/raid1/www/Hosts/bankrupt/TCREUR_Public/091214.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
Monday, December 14, 2009, Vol. 10, No. 246
Headlines
A U S T R I A
BANEX INNENAUSBAU: Claims Filing Deadline is December 31
B-M BRANDSCHUTZTECHNIK: Claims Filing Deadline is December 31
MARCHFELD BETON: Claims Filing Deadline is December 31
PRODUKTVERTRIEB GMBH: Claims Filing Deadline is December 31
E S T O N I A
* ESTONIA: 369 Companies Declared Bankrupt the Past Nine Months
F R A N C E
THOMSON SA: Traders Set Final Recovery Value on Bonds at 77.5%
G E R M A N Y
* GERMANY: Corporate Insolvencies Up 17.4% in September to 2,910
I C E L A N D
GLITNIR BANK: Creditors Won't Get All Claims Repaid
I R E L A N D
ANGLO IRISH: Moody's Ratings on Covered Bonds on Review
PSK CONSTRUCTION: Director Liable for EUR1.6 Mln of Debts
I T A L Y
PARMALAT SPA: Court to Notify Investors of Additional Settlements
SAFILO SPA: Inks Tommy Hilfiger Licensing Deal
SAFILO SPA: Moody's Upgrades Corporate Family Rating to 'Caa2'
SAFILO SPA: S&P Cuts Long-Term Corporate Credit Rating to 'D'
K A Z A K H S T A N
ART PROFI: Creditors Must File Claims by December 23
SULNAJ LLP: Creditors Must File Claims by December 23
ELTOM RA: Creditors Must File Claims by December 23
JANSAYA COMMERCE: Creditors Must File Claims by December 23
KAMAZ LLP: Creditors Must File Claims by December 23
KINOCENTER LTD: Creditors Must File Claims by December 23
KLADONIYA COMPANY: Creditors Must File Claims by December 23
MEKEN ESTATE: Creditors Must File Claims by December 23
NURLY ORIS: Creditors Must File Claims by December 23
VIVA PROMOTION: Creditors Must File Claims by December 23
K Y R G Y Z S T A N
ASIAN TRAVEL: Creditors Must File Claims by January 6
PAMIR–TIEN-SHAN: Creditors Must File Claims by January 6
L A T V I A
PAREX BANKA: Administrative Costs Reduced by 41%
L U X E M B O U R G
WIND ACQUISITION: Sells PIK Notes to Pay Early Maturities
R U S S I A
BEL-ENERGO: Creditors Must File Claims by December 16
CB RENAISSANCE: Fitch Puts 'CCC' Issuer Rating on Evolving Watch
CONDENSER OJSC: Creditors Must File Claims by December 16
KOMPEKS-STROY: Creditors Must File Claims by December 16
TAMBOV-KRASKA: Creditors Must File Claims by December 16
ORLOVSKIY FOUNDRY: Creditors Must File Claims by December 16
STAVROPOL-PROEKT: Stavropolskiy Bankruptcy Hearing Set December 17
VOLGA-BOSFOR: Chuvashia Bankruptcy Hearing Set December 17
* CITY OF KAZAN: Fitch Assigns 'B' Rating on Upcoming Bonds
* RUSSIAN MURMANSK: Fitch Affirms 'BB-' Long-Term Ratings
S L O V E N I A
ISTRABENZ D.D.: NLB Could Rescue Business, Petrol Says
S W I T Z E R L A N D
BBLE-APPART: Claims Filing Deadline is December 16
EGA-TIME: Claims Filing Deadline is December 16
FUNDGRUBE BONNE: Claims Filing Deadline is December 17
GRO GLOBAL: Claims Filing Deadline is December 16
IMMO-HANSA: Claims Filing Deadline is December 16
U K R A I N E
NAFTOGAZ UKRAINE: Ukraine-Russia Gas Deals Will Lead to Bankruptcy
TMM REAL: Fitch Withdraws 'CC' Issuer Default Ratings
U N I T E D K I N G D O M
AGORA GROUP: In Administration; Baker Tilly Seeks Buyer
ASHWELL PROPERTY: Put Into Administration by Lloyds Banking Group
BRITISH AIRWAYS: To Keep 100% Ownership of OpenSkies Subsidiary
ELIZABETH HOTELS: In Administration; KPMG Appointed
EMI GROUP: Terra Firma to File Suit v. Citigroup Over Acquisition
GLOBAL INVESTMENT: Has Debt Restructuring Deal with Creditors
PUBS 'N' BARS: In Administration; Grant Thornton Appointed
SMARTER COMMUNICATIONS: Three Businesses Sold; 36 Jobs Saved
WHITE YOUNG: Shareholders to Vote on Refinancing Deal
X X X X X X X X
* Fitch Cuts Ratings on 137 Tranches From 73 European SF CDOs
* BOND PRICING: For the Week December 7 to December 11, 2009
*********
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A U S T R I A
=============
BANEX INNENAUSBAU: Claims Filing Deadline is December 31
--------------------------------------------------------
Creditors of Banex Innenausbau GmbH have until December 31, 2009,
to file their proofs of claim.
A court hearing for examination of the claims has been scheduled
for January 14, 2010 at 9:50 a.m.
For further information, contact the company's administrator:
Dr. Hannelore Pitzal
Paulanergasse 9
1040 Vienna
Austria
Tel: 587 31 11, 587 31 12, 587 87 50
Fax: 587 87 50 50
E-mail: office@pitzal-partner.at
B-M BRANDSCHUTZTECHNIK: Claims Filing Deadline is December 31
-------------------------------------------------------------
Creditors of B-M Brandschutztechnik Montage Zarkula KEG have until
December 31, 2009, to file their proofs of claim.
A court hearing for examination of the claims has been scheduled
for January 14, 2010 at 11:30 a.m.
For further information, contact the company's administrator:
Dr. Karl F. Engelhart
Esteplatz 4
1030 Vienna
Austria
Tel: 712 33 30-0
Fax: 712 33 30 30
E-mail: kanzlei@engelhart.at
MARCHFELD BETON: Claims Filing Deadline is December 31
------------------------------------------------------
Creditors of Marchfeld Beton & Kies GmbH have until December 31,
2009, to file their proofs of claim.
A court hearing for examination of the claims has been scheduled
for January 14, 2010 at 10:30 a.m.
For further information, contact the company's administrator:
Dr. Kurt Freyler
Seilerstaette 5
1010 Vienna
Austria
Tel: 513 31 65
Fax: 512 20 01
E-mail: ra-kanzlei@rant-freyler.at
PRODUKTVERTRIEB GMBH: Claims Filing Deadline is December 31
-----------------------------------------------------------
Creditors of Produktvertrieb GmbH have until December 31, 2009, to
file their proofs of claim.
A court hearing for examination of the claims has been scheduled
for January 14, 2010 at 10:30 a.m.
For further information, contact the company's administrator:
Mag. Dr. Ilse Korenjak
Gusshausstrasse 6
1040 Vienna
Austria
Tel: 512 21 02
Fax: 512 21 02 20
E-mail: office@buresch-korenjak.at
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E S T O N I A
=============
* ESTONIA: 369 Companies Declared Bankrupt the Past Nine Months
---------------------------------------------------------------
Toomas Hobemagi at Baltic Business News reports that in the first
nine months of the year, 369 companies were declared bankrupt in
Estonia.
The report, citing the ministry of justice, says from January to
September, 1,027 companies filed for bankruptcy.
===========
F R A N C E
===========
THOMSON SA: Traders Set Final Recovery Value on Bonds at 77.5%
--------------------------------------------------------------
Abigail Moses at Bloomberg News reports that sellers of default
insurance on about US$890 million of Thomson SA debt will pay
22.25 cents on the euro to settle contracts triggered when the
company filed for protection from creditors.
Bloomberg, citing administrators Markit Group Ltd. and Creditex
Group Inc., says traders set a final recovery value of 77.75% on
the company's bonds in an auction to resolve credit- default
swaps.
According to Bloomberg, Thomson triggered a bankruptcy credit
event when it filed for creditor protection Nov. 30 under French
law as it seeks to reorganize US$2.8 billion (US$4.12 billion) of
debt. The company caused a restructuring event in August when it
said it deferred payments on US$72.5 million of private notes,
Bloomberg recalls.
Investors bought or sold 1,563 contracts protecting a net US$890.3
million of Thomson's debt as of Nov. 27, Bloomberg discloses,
citing the Depository Trust & Clearing Corp., the New York-based
trade group.
Debt Restructuring
Thomson, Bloomberg says, proposes to cut its gross senior debt by
45% to EUR1.55 billion under proposals announced Wednesday night.
Bloomberg relates the company said in a statement it plans to
raise about EUR348 million by selling shares and raise about
EUR641 million from notes to senior creditors that will be
mandatorily redeemable into about 971 million shares. It will
also issue up to EUR300 million of disposal proceeds notes,
Bloomberg states.
About Thomson SA
France-based Thomson SA -- http://www.thomson.net/-- provides
technology, services, and systems to Media & Entertainment (M&E)
clients, including content creators, content distributors and
broadcasters. It has three principal operating divisions:
Services, Systems (previously Systems & Equipment) and Technology.
The remaining activities are regrouped in two additional segments:
Other and Corporate. The Services Division offers end-to-end
management of video-related services for its customers in the M&E
industries. Systems division plays a role in supplying hardware
and software technology for the M&E industries in the areas of
production, delivery, management, transmission, and access.
Technology division includes activities, such as corporate
research; Silicon Solutions: Integrated Circuit design and tuners,
and Software & Technology Solutions: video and audio security
solutions, and other technologies. In December 2008, the Company
sold its digital film equipment product line.
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G E R M A N Y
=============
* GERMANY: Corporate Insolvencies Up 17.4% in September to 2,910
----------------------------------------------------------------
Susan Houlton at Deutsche Welle reports that Federal Statistical
Office said that courts received 2,910 filings for bankruptcy
protection from German companies in September, marking a 17.4%
increase over the same month last year.
According to the report, over the first nine months of this year,
24,717 companies filed for bankruptcy -- an 11.2% increase over
the same period in 2008.
The statistical office says it expects corporate bankruptcies this
year to total more than 34,000, compared with 29,291 last year,
the report notes.
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I C E L A N D
=============
GLITNIR BANK: Creditors Won't Get All Claims Repaid
---------------------------------------------------
Omar R. Valdimarsson at Bloomberg News reports that Arni Tomasson,
chairman of Glitnir Bank hf's resolution committee, said that
creditors, who Thursday filed a total of 8,685 claims worth
ISK3.436 trillion (US$27.6 billion), can't expect to get all their
funds repaid.
"The claims register is more of a creditors' wish list than an
accurate depiction of what the final outcome will be," Bloomberg
quoted Mr. Tomasson as saying in a telephone interview Thursday.
"On Dec. 17 creditors will have the opportunity to object to our
conclusion as to what constitutes a priority claim and what
doesn't."
Bloomberg recalls following Glitnir's failure last year the
Icelandic government took over the bank, siphoned its domestic
assets into the new state-controlled Islandsbanki hf and left the
bank's creditors struggling to recoup their losses. On Oct. 15,
Glitnir's creditors agreed to take 95% of the bank's state-
controlled unit to cover their claims in a move that reduced the
government's refinancing obligation to the lender, Bloomberg
recounts. Iceland's government continues to hold 5% of
Islandsbanki, Bloomberg notes.
Bloomberg relates as of June 30, Mr. Tomasson has said the value
of Glitnir's assets stood at EUR4 billion (US$5.8 billion) and
liabilities were EUR13.7 billion.
About Glitnir Banki
Headquartered in Reykjavik, Iceland, Glitnir banki hf --
http://www.glitnir.is/-- offers an array of financial services to
corporation, financial institutions, investors and individuals.
