/raid1/www/Hosts/bankrupt/TCREUR_Public/091210.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
E U R O P E
Thursday, December 10, 2009, Vol. 10, No. 244
Headlines
A U S T R I A
SAHIN HANDEL: Claims Filing Deadline is December 29
SAUBERMANN GMBH: Claims Filing Deadline is December 29
B E L G I U M
DEXIA SA: Mulls Sale of Wealth Management Unit
FORTFINLUX SA: Fitch Affirms Hybrid Capital Instruments at 'BB'
F R A N C E
REXEL SA: S&P Assigns 'B+' Long-Term Corporate Credit Rating
G E R M A N Y
ESCADA AG: US Unit's Lease Decision Period Extended to March 15
ESCADA AG: US Unit's Plan Exclusivity Extended to February 12
LANDESBANK BADEN: Headquarters Raided in Mortgage Probe
ORION CABLE: To Be Put Up for Sale by Creditors, FAZ Says
VULCAN LTD: Fitch Junks Ratings on Four Classes of Notes
WESTLB AG: Moody's Gives Developing Outlook on 'E+' Bank Rating
H U N G A R Y
INVITEL HOLDINGS: Soliciting Consents for Magyar's Senior Notes
I R E L A N D
ALLIED IRISH: Fitch Keeps 'D/E' Individual Rating
ANGLO IRISH: Fitch Keeps Junk Rating on Tire 1 & Upper Tier 2
EBS BUILDING: Fitch Puts 'E' Individual Rating on Watch Positive
IRISH NATIONWIDE: Fitch Puts E Individual Rating on Watch Positive
MERCATOR CLO I: Moody's Cuts Rating on Class B-2 Notes to 'Ca'
MERCATOR CLO II: Moody's Cuts Rating on Class B-2 Notes to 'Ca'
MERCATOR CLO III: Moody's Cuts Rating on Class B-2 Notes to 'Ca'
SMART TELECOM: To Exit Examinership Tomorrow
I T A L Y
WIND ACQUISITION: Fitch Assigns 'B' Rating on EUR500 Mil. Notes
K A Z A K H S T A N
BEU LLP: Creditors Must File Claims by December 23
BTA BANK: Reaches Compromise with Bondholders on Restructuring
GIDEON INVEST: Creditors Must File Claims by December 23
HALYK BANK: Mulls US$500 Million Eurobond Sale
INTER VAL: Creditors Must File Claims by December 23
LIFERANT IT: Creditors Must File Claims by December 23
MMC TRANS: Creditors Must File Claims by December 23
NORD INVEST: Creditors Must File Claims by December 23
RAHAT PRIANT: Creditors Must File Claims by December 23
SOLITON ETT: Creditors Must File Claims by December 23
SPETS-TECH-1: Creditors Must File Claims by December 23
UBS LTD: Creditors Must File Claims by December 23
K Y R G Y Z S T A N
AMIS DESIGN: Creditors Must File Claims by January 6
HIM TRADE: Creditors Must File Claims by January 6
L A T V I A
* LATVIA: At Risk of Negative Ratings Actions, Fitch Says
L I T H U A N I A
* LITHUANIA: At Risk of Negative Rating Actions, Fitch Says
L U X E M B O U R G
GSC EUROPEAN: Moody's Junks Ratings on Four Classes of Notes
N E T H E R L A N D S
LEOPARD CLO: Moody's Cuts Rating on Class E Notes to 'Caa2'
LYONDELL CHEMICAL: Has Nod to Amend Euro Securitization Program
R U S S I A
AVTOVAZ OAO: Renault to Take Over Parts Purchasing Via New Unit
CARGO AUTOMOBILE: Creditors Must File Claims by December 13
CHEBOKSARSKAYA SEWING: Creditors Must File Claims by December 17
ENEL OJSC: Moody's Affirms Corporate Family Rating at 'Ba3'
NOMOS CAPITAL: Moody's Assigns 'Ba3' Rating on Upcoming Loan
SPETS-TEKH-STROY: Creditors Must File Claims by December 13
VOZNESENSKIY CONSTRUCTION: Creditors Must File Claims by Dec. 13
URAL-SIB-STROY: Creditors Must File Claims by December 13
URAL-STROY-PROEKT: Creditors Must File Claims by December 13
S W E D E N
GENERAL MOTORS: Saab Sells Unused Production Lines to China's BAIC
S W I T Z E R L A N D
COMPOSITRON AG: Claims Filing Deadline is December 14
FOGS DIENSTLEISTUNGEN: Claims Filing Deadline is December 14
GUARDA LAI: Claims Filing Deadline is December 14
WILLING CASEIDE: Claims Filing Deadline is December 17
U N I T E D K I N G D O M
COMMONWEALTH BIOTECH: Posts US$633,200 Net Loss in Q3 2009
COVENTRY AIRPORT: Shut Down by Owner on Financial Difficulties
COVENTRY RFC: Placed Into Administration
EUROMASTR PLC: S&P Affirms Rating on Class E Notes at 'CCC'
KAUPTHING SINGER: To Pay 20 Pence on the Pound to Creditors
LEEK FINANCE: Fitch Affirms Ratings on Two Classes of Notes at B+
LEHMAN BROTHERS: Proposes Plan to Unfreeze US$11B in UK Assets
NIPSON DIGITAL: MCR Appointed Administrator
NORTHERN ROCK: Shareholders Won't Be Eligible for Compensation
SLP ENGINEERING: Three Customers to Keep Contracts
WORKSPACE GLEBE: Workspace Group Acquires Half of Portfolio
X X X X X X X X
* EUROPE: Corporate Defaults to Continue Until 2011, S&P Says
* Upcoming Meetings, Conferences and Seminars
*********
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A U S T R I A
=============
SAHIN HANDEL: Claims Filing Deadline is December 29
---------------------------------------------------
Creditors of Sahin Handel GmbH have until December 29, 2009, to
file their proofs of claim.
A court hearing for examination of the claims has been scheduled
for January 12, 2010 at 13:15 p.m.
For further information, contact the company's administrator:
Dr. Andrea Simma
Favoritenstrasse 22/12a
1040 Vienna
Austria
Tel: 504 64 08
Fax: 504 64 08 22
E-mail: simma@mitrecht.com
SAUBERMANN GMBH: Claims Filing Deadline is December 29
------------------------------------------------------
Creditors of Saubermann GmbH have until December 29, 2009, to file
their proofs of claim.
A court hearing for examination of the claims has been scheduled
for January 12, 2010 at 13:45 p.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
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B E L G I U M
=============
DEXIA SA: Mulls Sale of Wealth Management Unit
----------------------------------------------
Dexia SA is reviewing its wealth management unit for a possible
sale, Jacqueline Simmons and Warren Giles at Bloomberg News
report, citing people with knowledge of the matter.
According to Bloomberg, company reports show the Luxembourg-based
BIL unit has EUR15 billion (US$22 billion) in private-banking
assets.
Bloomberg relates the people, who declined to be identified
because the matter is private, said Dexia may decide whether to
sell after it completes talks with the European Commission on a
reorganization plan.
Dexia, based in Brussels and Paris, is in discussions over a
reorganization plan with the European Commission. In October, the
EU authorized Belgium, France and Luxembourg to extend guarantees
on the company's debt until February, Bloomberg notes.
About Dexia SA
Dexia SA -- http://www.dexia.com/-- is a Belgian bank specialized
in retail banking and local public finance. The Bank offers a
range of banking services for individual customers, small and
medium-sized enterprises and institutional clients. It has four
divisions: Asset Management, Personal Financial Services, Treasury
and Financial Markets, and Investor Services. The Asset
Management division offers products ranging from traditional and
alternative funds to socially responsible investments. The
Personal Financial Services segment focuses on banking and
insurance products, including both life and non-life insurance
products. Through its Treasury and Financial Markets division,
Dexia is present in the capital markets and provides support to
the entire Group. The Investor Services segment offers various
services to shareholders, such as fund and pension administration.
Through its subsidiaries, Dexia SA is active in over 30 countries,
including Belgium, Luxembourg, Slovakia, Turkey, France, Australia
and Japan.
FORTFINLUX SA: Fitch Affirms Hybrid Capital Instruments at 'BB'
---------------------------------------------------------------
Fitch Ratings has affirmed AG Insurance's Insurer Financial
Strength rating at 'A+' and Long-term Issuer Default Rating at
'A'. Fitch has also affirmed the Long- and Short-term IDRs of the
five Fortis holding companies: Fortis SA/NV, Fortis N.V., Fortis
Brussels, Fortis Utrecht and Fortis Insurance NV., at 'BBB+' and
'F2' respectively. The Outlooks on the IFS ratings and on all the
Long-term IDRs are revised to Negative from Stable.
Milleniumbcp-Fortis operating entities and Fortis Insurance
Company (Asia) Ltd ratings are unaffected by the rating actions.
The change in Outlook to Negative reflects the concentration risk
of AG Insurance's investment portfolio to certain Euro-zone
sovereign issuers, particularly Greece, whose sovereign IDR was
downgraded by Fitch to 'BBB+' from 'A-'. However, the agency
understands that the company's management will closely monitor its
exposure to Greece.
AG Insurance's ratings continue to reflect its good profitability,
strong capital adequacy and leading business position in Belgium.
The company reported a net profit of EUR344 million for the first
9 months of 2009 compared with a loss of EUR32 million for the
same period on 2008. AG Insurance's consolidated shareholder's
funds increased to EUR4.1bn at end-September 2009 from
EUR2.8 billion at year-end 2008, partly due to investment
revaluations as well as the retention of earnings. The company's
risk-adjusted capital adequacy remained strong, mainly reflecting
a low exposure to the most volatile asset classes. At end-
September 2009, the group's regulatory solvency ratio amounted to
209% of the required minimum. Fitch expects the solvency of AG
Insurance to remain strong and that no exceptional dividend will
be paid to the holding companies in the foreseeable future.
In addition, the company has maintained its strong competitive
position in Belgium, as reflected by gross written premiums of
EUR5.1 billion for the first 9 months of 2009, representing a 3%
increase compared with the same period of 2008. This reflects a
better performance than for the Belgian market as a whole, which
has suffered from lower inflows, especially in life insurance.
The Outlooks of the Fortis holding companies' Long-term IDRs were
revised to Negative as a consequence of the Outlook change of AG
Insurance to Negative. The ratings of the Fortis holding
companies continue to reflect the fact that they have more cash
than needed to repay their debt, thus there is no double leverage.
Nevertheless, Fitch continues to believe that the holding
companies face a litigation risk regarding the restructuring of
the Fortis group, but the agency does not expect potential payouts
to jeopardize the group's solvency.
The scope of the Fortis group changed significantly following the
dismantlement of the group in September/October 2008. The holding
companies now hold two main entities: AG Insurance (75% stake) and
Fortis Insurance International, which holds a number of stakes in
insurance companies located in the UK, Continental Europe and
Asia. AG Insurance is the largest Belgian life insurer with a 26%
market share and the second-largest non-life insurer with a 15%
market share.
The ratings actions are:
AG Insurance
-- IFS rating affirmed at 'A+'; Outlook changed to Negative from
Stable
-- Long-term IDR affirmed at 'A'; Outlook changed to Negative
from Stable
Fortis SA/NV
-- Long-term IDR affirmed at 'BBB+'; Outlook changed to Negative
from Stable
-- Short-term IDR affirmed at 'F2'
Fortis N.V.
-- Long-term IDR affirmed at 'BBB+'; Outlook changed to Negative
from Stable
-- Short-term IDR affirmed at 'F2'
Fortis Brussels
-- Long-term IDR affirmed at 'BBB+'; Outlook changed to Negative
from Stable
-- Short-term IDR affirmed at 'F2'
Fortis Utrecht
-- Long-term IDR affirmed at 'BBB+'; Outlook changed to Negative
from Stable
-- Short-term IDR affirmed at 'F2'
Fortis Insurance N.V.
-- Long-term IDR affirmed at 'BBB+'; Outlook changed to Negative
from Stable
-- Short-term IDR affirmed at 'F2'
Fortis Finance N.V.
-- Senior unsecured affirmed at 'BBB'
-- Subordinated debt affirmed at 'BBB-'
-- Commercial paper affirmed at 'F2'
Fortis Hybrid Financing
-- Hybrid capital instruments affirmed at 'BBB-'
Fortfinlux SA
-- Hybrid capital instruments affirmed at 'BB'
===========
F R A N C E
===========
REXEL SA: S&P Assigns 'B+' Long-Term Corporate Credit Rating
------------------------------------------------------------
Standard & Poor's Ratings Services said that it has assigned its
'B+' long-term corporate credit rating on Rexel S.A. The outlook
is stable. S&P also assigned a 'B+' rating to Rexel's proposed
EUR500 million senior unsecured notes due 2016. The recovery
rating on these bonds is '4', indicating S&P's expectation of
average (30%-50%) recovery in the event of a payment default.
"The corporate credit rating reflects what S&P sees as Rexel's
highly leveraged financial profile and exposure to the downturn in
the construction and industrial markets," said Standard & Poor's
credit analyst Xavier Buffon.
"These negatives are tempered, in S&P's opinion, by the group's
solid positions in the low- and ultralow voltage electrical
distribution market, as well as its diverse customer, operating,
and geographic base, large scale, and continuously positive free
cash flow generation and aggressive cost management," Mr. Buffon
said.
S&P's highly leveraged financial risk assessment reflects its view
of the company's relative debt leverage, which S&P considers to be
high, that stems from the fully debt-financed EUR3.4 billion (debt
included) acquisition of Hagemeyer in early 2008. This has been
aggravated, S&P believe, despite absolute debt reduction this
year, by a sharp contraction of funds from operations on the back
of the construction slump.
S&P classifies the group's business risk profile as "satisfactory"
and underpinned by, in its view: its solid market positions in
electrical distribution markets; large size and broad diversity of
end-markets, geographic areas, products, and customers; aggressive
cost management and minimal asset intensity; as well as likely
long-term positive growth in the global industry, given increasing
electricity penetration and new energy savings applications, and
significant presence in the less volatile maintenance and
replacement market. S&P see these business strengths as mitigated
by a large exposure to cyclical construction and industrial end-
markets; weak margins in still fragmented markets, such as the
U.S., Germany, and Spain, as well as in the U.K. given Hagemeyer's
structurally lower margins historically. Last, S&P considers
earnings to be exposed to fluctuations in copper prices.
"The stable outlook reflects S&P's belief that the group's solid
positions, recent cost measures, and consistent positive free cash
flow generation will likely provide good resistance in 2010,
despite some likely further negative market developments, and help
restore stronger credit metrics after this year's sharp
deterioration," Mr. Buffon said.
S&P could revise the outlook to positive if S&P arrive at the
expectation that key metrics are likely to rebound more
significantly in 2010 than currently S&P anticipate. In S&P's
view, this would signal an even further improvement in metrics in
2011 and thereafter, assuming management remains focused on debt
deleveraging. Conversely, if S&P sees that key markets weaken
significantly more next year than S&P currently anticipate and if
Rexel therefore needs to incur further material restructuring
costs, or if liquidity were to deteriorate, S&P could revise the
outlook to negative.
=============
G E R M A N Y
=============
ESCADA AG: US Unit's Lease Decision Period Extended to March 15
---------------------------------------------------------------
Escada (USA) Inc. won the Bankruptcy Court's approval for an
extension of the period within which it may assume or reject
unexpired leases of non-residential real property through
March 15, 2010.
According to the Debtor, the Lease Decision Period Extension will
allow it to preserve and maintain the value of its store leases,
which are among its most valuable assets. Absent the extension,
the Debtor risks losing numerous valuable leases and derailing a
sale process which will result in a significant loss of value to
its estate.
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)
ESCADA AG: US Unit's Plan Exclusivity Extended to February 12
-------------------------------------------------------------
Judge Stuart M. Bernstein of the United States Bankruptcy Court
for the Southern District of New York has extended the period
within which Escada (USA) Inc. may file a Chapter 11 plan of
reorganization, through and including February 12, 2010. The
Court has also allowed the Debtor to solicit acceptances for that
plan through April 12, 2010.
The Debtor had noted that the complexities of its Chapter
11 case prevented it from crafting a meaningful reorganization
plan, citing time-consuming transactions involved in the Escada
AG German insolvency proceeding and subsequent sale negotiations.
The extension of the Exclusive Periods is without prejudice to
the Debtor's right to make further requests for extension
pursuant to Section 1121(d) of the Bankruptcy Code, according to
the Court.
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)
LANDESBANK BADEN: Headquarters Raided in Mortgage Probe
-------------------------------------------------------
Karin Matussek and Jann Bettinga at Bloomberg News report that
Landesbank Baden-Wuerttemberg's headquarters in Stuttgart was
raided Monday as part of a criminal probe into whether seven
current and former executives improperly approved investments in
U.S. mortgage bonds.
Bloomberg relates Stuttgart prosecutors and police said in an
e-mailed statement 10 private homes were also searched.
Bloomberg, citing the statement, says the probe was opened in
November after about one year of preliminary investigations into
LBBW's losses. No suspects were identified, Bloomberg notes.
"Starting at the end of 2006, the suspects may have wrongfully
allowed or not stopped investments of a three-digit million-euro
amount in highly risky financial transactions even though the U.S.
mortgage bond market was about to collapse and investment in such
securities held an incalculable risk," Bloomberg quoted the
investigators as saying in the statement.
Bloomberg recalls LBBW's owners, including the state of
Baden-Wuerttemberg, agreed in April to inject EUR5 billion
(US$7.4 billion) in capital after the lender reported a 2008 loss
of EUR2.1 billion because of writedowns on the value of securities
and credit derivatives. The bank in October forecast a
"substantial loss" for 2009 and announced it would shed about
2,500 jobs by 2013 and close or divest subsidiaries in exchange
for European Union approval for the bailout, Bloomberg recounts.
