/raid1/www/Hosts/bankrupt/TCREUR_Public/091218.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
E U R O P E
Friday, December 18, 2009, Vol. 10, No. 249
Headlines
B E L G I U M
TRUVO SUBSIDIARY: Moody's Cuts Corporate Family Rating to 'Caa3'
F R A N C E
THOMSON SA: Files Chapter 15 Bankruptcy in New York
G E R M A N Y
PARAGON AG: Board Withdraws Self-Administration Application
PROMISE-I MOBILITY: Fitch Junks Ratings on Six Classes of Notes
SCHMACK BIOGAS: Viessmann Makes Binding Offer
* GERMANY: Eyes Sale of EUR207 Billion in Bunds Next Year
I C E L A N D
LANDSBANKI ISLANDS: Iceland to Take 81% Stake of New Landsbanki
K A Z A K H S T A N
ABK JEMCHUJINA: Creditors Must File Claims by December 30
DELFIN CASPIAN: Creditors Must File Claims by December 30
EKIBASTUZSKAYA TEPLOTSENTRAL: Claims Filing Ends December 30
GRAFIT PETROLEUM: Creditors Must File Claims by December 30
KOSTANAI VTOR: Creditors Must File Claims by December 30
MADELEINE LLP: Creditors Must File Claims by December 30
MANGISTAU ELECTRICITY: Fitch Keeps B Short-term Foreign Cur. IDR
SHYMKENT PIVO: Creditors Must File Claims by December 30
SIG COMBIBLOC: Creditors Must File Claims by December 30
STANDART OIL: Creditors Must File Claims by December 30
TRANSPORTNY HOLDING: Creditors Must File Claims by December 30
K Y R G Y Z S T A N
ARHAR TOUR: Creditors Must File Claims by January 13
CRUDEX TRADING: Creditors Must File Claims by January 13
DESIGN STUDIO: Creditors Must File Claims by January 13
NOOR AUTO: Creditors Must File Claims by January 13
PANASERVICE LLC: Creditors Must File Claims by January 13
RAI CONSULTANTS: Creditors Must File Claims by January 13
N E T H E R L A N D S
FAB CBO: Moody's Cuts Ratings on Three Classes of Notes to 'Ca'
JUBILEE CDO: Moody's Cuts Rating on Class S Notes to 'Ca'
ROYAL INVEST: Posts US$1.24-Mil. Net Loss for Third Quarter
P O L A N D
CIECH SA: Creditors Agree to Extend Loan Agreements to Jan. 15
R U S S I A
BALTKOM-STROY: Creditors Must File Claims by December 20
ELMOS LLC: Amurskaya Bankruptcy Hearing Set December 22
FIRST TRANSPORT: Creditors Must File Claims by December 20
GUS-KHRUSTALNY TEXTILE: Creditors Must File Claims by December 20
MYS CONSTRUCTION: Creditors Must File Claims by December 20
NEFTE-GAZ-REM: Creditors Must File Claims by December 20
PRIVOLZHSKAYA CONSTRUCTION: Creditors Must File Claims by Dec. 20
RYAZAN-STORY LLC: Creditors Must File Claims by December 20
RYAZAN-MONOLIT: Creditors Must File Claims by December 20
SIB-PROM-STROY: Creditors Must File Claims by December 20
SOGAZ INSURANCE: Fitch Gives Positive Outlook; Keeps 'BB' Rating
SPURT JSC: Fitch Assigns 'BB-' National Long-Term Rating
STIL-STORY LLC: Creditors Must File Claims by December 20
STROY-INVEST: Creditors Must File Claims by December 20
TEKHNO-STROY LLC: Creditors Must File Claims by December 20
TRANSPORT COMPANY: Creditors Must File Claims by December 20
UC RUSAL: Inches Closer to US$2 Billion Hong Kong IPO
URAL-INVEST-STROY: Creditors Must File Claims by December 20
VORONEZH MACHINE: Creditors Must File Claims by December 20
YUBILEYNAYA LLC: Creditors Must File Claims by December 20
* CITY OF KAZAN: Fitch Assigns 'B+' Rating on Domestic Bonds
S L O V A K R E P U B L I C
SKYEUROPE AIRLINES: Administrator Wants Bankruptcy Terminated
S L O V E N I A
ISTRABENZ GROUP: Creditors Fail to Agree on Voluntary Settlement
S P A I N
CAIXA D'ESTALVIS: Fitch Puts Issuer Rating on Negative Watch
REYAL URBIS: Lead Creditors Make Debt Restructuring Offer
T U R K E Y
TEKSTIL BANKASI: Fitch Affirms Individual Rating at 'D'
U K R A I N E
RODOVID BANK: Moratorium Extended Until March 15, Kommersant Says
U N I T E D K I N G D O M
BRITISH AIRWAYS: Court Says Union Vote on Christmas Strike Invalid
CATTLES PLC: Investors Demand Liquidation, Board Resignation
ECO-BAT TECHNOLOGIES: S&P Gives Negative Outlook; Keeps B+ Rating
EMAP INTERNATIONAL: Raises Going Concern Doubt
EMI GROUP: Citigroup Proposed Debt-for-Equity Swap
GLOBESPAN GROUP: In Administration; Pwc Appointed
KENSINGTON MORTGAGE: S&P Puts Ratings on CreditWatch Negative
LEHMAN BROTHERS: Court Sets March 19 Claims Bar Date
LEHMAN BROTHERS: Court Hands Down Judgment on Client Money
NOVAE INSURANCE: Fitch Cuts Insurer Financial Strength Rating
PUNCH TAVERNS: Moody's Downgrades Rating on C1 Notes to 'Ba1'
TITANEUROPE 2007-3: S&P Downgrades Ratings on Five Notes
URSUS EPC: Fitch Corrects Press Release; Cuts Ratings on Notes
WATFORD LEISURE: Suspends Share Trading; Administration Looms
X X X X X X X X
* BOOK REVIEW: Voluntary Assignments for the Benefit of Creditors
*********
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B E L G I U M
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TRUVO SUBSIDIARY: Moody's Cuts Corporate Family Rating to 'Caa3'
----------------------------------------------------------------
Moody's Investors Service has downgraded the Corporate Family
Rating of Truvo Subsidiary Corp to Caa3 from Caa2, and its
Probability of Default Rating to Caa2 from Caa1. At the same
time, Moody's downgraded to Ca from Caa3 the ratings of the
EUR395 million and US$200 million senior notes due 2014 issued by
Truvo. The outlook for all the ratings is negative. The
downgrade reflects Moody's concerns about the group's challenging
operating environment and the resulting continuing impact on its
financial risk profile, together with the decreased recovery
prospects for debt holders in the case of distress.
As communicated by management in its 9M 2009 results, Truvo has
been experiencing significant top-line pressure (revenue: to be
down 16-19% in 2009 y-o-y) due to the challenging macroeconomic
conditions in its markets and faster-than-expected migration to
online from print. Considering the high operational gearing of
the business and its investments in online activities, Truvo's
EBITDA generation capacity has also been negatively impacted, with
EBITDA expected to decrease 35-38% in 2009 y-o-y, despite ongoing
cost-cutting measures.
Truvo's preliminary business plan also suggests a rather bleak
outlook for 2010, with its top-line expected to be under pressure
in 2010 and into 2011, before seeing some growth in 2012, which is
yet subject to the company's ability to transform the business
from directory to a local search and advertising business over the
medium term. Such results would significantly undermine the
group's free cash flow generation while exerting further pressure
on its already aggressive leverage profile. Indeed, management
expects the company's free cash flow to be negative over the next
three years. Therefore, Moody's is concerned about the company's
liquidity in 2011 and onwards, which suggests an increased default
risk in the medium term.
The ratings also reflect Moody's concerns in relation to the
company's capital structure, which Moody's considers
unsustainable, and therefore the risk associated with the
uncertainty over how Truvo will ultimately decide to strengthen
its credit profile in conjunction with reducing its overall debt
burden, which may include the possibility of a distressed
exchange, in the near to medium term.
The Caa3 CFR continues to incorporate Moody's expectations of
below-average family recovery. However, the rating action
reflects Moody's re-evaluation of the potential recovery prospects
for debt holders in the case of distress based on the rating
agency's re-consideration of potential post-default valuations.
Therefore, Moody's has revised its family recovery assumption to
the 30% range from its earlier assumption of the 40% range. The
instrument ratings of Ca (LGD6) on the senior notes due 2014 have
been derived using Moody's LGD methodology.
The last rating action was implemented on 29 April 2009, when
Moody's downgraded Truvo's CFR to Caa2 from B3, reflecting the
deteriorating trend in the group's operating environment, and its
negative impact on its financial risk profile, together with
Moody's re-evaluation of the potential recovery prospects for debt
holders in the case of distress.
Truvo'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 profile 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 Truvo's core industry and Truvo's ratings are believed to
be comparable with those of other issuers with similar credit
risk.
Truvo Intermediate Corp., the parent of Truvo Subsidiary Corp.,
is, through its subsidiaries, the leading directory publisher in
Belgium, Ireland and Romania. Through its joint venture with
Portugal Telecom, the company is the leading directory publisher
in Portugal and, through its minority interests, holds leading
positions in the directory markets in South Africa and Puerto
Rico. In 2008, the group generated consolidated revenues of
EUR318.5 million and EBITDA of EUR159.9 million under IFRS.
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F R A N C E
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THOMSON SA: Files Chapter 15 Bankruptcy in New York
---------------------------------------------------
Tiffany Kary at Bloomberg News reports that Thomson SA filed for
Chapter 15 bankruptcy before the U.S. Bankruptcy Court for the
Southern District of New York in Manhattan to shield assets from
U.S. lawsuits while it restructures debt in French court.
Bloomberg relates Thomas said in a petition that assets and debt
both exceed US$1 billion.
Thomson, Bloomberg says, seeks to protect assets including the
stock of its Delaware-based Thomson Inc. unit.
"Thomson's debt became burdensome" last year because of increasing
working capital needs, restructuring costs and exchange-rate
fluctuations, Thomson Chairman and Chief Executive Officer
Frederic Rose said in court filings, according to Bloomberg.
Mr. Rose, as cited by Bloomberg, said the debt, which includes
privately placed notes and a multi-currency syndicated credit
facility, totals about EUR2.9 billion (US$4.2 billion).
The case is In re Thomson SA, 09-17355, U.S. Bankruptcy Court,
Southern District of New York (Manhattan).
Dow Jones Newswires' Patrick Fitzgerald reports U.S. Bankruptcy
Judge Burton R. Lifland ordered Wednesday a provisional stay
effectively safeguarding Thomson's U.S. assets pending a
recognition hearing on the Chapter 15 petition. That hearing is
scheduled for January 14, in Manhattan, the report adds.
Dow Jones notes Thomson's assets in the U.S. -- including all of
the stock in its Delaware-registered principal subsidiary -- are
critical to the Company's operations and its value. According to
Dow Jones, Thomson said in court papers the U.S. is the Company's
most important market, with almost half of its revenue last year
coming from the U.S.
Mr. Fitzgerald relates Thomson, which has some US$3.8 billion in
debt, had been negotiating with its creditors for months over the
terms of a restructuring. While a majority of the company's
creditors agreed to a deal last summer, not all of them came on
board. As the deadline to reach a deal passed, Thomson in
November filed a request for "sauvegarde" the French equivalent of
a Chapter 11 bankruptcy filing.
"Thomson will face immediate and irreparable harm if its U.S.
assets are targeted by creditors," the company's lawyers said in
court papers, according to Dow Jones. Unless the U.S. assets are
protected pending recognition, "Thomson and its creditors will be
injured and its ability to complete its sauvegarde will be
jeopardized," the Company added.
Dow Jones notes Thomson said it is proposing a new plan based on
the terms agreed to earlier this year by its senior creditors.
Under the sauvegarde process, lenders and bondholder will then
vote on the proposed restructuring plan later this month. If
approved, Thomson says it will exit the process by February of
next year, according to the report.
If Thomson fails to obtain the required approval of two-thirds of
its creditors, or if shareholders reject the required resolutions,
Thomson will ask the French court to impose a "plan de
sauvegarde," Dow Jones says.
According to Dow Jones, under such a court-imposed plan, Thomson
said it expects that its current debt would be maintained, with
principal repayment rescheduled over ten years with an annual
repayment of 5% during the first nine years. The interest rate
would stay the same as specified by Thomson's current debt
agreements.
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
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PARAGON AG: Board Withdraws Self-Administration Application
-----------------------------------------------------------
Paderborn is to open proceedings concerning the insolvency of
paragon AG. In January 2010, Paragon will also file a final
insolvency plan with the court, which will then be presented to
the creditors' meeting for a decision. Klaus Dieter Frers is to
remain as chief executive officer even after the insolvency
proceedings have been opened.
At the same time, the Management Board will withdraw the
application for self-administration filed with the Paderborn local
court. Since the application for insolvency was filed on
October 5, 2009, paragon has almost completed the restructuring
program begun in autumn 2008 in close consultation with the
preliminary insolvency administrator Dr. Frank Kebekus. By the
end of the year the workforce of 660 will have been cut to
around 400. The company has thus adjusted to the fall in orders
in the wake of the global crisis in the automotive industry and
has been operating profitably again for a number of months.
paragon AG is a direct supplier to the automotive industry and is
listed on the Deutsche Boerse Prime Standard index in
Frankfurt/Main, Germany. The Company develops, manufactures, and
markets innovative solutions in its Automotive (Sensors/Actuators
and Cockpit Systems) and Electronic Solutions divisions. Its
product portfolio includes the world's leading AQS air
quality sensor by far as well as hands-free speaking equipment and
instrumentation systems. In addition to its headquarters in
Delbrueck, North Rhine-Westphalia, paragon also operates locations
in Suhl, Thuringia; St. Georgen, Baden-Wuerttemberg; Nuremberg,
Bavaria; and Heidenheim, Baden-Wuerttemberg. In fiscal 2007, the
paragon Group generated sales totaling EUR108.9 million with a
workforce of 594 employees.