Judge Stuart Bernstein of the U.S. Bankruptcy Court for the
Southern District Court of New York granted Glitnir banki hf
permission to enter Chapter 15 of the U.S. bankruptcy code on
Jan. 6, 2008.
Glitnir has been granted a moratorium pursuant to a ruling of the
Reykjavik District Court until Nov. 13, 2009. On May 12,
2009, the court appointed a winding-up board for the bank, which
will handle, for instance, claims against the bank while
the moratorium is in effect and after winding-up proceedings
commence upon the conclusion of the moratorium.
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I R E L A N D
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ANGLO IRISH: Moody's Ratings on Covered Bonds on Review
-------------------------------------------------------
Moody's Investors Service has placed these ratings of the covered
bonds issued by members of the Anglo Irish Bank group on review
for possible downgrade:
-- Covered bonds issued by Anglo Irish Bank Corporation Limited
(A3/Prime-1/E, ratings under review for possible downgrade)
under its UK Covered Bond Programme: Placed on review for
possible downgrade; previously on 4 April 2007 assigned Aaa.
-- Asset Covered Securities issued by Anglo Irish Mortgage Bank:
Placed on review for possible downgrade; previously on 22
January 2009 assigned Aaa.
This review action on the Covered Bonds and ACS was prompted by
Moody's decision on 8 December to place Anglo Irish Bank
Corporation Limited's A3 senior unsecured rating on review for
possible downgrade (see separate press release dated 8 December
2009).
The covered bonds issued under both programmes currently have a
Timely Payment Indicator of "Probable". Should Anglo Irish's
senior unsecured rating be downgraded below A3 and the current
TPIs be maintained, the ratings of these would be downgraded below
Aaa. The TPI assesses the likelihood that timely payment will be
made to covered bondholders following issuer default and limits
the covered bond rating to a certain number of notches above the
issuer rating.
In the event of a downgrade of Anglo Irish's rating below A3,
Moody's would also recalculate the expected loss of both covered
bond programmes. Any over-collateralization required to maintain
the then ratings of the covered bonds would have to be
contractually committed for Moody's to give it benefit under its
methodology.
The rating assigned by Moody's addresses the expected loss posed
to investors. Moody's ratings address only the credit risks
associated with the transaction. Other non-credit risks have not
been addressed, but may have a significant effect on yield and/or
payments to investors.
Anglo Irish Bank had total assets of EUR88.5 billion at end-March
2009. The bank is headquartered in Dublin, Ireland.
PSK CONSTRUCTION: Director Liable for EUR1.6 Mln of Debts
---------------------------------------------------------
The Irish Times reports that the High Court has ruled that Peter
Killeen, the director of PSK Construction Ltd. -- the Naas,
Kildare-based building company which went into voluntary
liquidation -- has been held personally liable for EUR1.6 million
of its debts.
According to the report, Mr. Killeen was also disqualified from
involvement in the management of a company for seven years after
the court found he was involved in fraudulent and reckless
trading.
The report recalls PSK had employed about 200 workers in
subcontracting on major sites around Dublin before it went into
liquidation in March 2006 with debts of EUR3,186,737. The
liquidator, Tom Kavanagh, subsequently brought High Court
proceedings claiming Mr. Killeen was a party to carrying on the
business with intent to defraud creditors and alleging both
Mr. Killeen and Lorraine Higgins, a co-director and employee of
the company, carried on the business in a reckless manner, the
report recounts. Ms. Higgin was cleared of reckless trading but
was disqualified for five years from involvement in the management
of any company over her complicity in underdeclaration of tax by
the company, the report notes.
The report relates Mr. Killeen admitted in court he had
underdeclared and underpaid PAYE and other tax liabilities to the
tune of more than EUR1.6 million in 2005. The court heard the
company did not employ a financial controller or accountant, the
report notes. The total liability to Revenue at the time of
winding up was EUR2.36 million, the report says.
Ms. Higgins admitted she was aware of the underdeclaration but
said she had accepted Mr. Killeen's explanation this was a short-
term measure which would be sorted when cash-flow problems were
straightened out, the report states.
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I T A L Y
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PARMALAT SPA: Court to Notify Investors of Additional Settlements
-----------------------------------------------------------------
A notification program has begun, as ordered by the U.S. District
Court for the Southern District of New York, to alert domestic
investors, including U.S. persons and entities, who bought
Parmalat Finanziaria S.p.A. equity securities from January 5, 1999
through and including December 18, 2003 about two partial
settlements of a class action. This press release is issued by
the Court-appointed Parmalat Notice and Claims Administrator as
part of the notification effort.
The lawsuit alleges that Parmalat and numerous other defendants
participated in a fraudulent financial scheme, resulting in the
understatement of Parmalat's debt and the overstatement of its net
assets. Parmalat ultimately filed for bankruptcy, and the value
of its stock dramatically declined. The defendants deny that they
did anything wrong, and the settlements do not mean that any law
was violated. The Court did not decide which side was right.
The partial settlements resolve the case against several Deloitte
& Touche Parties and several Grant Thornton Parties and will pay
money to Class Members. The terms "Deloitte & Touche Parties" and
"Grant Thornton Parties" and other capitalized terms used in this
notice are defined in the detailed Notice available at:
http://www.ParmalatSettlement.com/
The Deloitte & Touche Settling Parties agreed to pay US$8.5
million and the Grant Thornton Settling Parties agreed to pay
US$6.5 million to resolve this matter; attorneys' fees, expenses
and administrative costs will also be paid from these amounts.
Settlement stipulations, available at
http://www.ParmalatSettlement.com/describe all of the details.
In May 2004, the Court appointed the law firms of Cohen Milstein
Sellers & Toll PLLC, of Washington, D.C. and Grant & Eisenhofer,
P.A., of Wilmington, DE, to represent the Class, and the law firm
of Spector Roseman Kodroff & Willis, P.C., of Philadelphia, PA,
has served as counsel. These firms have been litigating this case
known as In re Parmalat Securities Litigation, No. 04 MD 1653
(LAK), since that time, and they negotiated the partial
settlements.
Notices informing Class members about their legal rights are
scheduled to be mailed in early December, 2009.
Class members may also now exclude themselves from the two partial
settlements with the Grant Thornton parties and Deloitte & Touche
parties, or object to the terms of the proposed settlements. The
deadline for exclusions is February 1, 2010, and the deadline for
objecting to the two settlements is February 16, 2010. A hearing
will later be held in New York on March 8, 2010, at 2:30 p.m.
(eastern standard time), to consider whether to approve the
settlements, the proposed plan of allocation for them and the
application for attorneys' fees and expenses.
About Parmalat S.p.A.
Headquartered in Milan, Italy, Parmalat S.p.A. --
http://www.parmalat.net/-- sells nameplate milk products
that can be stored at room temperature for months. It also has
about 40 brand product lines, which include yogurt, cheese,
butter, cakes and cookies, breads, pizza, snack foods and
vegetable sauces, soups and juices.
The Company's U.S. operations filed for Chapter 11 protection on
February 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary
Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors. When the U.S. Debtors filed
for bankruptcy protection, they reported more than US$200 million
in assets and debts. The U.S. Debtors emerged from bankruptcy on
April 13, 2005.
Parmalat S.p.A. and its Italian affiliates filed separate
petitions for Extraordinary Administration before the Italian
Ministry of Productive Activities and the Civil and Criminal
District Court of the City of Parma, Italy on December 24, 2003.
Dr. Enrico Bondi was appointed Extraordinary Commissioner in
each of the cases. The Parma Court has declared the units
insolvent.
On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.
04-14268, in the United States Bankruptcy Court for the Southern
District of New York.
Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat
Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and
Food Holdings are Cayman Island special-purpose vehicles
established by Parmalat S.p.A. The Finance Companies are under
separate winding up petitions before the Grand Court of the Cayman
Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman)
Ltd. serve as Joint Provisional Liquidators in the cases. On
January 20, 2004, the Liquidators filed Sec. 304 petition, Case
No. 04-10362, in the United States Bankruptcy Court for the
Southern District of New York. In May 2006, the Cayman Island
Court appointed Messrs. MacRae and Cleaver as Joint Official
Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham
& Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon,
Herlands Randolph, represent the Finance Companies in the Sec. 304
case.
The Honorable Robert D. Drain presided over the Parmalat Debtors'
U.S. cases. On June 21, 2007, the U.S. Court granted Parmalat
permanent injunction.
SAFILO SPA: Inks Tommy Hilfiger Licensing Deal
----------------------------------------------
Jerrold Colten at Bloomberg News reports that Safilo SpA and Tommy
Hilfiger Corporation signed an eyewear licensing deal through 2015
for Hilfiger-branded eyeglasses and sunglasses.
According to Bloomberg, the agreement, which covers production and
distribution, carries an optional five-year extension.
As reported by the Troubled Company Reporter-Europe on Dec. 3,
2009, Bloomberg News said Hal agreed to buy 51% of Safilo's
outstanding bonds. Bloomberg recalled Hal agreed to purchase a
majority stake in Safilo on Oct. 19. The deal was subject to a
bid for Safilo's senior notes due 2013, according to Bloomberg.
Bloomberg related Hal said in a statement Nov. 30 it will waive a
condition that it capture 60% of the bonds for the offer to
succeed. Safilo has said it would probably default on its bank
debt if the bid from Hal fell through, Bloomberg noted.
Safilo Group SpA -- http://www.safilo.com/-- is an Italy-based
company operating in the eyewear sector. It designs, produces and
distributes such products as frames for reading glasses,
sunglasses, glasses for sport, ski masks, goggles and visors. Its
products are primarily manufactured in four plants in Italy, one
in Slovenia and China and are marketed in 130 countries worldwide
through 39 direct commercial subsidiaries and more than 130,000
retail distributors. The Group has 38 principal brands of which
10 directly owned and 28 licensed. Brands include Safilo, Oxydo,
Carrera, Smith, Alexander McQueen, A/X Armani Exchange, Banana
Republic, BOSS - Hugo Boss, Bottega Veneta, Diesel, Valentino,
Dior, Emporio Armani and others.
* * *
As reported by the Troubled Company Reporter-Europe on Oct. 23,
2009, Fitch owngraded Italy-based eyewear designer and
manufacturer Safilo S.p.A.'s Long-term Issuer Default Rating to
'C' from 'CC'. Fitch simultaneously revised the Recovery Rating
on Safilo's senior credit facilities at to 'RR1' from RR2'. The
senior secured facilities -- rated 'B-' -- and Safilo's IDR remain
on Rating Watch Negative. Safilo Capital International S.A.'s
EUR195 million senior notes due 2013 were affirmed at 'C'. The
Recovery Rating for these notes remains 'RR6
SAFILO SPA: Moody's Upgrades Corporate Family Rating to 'Caa2'
--------------------------------------------------------------
Moody's Investors Service has upgraded Safilo S.p.A.'s Corporate
Family Rating to Caa2 from Caa3, the Probability of Default Rating
(PDR) to Caa3/LD (Limited Default) from Ca/LD and the senior
unsecured rating on the EUR195 million notes due 2013 issued by
Safilo Capital International SA to Caa3 (LGD3, 43%) from C. At
the same time all ratings have been placed under review for
further possible upgrade.
"The upgrade of Safilo's Probability of Default Rating to Caa3/LD
reflects Moody's perceptions that following the successful
completion of the purchase of part of the senior notes by HAL
Holding N.V., the company's probability of default has reduced",
says Paolo Leschiutta, a Vice President -- Senior Analyst in
Moody's Corporate Finance Group and responsible for Safilo.
However, Moody's notes that the purchase at a discount by HAL of
part of the senior notes is seen as a distressed exchange by
Moody's (as indicated in an issuer comment published on 21 October
2009) and also viewed as an event of default. Moody's expects to
remove the LD designation after approximately three business days.
