions.
The proposed bond offering, which will benefit from the same
guarantee package as and equal ranking with Rexel's bank debt, and
bank debt refinancing will improve the debt maturity profile. In
addition, the bank debt will be unsecured upon the high-yield
bonds being issued. Fitch notes that unsecured creditors will
rank behind secured debt in the form of securitization debt and
finance leases (over EUR1 billion as of September 2009). The bond
offering will contain customary negative pledge and covenants
language including a debt incurrence test (consolidated coverage
ratio not to exceed 2.25x) including the ability of non-guarantors
to incur up to EUR600 million of additional debt.
Rexel is a world leader in the distribution of low and ultra-low
voltage electrical products. It operates in 34 countries across
Europe, the Americas and Asia/Pacific through a network of about
2,300 branches. LTM to September 2009 sales of EUR11.8 billion
are split between Europe (58%), North America (31%) and Asia-
Pacific (7%), with a group EBITDA of EUR520.8 million (4.4%
margin) or EUR624.5 million (5.3%) before one-off and
restructuring costs.
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G E R M A N Y
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CART 1: Standard & Poor's Junks Rating on Class E Notes From 'B-'
-----------------------------------------------------------------
Standard & Poor's Rating Services lowered and removed from
CreditWatch negative its ratings on all the notes issued by CART 1
Ltd. S&P placed these notes on CreditWatch negative on Oct. 1,
2009.
The actions follow an increase in the number of defaults, S&P's
assessment of credit deterioration in the underlying portfolio,
and the application of S&P's revised criteria for corporate CLO
transactions. The reference portfolio for this transaction
contains loans to corporate obligors as well as to mid- and small-
cap obligors.
Because the reference portfolio includes a large share of loans to
corporate obligors, S&P has applied its revised criteria for
corporate collateralized debt obligations, including the use of
S&P's Evaluator 5.0 tool and the application of supplemental
stress tests. The supplemental stress tests, which relate to
portfolio concentration, capped the ratings on the class A+ and A
notes. The supplemental tests did not affect the ratings on the
remaining notes.
Following the latest pool replenishment on Oct. 30, the weighted-
average equivalent rating of the portfolio was 'B+', as opposed to
'BBB-' at closing. In April 2009, when S&P lowered the ratings on
classes B to E, the pool's weighted-average equivalent rating was
'BB-'.
CART 1 is a synthetic CDO of bank loans to primarily Germany-based
mid-cap companies. The deal closed in June 2007 and Deutsche Bank
AG is the originator.
Ratings List
CART 1 Ltd.
US$263.5 Million Floating-Rate Credit-Linked Notes
Ratings Lowered and Removed From CreditWatch Negative
Rating
------
Class To From
----- -- ----
A+ A+ AAA/Watch Neg
A A+ AAA/Watch Neg
B BBB A-/Watch Neg
C BB+ BBB/Watch Neg
D B+ BB/Watch Neg
E CCC- B-/Watch Neg
DECO 17: Moody's Cuts Rating on EUR104.6MM Class C Notes to 'Ba3'
-----------------------------------------------------------------
Moody's Investors Service has taken rating action on these classes
of Notes issued by Deco 17 -- Pan Europe 7 Limited (amounts
reflect initial outstandings):
-- EUR212M Class A2 Commercial Mortgage Backed Floating Rate
Notes due 2020, Downgraded to Aa3; previously on Nov 13, 2009
Aaa Placed Under Review for Possible Downgrade
-- EUR88M Class B Commercial Mortgage Backed Floating Rate Notes
due 2020, Downgraded to Baa2; previously on Nov 13, 2009 Aa2
Placed Under Review for Possible Downgrade
-- EUR104.6M Class C Commercial Mortgage Backed Floating Rate
Notes due 2020, Downgraded to Ba3; previously on Nov 13, 2009
A3 Placed Under Review for Possible Downgrade
At the same time Moody's has affirmed the Aaa rating of the Class
A1 Notes.
Moody's does not rate the Class X, D, E, F, G and V Notes issued
by Deco 17 -- Pan Europe 7 Limited. The rating action concludes
the review for possible downgrade that was initiated for the Class
A2, Class B and Class C Notes on 13 November 2009. The rating
action takes Moody's updated central scenarios into account, as
described in Moody's Special Report "Moody's Updates on Its
Surveillance Approach for EMEA CMBS".
1) Transaction and Portfolio Overview
DECO 17 -- Pan Europe 7 p.l.c. closed in December 2007 and
represents the securitization of initially twelve commercial
mortgage loans originated by Deutsche Bank AG, London Branch that
were secured by mainly first ranking mortgages on 5,773 commercial
and multi-family properties located across Germany (97.2% of the
original portfolio by underwriter market value) and Sweden (2.8%).
Since closing there has been almost no change in the securitized
pool. As per the latest investor report as of July 2009, there
are currently still twelve loans with an outstanding balance of
approximately EUR1,228 million and secured by 5,721commercial and
multi-family properties located in Germany (97.3%) and Sweden
(2.7%). The loans are not equally contributing to the portfolio:
the largest loan (the LWB Loan) represents 18.3% of the current
portfolio balance, while the smallest loan (the Faktor Loan)
represents 1.1%. The current loan Herfindahl index is 8.3, same
as at closing.
As per the latest available investor report from July 2009, all of
the loans in the portfolio are performing. However, one loan, the
Elbblick Loan (6.0% of the current portfolio) secured by a
portfolio of 58 mainly retail properties in Germany appears on the
servicer's watchlist due to a breach of its ICR covenant.
According to the Servicer, the cash flow reported by the borrower
has significantly reduced as of the July 2009 IPD, leading to a
twelve month projected whole loan ICR of 0.93x. The Servicer
awaits further clarification on the borrower reporting.
To date, the sequential payment trigger has not been breached and
proceeds from prepayments and balloon repayments are allocated to
the Notes on a modified pro-rata basis, based on four different
loan buckets. Scheduled amortization, principal recoveries and
release premia from property disposals are allocated sequentially
to the Notes.
2) Rating Rationale
The rating action follows a detailed re-assessment of the loan and
property portfolio's credit risk. Hereby, Moody's main focus was
on property value declines, term default risk, refinancing risk
and the anticipated work-out timing for potentially defaulting
loans. In its review, Moody's focused on the largest loans in the
portfolio, the LWB Loan, the WGN MF Loan, the WBN MF Loan and the
Rockpoint Loan which together represent 60% of the current
portfolio balance. Moreover, Moody's revised its assessment of
the other loans in the portfolio to incorporate its expectations
regarding default risk and property value performance.
As outlined in more detail below, the rating action is mainly
driven by:
(i) the most recent performance of the European commercial
property markets;
(ii) Moody's opinion about future property market performance;
and
(iii) the substantially increased refinancing risk of the loans in
the portfolio.
Driven by, in most cases, a higher default risk assessment at the
loan maturity date, Moody's now anticipates that a large portion
of the portfolio will default over the course of the transaction
term. Coupled with the negative impact of significantly reduced
property values, Moody's expects a substantial amount of losses on
the securitized portfolio. Those expected losses will, given the
back-loaded default risk profile and the anticipated work-out
strategy for defaulted loans, crystallize only towards the mid to
end of the transaction term.
The current subordination levels for Moody's rated classes, 40.3%
for the Class A1, 23.3% for the Class A2, 16.2% for the Class B,
and 7.7% for the Class C Notes provide protection against those
expected losses. However, the likelihood of higher than expected
losses on the portfolio has increased substantially, which results
in the rating action for the Class A2, B and C Notes.
Since closing of the transaction, five loans (62.8% of the
original, 62.7% of the current pool balance) have had minor
partial prepayments due to (i) asset disposals in the case of
three loans (WGN MF, WBN MF and NILEG MF), (ii) loan restructuring
in the case of one loan (Elbblick Loan) and (iii) exercising of
the voluntary prepayment option in the case of the LWB Loan.
Together with the limited scheduled amortization on the loans, the
prepayment proceeds have only marginally increased the
subordination available to Moody's rated classes.
The Class A2, B and C Notes are subordinated in the transaction's
capital structure. Due to this additional leverage, the higher
portfolio risk assessment has a relatively bigger impact on the
expected loss of the more junior Notes than on the expected loss
of the more senior Notes. In Moody's view, the Class A1 Notes are
sufficiently protected against increased portfolio losses with a
subordination level of 40.3%.
3) Moody's Portfolio Analysis
Property Values. Property values across the Continental European
markets, specifically in Germany, have declined to date in 2009,
and are expected to continue to decline at least until 2010.
Moody's estimates that compared to the U/W market values at
closing, the values of the properties securing this transaction
have declined on a like for like basis on average by approximately
18.3% to date (ranging from a 35.8% decline for the portfolio
securing the Elbblick Loan to 7.5% decline for the portfolio
securing the LWB Loan). Looking ahead, Moody's anticipates
further declines until 2010 and 2011, resulting in, on average, a
22% value decline from the closing U/W value to Moody's trough
value (ranging from a 39.7% decline for the portfolio securing the
Elbblick Loan to 12.3% decline for the portfolio securing the LWB
Loan).
Based on this property value assessment, Moody's estimates that
the transaction's mid-2009 weighted average securitized loan-to-
value ratio was 83.9% compared to the reported U/W LTV of 67.8%.
Due to further envisaged declines, the WA LTV will increase in
Moody's opinion to 87.9% in 2010 and will only gradually recover
thereafter. Based on Moody's anticipated trough values, the LTVs
for the securitized loans range between 119.3% (Allokton Loan) and
57.3% (LWB Loan). As six loans (WGN MF, WBN MF, Mayne, AFI,
Elbblick and NILEG MF) have additional debt in the form of B-notes
(amounting to EUR217.8 million on aggregate) and three loans (WGN,
WBN and NILEG) have prior-ranking debt (amounting to EUR83.9
million on aggregate), the whole loan leverage including prior-
ranking debt based on estimated trough values will be on average
100.1%.
Moody's has taken the anticipated property value development,
including a gradual recovery from 2011 onwards, into account when
analyzing the default risk at loan maturity and the loss given
default for each securitized loan.