PROMISE-I MOBILITY: Fitch Junks Ratings on Six Classes of Notes
---------------------------------------------------------------
Fitch Ratings has downgraded Promise-I Mobility 2005-1 and
Promise-I Mobility 2005-2 floating-rate notes due May 2014 and
February 2015, respectively, and removed them from Rating Watch
Negative. The RWN was assigned in August 2009 pending full
analysis following the implementation of Fitch's revised rating
criteria for European granular corporate balance-sheet
securitizations.
The Promise transactions are synthetic securitizations with
exposures to small- to medium-sized enterprises in Germany. At
closing, IKB Deutsche Industriebank Aktiengesellschaft (IKB, rated
'BBB-') bought protection under a bank swap in respect of the
reference portfolios from KfW.
The rating actions are:
Promise Mobility-I 2005-1
-- EUR0.16m Class A+ (DE000A0D0HT6): downgraded to 'A' from
'AAA'; removed from RWN; assigned Negative Outlook and Loss
Severity Rating 'LS-1'
-- EUR27.8m Class A (DE000A0D0HU4): downgraded to 'BB' from
'AAA'; removed from RWN; assigned Negative Outlook and 'LS-3'
-- EUR8.3m Class B (DE000A0D0HV2): downgraded to 'B' from 'AA';
removed from RWN; assigned Negative Outlook and 'LS-5'
-- EUR7.5m Class C (DE000A0D0HW0): downgraded to 'CCC' from 'A';
removed from RWN
-- EUR5.3m Class D (DE000A0D0HX8): downgraded to 'CCC' from
'BBB'; removed from RWN
-- EUR5.3m Class E (DE000A0D0HY6): downgraded to 'CCC' from
'BB+'; removed from RWN
Promise Mobility-I 2005-2
-- EUR0.5m Class A+ (DE000A0GJ9A9): downgraded to 'A' from
'AAA'; removed from RWN; assigned Negative Outlook and 'LS-1'
-- EUR54.9m Class A (DE000A0GJ9B7): downgraded to 'BB' from
'AAA'; removed from RWN; assigned Negative Outlook and 'LS-3'
-- EUR21.6m Class B (DE000A0GJ9C5): downgraded to 'B' from 'AA';
removed from RWN; assigned Negative Outlook and 'LS-5'
-- EUR22.5m Class C (DE000A0GJ9D3): downgraded to 'CCC' from
'A'; removed from RWN
-- EUR21.6m Class D (DE000A0GJ9E1): downgraded to 'CCC' from
'BBB'; removed from RWN
-- EUR14.4m Class E (DE000A0GJ9F8): downgraded to 'CCC' from
'BB+'; removed from RWN
The downgrades reflect the application of the updated SME CLO
criteria, the high obligor concentration in both portfolios, as
well as the ongoing deterioration in credit performance in recent
quarters indicated by an increase in non-performing loans. It
should be noted that the increase in the number of non-performing
loans is due to the poor performance of the obligors and IKB's
updated rating scale that now classifies all restructured and
credit impaired loans as non-performing.
As of the November 2009 report, the current non-performing bucket
of Promise Mobility-I 2005-1 stands at 10.5% of the portfolio.
When the lowest rating category of the performing bucket is added,
which Fitch believes is highly likely to be credit impaired, the
total is 12%. Fitch's recovery expectations for this transaction
are low. Therefore, the expected losses are high when compared to
credit enhancements of 14.6%, 8.9%, 7.2%, 5.7%, 4.6% and 3.5% for
Classes A+, A, B, C, D and E respectively. In addition, the
portfolio is concentrated when compared to traditional granular
pools. The top 20 obligors account for 17.1% of the portfolio and
the top five assets account for 5.13% of the portfolio.
As of the October 2009 report, the current non-performing bucket
of Promise Mobility-I 2005-2 stands at 8.1% of the portfolio.
When the lowest rating category of the performing bucket is added,
which Fitch believes is highly likely to be credit impaired, the
total is 11.4%. Fitch's recovery expectations for this
transaction are low. Therefore, the expected losses are high when
compared to credit enhancements of 11.8%, 8.1%, 6.7%, 5.2%, 3.8%
and 2.8% for Classes A+, A, B, C, D and E respectively. In
addition, the portfolio is concentrated when compared to
traditional granular pools. The top 20 obligors account for 12.7%
of the portfolio and the top five assets account for 3.5% of the
portfolio.
The revolving period for Promise Mobility-I 2005-1 ended in April
2009, allowing the deal to slightly benefit from portfolio
seasoning and structural de-leveraging. The revolving period for
Promise Mobility-I 2005-2 is due to conclude at end-December 2009.
However, the application of Fitch's updated SME CLO criteria has
resulted in significantly higher probability of default
assumptions and greater expected losses. Furthermore, the credit
enhancement is deemed insufficient to support the expected losses,
particularly for the junior notes. The Negative Outlooks reflect
Fitch's view that the portfolios will continue to see more credit
deterioration.
SCHMACK BIOGAS: Viessmann Makes Binding Offer
---------------------------------------------
Mike Gavin at Bloomberg News reports that Schmack Biogas AG said
Viessmann Group has made a binding offer for the company.
As reported by the Troubled Company Reporter-Europe on Oct. 23,
2009, Bloomberg News said that Schmack filed an application for
the opening of insolvency proceedings due to the company's
"imminent failure of pay."
Schmack Biogas AG is a German supplier of biogas plants.
Established in 1995, the company provides its services through two
divisions, namely Design and Construction and Service, and is one
of the few full-service providers in the industry. In addition to
full-service repair and maintenance contracts, the company also
provides comprehensive microbiological support and integrated
plant management services.
* GERMANY: Eyes Sale of EUR207 Billion in Bunds Next Year
---------------------------------------------------------
Dow Jones Newswires' Emese Bartha and Andrea Thomas report the
German government plans to sell a record EUR207 billion (US$300
billion) in government bonds in 2010 to cover a 10.5% rise in
public spending, adding a new burden to the euro-zone's leading
bond market.
Dow Jones says the total, which follows nominal bond issuance of
EUR153 billion this year, is likely to keep Germany as the second-
largest issuer of government bonds in the 16-member currency bloc,
after Italy.
Dow Jones relates the market for German government bonds, called
bunds, is a benchmark against which other euro-zone government
bonds are measured because of Germany's top credit rating and the
high liquidity of its government bonds,
According to the report, the bund market remained buoyed Thursday
as investors chose to stay in bunds amid credit-market jitters
after Standard & Poor's Ratings Services downgraded Greece's
sovereign-debt rating late Wednesday.
According to the report, the new German government's first budget
sees a record EUR85.8 billion in new borrowing next year. When
spending for financial-sector bailouts and other extraordinary
measures is included, total new debt will reach around EUR100
billion, the report says.
The report also says the German Finance Agency penciled in nominal
government bond issuance of EUR56 billion in the first quarter,
EUR59 billion in the second quarter, EUR46 billion in the third
quarter and a further EUR46 billion in the fourth quarter.
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I C E L A N D
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LANDSBANKI ISLANDS: Iceland to Take 81% Stake of New Landsbanki
---------------------------------------------------------------
Omar R. Valdimarsson at Bloomberg News reports that Iceland's
government will hold 81% of New Landsbanki, the state-controlled
unit of failed Landsbanki Islands hf.
Bloomberg relates Finance Minister Steingrimur Sigfusson said at a
press conference in Reykjavik Wednesday that the failed bank's
resolution committee will retain a 19% share in the new unit
According to Bloomberg, the committee, which represents Landsbanki
Islands creditors, will also receive a ISK260 billion (US$2.06
billion) 10-year bond to cover losses.
Mr. Sigfusson, as cited by Bloomberg, said the government will
provide New Landsbanki with ISK122 billion in equity bringing
total assets of the new unit to ISK944 billion.
Bloomberg says the agreement completes the recapitalization of
Iceland's three biggest banks after their failure in October last
year.
The Troubled Company Reporter-Europe, citing Bloomberg News,
reported on Dec. 16, 2009, that the International Monetary Fund
said Iceland must complete the refinancing of Landsbanki Islands
and the country's network of savings banks before the IMF will
hand over the next installment of the island's loan. According to
Bloomberg, Iceland is relying on a US$4.6 billion IMF loan to
rebuild the economy, which suffered the worst decline in the
western world after its banks were unable to finance debt that
swelled to 10 times the size of the economy.
About Landsbanki Islands
Landsbanki Islands hf, also commonly known as Landsbankinn in
Iceland, is an Icelandic bank. On October 7, 2008, the Icelandic
Financial Supervisory Authority took control of Landsbanki and two
other major banks.
Landsbanki filed for Chapter 15 protection on Dec. 9, 2008 (Bankr.
S.D. N.Y. Case No.: 08-14921). Gary S. Lee, Esq., at Morrison &
Foerster LLP, represents the Debtor. When it filed for protection
from its creditors, it listed assets and debts of more than US$1
billion each.
As reported in the Troubled Company Reporter-Europe on June 18,
2009, on June 15, 2009, British authorities revoked the October
2008 Freezing Order on the assets of Landsbanki in Britain, which
were set using anti-terrorism legislation. Following the fall of
Iceland's three largest banks, Icelandic banking assets in the UK
were frozen on October 8, 2008 using anti-terrorism laws. The
Icelandic government has ever since protested the application of
this legislation against Iceland.
===================
K A Z A K H S T A N
===================
ABK JEMCHUJINA: Creditors Must File Claims by December 30
---------------------------------------------------------
Creditors of LLP ABK Jemchujina have until December 30, 2009, to
submit proofs of claim to:
Aimanov Str. 6
Astana
Kazakhstan
The Specialized Inter-Regional Economic Court of Astana commenced
bankruptcy proceedings against the company on September 25, 2009,
after finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of Astana
Abai Ave. 36
Astana
Kazakhstan
DELFIN CASPIAN: Creditors Must File Claims by December 30
---------------------------------------------------------
Creditors of LLP Delfin Caspian Kazakhstan have until December 30,
2009, to submit proofs of claim to:
Abai Str. 10a
Atyrau
Kazakhstan
The Specialized Inter-Regional Economic Court of Atyrau commenced
bankruptcy proceedings against the company on October 1, 2009,
after finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of Atyrau
Satpaev Str. 3
Atyrau
Kazakhstan
EKIBASTUZSKAYA TEPLOTSENTRAL: Claims Filing Ends December 30
------------------------------------------------------------
Creditors of LLP Ekibastuzskaya Teplotsentral have until
December 30, 2009, to submit proofs of claim to:
Berkimbaev Str. 92-36
Ekibastuz
Kazakhstan
The Specialized Inter-Regional Economic Court of Pavlodar
commenced bankruptcy proceedings against the company on
September 29, 2009, after finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of Pavlodar
Djambulskaya Str. 6
Ekibastuz
Kazakhstan
GRAFIT PETROLEUM: Creditors Must File Claims by December 30
-----------------------------------------------------------
LLP Grafit Petroleum is currently undergoing liquidation.
Creditors have until December 30, 2009, to submit proofs of claim
to:
Potanin Str. 6
Almaty
Kazakhstan
KOSTANAI VTOR: Creditors Must File Claims by December 30
--------------------------------------------------------
Creditors of LLP Kostanai Vtor Met have until December 30, 2009,
to submit proofs of claim to:
The Specialized Inter-Regional
Economic Court of Kostanai
Baitursynov Str. 70
Kostanai
Kazakhstan
The court commenced bankruptcy proceedings against the company on
October 16, 2009.
MADELEINE LLP: Creditors Must File Claims by December 30
--------------------------------------------------------
Creditors of LLP Madeleine have until December 30, 2009, to submit
proofs of claim to:
Aimanov Str. 6
Astana
Kazakhstan
The Specialized Inter-Regional Economic Court of Astana commenced
bankruptcy proceedings against the company on September 25, 2009,
after finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of Astana
Abai Ave. 36
Astana
Kazakhstan
MANGISTAU ELECTRICITY: Fitch Keeps B Short-term Foreign Cur. IDR
-----------------------------------------------------------------
Fitch Ratings has affirmed seven Kazakh corporates' Long-term
foreign currency Issuer Default Ratings and revised their rating
Outlooks to Stable from Negative. A full rating breakdown is
provided below.
The rating actions reflect the agency's affirmation of
Kazakhstan's Long-term foreign and local currency IDRs at 'BBB-'
and 'BBB', respectively, and the affirmation of the sovereign's
Short-term foreign currency IDR at 'F3'. The agency has revised
the Outlooks on Kazakhstan's Long-term foreign and local currency
IDRs to Stable from Negative (for further information, please see
the 16 December 2009 comment, entitled 'Fitch Revises Kazakhstan's
Outlook to Stable; Affirms 'BBB-'', available on the agency's
website, www.fitchratings.com.)
The rating actions affecting the seven Kazakh companies are.
KazMunaiGaz National Company (NC KMG)
-- Long-term foreign currency IDR: affirmed at 'BBB-'; Outlook
revised to Stable from Negative
-- Long-term local currency IDR: affirmed at 'BBB'; Outlook
revised to Stable from Negative
-- Short-term foreign currency IDR: affirmed at 'F3'
-- Senior unsecured rating: affirmed at 'BBB-'
NC KMG's ratings are aligned with the sovereign's because it was
established as a wholly state-owned enterprise to represent the
interests of the government in Kazakhstan's oil and gas industry.