Headquartered in Stuttgart, Landesbank Baden-Wuerttemberg --
http://www.lbbw.de/-- acts as the central bank to savings banks
in the German state of Baden-Wuerttemberg. The bank handles large
transactions (wholesale banking, financial securities, foreign
exchange) too costly for the smaller state savings banks. It also
provides traditional retail banking, real estate and commercial
loans, and portfolio management services. The bank has
approximately 230 branches. Through subsidiaries such as Sud
Private Equity, SudFactoring, and SudLeasing Immobilien, among
others, LBBW also provides leasing, factoring, venture capital,
and equity financing services.
ORION CABLE: To Be Put Up for Sale by Creditors, FAZ Says
---------------------------------------------------------
Cornelius Rahn at Bloomberg News, citing Frankfurter Allgemeine
Zeitung, reports that Orion Cable GmbH is to be auctioned off by
its creditors Bank of Ireland, York Capital Management LP and
Golden Tree Insite Partners LP,
According to Bloomberg, the newspaper said the transaction, which
may be completed within four weeks, will be conducted by ING Groep
NV.
Orion has debts totaling EUR1.9 billion (US$2.8 billion),
Bloomberg discloses citing FAZ.
Orion Cable GmbH is a German cable television provider. The
company is owned by the Luxembourg investment group Escaline Sarl.
VULCAN LTD: Fitch Junks Ratings on Four Classes of Notes
--------------------------------------------------------
Fitch Ratings has affirmed Vulcan (European Loan Conduit No. 28)
Ltd's cash-collateralized class X notes and downgraded all other
notes:
-- EUR770.4m class A (XS0314738963): downgraded to 'BBB' from
'AAA'; Outlook Negative
-- EUR0.1m class X (XS0314739342): affirmed at 'AAA'; Outlook
Stable
-- EUR20.6m class B (XS0314739938): downgraded to 'BBB-' from
'AAA'; Outlook Negative
-- EUR73.4m class C (XS0314740431): downgraded to 'B' from 'AA';
Outlook Negative
-- EUR75.2m class D (XS0314740944): downgraded to 'CCC' from
'A'; assigned Recovery Rating 'RR4'
-- EUR38m class E (XS0314741595): downgraded to 'CC' from 'BBB';
assigned Recovery Rating 'RR6'
-- EUR3m class F (XS0314742056): downgraded to 'C' from 'BBB';
assigned Recovery Rating 'RR6'
-- EUR3m class G (XS0314742213): downgraded to 'C' from 'BB';
assigned Recovery Rating 'RR6'
The downgrades reflect ongoing deterioration in continental
European property market conditions, which has weakened the
creditworthiness of all the loans securitized in this transaction.
Based on the currently reported valuations (the collateral for
five of the loans has been re-valued since closing), Fitch
estimates a weighted-average market value decline of 29%. The MVD
increases to 35% when comparing against the values reported at
closing; the largest loan in the pool, the Tishman German Office
Portfolio loan (36.4% of the current balance), is particularly
affected with a MVD of 49% against the valuation at closing.
The Tishman German Office Portfolio loan has been on the servicer
watchlist since the February 2008 interest payment date due to a
breach of its 1.15x interest coverage ratio dividend trap
covenant. Following continued income deterioration, the loan was
transferred to special servicing in May 2009 due to a payment
default on both the securitized A- note and the un-securitized B-
note which, to date, has resulted in cumulative servicer advances
of EUR7.04m and interest shortfalls on the class F and G notes.
At the most recent IPD in November 2009, the loan reported a whole
loan ICR of 0.72x (compared to 1x at cut-off) and a A-note ICR of
1.03x (1.5x at cut-off). The collateral consists of eight office
properties located in west Germany, the majority of which are
located in Frankfurt (52% by MV). It is currently approximately
22% vacant, up from 20% at closing, with vacancy rates ranging
between 3% and 50% by property. Fitch expects the vacancy rate to
continue to increase, as leases accounting for 15% of the in-place
rental income are scheduled to either break or expire during the
course of 2010. This weak income profile, combined with outward
yield movements, results in a Fitch loan-to-value ratio (LTV) of
124% on the A-note, compared to a reported LTV of 86% based on a
March 2009 re-valuation.
The special servicer (Morgan Stanley Mortgage Servicing Limited,
rated 'CPS2 DEU) has expressed its intention to finalize a loan
restructuring by the expiry of the standstill period on 20
December. To date, the standstill agreement has been extended
five times since June 2009 to allow MSMS to negotiate with the
relevant parties. Fitch understands that discussions on the
potential restructuring are still ongoing; however, details have
not yet been published. Fitch will continue to closely monitor
the progress of the loan restructuring along with any further
portfolio migration.
Two additional loans comprising 9.1% of the portfolio balance are
currently on the servicer's watchlist. The Guardian Bonn
Rochusstrasse loan (0.4% of the portfolio) has been affected by a
major tenant vacating its space, which has brought vacancy on the
previously fully occupied collateral to 44%. The Babcock French
Portfolio loan (8.6%) is watchlisted due to the administration of
the borrower's parent company; however, this has not affected the
performance of the loan. Furthermore, the Beacon Doublon Paris
(7.4%) and Inovalis Eboue (2.6%) loans remain on the servicer's
watchlist for monitoring purposes due to past ICR dividend trap
trigger breaches.
European Loan Conduit No. 28 closed in August 2007 and was
originally the securitization of 15 commercial mortgage loans
originated by Morgan Stanley Bank International Limited. The five
largest remaining loans account for 74% of the outstanding loan
balance.
WESTLB AG: Moody's Gives Developing Outlook on 'E+' Bank Rating
---------------------------------------------------------------
Moody's Investors Service placed the A2 senior unsecured debt and
deposit ratings and A3 subordinated debt ratings of WestLB AG on
review for possible downgrade. Moody's review will focus on the
impact of WestLB's changing business profile and the likelihood of
a gradual decline in its systemic relevance after the completion
of the "bad bank" structure in April 2010. These developments may
trigger a downward revision of the rating agency's external
support assumptions and a slowly deteriorating probability of
support from the bank's current owners over the next few years.
At the same time, Moody's affirmed WestLB's Prime-1 short-term
ratings and changed the outlook on its E+ unsupported bank
financial strength rating (BFSR, which maps directly to a B2
baseline credit assessment, BCA) to "developing" from "negative".
Additionally, the Caa1 rating on WestLB's Tier 1 hybrid capital
securities (silent participations/"Stille Einlagen") and the B3
rating on its Tier 2 junior subordinated debt ("Genussscheine")
were also affirmed.
Concurrently, Moody's placed on review for possible downgrade the
A2 senior debt and deposit ratings of WestLB Covered Bond Bank
plc, Dublin (WestLB CBB), as the bank's ratings are aligned with
those of its parent bank, based on an unconditional guarantee from
WestLB that covers all of the subsidiary's obligations.
At the same time, Moody's affirmed the Prime-1 short-term ratings
of WestLB and WestLB CBB. West LB's Aa1 rating for obligations
that qualify for the grandfathering of "Gewaehrtraegerhaftung" (a
guarantee obligation) were unaffected by the rating action.
Review to Focus on Gradually Changing Support Parameters
Moody's rating action follows the recent decision of WestLB's
owners to support a bad bank solution for EUR85 billion of
WestLB's non-core assets and exposures, which requires substantial
commitments from the owners to free the bank from all related
risks. While the short-term ratings have been affirmed following
this decision, Moody's review will primarily focus on the
probability of future support from the current owners and co-
operative support, as both potential sources of external
assistance may not be available for renewed support actions in the
medium term, should they be required.
"We fully recognize that WestLB will remain in the hands of public
sector owners for the time being and that the government's
Financial Market Stabilisation Funds (SoFFIN) is now available to
support the bank at this challenging time," says Katharina Barten,
a Vice President and senior analyst for WestLB Group at Moody's in
Frankfurt. "However, at the current B2 intrinsic strength rating
level, WestLB enjoys a substantial debt rating uplift of nine
notches. Moody's believes that systemic support in particular
will gradually reduce over time and, thus, the amount of uplift
the long-term ratings receive will have to be revisited," adds Ms.
Barten.
Basis For The Review:
A Roadmap for a Gradual Reduction in Systemic Support
Moody's believes that, in a post-crisis situation with more normal
market conditions and a potentially better capitalized banking
system, single banks in distress may be less likely to receive
support than in the past. Ultimately, this will lead to downward
rating pressure, unless the banks are able to offset this
reduction in systemic support by strengthening their levels of
stand-alone financial strength and exerting upward pressure on
their BFSRs.
Over the next few quarters Moody's will carefully monitor the
stand-alone financial profiles of rated banks and reassess the
systemic relevance of the institutions. Accordingly, BFSRs will
be revisited and any improvements taken into account with
appropriate ratings actions. Such reviews would affect not only
WestLB, but also other banks that currently enjoy material rating
uplifts based on high probabilities of systemic support.
With such a roadmap, Moody's seeks to take account of its
expectation that systemic support is unlikely to quickly fade in
the short term and that most banks should have sufficient time to
rebuild (or further improve) their levels of financial strength
and to re-establish convincing business models with competitive
advantages. Thus, for many institutions, rating stability can be
maintained.
Review of Debt Ratings Reflects Limited Potential
for WestLB's BFSR to Improve
WestLB's BFSR remains constrained, although Moody's understands
that the bank has shown positive momentum to improve its financial
and risk profile and that senior management will strive to achieve
further improvements. An important step has been taken by
creating a sizeable bad bank that enables WestLB to offload a
large proportion of its non-core assets and activities. Moody's
also recognizes that the bank is improving its risk management,
reducing its market risk and working down certain synthetic
positions, all of which may eventually result in positive pressure
on the BFSR over time. However, at this stage, several factors
(and concerns) are still constraining upward rating pressure, the
most important ones being:
(i) a worsening of the bank's efficiency levels as revenues
decline significantly with the transfer of assets into the
bad bank, while further cost cutting will take some time;
(ii) continued earnings volatility given the bank's high
reliance on investment banking profits and modest prospects
for the bank's ability to turn around those segments that
generate stable revenues but inadequate returns; and
(iii) a potentially extended period of challenging market
conditions for WestLB's specialized finance and investment
banking activities.
Given these constraints, there are uncertainties about the
direction of movement in WestLB's BSFR. Nonetheless, if the BFSR
were to move upwards, Moody's believes that this would likely be
limited to only a few notches. Moreover, the rating agency
cautions that positive rating migration of the BFSR may not fully
offset the expected gradual decline in external support. The
rating action reflects this view.
Developing Outlook on E+ BFSR Due to Continued Uncertainties
Moody's changed the outlook on the E+ BFSR to developing from
negative to reflect the anticipated benefits of the bad bank
solution, but also the ongoing uncertainties in terms of any
improvement to WestLB's stand-alone profile. Moreover, the
developing outlook reflects the uncertainty regarding whether
WestLB will be successful in selling several subsidiaries at or
near book value, in particular Westdeutsche ImmobilienBank AG,
Mainz (unrated), as, even after the creation of the bad bank,
WestLB will need to divest significant bank assets and
participations to comply with the European Commission's far-
reaching compensation measures for state aid.
Summary of Ratings and Rating Actions: Westlb
-- A2 rating for senior unsecured debt and deposits: on review
for downgrade
-- A3 rating for senior subordinated debt: on review for
downgrade
-- Prime-1 short term rating: affirmed
-- E+ BFSR (B2 BCA): affirmed, outlook changed to developing
from negative
-- Aa1 rating for grandfathered obligations, stable outlook:
unaffected
-- B3 rating for profit participation rights (Genussscheine),
negative outlook: affirmed
-- Caa1 rating for silent participations issued by Hybrid
Capital Funding I and II, negative outlook: affirmed
Summary of Ratings and Rating Actions: Westlb Covered Bond Bank
Plc
-- A2 rating for senior unsecured debt and deposits: on review
for downgrade
-- Prime-1 short term rating: affirmed
-- E+ BFSR (B2 BCA): affirmed, outlook changed to developing
from negative
The last rating action on WestLB was on 26 March 2008 when Moody's
withdrew the rating of a credit-linked note issued by WestLB AG
through its EMTN programme.
WestLB reported total assets of EUR258.8 billion as of the end of
September 2009 and reported net profit of EUR184 million for the
nine-month period.
=============
H U N G A R Y
=============
INVITEL HOLDINGS: Soliciting Consents for Magyar's Senior Notes
---------------------------------------------------------------
Invitel Holdings A/S on December 7 announced a solicitation of
consents by its subsidiary, Magyar Telecom B.V., from holders of
Magyar Telecom's outstanding floating rate notes due 2013 to
certain proposed amendments and waivers to the indenture governing
the Notes. The purpose of the Proposed Amendments and Waivers is
to amend the Indenture to permit Invitel and its subsidiaries to
refinance certain of its indebtedness.
The Consent Solicitation is being made as part of a series of
transactions which include the launch of a EUR340 million
aggregate principal amount senior secured note offering, the
proceeds of which will be used to repay certain indebtedness of
Invitel and its subsidiaries. The consummation of the Consent
Solicitation is subject to the closing of the Notes Offering and
certain other conditions described in the Consent Solicitation
Statement.
Magyar Telecom has entered into a lock-up agreement with certain
holders of Notes who beneficially own over 50% of the outstanding
aggregate principal amount of the Notes.
About Invitel Holdings A/S
Invitel Holdings A/S, formerly Hungarian Telephone and Cable
Corp., -- http://english.invitel.hu/-- is a telecommunications
provider operating in Hungary mainly through its subsidiary and
brand Invitel. The Company also provides Internet and data
services to business customers in Romania through Euroweb Romania,
another subsidiary. The Company was originally established as a
holding company to acquire concessions from the government of the
Republic of Hungary to own and operate local fixed line
telecommunications networks in Hungary. It offers fixed line
telecommunications services to residential and business customers
in its 14 historical concession areas, with a backbone network
that comprises approximately 8,500 route kilometres in Hungary and
23,000 route kilometres outside Hungary. The Company operates in
four core markets: mass market voice, mass market Internet,
business and wholesale.
* * *
As reported by the Troubled Company Reporter-Europe on Nov. 9,
2009, Standard & Poor's Ratings Services said it raised its 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. to 'CCC+' from
'SD', reflecting S&P's review of the group's capital structure and
liquidity profile after completing three debt exchange offers.
The outlook is stable.
At the same time, S&P raised the issue ratings on Magyar Telecom
B.V.'s EUR142 million 10.75% notes due 2012 and EUR200 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, to 'CCC-' from 'D'. The issue ratings on the senior
secured EUR165 million credit facilities at the group's subsidiary
Invitel Zrt. were raised to 'CCC+' from 'CC'.
=============
I R E L A N D
=============
ALLIED IRISH: Fitch Keeps 'D/E' Individual Rating
-------------------------------------------------
Fitch Ratings has downgraded Allied Irish Banks plc's and Bank of
Ireland's Short-term Issuer Default Ratings to 'F1' from 'F1+' and
removed both ratings from Rating Watch Negative. The agency has
simultaneously downgraded EBS Building Society's and Irish
Nationwide Building Society's Short-term term IDRs to 'F2' from
'F1+' and removed both ratings from RWN. Fitch has affirmed Anglo
Irish Bank Corporation's Short-term IDR at 'F1+'. The banks'
other unsecured ratings are unaffected.
The rating actions reflect Fitch's view that the Irish
government's new scheme for guaranteeing the eligible liabilities
of certain Irish credit institutions is less comprehensive than
the existing scheme. As a consequence, institutions will
gradually have a smaller proportion of their short-term
liabilities guaranteed by Ireland ('AA-'/'F1+'/Stable), which will
raise their credit risk.
Nonetheless, the support which the Irish government provides under
the existing scheme, the establishment of the National Asset
Management Agency and previous or projected capital injections
continues to underpin AIB, BoI, EBS and INBS's Short-term IDRs.
AIB's and BoI's Short-term IDRs are notched higher, compared with
EBS and INBS, because their Support Rating Floors are higher, at
'A-', respectively. The Support Rating Floors of EBS and INBS are
rated 'BBB-'/Rating Watch Positive. The Irish government's 100%
ownership of Anglo leads Fitch to believe that in the short-term,
the bank should continue to benefit from the strongest capacity to
repay financial commitments, which is why the agency affirmed its
Short-term IDR at 'F1+'.
All guaranteed securities will continue to be rated at 'AA-'/
'F1+', reflecting the Long- and Short-term IDRs of the guarantor,
Ireland. Non-guaranteed securities will be rated according to the
IDR of the issuer.
The government's new support scheme will only cover those new
senior issues which an institution chooses to be guaranteed,
unlike the existing scheme which continues to cover all senior
liabilities, derivatives, covered bonds and undated subordinated
debt until 29 September 2010. In addition, the new scheme allows
maturities of up to five years, but will not include covered
bonds, subordinated debt or derivatives.