Refinancing Risk. The transaction does not have exposure to loans
maturing in the short-term (2009, 2010 and 2011). 10% of the
current portfolio (Rockpoint and Faktor) and 19% of the current
portfolio (Mayne, Elbblick and Allokton) mature in 2012 and 2013,
respectively. The remaining loans (71% of the current portfolio)
mature in 2014. As Moody's expects property values in the
Continental European markets to only slowly recover from 2011
onwards, all loans will be still highly leveraged at their
respective maturity dates. Consequently, in Moody's view, for all
but the LWB Loan, the default risk at maturity has increased
substantially compared to the closing analysis.
Term Default Risk. The occupational markets in Continental Europe
are currently characterized by falling rents, increasing vacancy
rates and higher than average tenant default rates. In
particular, loans secured by properties which are subject to
significant lease rollover over the next few years will be, in
Moody's view, exposed to weakening occupational markets. As a
consequence, Moody's has incorporated into its analysis an
allowance for deterioration in coverage ratios and weakening
tenant quality, in turn increasing the term default risk
assumption for some of the loans.
Overall Default Risk. Based on its revised term and maturity
default risk assessment for the securitized loans, Moody's
anticipates that a large portion of the portfolio will default
over the course of the transaction term. The default risk of the
loans is predominantly driven by refinancing risk. In Moody's
view, the LWB Loan (18.3% of current portfolio balance) has
currently the lowest default risk, while the Elbblick Loan (6.0%
of the current portfolio) has the highest risk of defaulting.
Concentration Risk. The portfolio securitized in Deco 17 -- Pan
Europe 7 Limited exhibits an average concentration in terms of
property types and property location.
Work-Out Strategy. In scenarios where a loan defaults, Moody's
current expectation is that the servicer will most likely not
pursue an immediate sale of the property in the depressed market
conditions. Therefore, Moody's has assumed that in most cases,
upon default, a sale of the mortgaged properties and ultimate
work-out of the loan will occur at a later point in time.
Increased Portfolio Loss Exposure. Taking into account the
increased default risk of the loans, the most recent performance
of the commercial property markets in Continental Europe, Moody's
opinion about future property value performance and the most
likely work-out strategies for defaulted loans, Moody's
anticipates a substantial amount of losses on the securitized
portfolio, which will, given the anticipated work-out strategy for
defaulted loans, crystallize only towards the mid to end of the
transaction term. Moody's view of the expected loss ranking of
the loans has remained substantially the same as closing. Moody's
views the LWB as the strongest loan and the Elbblick and Allokton
loans as the weakest loans in the portfolio from an expected loss
perspective.
ESCADA AG: CEO Sees Return to Profitability by End of 2010
----------------------------------------------------------
Holger Elfes at Bloomberg News, citing Die Welt, reports that
Escada AG wants to focus on younger women to return to
profitability.
Bloomberg relates that Escada Chief Executive Officer Bruno
Saelzer, as cited by the German newspaper, said the Escada brand
needs to become more contemporary.
According to Bloomberg, Mr. Saelzer told Die Welt the company will
be "out of the woods" at the end of 2010.
Nicholas Comfort at Bloomberg News, citing Sueddeutsche Zeitung,
reports Megha Mittal on Dec. 1 completed its purchase of the
German luxury clothier.
About Escada AG
The ESCADA Group -- http://www.escada.com/-- is an international
fashion group for women's apparel and accessories, which is active
on the international luxury goods market. It has pursued a course
of steady expansion since its founding in 1976 by Margaretha and
Wolfgang Ley and today has 182 own shops and 225 franchise
shops/corners in more than 60 countries.
As of August 10, 2009, the Escada Group operated 176 owned stores
and so-called shop in shops, of which 26 owned stores are located
in the United States and operated by Escada (USA) Inc. and 2
stores are planned to be opened in the United States before year
end. Escada Group products are also sold in 163 stores worldwide
which are operated by franchisees. Escada Group had total assets
of EUR322.2 million against total liabilities of 338.9 million as
of April 30, 2009.
Wholly owned subsidiary Escada (USA) Inc. filed for Chapter 11 on
August 14, 2009 (Bankr. S.D.N.Y. Case No. 09-15008). Judge Stuart
M. Bernstein handles the case. O'Melveny & Myers LLP has been
tapped as bankruptcy counsel. Kurtzman Carson Consultants serves
as claims and notice agent. Escada US listed US$50 million to
US$100 million in assets and US$100 million to US$500 million in
debts in its petition.
Bankruptcy Creditors' Service, Inc., publishes Escada USA
Bankruptcy News. The newsletter tracks the Chapter 11 proceedings
of Escada USA, and the insolvency proceedings of ESCADA AG and its
units. (http://bankrupt.com/newsstand/or 215/945-7000)
=============
H U N G A R Y
=============
INVITEL HOLDINGS: S&P Puts 'CCC+' Rating on CreditWatch Positive
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it placed its 'CCC+'
long-term corporate credit rating on Hungary-based fixed-line
telecommunications operator Invitel Holdings A/S and related
entities Magyar Telecom B.V. and HTCC Holdco I B.V. on CreditWatch
Positive, reflecting the group's announcement of a proposed
EUR340 million senior secured notes issue.
At the same time, S&P also placed the issue ratings on Magyar
Telecom B.V.'s EUR131 million 10.75% notes due 2012 and
EUR126 million floating-rate notes due 2013, and the issue rating
on HTCC Holdco 1 B.V.'s EUR125 million junior subordinated
payment-in-kind notes due 2013, on CreditWatch positive. In
addition, S&P placed the issue ratings on the senior secured
EUR165 million credit facilities at the group's subsidiary Invitel
Zrt. on CreditWatch Positive.
At the same time, S&P assigned a 'CCC+' issue rating to the
proposed EUR340 million senior secured bond due 2016 to be issued
by Magyar Telecom B.V. and placed the rating on CreditWatch
Positive.
"The rating actions reflect S&P's assessment of the positive
implications of Invitel Holdings' liquidity profile of the
proposed refinancing," said Standard & Poor's credit analyst
Matthias Raab, "which, if completed, would alleviate the group's
demanding debt maturity profile and increase cash on hand by about
EUR24 million, according to the information S&P have." In
addition, S&P understand that the group would not have to comply
with financial maintenance covenants anymore. Finally, SS the
group to generate positive free operating cash flow in the near-
to-medium term, providing continued support to liquidity.
Nevertheless, the ratings on Invitel remain constrained by the
group's high leverage, exposure to currency mismatches, and its
aggressive financial policy as demonstrated by its recent
distressed exchange offer. In addition, S&P believes that the
group's EBITDA generation could suffer from the late-cyclical
effects of the current economic downturn, continued structural
fixed-to-mobile substitution, stagnant wholesale data revenues,
and high competitive price pressure.
To resolve the CreditWatch Positive placement, S&P will need to
review the final terms of the documentation upon completion of the
proposed refinancing.
"Based on current information," added Mr. Raab, "we expect to
raise the corporate credit rating on Invitel Holdings and related
entities by two notches to 'B' and to raise the 'CCC+' issue
rating on the proposed EUR340 million senior secured notes due
2016 to 'B', in line with Invitel Holdings' and Magyar Telecom's
expected long-term corporate credit ratings."
S&P expects to resolve the CreditWatch placement shortly upon
completion of the proposed refinancing.
MAGYAR TELECOM: Moody's Assigns 'B1' Rating on EUR340 Mil. Notes
----------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)B1,
LGD4/54% rating to the proposed EUR340 million senior secured
notes to be issued by Magyar telecom B.V. Concurrently, Moody's
upgraded Magyar Telecom's Corporate Family Rating to B2 from B3.
Moody's also upgraded the rating on the company's floating-rate
notes due 2013 to B3, LGD6/95% from Caa1, LGD4/62%. The rating
agency also upgraded the company's probability of default rating
to B1 from Caa3/LD, reflecting the company's improved liquidity
and amortization schedule and its bond-only debt structure at
closing. The outlook on all ratings was changed to stable.
The rating action concludes the review initiated on 12 August
2009, which was prompted by Moody's concerns over Magyar Telecom's
liquidity profile in light of limited cash flow generation after
interest payments, rising debt amortization requirements and tight
covenant structure.
The rating action follows the company's announced intention of
issuing EUR340 million of senior secured notes with maturity 2016
and use the proceeds to repurchase the outstanding EUR131 million
(plus premium) 2012 high yield notes, to repay the EUR140 million
senior facilities and EUR21 million subordinated loan from banks
and to fund transaction fees and expenses. The ratings on the
fixed-rate notes due 2012 have been confirmed and will be
withdrawn upon repayment.
"The assignment of a (P)B1 rating to the proposed EUR340 million
secured notes reflects the relative ranking of these instruments
within Magyar Telecom's debt structure. The notes will rank
senior to the FRNs and other unsecured liabilities of the company
and will be subordinated only to debt issued by non guaranteeing
subsidiaries and potentially to the EUR18 million revolving credit
facility provided by banks were this to be drawn," said Stefano
del Zompo, lead analyst for Magyar Telecom at Moody's.
Moody's understands that the subordinated shareholder loan
provided to Magyar Telecom B.V. by Mid Europa Partners Limited
will be restructured before closing of the transaction so that it
will only maintain an equity claim on the assets of Magyar Telecom
B.V. and its subsidiaries. Proceeds from the shareholder loan
were mainly used to refinance the EUR34 million subordinated notes
owned by TDC A/S -- the previous owner of Magyar Telecom- together
with EUR11 million of subordinated bank debt and a portion of cash
pay bonds that have been repaid in September 2009.
"The upgrade of the company's CFR to B2 reflects the improvement
of the company's liquidity position, due to the elimination of
maintenance covenants and no major debt amortization until the
maturity of the FRNs in 2013. The upgrade also reflects Magyar
Telecom's stable operating performance and the expectation of
positive free cash flow generation going forward," adds Mr. del
Zompo.
However, Moody's believes the CFR is constrained by the
expectations of continued reduced consumer spending in Hungary and
fixed-to-mobile substitution in the company's domestic market,
which will continue to impact Magyar Telecom's top line in the
medium term. The sale of the international business is also
expected to reduce the scope of the company's operations although
it will be positive for its leverage.
The outlook is stable, reflecting the expectation that the company
will continue to benefit from stable cash flows from the domestic
business while taking advantage of the growth opportunities
offered by its wholesale international operations.
Moody's issues provisional ratings in advance of the final sale of
securities and these ratings reflect Moody's preliminary credit
opinion regarding the transaction only. Upon a conclusive review
of the final documentation, Moody's will endeavor to assign a
definitive rating to the notes. A definitive rating may differ
from a provisional rating.