JSC KazMunaiGas Exploration Production (KMG EP)
-- Long-term foreign currency IDR: affirmed at 'BBB-'; Outlook
revised to Stable from Negative
-- Long-term local currency IDR: affirmed at 'BBB-'; Outlook
revised to Stable from Negative
-- Short-term foreign currency IDR: affirmed at 'F3'
JSC KazTransOil (KTO)
-- Long-term foreign currency IDR: affirmed at 'BBB-'; Outlook
revised to Stable from Negative
-- Short-term foreign currency IDR: affirmed at 'F3'
Fitch rates NC KMG's subsidiaries (including KMG EP and KTO) on a
standalone basis, as the legal, operational and strategic ties
between the parent (NC KMG) and its subsidiaries are considered to
be limited, according to Fitch's Parent and Subsidiary Rating
Linkage methodology.
JSC National Atomic Company Kazatomprom
-- Long-term foreign currency IDR: affirmed at 'BBB-'; Outlook
revised to Stable from Negative
-- Short-term foreign currency IDR: affirmed at 'F3'
Kazatomprom is a 100% state-owned uranium operator. Kazatomprom's
ratings reflect the company's strong position in the global
uranium market, its strategic importance to Kazakhstan and its
solid financial profile.
Kazakhstan Temir Zholy
-- Long-term foreign currency IDR: affirmed at 'BBB-'; Outlook
revised to Stable from Negative
-- Senior unsecured rating: affirmed at 'BBB-'
KTZ's ratings are aligned with the sovereign's, given the 100%
state-owned railway company's strategic importance to Kazakhstan
due to the country's vast terrain, land-locked position and
underdeveloped road infrastructure. Fitch notes that KTZ's YE09
leverage (1.3x at YE08) will increase markedly, but it is expected
to remain within its covenant level of 2.5x.
Kazakhstan Electricity Grid Operating Company
-- Long-term foreign currency IDR: affirmed at 'BBB-'; Outlook
revised to Stable from Negative
-- Long-term local currency IDR: affirmed at 'BBB'; Outlook
revised to Stable from Negative
-- Short-term foreign currency IDR: affirmed at 'F3'
KEGOC's ratings are aligned with the sovereign's given its 100%
state ownership, state guarantees for some of its debt, and strong
state support resulting from the strategic nature of Kazakhstan's
national electricity transmission grid. Fitch notes that KEGOC is
expected to breach its 5x debt to EBITDA covenant with the
European Bank for Reconstruction and Development at YE09 as a
result of the Kazakh tenge's devaluation in February 2009 (the
company's debt is largely US$-denominated), weaker cash flow
generation and debt-funded capex. Fitch understands that the
government is in the process of providing additional equity
capital to the company which will improve liquidity and help
address covenant waivers.
Mangistau Electricity Distribution Network Company
-- Long-term foreign currency IDR: affirmed at 'BB'; Outlook
revised to Stable from Negative
-- Foreign currency senior unsecured rating: affirmed at 'BB'
-- Short-term foreign currency IDR: affirmed at 'B'
-- Long-term local currency IDR: affirmed at 'BB+'; Outlook
revised to Stable from Negative
-- Local currency senior unsecured rating: affirmed at 'BB+'
-- National Long-term Rating: affirmed at 'AA-(kaz)'; Outlook
revised to Stable from Negative
MEDNC's ratings are linked to the sovereign's, but notched down to
reflect that little indication has been given by MEDNC's ultimate
parent, Samruk, that it will provide timely financial assistance
in case of need. The company has a near-monopoly position in
electricity transmission and distribution in Mangistau, one of
Kazakhstan's strategic oil and gas regions. MEDNC's debt is
denominated in Kazakh tenge and its revenues have not been
significantly affected by the economic slowdown.
SHYMKENT PIVO: Creditors Must File Claims by December 30
--------------------------------------------------------
CJSC Trade House Shymkent Pivo(Shymkent Brewery) is currently
undergoing liquidation. Creditors have until December 30, 2009,
to submit proofs of claim to:
Orlov Str. 109a
Karaganda
Kazakhstan
SIG COMBIBLOC: Creditors Must File Claims by December 30
--------------------------------------------------------
LLP Sig Combiblock Gmbh & Co Kg is currently undergoing
liquidation. Creditors have until December 30, 2009, to submit
proofs of claim to:
Seifullin Ave. /Mametova Str. 404/67/9
Almaty
Kazakhstan
STANDART OIL: Creditors Must File Claims by December 30
-------------------------------------------------------
LLP Standart Oil Snub is currently undergoing liquidation.
Creditors have until December 30, 2009, to submit proofs of claim
to:
Micro District 1, 73b
Almaty
Kazakhstan
TRANSPORTNY HOLDING: Creditors Must File Claims by December 30
--------------------------------------------------------------
LLP Transportny Holding Kazakhstana is currently undergoing
liquidation. Creditors have until December 30, 2009, to submit
proofs of claim to:
Auezov Str. 46
Astana
Kazakhstan
===================
K Y R G Y Z S T A N
===================
ARHAR TOUR: Creditors Must File Claims by January 13
----------------------------------------------------
LLC Arhar Tour Service is currently undergoing liquidation.
Creditors have until January 13, 2010, to submit proofs of claim:
Inquires can be addressed to (0-543) 91-86-56
CRUDEX TRADING: Creditors Must File Claims by January 13
--------------------------------------------------------
LLC Crudex Trading is currently undergoing liquidation. Creditors
have until January 13, 2010, to submit proofs of claim to:
FEZ Bishkek
Ak-Chyi
Bishkek
Kyrgyzstan
DESIGN STUDIO: Creditors Must File Claims by January 13
-------------------------------------------------------
LLC Design Studio New is currently undergoing liquidation.
Creditors have until January 13, 2010, to submit proofs of claim:
Inquires can be addressed to (+996 312) 55-17-49.
NOOR AUTO: Creditors Must File Claims by January 13
---------------------------------------------------
LLC Noor Auto is currently undergoing liquidation. Creditors have
until January 13, 2010, to submit proofs of claim to:
Jybek Jolu Ave. 79
Bishkek
Kyrgyzstan
PANASERVICE LLC: Creditors Must File Claims by January 13
---------------------------------------------------------
LLC Panaservice is currently undergoing liquidation. Creditors
have until January 13, 2010, to submit proofs of claim:
Inquires can be addressed to (0-555) 09-25-75.
RAI CONSULTANTS: Creditors Must File Claims by January 13
---------------------------------------------------------
Representation of Cyprian Company RAI Consultants Services Limited
is currently undergoing liquidation. Creditors have until January
13, 2010, to submit proofs of claim:
Inquires can be addressed to (+996 312) 55-68-88.
=====================
N E T H E R L A N D S
=====================
FAB CBO: Moody's Cuts Ratings on Three Classes of Notes to 'Ca'
---------------------------------------------------------------
Moody's Investors Service took these rating actions on notes
issued by FAB CBO 2003-1 B.V.
Issuer: FAB CBO 2003-1 B.V.
-- EUR217,500,000 Class A-1E Floating Rate Notes, Downgraded to
A2; previously on March 11, 2009 Downgraded to Aa3
-- EUR10,000,000 Class A-1F Zero Coupon Notes, Downgraded to A2;
previously on March 11, 2009 Downgraded to Aa3
-- EUR10,500,000 Class A-2aE Floating Rate Notes, Downgraded to
B1; previously on March 11, 2009 Downgraded to Baa2
-- EUR12,900,000 Class A-2bE Floating Rate Notes, Downgraded to
B1; previously on March 11, 2009 Downgraded to Baa2
-- EUR6,600,000 Class A-2F Fixed Rate Notes, Downgraded to B1;
previously on March 11, 2009 Downgraded to Baa2
-- EUR14,500,000 Class A-3E Floating Rate Notes, Downgraded to
Ca; previously on March 11, 2009 Downgraded to B1
-- EUR8,000,000 Class A-3F Fixed Rate Notes, Downgraded to Ca;
previously on March 11, 2009 Downgraded to B1
-- EUR8,000,000 Class BE Floating Rate Notes, Downgraded to Ca;
previously on March 11, 2009 Downgraded to Caa2
-- EUR7,000,000 Class BF Fixed Rate Notes, Downgraded to Ca;
previously on March 11, 2009 Downgraded to Caa2
-- EUR15,000,000 (current remaining balance EUR9,627,112)
Class S2 Combination Notes, Downgraded to Ba1; previously on
March 11, 2009 Downgraded to Baa1
-- EUR5,000,000 (current remaining balance EUR2,460,821) Class
S3 Combination Notes, Downgraded to Baa3; previously on
March 11, 2009 Confirmed at A1
The transaction is a managed cash-flow CDO backed mainly by
mezzanine tranches of European ABS, RMBS, CMBS, CLO and other
CDOs. This deal has passed reinvestment period and the portfolio
became static since August 2008.
According to Moody's, the rating actions taken on the notes are a
result of credit deterioration of the underlying portfolio.
Approximately 42% of the total portfolio experienced rating
downgrade compared to last rating action in March 2009. On the
average, the downgrade scale is 4 to 5 notches. This is observed
through a decline in the average credit rating as measured by the
portfolio weighted average rating factor 'WARF'. In the latest
trustee report of 30th October 2009, the WARF is 1902 compared to
a WARF of 544 reported in February 2009. Moody's notes that the
proportion of securities rated Ca and below has increased to 6.76%
from 0% since Moody's last review of the transaction in March
2009. Approximately 2.66% of the current portfolio is rated Caa
range. This portfolio also has a 5.04% portion of assets
currently under review for further downgrade. Moody's also
performed a number of sensitivity analyses, including
consideration of a further decline in portfolio WARF quality.
JUBILEE CDO: Moody's Cuts Rating on Class S Notes to 'Ca'
---------------------------------------------------------
Moody's Investors Service took these rating actions on notes
issued by Jubilee CDO III B.V.
-- EUR222,000,000 Class A-1 Senior Secured Floating Rate Notes
due 2017 (current balance of EUR213,064,218), Downgraded to
Aa1; previously on January 20, 2004 Assigned Aaa;
-- EUR43,000,000 Class A-2 Senior Secured Floating Rate Notes
due 2017, Downgraded to Baa1; previously on March 4, 2009 Aa2
Placed Under Review for Possible Downgrade;
-- EUR32,000,000 Class B Senior Secured Deferrable Floating Rate
Notes due 2017, Downgraded to B1; previously on March 20,
2009 Downgraded to Ba2 and Remained On Review for Possible
Downgrade;
-- EUR13,000,000 Class C Senior Secured Deferrable Floating Rate
Notes due 2017 (current balance of EUR13,278,246), Downgraded
to Caa2; previously on March 20, 2009 Downgraded to Caa1 and
Remained On Review for Possible Downgrade;
-- EUR6,000,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2017 (current balance of EUR6,435,791), Downgraded
to Ca; previously on March 20, 2009 Downgraded to Caa3 and
Remained On Review for Possible Downgrade;
-- EUR4,000,000 Class S Combination Notes due 2017 (current
rated balance of EUR2,562,423), Downgraded to Ca; previously
on January 20, 2004 Assigned Ba1.
Moody's has also withdrawn the rating assigned to the EUR7,500,000
Class Q Combination Notes due 2017. These notes were split back
into their original components and thus are no longer outstanding
under Combination notes format.
This transaction is a managed cash leveraged loan collateralized
loan obligation with exposure to predominantly European senior
secured loans as well as 9.4% of mezzanine loan exposure.
The rating actions reflect Moody's revised assumptions with
respect to default probability and the calculation of the
diversity score as described in the press release dated
February 4, 2009, titled "Moody's updates key assumptions for
rating CLOs." These revised assumptions have been applied to all
corporate credits in the underlying portfolio, the revised
assumptions for the treatment of ratings on "Review for Possible
Downgrade", "Review for Possible Upgrade", or with a "Negative
Outlook" being applied to those corporate credits that are
publicly rated.
Moody's also notes that a material proportion of the collateral
pool consists of debt obligations whose credit quality has been
assessed through Moody's credit estimates. As credit estimates do
not carry credit indicators such as ratings reviews and outlooks,
a stress of a quarter notch-equivalent assumed downgrade was
applied to each of these estimates.
According to Moody's, the rating actions taken on the notes are
also a result of credit deterioration of the underlying portfolio.
This is observed through a decline in the average credit rating as
measured through the portfolio weighted average rating factor
'WARF' (currently 2904), an increase in the amount of defaulted
securities (currently 7.1% of the portfolio), an increase in the
proportion of securities from issuers rated Caa1 and below
(currently 13.9% of the portfolio), and a failure of Class B, C
and D par value tests. These measures were taken from the recent
trustee report dated November 25, 2009. Moody's also performed a
number of sensitivity analyses, including consideration of a
further decline in portfolio WARF quality. Due to the impact of
all the aforementioned stresses, key model inputs used by Moody's
in its analysis, such as par, weighted average rating factor, and
weighted average recovery rate, may be different from trustee's
reported numbers
In addition to the quantitative factors that are explicitly
modelled, qualitative factors are part of the rating committee
considerations. These qualitative factors include the structural
protections in each transaction, the recent deal performance in
the current market environment, the legal environment, specific
documentation features, the collateral manager's track record, and
the potential for selection bias in the portfolio. All
information available to rating committees, including
macroeconomic forecasts, input from other Moody's analytical
groups, market factors, and judgments regarding the nature and
severity of credit stress on the transactions, may influence the
final rating decision.