The rating actions are:
Allied Irish Banks plc:
-- Short-term IDR; downgraded to 'F1' from 'F1+'; removed from
RWN
-- Long-term IDR: 'A-'; Outlook Stable
-- Individual Rating: D/E
-- Support Rating: '1'
-- Support Rating Floor: 'A-'
-- Senior unsecured: 'A-'
-- Lower Tier 2: 'BBB+'
Upper Tier 2:
-- Perpetual callable step up subordinated notes (ISIN
XS0227409629): 'B' RWN
-- Perpetual subordinated notes (ISIN XS0100325983): 'B' RWN
Tier 1:
AIB UK 1 LP (ISIN XS0208105055): 'CCC'
AIB UK 2 LP (ISIN XS0257734037): 'B-' RWN
AIB UK 3 LP (ISIN XS0257571066): 'CCC'
-- Reserve capital instruments (ISIN XS0120950158): 'CCC'
-- Guaranteed senior unsecured Long-term: AA-'
-- Guaranteed senior unsecured Short-term: 'F1+'
AIB Group (UK) PLC:
-- Short-term IDR; downgraded to 'F1' from 'F1+'; removed from
RWN
-- Long-term IDR: 'A-'; Outlook Stable
-- Individual Rating: 'D/E'
-- Support Rating: '1'
AIB Bank (CI) Limited:
-- Short-term IDR; downgraded to 'F1' from 'F1+'; removed from
RWN
-- Long-term IDR: 'A-'; Outlook Stable
-- Individual Rating: 'D/E'
-- Support Rating: '1'
Anglo Irish Bank Corporation (Anglo):
-- Short-term IDR: affirmed at 'F1+'
-- Long-term IDR: 'A-'; Outlook Stable
-- Individual Rating: 'E'
-- Support Rating: '1'
-- Support Rating Floor: 'A-'
-- Senior unsecured: 'A-'
-- Lower Tier 2: 'BBB+'
-- Upper Tier 2: 'CC'
-- Tier 1: 'C'
-- Guaranteed senior unsecured Long-term: 'AA-'
-- Guaranteed senior unsecured Short-term: 'F1+'
Anglo Irish Mortgage Bank:
-- Short-term IDR: affirmed at 'F1+'
-- Long-term IDR: 'A-'; Outlook Stable
-- Support Rating: '1'
Bank of Ireland (BoI):
-- Short-term IDR; downgraded to 'F1' from 'F1+'; removed from
RWN
-- Long-term IDR: 'A-'; Outlook Stable
-- Individual Rating: 'C/D'
-- Support Rating: '1'
-- Support Rating Floor: 'A-'
-- Senior unsecured: 'A-'
-- Lower Tier 2: 'BBB+'
-- Tier 1: 'B' RWN
-- Guaranteed senior unsecured Long-term: 'AA-'
EBS Building Society (EBS):
-- Short-term IDR; downgraded to 'F2' from 'F1+'; removed from
RWN
-- Long-term IDR: 'BBB-' Rating Watch Positive
-- Individual Rating: 'E' Rating Watch Positive
-- Support Rating: '2'
-- Support Rating Floor: 'BBB-' Rating Watch Positive
-- Senior unsecured: 'BBB' Rating Watch Evolving
-- Permanent Interest Bearing Shares: 'B' RWN
-- Guaranteed senior unsecured Long-term: 'AA-'
-- Guaranteed senior unsecured Short-term: 'F1+'
EBS Mortgage Finance:
-- Short-term IDR; downgraded to 'F2' from 'F1+'; removed from
RWN
-- Long-term IDR: 'BBB-' Rating Watch Positive
-- Support Rating: '2'
Irish Nationwide Building Society (INBS):
-- Short-term IDR; downgraded to 'F2' from 'F1+'; removed from
RWN
-- Long-term IDR: 'BBB-' Rating Watch Positive
-- Individual Rating: 'E' Rating Watch Positive
-- Support Rating: '2'
-- Support Rating Floor: 'BBB-' Rating Watch Positive
-- Senior unsecured: 'BBB-' Rating Watch Positive
-- Lower Tier 2: 'BB+' Rating Watch Evolving
-- Guaranteed senior unsecured Long-term: 'AA-'
ANGLO IRISH: Fitch Keeps Junk Rating on Tire 1 & Upper Tier 2
-------------------------------------------------------------
Fitch Ratings has downgraded Allied Irish Banks plc's and Bank of
Ireland's Short-term Issuer Default Ratings to 'F1' from 'F1+' and
removed both ratings from Rating Watch Negative. The agency has
simultaneously downgraded EBS Building Society's and Irish
Nationwide Building Society's Short-term term IDRs to 'F2' from
'F1+' and removed both ratings from RWN. Fitch has affirmed Anglo
Irish Bank Corporation's Short-term IDR at 'F1+'. The banks'
other unsecured ratings are unaffected.
The rating actions reflect Fitch's view that the Irish
government's new scheme for guaranteeing the eligible liabilities
of certain Irish credit institutions is less comprehensive than
the existing scheme. As a consequence, institutions will
gradually have a smaller proportion of their short-term
liabilities guaranteed by Ireland ('AA-'/'F1+'/Stable), which will
raise their credit risk.
Nonetheless, the support which the Irish government provides under
the existing scheme, the establishment of the National Asset
Management Agency and previous or projected capital injections
continues to underpin AIB, BoI, EBS and INBS's Short-term IDRs.
AIB's and BoI's Short-term IDRs are notched higher, compared with
EBS and INBS, because their Support Rating Floors are higher, at
'A-', respectively. The Support Rating Floors of EBS and INBS are
rated 'BBB-'/Rating Watch Positive. The Irish government's 100%
ownership of Anglo leads Fitch to believe that in the short-term,
the bank should continue to benefit from the strongest capacity to
repay financial commitments, which is why the agency affirmed its
Short-term IDR at 'F1+'.
All guaranteed securities will continue to be rated at 'AA-'/
'F1+', reflecting the Long- and Short-term IDRs of the guarantor,
Ireland. Non-guaranteed securities will be rated according to the
IDR of the issuer.
The government's new support scheme will only cover those new
senior issues which an institution chooses to be guaranteed,
unlike the existing scheme which continues to cover all senior
liabilities, derivatives, covered bonds and undated subordinated
debt until 29 September 2010. In addition, the new scheme allows
maturities of up to five years, but will not include covered
bonds, subordinated debt or derivatives.
The rating actions are:
Allied Irish Banks plc:
-- Short-term IDR; downgraded to 'F1' from 'F1+'; removed from
RWN
-- Long-term IDR: 'A-'; Outlook Stable
-- Individual Rating: D/E
-- Support Rating: '1'
-- Support Rating Floor: 'A-'
-- Senior unsecured: 'A-'
-- Lower Tier 2: 'BBB+'
Upper Tier 2:
-- Perpetual callable step up subordinated notes (ISIN
XS0227409629): 'B' RWN
-- Perpetual subordinated notes (ISIN XS0100325983): 'B' RWN
Tier 1:
AIB UK 1 LP (ISIN XS0208105055): 'CCC'
AIB UK 2 LP (ISIN XS0257734037): 'B-' RWN
AIB UK 3 LP (ISIN XS0257571066): 'CCC'
-- Reserve capital instruments (ISIN XS0120950158): 'CCC'
-- Guaranteed senior unsecured Long-term: AA-'
-- Guaranteed senior unsecured Short-term: 'F1+'
AIB Group (UK) PLC:
-- Short-term IDR; downgraded to 'F1' from 'F1+'; removed from
RWN
-- Long-term IDR: 'A-'; Outlook Stable
-- Individual Rating: 'D/E'
-- Support Rating: '1'
AIB Bank (CI) Limited:
-- Short-term IDR; downgraded to 'F1' from 'F1+'; removed from
RWN
-- Long-term IDR: 'A-'; Outlook Stable
-- Individual Rating: 'D/E'
-- Support Rating: '1'
Anglo Irish Bank Corporation (Anglo):
-- Short-term IDR: affirmed at 'F1+'
-- Long-term IDR: 'A-'; Outlook Stable
-- Individual Rating: 'E'
-- Support Rating: '1'
-- Support Rating Floor: 'A-'
-- Senior unsecured: 'A-'
-- Lower Tier 2: 'BBB+'
-- Upper Tier 2: 'CC'
-- Tier 1: 'C'
-- Guaranteed senior unsecured Long-term: 'AA-'
-- Guaranteed senior unsecured Short-term: 'F1+'
Anglo Irish Mortgage Bank:
-- Short-term IDR: affirmed at 'F1+'
-- Long-term IDR: 'A-'; Outlook Stable
-- Support Rating: '1'
Bank of Ireland (BoI):
-- Short-term IDR; downgraded to 'F1' from 'F1+'; removed from
RWN
-- Long-term IDR: 'A-'; Outlook Stable
-- Individual Rating: 'C/D'
-- Support Rating: '1'
-- Support Rating Floor: 'A-'
-- Senior unsecured: 'A-'
-- Lower Tier 2: 'BBB+'
-- Tier 1: 'B' RWN
-- Guaranteed senior unsecured Long-term: 'AA-'
EBS Building Society (EBS):
-- Short-term IDR; downgraded to 'F2' from 'F1+'; removed from
RWN
-- Long-term IDR: 'BBB-' Rating Watch Positive
-- Individual Rating: 'E' Rating Watch Positive
-- Support Rating: '2'
-- Support Rating Floor: 'BBB-' Rating Watch Positive
-- Senior unsecured: 'BBB' Rating Watch Evolving
-- Permanent Interest Bearing Shares: 'B' RWN
-- Guaranteed senior unsecured Long-term: 'AA-'
-- Guaranteed senior unsecured Short-term: 'F1+'
EBS Mortgage Finance:
-- Short-term IDR; downgraded to 'F2' from 'F1+'; removed from
RWN
-- Long-term IDR: 'BBB-' Rating Watch Positive
-- Support Rating: '2'
Irish Nationwide Building Society (INBS):
-- Short-term IDR; downgraded to 'F2' from 'F1+'; removed from
RWN
-- Long-term IDR: 'BBB-' Rating Watch Positive
-- Individual Rating: 'E' Rating Watch Positive
-- Support Rating: '2'
-- Support Rating Floor: 'BBB-' Rating Watch Positive
-- Senior unsecured: 'BBB-' Rating Watch Positive
-- Lower Tier 2: 'BB+' Rating Watch Evolving
-- Guaranteed senior unsecured Long-term: 'AA-'
EBS BUILDING: Fitch Puts 'E' Individual Rating on Watch Positive
----------------------------------------------------------------
Fitch Ratings has downgraded Allied Irish Banks plc's and Bank of
Ireland's Short-term Issuer Default Ratings to 'F1' from 'F1+' and
removed both ratings from Rating Watch Negative. The agency has
simultaneously downgraded EBS Building Society's and Irish
Nationwide Building Society's Short-term term IDRs to 'F2' from
'F1+' and removed both ratings from RWN. Fitch has affirmed Anglo
Irish Bank Corporation's Short-term IDR at 'F1+'. The banks'
other unsecured ratings are unaffected.
The rating actions reflect Fitch's view that the Irish
government's new scheme for guaranteeing the eligible liabilities
of certain Irish credit institutions is less comprehensive than
the existing scheme. As a consequence, institutions will
gradually have a smaller proportion of their short-term
liabilities guaranteed by Ireland ('AA-'/'F1+'/Stable), which will
raise their credit risk.
Nonetheless, the support which the Irish government provides under
the existing scheme, the establishment of the National Asset
Management Agency and previous or projected capital injections
continues to underpin AIB, BoI, EBS and INBS's Short-term IDRs.
AIB's and BoI's Short-term IDRs are notched higher, compared with
EBS and INBS, because their Support Rating Floors are higher, at
'A-', respectively. The Support Rating Floors of EBS and INBS are
rated 'BBB-'/Rating Watch Positive. The Irish government's 100%
ownership of Anglo leads Fitch to believe that in the short-term,
the bank should continue to benefit from the strongest capacity to
repay financial commitments, which is why the agency affirmed its
Short-term IDR at 'F1+'.
All guaranteed securities will continue to be rated at 'AA-'/
'F1+', reflecting the Long- and Short-term IDRs of the guarantor,
Ireland. Non-guaranteed securities will be rated according to the
IDR of the issuer.
The government's new support scheme will only cover those new
senior issues which an institution chooses to be guaranteed,
unlike the existing scheme which continues to cover all senior
liabilities, derivatives, covered bonds and undated subordinated
debt until 29 September 2010. In addition, the new scheme allows
maturities of up to five years, but will not include covered
bonds, subordinated debt or derivatives.
The rating actions are:
Allied Irish Banks plc:
-- Short-term IDR; downgraded to 'F1' from 'F1+'; removed from
RWN
-- Long-term IDR: 'A-'; Outlook Stable
-- Individual Rating: D/E
-- Support Rating: '1'
-- Support Rating Floor: 'A-'
-- Senior unsecured: 'A-'
-- Lower Tier 2: 'BBB+'
Upper Tier 2:
-- Perpetual callable step up subordinated notes (ISIN
XS0227409629): 'B' RWN
-- Perpetual subordinated notes (ISIN XS0100325983): 'B' RWN
Tier 1:
AIB UK 1 LP (ISIN XS0208105055): 'CCC'
AIB UK 2 LP (ISIN XS0257734037): 'B-' RWN
AIB UK 3 LP (ISIN XS0257571066): 'CCC'
-- Reserve capital instruments (ISIN XS0120950158): 'CCC'
-- Guaranteed senior unsecured Long-term: AA-'
-- Guaranteed senior unsecured Short-term: 'F1+'
AIB Group (UK) PLC:
-- Short-term IDR; downgraded to 'F1' from 'F1+'; removed from
RWN
-- Long-term IDR: 'A-'; Outlook Stable
-- Individual Rating: 'D/E'
-- Support Rating: '1'
AIB Bank (CI) Limited:
-- Short-term IDR; downgraded to 'F1' from 'F1+'; removed from
RWN
-- Long-term IDR: 'A-'; Outlook Stable
-- Individual Rating: 'D/E'
-- Support Rating: '1'
Anglo Irish Bank Corporation (Anglo):
-- Short-term IDR: affirmed at 'F1+'
-- Long-term IDR: 'A-'; Outlook Stable
-- Individual Rating: 'E'
-- Support Rating: '1'
-- Support Rating Floor: 'A-'
-- Senior unsecured: 'A-'
-- Lower Tier 2: 'BBB+'
-- Upper Tier 2: 'CC'
-- Tier 1: 'C'
-- Guaranteed senior unsecured Long-term: 'AA-'
-- Guaranteed senior unsecured Short-term: 'F1+'
Anglo Irish Mortgage Bank:
-- Short-term IDR: affirmed at 'F1+'
-- Long-term IDR: 'A-'; Outlook Stable
-- Support Rating: '1'
Bank of Ireland (BoI):
-- Short-term IDR; downgraded to 'F1' from 'F1+'; removed from
RWN
-- Long-term IDR: 'A-'; Outlook Stable
-- Individual Rating: 'C/D'
-- Support Rating: '1'
-- Support Rating Floor: 'A-'
-- Senior unsecured: 'A-'
-- Lower Tier 2: 'BBB+'
-- Tier 1: 'B' RWN
-- Guaranteed senior unsecured Long-term: 'AA-'
EBS Building Society (EBS):
-- Short-term IDR; downgraded to 'F2' from 'F1+'; removed from
RWN
-- Long-term IDR: 'BBB-' Rating Watch Positive
-- Individual Rating: 'E' Rating Watch Positive
-- Support Rating: '2'
-- Support Rating Floor: 'BBB-' Rating Watch Positive
-- Senior unsecured: 'BBB' Rating Watch Evolving
-- Permanent Interest Bearing Shares: 'B' RWN
-- Guaranteed senior unsecured Long-term: 'AA-'
-- Guaranteed senior unsecured Short-term: 'F1+'
EBS Mortgage Finance:
-- Short-term IDR; downgraded to 'F2' from 'F1+'; removed from
RWN
-- Long-term IDR: 'BBB-' Rating Watch Positive
-- Support Rating: '2'
Irish Nationwide Building Society (INBS):
-- Short-term IDR; downgraded to 'F2' from 'F1+'; removed from
RWN
-- Long-term IDR: 'BBB-' Rating Watch Positive
-- Individual Rating: 'E' Rating Watch Positive
-- Support Rating: '2'
-- Support Rating Floor: 'BBB-' Rating Watch Positive
-- Senior unsecured: 'BBB-' Rating Watch Positive
-- Lower Tier 2: 'BB+' Rating Watch Evolving
-- Guaranteed senior unsecured Long-term: 'AA-'
IRISH NATIONWIDE: Fitch Puts E Individual Rating on Watch Positive
------------------------------------------------------------------
Fitch Ratings has downgraded Allied Irish Banks plc's and Bank of
Ireland's Short-term Issuer Default Ratings to 'F1' from 'F1+' and
removed both ratings from Rating Watch Negative. The agency has
simultaneously downgraded EBS Building Society's and Irish
Nationwide Building Society's Short-term term IDRs to 'F2' from
'F1+' and removed both ratings from RWN. Fitch has affirmed Anglo
Irish Bank Corporation's Short-term IDR at 'F1+'. The banks'
other unsecured ratings are unaffected.
The rating actions reflect Fitch's view that the Irish
government's new scheme for guaranteeing the eligible liabilities
of certain Irish credit institutions is less comprehensive than
the existing scheme. As a consequence, institutions will
gradually have a smaller proportion of their short-term
liabilities guaranteed by Ireland ('AA-'/'F1+'/Stable), which will
raise their credit risk.
Nonetheless, the support which the Irish government provides under
the existing scheme, the establishment of the National Asset
Management Agency and previous or projected capital injections
continues to underpin AIB, BoI, EBS and INBS's Short-term IDRs.
AIB's and BoI's Short-term IDRs are notched higher, compared with
EBS and INBS, because their Support Rating Floors are higher, at
'A-', respectively. The Support Rating Floors of EBS and INBS are
rated 'BBB-'/Rating Watch Positive. The Irish government's 100%
ownership of Anglo leads Fitch to believe that in the short-term,
the bank should continue to benefit from the strongest capacity to
repay financial commitments, which is why the agency affirmed its
Short-term IDR at 'F1+'.
All guaranteed securities will continue to be rated at 'AA-'/
'F1+', reflecting the Long- and Short-term IDRs of the guarantor,
Ireland. Non-guaranteed securities will be rated according to the
IDR of the issuer.
The government's new support scheme will only cover those new
senior issues which an institution chooses to be guaranteed,
unlike the existing scheme which continues to cover all senior
liabilities, derivatives, covered bonds and undated subordinated
debt until 29 September 2010. In addition, the new scheme allows
maturities of up to five years, but will not include covered
bonds, subordinated debt or derivatives.