The lower probability of default reflects the progress made by the
company towards restructuring its capital structure. The capital
restructuring, along with HAL purchase of part of the existing
notes at a discount of 60% (with approximately 51% on note holders
accepting the offer), also includes (i) a reserve capital increase
by HAL for 10% of Safilo's capital for a total of c.
EUR13 million, (ii) a rights issue for EUR250 million underwritten
pro-rata by existing shareholders and HAL, (iii) the restructuring
of the existing senior bank facility and (iv) the disposal to HAL
of non core retail activity. The capital restructuring is
expected to be completed by Q1 2010 and, as a result, HAL is
expected to increase its shareholding in Safilo from the current
2.1% up to between c. 37% and 49.99%. Moody's notes however that
the transaction is still subject to a degree of execution risk.
The review for further possible upgrade will focus on these
factors: (i) the company's capability to complete the capital
restructuring programme as outlined to the market, (ii) Moody's
view on the company's financial and liquidity profiles going
forward, (iii) the capability of the company to stop the revenues
and EBITDA decline, (iv) Moody's assessment of the eyewear market
in particular and of general consumer spending and (v) the
strategic direction of the group following the entrance of a new
majority shareholder. Moody's would expect to conclude the review
within three months.
Safilo's CFR of Caa2, one notch higher than the PDR of Caa3,
reflects Moody's expectation that the family recovery rate in case
of default might be above the standard 50% average implied by
Moody's Loss Given Default model. The rating of Caa3 (LGD3, 43%)
on the notes reflects the expected low recovery rate for
bondholders in case of liquidation.
Upgrades:
Issuer: Safilo S.p.A.
-- Probability of Default Rating, Upgraded to Caa3/LD from Ca/LD
-- Corporate Family Rating, Upgraded to Caa2 from Caa3
Issuer: Safilo Capital International SA
-- Senior Unsecured Bond, Upgraded to Caa3, LGD3, 43% from C
All ratings are under review for possible upgrade.
The last rating action on Safilo was implemented on 7 July 2009,
when Moody's downgraded Safilo's CFR to Caa3, PDR to Ca/LD and the
rating on the notes issued by Safilo Capital International SA to
C. Safilo's ratings were assigned by evaluating factors Moody's
believe are relevant to the credit profile of the issuer, such as
(i) the business risk and competitive position of the company
versus others within its industry, (ii) the capital structure and
financial risk of the company, (iii) the projected performance of
the company over the near to intermediate term, and (iv)
management's track record and tolerance for risk. These
attributes were compared against other issuers both within and
outside of Safilo's core industry and the company's ratings are
believed to be comparable to those of other issuers of similar
credit risk.
Headquartered in Padua, Italy, Safilo SpA is the world's leading
manufacturer of high-end and luxury eyewear, generating
approximately EUR1.15 billion of revenues during FY 2008. It has
been listed on the Italian Stock Exchange since December 2005,
with almost 60% of floating shares. The company operates in more
than 30 countries and sells its products in over 130 countries,
offering a strong portfolio of both owned and licensed brands.
SAFILO SPA: S&P Cuts Long-Term Corporate Credit Rating to 'D'
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered to 'D'
(Default) from 'SD' (Selective Default) its long-term corporate
credit rating on Italy-based eyewear manufacturer Safilo SpA. At
the same time, S&P lowered the issue rating on the EUR195 million
9.625% second-lien notes due 2013 issued by Safilo Capital
International S.A. to 'D' from 'C'. The recovery rating on the
second lien notes is unchanged at '5', indicating S&P's
expectation of modest (10%-30%) recovery in the event of a payment
default.
On Oct. 20, 2009, Antilles-based investment company HAL Holding
N.V. (not rated) announced that it had agreed with Safilo and its
main shareholder Only3T SpA (not rated) to acquire an equity
interest in Safilo. This acquisition was subject to certain
conditions precedent, including the completion of a voluntary cash
tender offer by HAL for all of the Safilo outstanding senior
unsecured notes at 60% of par. This offer was conditional on the
valid tender of no less than 60% of the outstanding senior notes.
On Nov. 30, 2009, HAL decided to waive this condition, lowering
the minimal acceptance level to 50.99%, corresponding to the
actual level of senior notes tendered on that date. S&P
understands that on Dec. 4, 2009, HAL proceeded with the cash
settlement of the senior notes. As part of the tender,
noteholders consented to various amendments to the senior note
indenture. Under Standard & Poor's methodology, such consent is
equivalent to a distressed exchange and, therefore, tantamount to
a default. S&P lowered the rating on Safilo to 'SD' (Selective
Default) following Safilo's announcement on July 2, 2009, that it
had agreed with its senior lenders to defer the repayment of about
EUR19 million of the unrated EUR122 million amortizing facility A
of its senior bank loan due December 2011.
HAL's tender offer is part of a restructuring plan, which S&P
understands includes: a reserved capital increase by HAL of up to
11% of Safilo's share capital, for a total amount of approximately
EUR13 million; a public rights issue for a total amount of
EUR250 million; restructuring of the existing senior debt
financing agreements; and the sale from Safilo to HAL, for a
consideration of about EUR20 million, of certain noncore, loss-
generating retail chains. S&P understands that the restructuring
is still subject, among other conditions, to the granting of
clearance for the transaction by the relevant antitrust
authorities, and the approval by an extraordinary shareholders'
meeting of Safilo of the first and the second capital increases.
Safilo estimates that through the two capital increases, HAL's
equity interest in the group will reach between 37.2% and 49.9%.
Safilo has stated that it expects the completion of the
transaction in the first quarter of 2010. On completion, S&P will
reassess the ratings and the drivers behind them, taking into
account the factors that precipitated the default and any gains
achieved through the reorganization.
===================
K A Z A K H S T A N
===================
ART PROFI: Creditors Must File Claims by December 23
----------------------------------------------------
Creditors of LLP Art Profi have until December 23, 2009, to submit
proofs of claim to:
Abylai Han Ave. 2
Almaty
Kazakhstan
The Specialized Inter-Regional Economic Court of Almaty commenced
bankruptcy proceedings against the company on July 7, 2009, after
finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of Almaty
Baizakov Str. 273b
Almaty
Kazakhstan
SULNAJ LLP: Creditors Must File Claims by December 23
-----------------------------------------------------
Creditors of LLP Sulnaj have until December 23, 2009, to submit
proofs of claim to:
Makataev Str. 196-36
Almaty
Kazakhstan
The Specialized Inter-Regional Economic Court of Taldykorgan
commenced bankruptcy proceedings against the company on
September 16, 2009, after finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of Taldykorgan
Tauelsyzdyk Str. 53
Taldykorgan
Kazakhstan
ELTOM RA: Creditors Must File Claims by December 23
---------------------------------------------------
Creditors of LLP Eltom Ra have until December 23, 2009, to submit
proofs of claim to:
Turkestan Str. 2-31
Astana
Kazakhstan
The Specialized Inter-Regional Economic Court of Astana commenced
bankruptcy proceedings against the company on September 3, 2009,
after finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of Astana
Abai Ave. 36
Astana
Kazakhstan
JANSAYA COMMERCE: Creditors Must File Claims by December 23
-----------------------------------------------------------
LLP Jansaya Commerce is currently undergoing liquidation.
Creditors have until December 23, 2009, to submit proofs of claim
to:
Suleimenov Str. 3a
Kokshetau
Kazakhstan
KAMAZ LLP: Creditors Must File Claims by December 23
----------------------------------------------------
Creditors of LLP Firm Service Kamaz have until December 23, 2009,
to submit proofs of claim to:
Margulan Str. 17
Ekibastuz
Kazakhstan
The Specialized Inter-Regional Economic Court of Pavlodar
commenced bankruptcy proceedings against the company on July 3,
2009, after finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of Pavlodar
Djambulskaya Str. 6
Pavlodar
Kazakhstan
KINOCENTER LTD: Creditors Must File Claims by December 23
---------------------------------------------------------
Creditors of LLP Kinocenter Ltd. have until December 23, 2009, to
submit proofs of claim to:
Aimanov Str. 194
Almaty
Kazakhstan
The Specialized Inter-Regional Economic Court of Almaty commenced
bankruptcy proceedings against the company on September 3, 2009,
after finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of Almaty
Baizakov Str. 273b
Almaty
Kazakhstan
KLADONIYA COMPANY: Creditors Must File Claims by December 23
------------------------------------------------------------
Creditors of LLP Kladoniya Company have until December 23, 2009,
to submit proofs of claim to:
Abylai Han Ave. 2
Almaty
Kazakhstan
The Specialized Inter-Regional Economic Court of Almaty commenced
bankruptcy proceedings against the company on June 22, 2009, after
finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of Almaty
Baizakov Str. 273b
Almaty
Kazakhstan
MEKEN ESTATE: Creditors Must File Claims by December 23
-------------------------------------------------------
LLP Meken Estate is currently undergoing liquidation. Creditors
have until December 23, 2009, to submit proofs of claim to:
Al-Farabi Ave. 77/7
Almaty
Kazakhstan
NURLY ORIS: Creditors Must File Claims by December 23
----------------------------------------------------
Creditors of LLP Nurly Oris have until December 23, 2009, to
submit proofs of claim to:
Aimanov Str. 194
Almaty
Kazakhstan
The Specialized Inter-Regional Economic Court of Almaty commenced
bankruptcy proceedings against the company on September 3, 2009,
after finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of Almaty
Baizakov Str. 273b
Almaty
Kazakhstan
VIVA PROMOTION: Creditors Must File Claims by December 23
---------------------------------------------------------
LLP Viva Promotion is currently undergoing liquidation. Creditors
have until December 23, 2009, to submit proofs of claim to:
Gagarin Ave. 190-9
Almaty
Kazakhstan
===================
K Y R G Y Z S T A N
===================
ASIAN TRAVEL: Creditors Must File Claims by January 6
-----------------------------------------------------
LLC Asian Travel Roads is currently undergoing liquidation.
Creditors have until January 6, 2010, to submit proofs of claim
to:
Kurmanjan Datka Str. 268/13
Osh
Kyrgyzstan
PAMIR–TIEN-SHAN: Creditors Must File Claims by January 6
--------------------------------------------------------
LLC Pamir-Tien-Shan is currently undergoing liquidation.
Creditors have until January 6, 2010, to submit proofs of claim
to:
VDNH
FEZ Bishkek
Mir Ave. 303
Bishkek
Kyrgyzstan
===========
L A T V I A
===========
PAREX BANKA: Administrative Costs Reduced by 41%
------------------------------------------------
During the year since the new board of Parex banka took office,
administrative costs of the bank have declined by 41% in
comparison to average monthly indicators last year. By the end of
the year, the savings will amount to LVL 31, compared to the
administrative costs in 2008.
During the first 10 months of the year, communications costs were
reduced by 30%, and office expenditures were cut by 60% in
comparison to the same period of time in 2008. Major savings
between January and October were also ensured by a 92% cut in
travel costs, an 83% drop in advertising and marketing
expenditures, a 75% drop in representation costs, a 72% decline in
security services, and a 68% reduction in transport expenses.
Spending on electricity and heat declined by 39% and 41%
respectively. The average monthly wage fund at the bank has
declined by 46% after a staff reduction of some 800 people and a
review of all employee wages. Moving to new archival facilities
allowed the bank to reduce costs by 72%, while moving to the new
head office building will allow to save as much as LVL2.7 million
a year.
Tina Kuze, head of the Operational Sector: "Within the framework
of the implementation of structural reforms at the bank, which
allowed us save substantial amount of money, we assessed
functions, optimized procedures, thus, making processes more
effective. Furthermore, we conducted new price surveys among
suppliers and certain services are now being outsourced."
Parex banka's main priorities during the first half-year of 2009
were to ensure sustainability and prevent the outflow of deposits,
as well as to reach new agreements with the providers of
syndicated loans. Afterwards, the bank entered the stabilisation
phase, improving basic indicators, attracting the European Bank
for Reconstruction and Development into its shareholder structure
and entering into negotiations with other potential investors.