The last rating action was implemented on 20 October 2009, when
the company's PDR was changed to Caa3/LD from Caa3 and the review
changed to direction uncertain, reflecting the tendering of a
portion of the cash pay debt and the continued assessment of the
company's prospects and the impact of the transaction on its debt
instruments.
Headquartered in Budaors, Hungary, Magyar Telecom is the second-
largest fixed-line telecommunications provider in Hungary.
=============
I R E L A N D
=============
BELGARD MOTORS: High Court Appoints Tom Kavanagh as Liquidator
--------------------------------------------------------------
Tim Healy at Irish Independent reports that the High Court on
Monday confirmed Tom Kavanagh as liquidator to Belgard Motors
Group.
According to the report, the company, which laid off 37 people
earlier this year, is insolvent with debts of more than
EUR17 million.
The report recalls last month, the High Court appointed
Mr. Kavanagh as provisional liquidator after a judge was told
there was a need to secure valuable and movable stock in a
situation where the firm had admitted insolvency.
Belgard Motors Group is a Tallaght-based motor company. Its
business includes a Porsche dealership. The company employs
82 people.
EIRLES TWO: Moody's Withdraws 'C' Rating on Series 300 Notes
------------------------------------------------------------
Moody's Investors Service took this rating action on notes issued
by Eirles Two Limited under Series 300.
Issuer: Eirles Two Limited Series 300
-- US$150M Series 300 Notes, Withdrawn; previously on Apr 23,
2009 Downgraded to C
The rating action follows the reduction of the outstanding
principal balance of the notes to 0 after the credit events
settlements. The notes were subsequently terminated with a 100%
loss.
INDEPENDENT NEWS: To Sell 49% Verivox Stake to Oakley for EUR17MM
-----------------------------------------------------------------
Elizabeth Judge at Times Online reports that Independent News and
Media plc is to sell its 49% stake in Verivox, the German price
comparison Web site, to Oakley Capital.
Times Online says the deal -- which values the total business at
about EUR34 million -- will provide a welcome profit for INM which
brought the stake in 2006 for virtually nothing.
Oakley is to buy a further 2% of the company from Alex Preston and
Andrew Goodwin, its founding managers, Times Online discloses.
According to Times Online, Oakley is paying EUR16 million for
Verivox with an additional EUR1 million due in 2010 if Verivox
achieves its 2009 ebitda target. The sum being paid to Verivox's
founding managers is unknown, the report notes.
Verivox is the German equivalent of uSwitch, which seeks to reduce
energy bills for consumers by enabling them to compare the price
of utility suppliers online, Times Online states.
Debt-for-Equity Swap
As reported by the Troubled Company Reporter-Europe on Nov. 12,
2009, The Financial Times said that INM secured approval of a
proposed debt-for-equity swap refinancing from bondholders. The
FT disclosed the plan involves the exchange of EUR123 million
(US$184 million, GBP110 million) of bonds for a 46% stake in the
new company. According to the FT, under the plan approved by
bondholders, existing IN&M shareholders will be diluted to around
52%.
About Independent News & Media
Headquartered in Dublin, Ireland, Independent News & Media PLC
(ISE:IPD) -- http://www.inmplc.com/-- is engaged in printing and
publishing of metropolitan, national, provincial and regional
newspapers in Australia, India, Ireland, New Zealand, South Africa
and the United Kingdom. It also has radio operations in Australia
and New Zealand, and outdoor advertising operations in Australia,
New Zealand, South-East Asia and across Africa. The Company also
has online operations across each of its principal markets. The
Company has three business segments: printing, publishing, online
and distribution of newspapers and magazines and commercial
printing; radio, and outdoor advertising. INM publishes over 200
newspaper and magazine titles, delivering a combined weekly
circulation of over 32 million copies with a weekly audience of
over 100 million consumers. In March 2008, it acquired The Sligo
Champion. During the year ended December 31, 2007, the Company
acquired the remaining 50% interest in Toowoomba Newspapers Pty
Ltd.
LINEN SUPPLY: Court Rejects Examiner's Request to Repudiate Leases
------------------------------------------------------------------
Ian Kehoe at The Sunday Business Post Online reports that the High
Court's Mr. Justice Brian McGovern has rejected an application by
the court-appointed examiner for Linen Supply of Ireland to
repudiate leases on five properties occupied by the firm, putting
almost 330 jobs at risk.
According to the report, Judge McGovern said that such a move was
not authorized under examinership law.
The report notes repudiation of the leases was an integral part of
a proposed scheme of arrangement that had been drawn up to rescue
the business, which has liabilities of EUR61 million, from
liquidation. The scheme of arrangement, prepared by KPMG
accountant Kieran Wallace, was designed to save the remaining 326
jobs, the report says.
Mr. Wallace, the report discloses, will now decide whether to
appeal the decision to the Supreme Court, or attempt to
renegotiate contracts with landlords independently of the court.
If this fails, the scheme will collapse and Linen Supply of
Ireland will go into the liquidation process, the report states.
The report recalls the company has incurred trading losses in
2007, 2008 and 2009 as a result of a decline in the hospitality
sector, and in its work wear sales and sterile and surgical
supplies business.
Linen Supply of Ireland provides textile rental and laundry
cleaning services to companies in the hospitality, healthcare and
food industries as well as supplying hygiene equipment and dust
control mats.
=========
I T A L Y
=========
ALITALIA SPA: To Auction Art Collection This Month
--------------------------------------------------
John Cookson at Bloomberg News reports that Alitalia SpA plans to
auction off its art collection.
According to Bloomberg, Alitalia's bankruptcy commissioner will
seek to raise at least EUR1 million (US$1.5 million) by auctioning
off the Italian airline's art collection this month.
Based in Rome, Alitalia S.p.A. -- http://www.alitalia.it/--
provides air travel services for passengers and air transport of
cargo on national, international and inter-continental routes,
including United States, Canada, Japan and Argentina. The Italian
government owns 49.9% of Alitalia.
As reported in the Troubled Company Reporter-Europe on November 7,
2008, Alitalia S.p.A. filed for Chapter 15 protection with the
U.S. Bankruptcy Court in the Southern District of New York.
Italy's national airline experienced financial difficulties for a
number of years caused, in large measure, by a combination of
competition from low-cost air carriers, poor management and
onerous union obligations, according to papers filed with the
court.
Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million in
2000 and 2001 respectively. Alitalia posted EUR93 million in net
profits in 2002 after a EUR1.4 billion capital injection. The
carrier booked annual net losses of EUR520 million in 2003, EUR813
million in 2004, EUR168 million in 2005, EUR625.6 million in 2006,
and EUR494.64 million in 2007.
In the petition filed October 29, 2008, Prof. Augusto Fantozzi,
the appointed administrator, said the airline's financial
difficulties have been and exacerbated by spiralling fuel prices.
On August 29, 2008, Alitalia declared insolvency and filed for
commencement of extraordinary administration procedure at the
Tribunal of Rome. Italian Prime Minister Silvio Berlusconi
appointed Mr. Fantozzi as extraordinary commissioner. Under the
Bankruptcy Bill, the Administrator has supplanted the directors
and other management of Alitalia.
PARMALAT SPA: Italian Police Seizes Founder's EUR100MM Art Works
----------------------------------------------------------------
Andrew Davis at Bloomberg News reports that Italian police seized
art work valued at more than EUR100 million (US$149 million)
belonging to Calisto Tanzi, founder of Parmalat Finanziaria SpA.
According to Bloomberg, police in Parma, Italy, recovered 19 works
they said were hidden with the help of Tanzi's relatives. They
included paintings by Picasso, Van Gogh, Cezanne and a self-
portrait by Antonio Ligabue, Bloomberg discloses.
Bloomberg relates police said Mr. Tanzi, who is on trial in Parma
for his role in the EUR14-billion collapse of the dairy company in
December 2003, was preparing to sell at least one painting.
Bloomberg recalls Parmalat collapsed in December 2003 after it
failed to make payments due on its bonds. Italian prosecutors
filed criminal charges against Parmalat executives, its lenders
and its auditors after discovering the company never earned a
profit after its 1992 stock market listing while it reported
earnings every year, Bloomberg recounts.
Headquartered in Milan, Italy, Parmalat S.p.A. --
http://www.parmalat.net/-- sells nameplate milk products
that can be stored at room temperature for months. It also has
about 40 brand product lines, which include yogurt, cheese,
butter, cakes and cookies, breads, pizza, snack foods and
vegetable sauces, soups and juices.
The Company's U.S. operations filed for Chapter 11 protection on
February 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary
Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors. When the U.S. Debtors filed
for bankruptcy protection, they reported more than US$200 million
in assets and debts. The U.S. Debtors emerged from bankruptcy on
April 13, 2005.
Parmalat S.p.A. and its Italian affiliates filed separate
petitions for Extraordinary Administration before the Italian
Ministry of Productive Activities and the Civil and Criminal
District Court of the City of Parma, Italy on December 24, 2003.
Dr. Enrico Bondi was appointed Extraordinary Commissioner in
each of the cases. The Parma Court has declared the units
insolvent.
On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.
04-14268, in the United States Bankruptcy Court for the Southern
District of New York.
Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat
Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and
Food Holdings are Cayman Island special-purpose vehicles
established by Parmalat S.p.A. The Finance Companies are under
separate winding up petitions before the Grand Court of the Cayman
Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman)
Ltd. serve as Joint Provisional Liquidators in the cases. On
January 20, 2004, the Liquidators filed Sec. 304 petition, Case
No. 04-10362, in the United States Bankruptcy Court for the
Southern District of New York. In May 2006, the Cayman Island
Court appointed Messrs. MacRae and Cleaver as Joint Official
Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham
& Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon,
Herlands Randolph, represent the Finance Companies in the Sec. 304
case.
The Honorable Robert D. Drain presided over the Parmalat Debtors'
U.S. cases. On June 21, 2007, the U.S. Court granted Parmalat
permanent injunction.