The rating actions are:
Allied Irish Banks plc:
-- Short-term IDR; downgraded to 'F1' from 'F1+'; removed from
RWN
-- Long-term IDR: 'A-'; Outlook Stable
-- Individual Rating: D/E
-- Support Rating: '1'
-- Support Rating Floor: 'A-'
-- Senior unsecured: 'A-'
-- Lower Tier 2: 'BBB+'
Upper Tier 2:
-- Perpetual callable step up subordinated notes (ISIN
XS0227409629): 'B' RWN
-- Perpetual subordinated notes (ISIN XS0100325983): 'B' RWN
Tier 1:
AIB UK 1 LP (ISIN XS0208105055): 'CCC'
AIB UK 2 LP (ISIN XS0257734037): 'B-' RWN
AIB UK 3 LP (ISIN XS0257571066): 'CCC'
-- Reserve capital instruments (ISIN XS0120950158): 'CCC'
-- Guaranteed senior unsecured Long-term: AA-'
-- Guaranteed senior unsecured Short-term: 'F1+'
AIB Group (UK) PLC:
-- Short-term IDR; downgraded to 'F1' from 'F1+'; removed from
RWN
-- Long-term IDR: 'A-'; Outlook Stable
-- Individual Rating: 'D/E'
-- Support Rating: '1'
AIB Bank (CI) Limited:
-- Short-term IDR; downgraded to 'F1' from 'F1+'; removed from
RWN
-- Long-term IDR: 'A-'; Outlook Stable
-- Individual Rating: 'D/E'
-- Support Rating: '1'
Anglo Irish Bank Corporation (Anglo):
-- Short-term IDR: affirmed at 'F1+'
-- Long-term IDR: 'A-'; Outlook Stable
-- Individual Rating: 'E'
-- Support Rating: '1'
-- Support Rating Floor: 'A-'
-- Senior unsecured: 'A-'
-- Lower Tier 2: 'BBB+'
-- Upper Tier 2: 'CC'
-- Tier 1: 'C'
-- Guaranteed senior unsecured Long-term: 'AA-'
-- Guaranteed senior unsecured Short-term: 'F1+'
Anglo Irish Mortgage Bank:
-- Short-term IDR: affirmed at 'F1+'
-- Long-term IDR: 'A-'; Outlook Stable
-- Support Rating: '1'
Bank of Ireland (BoI):
-- Short-term IDR; downgraded to 'F1' from 'F1+'; removed from
RWN
-- Long-term IDR: 'A-'; Outlook Stable
-- Individual Rating: 'C/D'
-- Support Rating: '1'
-- Support Rating Floor: 'A-'
-- Senior unsecured: 'A-'
-- Lower Tier 2: 'BBB+'
-- Tier 1: 'B' RWN
-- Guaranteed senior unsecured Long-term: 'AA-'
EBS Building Society (EBS):
-- Short-term IDR; downgraded to 'F2' from 'F1+'; removed from
RWN
-- Long-term IDR: 'BBB-' Rating Watch Positive
-- Individual Rating: 'E' Rating Watch Positive
-- Support Rating: '2'
-- Support Rating Floor: 'BBB-' Rating Watch Positive
-- Senior unsecured: 'BBB' Rating Watch Evolving
-- Permanent Interest Bearing Shares: 'B' RWN
-- Guaranteed senior unsecured Long-term: 'AA-'
-- Guaranteed senior unsecured Short-term: 'F1+'
EBS Mortgage Finance:
-- Short-term IDR; downgraded to 'F2' from 'F1+'; removed from
RWN
-- Long-term IDR: 'BBB-' Rating Watch Positive
-- Support Rating: '2'
Irish Nationwide Building Society (INBS):
-- Short-term IDR; downgraded to 'F2' from 'F1+'; removed from
RWN
-- Long-term IDR: 'BBB-' Rating Watch Positive
-- Individual Rating: 'E' Rating Watch Positive
-- Support Rating: '2'
-- Support Rating Floor: 'BBB-' Rating Watch Positive
-- Senior unsecured: 'BBB-' Rating Watch Positive
-- Lower Tier 2: 'BB+' Rating Watch Evolving
-- Guaranteed senior unsecured Long-term: 'AA-'
MERCATOR CLO I: Moody's Cuts Rating on Class B-2 Notes to 'Ca'
--------------------------------------------------------------
Moody's Investors Service took these rating actions on notes
issued by Mercator CLO I Plc.
Issuer: Mercator CLO I Plc
-- EUR276M Class A-1 Senior Secured Floating Rate Notes due
2023-1 Notes (currently EUR265M outstanding), Downgraded to
Aa1; previously on Apr 12, 2006 Definitive Rating Assigned
Aaa
-- EUR34M Class A-2 Senior Secured Floating Rate Notes due 2023-
2 Notes, Downgraded to Baa2; previously on Mar 4, 2009 Aa2
Placed Under Review for Possible Downgrade
-- EUR24M Class A-3 Deferrable Senior Secured Floating Rate
Notes due 2023-3 Notes, Downgraded to Ba3; previously on
Mar 19, 2009 Downgraded to Baa3 and Remained On Review for
Possible Downgrade
-- EUR18M Class B-1 Deferrable Senior Secured Floating Rate
Notes due 2023-4 Notes, Downgraded to B3; previously on
Mar 19, 2009 Downgraded to Ba3 and Remained On Review for
Possible Downgrade
-- EUR22M Class B-2 Deferrable Senior Secured Floating Rate
Notes due 2023-5 Notes (currently EUR22.7M outstanding),
Downgraded to Ca; previously on Mar 19, 2009 Downgraded to
Caa1 and Remained On Review for Possible Downgrade
This transaction is a managed cash leveraged loan collateralized
loan obligation with exposure to predominantly European senior
secured loans, as well as 3% mezzanine loan exposure and 5% second
lien loan exposure.
The rating actions reflect Moody's revised assumptions with
respect to default probability and the calculation of the
diversity score as described in the press release dated
February 4, 2009, titled "Moody's updates key assumptions for
rating CLOs." These revised assumptions have been applied to all
corporate credits in the underlying portfolio, the revised
assumptions for the treatment of ratings on "Review for Possible
Downgrade", "Review for Possible Upgrade", or with a "Negative
Outlook" being applied to those corporate credits that are
publicly rated.
Moody's also notes that a material proportion of the collateral
pool consists of debt obligations whose credit quality has been
assessed through Moody's credit estimates. As credit estimates do
not carry credit indicators such as ratings reviews and outlooks,
a stress of a quarter notch-equivalent assumed downgrade was
applied to each of these estimates.
According to Moody's, the rating actions taken on the notes are
also a result of credit deterioration of the underlying portfolio.
This is observed through a decline in the average credit rating as
measured through the portfolio weighted average rating factor
'WARF' (currently 2,914), an increase in the amount of defaulted
securities (currently 5.4% of the portfolio), an increase in the
proportion of securities from issuers rated Caa1 and below
(currently 14% 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.
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 of this transaction, the recent deal performance in
the current market environment and specific documentation
features. 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.
MERCATOR CLO II: Moody's Cuts Rating on Class B-2 Notes to 'Ca'
---------------------------------------------------------------
Moody's Investors Service took these rating actions on notes
issued by Mercator CLO II Plc.
Issuer: Mercator CLO II Plc
-- EUR274M Class A-1 Senior Secured Floating Rate Notes due 2024
Notes (currently EUR264.6M outstanding), Downgraded to Aa1;
previously on Feb 6, 2007 Assigned Aaa
-- EUR25.5M Class A-2 Senior Secured Floating Rate Notes due
2024 Notes, Downgraded to Baa1; previously on Mar 4, 2009 Aa2
Placed Under Review for Possible Downgrade
-- EUR25M Class A-3 Deferrable Senior Secured Floating Rate
Notes due 2024 Notes, Downgraded to Ba2; previously on
Mar 18, 2009 Downgraded to Baa3 and Remained On Review for
Possible Downgrade
-- EUR25.5M Class B-1 Deferrable Senior Secured Floating Rate
Notes due 2024-1 Notes, Downgraded to B3; previously on
Mar 18, 2009 Downgraded to B1 and Remained On Review for
Possible Downgrade
-- EUR19.5M Class B-2 Deferrable Senior Secured Floating Rate
Notes due 2024 Notes, Downgraded to Ca; previously on Mar 18,
2009 Downgraded to Caa3 and Remained On Review for Possible
Downgrade
-- EUR7M Class W Combination Notes due 2024 Notes, Downgraded to
B1; previously on Mar 4, 2009 Baa1 Placed Under Review for
Possible Downgrade
This transaction is a managed cash leveraged loan collateralized
loan obligation with exposure to predominantly European senior
secured loans, as well as 5% mezzanine loan exposure and 5% second
lien loan exposure.
The rating actions reflect Moody's revised assumptions with
respect to default probability and the calculation of the
diversity score as described in the press release dated
February 4, 2009, titled "Moody's updates key assumptions for
rating CLOs." These revised assumptions have been applied to all
corporate credits in the underlying portfolio, the revised
assumptions for the treatment of ratings on "Review for Possible
Downgrade", "Review for Possible Upgrade", or with a "Negative
Outlook" being applied to those corporate credits that are
publicly rated.
Moody's also notes that a material proportion of the collateral
pool consists of debt obligations whose credit quality has been
assessed through Moody's credit estimates. As credit estimates do
not carry credit indicators such as ratings reviews and outlooks,
a stress of a quarter notch-equivalent assumed downgrade was
applied to each of these estimates.
According to Moody's, the rating actions taken on the notes are
also a result of credit deterioration of the underlying portfolio.
This is observed through a decline in the average credit rating as
measured through the portfolio weighted average rating factor
'WARF' (currently 2,844), an increase in the amount of defaulted
securities (currently 5.7% of the portfolio), an increase in the
proportion of securities from issuers rated Caa1 and below
(currently 15.7% of the portfolio), and a failure of some par
value tests. These measures were taken from the recent trustee
report dated 06 November 2009. Moody's also performed a number of
sensitivity analyses, including consideration of a further decline
in portfolio WARF quality.
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 of this transaction, the recent deal performance in
the current market environment and specific documentation
features. 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.
MERCATOR CLO III: Moody's Cuts Rating on Class B-2 Notes to 'Ca'
----------------------------------------------------------------
Moody's Investors Service took these rating actions on notes
issued by Mercator CLO III Ltd.
Issuer: Mercator CLO III Limited
-- EUR199.5M Class A-1 Senior Secured Floating Rate Notes due
2024 Notes (currently EUR 191M outstanding), Downgraded to
Aa2; previously on Sep 12, 2007 Definitive Rating Assigned
Aaa
-- EUR31.5M Class A-2 Senior Secured Floating Rate Notes due
2024 Notes, Downgraded to Baa3; previously on Mar 4, 2009 Aa2
Placed Under Review for Possible Downgrade
-- EUR18M Class A-3 Deferrable Senior Secured Floating Rate
Notes due 2024 Notes (currently EUR 18.2M outstanding),
Downgraded to B1; previously on Mar 18, 2009 Downgraded to
Ba3 and Remained On Review for Possible Downgrade
-- EUR18M Class B-1 Deferrable Senior Secured Floating Rate
Notes due 2024 Notes (currently EUR 18.3M outstanding),
Downgraded to Caa2; previously on Mar 18, 2009 Downgraded to
Caa1 and Remained On Review for Possible Downgrade
-- EUR10.9M Class B-2 Deferrable Senior Secured Floating Rate
Notes due 2024 Notes (currently EUR 11.6M outstanding),
Downgraded to Ca; previously on Mar 18, 2009 Downgraded to
Caa3 and Remained On Review for Possible Downgrade
This transaction is a managed cash leveraged loan collateralized
loan obligation with exposure to predominantly European senior
secured loans, as well as 4.9% mezzanine loan exposure and 6.2%
second lien loans.
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 2993), an increase in the amount of defaulted
securities (currently 4.9% of the portfolio), an increase in the
proportion of securities from issuers rated Caa1 and below
(currently 17% of the portfolio), and a failure of all 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.
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 of this transaction, the recent deal performance in
the current market environment and specific documentation
features. 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.
SMART TELECOM: To Exit Examinership Tomorrow
--------------------------------------------
The Irish Times reports that Smart Telecom is to exit examinership
on Friday after the High Court approved proposals for telecoms
provider Digiweb to acquire the firm.
The report recalls Smart Telecom went into examinership on
August 31, 2009, in a bid to secure investment and restructure its
debt.
According to the report, the proposals included plans for the
substantial writedown of a EUR54 million loan and the deferral of
a EUR4.1 million loan until December 2011.
About Smart Telecom
Smart Telecom provides voice, data and media communications
services to residential, government and corporate customers.
=========
I T A L Y
=========
WIND ACQUISITION: Fitch Assigns 'B' Rating on EUR500 Mil. Notes
---------------------------------------------------------------
Fitch Ratings has assigned Wind Acquisition Holdings Finance
S.A.'s proposed EUR500 million senior payment-in-kind note
issuance, due to mature in 2017, an expected rating of 'B'. Fitch
has simultaneously affirmed Wind Telecomunicazioni SpA's Long-term
Issuer Default Rating at 'BB-' and Short-term IDR at 'B'. The
Outlook on the Long-term IDR is Stable. Fitch has also affirmed
Wind's senior bank facilities and the second lien notes issued by
Wind Finance SL S.A. at 'BB+'. The senior notes issued by Wind
Acquisition Finance S.A., which mature in 2015 and 2017, are
affirmed at 'B+'.
The final rating on the senior PIK notes is contingent upon the
receipt of final documents conforming to information already
received.
Wind's recent strong operating performance has enabled the company
to reduce net leverage (net debt to last twelve months EBITDA) to
4.2x at Q309, from 4.6x at Q109 (pro forma for the issuance in
July of the 2017 Wind Acquisition Finance S.A. senior notes).
Although the proposed new WAHF PIK note issuance is at the holding
company level, outside the Wind restricted group, Fitch will
include the proposed PIK notes in its analysis of Wind's financial
condition and credit profile. This is because Wind's senior bank
facilities reference WAHF for cross-default purposes, and because
the new notes are PIK for the first four years only, after which
they become cash-pay and are expected to be serviced via dividends
from Wind.
The proposed issuance at the immediate parent company level
highlights the heightened event risk for Wind, as WAHF S.A.'s
shareholders have demonstrated a continued willingness to use
Wind's financial strength to support other group entities outside
Wind's restricted group.
The agency notes that the new WAHF S.A. senior PIK notes include a
debt incurrence test, set at 5.0x Wind net leverage, but that
there is also additional flexibility for WAHF S.A. to issue a
further EUR250 million senior PIK notes over the original issue
amount without needing to meet this test, as well as additional
flexibility and baskets within the permitted indebtedness
definition. Leveraging up to the maximum level permitted by the
WAHF S.A. documents would apply downward pressure to Wind's
ratings and in fact current ratings headroom is likely to be
constrained to 5.0x consolidated leverage.
The proposed issuance of EUR500 million equivalent new senior PIK
notes at the WAHF level would increase net leverage of the group
to 4.5x, still lower than the pro forma level of 4.6x at Q109, and
does not affect the company's interest and cashflow cover metrics
in the short term due to the PIK nature of the interest coupons
for the first four years. The resulting metrics therefore
continue to support Wind's Long-term IDR at 'BB-'.
Fitch notes that the terms of Wind's current senior bank
facilities limit the payment of dividends out of the Wind
restricted group until its net debt, excluding WAHF debt, to
EBITDA falls below 3x. However, Wind will need to refinance the
senior facilities ahead of their 2013 bullet tranche repayments,
and since the first WAHF cash interest payment will only fall due
in July 2014, the agency views the risk of Wind's ability to
upstream dividends to service WAHF S.A.'s PIK notes as being
overshadowed by refinancing risk. Fitch thus anticipates that
Wind will negotiate appropriate restrictive covenants in its new
facilities at the time of its refinancing.
The agency further believes that Wind's refinancing risk is
moderate, given -- under the agency's projections -- that leverage
at the Wind level is currently expected to be less than 4x by
2012.
Wind Acquisition Finance S.A.'s 2015 and 2017 senior notes also
include restrictions on dividend payments, but these are linked to
a cumulative basket of 50% of consolidated net income, which stood
at EUR70 million at YE08 and is expected to grow y-o-y, and a net
leverage test of 5.0x. Fitch does not expect these conditions
will prevent the payment of dividends by Wind in time for the
first 2014 cash interest payment on the proposed PIK notes.
The proposed WAHF S.A. senior PIK notes are guaranteed by WAHF
SpA, the immediate parent of Wind, and are secured on the shares
of WAHF SpA and intercompany loans. Therefore, the PIK notes are
structurally subordinated to all of the debt at Wind, and
consequently Fitch estimates that the WAHF senior PIK notes would
achieve weak recoveries in a distress or default scenario. This
is reflected in the expected 'B' rating, two notches below Wind's
Long-term IDR and one notch below the rating of the Wind
Acquisition Finance S.A. senior notes.
===================
K A Z A K H S T A N
===================
BEU LLP: Creditors Must File Claims by December 23
--------------------------------------------------
Creditors of LLP Company Beu have until December 23, 2009, to
submit proofs of claim to:
The Specialized Inter-Regional
Economic Court of Kostanai
Baitursynov Str. 70
Kostanai
Kazakhstan
The court commenced bankruptcy proceedings against the company on
September 28, 2009.
BTA BANK: Reaches Compromise with Bondholders on Restructuring
--------------------------------------------------------------
Nariman Gizitdinov at Bloomberg News reports that BTA Bank said it
signed a non-binding agreement with creditors on options for
restructuring its debt.
According to Bloomberg, BTA reached a compromise with bondholders
that will give them cash and new securities equal to about half of
the US$11.6 billion they are owed.
Citing a BTA statement released Tuesday, Bloomberg says the
package is equal to US$5.57 billion, or 48% of outstanding
principal and interest. According to Bloomberg, creditors will
also receive recovery notes allowing them to profit from the sale
of assets and 15% of BTA’s equity. Kazakhstan's National
Wellbeing Fund will own 85% of BTA after the restructuring,
Bloomberg says.
Bloomberg recalls the National Wellbeing Fund took control of BTA
in February and the bank defaulted in April after credit markets
froze and Kazakhstan’s property bubble burst.
Bloomberg says under the agreement, BTA plans to pay about US$1
billion in cash to the creditors and issue US$2.3 billion of new
senior debt and about US$797 million of subordinated debt.
Bloomberg relates BTA said the bank will also provide so-called
original issue discount debt instruments with an initial value of
US$763 million and final value of US$1.636 billion, to export
credit agencies and some eligible trade finance creditors.