ROYAL INVEST: Posts US$1.24-Mil. Net Loss for Third Quarter
-----------------------------------------------------------
Royal Invest International Corp. and subsidiaries reported a net
loss of US$1,243,560 on revenues of US$2,945,648 for the three
months ended September 30, 2009, compared with a net loss of
US$3,120,661 on revenues of US$3,729,514 for the same period of
2008.
The Company reported a net loss of US$3,833,764 on revenues of
US$8,956,328 for the nine months ended September 30, 2009,
compared with a net loss of US$5,037,159 on revenues of
US$11,229,880 for the same period of 2008.
Included in total expenses for the three and nine months ended
September 30, 2008, is a charge for fair value adjustment on
property of US$1,941,239, absent in 2009.
At September 30, 2009, the Company's consolidated balance sheets
showed total assets of US$139,709,642, total liabilities of
US$142,253,511, and stockholders' deficit of US$2,543,869.
A full-text copy of the Company's quarterly report is available
for free at http://researcharchives.com/t/s?4bd4
Going Concern Doubt
The Company has incurred a net loss of US$3,833,764 for the nine
months ended September 30, 2009, has an accumulated deficit of
US$24,975,155 at September 30, 2009, and there are existing
uncertain conditions which the Company faces relative to its
obtaining financing and capital in the equity markets. The
Company believes these conditions raise substantial doubt about
its ability to continue as a going concern.
The Company is presently working to raise additional capital to
meet its working capital needs and is restructuring operating
costs to be more in line with revenues. There can be no
assurances, however, that it will be successful in its efforts to
raise capital or to reduce operating costs to a level where it
will attain profitability.
About Royal Invest
Based in New York, N.Y., Royal Invest International Corp. (OTC BB:
RIIC) -- http://www.royalinvestinternational.com/-- a Delaware
corporation, together with its subsidiaries, owns, operates and
manages real estate, in Europe. At September 30, 2009, and
December 31, 2008, the Company owned 18 properties. The
properties aggregate approximately 88,077 square meters
(approximately 948,053 square feet), which are comprised of office
buildings and business centers. The properties are located in
Germany and the Netherlands.
===========
P O L A N D
===========
CIECH SA: Creditors Agree to Extend Loan Agreements to Jan. 15
--------------------------------------------------------------
Maciej Martewicz at Bloomberg News reports that Ciech SA said in a
regulatory statement late Wednesday that 12 bank creditors of the
company agreed to extend existing loan agreements to January 15
from December 15 to give it more time to restructure its debt.
Ciech SA -- http://www.ciech.com/-- is a Poland-based company
active in the chemical sector. The Company produces, trades and
distributes chemicals and pharmaceutics. Its is structured into
four main divisions: the Soda division, producing mainly soda ash,
which is the Company?s flag product; the Organic division,
manufacturing epoxy and polyester resins, toluene diisocyanate
(TDI) and plant protection chemicals, among others; the Agro
division, producing a range of fertilizers, and Silicates and
Glass Division, engaged in the production of chemicals, which are
used in glass, furniture, and construction industries. Ciech SA is
active both on national and international markets. The Company's
trading network covers various countries, such as Germany, France,
Italy and Spain. As of December 31, 2008, the Ciech SA group was
composed of 40 entities, based both in Poland and abroad.
===========
R U S S I A
===========
BALTKOM-STROY: Creditors Must File Claims by December 20
--------------------------------------------------------
Creditors of LLC Baltkom-Stroy-Invest (TIN 3906132040, PSRN
1043902869647) (Construction) have until December 20, 2009, to
submit proofs of claims to:
V. Kiselev
Temporary Insolvency Manager
Mira Prospect 18-20A
Kaliningrad
Russia
Tel: 4012)21-75-24
The Arbitration Court of Kaliningradskaya will convene at 10:00
a.m. on January 18, 2010, to hear bankruptcy supervision
procedure. The case is docketed under Case No. ?21?8674/2009.
The Debtor can be reached at:
LLC Baltkom-Stroy-Invest
Leninskiy prospect 14-36
236006 Kaliningrad
Russia
ELMOS LLC: Amurskaya Bankruptcy Hearing Set December 22
-------------------------------------------------------
The Arbitration Court of Amurskaya will convene at 9:00 a.m. on
December 22, 2009, to hear bankruptcy proceedings on LLC Elmos
(TIN 2801098601) (Construction). The case is docketed under
Case No. ??4?6371/09B.
The Insolvency Manager is:
V. Dmitrov
Office 509
50 let Oktyabrya Str. 33
Svobodnyy
676450 Amurskaya
Russia
The Debtor can be reached at:
LLC Elmos
Chaykovskogo Str. 7
Blagoveshchensk
675000 Amurskaya
Russia
FIRST TRANSPORT: Creditors Must File Claims by December 20
----------------------------------------------------------
Creditors of LLC First Transport Company have until December 20,
2009, to submit proofs of claims to:
N. Simon
Temporary Insolvency Manager
Office 406
Elektrozavodskaya Str. 63
390023 Ryazan
Russia
The Arbitration Court of Ryazanskaya will convene at 10:30 a.m. on
March 16, 2010, to hear bankruptcy supervision procedure. The
case is docketed under Case No. ?54?4248/09-S1.
The Debtor can be reached at:
LLC First Transport Company
Apt. 32
Bronnaya Str. 19A
Ryazan
Russia
GUS-KHRUSTALNY TEXTILE: Creditors Must File Claims by December 20
-----------------------------------------------------------------
Creditors of OJSC Gus-Khrustalny Textile Complex (TIN 3304000544,
PSRN 1023300593249) have until December 20, 2009, to submit proofs
of claims to:
O. Lykov
Insolvency Manager
B. Tishinskiy pereulok 38
123557 Moscow
Russia
Tel: 8(499)130-36-43, 8 (495)648-12-42).
The Arbitration Court of Vladimirskaya commenced bankruptcy
proceedings against the company after finding it insolvent. The
case is docketed under Case No. A11?2324/2009.
The Debtor can be reached at:
OJSC Gus-Khrustalny Textile Complex
Rudnitskoy Str. 3
Gus-Khrustalny
601500 Vladimirskaya
Russia
MYS CONSTRUCTION: Creditors Must File Claims by December 20
-----------------------------------------------------------
Creditors of LLC Mys Construction Company (TIN 2722928271) have
until December 20, 2009, to submit proofs of claims to:
A.Mazur
Temporary Insolvency Manager
Post User Box 74\7
680030 Khabarovsk
Russia
The Arbitration Court of Khabarovskiy commenced bankruptcy
supervision procedure. The case is docketed under Case No. ?73?
14698/2009.
The Debtor can be reached at:
LLC Mys
Building 2
Turgeneva Str. 96
680028 Khabarovsk
Russia
NEFTE-GAZ-REM: Creditors Must File Claims by December 20
--------------------------------------------------------
Creditors of LLC Nefte-Gaz-Rem-Stroy (TIN 7707550964, PSRN
1057747137326) (Construction) have until December 20, 2009, to
submit proofs of claims to:
M. Vasilega
Temporary Insolvency Manager
Post User Box 100
105318 Moscow
Russia
The Arbitration Court of Moscow commenced bankruptcy supervision
procedure. The case is docketed under Case No. ?40?86609/09?74-
442B.
The Debtor can be reached at:
LLC Nefte-Gaz-Rem-Stroy
Building 4
Lavrushinskiy pereulok 17
119017 Moscow
Russia
PRIVOLZHSKAYA CONSTRUCTION: Creditors Must File Claims by Dec. 20
-----------------------------------------------------------------
Creditors of LLC Privolzhskaya Construction Company (TIN
5254031756) have until December 20, 2009, to submit proofs of
claims to:
A.Borisov
Temporary Insolvency Manager
Post User Box 3
394090 Voronezh
Russia
The Arbitration Court of Nizhegorodskaya will convene at
11:00 a.m. on March 2, 2010, to hear bankruptcy supervision
procedure. The case is docketed under Case No. ?43?36192/2009 27?
293.
The Debtor can be reached at:
LLC Privolzhskaya Construction Company
Rozhdestvenskaya Str. 30
603107 Nizhny Novgorod
Russia
RYAZAN-STORY LLC: Creditors Must File Claims by December 20
-----------------------------------------------------------
Creditors of LLC Ryazan-Stroy No. 9 (Construction) have until
December 20, 2009, to submit proofs of claims to:
V. Glukhovtsev
Temporary Insolvency Manager
Office 212
Pobedy Sq. 8
398001 Lipetsk
Russia
Tel: (84742) 41-40-29, 23-40-67
The Arbitration Court of Ryazanskaya will convene at 10:00 a.m. on
March 16, 2010, to hear bankruptcy supervision procedure. The
case is docketed under Case No. ?54?5024/2009 S01.
The Debtor can be reached at:
LLC Ryazan-Stroy No. 9
Leninskogo Komsomola Str. 5
Ryazan
Russia
RYAZAN-MONOLIT: Creditors Must File Claims by December 20
---------------------------------------------------------
Creditors of LLC Ryazan-Monolit (TIN 6234020701,PSRN
1056204070108) (Concrete Construction) have until December 20,
2009, to submit proofs of claims to:
S. Poryadin
Temporary Insolvency Manager
Post User Box 159
Central Postal Office
390000 Ryazan
Russia
The Arbitration Court of Ryazanskaya will convene at 10:30 a.m. on
March 23, 2010, to hear bankruptcy supervision procedure. The
case is docketed under Case No. ?54?4943/2009.
The Debtor can be reached at:
LLC Ryazan-Monolit
Building 1
Yablochkova proezd 6
390023 Ryazan
Russia
SIB-PROM-STROY: Creditors Must File Claims by December 20
---------------------------------------------------------
Creditors of LLC Sib-Prom-Stroy (TIN 7204087757, PSRN
1057200556082) (Construction) have until December 20, 2009, to
submit proofs of claims to:
V. Permikin
Insolvency Manager
Post User Box 745
620000 Yekaterinburg
Russia
The Arbitration Court of Tumenskaya will convene at 9:30 a.m. on
April 28, 2010, to hear bankruptcy proceedings. The case is
docketed under Case No. ?70?4067/2009.
The Debtor can be reached at:
LLC Sib-Prom-Stroy
Office 31
Babarynka Str. 69
625001 Tumen
Russia
SOGAZ INSURANCE: Fitch Gives Positive Outlook; Keeps 'BB' Rating
----------------------------------------------------------------
Fitch Ratings has revised Insurance Company of Gas Industry Sogaz
(Russia)'s Outlooks to Positive from Stable, and simultaneously
affirmed its Insurer Financial Strength rating at 'BB' and
National IFS rating at 'AA-(rus)'.
The Positive Outlook reflects Fitch's view of the notably
strengthened capital position of Sogaz following improvement of
the operating performance in 9M09. Fitch believes that Sogaz's
solid capital strength -- particularly for the insurer's current
rating level -- along with its strong market position and
underwriting expertise in the core commercial insurance segment
enhances its ability to weather the effects of the challenging
operating environment in Russia.
Notwithstanding these positive aspects, Fitch continues to
recognize the weak credit quality of Sogaz's 51% majority
(indirect) shareholder, Bank Rossiya ('B-'/Stable Outlook) and the
continued, although reducing, reliance on business derived from
minority shareholder Gazprom ('BBB'/Negative).
Sogaz's capital adequacy was relatively strong in 2005-2008 with
capital being generated through internal sources only. 9M09
results demonstrated a strengthening of the capital position
driven by the restored levels of investment income, continuing
profitable underwriting performance and a slowdown of previously
rapid premium growth. Fitch does not regard this slowdown as a
rating constraint for Sogaz, given the current contraction in the
Russian insurance sector and despite the resulting price
softening. The agency expects that capital adequacy may decline
slightly in 2010 although will remain supportive of the current
rating level.
Non-life insurance continues to be the core business segment for
Sogaz, representing 94.3% of consolidated gross premiums written.
It has generated relatively stable and strong income with a
combined ratio under 91% since 2005 which, to a large extent,
helped to protect its capital in 2008 from investment losses. The
combined ratio is expected to improve further in 2009 from the
strong 86.1% reported in 2008. This improvement is expected to be
driven by a reduced commission ratio and release of technical
reserves resulting from the forecasted premiums contraction.
Although the 9M09 estimated result suggests that the actual
contraction and, consequently, the reserve release might be lower
than the forecasted level in 2009, it confirms the improvement of
the commission ratio.
Fitch also notes that the restructuring of Sogaz's property
reinsurance program towards stronger reinsurers may put some
pressure on the loss ratio, though it will improve the credit
quality of its balance sheet. Overall, the agency believes that
Sogaz's adequate underwriting expertise and strong market position
are likely to enable the insurer to maintain its underwriting
performance at a profitable level and, to some extent, resist the
pressure of the worsened operating environment.
Gazprom continues to be Sogaz's largest customer, though its share
in premiums written has been steadily decreasing to reach 42% in
2008, compared to 44% in 2007 and 59% in 2006. Fitch remains
concerned about Sogaz's dependence on one customer. However, the
agency believes the risk of losing Gazprom's business is low in
the near term, as Sogaz has won a tender to insure Gazprom's risks
over the period 2007-2011. Fitch sees the successful renewal of
the contract with Gazprom in 2011 as a key trigger for an upgrade,
provided all other factors remain unchanged.
In view of Bank Rossiya's weak credit quality, Fitch remains
concerned that Sogaz has placed a relatively high proportion of
its investment portfolio with Bank Rossiya, and that - although
this was kept within the targeted levels - this might be
increased, should the bank need liquidity to support its position.
Fitch also remains concerned that the bank may require capital
support from subsidiary Sogaz. To some extent, these concerns are
offset by the influence of Gazprom, although it remains a minority
shareholder in Sogaz.