===================
K A Z A K H S T A N
===================
AKTOBE MED: Creditors Must File Claims by December 16
-----------------------------------------------------
LLP Management Company Aktobe Med is currently undergoing
liquidation. Creditors have until December 16, 2009, to submit
proofs of claim to:
Maresyev Str. 4g-8
Aktobe
Kazakhstan
ALIBEK KURYLYS: Creditors Must File Claims by December 16
---------------------------------------------------------
Creditors of LLP Alibek Kurylys have until December 16, 2009, to
submit proofs of claim to:
Altynsarin Str. 31
Aktobe
Kazakhstan
The Specialized Inter-Regional Economic Court of Aktobe commenced
bankruptcy proceedings against the company on September 23, 2009,
after finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of Aktobe
Satpaev Str. 16
Aktobe
Kazakhstan
ASTANA ATL: Creditors Must File Claims by December 16
-----------------------------------------------------
Creditors of LLP Astana Atl have until December 16, 2009, to
submit proofs of claim to:
Aimanov Str. 6-217
Astana
Kazakhstan
The Specialized Inter-Regional Economic Court of Astana commenced
bankruptcy proceedings against the company on September 11, 2009,
after finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of Astana
Abai Ave. 36
Astana
Kazakhstan
ASTANA BONUS: Creditors Must File Claims by December 16
-------------------------------------------------------
Creditors of LLP Astana Bonus have until December 16, 2009, to
submit proofs of claim to:
Aimanov Str. 6-217
Astana
Kazakhstan
The Specialized Inter-Regional Economic Court of Astana commenced
bankruptcy proceedings against the company on September 11, 2009,
after finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of Astana
Abai Ave. 36
Astana
Kazakhstan
BELGRAVIA GRAND: Creditors Must File Claims by December 16
----------------------------------------------------------
LLP Belgravia Grand Project is currently undergoing liquidation.
Creditors have until December 16, 2009, to submit proofs of claim
to:
Micro District Samal-2, 97
Almaty
Kazakhstan
BTM ASTANA: Creditors Must File Claims by December 16
-----------------------------------------------------
Creditors of LLP Btm Astana have until December 16, 2009, to
submit proofs of claim to:
Kravtsov Str. 18
Astana
Kazakhstan
The Specialized Inter-Regional Economic Court of Astana commenced
bankruptcy proceedings against the company on September 10, 2009,
after finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of Astana
Abai Ave. 36
Astana
Kazakhstan
KAZHOLDING & K: Creditors Must File Claims by December 16
---------------------------------------------------------
Creditors of LLP Kazholding & K have until December 16, 2009, to
submit proofs of claim to:
The Specialized Inter-Regional
Economic Court of Karaganda
Alalykin Str. 9
Karaganda
Kazakhstan
The court commenced bankruptcy proceedings against the company on
September 22, 2009.
LARIBA BANK: Creditors Must File Claims by December 16
------------------------------------------------------
LLP Associated Company of JSC Joint Bank Lariba Bank is currently
undergoing liquidation. Creditors have until December 16, 2009,
to submit proofs of claim to:
Rozybakiev Str. 181a
Almaty
Kazakhstan
STANDART STROY: Creditors Must File Claims by December 16
---------------------------------------------------------
Branch of LLP Standart Stroy is currently undergoing liquidation.
Creditors have until December 16, 2009, to submit proofs of claim
to:
Datov Side Street 1, 5
Taraz
Kazakhstan
TAZA KURYLYS 5: Creditors Must File Claims by December 16
---------------------------------------------------------
Creditors of LLP Taza Kurylys 5 have until December 16, 2009, to
submit proofs of claim to:
Ilyaev Str. 24
Shymkent
South Kazakhstan
Kazakhstan
The Specialized Inter-Regional Economic Court of South Kazakhstan
commenced bankruptcy proceedings against the company on
September 8, 2009, after finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of South Kazakhstan
Tynybaev Str. 42
Shymkent
South Kazakhstan
Kazakhstan
TEMIRBANK AO: ISDA to Rule If Default Swaps Have Credit Event
-------------------------------------------------------------
Abigail Moses at Bloomberg News reports that the International
Swaps & Derivatives Association was asked to rule on whether the
Temirbank credit-default swaps will be triggered by a so-called
failure to pay credit event.
In a Nov. 23 report Bloomberg disclosed Temirbank missed debt
payments on Nov. 6 and Nov. 9. According to Bloomberg, the bank
said the default followed the "substantial deterioration" of
Temirbank's loan holdings, which pushed regulatory capital below
the required minimum and could have cost the bank its license.
Debt Restructuring
As reported by the Troubled Company Reporter-Europe on Dec. 3,
2009, Bloomberg News said Temirbank creditors face losses of as
much as 80.3% as the bank seeks to restructure its debts.
Bloomberg related Temirbank offered to pay 19.7 cents on the
dollar to holders of US$300 million of senior notes due 2011. The
bank proposed paying 20.03% of face value on US$500 million of
notes due 2014, Bloomberg said. The bank said holders of both
securities will receive an additional US$10 per US$1,000 of
principal if they accept the offer by 5:00 p.m. Dec. 15, according
to Bloomberg.
About Temirbank
Temirbank AO (Temirbank JSC) -- http://en.temirbank.kz/-- is a
Kazakhstan-based financial institution rendering a range of
services both to corporate and individual clients. Corporate
customer services include a cash-settlement services, loans,
documentary operations, safe deposit boxes and cash-in-transit
service. Retail customer services include deposits, loans, wire
transfers, payment processing services, travelers' checks, safe
deposit boxes and other services in national and foreign
currencies. It also provides the Internet banking services. The
Bank operates through 21 branches and 121 centers on banking
services on the territory of Kazakhstan. Temirbank AO has one
wholly owned subsidiary Temir Capital BV located in the
Netherlands.
* * *
As reported by the Troubled Company Reporter-Europe on Nov. 25,
2009, Fitch Ratings downgraded Kazakhstan-based Temirbank's
Long-term Issuer Default Rating to 'RD' (Restricted Default) from
'CC', thereby resolving the Rating Watch Negative on the rating.
===================
K Y R G Y Z S T A N
===================
BAI HY: Creditors Must File Claims by January 6
-----------------------------------------------
LLC Chinese Oil-Gas Corporation Bai Hy is currently undergoing
liquidation. Creditors have until January 6, 2010, to submit
proofs of claim to:
Jukeyev Pudovkin Str. 2/1
Bishkek
Kyrgyzstan
Tel: (+996 312) 44-33-99
DRAG METAL: Creditors Must File Claims by January 6
---------------------------------------------------
LLC Drag Metal Invest is currently undergoing liquidation.
Creditors have until January 6, 2010, to submit proofs of claim
to:
Jukeyev Pudovkin Str. 2/1
Bishkek
Kyrgyzstan
Tel: (+996 312) 44-33-99
=================
L I T H U A N I A
=================
LEO LT: Lithuanian Gov't and NDX Sign Liquidation Agreement
-----------------------------------------------------------
The Lithuanian Government and NDX Energija UAB on December 4
signed an agreement regarding the liquidation of LEO LT AB and
cancellation of agreement for the establishment of a national
investment company.
As a result, the Lithuanian Government essentially became the sole
shareholder of LEO LT.
LEO LT owns 98.2% of VST AB shares. Headquartered in Vilnius,
Lithuania, LEO LT AB -- http://www.leolt.lt-- is an energy
holding company in Lithuania.
=====================
N E T H E R L A N D S
=====================
NORTH WESTERLY: Moody's Cuts Ratings on Two Classes of Notes to Ca
------------------------------------------------------------------
Moody's Investors Service took these rating actions on notes
issued by North Westerly CLO I B.V. The Class I Notes remain Aaa
due to the fact that this deal is more than a year passed its
reinvestment period and Class I has de-leveraged quite
substantially.
-- EUR32M Class II Deferrable Interest Floating Rate Notes due
2016, Downgraded to Ba1; previously on Mar 20, 2009
Downgraded to Baa3 and Remained On Review for Possible
Downgrade
-- EUR7.5M Class III-A Deferrable Interest Fixed Rate Notes due
2016, Downgraded to B3; previously on Mar 20, 2009 Downgraded
to Ba3 and Remained On Review for Possible Downgrade
-- EUR12M Class III-B Deferrable Interest Floating Rate Notes
due 2016, Downgraded to B3; previously on Mar 20, 2009
Downgraded to Ba3 and Remained On Review for Possible
Downgrade
-- US$5.27M Class III-C Deferrable Interest Floating Rate Notes
due 2016, Downgraded to B3; previously on Mar 20, 2009
Downgraded to Ba3 and Remained On Review for Possible
Downgrade
-- EUR6M Class IV-A Deferrable Interest Fixed Rate Notes due
2016, Downgraded to Ca; previously on Mar 20, 2009 Downgraded
to Caa3 and Remained On Review for Possible Downgrade
-- EUR12M Class IV-B Deferrable Interest Floating Rate Notes due
2016, Downgraded to Ca; previously on Mar 20, 2009 Downgraded
to Caa3 and Remained On Review for Possible Downgrade
-- EUR5M Class Q Combination Notes due 2016, Downgraded to B1;
previously on Jun 3, 2003 Definitive Rating Assigned Baa3
-- EUR10M Class R Combination Notes due 2016, Withdrawn;
previously on Jun 3, 2003 Definitive Rating Assigned Baa3
Moody's has withdrawn the rating assigned to the EUR10 million
Class R Combination Notes due 2016. These notes were split back
into their original components and thus are no longer outstanding.
This transaction is a high yield cash collateralized loan
obligation with exposure to predominantly European senior secured
loans, as well as some 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 2768), an increase in the proportion of
securities from issuers rated Caa1 and below (currently
approximately 11.82% of the portfolio), and a failure of some par
value tests. These measures were taken from the recent trustee
report dated 30 October 2009. Moody's also performed a number of
sensitivity analyses, including consideration of a further decline
in portfolio WARF quality. Due to the impact of all the
aforementioned stresses, key model inputs used by Moody's in its
analysis, such as par, weighted average rating factor, and
weighted average recovery rate, may be different from trustee's
reported numbers.
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
===========
AVTOVAZ OAO: VEB May Provide Funding for Investment Program
-----------------------------------------------------------
Anastasia Ustinova at Bloomberg News reports that Vnesheconombank,
Russia's state development bank known as VEB, may help fund OAO
AvtoVAZ's RUR30-billion (US$1 billion) investment program.
According to Bloomberg, VEB Chief Executive Officer Vladimir
Dmitriev said Monday no decision has yet been made about the
amount the bank may provide.