A group of senior creditors will receive 10.5% of BTA's equity and
subordinated financial creditors will receive 4.5% under a
so-called junior package, Bloomberg notes citing the agreement.
BTA Bank AO (BTA Bank JSC), formerly Bank TuranAlem AO --
http://bta.kz/-- is a Kazakhstan-based financial institution,
which is involved in the provision of banking and financial
products for private and corporate clients. The Bank has in its
offer personal banking services, comprised of current accounts,
savings accounts, term deposits, safety deposit boxes, money
transfer services, credit facilities, and corporate banking
services, including business accounts, credit facilities, treasury
services, letters of guarantee, letters of credit, foreign
exchange services, remittances and other solutions, as well as
debt and credit cards, card services and electronic banking
services. The Bank has 14 subsidiaries and six affiliated
companies. It offers its services through a network of numerous
regional branches, cash settlement centers throughout Kazakhstan
and international representative offices located in Ukraine,
Russia, China and the United Arab Emirates.
GIDEON INVEST: Creditors Must File Claims by December 23
--------------------------------------------------------
LLP Gideon Invest is currently undergoing liquidation. Creditors
have until December 23, 2009, to submit proofs of claim to:
Papanin Str. 146a
Almaty
Kazakhstan
HALYK BANK: Mulls US$500 Million Eurobond Sale
----------------------------------------------
Nariman Gizitdinov at Bloomberg News reports that Halyk Savings
Bank said it may sell as much as US$500 million in Eurobonds in
the first half of next year to diversify funding.
Bloomberg relates Ermek Koichebayev, a spokesman for the bank,
said in a phone interview Tuesday Halyk's plans to sell US$300
million to US$500 million of bonds will depend on the funding
costs. According to Bloomberg, the bond sale will allow the bank
to generate funds that are cheaper and longer term than deposits.
Bloomberg discloses Halyk said it repaid two syndicated loans in
October of US$400 million and US$300 million. Those loans had
been due in April and September next year, Bloomberg notes.
As reported by the Troubled Company Reporter-Europe on May 22,
2009, Bloomberg News, citing, Kairat Kelimbetov, head of the
National Wellbeing Fund Samruk-Kazyna, said Kazkommertsbank and
Halyk would have to restructure their debt themselves. The
state controls 21% each of Kazkommertsbank and Halyk. "The
responsibility of servicing external debt lies with the management
of Kazkommertsbank and Halyk," Bloomberg News quoted Mr.
Kelimbetov as saying.
Kazakhstan-based Halyk Bank AO (Halyk National Savings Bank of
Kazakhstan JSC or Halyk Bank JSC) (KAS:HSBK) --
http://eng.halykbank.kz/-- offers banking services to private and
corporate clients. Its services include cash-settlements, loans,
deposits, pensions, insurance, leasing, brokerage and asset
management, safe deposit boxes, American Express checks, debit and
credit cards, Internet banking and other services in national and
foreign currencies. As of December 31, 2008, the Bank operated
through 15 branches (13 wholly owned) located on the territory of
Kazakhstan, Russia, Kyrgyzstan, Mongolia, Kyrgyzstan, Georgia and
the Netherlands.
* * *
As reported in the Troubled Company Reporter-Europe on June 15,
2009, Standard & Poor's Ratings Services said that it lowered its
long-term counterparty credit rating on Halyk Savings Bank of
Kazakhstan, to 'B+' from 'BB-'. S&P said the outlook is still
negative. At the same time, S&P affirmed the short-term ratings
on Halyk at 'B'. Standard & Poor's credit analyst Ekaterina
Trofimova said the rating actions reflect its view of the
continuing downward pressure on the bank's asset quality,
capitalization, funding, and liquidity.
INTER VAL: Creditors Must File Claims by December 23
----------------------------------------------------
Creditors of LLP Inter Val have until December 23, 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 11, 2009, after finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of South Kazakhstan
Tynybaev Str. 42
Shymkent
Kazakhstan
LIFERANT IT: Creditors Must File Claims by December 23
------------------------------------------------------
LLP Liferant IT is currently undergoing liquidation. Creditors
have until December 23, 2009, to submit proofs of claim to:
Abai Str. 77-32
Almaty
Kazakhstan
MMC TRANS: Creditors Must File Claims by December 23
----------------------------------------------------
Creditors of LLP Mmc Trans Ug have until December 23, 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 10, 2009, after finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of South Kazakhstan
Tynybaev Str. 42
Shymkent
Kazakhstan
NORD INVEST: Creditors Must File Claims by December 23
------------------------------------------------------
LLP Nord Invest is currently undergoing liquidation. Creditors
have until December 23, 2009, to submit proofs of claim to:
Internatsionalnaya Str. 33-1
Shuchinsk
Kazakhstan
RAHAT PRIANT: Creditors Must File Claims by December 23
-------------------------------------------------------
Creditors of LLP Rahat Priant have until December 23, 2009, to
submit proofs of claim to:
Yakor
Kyzyljarsky District
North Kazakhstan
Kazakhstan
The Specialized Inter-Regional Economic Court of North Kazakhstan
commenced bankruptcy proceedings against the company on
September 15, 2009, after finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of North Kazakhstan
Brusilovsky Str. 60
Petropavlovsk
North Kazakhstan
Kazakhstan
SOLITON ETT: Creditors Must File Claims by December 23
------------------------------------------------------
Creditors of LLP Soliton Ett have until December 23, 2009, to
submit proofs of claim to:
Dostyk Ave. 107-16
Almaty
Kazakhstan
The Specialized Inter-Regional Economic Court of Almaty 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 Almaty
Baizakov Str. 273b
Almaty
Kazakhstan
SPETS-TECH-1: Creditors Must File Claims by December 23
-------------------------------------------------------
Creditors of LLP Spets-Tech-1 have until December 23, 2009, to
submit proofs of claim to:
The Specialized Inter-Regional
Economic Court of South Kazakhstan
Tynybaev Str. 42
Shymkent
South Kazakhstan
Kazakhstan
The court commenced bankruptcy proceedings against the company on
September 23, 2009.
UBS LTD: Creditors Must File Claims by December 23
--------------------------------------------------
Creditors of LLP UBS Ltd. have until December 23, 2009, to submit
proofs of claim to:
Zelenaya Str. 40
Baiserke
Ilyisky District
Almaty
Kazakhstan
The Specialized Inter-Regional Economic Court of Almaty commenced
bankruptcy proceedings against the company on August 24, 2009,
after finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of Almaty
Baizakov Str. 273b
Almaty
Kazakhstan
===================
K Y R G Y Z S T A N
===================
AMIS DESIGN: Creditors Must File Claims by January 6
----------------------------------------------------
LLC Amis Design is currently undergoing liquidation. Creditors
have until January 6, 2010, to submit proofs of claim to:
Micro District 5, 71-15
Bishkek
Kyrgyzstan
Tel: (0-772) 36-63-08
HIM TRADE: Creditors Must File Claims by January 6
--------------------------------------------------
LLC Him Trade is currently undergoing liquidation. Creditors have
until January 6, 2010, to submit proofs of claim to:
Elebaev Str. 1b, 47
Bishkek
Kyrgyzstan
===========
L A T V I A
===========
* LATVIA: At Risk of Negative Ratings Actions, Fitch Says
---------------------------------------------------------
Fitch Ratings says in a new report that the Baltic countries'
sovereign ratings remain under downward pressure, with Latvia
('BB+'/Negative) and Lithuania ('BBB'/Negative) more at risk of
negative rating actions than Estonia ('BBB+'/Negative).
The Baltic countries' ratings are under pressure from the extent
of the recession, the risk of political fallout over multi-year
fiscal austerity measures, the pace of the deterioration of bank
asset quality and the risk of currency devaluation in Latvia.
Latvia's and Lithuania's ratings are also under pressure from the
sharp deterioration in public finances. Fitch forecasts that
Latvia's government debt will rise to 61% of GDP at end-2011, the
second-highest in the 'BB' range, and Lithuania's to 47%, above
the 'BBB' range forecast median of 38%. In contrast, Estonia's
fiscal consolidation has been the sharpest among the Baltic
countries, and its fiscal reserves, built up through successive
budget surpluses, mean government debt will remain the lowest in
the EU to the end of the forecast period in 2011.
Furthermore, Fitch believes Estonia could adopt the euro soonest.
The agency is forecasting a budget deficit of 4% of GDP in 2009
and 2.9% of GDP in 2010 which makes 2012 the most likely date for
Estonia to adopt the euro. However, if the EU judges that the 3%
of GDP reference value has only been exceeded "exceptionally and
temporarily" and that Estonia's medium-term budget plans to reduce
the deficit to under 3% are credible; or if the Estonian
government succeeds in delivering a budget deficit below the
reference value in 2009, then Estonia could join the eurozone in
2011. Indications that Estonia will meet the Maastricht criteria
for euro adoption would likely lead to positive rating action.
Fitch notes, nevertheless, that there is some uncertainty
regarding how the Maastricht inflation criterion might be
interpreted in assessing Estonia's application for euro zone
membership, namely whether a sustainable price performance is
consistent with deflation that is caused by a severe recession,
shortly after it was in double digits. Fitch believes 2015 is the
most likely date for Latvia and Lithuania to adopt the euro.
Fitch notes some signs that the precipitous decline of the Baltic
economies might be bottoming out. The pace of economic
contraction (on a seasonally adjusted quarter-on-quarter basis)
slowed in Q209 from Q109 for all three Baltic states while
Lithuania saw quarter-on-quarter growth in Q309, for the first
time since Q108. However, it is too early to judge a sustainable
rebound has started. Although large current account deficits,
which were a rating weakness for the Baltic countries, have
reversed rapidly, and inflation rates and real wages are also
coming down, more adjustment is needed. Fitch forecasts that
gross external debt and external financing needs will still be
large compared with regional and rated peers at end-2009.
=================
L I T H U A N I A
=================
* LITHUANIA: At Risk of Negative Rating Actions, Fitch Says
-----------------------------------------------------------
Fitch Ratings says in a new report that the Baltic countries'
sovereign ratings remain under downward pressure, with Latvia
('BB+'/Negative) and Lithuania ('BBB'/Negative) more at risk of
negative rating actions than Estonia ('BBB+'/Negative).
The Baltic countries' ratings are under pressure from the extent
of the recession, the risk of political fallout over multi-year
fiscal austerity measures, the pace of the deterioration of bank
asset quality and the risk of currency devaluation in Latvia.
Latvia's and Lithuania's ratings are also under pressure from the
sharp deterioration in public finances. Fitch forecasts that
Latvia's government debt will rise to 61% of GDP at end-2011, the
second-highest in the 'BB' range, and Lithuania's to 47%, above
the 'BBB' range forecast median of 38%. In contrast, Estonia's
fiscal consolidation has been the sharpest among the Baltic
countries, and its fiscal reserves, built up through successive
budget surpluses, mean government debt will remain the lowest in
the EU to the end of the forecast period in 2011.
Furthermore, Fitch believes Estonia could adopt the euro soonest.
The agency is forecasting a budget deficit of 4% of GDP in 2009
and 2.9% of GDP in 2010 which makes 2012 the most likely date for
Estonia to adopt the euro. However, if the EU judges that the 3%
of GDP reference value has only been exceeded "exceptionally and
temporarily" and that Estonia's medium-term budget plans to reduce
the deficit to under 3% are credible; or if the Estonian
government succeeds in delivering a budget deficit below the
reference value in 2009, then Estonia could join the eurozone in
2011. Indications that Estonia will meet the Maastricht criteria
for euro adoption would likely lead to positive rating action.
Fitch notes, nevertheless, that there is some uncertainty
regarding how the Maastricht inflation criterion might be
interpreted in assessing Estonia's application for euro zone
membership, namely whether a sustainable price performance is
consistent with deflation that is caused by a severe recession,
shortly after it was in double digits. Fitch believes 2015 is the
most likely date for Latvia and Lithuania to adopt the euro.
Fitch notes some signs that the precipitous decline of the Baltic
economies might be bottoming out. The pace of economic
contraction (on a seasonally adjusted quarter-on-quarter basis)
slowed in Q209 from Q109 for all three Baltic states while
Lithuania saw quarter-on-quarter growth in Q309, for the first
time since Q108. However, it is too early to judge a sustainable
rebound has started. Although large current account deficits,
which were a rating weakness for the Baltic countries, have
reversed rapidly, and inflation rates and real wages are also
coming down, more adjustment is needed. Fitch forecasts that
gross external debt and external financing needs will still be
large compared with regional and rated peers at end-2009.
===================
L U X E M B O U R G
===================
GSC EUROPEAN: Moody's Junks Ratings on Four Classes of Notes
------------------------------------------------------------
Moody's Investors Service took these rating actions on notes
issued by GSC European CDO II S.A.
-- EUR216,000,000 Class A1 Floating Rate Notes due 2020
(currently EUR212,355,864 outstanding), Downgraded to A2;
previously on 29 June 2005 Assigned Aaa;
-- EUR50,000,000 Class A1-D Delayed Draw Floating Rate Notes due
2020 (currently EUR49,156,450 outstanding), Downgraded to A2;
previously on 29 June 2005 Assigned Aaa;
-- EUR10,000,000 Class A2 Zero Coupon Accreting Notes due 2020
(currently EUR9,831,290 outstanding), Downgraded to A2;
previously on 29 June 2005 Assigned Aaa;
-- EUR25,000,000 Class B Floating Rate Notes due 2020,
Downgraded to Ba1; previously on 04 March 2009 Aa2 Placed
under Review for Possible Downgrade;
-- EUR16,500,000 Class C1 Floating Rate Deferrable Notes due
2020, Downgraded to B3; previously on 19 March 2009
Downgraded to Ba1 and Placed under Review for Possible
Downgrade;
-- EUR11,000,000 Class C2 Fixed Rate Deferrable Notes due 2020,
Downgraded to B3; previously on 19 March 2009 Downgraded to
Ba1 and Placed under Review for Possible Downgrade;
-- EUR16,000,000 Class D1 Floating Rate Deferrable Notes due
2020 (currently EUR16,355,640 outstanding), Downgraded to Ca;
previously on 19 March 2009 Downgraded to B1 and Placed under
Review for Possible Downgrade;
-- EUR2,000,000 Class D2 Floating Rate Deferrable Notes due 2020
(currently EUR2,044,460 outstanding), Downgraded to Ca;
previously on 19 March 2009 Downgraded to B1 and Placed under
Review for Possible Downgrade;
-- EUR4,000,000 Class E1 Floating Rate Deferrable Notes due 2020
(currently EUR4,159,300 outstanding), Downgraded to Ca;
previously on 19 March 2009 Downgraded to B3 and Placed under
Review for Possible Downgrade;
-- EUR7,500,000 Class E2 Fixed Rate Deferrable Notes due 2020
(currently EUR7,836,190 outstanding), Downgraded to Ca;
previously on 19 March 2009 Downgraded to B3 and Placed under
Review for Possible Downgrade;
-- EUR10,000,000 Class T Combination Notes due 2020, Downgraded
to A2; previously on 29 June 2005 Assigned Aaa;
-- EUR12,500,000 Class U Combination Notes due 2020, Downgraded
to A1; previously on 04 March 2009 Aa3 Placed under Review
for Possible Downgrade;
-- EUR4,000,000 Class V Combination Notes due 2020, Downgraded
to B3; previously on 04 March 2009 A3 Placed under Review for
Possible Downgrade;
-- EUR5,000,000 Class W Combination Notes due 2020, Downgraded
to Caa3; previously on 04 March 2009 Baa2 Placed under Review
for Possible Downgrade;
-- EUR13,500,000 Class X Combination Notes due 2020, Downgraded
to Caa1; previously on 04 March 2009 Baa2 Placed under Review
for Possible Downgrade;
-- EUR10,000,000 Class Y Combination Notes due 2020, Downgraded
to Ca; previously on 04 March 2009 Ba3 Placed under Review
for Possible Downgrade;
This transaction is a managed cash leveraged loan collateralized
loan obligation with exposure to predominantly European senior
secured loans, as well as 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 severe 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', an increase in the amount of defaulted
securities, an increase in the proportion of securities from
issuers rated Caa1 and below, and significant failure of the Class
C Overcollateralisation Test, the Class D Overcollateralisation
Test, and the Class E Overcollateralisation Test resulting in
insufficient par coverage of the rated notes. The Class A Notes
have been paid down due to the failure of the Class C
Overcollateralisation TeSt. In addition, the Class D and the Class
E notes have had deferred intereSt. 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
modeled, 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.
=====================
N E T H E R L A N D S
=====================
LEOPARD CLO: Moody's Cuts Rating on Class E Notes to 'Caa2'
-----------------------------------------------------------
Moody's Investors Service took these rating actions on notes
issued by Leopard CLO IV B.V. Given that this is a relatively
well-performing CLO, the Class A Notes remain Aaa. The
transaction is in compliance with all collateral quality tests and
in particular, the weighted average rating factor, which only
showed minor deterioration over the last year (from 2447 reported
in January 2009 to 2539 currently), is lower than the test level
of 2620.
-- EUR26,250,000 Class B Senior Secured Floating Rate Notes due
2022 Notes, Downgraded to A3; previously on March 4, 2009 Aa2
Placed Under Review for Possible Downgrade
-- EUR15,500,000 Class C1 Senior Secured Deferrable Floating
Rate Notes due 2022 Notes, Confirmed at Baa3; previously on
March 19, 2009 Downgraded to Baa3 and Placed Under Review for
Possible Downgrade
-- EUR7,000,000 Class C2 Senior Secured Deferrable Fixed Rate
Notes due 2022 Notes, Confirmed at Baa3; previously on
March 19, 2009 Downgraded to Baa3 and Placed Under Review for
Possible Downgrade
-- EUR20,650,000 Class D Senior Secured Deferrable Floating
Rate Notes due 2022 Notes, Confirmed at B1; previously on
March 19, 2009 Downgraded to B1 and Placed Under Review for
Possible Downgrade
-- EUR11,250,000 Class E Senior Secured Deferrable Floating
Rate Notes due 2022 Notes, Downgraded to Caa2; previously on
March 19, 2009 Downgraded to Caa1 and Placed Under Review for
Possible Downgrade
-- EUR10,000,000 Class O Combination Notes due 2022 Notes
(currently EUR9,765,354 outstanding), Downgraded to A3;
previously on March 4, 2009 Aa2 Placed Under Review for
Possible Downgrade
-- EUR6,000,000 Class W Combination Notes due 2022 Notes
(currently EUR4,731,083 outstanding), Downgraded to Baa3;
previously on March 4, 2009 Baa1 Placed Under Review for
Possible Downgrade
The ratings assigned to the Class O Combination Notes and Class W
Combination Notes address the repayment of the Rated Balance on or
before the legal final maturity. Moody's outstanding Rated
Balance on the Combinations Notes may not necessarily correspond
to the outstanding notional amounts reported by the trustee.