Furthermore, the management of the bank has begun the work on the
restructuring of the bank.
About Parex banka
Founded in 1992, Parex banka -- http://www.parexgroup.com/--
currently employs some 1,900 people at branches all over Latvia
and offers universal banking services throughout the Baltic
region, the CIS and other European nations such as Germany,
Switzerland and Sweden. Parex Group companies operate across the
banking, finance, leasing, asset management and life insurance
sectors. Currently, the Latvian Privatisation Agency is the
majority shareholder of Parex banka, holding 73.4% of the Bank’s
shares, but 22.4% are controlled by the European Bank for
Reconstruction and Development. Parex banka has signed up to the
European Code of Conduct on housing loans.
* * *
As reported by the Troubled Company Reporter-Europe on Aug. 3,
2009, Moody's Investors Service affirmed Parex Bank's E bank
financial strength rating, the outlook on which remains stable.
In affirming the bank's E BFSR, which maps to a baseline credit
assessment of Caa1, the rating agency noted the bank's impaired
franchise value and weakened financial performance, especially in
terms of asset quality and profitability. Moody's also noted the
bank's weak liquidity position on a standalone basis (i.e.
excluding Moody's assessment of the probability of external
support).
===================
L U X E M B O U R G
===================
WIND ACQUISITION: Sells PIK Notes to Pay Early Maturities
---------------------------------------------------------
John Glover and Bryan Keogh at Bloomberg News report that Wind
Acquisition Holdings Finance SA, controlled by Egyptian
billionaire Naguib Sawiris, is raising EUR500 million (US$740
million) by issuing payment-in-kind notes.
Bloomberg relates the money will be used to pay early maturities
at Weather Investments SpA, the issuer's parent company. Weather
is the holding company through which Mr. Sawiris controls Wind
Telecomunicazioni SpA, Italy's third-largest mobile-phone company.
According to Bloomberg, Wind Acquisition Holdings Finance said in
a statement Tuesday the PIK notes allow it to choose to pay
interest with more bonds in the first four years. After that,
they switch to mandatory cash interest payments until maturity in
July 2017, Bloomberg says.
The bonds, which can't be called for the first 3.5 years, will be
secured by a pledge on Weather's holding of shares in the company
that is the direct parent of Wind Telecomunicazioni, Bloomberg
discloses citing the statement.
The Wind issue is being managed by Morgan Stanley, Banca
IMI SpA, Calyon, Citigroup Inc., JPMorgan and Natixis, Bloomberg
notes.
As reported by the Troubled Company Reporter-Europe on Dec. 11,
2009, Moody's Investors Service has assigned a provisional (P)B3
rating to the EUR500 million (which may increase up to EUR750
million) new senior notes, due 2017, to be issued by Wind
Acquisition Holdings Finance S.A.
===========
R U S S I A
===========
BEL-ENERGO: Creditors Must File Claims by December 16
-----------------------------------------------------
Creditors of CJSC Bel-Energo-Mash (TIN 3123097260, PSRN
1033107023070) (Boiler Plant) have until December 16, 2009, to
submit proofs of claims to:
V. Masliyov
Insolvency Manager
Post User Box 718
308033 Belgorod
Russia
The Arbitration Court of Belgorodskaya commenced bankruptcy
proceedings against the company after finding it insolvent. The
case is docketed under Case No. ?08-2011/09–24B.
The Debtor can be reached at:
CJSC Bel-Energo-Mash
Vatutina Str. 3a
308013 Belgorod
Russia
CB RENAISSANCE: Fitch Puts 'CCC' Issuer Rating on Evolving Watch
----------------------------------------------------------------
Fitch Ratings has placed Russia's CB Renaissance Capital's Long-
term Issuer Default Rating of 'CCC' on Rating Watch Evolving. A
full list of rating actions is provided at the end of this
commentary.
The RWE reflects the reduced immediate liquidity pressure after
the large wholesale debt repayments made in Q209-Q309, which were
mainly financed by cash generated from the loan book, with only
partial utilization of the bank's liquidity buffer. At the same
time, the RWE highlights still uncertain prospects for refinancing
of upcoming maturities, which are significant to end-H110. The
bank's cash generation capacity during this period is contingent
on the success of funding initiatives as well as asset quality
management. If the bank successfully refinances upcoming debt
repayments and thereby relieves liquidity pressure, the ratings
could be upgraded; if however, liquidity pressures intensify
again, then negative rating action may be taken.
CBRC's highly liquid assets, comprising cash and equivalents and
unpledged repoable securities, represented 12% of total assets on
23 November 2009 or almost 100% of wholesale liabilities maturing
in Q110 (including a facility raised from a state-controlled bank,
but excluding funding from the Central Bank of Russia (CBR)). The
funds from the CBR included unsecured (up to three months)
borrowings and collateralized (repo) transactions at 27% and 20%
of liabilities, respectively. Fitch's base case expectation is
that the CBR will not withdraw funding facilities in a way that
may affect the bank's liquidity position, although the
sustainability of this funding source is questionable beyond the
short term.
Fitch notes that wholesale obligations maturing in Q210 (net of
CBR funding) are significant, equal to 27% of liabilities. The
bank plans to refinance most of these obligations during H110,
although it could prove challenging in the current difficult
environment, in Fitch's view. Alternatively, the bank will rely
on cash generated by its loan book to cover liabilities, which
looks achievable given the volumes generated in Q409, but could be
impacted by the potential business run-off and high loan
delinquencies.
Funds from related parties were less than 10% of liabilities at
end-Q309, although affiliated companies or shareholders may be
able to lend some additional support, if needed. Overall,
customer funds are short-term and concentrated, although some of
these have proven to be reasonably steady to date. The bank has
just launched a new retail deposit programme, with this funding
source budgeted to grow markedly in the next 12 months to reach
20% of liabilities by end-2010 (end-10M09: below 5%), although
this might be difficult to implement given the difficult market
conditions, in Fitch's view, and the sustainability of the newly
acquired retail base is to be tested.
The loan portfolio shrank 35% in 9M09, although some minimal new
loan issuance took place in H209. Portfolio growth in 2010 is
expected at over 20% from the forecast end-2009 levels, although
it depends on the success of new funding initiatives. Asset
quality ratios have deteriorated with NPLs (loans overdue by more
than 90 days) at 25% of end-Q309 loans (end-2008: 12%), although
this primarily reflects the contracting loan book and changes in
the write-off policy in H209; vintage loan analysis suggests less
negative trends. At the same time, Fitch notes the bank's
currently solid capital levels (Basel I total capital ratio of
27.9% at end-Q309) and significant loan loss absorption capacity,
with the bank able to increase the reserves/loans ratio to 30%
(based on Q309 IFRS accounts) without the Basel total capital
ratio falling below 10%.
At end-Q309, CBRC was the 74th-largest bank in Russia by total
assets, focused on the consumer finance market. CBRC is part of
the broader Renaissance Group, which also includes Renaissance
Capital investment banking group (holding company Renaissance
Capital Holdings Limited rated 'B-'/Negative), the merchant
banking entity Renaissance Partners and asset manager Renaissance
Investment Management.
The rating actions with respect to CBRC are:
-- Long-term IDR: 'CCC'; placed on Rating Watch Evolving
-- Senior unsecured debt: 'CCC', placed on RWE; Recovery Rating
at 'RR4'
-- Short-term IDR: affirmed at 'C'
-- Individual Rating: affirmed at 'E'
-- Support Rating: affirmed at '5'
-- Support Rating Floor: affirmed at 'No Floor'
-- National Long-term Rating; 'B-(rus)'; placed on RWE
CONDENSER OJSC: Creditors Must File Claims by December 16
---------------------------------------------------------
Creditors of OJSC Condenser (TIN 5706002190, RVC 570601001, PSRN
1025700558773) (Capacitor Production) have until December 16,
2009, to submit proofs of claims to:
I. Churkina
Insolvency Manager
Post User Box 2
394038 Voronezh
Russia
The Arbitration Court of Orlovskaya commenced bankruptcy
proceedings against the company after finding it insolvent. The
case is docketed under Case No. ?48–1580/2009.
The Debtor can be reached at:
OJSC Condenser
Polevaya Str. 37
Glazunovka
Glazunovskiy
303340 Orlovskaya
Russia
KOMPEKS-STROY: Creditors Must File Claims by December 16
--------------------------------------------------------
Creditors of LLC Kompeks-Stroy (TIN 7103016090, PSRN
1027100516068) (Construction) have until December 16, 2009, to
submit proofs of claims to:
Ye.Stretinskaya
Insolvency Manager
Office 507
Boldina Str. 98
300028 Tula
Russia
The Arbitration Court of Tulskaya commenced bankruptcy proceedings
against the company after finding it insolvent. The case is
docketed under Case No. ?68–1547/09.
The Debtor can be reached at:
LLC Kompeks-Stroy
Sakko and VantsettiStr. 24
300002 Tula
Russia
TAMBOV-KRASKA: Creditors Must File Claims by December 16
--------------------------------------------------------
Creditors of LLC Tambov-Kraska (Paint Production) have until
December 16, 2009, to submit proofs of claims to:
Kh.Khidirov
Insolvency Manager
Office 21
Proletarskaya Str. 337
390033 Tambov
Russia
Tel: 8 (4752) 53-32-10
The Arbitration Court of Tambovskaya commenced bankruptcy
proceedings against the company after finding it insolvent. The
case is docketed under Case No. ?64–4444/09.
The Debtor can be reached at:
LLC Tambov-Kraska
Tsentralnaya Str. 1
Belomestnaya Dvoynya
Tambovskiy
Tambovskaya
Russia
ORLOVSKIY FOUNDRY: Creditors Must File Claims by December 16
------------------------------------------------------------
Creditors of LLC Orlovskiy Foundry Named after Medvedev (TIN
5751028175,PSRN 1045751002604) have until December 16, 2009, to
submit proofs of claims to:
A. Yevseev
Insolvency Manager
3-ya Kurskaya Str. 15
302004 Orel
Russia
The Arbitration Court of Orlovskaya commenced bankruptcy
proceedings against the company after finding it insolvent. The
case is docketed under Case No. A48–2091/2009.
The Debtor can be reached at:
LLC Orlovskiy Foundry Named after Medvedev
Moskovskaya Str. 69
302030 Orel
Russia
STAVROPOL-PROEKT: Stavropolskiy Bankruptcy Hearing Set December 17
------------------------------------------------------------------
The Arbitration Court of Stavropolskiy will convene at 11:00 a.m.
on December 17, 2009, to hear bankruptcy supervision procedure on
LLC Stavropol-Proekt-Stroy (TIN 2635081013, PSRN 1052604104233)
(Construction). The case is docketed under Case No. ?63–
8881/2009-S5–11.
The Temporary Insolvency Manager is:
V. Orlov
Office 4
Lermontova Str. 343
Stavropol
Russia
The Debtor can be reached at:
LLC Stavropol-Proekt-Stroy
Mikhaylovskoe Shosse 5
Stavropol
Russia
VOLGA-BOSFOR: Chuvashia Bankruptcy Hearing Set December 17
----------------------------------------------------------
The Arbitration Court of Chuvashia will convene at 10:00 a.m. on
December 17, 2009, to hear bankruptcy supervision procedure on
CJSC Volga-Bosfor (TIN 2124013045) (Forestry). The case is
docketed under Case No.?79–4898/2009.