As reported by the Troubled Company Reporter-Europe on Dec. 1,
2009, Bloomberg News said that Russia pledged to inject
RUR50 billion (US$1.7 billion) into AvtoVAZ in return for
technology from 25% shareholder Renault SA. Bloomberg disclosed
Renault agreed to contribute engineering know-how worth at least
EUR240 million (US$358 million). Renault, as cited by Bloomberg,
said in a statement the cash will help AvtoVAZ restructure its
debt, defend a one-quarter share of its home market and raise
annual output to 900,000 autos.
Based in Tolyatti, Russia, AVTOVAZ OAO (AVTOVAZ JSC) --
http://www.lada-auto.ru/-- is engaged in the manufacture of
passenger cars. The Company's main brands are LADA PRIORA, LADA
Kalina, LADA Samara, LADA 110 and others. The Company is also
involved in the manufacture of automobile components, distribution
of automobiles and spare parts and operation of automobile service
centers. The Company is also active in a variety of other
sectors, such as power supply, transportation, utilities,
construction, insurance, banking and finance. AVTOVAZ OAO sells
its products on the domestic market, as well as exports them to
Kazakhstan, Ukraine, Azerbaijan, Armenia, Egypt, Syria, Greece,
Belarus, Uruguay, Cyprus, Germany and others. It operates through
one representative office located in Moscow, several subsidiaries
and affiliated companies.
NOMOS CAPITAL: Fitch Assigns 'B+' Senior Unsecured Loan Notes
-------------------------------------------------------------
Fitch Ratings has assigned Nomos Capital Plc's upcoming issue of
senior unsecured loan participation notes expected Long-term
rating 'B+' and Recovery Rating 'RR4'.
Nomos Capital Plc., an Ireland-domiciled special-purpose vehicle,
will use the proceeds from the notes to finance a loan to NOMOS-
BANK ('B+'/Stable Outlook) and will only pay noteholders principal
and interest received from the bank. The final rating of the
notes is contingent upon the receipt of final documentation
conforming to information already received.
The notes will have an expected maturity of three years. The
notes will rank at least equally with all NOMOS-BANK's other
senior unsecured debt, save those preferred by relevant
legislation. Under Russian law, the claims of retail depositors
rank above those of other senior unsecured creditors. At end-
H109, retail deposits accounted for 21% of NOMOS-BANK's total
liabilities, according to the bank's reviewed interim IFRS
accounts.
At end-Q309, NOMOS-BANK ranked 15th by assets among Russian banks
(fifth among private, domestically owned institutions) with a 1%
market share. A 50.1% stake is controlled by six local
businessmen, with the rest owned by the Czech-based PPF group and
Slovakia-based J&T group.
UC RUSAL: Fails to Get Approval for Hong Kong IPO
-------------------------------------------------
United Co. Rusal failed to get approval for an initial public
offering from Hong Kong's stock exchange, Yuriy Humber and Bei Hu
at Bloomberg News report, citing three people familiar with the
matter.
Bloomberg relates two of the people, who declined to be identified
because the matter is private, said Monday's decision may delay
the listing until next year. According to Bloomberg, the people
said the listing committee needed more time to study documents
from Rusal.
One source told Bloomberg the Hong Kong stock exchange needs to
study the debt agreement, including a US$4.5 billion loan from
Russian state-run bank Vnesheconombank.
As reported by the Troubled Company Reporter-Europe, Bloomberg
News said Rusal plans to sell a 10% stake in an offering in Hong
Kong this year to help repay more than US$14 billion of debt. The
Troubled Company Reporter-Europe, citing the Financial Times,
reported on Dec. 4, 2009, that Rusal concluded a landmark
restructuring of its nearly US$17 billion debt owed to several
dozen creditors -- including US$7.4 billion owed to international
banks -- with Mr. Deripaska managing to retain his controlling
stake, in a move that paves the way for the IPO to go ahead.
About Rusal
Headquartered in Moscow, Russia, United Co. RUSAL --
http://www.rusal.com/-- is among the world's top aluminum
producers, along with Rio Tinto Alcan and Alcoa. Formed in 2000
from various parts of the old Soviet state apparatus, RUSAL
produces about 4 million tons of aluminum, 11 million tons of
alumina, and 6 million tons of bauxite. Its aluminum business
include packaging and foil operations in addition to a network of
smelters. Those Soviet spare parts were significantly augmented
in 2007 when the company merged with fellow Russian aluminum
producer Sual and Glencore's alumina unit. RUSAL is majority
owned by Board member Oleg Deripaska, who had owned the company
completely prior to the merger.
=========
S P A I N
=========
FINANCIACION BANESTO: S&P Cuts Rating on Class C Notes to 'BB'
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on all the notes in
Financiacion Banesto 1, Fondo de Titulizacion de Activos.
On July 15, S&P placed on CreditWatch negative its ratings on all
the notes in Financiacion Banesto 1 following S&P's preliminary
review of the effect of the short-term arrears level on the swap
payments in the transaction. The rating actions follow S&P's
completed analysis of this risk, as well as its updated risk
assessment of the significant performance deterioration recorded
over the past months.
As of the last investor report, soft delinquencies (defined as
loans in arrears for between 15 and 90 days) were 13.85% of the
current pool. The swap is a total return swap where the issuer
pays to the swap counterparty all interest received from any
collections from underlying obligors during the quarter. In
return, the issuer receives the defined interest rate calculated
on a notional equal to the performing balance of the assets. Due
to the high level of short-term arrears, there is a higher
probability, in S&P's view, of a material reduction in the swap
notional and, hence, a mismatch between the payments the issuer
makes and those it receives.
As of the October interest payment date, the 90+ day delinquency
rate was 4.08% over the current pool. The balance of the reserve
fund was EUR957,061.60 instead of the minimum level of
EUR9,600,000.00provided for in the transaction documentation as
the issuer drew it from April up to the last IPD to cover
defaults. As of December 7, the cash reserve represents 0.28% of
the outstanding balance of the notes. As a result, in S&P's view,
the transaction might have insufficient credit support to cover
the risk of delinquent loans defaulting in the short term.
The transaction registered a rapid increase in defaulted loans, up
to EUR27,073,668.91 at the October IPD from EUR9,480,838.71 in
January 2009. In S&P's view, this shows a rapid rollover of
severe delinquencies into written-off loans. Currently,
cumulative written-off loans are 3.38% of the original balance.
The transaction's structure implies that if the level of
cumulative defaulted loans (defined as loans with arrears greater
than 12 months) reaches a certain percentage of the initial
collateral balance, the priority of payments changes. In
particular, the issuer will postpone interest payments on the
class C notes when cumulative written-off loans reach 7% of the
original balance (9% for class B). S&P expects it is likely that
defaults will increase due to the negative effect of the high
Spanish unemployment rate, a primary factor, in S&P's view, behind
consumer transactions' performance.
S&P conducted a credit and cash flow analysis of Financiacion
Banesto 1, taking into consideration the effect of the current
Spanish economic outlook on S&P's default rate assumptions. In
S&P's view, this showed that the credit enhancement available for
all the tranches is insufficient to maintain the current ratings.
The transaction closed in June 2007 and the collateral backing it
comprises a portfolio of Spanish consumer loans originated by
Banco Espanol de Credito, S.A. It was intended to revolve for two
years from closing, but the replenishment period stopped early due
to a delinquency trigger breach.
Ratings List
Financiacion Banesto, 1 Fondo de Titulizazion
EUR800 Million Asset-Backed Floating-Rate Notes
Ratings Lowered and Removed From CreditWatch Negative
Rating
------
Class To From
----- -- ----
A AA AAA/Watch Neg
B BBB+ AA/Watch Neg
C BB A/Watch Neg
=====================
S W I T Z E R L A N D
=====================
BUCH + SPIEL: Claims Filing Deadline is December 10
---------------------------------------------------
Creditors of Buch + Spiel GmbH are requested to file their proofs
of claim by December 10, 2009, to:
Greutert Maurizio
Chiss 1
7503 Samedan
Switzerland
The company is currently undergoing liquidation in Brugg. The
decision about liquidation was accepted at a shareholders' meeting
held on September 1, 2008.
INNOMAIL GMBH: Claims Filing Deadline is December 10
----------------------------------------------------
Creditors of Innomail GmbH are requested to file their proofs of
claim by December 10, 2009, to:
Innomail GmbH
Saedelstrasse 23
3115 Gerzensee
Switzerland
The company is currently undergoing liquidation in Gerzensee. The
decision about liquidation was accepted at a shareholders' meeting
held on September 4, 2009.
KITCHEN-HOUSE: Claims Filing Deadline is December 10
----------------------------------------------------
Creditors of Kitchen-House AG are requested to file their proofs
of claim by December 10, 2009, to:
Rene Engel
Liquidator
Kasinostrasse 25
5000 Aarau
Switzerland
The company is currently undergoing liquidation in Zurich. The
decision about liquidation was accepted at an extraordinary
general meeting held on September 29, 2009.
MEDIA PLANTAGE: Claims Filing Deadline is December 10
-----------------------------------------------------
Creditors of media plantage GmbH are requested to file their
proofs of claim by December 10, 2009, to:
media plantage GmbH
Saumstrasse 8
9100 Herisau
Switzerland
The company is currently undergoing liquidation in Herisau. The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on October 23, 2009.
RAIL IN-TRAVEL: Claims Filing Deadline is December 10
-----------------------------------------------------
Creditors of Rail in-Travel GmbH are requested to file their
proofs of claim by December 10, 2009, to:
Walter Ellenberger
Stadtfeldstrasse 19
3800 Unterseen
Switzerland
The company is currently undergoing liquidation in Unterseen. The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on June 29, 2009.
RESTAURANT KREUZ: Claims Filing Deadline is December 10
-------------------------------------------------------
Creditors of Restaurant Kreuz Mett GmbH are requested to file
their proofs of claim by December 10, 2009, to:
Regula Belgacem-Sauter
Scheurenmoos 8
2552 Orpund
Switzerland
The company is currently undergoing liquidation in Biel/Bienne.
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on October 20, 2009.
UT+E UMWELT: Claims Filing Deadline is December 10
--------------------------------------------------
Creditors of UT+E Umwelt Technologie + Energie GmbH are requested
to file their proofs of claim by December 10, 2009, to:
Patrick Molnar
Liquidator
Rebbergstrasse 77
8049 Zurich
Switzerland
The company is currently undergoing liquidation in Zurich. The
decision about liquidation was accepted at a general meeting held
on September 25, 2008.