This transaction is a managed cash leveraged loan collateralized
loan obligation with exposure to predominantly European senior
secured loans, as well as some mezzanine loans and second liens
exposures (22%).
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 moderate credit deterioration of the underlying
portfolio. This is observed through an increase in the amount of
defaulted securities (currently 3% of the portfolio) and an
increase in the proportion of securities from issuers rated Caa1
and below (currently less than 10% of the portfolio). The
portfolio weighted average rating factor 'WARF' is currently 2539.
Despite this deterioration, the coverage tests are currently all
in compliance. 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.
LYONDELL CHEMICAL: Has Nod to Amend Euro Securitization Program
---------------------------------------------------------------
In June 2006, non-Debtors Basell Sales & Marketing Company BV,
as seller and servicer; Basell Polyolefins Collections Limited,
as master purchaser; Citicorp Trustee Company Limited, as
security trustee; and Citibank, N.A., as financing agent, entered
into a joint receivables securitization program known as the
European Securitization Program, which provides funding up to
EUR450 million to certain of Debtor LyondellBasell Industries AF
S.C.A.'s European non-Debtor subsidiaries. In June 2009, the
parties amended the European Securitization Program to add
Lyondell Chemie Nederland BV as a seller and servicer on
substantially the same terms as Basell Sales. As previously
reported, LBI received approval from the Court to assume parent
undertakings with respect to Basell Sales and enter into a
postpetition parent undertaking with respect to Lyondell
Chemical.
Pursuant to the European Securitization Program, receivables
generated by the non-Debtor subsidiaries in Europe are
transferred on a daily basis to a bankruptcy remote special
purpose entity, Basell Polyolefins, to support the funding
provided by various commercial lenders. The European
Securitization Program has been a significant liquidity source
for LyondellBasell's European businesses throughout the Debtors'
Chapter 11 cases. As of the end of August 2009, EUR171 million
was funded under the European Securitization Program.
Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft LLP, in
New York, discloses that the European Securitization Program is
scheduled to mature on December 15, 2009, simultaneous with the
original maturity date of the Debtors' DIP Financing. In October
2009, the maturity date of the DIP Financing was extended from
December 15, 2009, to February 3, 2010. Thus, LBI executed a
deed of amendment with the parties to the European Securitization
Program to make the maturity date of the European Securitization
Program coterminous with the DIP Financing. A full-text copy of
the Amendment Deed is available for free at:
http://bankrupt.com/misc/Lyondell_DeedofAmendment.pdf
Mr. Ellenberg points out that it is a condition precedent to the
effectiveness of the Amendment Deed that the Court authorize LBI
to execute the Amendment Deed and to perform its undertakings
under the European Securitization Program, which include
providing the lenders with updated financials on a quarterly and
yearly basis and its obligations under the Parent Undertakings.
He maintains that the European Securitization Program is
essential to LyondellBasell's continued operations in Europe.
The Debtors sought and obtained approval for LBI to:
(a) execute the Amendment Deed; and
(b) continue to perform under the European Securitization
Program, as amended.
Judge Gerber held that the order will not affect the validity or
priority of any claims against Debtor LyondellBasell Industries AF
S.C.A. arising under the European Securitization Program and
allowed pursuant to the order
granting the Debtors' Motion to Amend and Assumed Undertaking
Agreement entered on June 26, 2009.
About Lyondell Chemical
LyondellBasell Industries is one of the world's largest polymers,
petrochemicals and fuels companies. It is the global leader in
polyolefins technology, production and marketing; a pioneer in
propylene oxide and derivatives; and a significant producer of
fuels and refined products, including biofuels. Through research
and development, LyondellBasell develops innovative materials and
technologies that deliver exceptional customer value and products
that improve quality of life for people around the world.
Headquartered in The Netherlands, LyondellBasell --
http://www.lyondellbasell.com/-- is privately owned by Access
Industries.
Basell AF and Lyondell Chemical Company merged operations in 2007
to form LyondellBasell Industries, the world's third largest
independent chemical company. LyondellBasell became saddled with
debt as part of the US$12.7 billion merger. On January 6, 2009,
LyondellBasell Industries' U.S. operations and one of its European
holding companies -- Basell Germany Holdings GmbH -- filed
voluntary petitions to reorganize under Chapter 11 of the U.S.
Bankruptcy Code to facilitate a restructuring of the company's
debts. The case is In re Lyondell Chemical Company, et al.,
Bankr. S.D.N.Y. Lead Case No. 09-10023). Seventy-nine Lyondell
entities, including Equistar Chemicals, LP, Lyondell Chemical
Company, Millennium Chemicals Inc., and Wyatt Industries, Inc.
filed for Chapter 11. In May 2009, one of the cases was dismissed
-- Case No. 09-10068 -- because it is duplicative of Case No. 09-
10040 relating to Debtor Glidden Latin America Holdings.
The Hon. Robert E. Gerber presides over the case. Deryck A.
Palmer, Esq., at Cadwalader, Wickersham & Taft LLP, in New York,
serves as the Debtors' bankruptcy counsel. Evercore Partners
serves as financial advisors, and Alix Partners and its subsidiary
AP Services LLC, serves as restructuring advisors. AlixPartners'
Kevin M. McShea acts as the Debtors' Chief Restructuring Officer.
Clifford Chance LLP serves as restructuring advisors to the
European entities. Lyondell Chemical estimated that consolidated
assets total US$27.12 billion and debts total US$19.34 billion as
of the bankruptcy filing date.
Lyondell has obtained approximately US$8 billion in DIP financing
to fund continuing operations. The DIP financing includes two
credit agreements: a US$6.5 billion term loan, which comprises a
US$3.25 billion in new loans and a US$3.25 billion roll-up of
existing loans; and a US$1.57 billion asset-backed lending
facility.
Luxembourg-based LyondellBasell Industries AF S.C.A. and another
affiliate were voluntarily added to Lyondell Chemical's
reorganization filing under Chapter 11 on April 24, 2009, in order
to seek protection against claims by certain financial and U.S.
trade creditors. On May 8, 2009, LyondellBasell Industries added
13 non-operating entities to Lyondell Chemical Company's
reorganization filing under Chapter 11 of the U.S. Bankruptcy
Code. All of the entities are U.S. companies and were added to
the original Chapter 11 filing for administrative purposes. The
filings will have no impact on current business or operations as
none of the entities manufactures or sells products.
Bankruptcy Creditors' Service, Inc., publishes Lyondell Bankruptcy
News. The newsletter tracks the Chapter 11 proceeding undertaken
by Lyondell Chemical Company and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
===========
R U S S I A
===========
AVTOVAZ OAO: Renault to Take Over Parts Purchasing Via New Unit
---------------------------------------------------------------
Laurence Frost at Bloomberg News reports that Renault SA said it
will take over responsibility for parts purchasing at OAO AvtoVAZ
to "clean up" the supplier network and cut costs.
Bloomberg relates Gerard Detourbet, the head of Renault's low-cost
program, said Tuesday it will "centralize purchasing for Renault,
Nissan and Lada" models in a new unit.
"There's a lot of work to be done to clean up and simplify the
supplier network," Bloomberg quoted Mr. Detourbet as saying before
a briefing near the carmaker's headquarters in the Paris suburb of
Boulogne-Billancourt.
Bloomberg recalls Renault agreed Nov. 27 to transfer technology
worth EUR240 million (US$355 million) to AvtoVAZ and assemble new
models at its Togliatti factory with 44% -owned Japanese affiliate
Nissan Motor Co. After paying US$1 billion for its AvtoVAZ stake
in 2007, Renault pledged to help the Russian carmaker restructure
supplier networks that have been blighted by graft and
inefficiencies, Bloomberg recounts.
Mr. Detourbet, as cited by Bloomberg, said the new purchasing unit
will be set up outside the AvtoVAZ management structure.
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. 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.
CARGO AUTOMOBILE: Creditors Must File Claims by December 13
-----------------------------------------------------------
Creditors of OJSC Cargo Automobile Operating Company (TIN
7801004377, PSRN 1027800553142) have until December 13, 2009, to
submit proofs of claims to:
A. Presnukhin
Insolvency Manager
Office 205
Angliyskiy Prospect 3
190121 Saint-Petersburg
Russia
The Arbitration Court of Saint-Petersburg will convene at
10:00 a.m. on April 27, 2010, to hear bankruptcy proceedings. The
case is docketed under Case No. ?56–68709/2009.
The Debtor can be reached at:
OJSC Cargo Automobile Operating Company
Sredniy Prospect V.O. 85
199026 Saint-Petersburg
Russia
CHEBOKSARSKAYA SEWING: Creditors Must File Claims by December 17
----------------------------------------------------------------
Creditors of LLC Cheboksarskaya Sewing Company (TIN 2127024711,
PSRN 1052182800207) have until December 17, 2009, to submit proofs
of claims to:
A. Sakhalkina
Insolvency Manager
Prospect 9 Pyatiletki 4A
428027 Cheboksary
Russia
The Arbitration Court of Chuvashia commenced bankruptcy
proceedings against the company after finding it insolvent. The
case is docketed under Case No. ?79–5602/2009.
ENEL OJSC: Moody's Affirms Corporate Family Rating at 'Ba3'
-----------------------------------------------------------
Moody's Investors Service has affirmed the corporate family rating
of OJSC Enel OGK-5, the Russian wholesale thermal power generator,
at Ba3. The rating outlook is stable. At the same time, Moody's
Interfax Rating Agency, which is majority owned by Moody's,
affirmed the company's Aa3.ru national scale rating.
The rating affirmation considers Enel OGK-5's relatively high
business risk profile as a wholesale thermal power generator
operating in the still developing regulatory and market framework
of the Russian power sector, and, more broadly, immature domestic
operating environment, with risks heightened by the currently weak
economic conditions. The affirmation also considers the company's
reasonably sustainable financial performance, medium-term
financial prospects and liquidity profile and advantages of its
shareholder structure, which is dominated by the Italian leading
utility Enel SpA (rated A2/Negative, controls a 55.86% stake in
Enel OGK-5) and has included the Russian government (rated
Baa1/Stable) as a blocking shareholder (a 26.43% stake).
Moody's expects the company to exhibit leverage at around 3.0x
Debt/ EBITDA at end-2009 and materially decreasing going forward,
with FFO interest and debt coverage unlikely to deteriorate below
3.5x and 20%, respectively, under reasonable scenarios for the
next few years (the credit metrics incorporate Moody's standard
adjustments). The scenarios factor in the company's balanced and
well-spread RUB52 billion investment programme for 2009-2013, with
a peak investment in 2009. Enel OGK-5 is expected to materially
reduce negative free cash flow the coming years.
Moody's takes comfort from the company's good access to both the
domestic and foreign financial markets, including its long-term
facilities with the EBRD and ABN-Amro Bank to fund the investment
programme, which supports the company's liquidity position. A
sizable cushion under bank covenants is positively incorporated
into the liquidity assessment. Given a material share of the
foreign currency debt in the company's total debt, the agency
notes the company's foreign currency exposure. However, the
agency expects the company to continue to manage prudently its
liquidity profile, based also on available support from its
controlling beneficiary shareholder Enel.
Moody's has observed the evolution of Enel OGK-5's shareholder
structure and interaction between its key shareholders, namely
Enel and the Russian government, over the past few years. The
agency notes the control and sustainable dominance over the
company established by Enel and the co-operating attitude towards
this dominance demonstrated by the Russian government. Moody's
also takes into account that so far direct involvement of the
Russian government is being transformed now into indirect
participation via the InterRAO holding, which is to receive under
its management the government's stake in Enel OGK-5.
As a result, Moody's has decided that it would no longer classify
Enel OGK-5 as a government-related issuer under Moody's rating
methodology for GRIs. However, this decision has no rating
implications for Enel OGK-5 and contributes to the latter's
ratings affirmation. Moody's considers that the assumption of
potential shareholder support, which provides uplift to the
company's B1-equivalent standalone credit assessment by one notch
to the Ba3/Aa3.ru rating, remains appropriate in the context of
Enel as the controlling shareholder.
The previous rating action on the company was implemented on 4
April 2007, when Moody's assigned Loss Given Default Assessments
in EMEA for speculative-grade corporate families, including Enel
OGK-5 (named OGK-5 at that time). On 16 July 2008, following the
change of the outlook on the Russia's sovereign rating, Moody's
said that the ratings and outlook of a number of Russian
government-related issuers, including Enel OGK-5 (named OGK-5 at
that time), were unaffected.
Enel OGK-5 (former OGK-5) is one of Russia's six wholesale thermal
power generation companies established as part of the
restructuring of RAO UES of Russia, the Russian state-controlled
dominant integrated electricity group, which ceased to exist in
July 2008. The company, named OGK-5 until late June 2009, was a
pilot power generator spun off in the course of the RAO UES
restructuring. Enel OGK-5 is controlled by leading Italian
electric utility Enel SpA via Enel Investment Holding B.V., which
owns a stake of 55.86% in the company. The Russian government,
represented by the Federal Property Agency, has directly owned
26.43% of Enel OGK-5. Enel OGK-5 has four fossil fuel-fired
plants with total installed capacity of 8.7GW located in the
central part of Russia, in the Urals and in the south of the
country. The company posted 2008 revenues of RUB42.8 billion
(US$1.7 billion), with electricity and capacity sales accounting
for around 95% of the revenues.
NOMOS CAPITAL: Moody's Assigns 'Ba3' Rating on Upcoming Loan
------------------------------------------------------------
Moody's Investors Service has assigned a rating of Ba3 to the
upcoming loan participation notes to be issued by Nomos Capital
Plc, incorporated under the laws of Ireland, for the sole purpose
of providing a loan to Nomos Bank (Russia). The expected tenor of
the Notes is three years while the amount has yet to be
determined. The outlook on the rating is negative.
Moody's says that the Ba3 rating assigned to the notes is based on
the fundamental credit quality of the underlying obligor, Nomos
Bank, rated Ba3/NP/D- (negative). It does not benefit from any
support from the bank's shareholders or the Russian financial
authorities. The rating reflects the status of the bank's
obligations under the loan received from Nomos Capital Plc that
will rank at least pari passu in right of payment with all other
unsecured and unsubordinated obligations of Nomos Bank, except as
otherwise provided by mandatory provisions of applicable law.
According to the terms and conditions of the loan agreement, Nomos
Bank must maintain a total capital adequacy ratio of at least 10%
(20.74% at end-H1 2009) as well as comply with the Central Bank's
capital regulations. Moody's cautions that, if the financial
condition of Nomos Bank were to deteriorate such that these
covenants come close to being breached, the ratings of the bank
and the notes would become under significant downward pressure.
Other features of the notes include negative pledge covenants,
limitations on mergers and disposals, and transactions with
affiliates.
Moody's previous rating action on Nomos Bank was on 7 April 2009
when the outlook on the D- bank financial strength rating and Ba3
long-term global foreign currency deposit rating was changed to
negative from stable.
Headquartered in Moscow, Russian Federation, Nomos Bank reported
total consolidated assets of US$8.1 billion, in accordance with
IFRS, at 30 June 2009. Nomos Capital Plc is the bank's special-
purpose vehicle, domiciled in Ireland.
SPETS-TEKH-STROY: Creditors Must File Claims by December 13
-----------------------------------------------------------
Creditors of LLC Spets-Tekh-Stroy (TIN 5507072690,PSRN
1055513000795) (Construction) have until December 13, 2009, to
submit proofs of claims to:
V. Nesterov
Temporary Insolvency Manager
Office 1
5 Armii Str. 4
644122 Omsk
Russia
The Arbitration Court of Omskaya will convene at 11:05 a.m. on
March 2, 2010, to hear bankruptcy supervision procedure. The case
is docketed under Case No. ?46–17630/2009.
The Debtor can be reached at:
LLC Spets-Tekh-Stroy
22 Dekabrya Str. 84
644015 Omsk
Russia
VOZNESENSKIY CONSTRUCTION: Creditors Must File Claims by Dec. 13
----------------------------------------------------------------
Creditors of LLC Voznesenskiy Construction Complex (TIN
7438020613, PSRN 1067438010958) have until December 13, 2009, to
submit proofs of claims to:
D. Akulinin
Temporary Insolvency Manager
Office 600
Krasina STr. 7
625003 Tumen
Russia
The Arbitration Court of Chelyabinskaya will convene at 3:00 p.m.
on February 18, 2010, to hear bankruptcy supervision procedure.
The case is docketed under Case No. ?76–13824/2009–52-241.
The Debtor can be reached at:
LLC Voznesenskiy Construction Complex
Shkolnaya Str. 5
Voznesenka
Sosnovy
456505 Chelyabinskaya
Russia
URAL-SIB-STROY: Creditors Must File Claims by December 13
---------------------------------------------------------
Creditors of LLC Ural-Sib-Stroy (TIN 4501126474, PSRN
1064501181194) have until December 13, 2009, to submit proofs of
claims to:
O. Artemov
Temporary Insolvency Manager
Post User Box 5
620033 Yekaterinburg
Russia
The Arbitration Court of Kurganskaya will convene on January 27,
2010, to hear bankruptcy supervision procedure. The case is
docketed under Case No. ?34–5427/2009.