With gross premiums written of RUB42bn and total assets of
RUB58.7 billion at FYE08, Sogaz is one of the three largest
insurers in Russia.
SPURT JSC: Fitch Assigns 'BB-' National Long-Term Rating
--------------------------------------------------------
Fitch Ratings has assigned Russia-based JSC Spurt Bank a National
Long-term rating of 'BB-(rus)' with Negative Outlook.
Spurt is a small bank, although it has a niche franchise in the
Republic of Tatarstan. Since 2005 it has been actively expanding
its SME and retail franchise. The largest stake in Spurt is held
by the bank's chairwoman (40%); other large shareholders include
the EBRD (28%) and Nizhnekamskneftekhim ('B'/RWN) and its
employees (25%).
Spurt's other ratings are:
-- Long-term Issuer Default Rating: 'B-'; Outlook Negative
-- Short-term IDR: 'B'
-- Individual Rating: 'D/E'
-- Support Rating: '5'
-- Support Rating Floor: 'No Floor'
In Fitch's rating criteria, a bank's standalone risk is reflected
in Fitch's Individual ratings and the prospect of external support
is reflected in Fitch's Support ratings. Collectively these
ratings drive Fitch's Long- and Short-term IDRs.
STIL-STORY LLC: Creditors Must File Claims by December 20
---------------------------------------------------------
Creditors of LLC Stil-Stroy (TIN 5243022372, PSRN 1055207021121)
(Construction) have until December 20, 2009, to submit proofs of
claims to:
S. Gromoglasov
Temporary Insolvency Manager
Post User Box 602
603000 Nizhny Novgorod
Russia
The Arbitration Court of Nizhegorodskaya will convene at 09:40
a.m. on March 30, 2009, to hear bankruptcy supervision procedure.
The case is docketed under Case No. ?43?19591/2009 26?183.
The Debtor can be reached at:
LLC Stil-Stroy
L.Tolstogo Str. 59B-2
Arzamaz
Nizhegorodskaya
Russia
STROY-INVEST: Creditors Must File Claims by December 20
-------------------------------------------------------
Creditors of LLC Stroy-Invest-Proekt (TIN 7723547895, PSRN
1057748037621) (Construction) have until December 20, 2009, to
submit proofs of claims to:
V. Mirny
Insolvency Manager
Post User Box 2963
Postal Office 2
300006 Tula
Russia
The Arbitration Court of Moscow commenced bankruptcy proceedings
against the company after finding it insolvent. The case is
docketed under Case No. ?40?121886/09?70-483B.
The Debtor can be reached at:
LLC Stroy-Invest-Proekt
Krasnodarskaya Str. 17
109382 Moscow
Russia
TEKHNO-STROY LLC: Creditors Must File Claims by December 20
-----------------------------------------------------------
Creditors of LLC Tekhno-Stroy (Construction) have until
December 20, 2009, to submit proofs of claims to:
A. Sviridov
Insolvency Manager
Office 9
Engelsa Str. 22a
394036 Voronezh
Russia
The Arbitration Court of Tambovskaya will convene at 10:00 a.m. on
March 30, 2010, to hear bankruptcy proceedings. The case is
docketed under Case No. ?64?5401/09.
The Debtor can be reached at:
LLC Tekhno-Stroy
Moskovskaya Str. 10V
Tambov
393960 Tambovskaya
Russia
TRANSPORT COMPANY: Creditors Must File Claims by December 20
------------------------------------------------------------
Creditors of OJSC Transport Company (TIN 6501177056, PSRN
1066501075717) have until December 20, 2009, to submit proofs of
claims to:
A. Dudakov
Temporary Insolvency Manager
Respublikanskaya Str. 17
Khabarovsk
Russia
The Arbitration Court of Sakhalinskaya will convene at 10:30 a.m.
on May 31, 2010, to hear bankruptcy supervision procedure. The
case is docketed under Case No. ?59?5033/2009.
The Debtor can be reached at:
OJSC Transport Company
Pogranichnaya Str. 49
Yuzhno-Sakhalinsk
Sakhalinskaya
Russia
UC RUSAL: Inches Closer to US$2 Billion Hong Kong IPO
-----------------------------------------------------
Tom Mitchell at The Financial Times reports that United Co. Rusal,
which had hoped to complete its IPO before Christmas, is rushing
to register its prospectus this month, after which it would have
30 days to launch the first initial public offering by a Russian
company in Hong Kong.
According to the FT, Hong Kong Exchange and Clearing's listing
committee, which vets IPO applications, has expressed concerns
about a US$4.5 billion loan from VEB, the state-owned Russian bank
chaired by Prime Minister Vladimir Putin, that Rusal must pay back
by November 2010.
The FT relates people close to the transaction said, Russia's
largest bank, Sberbank, will refinance the VEB loan and extend the
repayment period, possibly until 2013.
"The company has a firm commitment from Sberbank to refinance the
debt between now and November, thereby addressing the concerns of
the listing committee," the FT quoted one person involved as
saying. He added that the last-minute negotiations had
necessitated the "personal involvement of the [Russian] prime
minister," according to the FT.
The FT says supporters of the listing were confident that the
arrangement with Sberbank would be enough to secure conditional
approval from the listing committee, possibly as early as today,
Dec. 18.
Even with listing committee approval, Rusal's US$2 billion IPO
could still be held up by Hong Kong's market regulator, the
Securities and Futures Commission, whose board meets today, the FT
notes. The SFC will discuss options, including a ban on the sale
of Rusal's shares to retail investors or requiring them to be
packaged in large board lots, effectively making them too
expensive for small investors, the FT discloses.
About Rusal
Headquartered in Moscow, Russia, United Co. RUSAL --
http://www.rusal.com/-- is among the world's top aluminum
producers, along with Rio Tinto Alcan and Alcoa. Formed in 2000
from various parts of the old Soviet state apparatus, RUSAL
produces about 4 million tons of aluminum, 11 million tons of
alumina, and 6 million tons of bauxite. Its aluminum business
include packaging and foil operations in addition to a network of
smelters. Those Soviet spare parts were significantly augmented
in 2007 when the company merged with fellow Russian aluminum
producer Sual and Glencore's alumina unit. RUSAL is majority
owned by Board member Oleg Deripaska, who had owned the company
completely prior to the merger.
URAL-INVEST-STROY: Creditors Must File Claims by December 20
------------------------------------------------------------
Creditors of LLC Ural-Invest-Stroy (PSRN 1077415001685)
(Construction) have until December 20, 2009, to submit proofs of
claims to:
I. Yakovlev
Insolvency Manager
Lenina prospect 5
454007 Chelyabinsk
Russia
The Arbitration Court of Chelyabinskaya commenced bankruptcy
proceedings against the company after finding it insolvent. The
case is docketed under Case No. ?76-32255/200952-336.
The Debtor can be reached at:
LLC Ural-Invest-Stroy
Avtozavodtsev prospect 61
Miass
456300 Chelyabinskaya
Russia
VORONEZH MACHINE: Creditors Must File Claims by December 20
-----------------------------------------------------------
Creditors of OJSC Voronezh Machine-Tool Plant (TIN 3662131307,
PSRN 1083668008951) have until December 20, 2009, to submit proofs
of claims to:
S. Nechayev
Temporary Insolvency Manager
Apt. 25
Mashinostroiteley Str. 76
394019 Voronezh
Russia
The Arbitration Court of Voronezhskaya will convene at 3:00 p.m.
on February 24, 2010, to hear bankruptcy supervision procedure.
The case is docketed under Case No. ?14?13834/2009 49/27B.
The Court is located at:
The Arbitration Court of Voronezhskaya
Courtroom 202
Srednemoskovskaya Str. 77
Voronezh
Russia
The Debtor can be reached at:
OJSC Voronezh Machine-Tool Plant
Truda Prospect 48
394026 Voronezh
Russia
YUBILEYNAYA LLC: Creditors Must File Claims by December 20
----------------------------------------------------------
Creditors of LLC Yubileynaya Insurance Company (TIN 6661082074,
PSRN 1026605239594) have until December 20, 2009, to submit proofs
of claims to:
S. Chepik
Insolvency Manager
Post User Box 102
Tbilisskiy Blvd. 3
620073 Yekaterinburg
Russia
The Court of Appeal ?17 commenced bankruptcy proceedings against
the company after finding it insolvent. The case is docketed
under Case No. ?60?29497/2009-S11.
The Debtor can be reached at:
LLC Yubileynaya
Lunacharskogo Str. 15
620027 Yekaterinburg
Russia
* CITY OF KAZAN: Fitch Assigns 'B+' Rating on Domestic Bonds
------------------------------------------------------------
Fitch Ratings has assigned the City of Kazan's RUB2 billion
domestic bond (RU000A0JQMH1) due December 2011 a final Long-term
local currency rating of 'B+' and a final 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 has a fixed-rate 12% coupon. 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
city's budget deficit.
The City of Kazan is the capital of the Tatarstan Republic ('BBB-
'/'F3'/Stable) and is located in central Russia. The population
of the city totaled 1.12 million in 2008.
=============================
S L O V A K R E P U B L I C
=============================
SKYEUROPE AIRLINES: Administrator Wants Bankruptcy Terminated
-------------------------------------------------------------
The Slovak Spectator, citing TASR, reports that the bankruptcy
administrator for SkyEurope Airlines submitted a proposal to
Bratislava I District Court on December 14 to terminate the
bankruptcy proceedings against the company.
According to the report, administrator Lubomir Bugan said
SkyEurope does not have enough property for bankruptcy to
continue.
"The court will decide on the proposal after it is examined along
with the existing evidence, while there is no legal deadline for a
decision on the proposal," the report quoted Pavol Adamciak, the
court's spokesman, as saying.
The report recalls the airline's bankruptcy proceedings began at
the beginning of September. SkyEurope unsuccessfully attempted
restructuring several months before bankruptcy was announced, the
report recounts.
As reported by the Troubled Company Reporter-Europe on Aug. 31,
2009, the airline filed for bankruptcy protection due to the lack
of sufficient interim funding to finance ongoing operations.
===============
S L O V E N I A
===============
ISTRABENZ GROUP: Creditors Fail to Agree on Voluntary Settlement
----------------------------------------------------------------
Istrabenz Group d.d. creditors failed to agree on a voluntary
settlement for the Slovenian holding company paving the way for
receivership proceedings to start, Boris Cerni at Bloomberg News
reports, citing Nova Ljubljanska Banka d.d., which represents 19
lenders to Istrabenz.
As reported by the Troubled Company Reporter-Europe on Dec. 14,
2009, Petrol Group d.d. called on NLB, Slovenia's biggest bank, to
avert the bankruptcy of Istrabenz, 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."
Bloomberg disclosed Boris Dolamic, the court-appointed receiver
for Istrabenz, said 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 P A I N
=========
CAIXA D'ESTALVIS: Fitch Puts Issuer Rating on Negative Watch
------------------------------------------------------------
Fitch Ratings has placed Caixa d'Estalvis de Girona's, Caixa
d'Estalvis de Sabadell's and Caixa d'Estalvis de Terrassa's Long-
term Issuer Default Ratings of 'BBB+' on Rating Watch Negative.
The rating actions follow the approval of an integration plan by
the Board of Directors of the three cajas and Caixa d'Estalvis
Comarcal de Manlleu (unrated by Fitch). A full rating breakdown
is provided at the end of this comment.
The RWN reflects the challenges associated with the merger
process, including high integration risks, in a complex operating
environment in Spain. The merger will be particularly challenging
given that there are four cajas involved and each operates with
distinct IT platforms. Fitch expects the Long-term IDR of the
resulting entity to be in the 'BBB' range, unless the scenarios
currently assessed by the agency have materially changed at the
time of the merger's completion. The RWN reflects Fitch's view
that although there is a high probability that the merger will
take place in a short timeframe, the integration plan is still
being reviewed by the Bank of Spain and the final merger plan is
subject to the approval of each caja's governing bodies and
regulators. Fitch will resolve the RWN once the merger is
completed. Should the merger not take place, Fitch will assess
each institution on a standalone basis, under which there would be
a higher potential for a downgrade given revenue, asset quality
and capital pressures arising from the difficult operating
environment.
Fitch views positively the merger which will allow the enlarged
entity to compete from a better position in a complex operating
environment. However, the merged entity will continue to face
significant challenges given uncertain prospects over the pace of
Spain's economic recovery, its high unemployment rate and the
collapse of the property sector. These three cajas have
experienced a sharp rise in impaired loans and decline in
profitability and the merged entity will have to scale back the
high risk concentration in the real estate and construction
sectors (around 30% of total loans for the merged entity).
Furthermore, the institutions have increased the number of
foreclosed assets and/or have acquired property in exchange for
debt.
There is a high degree of willingness for the cajas to complete
the merger, while political hurdles are few and the BoS's impetus
to accelerate the consolidation of financial institutions,
particularly within the caja sector, has gained force in recent
weeks. The merged entity will have close to EUR36bn in assets and
around 1,000 branches on aggregate, although the number of
branches is expected to decline following certain planned
closures.
The merged institution will seek capital support from the Fund for
Orderly Bank Restructuring, in the form of convertible preference
shares (convertible into "cuotas participativas"), the amount of
which is not expected to exceed 2% of the merged entity's risk-
weighted assets. Such shares qualify as regulatory core capital.
In addition, revaluation reserves on investments and fixed assets
will also feed into the merged entity's core capital. Although
there will be revenue pressure from low interest rates and lower
business volumes from recession, cost synergies are expected to be
achieved through headquarter and branch rationalization plans as
well as through early staff retirements, which should help the
institution return FROB funds within a five-year timeframe.