The Temporary Insolvency Manager is:
S. Nikolayev
Naberezhnaya Str. 10
Novocheboksarsk
Russia
The Court is located at:
The Arbitration Court of Chuvashia
Courtroom 3088
Prospect Lenina 4
Cheboksary
Russia
The Debtor can be reached at:
CJSC Volga-Bosfor
Naberezhnaya Str. 10
Novocheboksarsk
Russia
* CITY OF KAZAN: Fitch Assigns 'B' Rating on Upcoming Bonds
-----------------------------------------------------------
Fitch Ratings has assigned the City of Kazan's upcoming issue of a
RUB2 billion domestic bond due December 2011 an expected Long-term
local currency rating of 'B+' and expected National Long-term
rating of 'A(rus)'. The city is rated Long-term foreign and local
currency 'B+' with Stable Outlook, Short-term foreign currency
'B', and National Long-term 'A(rus)' with Stable Outlook.
The bond issue has a fixed-rate coupon. The initial coupon rate
will be set at the auction on 10 December 2009. The principal
will be amortized by 25% of the initial bond issue value on 9
December 2010, and by another 25% of the initial value on 9 June
2011. The remaining 50% of the initial value will be redeemed on
8 December 2011. The proceeds from the new bond will be used to
finance the region's budget deficit.
The final rating is contingent upon the receipt of final documents
conforming to information already received.
The City of Kazan is the capital of the Tatarstan Republic
('BBB-'/'F3'/Stable) and is located in the central area of
European Russia. The population of the city totaled 1.12 million
in 2008.
* RUSSIAN MURMANSK: Fitch Affirms 'BB-' Long-Term Ratings
---------------------------------------------------------
Fitch Ratings has affirmed the Russian Murmansk region's Long-term
foreign and local currency ratings at 'BB-', respectively, and its
Short-term foreign currency rating at 'B'. Fitch has also
affirmed Murmansk's National Long-term rating at 'A+(rus)'. The
Outlooks for the Long-term ratings are Stable.
The ratings reflect the region's stable local economy with large
economic potential, its moderate debt burden, and satisfactory
budgetary performance. The ratings also factor in the current
weakening of the overall economic environment, the high tax
concentration in the region, and contingent risk stemming from
public sector entities.
The Stable Outlooks reflect Fitch's expectation that an economic
recovery in 2010 will drive operating revenue growth, allowing the
region to maintain a satisfactory budgetary performance and to
continue to record strong debt protection ratios despite a recent
increase in the region's debt.
The regional economy has a strong industrial base, dominated by
the metallurgy, mining industry and machinery. It is among the
top ten Russian regions in terms of per capita gross regional
product and is well endowed with natural resources. Unique
transportation facilities contribute to the importance of the
region as a transport hub. At the same time, the tax
concentration is high: the ten largest taxpayers in the regional
budget contributed about 46% of tax proceeds in 2008. The
region's economy is export oriented, which also makes it dependent
on international market fluctuations.
The region's administration follows a prudent budget policy and
has managed to avoid large budget imbalance in the past. Its
budget has recorded a surplus before debt variation since 2004,
with one exceptional in 2006 when it showed a modest deficit.
Budgetary performance improved in 2007-2008: the operating balance
more than doubled in absolute terms to RUB3.4bn in 2008 from
RUB1.4bn in 2006, which pushed margins above 10%. However, due to
a decline in national economy in 2009, the region has faced a
negative shock on revenue side and this has affected its budgetary
performance. Fitch expects the full-year operating balance to
decrease to about 7% from of 10.2% in 2008.
Prudent policy caused a gradual debt decline over 2004-2008 and by
end-2008 the region was almost free of direct debt. The region
accumulated significant liquidity in 2007-2008, which is expected
to remain strong at about RUB2.3bn at end-2009. However, the
negative revenue shock has forced the region to access new
borrowing for deficit financing purpose. As of 1 December 2009,
the region had accumulated about RUB4.1bn of low cost loans from
the federal budget, from which RUB1.6bn will be repaid in 2011 and
the remaining in 2012. That shifts refinancing risk beyond 2010.
Murmansk is also exposed to contingent risk stemming from the
liabilities of public company "TEKOS". This is a local heat
supply company with financial debt totaling RUB1.8bn, which is
currently under a bankruptcy procedure. The region has guaranteed
a RUB500m bank loan taken by the company, and this liability will
likely pass to the region in 2010. The remaining outstanding debt
of TEKOS could place further pressure on the credit profile of the
region in the future.
The Murmansk region is located in the northern part of the Russian
Federation. The region's capital, the City of Murmansk, is the
forth-largest sea port in Russia. The region contributed 0.7% of
Russia's gross domestic product in 2006 and accounted for 0.6% of
its population.
===============
S L O V E N I A
===============
ISTRABENZ D.D.: NLB Could Rescue Business, Petrol Says
------------------------------------------------------
Boris Cerni at Bloomberg News reports that Petrol Group d.d.
called on Nova Ljubljanska Banka d.d., the country's biggest bank,
to avert the bankruptcy of Istrabenz d.d., in which it holds a 33%
stake.
"Petrol cannot issue corporate warranties on behalf of other
companies," Bloomberg quoted Petrol as saying in a statement to
the city's stock exchange Thursday. NLB could do so, and
"successfully rescue."
According to Bloomberg, Petrol said it "continues to deem
voluntary settlement as the most appropriate solution, leading to
the maximization of the assets of Istrabenz."
As reported by the Troubled Company Reporter-Europe on Nov. 12,
2009, Bloomberg News said Petrol proposed a debt restructuring and
recapitalization plan to help Istrabenz avert bankruptcy. Citing
Boris Dolamic, the court-appointed receiver for Istrabenz,
Bloomberg disclosed the company, which declared insolvency in
March, owes 19 banks in Slovenia EUR436 million (US$6 million).
Istrabenz dd -- http://www.istrabenz.si/-- is a Slovenia-based
holding responsible for the asset management and supervision of
the Istrabenz Group members. The Company has developed
investments in the number of divisions: Energy, which covers the
gas business, production and distribution of energy, transshipment
and storage of oil derivatives; Tourism, which offers hotel,
catering, wellness and congress services; Investments, which deals
with advertising, financial services and technical consulting;
Food, which markets food products, and Information Technology that
provides information support to the companies of the Istrabenz
Group. As of December 31, 2008 Istrabenz Group comprised 77
companies. The Company operates a number of subsidiaries,
including wholly owned Istrabenz Turizem dd and Istrabenz Marina
Invest doo.
=====================
S W I T Z E R L A N D
=====================
BBLE-APPART: Claims Filing Deadline is December 16
--------------------------------------------------
Creditors of BBle-Appart GmbH are requested to file their proofs
of claim by December 16, 2009, to:
Ulrike Argenton
Ahornweg 14
4452 Itingen
Switzerland
The company is currently undergoing liquidation in Muttenz. The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on October 21, 2009.
EGA-TIME: Claims Filing Deadline is December 16
-----------------------------------------------
Creditors of ega-time GmbH are requested to file their proofs of
claim by December 16, 2009, to:
Richard Estermann
Waechselacher 122
6370 Stans
Switzerland
The company is currently undergoing liquidation in Beromuenster.
The decision about liquidation was accepted at a shareholders'
meeting held on December 16, 2008.
FUNDGRUBE BONNE: Claims Filing Deadline is December 17
------------------------------------------------------
Creditors of Fundgrube Bonne Occase AG are requested to file their
proofs of claim by December 17, 2009, to:
Dr. Raymund Scheffrahn
Liquidator
St. Annagasse 18
8001 Zurich
Switzerland
The company is currently undergoing liquidation in Zurich. The
decision about liquidation was accepted at a general meeting held
on October 30, 2009.
GRO GLOBAL: Claims Filing Deadline is December 16
-------------------------------------------------
Creditors of GRO Global Investments AG are requested to file their
proofs of claim by December 16, 2009, to:
Dr. Christoph Loew
Liquidator
Aeschenvorstadt 4
4010 Basel
Switzerland
The company is currently undergoing liquidation in Basel. The
decision about liquidation was accepted at a general meeting held
on October 19, 2009.
IMMO-HANSA: Claims Filing Deadline is December 16
-------------------------------------------------
Creditors of Immo-Hansa AG are requested to file their proofs of
claim by December 16, 2009, to:
Dr. Christoph Loew, liquidator
Aeschenvorstadt 4
4010 Basel
Switzerland
The company is currently undergoing liquidation in Basel. The
decision about liquidation was accepted at a general meeting held
on October 19, 2009.
=============
U K R A I N E
=============
NAFTOGAZ UKRAINE: Ukraine-Russia Gas Deals Will Lead to Bankruptcy
------------------------------------------------------------------
FOCUS News Agency, citing ITAR-TASS, reports that Ukrainian
President Victor Yushchenko said in a TV interview "Ukraine-Russia
gas agreements will lead Naftogaz Ukraine to bankruptcy and losses
for Ukrainian gas transport system."
According to the report, Mr. Yushchenko said the aim of the
agreements, signed at January 2009 is "through bankruptcy the
Naftogaz Ukraine to reach to consortium with Russia or someone
else," or to "yield someone else the management of the most
precious-the gas transport system of the country."
About NJSC Naftogaz of Ukraine
Headquartered in Kiev, Ukraine, NJSC Naftogaz of Ukraine --
http://www.naftogaz.com/-- is a vertically integrated oil and gas
company engaged in full cycle of operations in gas and oil field
exploration and development, production and exploratory drilling,
gas and oil transport and storage, supply of natural gas and LPG
to consumers.
* * *
As reported by the Troubled Company Reporter-Europe on Nov. 18,
2009, Fitch Ratings affirmed NJSC Naftogaz of Ukraines' long-term
foreign currency and local currency issuer default ratings at
'CCC'. The outlook is negative.
TMM REAL: Fitch Withdraws 'CC' Issuer Default Ratings
-----------------------------------------------------
Fitch Ratings has withdrawn Ukraine-based TMM Real Estate
Development plc's Long-term foreign and local currency Issuer
Default Ratings of 'CC', respectively, and its National Long-term
rating of 'B(ukr)'. All ratings were on Rating Watch Negative
prior to their withdrawal.
The withdrawal is due to a lack of information.
Fitch will no longer provide ratings or analytical coverage on
TMM.
===========================
U N I T E D K I N G D O M
===========================
AGORA GROUP: In Administration; Baker Tilly Seeks Buyer
-------------------------------------------------------
Administrators from Baker Tilly Restructuring and Recovery have
been appointed to a group of companies which operate more than 100
Adult Gaming Centres, most of which trade under the Agora or
Caesars World brand.
The four companies involved are Ablethird Ltd, Frankice (Golders
Green) Ltd, Leisure World (UK) Ltd and Caesar's World Ltd. The
latter three companies control the gaming centers, which employ
about 500 people.
Commenting on the appointment, Baker Tilly Partner, David Hudson,
said: "We have been appointed with a view to marketing and
restructuring the business after a short trading period.
"This is a very well established network of businesses with a
considerable number of well-located outlets. We hope to achieve a
sale of the business as a going concern and would like to hear
from interested parties."
Interested parties can contact administrators David Hudson and
Simon Bower through Baker Tillys Old Bailey office on 020 7002
8600 or joint administrator, Graham Bushby in Baker Tilly.
ASHWELL PROPERTY: Put Into Administration by Lloyds Banking Group
-----------------------------------------------------------------
Daniel Thomas at The Financial Times reports that Lloyds Banking
Group has used the "pre-pack" administration process to
restructure Ashwell Property Group.
According to the FT, the bank will become a major shareholder
through swapping its debt for equity in a new company created to
cherry-pick and develop some of the best schemes owned by Ashwell,
including a 1.7m sq ft development next to Cambridge train
station.
The FT relates Ashwell has been put into administration. The
company, the FT says, amassed a landbank with a planning value of
more than GBP2 billion, but its expansion during the boom saw it
breach the terms of its debt with Lloyds.
Brookgate, a new company, will manage two large projects, the
Richard Rogers-designed development in Cambridge and a 300-acre
mixed-use scheme in Suffolk, as well as 311 military homes, the FT
discloses. KPMG has been appointed as administrators over
Ashwell's remaining assets, which were backed by loans from
Icelandic bank Kaupthing, the FT notes.