The Debtor can be reached at:
LLC Ural-Sib-Stroy
Lenina Str. 5/200
Kurgan
640000 Kurganskaya
Russia
URAL-STROY-PROEKT: Creditors Must File Claims by December 13
------------------------------------------------------------
Creditors of CJSC Ural-Stroy-Proekt (TIN 6660120898, PSRN
1036603494784) have until December 13, 2009, to submit proofs of
claims to:
V. Maksimov
Temporary Insolvency Manager
Post User Box 370
Kremlevskaya Str. 13
420111 Kazan
Russia
The Arbitration Court of Sverdlovskaya will convene at 5:15 p.m.
on January 18, 2010, to hear bankruptcy supervision procedure.
The case is docketed under Case No. ?60–28016/2009-S11.
The Court is located at:
The Arbitration Court of Sverdlovskaya
Courtroom 502
Lenina Str. 34
Yekaterinburg
Russia
The Debtor can be reached at:
CJSC Ural-Stroy-Proekt
Malysheva Str. 145a/F
620049 Yekaterinburg
Russia
===========
S W E D E N
===========
GENERAL MOTORS: Saab Sells Unused Production Lines to China's BAIC
------------------------------------------------------------------
Robert Lindsay at Times Online reports that Saab, the Swedish car
manufacturer owned by General Motors, is understood to have sold
two unused production lines to Chinese carmaker BAIC.
According to Times Online, the deal with BAIC involves Saab
selling the production tools to make 9-5 and 9-3 models, which it
no longer produces.
As reported by the Troubled Company Reporter-Europe on Dec. 7,
2009, GM said its Board of Directors has received expressions of
interest in Saab since the conclusion of negotiations with
Koenigsegg Group AB. The Financial Times' John Reed reported GM
would sell or wind down Saab in February as part of a
restructuring plan mandated by the U.S. government, which became
its majority owner July, under which it is scaling back its
sprawling operations to focus on four core brands.
GM, Times Online says, is thought to have ruled out selling BAIC
the whole company, worried about transfer of technology.
About General Motors
General Motors Company -- http://www.gm.com/-- is one of the
world's largest automakers, tracing its roots back to 1908. With
its global headquarters in Detroit, GM employs 209,000 people in
every major region of the world and does business in some 140
countries. GM and its strategic partners produce cars and trucks
in 34 countries, and sell and service these vehicles through these
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Opel,
Vauxhall and Wuling. GM's largest national market is the United
States, followed by China, Brazil, the United Kingdom, Canada,
Russia and Germany. GM's OnStar subsidiary is the industry leader
in vehicle safety, security and information services.
GM acquired its operations from General Motors Company, n/k/a
Motors Liquidation Company, on July 10, 2009, pursuant to a sale
under Section 363 of the Bankruptcy Code. Motors Liquidation or
Old GM is the subject of a pending Chapter 11 reorganization case
before the U.S. Bankruptcy Court for the Southern District of New
York.
At September 30, 2009, GM had US$107.45 billion in total assets
against US$135.60 billion in total liabilities.
About Motors Liquidation
General Motors Corporation and three of its affiliates filed for
Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case
No. 09-50026). General Motors changed its name to Motors
Liquidation Co. following the sale of its key assets to a company
60.8% owned by the U.S. Government.
The Honorable Robert E. Gerber presides over the Chapter 11 cases.
Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H.
Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors
in their restructuring efforts. Al Koch at AP Services, LLC, an
affiliate of AlixPartners, LLP, serves as the Chief Executive
Officer for Motors Liquidation Company. GM is also represented by
Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as
counsel. Cravath, Swaine, & Moore LLP is providing legal advice
to the GM Board of Directors. GM's financial advisors are Morgan
Stanley, Evercore Partners and the Blackstone Group LLP.
Bankruptcy Creditors' Service, Inc., publishes General Motors
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by General Motors Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
=====================
S W I T Z E R L A N D
=====================
COMPOSITRON AG: Claims Filing Deadline is December 14
-----------------------------------------------------
Creditors of Compositron AG are requested to file their proofs of
claim by December 14, 2009, to:
Attesta AG
Mail box: 45
7002 Chur
Switzerland
The company is currently undergoing liquidation in Chur. The
decision about liquidation was accepted at an extraordinary
general meeting held on October 22, 2009.
FOGS DIENSTLEISTUNGEN: Claims Filing Deadline is December 14
------------------------------------------------------------
Creditors of Fogs Dienstleistungen GmbH are requested to file
their proofs of claim by December 14, 2009, to:
Marianne Lienhard
Spielhof 14a
8750 Glarus
Switzerland
The company is currently undergoing liquidation in Glarus. The
decision about liquidation was accepted at an extraordinary
general meeting held on October 27, 2009.
GUARDA LAI: Claims Filing Deadline is December 14
-------------------------------------------------
Creditors of Guarda Lai AG are requested to file their proofs of
claim by December 14, 2009, to:
Dr. Urs Wehinger
Liquidator
Riesbachstrasse 52
8008 Zurich
Switzerland
The company is currently undergoing liquidation in Zug. The
decision about liquidation was accepted at an extraordinary
general meeting held on October 21, 2009.
WILLING CASEIDE: Claims Filing Deadline is December 17
------------------------------------------------------
Creditors of Willing Caseide Knitwear AG are requested to file
their proofs of claim by December 17, 2009, to:
Mary Eggerschwiler
Liquidator
Oberer Graben 3
9000 St. Gallen
Switzerland
The company is currently undergoing liquidation in St. Gallen.
The decision about liquidation was accepted at a general meeting
held on September 17, 2009.
===========================
U N I T E D K I N G D O M
===========================
COMMONWEALTH BIOTECH: Posts US$633,200 Net Loss in Q3 2009
----------------------------------------------------------
Commonwealth Biotechnologies, Inc., reported a net loss of
US$633,204 on total revenues of US$2,030,663 for the three months
ended September 30, 2009, compared with a net loss of US$3,787,662
on total revenues of US$2,206,814 for the same period of 2008.
As a result of the modification of the debt to LH Financial in
2008, the Company incurred a loss on debt extinguishment of
US$1,202,419 during the 2008 quarter.
The Company reported a loss from discontinued operations of
US$1,121,759 in the 2008 quarter related to the operation of
Exelgen Limited, England, the Company's wholly owned subsidiary.
On September 23, 2008, Exelgen into administration under the
jurisdiction of the High Court of Justice, Bristol District
Registry, Chancery Division, in the United Kingdom. Exelgen
appointed PricewaterhouseCoopers LLP as administrator.
Administration is the United Kingdom's insolvency process, which
is governed by the Enterprise Act 2002. The Company's decision to
enter administration for the Exelgen operation was based upon the
subsidiary's inability to support existing operational costs
despite restructuring, combined with the lack of securing new
contracts.
For the nine months ended September 30, 2009, the Company reported
a net loss of US$2,005,412 on total revenues of US$6,265,228,
compared with a net loss of US$5,710,000 on total revenues of
US$7,351,630 for the same period of 2008.
Balance Sheet
At September 30, 2009, the Company's consolidated balance sheets
showed total assets of US$7,870,843, total liabilities of
US$7,158,650, and total stockholders' equity of US$712,193.
The Company's consolidated balance sheets at September 30, 2009,
also showed strained liquidity with US$1,442,650 in total current
assets available to pay US$4,631,890 in total current liabilities.
A full-text copy of the Company's Form 10-Q is available for free
at http://researcharchives.com/t/s?4b4a
Going Concern Doubt
The Company's recurring losses from operations and inability to
generate sufficient cash flow to meet its obligations and sustain
its operations raise substantial doubt about the Company's ability
to continue as a going concern. According to Commonwealth, if it
is unable to improve operating results and meet its debt
obligations, the Company may have to cease operations.
About Commonwealth Biotechnologies
Based in Richmond, Va., Commonwealth Biotechnologies, Inc.
(NASDAQ: CBTE) -- http://www.cbi-biotech.com/-- offers state-of-
the-art research and development products and services to the
global life sciences industry. CBI now operates through: (1) CBI
Services, a discovery phase contract research organization; (2)
Fairfax Identity Laboratories, a DNA reference business; (3)
Mimotopes Pty Ltd, Melbourne, Australia, a peptide and discovery
chemistry business; and (4) Venturepharm (Asia), a contract
research consortium specializing in drug discovery and
development, process scale-up, formulation development, cGMP
manufacturing and clinical trial management.
COVENTRY AIRPORT: Shut Down by Owner on Financial Difficulties
--------------------------------------------------------------
BBC News reports that Coventry Airport has been closed due to
financial difficulties.
According to the report, West Midlands International Airport,
which owns it, had been due to appear before the High Court on
Wednesday to respond to a winding-up petition against Coventry
Airport.
The report relates the Civil Aviation Authority said the airport's
owner had issued a Notice to Airmen, informing pilots and aircraft
that the airport was no longer operational. The report notes the
CAA said air traffic control at the airport had also ceased
operating and overflying flights would be handled by other
airports in the area, including Birmingham.
The airport has operated as a cargo terminal and a base for
executive jets and aviation-related businesses since Thomsonfly
ceased its operations there, the report discloses.
COVENTRY RFC: Placed Into Administration
----------------------------------------
Confusion surrounding the legal status of Coventry RFC Ltd, the
city's troubled Championship rugby club, came to an end last
Friday when the clubs affairs were placed into the hands of joint
administrators John Kelly and Bob Maxwell of corporate recovery
specialists Begbies Traynor.
Begbies Traynor regional managing partner John Kelly said his
immediate task would be to assess whether the club has enough
funds to continue.
"We are aware the November salaries were not paid and we will be
doing all we can to attract future funds into the club. There are
a number of commercial activities at the club which should all go
ahead," Mr. Kelly said.
Mr. Kelly acknowledged the co-operation of the bank and Coventry
City Council, which enabled the appointment to be made and the
game against Bedford Tuesday to take place at the Ricoh Arena.
John Kelly is no stranger to the club having dealt with it many
years ago when it was an unincorporated club.
He said he will be talking to the RFU about continued support and
he is anxious to hear from anyone who may be interested in funding
the club in the future either in whole or in part.
In the meantime, supporters can help the club by not only
attending future games but bringing along extra supporters, he
said.
EUROMASTR PLC: S&P Affirms Rating on Class E Notes at 'CCC'
-----------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on EuroMASTR PLC's class
B, C, and D series 2007-1V notes. At the same time, S&P affirmed
its ratings on the remaining notes in this residential mortgage-
backed securities transaction.
These downgrades follow S&P's credit and cash flow analysis of the
most recent loan-level information. S&P's analysis showed that
the credit enhancement available to the class B, C, and D notes
was, in S&P's opinion, not commensurate with the existing ratings
and S&P therefore lowered them accordingly.
According to the investor reports, cumulative losses in September
2009 were 2.99% compared with 1.66% in March. This is currently
the highest level of all U.K. nonconforming transactions that
closed in 2007, which S&P rate. The weighted-average loss
severity since closing is 32.71%. As a consequence of these
losses, the reserve fund has now been fully drawn and there is an
uncleared class E note principal deficiency ledger balance of
GBP357,894.
Loan performance in the pool continues to deteriorate. In S&P's
view, 120+ day delinquencies (including repossessions) are high
and increased to 19.67% in September from 14.47% in June. S&P
believes this increase can be partly attributed to technical
arrears as loans paying a higher fixed rate of interest revert to
a lower floating rate linked to three-month LIBOR. In S&P's
analysis, S&P assume that a high percentage of these loans will
default.
A portfolio of first-ranking nonconforming residential mortgages
back the notes, which were issued in 2007. Victoria Mortgage
Funding originated the portfolio, which is secured over owner-
occupied and buy-to-let properties in England and Wales. Victoria
Mortgage Funding entered administration in September 2007. The
loans continue to be serviced by Vertex.
Ratings List
EuroMASTR PLC
GBP200.75 Million Mortgage-Backed Floating-Rate Notes
Series 2007-1V
Ratings Lowered And Removed From CreditWatch Negative
Rating
------
Class To From
----- -- ----
B A+ AA/Watch Neg
C BBB A-/Watch Neg
D B BB-/Watch Neg
Ratings Affirmed
Class Rating
----- ------
A1 AAA
A2 AAA
MERCs AAA
E CCC
KAUPTHING SINGER: To Pay 20 Pence on the Pound to Creditors
-----------------------------------------------------------
Bryan Keogh at Bloomberg News reports that Ernst & Young LLP, the
administrators for London-based Kaupthing Singer & Friedlander
Ltd., said it will make a distribution of 10 pence (16 cents) on
the pound to eligible creditors of the failed bank.
According to Bloomberg, the administrators intend to make the
payments on or around December 9 to creditors whose "proofs of
debt" have been accepted.
Bloomberg recalls the U.K. government seized Kaupthing Singer &
Friedlander in October 2008, saying it couldn’t meet its
obligations to depositors.
Kaupthing Singer & Friedlander Ltd. is a former unit of failed
Icelandic lender Kaupthing Bank Hf.
LEEK FINANCE: Fitch Affirms Ratings on Two Classes of Notes at B+
-----------------------------------------------------------------
Fitch Ratings has upgraded five tranches of the Leek Finance
Series and affirmed 50 others. The series consist of UK non-
conforming RMBS transactions with loans originated by Platform
Funding Limited, Kensington Mortgage Company, GMAC RFC Ltd.
The rating actions are:
Leek Finance Number Fourteen plc (Leek 14):
-- Class A2a (ISIN XS0204046634): affirmed at 'AAA'; Outlook
Stable; assigned 'LS-2'
-- Class A2b (ISIN XS0204210883): affirmed at 'AAA'; Outlook
Stable; assigned 'LS-2'
-- Class A2c (ISIN XS0204048093): affirmed at 'AAA'; Outlook
Stable; assigned 'LS-2'
-- Class Ma (ISIN XS0204048689): affirmed at 'AAA'; Outlook
Stable; assigned 'LS-1'
-- Class Mc (ISIN XS0204049901): affirmed at 'AAA'; Outlook
Stable; assigned 'LS-1'
-- Class Ba (ISIN XS0204050586): affirmed at 'AAA'; Outlook
Stable; assigned 'LS-1'
-- Class Bc (ISIN XS0204050743): affirmed at 'AAA'; Outlook
Stable ; assigned 'LS-1'
-- Class Ca (ISIN XS0204051477): affirmed at 'A+'; Outlook
Positive; assigned 'LS-2'
-- Class Cc (ISIN XS0204051717): affirmed at 'A+'; Outlook
Positive; assigned 'LS-2'
Leek Finance Number Fifteen plc (Leek 15):
-- Class Aa (ISIN XS0216896372): affirmed at 'AAA'; Outlook
Stable; assigned 'LS-1'
-- Class Ab (ISIN XS0216896703): affirmed at 'AAA'; Outlook
Stable; assigned 'LS-1'
-- Class Ac (ISIN XS0216897859): affirmed at 'AAA'; Outlook
Stable; assigned 'LS-1'
-- Class Ma (ISIN XS0216898238): affirmed at 'AAA'; Outlook
Stable; assigned 'LS-1'
-- Class Mc (ISIN XS0216898741): affirmed at 'AAA'; Outlook
Stable; assigned 'LS-1'
-- Class Ba (ISIN XS0216900075): upgraded to 'AA+' from 'AA';
Outlook Stable; assigned 'LS-2'
-- Class Bc (ISIN XS0216900406): upgraded to 'AA+' from 'AA';
Outlook Stable; assigned 'LS-2'
-- Class Cc (ISIN XS0216901552) affirmed at 'BBB+; Outlook
Positive; assigned 'LS-2'
Leek Finance Number Sixteen plc (Leek 16):
-- Class A2a (ISIN XS0232823483): affirmed at 'AAA'; Outlook
Stable; assigned 'LS-1'
-- Class A2b (ISIN XS0232825934): affirmed at 'AAA'; Outlook
Stable; assigned 'LS-1'
-- Class A2c (ISIN XS0232827633): affirmed at 'AAA'; Outlook
Stable; assigned 'LS-1'
-- Class Ma (ISIN XS0232824457): upgraded to 'AAA' from 'AA+';
Outlook Stable; assigned 'LS-2'
-- Class Mc (ISIN XS0232828284): upgraded to 'AAA' from 'AA+';
Outlook Stable; assigned 'LS-2'
-- Class Ba (ISIN XS0232824887): affirmed at 'A+'; Outlook
Positive; assigned 'LS-2'
-- Class Bc (ISIN XS0232828953): affirmed at 'A+'; Outlook
Positive; assigned 'LS-2'
-- Class Cc (ISIN XS0232829332): affirmed at 'BBB'; Outlook
Positive; assigned 'LS-3'
Leek Finance Number Seventeen plc (Leek 17):
-- Class A2a (ISIN XS0249475137): affirmed at 'AAA'; Outlook
Stable; assigned 'LS-1'
-- Class A2b (ISIN XS0249475483): affirmed at 'AAA'; Outlook
Stable; assigned 'LS-1'
-- Class A2c (ISIN XS0249475723): affirmed at 'AAA'; Outlook
Stable; assigned 'LS-1'
-- Class Mc (ISIN XS0249476374): upgraded to 'AA' from 'AA-';
Outlook Positive; assigned 'LS-2'
-- Class Ba (ISIN XS0249476531): affirmed at 'A-'; Outlook
Positive; assigned 'LS-2'
-- Class Bc (ISIN XS0249476705): affirmed at 'A-'; Outlook
Positive; assigned 'LS-2'
-- Class Cc (ISIN XS0249478073): affirmed at 'BBB-'; Outlook
Stable; assigned 'LS-2'
Leek Finance Number Eighteen plc (Leek 18):
-- Class A2a (ISIN XS0271276908): affirmed at 'AAA'; Outlook
Stable; assigned 'LS-1'
-- Class A2b (ISIN XS0271279670): affirmed at 'AAA'; Outlook
Stable; assigned 'LS-1'
-- Class A2c (ISIN XS0271280769): affirmed at 'AAA'; Outlook
Stable; assigned 'LS-1'
-- Class A2d (ISIN XS0271279837): affirmed at 'AAA'; Outlook
Stable; assigned 'LS-1'
-- Class Ma (ISIN XS0271277385): affirmed at 'AA-'; Outlook
Stable; assigned 'LS-2'
-- Class Mc (ISIN XS0271281734): affirmed at 'AA-'; Outlook
Stable; assigned 'LS-2'
-- Class Ba (ISIN XS0271277971): affirmed at 'A'; Outlook
Stable; assigned 'LS-2'
-- Class Bc (ISIN XS0271281817): affirmed at 'A'; Outlook
Stable; assigned 'LS-2'
-- Class Ca (ISIN XS0271278433): affirmed at 'BBB'; Outlook
Stable; assigned 'LS-3'
-- Class Cc (ISIN XS0271282039): affirmed at 'BBB'; Outlook
Stable; assigned 'LS-3'
Leek Finance Number Nineteen plc (Leek 19):
-- Class A2a (ISIN XS0294479778) affirmed at 'AAA'; Outlook
Stable; assigned 'LS-1'
-- Class A2b (ISIN XS0294480602) affirmed at 'AAA'; Outlook
Stable; assigned 'LS-1'
-- Class A2c (ISIN XS0294482483) affirmed at 'AAA'; Outlook
Stable; assigned 'LS-1'
-- Class Ma (ISIN XS0294483614) affirmed at 'AA'; Outlook
Stable; assigned 'LS-1'
-- Class Mc (ISIN XS0294484349) affirmed at 'AA'; Outlook
Stable; assigned 'LS-1'
-- Class Ba (ISIN XS0294484778) affirmed at 'A'; Outlook Stable;
assigned 'LS-2'
-- Class Bc (ISIN XS0294485072) affirmed at 'A'; Outlook Stable;
assigned 'LS-2'
-- Class Ca (ISIN XS0294485403) affirmed at 'BBB'; Outlook
Negative; assigned 'LS-2'
-- Class Cc (ISIN XS0294486476) affirmed at 'BBB'; Outlook
Negative; assigned 'LS-2'.