While restructuring costs will be gradually absorbed through the
profit and loss statement, FROB funds will enable the new entity
to anticipate potential impairments of the loan book, absorb
potential contingencies from the rationalization of the insurance
businesses, part of which were sold to third-parties in 2008 in
the case of Sabadell and Terrassa, and ensure that capital levels
remain adequate for the institution to carry out banking
operations. The new entity will thus operate from a more
favorable competitive position.
While there are other caja mergers on the horizon, Fitch will
evaluate these on a case-by-case basis and will take rating
actions as they materialize, and as information becomes available.
The progress and the economic logic of potential mergers will
largely depend on the level of political influence in the
governing bodies of each caja as well as the willingness of
different institutions to undertake such an exercise.
Sabadell, Terrassa, Girona and Manlleu are Spain's 24th, 25th,
33rd, and 41st largest cajas in Spain by total assets,
respectively, at end-Q309. These institutions are retail-focused
in Catalonia, one of the most economically important regions of
Spain.
The rating actions taken are:
Caixa Girona:
-- Long-term IDR: 'BBB+' placed on RWN
-- Senior unsecured debt: 'BBB+' placed on RWN
-- Subordinated: 'BBB' placed on RWN
-- Short-term IDR: 'F2' placed on RWN
-- Individual rating: 'C' placed on RWN
-- Support rating: affirmed at '3'
-- Support Rating Floor: affirmed at 'BB+'
-- State-guaranteed senior debt; affirmed at 'AAA'
Caixa Sabadell:
-- Long-term IDR: 'BBB+' placed on RWN
-- Preferred stock: 'BB' placed on RWN
-- Subordinated debt: 'BBB' placed on RWN
-- Short-term IDR: 'F2' placed on RWN
-- Individual rating: 'C' placed on RWN
-- Support rating: affirmed at '3'
-- Support Rating Floor: affirmed at 'BB+'
-- State-guaranteed senior debt: affirmed at 'AAA'
Caixa Terrassa:
-- Long-term IDR: 'BBB+' placed on RWN
-- Preferred stock: 'BB' placed on RWN
-- Upper tier 2 subordinated debt: 'BBB-' placed on RWN
-- Subordinated debt: 'BBB' placed on RWN
-- Short-term IDR: 'F2' placed on RWN
-- Individual rating: 'C' placed on RWN
-- Support rating: affirmed at '3'
-- Support Rating Floor: affirmed at 'BB+'
-- State-guaranteed senior debt: affirmed at 'AAA'
In Fitch's rating criteria, a bank's standalone risk is reflected
in Fitch's Individual ratings and the prospect of external support
is reflected in Fitch's Support ratings. Collectively these
ratings drive Fitch's Long- and Short-term IDRs.
REYAL URBIS: Lead Creditors Make Debt Restructuring Offer
---------------------------------------------------------
Morwenna Coniam at Bloomberg News, citing The Wall Street Journal,
reports that that major creditors of Reyal Urbis SA have extended
an offer to restructure the company's EUR4.8-billion
(US$7 billion) debt.
According to Bloomberg, the newspaper said a refinancing deal
could be announced as soon as next week if all parties agree to
the conditions set out in a term sheet signed by ten of Reyal's
biggest creditors.
About Reyal Urbis
Headquartered in Madrid, Spain, Reyal Urbis SA --
http://www.reyalurbis.com/-- is a company engaged in the real
estate sector. The Company's business is structured in four
areas: residential development, owned portfolio, land management
and Rafaelhoteles. In the residential development area, the
Company is involved in the construction of middle-range urban
residences, as well as property project and land management. The
Company's owned portfolio area comprises the management of
residential and non-residential properties, such as offices,
shopping centers, commercial space and industrial warehouses,
among others. In the land management area, the Company owns more
than 300 land plots located in 40 cities in Spain and Portugal.
The Rafaelhoteles area is operated by its subsidiary Rafael
Hoteles SAU, which is active in the management of the
Rafaelhoteles hotel chain. In addition, through Urbis USA Inc,
the Company has operations established in Miami, the United
States.
===========
T U R K E Y
===========
TEKSTIL BANKASI: Fitch Affirms Individual Rating at 'D'
-------------------------------------------------------
Fitch Ratings has affirmed Tekstil Bankasi A.S.'s (Tekstilbank)
Long-term foreign currency Issuer Default Rating at 'B'. The
bank's Short-term foreign and local currency IDRs and Long-term
local currency IDR are also all affirmed at 'B'. The Outlooks on
both Long-term IDRs are Stable. Fitch has simultaneously affirmed
Tekstilbank's Individual Rating at 'D', Support Rating at '5' and
Support Rating Floor at 'No Floor'. The National Long-term rating
is affirmed at 'BBB+(tur)' with a Stable Outlook.
Tekstilbank's ratings are based on the bank's stand-alone
financial strength. It is a relatively small player in Turkey's
financial system, controlling a modest 0.25% share of deposits.
Its reaction to the sharp recession which affected Turkey's
economy during H109 was dynamic and management took swift action
to reign in risks, preserve liquidity and capital. A significant
deleveraging of the balance sheet occurred, branches and headcount
were reduced and expansion into retail and SME banking is on hold.
Corporate and commercial (middle market) clients now represent 80%
of the bank's business.
The bank remains profitable, but performance indicators lag those
reported by peers. Tekstilbank's lending policies remain
deliberately selective, but management believes it can target
sound new customers turned away by other banks and thus protect
its franchise. The bank's capital ratios are among the sector's
highest and its balance sheet can comfortably support additional
growth.
Historically, Tekstilbank has had good asset quality, but the
impaired loan ratio reached 6.7% in H109, albeit affected by a
shrinking loan book. Impaired loans are rising steeply, but more
proactive follow-up measures are being adopted and management
advises that trends are more favorable in H209. Loan loss cover,
including specific and general reserves, reached 62% at H109 and
42% of impaired loans are secured by tangible collateral which
provides additional comfort. Depositor concentrations are
reducing and the bank's funding profile has improved, with a
higher share of customer deposits, reflecting balance sheet
shrinkage.
Given poor global market conditions, plans to sell the bank were
postponed in February 2009. Until a clearer strategy emerges for
the bank, the upside potential for its ratings remains limited.
If asset quality worsens significantly, the Individual Rating will
come under pressure.
In Fitch's opinion, sovereign support for the bank, although
possible, cannot be relied upon, given Tekstilbank's position
within the Turkish banking system.
Tekstilbank is 75.5% owned by GSD Holding AS, a private sector
holding company, with equity of TRY469m at H109, whose interests
lie primarily in the financial sector.
In Fitch's rating criteria, a bank's standalone risk is reflected
in Fitch's Individual ratings and the prospect of external support
is reflected in Fitch's Support ratings. Collectively these
ratings drive Fitch's Long- and Short-term IDRs.
=============
U K R A I N E
=============
RODOVID BANK: Moratorium Extended Until March 15, Kommersant Says
-----------------------------------------------------------------
Daryna Krasnolutska at Bloomberg News, citing Kommersant, reports
that Ukraine's central bank extended a moratorium for the third
time on payments to creditors of AT Rodovid Bank.
According to Bloomberg, the newspaper said the central bank
extended the moratorium to March 15.
Bloomberg recalls Rodovid was taken over by the government in July
after the bank ran into a capital shortage.
Headquartered in Kyiv, Ukraine, OJSC Rodovid Bank --
http://www.rodovidbank.com/-- is a universal banking institution
that provides banking services to businesses and retail customers
throughout Ukraine. As of December 31, 2008 the bank ranked 20th
in Ukraine (out of 184 licensed and operating Ukrainian banks) in
terms of total assets (US$1.714 billion), 22th in terms of total
corporate loan portfolio (US$848 million), 19th in terms of total
retail loan portfolio (US$434 million), 21th in terms of total
corporate deposits (US$361 million), 15th in terms of total retail
deposits (US$459 million). With 2,868 employees the bank
currently operates in all 27 regions of Ukraine.
* * *
As reported by the Troubled Company Reporter-Europe on Nov. 12,
2009, Moody's Investors Service said that it was maintaining its
rating review of Rodovid Bank. However, the direction of the
review had been changed to uncertain, from a possible downgrade.
On March 20, 2009, Rodovid Bank's deposit ratings were downgraded
to Caa2 from B3 and placed under review for further downgrade.
This rating action was driven by the payment moratorium imposed on
Rodovid Bank by the National Bank of Ukraine. At that time, the
bank's financial strength rating was also downgraded from E+ to E
with a stable outlook.
===========================
U N I T E D K I N G D O M
===========================
BRITISH AIRWAYS: Court Says Union Vote on Christmas Strike Invalid
------------------------------------------------------------------
Jane Croft at The Financial Times reports that the High Court on
Thursday ruled that that a union ballot for a 12-day British
Airways cabin crew strike over Christmas was invalid.
According to the FT, Judge Laura Cox ruled the 92.5% vote in favor
of a strike that Unite union used to justify one of the longest
walk-outs BA has ever faced had included people who had already
agreed to take voluntary redundancy.
"A strike of this kind over 12 days of Christmas is in my view
fundamentally more damaging to BA and the wider public than a
strike taking place at almost any other time," the FT quoted Judge
Cox as saying.
Steven Rothwell and Howard Mustoe at Bloomberg News report that
British Airways Chief Executive Officer Willie Walsh may have
little time to force through staff cuts he's seeking to help
restore profit. The dispute centered on Mr. Walsh's move to cut
one attendant on each long-haul flight, Bloomberg discloses.
Bloomberg says Mr. Walsh may not have the advantage for long if
the union leadership pushes for another strike early in the new
year.
According to Bloomberg, British Airways is seeking to reduce
spending to survive a slump in traffic that pushed the carrier to
a record GBP217-million (US$351 million) first-half loss.
Bloomberg relates Pauline Doyle, a Unite spokeswoman, said British
Airways and labor representatives, already in talks on resolving
the dispute, hadn't yet scheduled a new round of discussions
following the court judgment. According to Bloomberg, Ms. Doyle
said the union hasn't decided on whether to appeal the judge's
ruling.
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.
CATTLES PLC: Investors Demand Liquidation, Board Resignation
------------------------------------------------------------
Louise Armitstead at Telegraph reports that investors in Cattles
plc demanded the liquidation of the company and the resignation of
its board at a general meeting.
According to the report, several shareholders called for the
resignation "before the end of the year" of several board members,
including the chairman, for "just being there" while an alleged
accounting fraud was conducted by executive directors over several
years.
The report relates Margaret Young, executive chairman, in a second
statement to the Stock Exchange Wednesday night said: "The board
of Cattles and I very much regret that today's update confirms the
significant loss suffered by our shareholders. However, in our
current financial situation, our duty now has to be to preserve
value for creditors. We do not believe that the pursuit of any
such petition to wind up the company would be in the interests of
any of our stakeholders."
Welcome
Separately, Peter Branton at Bloomberg News reports that Cattles
said its board has recommended a plan to its creditors that will
focus on allowing the company's Welcome Finance unit to collect
out customer loans.
Legal Action
As reported by the Troubled Company Reporter-Europe on Dec. 16,
2009, the Financial Times said shareholders of Cattles, which is
being investigated by the Financial Services Authority over how it
accounted for bad loans, are considering taking legal action
against former directors of the company.
It emerged Cattles had underestimated the provisions it should
have made in relation to bad debts, the FT noted. The company,
the FT disclosed, has admitted to a breakdown in internal
controls, which resulted in its impairment policies being
incorrectly applied. Its shares were suspended in April this year
following the discovery of the accounting errors and the the
company said it may have to take up to a further GBP850 million of
impairment provisions, the FT recalled. PwC, the company's
auditors, resigned earlier this month and have been replaced by
Grant Thornton, the FT recounted.
The FT related on Tuesday David Greene, head of litigation at
Edwin Coe, said the law firm had hired barristers and forensic
accountants and was examining whether legal action could be taken
against former directors or against PwC as former auditors. In
particular, the lawyers are examining the prospectus issued by
Cattles in relation to its successful GBP200 million rights issue
last year, the FT said.
"Shareholders remain angry at the collapse of the shares and the
continuing uncertainty as to the future of the company," the FT
quoted Mr. Greene as saying. "We have been contacted by both
institutional and individual shareholders to consider their rights
in relation to the announcements made to the market and the
information given to investors in the rights issue in early 2008
as to the company's asset position."
Cattles plc -- http://www.cattles.co.uk/-- is a financial
services company specializing in providing consumer credit to non-
standard customers in United Kingdom. The Company also provides
debt recovery services to external clients and its consumer credit
business, and working capital finance for small- and medium-sized
businesses. It also has a car retail operation, which is an
introducer of hire purchase customers to its consumer credit
business. Its business divisions include Welcome Financial
Services, The Lewis Group and Cattles Invoice Finance. Welcome
Financial Services consists of three businesses: Welcome Finance,
Shopacheck and Welcome Car Finance. Shopacheck provides short-
term home collected loans to some 260,000 customers through 52
branches. The Lewis Group provides debt recovery and
investigation services, serving both external clients and Welcome
Financial Services. In September 2007, it announced the
acquisition of a debt portfolio of United Kingdom credit card,
loan and overdraft receivables.
ECO-BAT TECHNOLOGIES: S&P Gives Negative Outlook; Keeps B+ Rating
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it revised its
outlook on UK-based lead producer Eco-Bat Technologies Ltd. to
negative from stable. At the same time, S&P affirmed the 'B+'
long-term corporate credit rating on the company and the 'B+'
issue rating on the EUR235 million senior unsecured bond due 2013
issued by Eco-Bat. The recovery rating on the bond is unchanged
at '3', indicating S&P's expectation of meaningful (50%-70%)
recovery for senior noteholders in the event of payment default.