=============
U K R A I N E
=============
CASTELLO-KIEV-ML: Creditors Must File Claims by December 11
-----------------------------------------------------------
Creditors of LLC Castello-Kiev-ML (code EDRPOU 30942231) have
until December 11, 2009, to submit proofs of claim to:
V. Tkachuk
Insolvency Manager
Office 2
A. Akhmatova Str. 9/18
02068 Kiev
Ukraine
The Economic Court of Kiev commenced bankruptcy proceedings
against the company on October 15, 2009. The case is docketed
under Case No. B14/162-07/11.
The Court is located at:
The Economic Court of Kiev
Komintern Str. 16
01032 Kiev
Ukraine
The Debtor can be reached at:
LLC Castello-Kiev-ML
Tsentralnaya Str. 113
Irpen
Kiev
Ukraine
KURORT TRADE: Creditors Must File Claims by December 11
-------------------------------------------------------
Creditors of OJSC Kurort Trade (code EDRPOU 13833799) have until
December 11, 2009, to submit proofs of claim to:
Y. Onushkanich
Insolvency Manager
Office 3
Striy Str. 71b
79031 Lvov
Ukraine
The Economic Court of Lvov commenced bankruptcy proceedings
against the company on October 27, 2009. The case is docketed
under Case No. 8/38 (7/4-4/2).
The Court is located at:
The Economic Court of Lvov
Lichakovskaya Str. 128
79010 Lvov
Ukraine
The Debtor can be reached at:
OJSC Kurort Trade
Mazepa str. 9
Truskavets
82200 Lvov
Ukraine
MEGAINVEST-UKRAINE: Creditors Must File Claims by December 11
-------------------------------------------------------------
Creditors of LLC Megainvest-Ukraine (code EDRPOU 34598320) have
until December 11, 2009, to submit proofs of claim to E. Stoyanov,
the company's insolvency manager.
The Economic Court of Odessa commenced bankruptcy proceedings
against the company on November 3, 2009. The case is docketed
under Case No. 7/389-09-5069.
The Court is located at:
The Economic Court of Odessa
Shevchenko Ave. 29
65032 Odessa
Ukraine
The Debtor can be reached at:
LLC Megainvest-Ukraine
Kovalskaya Str. 23
65020 Odessa
Ukraine
MIORA LUX: Creditors Must File Claims by December 11
----------------------------------------------------
Creditors of LLC Miora Lux (code EDRPOU 36143208) have until
December 11, 2009, to submit proofs of claim to:
V. Cherepenko
Insolvency Manager
Office 54-a
54017 Nikolayev
Ukraine
The Economic Court of Nikolayev commenced bankruptcy proceedings
against the company on October 29, 2009. The case is docketed
under Case No. 18/189/09.
The Court is located at:
The Economic Court of Nikolayev
Admiralskaya Street 22-a
54009 Nikolayev
Ukraine
The Debtor can be reached at:
LLC Miora Lux
Office 33
Lenin Ave. 189
54003 Nikolayev
Ukraine
MOBIL WORLD: Creditors Must File Claims by December 11
------------------------------------------------------
Creditors of LLC Mobil World (code EDRPOU 30956944) have until
December 11, 2009, to submit proofs of claim to:
D. Tsimberov
Insolvency Manager
Office 52
Bakulin Str. 9/13
Kharkov
Ukraine
The Economic Court of Kharkov commenced bankruptcy proceedings
against the company on November 2, 2009. The case is docketed
under Case No. B-39/1197-09.
The Court is located at:
The Economic Court of Kharkov
Svoboda Square 5
61022 Kharkov
Ukraine
The Debtor can be reached at:
LLC Mobil World
Kolomak
Kharkov
Ukraine
TRADE PRAKTIK: Creditors Must File Claims by December 11
--------------------------------------------------------
Creditors of LLC Trade Praktik Ltd. (code EDRPOU 36536072) have
until December 11, 2009, to submit proofs of claim to:
V. Cherepenko
Insolvency Manager
Office 54-a
54017 Nikolayev
Ukraine
The Economic Court of Nikolayev commenced bankruptcy proceedings
against the company on October 29, 2009. The case is docketed
under Case No. 18/187/09.
The Court is located at:
The Economic Court of Nikolayev
Admiralskaya Street 22-a
54009 Nikolayev
Ukraine
The Debtor can be reached at:
LLC Trade Praktik Ltd.
Oktiabrsky Ave. 31/1
54025 Nikolayev
Ukraine
===========================
U N I T E D K I N G D O M
===========================
APTUS PERSONNEL: To Enter Into Company Voluntary Arrangement
------------------------------------------------------------
Bedfordshire on Sunday reports that Aptus Personnel Ltd. has
submitted an application to place its business into Company
Voluntary Arrangement.
The report relates employees of Aptus received a letter last week
detailing plans to protect the group after a "strain on cash
resources".
A CVA is an agreement between a company and its creditors
following proposals made by the directors for a composition in
satisfaction of its debts and a scheme of arrangement of its
affairs.
"When in March 2008 JARK plc acquired the share capital of Aptus
Personnel Ltd that company had accumulated losses of GBP2.7
million," the report quoted John Buckman, the director of the
Aptus group, as saying in the letter. "Although we thought it
could be improved the Aptus business was hit by the loss of a
major contract with British Telecom worth about GBP7 million in
turnover, and the recent recession."
Aptus Personnel Ltd. is an agency which provides more than 300
staff to Bedford Borough Council.
LLOYDS BANKING: In Debt Talks with Dubai World
----------------------------------------------
Helen Power and Hugh Tomlinson at The Times report that Dubai
World's six biggest lending banks have begun talks with the group
before a crunch creditors' meeting that is scheduled for
December 21.
The Times relates four British-listed banks -- HSBC, Royal Bank of
Scotland, Lloyds Banking Group and Standard Chartered -- and two
local lenders -- Emirates National Bank of Dubai and Abu Dhabi
Commercial Bank -- met NM Rothschild and Deloitte, Dubai World's
advisers, in the Gulf State Monday.
According to The Times, the banks tried to ascertain whether Dubai
World would make interest payments due on the bonds of Nakheel
PJSC, its property subsidiary, next Monday. The leading banks,
which are forming a steering committee to represent all 90 of
Dubai World's bank lenders, also asked for detailed financial
information to help them to revalue the company in the event of a
default, The Times says.
The Times discloses insiders close to the talks said that Monday's
meeting had been exploratory but would establish the likely
direction of future negotiations.
6-Month Standstill
The Troubled Company Reporter, citing The Wall Street Journal and
Bloomberg News, ran a story about Dubai World seeking a six-month
standstill on its debt obligations. In a statement obtained by
the Journal and Bloomberg, the government of Dubai said it would
restructure Dubai World and has appointed Deloitte LLP to lead the
restructuring effort, naming an executive at the consultancy as
the group's "chief restructuring officer."
The standstill will immediately affect US$3.52 billion of Islamic
bonds due December 14 from the Company's property unit Nakheel.
Bloomberg News' Arif Sharif and Laura Cochrane said Dubai World
has US$59 billion in liabilities. Bloomberg said Dubai
accumulated US$80 billion of debt by expanding in banking, real
estate and transportation before credit markets seized up last
year.
The Journal said Standard & Poor's in an October report estimated
Dubai World could be responsible for as much as 50% of Dubai's
total government and corporate debt load of some US$80 billion to
US$90 billion.
Large Exposure
As reported by the Troubled Company Reporter-Europe on Dec. 1,
2009, The Wall Street Journal's Chip Cummins, Dana Cimilluca and
Sara Schaefer Munoz, citing a person familiar with the matter,
said that U.K.'s Royal Bank of Scotland Group PLC, HSBC Holdings
PLC, Barclays PLC, Lloyds Banking Group PLC, Standard Chartered
PLC and ING Groep NV of the Netherlands, are among the
international banks that have large exposure in Dubai World.
RBS has lent roughly US$1 billion to Dubai World, another person
said, according to the Journal. Sources also told the Journal
Barclays's exposure to Dubai World is roughly US$200 million, and
that exposure is effectively hedged.
David Robertson at The (U.K) Times reported Credit Suisse has
estimated that European banks could have EUR40 billion
(GBP36 billion) in loans to Dubai and much of this could be at
risk if the Gulf emirate defaults.
The Journal, citing people familiar with the matter, said the
banks with the greatest exposure to Dubai World are Abu Dhabi
Commercial Bank and Emirate NBD PJSC, people familiar with the
matter said.
Dow Jones Newswires' Margot Patrick related that a report by the
Emirates Banks Association said the top eight foreign banks in the
United Arab Emirates by lending volume -- HSBC, Standard
Chartered, Barclays, HSBC, Royal Bank of Scotland's ABN Amro,
Citigroup Inc., BNP Paribas SA, Lloyds and Credit Agricole SA's
Calyon, -- extended about US$36 billion in loans in 2008
throughout the federation, without breaking down the loans by
emirate or type of borrower.
About Dubai World
Dubai World -- http://www.dubaiworld.ae/-- is Dubai's flag bearer
in global investments. As a holding company it operates a highly
diversified spectrum of industrial segments and plays a major role
in the emirate's rapid economic growth. Dubai World's investment
spans four strategic growth areas of 21st Century commerce namely,
Transport & Logistics, Drydocks & Maritime, Urban Development and
Investment & Financial Services. Dubai World's portfolio includes
DP World, one of the largest marine terminal operators in the
world; Drydocks World & Dubai Maritime City designed to turn Dubai
into a major ship-building and maritime hub; Economic Zones World
which operates several free zones around the world including Jafza
and TechnoPark in Dubai; Nakheel the property developer behind
iconic projects such as The Palm Islands and The World among
others; Limitless the international real estate master planner
with current development projects in various parts of the world;
Leisurecorp a global sports and leisure investment group,
reshaping the industry by unlocking value across investment,
development and brand opportunities; Dubai World Africa which
oversees the regional development and portfolio of investments in
the African continent; and Istithmar World, the group's investment
arm that has a global footprint in finance, capital, leisure,
aviation and various other business ventures.
The Sun Never Sets on Dubai World, its Web site says.