Ashwell Property Group is one of the largest private property
developers in south-east England.
BRITISH AIRWAYS: To Keep 100% Ownership of OpenSkies Subsidiary
---------------------------------------------------------------
The Wall Street Journal's Daniel Michaels reports British Airways
PLC has decided to keep full ownership of its OpenSkies subsidiary
after seeking outside investors.
According to the Journal, Dale Moss, head of the Paris-based unit,
said in an interview British Airways early last month received
five bids from European and U.S. private-equity firms to invest in
or buy the small operation.
Mr. Moss told the Journal after assessing the proposals and the
unit's performance, BA decided not to accept any of the offers.
Mr. Moss declined to disclose financial details of the bids, or
which companies made the offers, the Journal notes. BA was
advised by Reynolds Partners Ltd., a small London investment bank,
the Journal says.
The Journal notes BA created OpenSkies in 2008 to take advantage
of airline deregulation between the U.S. and the European Union,
test European markets outside Britain, and experiment with
inflight services. OpenSkies began service in June 2008 between
Paris and New York. According to the Journal, OpenSkies offers
fares for business-class and premium-economy seats at as much as
50% below those of larger carriers in Paris. The Journal says
officials at Air France-KLM SA, by far the biggest carrier in
Paris, have said they aren't affected by OpenSkies, which only
operates four Boeing 757 jetliners, carrying about 70 passengers
each.
In July 2008, British Airways acquired a small French carrier,
L'Avion, for EUR68 million ($100 million) to expand OpenSkies.
Mr. Moss told the Journal that since late summer, OpenSkies has
been flying its planes fuller, with loads rising from roughly 70%
full in August to about 74% full today.
About British Airways
Headquartered in Harmondsworth, England, British Airways Plc,
along with its subsidiaries, (LON:BAY) -- http://www.ba.com/-- is
engaged in the operation of international and domestic scheduled
air services for the carriage of passengers, freight and mail and
the provision of ancillary services. The Company's principal
place of business is Heathrow. It also operates a worldwide air
cargo business, in conjunction with its scheduled passenger
services. The Company operates international scheduled airline
route networks together with its codeshare and franchise partners,
and flies to more than 300 destinations worldwide. During the
fiscal year ended March 31, 2009 (fiscal 2009), the Company
carried more than 33 million passengers. It carried 777,000 tons
of cargo to destinations in Europe, the Americas and throughout
the world. In July 2008, the Company's subsidiary, BA European
Limited (trading as OpenSkies), acquired the French airline,
L'Avion.
* * *
As reported in the Troubled Company Reporter-Europe on Nov. 12,
2009, Moody's placed the Ba3 Corporate Family and Probability of
Default Ratings of British Airways plc and the senior unsecured
and subordinate ratings of B1 and B2 under review for possible
downgrade.
ELIZABETH HOTELS: In Administration; KPMG Appointed
---------------------------------------------------
Allan Graham and Jane Moriarty from KPMG were appointed Joint
Administrators over Cavendish Hotels Ltd, Elizabeth Estates (BS)
Ltd and Elizabeth Hotels Ltd on Tuesday, December 8, 2009.
Principal features of the business include:
-- 14 hotels (11 company operated, 3 leased out to third
parties);
-- 13 Public Houses leased out to third parties;
-- 462 members of staff.
The hotels and pubs are located in East Anglia and Essex and are
of mid range focus.
Mr. Graham said: "The company's financial liabilities made it
impossible to continue running the businesses as they stood. We
will continue to trade the business in the short term while a
buyer is sought for the hotels and pubs, individually or as a
group."
The administrators are aware that a number of customer deposits
have been paid in respect of events to be held at the hotels over
the festive period. These are currently being reviewed and it is
hoped that they can be honored, as far as circumstances permit.
Four hotels operated by the Companies will continue to trade in
other group companies outside of the administration. The
employees that worked in these hotels, as well six employees
employed by Elizabeth Hotels Limited at the group's central head
office transferred to other group companies prior to the
administration appointment.
Interested parties should contact; KPMG; Alan White (0161 838
4027), Dom Pannozzo (01727 733 127)
EMI GROUP: Terra Firma to File Suit v. Citigroup Over Acquisition
-----------------------------------------------------------------
The Financial Times reports that Terra Firma, Guy Hands' private
equity group, will formally serve his multibillion pound lawsuit
on Citigroup in London today, Dec. 14.
According to the FT, Mr. Hands claimed that the bank both advised
EMI and financed his GBP4 billion acquisition of the UK music
company fraudulently misrepresented the facts of the auction.
Terra Firma, the FT says, is seeking unspecified punitive damages
on top of the GBP1.5 billion-plus writedown Mr. Hands has taken on
his investment. The FT relates Citigroup said on Friday it would
defend itself vigorously against a case, which it said was without
merit. At its core are two claims: that Citigroup encouraged
Mr. Hands to make a 265p per share binding bid by a May 21, 2007
deadline, even though other bidders had allegedly dropped out; and
that a Citigroup analyst report on Warner Music at the time was an
attempt to force the indebted EMI into its bank's hands, the FT
discloses.
The FT recalls collapse in credit markets in August 2007 left
Citigroup unable to syndicate the GBP2.6 billion debt it had
provided, leaving its fate and that of Mr. Hands' GBP1.7 billion
equity locked together. Citigroup's flexibility is limited as
Terra Firma has to approve any buyer to which the bank tries to
offload debt, the FT says. In the past month, Mr. Hands has
offered to inject GBP1 billion of equity if Citigroup would write
off a similar sum of debt, the FT recounts. To date, the bank has
refused, the FT states. By suing, Mr. Hands may hope for a
settlement by which his bankers would agree to more favorable
terms to preserve more of his investors' equity, the FT notes.
As reported by the Troubled Company Reporter-Europe on Sept. 30,
2009, The New York Post said Citigroup, which is seeking to reduce
the size of its balance sheet, may force EMI into bankruptcy.
As reported in the Troubled Company Reporter-Europe on Aug. 18,
2009, The Wall Street Journal said EMI Music isn't generating
enough profit to comply with a GBP950 million loan from Citigroup.
According to the WSJ, people familiar with the situation said EMI
Music will need cash injections over the next eight months to
avoid defaulting on the loan -- and it is unclear how much more
cash Mr. Hands is willing to invest. The WSJ said if Mr. Hands,
who has injected about GBP80 million into EMI Music through its
parent company, Maltby Capital Ltd., doesn't come up with the
money, Citigroup could seek to take control of the business and
sell it.
The WSJ disclosed the Citigroup loan requires increases in EMI
Music's earnings before interest, tax, depreciation, and
amortization relative to the size of its debt, the Journal
discloses. According to the WSJ, since September, EMI Music has
been subjected to three "covenant tests" to see if it meets the
ratio -- and failed each one.
On July 31, 2009, the Troubled Company Reporter-Europe, citing the
Financial Times, reported that investors in Terra Firma backed
plans for the private equity firm to inject GBP300 million of
equity into EMI as part of a potential refinancing of the music
group's GBP2.6 billion debts.
EMI -- http://www.emigroup.com/-- is the fourth largest record
company in terms of market share (behind Universal Music Group,
Sony Music Entertainment, and Warner Music Group). It houses
recorded music segment EMI Music and EMI Music Publishing. EMI
Music distributes CDs, videos, and other formats primarily through
imprints and divisions such as Capitol Records and Virgin, and
sports a roster of artists such as The Beastie Boys, Norah Jones,
and Lenny Kravitz. EMI Music Publishing, the world's largest
music publisher, handles the rights to more than a million songs.
EMI Music operates through regional divisions (EMI Music North
America, International, and UK & Ireland). Private equity firm
Terra Firma owns EMI.
GLOBAL INVESTMENT: Has Debt Restructuring Deal with Creditors
-------------------------------------------------------------
Robin Wigglesworth at The Financial Times report that Global
Investment House on Thursday signed a restructuring deal with its
creditors.
The FT recalls Global defaulted on most of its US$3 billion of
liabilities after missing a syndicated loan repayment in December
last year, as its investments in mostly Middle East financial
companies and real estate were hit by the credit crunch. The
London-listed company lost US$364 million in the first nine months
of 2009 and US$900 million in 2008, mostly because of writedowns,
the FT relates.
According to the FT, the restructuring involves placing US$1.7
billion of Global’s own investments into two closed-end funds –
the Global Macro Fund and Real Estate Holdco -- which will act as
collateral for the creditors. These investments will be gradually
sold over the next three years to repay debts, the FT discloses.
In addition, Global has US$400 million of bonds that will be
repaid over the next three years, the FT states.
If Global fails to repay US$700 million of the US$1.72 billion by
the second year of the restructuring, the creditors can convert
their debt into equity in the bank, the FT notes.
The FT says that although creditors have lauded Global’s efforts
to restructure and repay debts, the bank has been embroiled in
controversy over financial relationships with funds it manages.
Several of its funds, including LSE-listed GMFA, invested millions
of dollars with Global itself, through so-called murabaha
contracts, a type of short-term Islamic financing, the FT says
citing regulatory filings and documents.
Global Investment House KSCC -- http://www.globalinv.net-- is a
Kuwait-based company engaged in the provision of investment
services in the Gulf Cooperation Council (GCC), and the Middle
East and North Africa (MENA) region. The Company’s principle
activities include Asset Management, which offers conventional
investment funds, Islamic investment funds, alternative investment
funds, and portfolio management services; Investment Banking
offers equity capital markets and corporate advisory, and debt
capital markets services; Real Estate division invests in a
variety of commercial and residential properties and real estate
development projects; Brokerage provides online and conventional
trading and brokerage services across Kuwait and a range of the
GCC and MENA-based stock exchanges; Principal Investments &
Treasury undertakes co-investments in its managed funds, private
equity and private investment in public equity and property
trading, and Research, which publishes reports on the listed
stocks in Kuwait.
PUBS 'N' BARS: In Administration; Grant Thornton Appointed
----------------------------------------------------------
Pubs 'n' Bars plc on December 4 announced that it had requested a
suspension of trading of its shares with immediate effect pending
clarification of the Group's financial position.
The Board has continued to explore options to address the Group's
funding requirement, including continued discussions with its Bank
and existing shareholders. Despite making a proposal to the Bank,
it has not been prepared to provide additional funding to the
Group to enable it to continue to trade.
The Group has been advised that it has been placed into
Administration with David Thurgood, Trevor O'Sullivan and Nick
Wood of Grant Thornton UK LLP being appointed as Administrators of
the Group with immediate effect.
The Group has also been notified of the resignation of the Group's
Nominated Adviser and Broker with immediate effect. If, within
one month of the Group ceasing to have a Nominated Adviser the
Group has failed to appoint a replacement, the trading of its
securities on AIM will be canceled at 7:00 a.m. on January 9,
2010.
Pubs 'n' Bars Plc -- http://www.pubsnbars.co.uk/-- owns and
operates a group of community pubs located mostly in the south of
England. Since the Company’s admission to AIM in September 1999,
the estate has grown from 51 to 98 public houses. 94 of these are
owned by Pubs 'n' Bars PLC, the balance being operated on behalf
of third parties.
SMARTER COMMUNICATIONS: Three Businesses Sold; 36 Jobs Saved
------------------------------------------------------------
The jobs of 36 people employed by London-based Smarter
Communications Group have been saved following the successful sale
of the groups three businesses by Antony Fanshawe of rescue,
recovery and turnaround specialist Begbies Traynor.
Full service advertising agency Truly London, its web design and
e-commerce division Leftfield Digital and specialist online
marketing company Forty2Digital were bought out of administration
by the groups directors.
First established in 2003 as Smarter Communications, the group
restructured its operations to develop a network of communications
businesses in October 2008. These included an overseas office
based in Dubai.
Mr. Fanshawe commented: "Pre-packs are an excellent tool for
bringing about the sale of businesses where the real value lies in
employees, forward contracts or intellectual property.