-- Class Da (ISIN XS0294486559) affirmed at 'B+' Outlook
Negative; assigned 'LS-3'
-- Class Dc (ISIN XS0294486716) affirmed at 'B+'; Outlook
Negative; assigned 'LS-3'
Leek Finance Number Twenty plc (Leek 20):
-- Class A1a (ISIN XS0367880621) affirmed at 'AAA'; Outlook
Stable; assigned 'LS-1'
Leek Finance Number Twenty One plc (Leek 21):
-- Class A1a (ISIN XS0389373167) affirmed at 'AAA'; Outlook
Stable; assigned 'LS-1'
The growth in credit enhancement since issuance across all
transactions in the series has resulted in the affirmation or
upgrade of all tranches. This is despite deterioration in the
collateral performance underlying the notes. Arrears and loss
levels have increased over the last 18 months, although they are
now beginning to see some signs of stabilization.
Uniquely for the UK non-conforming sector the Leek transactions
contain a write-off mechanism to build over-collateralization by
trapping excess spread. This provides additional protection to
the transactions. The provisioning is made according to an
undisclosed formula by which loans are written off when the level
of delinquencies and possessions increases. Because the
calculation method is not disclosed Fitch gives no credit in its
analysis for any future growth in the level of OC. Effective
losses that come in above gross XS are offset against the OC; when
the OC is depleted, losses in excess of the XS are offset against
the reserve fund.
The performance of Leek 14 to 17 -- the more seasoned transactions
of the Series -- remains strong as delinquencies and cumulative
weighted average loss severity are low. For these transactions
loans more than three months in arrears as a percentage of the
current balance stand below 17% and cumulative WALS are lower than
23%. As a result, quarterly losses have remained limited, which
combined with significant credit enhancement growth since closing
has led to the positive outlooks and the upgrades of selected
tranches.
On the other hand, Leek 18 and later transactions are seeing
higher levels of loss severity and higher volumes of properties
being repossessed. This is resulting in higher cumulative losses
which are putting pressure on the available XS. The transaction
most affected to date is Leek 19 which has seen losses above
available XS in four of the last five interest payments dates.
Consequently, the OC of the transaction has declined to 0.01% in
September 2009 from 0.61% in June-2008. Fitch expects that
quarterly losses will continue to exceed XS in Leek 19 due to the
volume of current repossessions and the high WALS realized to
date. Therefore, as the OC has been almost depleted, it is
expected that the reserve fund will be drawn from the next IPD.
This is reflected in the Negative Outlooks of the most junior
tranches of the transaction. Similarly, Leek 18, 20 and 21 are
also seeing significant losses compared to available XS, and
although their OC has been increasing, this trend may reverse over
the next year.
Fitch has employed its credit cover multiple methodology under its
EMEA RMBS Surveillance Criteria to assess the level of credit
support available to each class of notes.
LEHMAN BROTHERS: Proposes Plan to Unfreeze US$11B in UK Assets
--------------------------------------------------------------
Lehman Brothers Holdings, Inc., submitted a "claim resolution
agreement" to hedge-fund creditors aimed to thaw about
US$11 billion in assets.
Under the plan being proposed to about 600 of Lehman's U.K.
clients, the estate would attempt to return US$11 billion in
assets sometime before April 2010 and close out their positions.
The Financial Time said about 50 clients make up the bulk of the
US$11 billion but, for the plan to be approved, 90%, or all, of
the affected clients must support it.
If the plan is rejected, "it could take years to ultimately
return all client assets," Steven Pearson, joint administrator of
Lehman's bankruptcy estate in the U.K. and a partner at
PricewaterhouseCoopers LLP, told the Wall Street Journal.
The plan comes after a U.K. court rejected the estate's attempt
to use a special legal tool called a "scheme of arrangement" to
speed the return of client assets.
Under the new proposal, Lehman's U.K. estate will also have a
"formal framework" to return assets recovered by Lehman's U.S.
estate to U.K. clients. Lehman's estate in the U.S. is "extremely
supportive of this resolution agreement," the Journal quoted
Daniel Ehrmann, a managing director at turnaround firm Alvarez &
Marsal and head of international operations for Lehman's U.S.
estate, as saying. "As one of [the U.K. estate's] unsecured
creditors, we would like to see this claims process expedited."
Lehman's U.K. estate held about US$35 billion in assets when
Lehman filed for bankruptcy. The U.K. estate, in a report dated
December 4, 2009, said it has gained control of US$40 billion of
securities and cash, including approximately:
-- US$13.7 billion of cash realizations, comprising of
US$10.2 billion for the benefit of LBIE's unsecured
creditors, US$900 million pre-administration cash receipts
held under the Financial Services Authority's Client Money
Rules and around US$2.6 billion in potential post-
administration client-related receipts;
-- US$11.3 billion in securities currently being held by LBIE,
comprising US$8.9 billion of potential client securities and
up to US$2.4 billion that are potentially held for the
benefit of LBIE's unsecured creditors;
-- US$13.3 billion in cash and securities that belong to clients
and have already been returned to those clients; and
-- US$1 billion of collateral held by third parties for LBIE's
clients, which has been released directly to those clients
at the instigation of the administrators.
The Administrators said they have filed claims on LBIE's behalf
against more than 20 of its affiliates totaling, as of
November 19, 2009, US$217.3 billion, including:
-- claims filed against LBHI-controlled entities totaling some
US$38.4 billion plus some US$90 billion of claims relating to
guarantees; and
-- some US$80 billion of gross claims have been filed against
other entities, including LBI, Lehman Brothers Finance SA,
and Lehman Brothers Japan.
A full-text copy of the December 4 Report is available for free
at http://bankrupt.com/misc/lehman_lbie041209.pdf
The Journal said clients will have until December 29, 2009, to
vote on the proposal. The estate said it hopes to set a deadline
with a U.K. court for further claims on the assets by the end of
February 2010, with a goal of returning assets before the end of
the first quarter, the report added.
The creditors' committee in the U.K. bankruptcy case includes
hedge-fund managers Ramius LLC, GLG Partners LP and Oceanwood
Capital Management LLP. Mr. Pearson told the Journal that the
U.K. estate has unanimous support from the committee.
The U.K. Court will convene a hearing on December 11, 2009, to
discuss on the relevant issues that have arisen in the
administration and as to applications currently pending or
planned by the Administrators.
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI
The Bankruptcy Court has approved Barclays Bank Plc's purchase of
Lehman Brothers' North American investment banking and capital
markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also
bought Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
NIPSON DIGITAL: MCR Appointed Administrator
-------------------------------------------
Geoffrey Bouchier and Paul Clark of MCR have been appointed Joint
Administrators of Nipson Digital Printing Systems plc. Founded in
1992, the company is the majority shareholder of Nipson SAS, a
French incorporated company specializing in producing state-of-
the-art high-speed digital printing systems.
NDPS was placed into administration on November 20, 2009,
following discussions with its major shareholders and creditors
that failed to reach an agreement that would enable the company to
secure its future.
Mr. Bouchier commented: "All shares have been suspended
indefinitely while we undertake a review the Company's assets and
seek a buyer for the shares in Nipson SAS.
The Administrators are currently working with the management of
NDPS in order to maximize the realization for the company's
creditors.
It should be noted that MCR are not appointed in respect of Nipson
SAS.
MCR is a non-conflict administrator that regularly handles
significant projects across a range of U.K. sectors.
NORTHERN ROCK: Shareholders Won't Be Eligible for Compensation
--------------------------------------------------------------
Northern Rock Plc shareholders won't be eligible for compensation
after the British bank became the first to be nationalized during
the credit crisis, Andrew MacAskill at Bloomberg News reports,
citing a government-appointed auditor.
Bloomberg relates accountants BDO LLP said in a statement
shareholders aren't owed money by the Treasury because Northern
Rock would have faced a GBP5.8-billion (US$9.5 billion) shortfall
had it been placed in administration with the assets sold. The
bank was instead nationalized in February 2008, Bloomberg notes.
Bloomberg recalls Northern Rock was taken over by the government
after nearly collapsing in 2007, when it had to seek emergency
funding from the Bank of England and then suffered a run on its
deposits. Shareholders of the bank lost a court bid earlier this
year to win compensation from the government after their stock was
rendered worthless when the bank was nationalized, Bloomberg
recounts.
According to Bloomberg, Northern Rock said it expects to complete
a plan to put its riskiest assets into a separate company by
January.
About Northern Rock
Headquartered in Newcastle upon Tyne, England, Northern Rock plc
-- http://www.northernrock.co.uk/-- deals with mortgages, savings
accounts, loans and insurance. The company also promotes secured
loans to its existing mortgage customers. The company had more
than US$200 billion in assets at the end of June 2007.
* * *
As reported by the Troubled Company Reporter-Europe on Nov. 25,
2009, Standard & Poor's Ratings Services said that it lowered its
rating on the US$100 million floating rate Upper Tier 2
subordinated debt instrument issued by Northern Rock PLC (A/Watch
Neg/A-1) to 'C' from 'CC'. The counterparty credit ratings on
Northern Rock are unaffected by this action.
SLP ENGINEERING: Three Customers to Keep Contracts
--------------------------------------------------
Following their appointment as joint administrators to a number of
SLP companies a week ago, Stephen Oldfield and Chris Pillar from
PricewaterhouseCoopers LLP disclosed that they have secured
further customer commitments for ongoing trading at Lowestoft.
The administrators met with over 1000 employees and agency staff
this week and announced that in addition to the support of the
major customer which was agreed upon appointment, three other
important customers have agreed to continuing work on their
contracts.
SLP, a Lowestoft-based offshore engineering company, was placed
into administration last week by its directors as a result of a
significant contractual dispute and claims from a customer on one
of its previous major construction projects.
The administrators' strategy on appointment was firstly to engage
with the workforce, secondly to capture further customer
commitments to stabilize ongoing trading, and thirdly, focus on
finding a buyer for the business as a going concern to secure the
long term future of the business
Stephen Oldfield, Joint Administrator and partner at
PricewaterhouseCoopers LLP in East Anglia, said, "Since our
appointment, we have met the union and employee representatives
every day and held two meetings with the entire workforce. We
have also held urgent talks with the key remaining customers who
have recognized the quality and skill of the SLP team, its design
engineering and fabrication capabilities, and have agreed to
continue working with us.
"There are still discussions continuing with other customers, but
I am pleased with the progress weve made in the first week and we
will continue to work to bring those remaining customers over the
line.
"The progress made to date on securing customers allows work to
continue as usual in the Lowestoft Yard and gives the
administrators a strong platform as the focus moved towards
finding a buyer for the business as a going concern."
Mr. Oldfield continued:"It is still early days, but I have already
received emails and calls from the UK and beyond asking for
information on the business and we will be advertising it for sale
in National and Trade media this week. We are looking to secure
interest from potential purchasers and parties should e-mail
philip.j.sharpe@uk.pwc.com to register their interest."
"With more clarity on the customer commitments to the SLP
companies in Administration, we have been reviewing the necessary
workforce to deliver the work that has been secured, while
retaining key elements of the business to attract buyers. We have
held meetings with Unions, Employee Representatives and the
workforce to discuss the need to reshape the business against the
level of work available.
"Following those discussions, we have had to reduce the number of
SLP employees by 23 and have also reduced the level of agency
staff used by the business. We have ensured those affected
employees are paid up to date and are making sure they are fully
supported through the process, including arranging a workshop next
wee and contacting job centre plus on their behalf.
"After [Mon]day's announcement we will still have over 800
employees and a significant number of agency staff working for the
SLP companies in Administration. The effort and quality of work
has remained excellent throughout the last week as we have worked
to secure further contracts for the business and I would like to
thank the employees for their support."
WORKSPACE GLEBE: Workspace Group Acquires Half of Portfolio
-----------------------------------------------------------
Daniel Thomas at The Financial Times reports that Workspace Group
plc has purchased half of the Workspace Glebe portfolio from
HBOS for GBP83 million, partly through a share placing to raise
GBP18.9 million.
The FT recalls Glebe Two, the original 50% partner in the vehicle,
was placed into voluntary liquidation after Workspace Glebe failed
to restructure its banking facilities. HBOS, the primary lender,
took control, the FT recounts.
According to the FT, the existing GBP134 million debt facility
will be taken down to GBP68 million, subject to a GBP15 million
cash payment and the agreement to share profits from future
disposals with HBOS and Bank of East Asia.
The portfolio, which comprises 18 properties in 11 locations in
London, was valued at GBP94 million in September, the FT notes. A
placing of 101.5m shares at 19p will finance the debt repayment,
acquisition costs and REIT conversion liability of GBP1.9 million,
the FT says.
===============
X X X X X X X X
===============
* EUROPE: Corporate Defaults to Continue Until 2011, S&P Says
-------------------------------------------------------------
Anousha Sakoui at The Financial Times reports that the number of
European companies defaulting on their debts is set to continue to
run at more than twice the historic average rate until 2011, with
up to 75 companies with junk credit ratings at risk of default.
The FT relates Standard & Poor's said December 2 that while the
annual default rate is likely to have peaked at 13.1% in the third
quarter of 2009, the slow pace of economic recovery is likely to
be insufficient to save many highly leveraged and poorly
performing companies. They are forecasting the default rate to be
between 8.7 to 11.1% next year, with 55 to 75 western European
companies with sub-investment grade credit ratings at risk of
default in 2010, the FT says.
According to the FT, of the sectors most at risk, the agency
included the auto industry, as well as consumer sectors such as
retailing, home furnishing and hospitality.
The FT notes that while healthier debt markets and a receptive
initial public offering market is positive for some highly
leveraged buyout companies, the rating agency believes credit
quality among rated European companies will continue to
deteriorate, albeit at a slower pace, next year.
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
Feb. 21-23, 2010
INSOL
International Annual Regional Conference
Madinat Jumeirah, Dubai, UAE
Contact: 44-0-20-7929-6679 or http://www.insol.org/
Apr. 29-May 2, 2010
AMERICAN BANKRUPTCY INSTITUTE
Annual Spring Meeting
Gaylord National Resort & Convention Center, Maryland
Contact: 1-703-739-0800; http://www.abiworld.org/
June 17-20, 2010
AMERICAN BANKRUPTCY INSTITUTE
Central States Bankruptcy Workshop
Grand Traverse Resort and Spa, Traverse City, Michigan
Contact: 1-703-739-0800; http://www.abiworld.org/
July 7-10, 2010
AMERICAN BANKRUPTCY INSTITUTE
Northeast Bankruptcy Conference
Ocean Edge Resort, Brewster, Massachusetts
Contact: 1-703-739-0800; http://www.abiworld.org/
July 14-17, 2010
AMERICAN BANKRUPTCY INSTITUTE
Southeast Bankruptcy Conference
The Ritz-Carlton Amelia Island, Amelia, Fla.
Contact: http://www.abiworld.org/
Aug. 5-7, 2010
AMERICAN BANKRUPTCY INSTITUTE
Mid-Atlantic Bankruptcy Workshop
Hyatt Regency Chesapeake Bay, Cambridge, Maryland
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 6-8, 2010
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
JW Marriott Grande Lakes, Orlando, Florida
Contact: http://www.turnaround.org/
Dec. 2-4, 2010
AMERICAN BANKRUPTCY INSTITUTE
22nd Annual Winter Leadership Conference
Camelback Inn, Scottsdale, Arizona
Contact: 1-703-739-0800; http://www.abiworld.org/
Mar. 31-Apr. 3, 2011
AMERICAN BANKRUPTCY INSTITUTE
Annual Spring Meeting
Gaylord National Resort & Convention Center, Maryland
Contact: 1-703-739-0800; http://www.abiworld.org/
June 9-12, 2011
AMERICAN BANKRUPTCY INSTITUTE
Central States Bankruptcy Workshop
Grand Traverse Resort and Spa
Traverse City, Michigan
Contact: http://www.abiworld.org/
Dec. 1-3, 2011
AMERICAN BANKRUPTCY INSTITUTE
23rd Annual Winter Leadership Conference
La Quinta Resort & Spa, La Quinta, California
Contact: 1-703-739-0800; http://www.abiworld.org/
*********
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 * * *