"The outlook revision reflects S&P's opinion that rising adjusted
debt due to interest accrual of 11% per year on the EUR600 million
payment-in-kind loan due 2017 issued by Eco-Bat Technologies 86.5%
holding company EB Holdings (not rated) creates heightened
refinancing and repayment risks, and will increasingly weigh on
S&P's opinion of Eco-Bat's credit quality," said Standard & Poor's
credit analyst Paulina Grabowiec.
Although S&P recognizes that the PIK is structurally and
contractually subordinated to all Eco-Bat's debt, that it is not
secured on any of Eco-Bat's assets, and that it places no
guarantee or direct payment obligation on Eco-Bat, S&P also
understands that EB Holdings has no cash flow of its own. S&P
considers its estimate of the outstanding PIK amount of about
GBP713 million (EUR782 million) on Sept. 30, 2009, to be
significant, and believe that this will need to be repaid,
refinanced, or otherwise restructured at some point in the future,
possibly before the maturity of Eco-Bat's EUR235 million bond due
2013.
In S&P's view, the most likely source of repayment of the PIK
instrument could be Eco-Bat. S&P understand from management that
there are currently no refinancing plans, or intensions to
upstream dividends to the parent company. However, S&P believes
the PIK loan might have a negative influence on Eco-Bat's credit
profile in the form of future dividend payments, or in connection
with a future refinancing. According to the indenture governing
the EUR235 million notes due 2013, dividends from Eco-Bat to EB
Holdings are subject to restrictions, but in S&P's view these
conditions are not very restrictive. This is reflected by the
restricted payment basket on Sept. 30, 2009, which amounted to
about GBP161 million.
"The negative outlook reflects the possibility of a one-notch
downgrade of the corporate credit rating on Eco-Bat in the next
year or two, if S&P's concerns about future repayment and
refinancing of the EUR600 million PIK loan, which continues to
accrue at 11% a year, are not mitigated," said Ms. Grabowiec.
Dividend payouts or changing to cash pay interest on the existing
PIK loan, could also act as a negative trigger for the rating. A
further deterioration in Eco-Bat's credit metrics, possibly due to
rising debt, could also lead to a downgrade.
S&P regards uncertainty about a possible future repayment or
refinancing of the large PIK loan and potential future financial
policies as a key constraint on the rating, limiting upside
potential in the medium term. However, S&P could revise the
outlook to stable if, for example, it were to become clear that an
alternative source of repayment of the PIK was identified, perhaps
by a capital injection or some other means.
EMAP INTERNATIONAL: Raises Going Concern Doubt
---------------------------------------------
Salamander Davoudi at The Financial Times reports that Emap
International Ltd. has warned of "significant doubt" that it can
continue as a going concern if economic conditions worsen and
renegotiations fail with its lenders.
According to the FT, Emap's accounts for the year to March 31 show
that its parent company, Eden Bidco, could breach covenants if the
publisher's profits fall "materially below the level seen in the
first half of 2009".
Eden Bidco is in talks with its lenders, including HSBC and RBS,
about relaxing covenants, the FT says.
Emap is a business-to-business (B2B) publisher. It is a producer
of trade magazines (Broadcast, Construction News, Retail Week)
through its Emap Inform unit. It provides business intelligence,
analysis, and forecasting tools through its Emap Data and Insight
unit. In addition, Emap organizes conferences such as the World
Retail Congress through Emap Network, and exhibitions such as the
Cannes Lions International Advertising Festival, through Emap
Connect. Subsidiary Worth Global Style Network covers the fashion
industry. Emap targets the retail, media, finance, fashion,
health, education, government, and automotive sectors.
EMI GROUP: Citigroup Proposed Debt-for-Equity Swap
--------------------------------------------------
Citigroup Inc. tried to take control of EMI before Terra Firma,
the music company's private equity owner, launched its legal
attack against the bank, Anousha Sakoui, Salamander Davoudi, Henny
Sender and Andrew Edgecliffe-Johnson at The Financial Times
report, citing three people familiar with the negotiations.
According to the FT, two of the people said the stand-off began
with a letter from Citigroup in September proposing a debt-for-
equity swap that would have given the bank a majority of EMI's
equity and given Terra Firma a share in the upside from
restructuring the company. The third person said the proposal
offered Terra Firma a management fee, the FT notes.
The FT relates Terra Firma rejected the proposal, which offered
little financial detail. Citigroup then rejected an offer from
Terra Firma to put GBP1 billion of new equity into EMI in exchange
for the bank writing off GBP1 billion of debt, the FT recounts.
Terra Firma has already written down its investment by 90%, the FT
discloses.
Terra Firma's Lawsuit
Separately, the FT reports participants in the auction that led to
Terra Firma's GBP4 billion acquisition of EMI are challenging the
account of events set out in a lawsuit filed by the private equity
firm against Citigroup.
The FT says Guy Hands, Terra Firma's chairman, has alleged that
the bank fraudulently misrepresented the position of other bidders
on the eve of the bid deadline in the 2007 auction, knowing that
they had dropped out but still encouraging him to make a 265p
binding bid.
The FT recalls Citigroup, which advised EMI and provided Terra
Firma with GBP2.6 billion of debt, has said the suit, filed Friday
last week, is without merit and that it will defend itself
"vigorously". It has three weeks to respond, the FT says.
Three auction participants told the FT that Warner Music was still
in the EMI building conducting due diligence on May 21, 2007, the
day the deadline fell.
The FT notes one of these people and two other people familiar
with the matter confirmed that Cerberus Capital Management failed
to bid by the deadline, but later approached Terra Firma,
tentatively offering to participate in the financing of its bid.
Other auction competitors included One Equity Partners and
Fortress Investment Group, while Corvus Capital said on May 23,
2007, that it had abandoned a bid attempt, the FT discloses.
Terra Firma's suit makes the claim that Citigroup was aware that
Cerberus would not bid but claimed in a midnight conversation with
Mr. Hands on the eve of the deadline that EMI would recommend a
Cerberus offer if he did not bid by 9:00 a.m., the FT states.
As reported by the Troubled Company Reporter-Europe on Dec. 16,
2009, The Observer said Terra Firma is looking to bring in outside
investors to help prop up EMI. According to the Observer, city
pension funds, insurance companies and foreign banks have been
approached amid fears within Terra Firma that EMI could default on
interest repayments to Citigroup. The Observer disclosed
EMI is profitable at the operating level but has been hit hard by
borrowing costs that have forced Terra Firma to twice inject
equity into the operation in the past 18 months. EMI can meet its
debt-servicing liabilities, but there are worries that if its
recorded music division loses momentum, it could struggle to
fulfill its obligations, the Observer said. In the event that EMI
defaulted on its debt, Citigroup could be forced to take over the
business, the Observer noted.
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.
GLOBESPAN GROUP: In Administration; Pwc Appointed
-------------------------------------------------
Bruce Cartwright, Graham Frost and Ian Oakley-Smith at
PricewaterhouseCoopers have been appointed as joint administrators
to Scottish travel firm, The Globespan Group plc and Alba Ground
Handling Ltd at the request of the Globespan directors on
December 16, 2009. It is likely that other Group companies,
including the airline which operated as Flyglobespan, will be
placed into administration on December 17, 2009.
Flight operations ceased Wednesday evening.
The Group employs approximately 800 people and operates a fleet of
10 aircraft. The Group is in contact with approximately 5,000
passengers who are expecting to travel to and from foreign
destinations during the coming few days1. Passengers are being
advised to contact the Group helpline to receive updated advice.
The numbers are: 0871 271 9000 for UK calls, +44 141 332 3233 for
those calling from Europe.
The Civil Aviation Authority (CAA) will be responsible for the
repatriation of those who have booked flights as part of a
Globespan package holiday as this is covered by the Air Travel
Organisers' Licensing (ATOL) scheme.2 Passengers who booked
through a travel agent are advised to contact that agent in the
first instance.
Customers who booked Flyglobespan flights directly with the Group
via the website or the call centre will not be protected.
However, those who paid with a credit or debit card are advised to
contact their card issuer.3
Bruce Cartwright, joint administrator and head of business
recovery services at PricewaterhouseCoopers LLP in Scotland, said:
"Despite difficult trading conditions, the company has
successfully implemented a number of steps to refine operations
and focus on core profitable business. Unfortunately a lack of
confidence in the sector following the demise of other airlines
resulted in a reduction of liquidity to fund the ongoing
operations.
"The directors have sought to overcome this lack of liquidity by
seeking additional funding from a third party in recent weeks but
this has ultimately been unsuccessful. The Directors have
therefore concluded with regret that the business can no longer
continue to operate.
"Unfortunately I am obliged to confirm that, the Group will not
longer be able to operate flights. Our focus right now is on
assisting those passengers who need to complete return journeys
and communicating with those who have future reservations.
"We would strongly advise those passengers who had expected to
travel tomorrow to remain at home or make alternative arrangements
as there is no prospect of their planned flight taking place."
The administrators also confirmed December 16 that with regret,
the majority of the workforce would be made redundant. A small
number will be retained to help wind down the company and the
details of this are being finalized.
Bruce Cartwright added: "We are acutely aware of the distress this
situation will cause those travelers who are currently abroad, as
well as the impact on those holiday makers who have booked travel
for later this year or 2010.
"Over the coming days we will be focusing our efforts on ensuring
Globespan customers have all the information they require to both
return home or to determine the next steps in terms of whether or
not they can secure refunds."
About Globespan Group plc/Globespan Airways Limited
Established in 1970, the company provided flight only and package
holidays to a number of destinations across Europe as well as
Orlando in America from airports in Aberdeen, Edinburgh and
Glasgow.
Last year, Globespan received the Best Holiday Airline award at
the Scottish Passenger Agents Association Travel Awards 2009.
Globespan Group plc also operates flights between the UK and the
Falkland Islands under a MOD contract. The company's subsidiary
Alba Ground Holdings Ltd is also contracted to manage the baggage
check-in for Flybe at Glasgow and Edinburgh airports.
KENSINGTON MORTGAGE: S&P Puts Ratings on CreditWatch Negative
-------------------------------------------------------------
Standard & Poor's Ratings Services placed on CreditWatch negative
its credit ratings on Kensington Mortgage Securities PLC's (series
2007-1) class M1a, M1b, M2b, B1a, B1b, and B2 notes. All other
classes of notes remain unaffected.
The transaction continues to exhibit high arrears coupled with
high losses and loss severities for sold repossessions. According
to the September quarterly investor report, loans greater than 90
days in arrears (including repossessions) amount to 26.9% of the
pool. Cumulative losses (reported on a "fully loaded" basis) have
reached 2.2% of the initial balance, and the weighted-average loss
severity in the quarter was 48.5%. These losses have led to three
consecutive reserve fund draws leaving the reserve fund at 67.7%
of the required amount.
According to the September loan level data, approximately 50% of
the pool is currently paying a fixed rate. These loans revert to
a floating rate (three-month LIBOR plus a margin) before February
2010. A number of these borrowers will be unable to prepay due to
arrears or previous county court judgments, however, S&P
calculate, that nearly 10% of the pool may still be eligible to
remortgage with a current loan-to-value ratio of below 80%.
Therefore, in S&P's opinion, prepayments may increase from a low
in September of 9.5% over the next two quarters.
Some borrowers paying a floating rate may also wish to prepay and
remortgage as the margins are relatively high in this pool. S&P
calculate that the weighted average reversionary margin is over
4%.
As the fixed-rate loans that are in arrears revert to a lower
floating rate S&P believes total arrears may increase due to a
technical "arrears calculation effect" (see "Related Research").
However, with lower monthly payments, collection rates (defined as
interest received as a percentage of interest due) are likely to
increase, in S&P's view.
S&P expects to resolve the CreditWatch placements when S&P has
received updated loan-level information after the December
interest payment date. S&P will pay particular attention to
future arrears, repossessions, loss severities and prepayments.
Kensington Mortgage Securities series 2007-1 closed in March 2007.
The collateral consists of first- and second-lien mortgages
secured over residential properties in England, Wales, and
Scotland.
Ratings List
Kensington Mortgage Securities PLC
GBP236.30 Million, EUR492.1 Million, And $465 Million
Mortgage-Backed Floating-Rate Notes Series 2007-1
Ratings Placed On CreditWatch Negative
Rating
------
Class To From
----- -- ----
M1a AA/Watch Neg AA
M1b AA/Watch Neg AA
M2b A/Watch Neg A
B1a BBB-/Watch Neg BBB-
B1b BBB-/Watch Neg BBB-
B2 BB-/Watch Neg BB-
LEHMAN BROTHERS: Court Sets March 19 Claims Bar Date
----------------------------------------------------
Following an application of the Joint Administrators of Lehman
Brothers International (Europe), the High Court of England and
Wales on December 15, 2009, issued a Bar Date Order in relation to
claims to Trust Assets.
Clients claiming Trust Assets will need to provide full
information relating to their claims by March 19, 2010 or risk
being excluded from the distribution of such assets. Those
clients who have received statements from LBIE setting out their
Trust Assets need take no further action.
Ordinary unsecured creditors are not affected by this bar date. A
bar date for ordinary unsecured creditors was announced last week
and has been set as December 31, 2010. Such creditors need take
no action following Tuesday's announcement.
The granting of the Order satisfies one of the conditions to the
Claims Resolution Agreement between LBIE and claimants to Trust
Assets. The CRA is currently on offer to certain claimants to
Trust Assets for their acceptance. If sufficient acceptances are
obtained before the closing date of the offer (currently
December 29, 2009) the CRA will become effective as between LBIE
and the signatories.