"The successful sale of these three companies highlights the
positive aspects of the pre-pack process and its ability to bring
service sector businesses back from the brink, saving jobs and
providing the best available return for stakeholders."
Smarter Communications Groups clients include Isle of Man, AIG,
Air South West, Nakeel, Fred Olsen Cruise Lines, Nuffield Health
and Jack Russell Clothing.
WHITE YOUNG: Shareholders to Vote on Refinancing Deal
-----------------------------------------------------
White Young Green plc, has, as planned, written to its
shareholders confirming the terms of its proposed refinancing and
asked them to vote on the proposals to secure the financial future
of the company.
If the shareholders vote in favor of the refinancing deal, the
Group's banks will convert some GBP53 million of debt into equity
and provide new lending facilities totaling GBP58.25 million and
EUR38 million of committed bonding facilities to help put WYG on a
strong and sustainable financial footing.
60.5% ownership of the Company will transfer to the banks, 24.5%
to staff and management and 15% to existing shareholders. As a
result of this structure, WYG's listing on the stock exchange will
be transferred from the Main Market to the Alternative Investment
Market.
Paul Hamer, Chief Executive, WYG Group, said: "The purpose of the
refinancing is to reduce the level of the Group's debt and to
create a strengthened and more appropriate financial structure
that we can use as a platform to build a sustainable, strong and
resilient long term business that is better positioned to compete
more effectively in its chosen markets.
"We need existing shareholders to vote in favor of the proposed
refinancing agreement to create a stable, long term financial
future for the Company, secure around 2,700 jobs and create
renewed confidence to our clients."
The voting closes on Monday, January 4, 2010, and an Extraordinary
General Meeting will follow on Wednesday, January 6, 2010, to seek
final shareholder approval.
Without the majority of existing shareholders voting in favor of
the proposed refinancing, it is likely that it would lead to the
Company entering into administration or some other form of
insolvency procedure.
Mr. Hamer said: "With our new leadership team and a restructured
balance sheet, we are putting in place fundamental building blocks
to enable us to secure around 2,700 jobs, continue our award
winning work with existing and new clients, and look to create
future value for our shareholders utilizing a more focused and
efficient business model.
"The Board and its advisors strongly urge shareholders to vote in
favor of this proposal," Mr. Hamer added.
About White Young Green plc
Headquartered in Leeds, White Young Green plc --
http://www.wyg.com/-- operates as a consultant to the built,
natural and social environment. WYG provides a range of
complementary engineering services to clients covering all key
engineering disciplines and many associated specialist skills. It
offers non-design-related management services, including project
management, property management, cost management, dispute
resolution, health and safety management, security consultancy and
socio- economic advisory services. The Company provides
environmental services to clients, including noise, air and water
quality, environmental management systems, ecology, environmental
impact assessments, waste management, landscape and urban design,
pollution control, geotechnical investigations, asbestos surveys
and contaminated land remediation services.
===============
X X X X X X X X
===============
* Fitch Cuts Ratings on 137 Tranches From 73 European SF CDOs
-------------------------------------------------------------
Fitch Ratings has downgraded 137 tranches and affirmed 167
tranches from 73 European structured finance collateralized debt
obligations. In addition, the agency has revised the Outlooks to
Negative from Stable for 23 tranches that have been affirmed.
Fitch recently completed a review of nearly all of its rated
European CMBS in two major phases. The first phase, which mainly
addressed the U.K. based portfolio, was completed in June. The
second phase, which mainly addressed continental exposure, was
completed in November. Both phases resulted in significant
downgrades to the outstanding CMBS transactions.
"Because of significant peak to trough declines in European
commercial property values and an ongoing concern that there will
be downward pressure on occupancy and rental values, significant
rating action was taken this year," says Rodney Pelletier,
Managing Director and Head of the European CMBS team.
"Furthermore, these concerns will become more acute as maturity
dates become significantly more evident in the next two years."
Since November 2008, only one-third of the Fitch rated universe of
170 'BBB' European CMBS tranches remained at investment-grade -
with 37% of the universe downgraded to 'CCC' or below. As a
result, European SF CDO portfolios now have considerable exposure
to 'CCC' and below assets. This increases the credit risk to the
rated CDO notes, and in many transactions also triggers over-
collateralization test breaches which redirect cash-flow away from
subordinate tranches to support more senior tranches. The vast
majority of OC tests with 'CCC' haircuts are now well below the
minimum thresholds. As a result, many subordinate tranches will
be cut off from cash-flow for the foreseeable future. In Fitch's
view, the excess spread generated and captured through OC tests is
not sufficient to mitigate the increase in portfolio credit risk
for the downgraded tranches.
The decrease of OC ratios of the senior tranches exposes certain
transaction to an event of default trigger if the senior tranches
become under-collateralized. According to the November 2009
trustee report, Euromax IV MBS S.A. only has 4% of OC buffer above
the EoD trigger, indicating that this transaction can be subject
to an EoD in the near-term if there is further negative migration
in the portfolio credit quality. An EoD is also a real
possibility for Pallas CDO II B.V. The agency estimated from the
November 2009 report that only 5% of OC buffer above the EoD
trigger remained.
Recovery expectations for the underlying structured finance assets
are generally poor as most assets are thin mezzanine tranches
which would likely suffer heavy losses upon default. Given the
increased default expectations and low recovery expectation of
these SF assets, Fitch's outlook for the vast majority of SF CDO
tranches is negative. Fitch withdraws its current Recovery
Ratings on European SF CDOs and will review whether to assign RRs
to SF CDOs in the future.
In cases where losses associated with synthetic credit events have
resulted in write-downs to rated CDO tranches, Fitch considers
this a default and has downgraded these tranches to 'D'.
Fitch's existing SF CDO surveillance criteria have been applied in
assessing the SF assets underlying the CDO transactions.
* BOND PRICING: For the Week December 7 to December 11, 2009
------------------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRIA
-------
HAA-BANK INTL AG 5.250 10/27/2015 EUR 68.88
HAA-BANK INTL AG 6.875 5/31/2014 EUR 74.75
INVESTKREDIT AG 7.000 3/6/2021 EUR 74.64
KOMMUNALKREDIT 0.500 3/15/2019 CAD 63.98
KOMMUNALKREDIT 4.900 6/23/2031 EUR 67.88
KOMMUNALKREDIT 4.440 12/20/2030 EUR 63.75
OESTER VOLKSBK 4.810 7/29/2025 EUR 67.63
OESTER VOLKSBK 4.170 7/29/2015 EUR 67.25
OESTER VOLKSBK 5.270 2/8/2027 EUR 93.16
OESTER VOLKSBK 5.450 8/2/2019 EUR 74.50
RAIFF ZENTRALBK 4.500 9/28/2035 EUR 89.36
SAPPI PAPIER HOL 7.500 6/15/2032 USD 48.13
SAPPI PAPIER HOL 7.500 6/15/2032 USD 48.13
BELGIUM
-------
FORTIS BANK 8.750 12/7/2010 EUR 21.20
BULGARIA
--------
PETROL AD-SOFIA 8.375 10/26/2011 EUR 55.25
CZECH REPUBLIC
--------------
CZECH REPUBLIC 2.750 1/16/2036 JPY 66.35
DENMARK
-------
DANMARK SKIBSKRD 2.000 11/15/2024 DKK 72.68
FINLAND
-------
MUNI FINANCE PLC 0.250 6/28/2040 CAD 20.21
MUNI FINANCE PLC 1.000 10/30/2017 AUD 64.54
MUNI FINANCE PLC 1.000 11/21/2016 NZD 69.18
MUNI FINANCE PLC 1.000 2/27/2018 AUD 63.43
MUNI FINANCE PLC 0.500 9/24/2020 CAD 58.63
MUNI FINANCE PLC 0.500 3/17/2025 CAD 44.45
STORA ENSO OYJ 7.250 4/15/2036 USD 71.49
FRANCE
------
AIR FRANCE-KLM 4.970 4/1/2015 EUR 14.99
ALCATEL SA 4.750 1/1/2011 EUR 16.45
ALCATEL-LUCENT 5.000 1/1/2015 EUR 3.42
ALTRAN TECHNOLOG 6.720 1/1/2015 EUR 4.22
ATARI SA 4.000 4/1/2020 EUR 0.68
ATOS ORIGIN SA 2.500 1/1/2016 EUR 48.07