About Lloyds Banking Group PLC
Lloyds Banking Group PLC, formerly Lloyds TSB Group plc,
(LON:LLOY) -- http://www.lloydsbankinggroup.com/-- is a United
Kingdom-based financial services group providing a range of
banking and financial services, primarily in the United Kingdom,
to personal and corporate customers. The Company operates in
three divisions: UK Retail Banking, Insurance and Investments, and
Wholesale and International Banking. Its main business activities
are retail, commercial and corporate banking, general insurance,
and life, pensions and investment provision. The Company also
operates an international banking business with a global footprint
in 40 countries. Services are offered through a number of brands,
including Lloyds TSB, Halifax, Bank of Scotland, Scottish Widows,
Clerical Medical and Cheltenham & Gloucester. On January 16,
2009, Lloyds Banking Group plc acquired HBOS plc.
As reported by the Troubled Company Reporter-Europe, Lloyds sought
a GBP17-billion bailout from taxpayers after it agreed to buy HBOS
in September in a government-brokered deal to prevent the
collapse of Britain's biggest mortgage lender.
MONEY PARTNERS: Fitch Junks Ratings on Three Tranches From 'B-'
---------------------------------------------------------------
Fitch Ratings has upgraded two, affirmed 43 and downgraded three
tranches of four UK RMBS non-conforming transactions from the
Money Partners Securities Series. The agency has also revised the
Outlooks on two tranches of MPS3 to Stable from Negative,
reflecting the sufficient build-up in credit enhancement required
for the 'AA-' rating assigned to the deal's class M1a and M1b
notes.
The portfolios comprise UK non-conforming loans with significant
portions of second lien mortgages ranging from 10.9% (MPS3) to
16.1% (MPS4).
The rating affirmations of the senior and mezzanine tranches of
the first three transactions reflect that the October 2009
collateral reports showed a continued decline in the volume of
loans in arrears and outstanding repossessions, which Fitch sees
as positive for the future performance of the transactions. The
prompt sale of properties has prevented a build-up in the cost of
carry of repossessed loans and limited potential losses from house
price volatility over the last year. Fitch's main concern lies
with the second lien mortgages which are showing high loss
severities, ranging from 77.2% (MPS3) to 116.7% (MPS4) in October
2009. The loss severities realized from second lien mortgages
were expected by Fitch given the overall decline in UK house
prices since the summer of 2007. In volume terms, the losses
generated by second lien loans made up between 34.8% (MPS1) and
67.4% (MPS4) of the overall losses generated in the last quarter.
Cumulative losses range from 3.1% (MPS3) to 3.3% (MPS2) of the
initial collateral balance of these deals.
Meanwhile, the collateral report for October 2009 showed the first
signs of arrears stabilizing in MPS4, The volume of repossessed
properties, according to the Q309 collateral reports for MPS4, are
comparable to those seen in previous quarters, but the volume of
sold properties continues to increase, which is why the
transaction is still generating significant losses. At the same
time, the level of credit enhancement currently available to the
senior and mezzanine tranches of MPS4 have shown to be sufficient
to maintain the current ratings assigned.
The recent slight decline in arrears for MPS1, MPS2 and MPS3 and
the stabilization of arrears in MPS4 is also reflected in the
collection rates reported by the servicer. The payment reports
show that an increasing number of borrowers, who are more than six
months in arrears, are making some form of payment, as reflected
in the available revenue funds reported in September 2009 (for
MPS1, MPS3 and MPS4) and November 2009 (MPS2). As repossessions
have declined and borrower affordability has improved, the
utilization of reserve funds has slowed down in MPS3 and MPS4.
The reserve funds of these deals are currently at 50.6% (MPS3) and
60.8% (MPS4) of their target amounts.
At the same time, the issuer of the more seasoned transaction,
MPS1, reported a reserve fund top-up of GBP204,897, thereby
improving the credit support available to the notes. The reserve
fund in September 2009 stood at 78% of its target amount.
Following the full utilization of the further redemptions reserve
in May 2009, which was used to clear realized losses, the November
2009 payment report for MPS2 showed its first reserve fund draw of
GBP130,190. Fitch noted the possibility of reserve fund draws
occurring during rating actions taken by the agency in November
2008, which was reflected in the rating actions taken at that
time. The performance of MPS2 has been marginally better than
Fitch's expectations at the time of the last rating action, and
therefore, despite this small draw, the ratings of the outstanding
notes have been affirmed.
Fitch believes that the decline in interest rates has had a
positive impact on the performance of the four transactions in the
series. The agency believes that the deals are likely to see a
further decline in arrears and repossessions, as long as interest
rates remain at current, low levels. A hike in interest rates
could affect the performance of the deals and this has been taken
into account in the rating actions. Fitch expects interest rates
will reach 2% in 2011, at which point the deals are likely to see
an upward trend in arrears and repossessions. The more seasoned
transactions (MPS1 and MPS2) have benefited from the build-up in
credit enhancement, particularly on the senior and mezzanine
notes. However, the junior tranches remain at risk of further
rating action due to the large volume of loans in arrears, which
is why the class B2 of MPS1 and class M2 and B1 of MPS2 remain on
Negative Outlook.
The impact of any increase in interest rates is likely to be more
significant on MPS3 and MPS4, which is why Fitch has downgraded
the class B2 notes of these deals to 'CCC'. The ratings assigned
to these notes reflect Fitch's expectations of further reserve
fund draws on these deals, as well as the high volume of loans in
arrears by more than six months which, in an increasing interest
rate environment, could lead to high volumes of repossessions and,
eventually losses being realized from the sale of the underlying
properties.
The rating actions are.
Money Partners Securities 1 Plc
-- Class A2a (ISIN XS0226128329) affirmed at 'AAA'; Outlook
Stable; assigned Loss Severity Rating 'LS-3'
-- Detachable A2a-2010 Coupons (ISIN XS0226129137) affirmed at
'AAA'; Outlook Stable
-- Class A2b (ISIN XS0226129566) affirmed at 'AAA'; Outlook
Stable; assigned Loss Severity Rating 'LS-3'
-- Detachable A2b-2010 Coupons (ISIN XS0226130655) affirmed at
'AAA'; Outlook Stable
-- Class A2c (ISIN XS0226156536) affirmed at 'AAA'; Outlook
Stable; assigned Loss Severity Rating 'LS-3'
-- Detachable A2c-2010 Coupons (ISIN XS0226157187) affirmed at
'AAA'; Outlook Stable
-- Class M1 (ISIN XS0226131117) affirmed at 'AAA'; Outlook
Stable; assigned Loss Severity Rating 'LS-3'
-- Class M2a (ISIN XS0226131463) upgraded to 'AA' from 'A+';
Outlook Stable; assigned Loss Severity Rating 'LS-4'
-- Class M2b (ISIN XS0226131620) upgraded to 'AA' from 'A+';
Outlook Stable; assigned Loss Severity Rating 'LS-4'
-- Class B1 (ISIN XS0226132198) affirmed at 'BBB'; Outlook
Stable; assigned Loss Severity Rating 'LS-4'
-- Class B2 (ISIN XS0226132271) affirmed at 'BB'; Outlook
Negative; assigned Loss Severity Rating 'LS-4'
-- MERC (ISIN XS0226157427) affirmed at 'AAA'; Outlook Stable
Money Partners Securities 2 Plc
-- Class A2a (ISIN XS0236411780) affirmed at 'AAA'; Outlook
Stable; assigned Loss Severity Rating 'LS-2'
-- Detachable A2a-2011 Coupons (ISIN XS0236521968) affirmed at
'AAA'; Outlook Stable
-- Class A2c (ISIN XS0236412754) affirmed at 'AAA'; Outlook
Stable; assigned Loss Severity Rating 'LS-2'
-- Detachable A2c-2011 Coupons (ISIN XS0236528468) affirmed at
'AAA'; Outlook Stable
-- Class M1a (ISIN XS0236413307) affirmed at 'AA-'; Outlook
Stable; assigned Loss Severity Rating 'LS-4'
-- Class M1b (ISIN XS0236413489) affirmed at 'AA-'; Outlook
Stable; assigned Loss Severity Rating 'LS-4'
-- Class M2a (ISIN XS0236740501) affirmed at 'BBB'; Outlook
Negative; assigned Loss Severity Rating 'LS-3'
-- Class M2b (ISIN XS0236742036) affirmed at 'BBB'; Outlook
Negative; assigned Loss Severity Rating 'LS-3'
-- Class B1 (ISIN XS0236413646) affirmed at 'BB-'; Outlook
Negative; assigned Loss Severity Rating 'LS-4'
-- MERC (ISIN XS0237043152) affirmed at 'AAA'; Outlook Stable
Money Partners Securities 3 Plc
-- Class A2a (ISIN XS0254114712) affirmed at 'AAA'; Outlook
Stable; assigned Loss Severity Rating 'LS-2'
-- Detachable A2a-2011 Coupons (ISIN XS0254124430) affirmed at
'AAA'; Outlook Stable
-- Class A2b (ISIN XS0254121337) affirmed at 'AAA'; Outlook
Stable; assigned Loss Severity Rating 'LS-2'
-- Detachable A2b-2011 Coupons (ISIN XS0254126567) affirmed at
'AAA'; Outlook Stable
-- Class A2c (ISIN XS0254122814) affirmed at 'AAA'; Outlook
Stable; assigned Loss Severity Rating 'LS-2'
-- Detachable A2c-2011 Coupons (ISIN XS0254129314) affirmed at
'AAA'; Outlook Stable
-- Class M1a (ISIN XS0254130080) affirmed at 'AA-'; Outlook
revised to Stable from Negative; assigned Loss Severity
Rating 'LS-3'
-- Class M1b (ISIN XS0254130676) affirmed at 'AA-'; Outlook
revised to Stable from Negative; assigned Loss Severity
Rating 'LS-3'
-- Class M2a (ISIN XS0254130916) affirmed at 'BBB'; Outlook
Negative; assigned Loss Severity Rating 'LS-4'
-- Class M2b (ISIN XS0254131484) affirmed at 'BBB'; Outlook
Negative; assigned Loss Severity Rating 'LS-4'
-- Class B1a (ISIN XS0254132375) affirmed at 'BB'; Outlook
Negative; assigned Loss Severity Rating 'LS-4'
-- Class B1b (ISIN XS0254132458) affirmed at 'BB'; Outlook
Negative, assigned Loss Severity Rating 'LS-4'
-- Class B2a (ISIN XS0254132706) downgraded to 'CCC' from 'B-';
assigned Recovery Rating 'RR4'
-- Class B2b (ISIN XS0254307605) downgraded to 'CCC' from 'B-';
assigned Recovery Rating 'RR4'
-- MERC (ISIN XS0254134587) affirmed at 'AAA'; Outlook Stable
Money Partners Securities 4 Plc
-- Class A1a (ISIN XS0274950368) affirmed at 'AAA'; Outlook
Stable; assigned Loss Severity Rating 'LS-2'
-- Detachable A1a-2012 Coupons (ISIN XS0275153392) affirmed at
'AAA'; Outlook Stable
-- Class A1b (ISIN XS0274965556) affirmed at 'AAA'; Outlook
Stable; assigned Loss Severity Rating 'LS-2'
-- Detachable A1b-2012 Coupons (ISIN XS0275154796) affirmed at
'AAA'; Outlook Stable
-- Class M1a (ISIN XS0274969384) affirmed at 'AA'; Outlook
Negative; assigned Loss Severity Rating 'LS-3'
-- Class M1b (ISIN XS0274970713) affirmed at 'AA'; Outlook
Negative; assigned Loss Severity Rating 'LS-3'
-- Class M2a (ISIN XS0274972685) affirmed at 'BBB'; Outlook
Negative; assigned Loss Severity Rating 'LS-4'
-- Class M2b (ISIN XS0274974111) affirmed at 'BBB'; Outlook
Negative; assigned Loss Severity Rating 'LS-4'
-- Class B1a (ISIN XS0274978450) affirmed at 'BB'; Outlook
Negative; assigned Loss Severity Rating 'LS-5'
-- Class B1b (ISIN XS0274979185) affirmed at 'BB'; Outlook
Negative; assigned Loss Severity Rating 'LS-5'
-- Class B2 (ISIN XS0274980191) downgraded to 'CCC' from 'B-';
assigned Recovery Rating 'RR4'
-- MERC (ISIN XS0275207156) affirmed at 'AAA'; Outlook Stable
ROYAL BANK: In Debt Talks with Dubai World
------------------------------------------
Helen Power and Hugh Tomlinson at The Times report that Dubai
World's six biggest lending banks have begun talks with the group
before a crunch creditors' meeting that is scheduled for
December 21.