CALYON 6.000 6/18/2047 EUR 43.38
CAP GEMINI SA 2.500 1/1/2010 EUR 51.98
CAP GEMINI SOGET 1.000 1/1/2012 EUR 43.21
CAP GEMINI SOGET 3.500 1/1/2014 EUR 43.06
CLUB MEDITERRANE 4.375 11/1/2010 EUR 48.73
CMA CGM 5.500 5/16/2012 EUR 66.17
DEXIA MUNI AGNCY 4.680 3/9/2029 CAD 73.36
EURAZEO 6.250 6/10/2014 EUR 55.70
FAURECIA 4.500 1/1/2015 EUR 18.13
GROUPE VIAL 2.500 1/1/2014 EUR 25.16
MAUREL & PROM 3.500 1/1/2010 EUR 22.65
MAUREL ET PROM 7.125 7/31/2014 EUR 17.28
NEXANS SA 4.000 1/1/2016 EUR 59.61
PEUGEOT SA 4.450 1/1/2016 EUR 31.22
PUBLICIS GROUPE 1.000 1/18/2018 EUR 44.95
PUBLICIS GROUPE 3.125 7/30/2014 EUR 35.66
RHODIA SA 0.500 1/1/2014 EUR 41.60
SCOR SA 4.125 1/1/2010 EUR 2.10
SOC AIR FRANCE 2.750 4/1/2020 EUR 20.62
SOITEC 6.250 9/9/2014 EUR 10.60
TEM 4.250 1/1/2015 EUR 58.00
THEOLIA 2.000 1/1/2014 EUR 11.78
VALEO 2.375 1/1/2011 EUR 46.30
ZLOMREX INT FIN 8.500 2/1/2014 EUR 34.62
ZLOMREX INT FIN 8.500 2/1/2014 EUR 33.50
GERMANY
-------
DEUTSCHE BK LOND 3.250 5/18/2012 CHF 49.44
DEUTSCHE BK LOND 1.000 3/31/2027 USD 45.32
ESCADA AG 7.500 4/1/2012 EUR 15.73
GOTHAER ALLG VER 5.527 9/29/2026 EUR 74.92
HSH NORDBANK AG 4.375 2/14/2017 EUR 62.38
HYPO REAL ESTATE 4.690 12/14/2026 EUR 74.32
IKB DEUT INDUSTR 4.500 7/9/2013 EUR 74.59
KFW 5.000 10/17/2035 EUR 73.74
L-BANK FOERDERBK 0.500 5/10/2027 CAD 43.23
LB BADEN-WUERTT 2.500 1/30/2034 EUR 57.55
LB BADEN-WUERTT 5.250 10/20/2015 EUR 34.82
RENTENBANK 1.000 3/29/2017 NZD 68.50
SOLON AG SOLAR 1.375 12/6/2012 EUR 39.05
TUI AG 5.500 11/17/2014 EUR 61.87
TUI AG 2.750 9/1/2012 EUR 72.82
VAC FINANZ 9.250 4/15/2016 EUR 39.25
VAC FINANZ 9.250 4/15/2016 EUR 39.25
GREECE
------
YIOULA GLASSWORK 9.000 12/1/2015 EUR 55.00
YIOULA GLASSWORK 9.000 12/1/2015 EUR 55.00
HUNGARY
-------
REP OF HUNGARY 2.110 10/26/2017 JPY 73.10
IRELAND
-------
ALLIED IRISH BKS 5.250 3/10/2025 GBP 61.54
ALLIED IRISH BKS 5.625 11/29/2030 GBP 60.30
BANK OF IRELAND 4.875 1/22/2018 GBP 74.72
DEPFA ACS BANK 4.900 8/24/2035 CAD 61.30
DEPFA ACS BANK 5.125 3/16/2037 USD 77.08
DEPFA ACS BANK 5.125 3/16/2037 USD 73.69
DEPFA ACS BANK 5.250 3/31/2025 CAD 72.89
DEPFA ACS BANK 0.500 3/3/2025 CAD 30.28
IRISH LIFE & PER 4.625 5/9/2017 EUR 69.74
IRISH NATIONWIDE 5.500 1/10/2018 GBP 37.39
IRISH NATIONWIDE 13.000 8/12/2016 GBP 59.33
UT2 FUNDING PLC 5.321 6/30/2016 EUR 63.43
ITALY
-----
ROMULUS FINANCE 5.441 2/20/2023 GBP 71.78
UNICREDITO ITALI 5.668 2/15/2035 EUR 73.84
LUXEMBOURG
----------
ARCELORMITTAL 7.250 4/1/2014 EUR 33.31
BREEZE 4.524 4/19/2027 EUR 82.67
CRC BREEZE 5.290 5/8/2026 EUR 74.10
LIGHTHOUSE INTL 8.000 4/30/2014 EUR 61.45
LIGHTHOUSE INTL 8.000 4/30/2014 EUR 62.53
NETHERLANDS
-----------
ABN AMRO BANK NV 7.540 6/29/2035 EUR 65.25
AI FINANCE B.V. 10.875 7/15/2012 USD 53.38
AIR BERLIN FINAN 1.500 4/11/2027 EUR 66.96
ALB FINANCE BV 9.000 11/22/2010 USD 25.49
ALB FINANCE BV 9.750 2/14/2011 GBP 25.49
ALB FINANCE BV 7.875 2/1/2012 EUR 25.47
ALB FINANCE BV 9.250 9/25/2013 USD 24.45
ALB FINANCE BV 8.750 4/20/2011 USD 24.48
ARPENI PR INVEST 8.750 5/3/2013 USD 54.00
ARPENI PR INVEST 8.750 5/3/2013 USD 54.00
ASTANA FINANCE 7.875 6/8/2010 EUR 22.50
ASTANA FINANCE 9.000 11/16/2011 USD 22.47
BK NED GEMEENTEN 0.500 2/24/2025 CAD 47.33
BK NED GEMEENTEN 0.500 6/27/2018 CAD 69.18
BLT FINANCE BV 7.500 5/15/2014 USD 60.88
BLT FINANCE BV 7.500 5/15/2014 USD 60.88
BSP FINANCE BV 10.750 11/1/2011 USD 72.38
CLONDALKIN BV 8.000 3/15/2014 EUR 86.58
ELEC DE CAR FIN 8.500 4/10/2018 USD 63.13
EM.TV FINANCE BV 5.250 5/8/2013 EUR 3.84
FINANCE & CREDIT 10.375 1/25/2010 USD 68.00
IVG FINANCE BV 1.750 3/29/2017 EUR 66.03
KAZKOMMERTS FIN 8.500 6/13/2017 USD 74.58
KAZKOMMERTS FIN 8.625 7/27/2016 USD 74.61
KBC IFIMA NV 6.004 2/7/2025 USD 67.08
NATL INVESTER BK 25.983 5/7/2029 EUR 36.30
NED WATERSCHAPBK 0.500 3/11/2025 CAD 46.23
NXP BV/NXP FUNDI 8.625 10/15/2015 EUR 68.75
NXP BV/NXP FUNDI 8.625 10/15/2015 EUR 68.87
NXP BV/NXP FUNDI 8.625 10/15/2015 EUR 67.50
Q-CELLS INTERNAT 1.375 2/28/2012 EUR 58.98
Q-CELLS INTERNAT 5.750 5/26/2014 EUR 67.52
RABOBANK 4.168 2/25/2020 EUR 88.10
TEMIR CAPITAL 9.500 5/21/2014 USD 20.13
TEMIR CAPITAL 9.000 11/24/2011 USD 17.75
TJIWI KIMIA FIN 13.250 8/1/2001 USD 0.00
TURANALEM FIN BV 7.875 6/2/2010 USD 33.00
TURANALEM FIN BV 6.250 9/27/2011 EUR 33.47
TURANALEM FIN BV 7.750 4/25/2013 USD 32.95
TURANALEM FIN BV 8.500 2/10/2015 USD 33.04
TURANALEM FIN BV 8.000 3/24/2014 USD 21.15
TURANALEM FIN BV 8.250 1/22/2037 USD 34.43
NORWAY
------
EKSPORTFINANS 0.500 5/9/2030 CAD 37.09
NORSKE SKOGIND 7.000 6/26/2017 EUR 66.45
POLAND
------
POLAND GOVT BOND 3.300 6/16/2038 JPY 71.98
POLAND-REGD-RSTA 2.810 11/16/2037 JPY 64.36
REP OF POLAND 2.648 3/29/2034 JPY 64.80
REP OF POLAND 3.220 8/4/2034 JPY 73.77
REP OF POLAND 2.620 11/13/2026 JPY 72.02
REP OF POLAND 4.250 7/20/2055 EUR 62.76
SPAIN
-----
GENERAL DE ALQUI 2.750 8/20/2012 EUR 56.17
MINICENTRALES 4.810 11/29/2034 EUR 62.34
SWEDEN
------
SWEDISH EXP CRED 0.500 12/17/2027 USD 49.06
SWITZERLAND
-----------
CYTOS BIOTECH 2.875 2/20/2012 CHF 50.19
UBS AG JERSEY 13.900 1/31/2011 USD 37.13
UBS AG JERSEY 14.640 1/31/2011 USD 38.78
UBS AG JERSEY 16.170 1/31/2011 USD 13.73
UBS AG JERSEY 10.000 2/11/2011 USD 60.52
UBS AG JERSEY 15.250 2/11/2011 USD 12.34
UBS AG JERSEY 16.160 3/31/2011 USD 44.30
UBS AG JERSEY 10.820 4/21/2011 USD 22.17
UBS AG JERSEY 11.030 4/21/2011 USD 21.72
UBS AG JERSEY 10.650 4/29/2011 USD 16.19
UBS AG JERSEY 13.000 6/16/2011 USD 47.34
UBS AG JERSEY 10.280 8/19/2011 USD 33.02
UBS AG JERSEY 10.360 8/19/2011 USD 51.70
UBS AG JERSEY 11.150 8/31/2011 USD 36.14
UBS AG JERSEY 3.220 7/31/2012 EUR 64.13
UBS AG JERSEY 9.000 5/18/2010 USD 57.86
UBS AG JERSEY 9.000 6/11/2010 USD 56.85
UBS AG JERSEY 9.000 7/2/2010 USD 57.15
UBS AG JERSEY 9.350 7/27/2010 USD 57.55
UBS AG JERSEY 9.000 7/19/2010 USD 56.95
UBS AG JERSEY 9.000 8/13/2010 USD 61.60
UBS AG JERSEY 9.000 3/9/2010 USD 57.79
UBS AG JERSEY 9.500 8/31/2010 USD 64.05
UBS AG JERSEY 10.000 10/25/2010 USD 64.60
UBS AG JERSEY 11.330 3/18/2011 USD 18.31
UBS AG LONDON 1.500 6/19/2018 JPY 64.31
UKRAINE GOVT 6.580 11/21/2016 USD 75.86
UKRAINE GOVT 4.950 10/13/2015 EUR 71.50
UKRAINE GOVT 4.950 10/13/2015 EUR 70.84
UNITED KINGDOM
--------------
ALPHA CREDIT GRP 2.940 3/4/2035 JPY 69.02
AMDOCS LIMITED 0.500 3/15/2024 USD 68.00
BANK OF SCOTLAND 6.200 2/7/2035 EUR 63.91
BANK OF SCOTLAND 2.359 3/27/2029 JPY 68.53
BARCLAYS BK PLC 7.610 6/30/2011 USD 53.78
BARCLAYS BK PLC 10.600 7/21/2011 USD 40.34
BARCLAYS BK PLC 11.650 5/20/2010 USD 41.13
BRADFORD&BIN BLD 5.750 12/12/2022 GBP 7.87
BRADFORD&BIN BLD 4.910 2/1/2047 EUR 73.68
BRADFORD&BIN BLD 2.875 10/16/2031 CHF 74.29
BRADFORD&BIN PLC 6.625 6/16/2023 GBP 6.98
BRIT INSURANCE 6.625 12/9/2030 GBP 70.30
BROADGATE FINANC 5.098 4/5/2033 GBP 72.21
CATTLES PLC 7.875 1/17/2014 GBP 8.50
CHELSEA BUILDING 5.875 3/7/2019 GBP 49.79
CITY OF KIEV 8.000 11/6/2015 USD 65.58
CITY OF KYIV 8.250 11/26/2012 USD 73.41
CJSC FIRST UKRAI 9.750 2/16/2010 USD 72.49
CO-OPERATIVE BNK 5.875 3/28/2033 GBP 74.14
EFG HELLAS PLC 2.760 5/11/2035 JPY 65.99
ENTERPRISE INNS 6.875 5/9/2025 GBP 77.22
ENTERPRISE INNS 6.375 9/26/2031 GBP 72.15
ENTERPRISE INNS 6.500 12/6/2018 GBP 82.41
EXIM OF UKRAINE 8.400 2/9/2016 USD 72.56
F&C ASSET MNGMT 6.750 12/20/2026 GBP 65.22
GREENE KING FIN 5.702 12/15/2034 GBP 72.38
HBOS PLC 4.500 3/18/2030 EUR 69.31
INEOS GRP HLDG 7.875 2/15/2016 EUR 63.50
INEOS GRP HLDG 7.875 2/15/2016 EUR 64.63
KENSINGTON GROUP 9.000 12/21/2015 GBP 62.25
LBG CAPITAL NO.1 6.439 5/23/2020 EUR 74.91
LBG CAPITAL NO.1 7.975 9/15/2024 GBP 76.62
LBG CAPITAL NO.2 6.385 5/12/2020 EUR 74.89
LOUIS NO1 PLC 10.000 12/1/2016 EUR 56.92
LOUIS NO1 PLC 8.500 12/1/2014 EUR 72.21
MARSTONS ISSUER 5.641 7/15/2035 GBP 71.58
NATL GRID GAS 1.771 3/30/2037 GBP 45.89
NATL GRID GAS 1.754 10/17/2036 GBP 47.16
NORTHERN ROCK 9.375 10/17/2021 GBP 57.46
NORTHERN ROCK 10.375 3/25/2018 GBP 59.60
NORTHERN ROCK 5.750 2/28/2017 GBP 55.50
OJSC BANK NADRA 9.250 6/28/2010 USD 19.50
PARAGON GROUP 7.000 4/20/2017 GBP 74.50
PRINCIPALITY BLD 5.375 7/8/2016 GBP 50.49
PRIVATBANK 8.750 2/9/2016 USD 67.00
PUNCH TAVERNS 6.468 4/15/2033 GBP 68.58
PUNCH TAVERNS 7.567 4/15/2026 GBP 72.60
ROYAL BK SCOTLND 5.944 2/15/2045 USD 49.70
ROYAL BK SCOTLND 9.500 4/4/2025 USD 60.30
ROYAL BK SCOTLND 4.700 7/3/2018 USD 73.21
SPIRIT ISSUER 5.472 12/28/2028 GBP 71.00
TXU EASTERN FNDG 6.450 5/15/2005 USD 0.01
UNIQUE PUB FIN 7.395 3/28/2024 GBP 72.69
UNIQUE PUB FIN 6.464 3/30/2032 GBP 59.33
VAB BANK 10.125 6/14/2010 USD 68.97
WESSEX WATER FIN 1.369 7/31/2057 GBP 20.13
*********
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 * * *