The Times relates four British-listed banks -- HSBC, Royal Bank of
Scotland, Lloyds Banking Group and Standard Chartered -- and two
local lenders -- Emirates National Bank of Dubai and Abu Dhabi
Commercial Bank -- met NM Rothschild and Deloitte, Dubai World's
advisers, in the Gulf State Monday.
According to The Times, the banks tried to ascertain whether Dubai
World would make interest payments due on the bonds of Nakheel
PJSC, its property subsidiary, next Monday. The leading banks,
which are forming a steering committee to represent all 90 of
Dubai World's bank lenders, also asked for detailed financial
information to help them to revalue the company in the event of a
default, The Times says.
The Times discloses insiders close to the talks said that Monday's
meeting had been exploratory but would establish the likely
direction of future negotiations.
6-Month Standstill
The Troubled Company Reporter, citing The Wall Street Journal and
Bloomberg News, ran a story about Dubai World seeking a six-month
standstill on its debt obligations. In a statement obtained by
the Journal and Bloomberg, the government of Dubai said it would
restructure Dubai World and has appointed Deloitte LLP to lead the
restructuring effort, naming an executive at the consultancy as
the group's "chief restructuring officer."
The standstill will immediately affect US$3.52 billion of Islamic
bonds due December 14 from the Company's property unit Nakheel.
Bloomberg News' Arif Sharif and Laura Cochrane said Dubai World
has US$59 billion in liabilities. Bloomberg said Dubai
accumulated US$80 billion of debt by expanding in banking, real
estate and transportation before credit markets seized up last
year.
The Journal said Standard & Poor's in an October report estimated
Dubai World could be responsible for as much as 50% of Dubai's
total government and corporate debt load of some US$80 billion to
US$90 billion.
Large Exposure
As reported by the Troubled Company Reporter-Europe on Dec. 1,
2009, The Wall Street Journal's Chip Cummins, Dana Cimilluca and
Sara Schaefer Munoz, citing a person familiar with the matter,
said that U.K.'s Royal Bank of Scotland Group PLC, HSBC Holdings
PLC, Barclays PLC, Lloyds Banking Group PLC, Standard Chartered
PLC and ING Groep NV of the Netherlands, are among the
international banks that have large exposure in Dubai World.
RBS has lent roughly US$1 billion to Dubai World, another person
said, according to the Journal. Sources also told the Journal
Barclays's exposure to Dubai World is roughly US$200 million, and
that exposure is effectively hedged.
David Robertson at The (U.K) Times reported Credit Suisse has
estimated that European banks could have EUR40 billion
(GBP36 billion) in loans to Dubai and much of this could be at
risk if the Gulf emirate defaults.
The Journal, citing people familiar with the matter, said the
banks with the greatest exposure to Dubai World are Abu Dhabi
Commercial Bank and Emirate NBD PJSC, people familiar with the
matter said.
Dow Jones Newswires' Margot Patrick related that a report by the
Emirates Banks Association said the top eight foreign banks in the
United Arab Emirates by lending volume -- HSBC, Standard
Chartered, Barclays, HSBC, Royal Bank of Scotland's ABN Amro,
Citigroup Inc., BNP Paribas SA, Lloyds and Credit Agricole SA's
Calyon, -- extended about US$36 billion in loans in 2008
throughout the federation, without breaking down the loans by
emirate or type of borrower.
About Dubai World
Dubai World -- http://www.dubaiworld.ae/-- is Dubai's flag bearer
in global investments. As a holding company it operates a highly
diversified spectrum of industrial segments and plays a major role
in the emirate's rapid economic growth. Dubai World's investment
spans four strategic growth areas of 21st Century commerce namely,
Transport & Logistics, Drydocks & Maritime, Urban Development and
Investment & Financial Services. Dubai World's portfolio includes
DP World, one of the largest marine terminal operators in the
world; Drydocks World & Dubai Maritime City designed to turn Dubai
into a major ship-building and maritime hub; Economic Zones World
which operates several free zones around the world including Jafza
and TechnoPark in Dubai; Nakheel the property developer behind
iconic projects such as The Palm Islands and The World among
others; Limitless the international real estate master planner
with current development projects in various parts of the world;
Leisurecorp a global sports and leisure investment group,
reshaping the industry by unlocking value across investment,
development and brand opportunities; Dubai World Africa which
oversees the regional development and portfolio of investments in
the African continent; and Istithmar World, the group's investment
arm that has a global footprint in finance, capital, leisure,
aviation and various other business ventures.
The Sun Never Sets on Dubai World, its Web site says.
About RBS
The Royal Bank of Scotland Group plc (NYSE:RBS) --
http://www.rbs.com/-- is a holding company of The Royal Bank of
Scotland plc (Royal Bank) and National Westminster Bank Plc
(NatWest), which are United Kingdom-based clearing banks. The
company's activities are organized in six business divisions:
Corporate Markets (comprising Global Banking and Markets and
United Kingdom Corporate Banking), Retail Markets (comprising
Retail and Wealth Management), Ulster Bank, Citizens, RBS
Insurance and Manufacturing. On October 17, 2007, RFS Holdings
B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V.,
Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and
controlled by RBS, completed the acquisition of ABN AMRO Holding
N.V. (ABN AMRO). In July 2008, the company disposed its entire
interest in Global Voice Group Ltd.
* * *
As reported by the Troubled Company Reporter-Europe on Nov. 9,
2009, Fitch Ratings placed The Royal Bank of Scotland Group's (RBS
Group) and The Royal Bank of Scotland's Individual Ratings of 'E'
on Rating Watch Positive.
The rating actions follow the recent announcement of an additional
GBP25.5 billion capital injection by end-2009 from the UK
government, confirmation of the group's participation in the UK
government's asset protection scheme and the divestitures required
by the European Commission for approving state aid.
TATA STEEL: S&P Affirms Corporate Credit Rating at 'B+'
-------------------------------------------------------
Standard & Poor's Ratings Services said that it had affirmed its
'B+' corporate credit rating on Tata Steel U.K. Ltd. The outlook
is negative.
S&P also affirmed its recovery rating of '1' on the
GBP3.67 billion senior secured debt issued by TSUK and subsidiary
Corus Nederland B.V., indicating S&P's expectations of very high
(90%-100%) recovery in the event of a payment default. This
resulted in an affirmation of the issue rating on this debt at
'BB', two notches above the corporate credit rating, and its
removal from CreditWatch, where it was placed with negative
implications, pending a review of S&P's recovery analysis.
"The affirmation of the corporate credit rating reflects S&P's
expectation of a marked improvement in TSUK's operating
performance for the quarter ending Dec. 31, 2009, followed by a
gradual improvement in the near to medium term," said Standard &
Poor's credit analyst, Suzanne Smith, managing director, Corporate
& Government Ratings, South and Southeast Asia. It is also based
on S&P's expectation that parent Tata Steel Ltd. (BB-/Negative/--)
would continue to support TSUK in case of any liquidity
requirements or to help manage any potential covenant pressure.
TSUK's operating performance over the past few quarters has been
very weak mainly because of poor capacity utilization, lower steel
prices, and high-cost raw material contracts executed prior to the
downturn. S&P expects TSUK's operating performance to improve
markedly with a positive EBITDA in the quarter ending Dec. 31,
2009. However, S&P believes TSUK's improvement in the near to
medium term is expected to be slow because of (1) slow economic
recovery forecast for Europe; and (2) the lack of raw material
security.
The current rating reflects S&P's expectation that the improvement
in TSUK's operating performance would result in better financial
metrics, which are currently below S&P's expectation for the
rating category.
In S&P's view, TSUK's liquidity is adequate. However, the
company's debt repayment schedule will increase, exposing it to
refinancing risk. Also, TSUK's bank facilities contain financial
covenants. However, S&P expects parent Tata Steel to support TSUK
if there is any pressure on covenants or refinancing risk.
"Our recovery expectations are based on the favorable insolvency
regimes in which TSUK operates, a relatively strong security
package covering all of the U.K. assets, as well as a share pledge
on the Dutch business," said Standard & Poor's credit analyst
Yasmin Wirjawan.
The negative rating outlook on TSUK is driven by the current weak
operating environment and the impact on the company's cash flow
protection measures. This could result in TSUK again facing
pressure on its covenants for the quarter ending March 31, 2010,
despite gradually improving performance.
*********
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 * * *