Steven Pearson, Joint Administrator and partner at
PricewaterhouseCoopers LLP said: "The Bar Date Order marks an
important milestone in the process of returning assets to
customers. We remain on timetable to commence the systemic return
of customer property to LBIE's customers under the Claims
Resolution Agreement within Q1 2010. I would encourage all
affected clients to sign up to the CRA to ensure they are able to
participate in the Trust Asset distribution process."
Assuming that the CRA does become effective, the Joint
Administrators anticipate commencing distributions under it
shortly after the Bar Date. The Bar Date is binding on all
claimants to Trust Assets whether or not they are signatories to
the CRA.
The Order allows LBIE and the Joint Administrators to distribute
assets held for clients and protects them from claims in respect
of any breach of trust which arises in circumstances where LBIE
distributes (or retains for itself pursuant to its legal rights)
Trust Assets to clients and counterparties of LBIE after
March 19, 2010 on the basis of the information then available to
them.
Trust Asset claimants have recently been provided with statements
setting out an estimate of the assets LBIE holds on their behalf
and all affected clients were invited to attend meetings in London
and New York last week.
Tony Lomas, Mr. Pearson, Dan Schwarzmann, Michael Jervis and Derek
Howell, all partners at PricewaterhouseCoopers, were appointed as
joint administrators to Lehman Brothers International Europe and
other related entities on September 15, 2008.
LBIE held some US$32 billion of client assets on September 15,
2008. Since that date US$13.3 billion has been returned. The bar
date enables LBIE to move to distribute the remaining trust
property during 2010.
LBIE issued the Claim Resolution Agreement to affected clients in
November 2009 and is seeking the support of 90% of affected
clients to its terms if it is to be implemented. Meetings with
affected clients were held in London and New York last week to
explain the terms of the agreement and to garner support.
LEHMAN BROTHERS: Court Hands Down Judgment on Client Money
----------------------------------------------------------
The High Court on Tuesday handed down judgment on an application
brought by the joint administrators of Lehman Brothers
International (Europe) seeking directions relating to the client
money held by LBIE prior to its administration.
The judgment follows the joint administrators' directions
application issued on May 1, 2009 which sought to address a number
of uncertainties in the FSA's client money rules. LBIE's records
identified client money claims of some US$2.1 billion. The
Administrators hold some US$1 billion in segregated pre-
administration client money.
Mr. Justice Briggs noted in his judgment that the FSA's rules were
unclear in a number of important respects but found that:
* The pool of pre-administration segregated client money was
to be distributed to those clients for whom LBIE had
segregated client money prior to its administration in
proportion to the amounts segregated for them.
* LBIE was not under any obligation to top up the client money
pool to correct any shortfalls in the amount of client money
held.
The effect of the judgment is that clients who were entitled to
client money protection but for whom money was not segregated
cannot participate in the pool of client money controlled by the
joint administrators.
Andrew Clark, partner at PricewaterhouseCoopers leading the team
managing the client money matters, said: "There has been a
significant uncertainty over who is entitled to claim the client
money which LBIE is holding. This decision provides clarity and
enables us to confirm client entitlements."
The judgment affirms the outcome expected by the joint
administrators and their legal advisers, Linklaters. Stephen
Fletcher, partner at Linklaters, commented:
"The court has provided much needed clarity on a cornerstone of
the UK regulatory regime protecting clients."
"While this decision is welcome, the breadth of the issues likely
to be appealed will impact on the progress towards distribution
that the joint administrators had been hoping to make."
Steven Pearson, joint administrator and partner at
PricewaterhouseCoopers LLP, commented:"[Tues]day's judgment
confirms the way we have determined clients' entitlements to the
client money we hold. We are keen to return client money as soon
as possible and I hope that any appeal can be dealt with swiftly.
I understand that the way in which LBIE determined entitlements to
client money were market practice ? this judgment could have wider
market consequences if other market participants need to
reappraise whether further amounts now need to be segregated."
An update on Tuesday's judgment will shortly be posted on the PwC
website, which will set out further details on the issues on which
directions were sought, the court's findings in relation to them
and how those findings will affect clients with client money
claims.
Tony Lomas, Mr. Pearson, Dan Schwarzmann, Michael Jervis and Derek
Howell, all partners at PricewaterhouseCoopers, were appointed as
joint administrators to Lehman Brothers International Europe and
other related entities on September 15, 2008.
LBIE had US$2.1 billion of client money segregated at
September 15, 2008, of which US$1 billion was deposited with
Lehman Brothers Bankhaus AG, its German affiliate. Bankhaus is in
German insolvency proceedings and has advised the LBIE
administrators that it is seeking to subordinate LBIE's client
money claim to its other unsecured creditors. Such treatment
would mean that there is a prospect of no recovery from sums due
from Bankhaus and the client money pool has US$1 billion deficit.
LBIE is challenging this treatment.
Client money entitlements are determined in accordance with the
FSA's Client Assets Sourcebook rules. A number of uncertainties
exist regarding the interpretation of these rules.
The administrators' directions application raised 30 questions
regarding the interpretation of CASS. The High Court took 11 days
to hear the various submissions.
The administrators invited a number of respondents to the hearing,
including the FSA, a number of Lehman affiliates and a number of
third-party clients of LBIE.
Affiliates claimed that MiFID (the Markets in Financial
Instruments Directive) required LBIE to segregate client money.
It was not LBIE's practice to do so, but had it done so a further
US$3 billion or so could have been segregated.
Mr Justice Briggs observed that there had been under-segregation
by LBIE. LBIE believed it had complied with CASS. Its
application of CASS pre-administration was considered to be both
consistent with the rules and other market participants'
interpretation of the rules.
Six respondents have indicated they wish to appeal and they have
until the end of January to file such an appeal. The
administrators will respond to the appeal at that time.
NOVAE INSURANCE: Fitch Cuts Insurer Financial Strength Rating
-------------------------------------------------------------
Fitch Ratings has downgraded Novae Insurance Company Limited's
Insurer Financial Strength rating to 'BBB' from 'A-'. The Outlook
is Negative. Fitch has simultaneously withdrawn the rating. The
rating action does not affect Novae Group plc's Long-term Issuer
Default Rating of 'BBB' and subordinated debt of 'BB+', which both
remain on Rating Watch Negative, and for which Fitch will maintain
coverage.
Fitch will no longer provide rating or analytical coverage for
NICL.
The downgrade of NICL's rating follows Novae's public announcement
on 7 December 2009 that it will transfer the majority of in-force
business from NICL to the group's Lloyd's of London business
during 2010, and place the remainder into run-off. The downgrade
reflects the likely rating level for the post-transfer, run-off
phase of NICL and Fitch's belief that the amount of residual
capital retained in NICL to support the run-off company is likely
to be at or just above the required regulatory minimum level of
'BBB-'. Furthermore, Fitch expects that the residual business
left to run-off in NICL is likely to be more capital intensive.
These factors are in part offset by NICL's anticipated continued
membership of the broader Novae group, and the benefits that this
should bring. The Negative Outlook reflects the possibility that
the quality of residual run-off business and level of capital
retained at NICL could be below Fitch's current expectations.
Fitch anticipates that the RWN in respect of Novae will be
resolved once the agency has assessed the longer-term capital and
business growth strategy of the remaining group.
London-based Novae provides insurance and reinsurance underwriting
services to international and UK provincial markets, operating
through the Lloyd's operation Novae Syndicates. Novae Insurance
Company is an FSA-regulated UK insurance company.
PUNCH TAVERNS: Moody's Downgrades Rating on C1 Notes to 'Ba1'
-------------------------------------------------------------
Moody's Investors Service has downgraded the rating of this class
of Notes issued by Punch Taverns Finance B Limited (amounts
reflecting initial outstanding):
-- GBP125M C1 Secured Floating Rate Notes due June 2035,
Downgraded to Ba1; previously on Mar 12, 2009 Baa3 Placed
Under Review for Possible Downgrade
At the same time, Moody's confirmed the ratings of these classes
of Notes (amounts reflecting initial outstanding):
-- GBP201M A3 Secured Notes due 2022, Confirmed at A2;
previously on Mar 12, 2009 A2 Placed Under Review for
Possible Downgrade
-- GBP220M A6 Secured Notes due December 2024, Confirmed at A2;
previously on Mar 12, 2009 A2 Placed Under Review for
Possible Downgrade
-- GBP250M A7 Secured Notes due June 2033, Confirmed at A2;
previously on Mar 12, 2009 A2 Placed Under Review for
Possible Downgrade
-- GBP250M A8 Secured Floating Rate Notes due June 2033,
Confirmed at A2; previously on Mar 12, 2009 A2 Placed Under
Review for Possible Downgrade
-- GBP77.5M B1 Secured Notes due 2025, Confirmed at Baa2;
previously on Mar 12, 2009 Baa2 Placed Under Review for
Possible Downgrade
-- GBP125M B2 Secured Notes due June 2028, Confirmed at Baa2;
previously on Mar 12, 2009 Baa2 Placed Under Review for
Possible Downgrade
Punch Taverns Finance B Limited represents a whole-business
securitization of a portfolio of currently 2,509 leased pubs
located throughout the UK. The transaction closed in November
2002 and was restructured in August 2005.
Moody's rating action concludes the review for possible downgrade
that was initiated in March 2009. During its review, Moody's has
focused its analysis on the Issuer's ability to generate
sufficient cash flow over the medium-term from its pub portfolio
relative to its outstanding total debt in the transaction in light
of (i) the declining annual EBITDA and free cash flow (FCF) trend
on the securitized portfolio over the past few quarters and (ii)
the decreasing profit margins on the estate, also taking into
account the deleveraging of the transaction by the sponsor.
As of end-FY 2009, the trailing 12-month turnover, adjusted to a
364-day period ("normalized"), totalled GBP259.4 million, showing
a reduction of 6.5% when compared with the same period last year.
The normalized trailing 12-month EBITDA totalled GBP141.6 million,
9.8% below the total from the same period last year. At the same
time, the FCF decreased by 12.5% year-on-year to GBP135.3 million.
On a per pub basis, the declines were less severe with the
turnover per pub down by 3.3% to GBP 97.5 thousand and EBITDA per
pub down by 6.8% to GBP 53.2 thousand over the last 12 months.
The total EBITDA from the portfolio as of end-FY 2009 is below the
range expected by Moody's as of the transaction restructuring date
in August 2005 (assumed EBITDA in a range of GBP142m to 152m).
Moody's expects that the EBITDA and FCF will decrease further in
2010, by less than 10% from the trailing 12-month levels as of
end-FY 2009, due to (i) continuing declines in beer sales
resulting mainly from changing consumption habits, as well as (ii)
continuing contraction of achievable profit margins.
In line with the declining cash flows, the DSCR and FCF to Debt
Service ratios have been declining over the past few quarters,
with the DSCR falling to 1.93x on a rolling two quarter and 1.92x
on a rolling four quarter basis compared with 2.13x at the same
period last year. As a consequence of further envisaged declines
in cash flows from the estate and the amortization profile of the
bonds, with amortization of Class A7 Notes commencing in December
2009 followed by the Class A8 Notes in December 2010, Moody's
expects that the debt service coverage will come under further
pressure. Looking into 2010, it is highly likely that the
restricted payment trigger in the transaction will be breached.
The trigger level was set at 1.85x during the interest-only
period, gradually decreasing to 1.50x as of August 2010 in
accordance with the transitional covenant step-down in the
transaction.
In case of a breach of this trigger, any excess cash would be
trapped at the securitization level, to be released only when the
relevant covenants are again satisfied as set out in the
transaction documents. Based on the public announcements of the
Punch Group over the course of FY 2009 that the group is aiming to
reduce its total debt outstanding and also Moody's discussions
with the sponsor, Moody's expects that most of the cash trapped in
the structure would be used to repay debt in the subject
securitization as opposed to acquiring new pubs or investing in
the estate in the form of capex.
Moody's noted in its update on the review of the Notes in June
2009 that Punch Taverns, the sponsor and guarantor of the borrower
in the transaction bought back notes in a total amount of
GBP37.7 million until end-Q2 2009. The note buyback comprised the
purchase of a portion of the Class A8 Notes (GBP25.3 million) and
the Class B1 Notes (GBP12.4 million). Since Q2 2009 until end-Q4
2009, PMH has bought back further GBP2.1 million of Class A8 Notes
and GBP4.5million of Class B2 Notes. Moreover, a total of
GBP102.2 million of Class A8 Notes have been repurchased since
end-FY 2009. In its current analysis, Moody's took into account
the overall debt reduction in the transaction which Moody's views
as beneficial for the remaining outstanding Notes.
The reduced total outstanding debt and the future prospect of
further debt repayments ahead of schedule has prompted Moody's to
confirm the rating of the Class A3, Class A6, Class A7, Class A8,
Class B1 and Class B2 Notes despite declining FCF from the estate.
With respect to the Class C1 Notes which are subordinated in the
transaction's structure, the experienced decline in the FCF and
further envisaged declines results in a ratio of securitized debt
to Moody's expected sustainable FCF that is no longer appropriate
for the given rating level. Hence, the rating of the Notes has
been downgraded by one notch.
Moody's expects that the pub portfolio will be subject to further
changes in the near future primarily due to potential pub
disposals as disclosed by the sponsor. Moody's understands that
such disposal proceeds would also mainly be used to deleverage the
transaction. Going forward, Moody's will continue to focus its
performance analysis of sustainable EBITDA and FCF on both, total
portfolio and on a per pub basis and closely monitor the
development against outstanding debt in the transaction.
Moody's initially analyzed and monitors this transaction using its
rating approach for whole business transactions. In this
approach, a sustainable annual free cash flow is derived over the
medium to long term horizon of the transaction, and then
multipliers are applied to such cashflows in order to reach the
debt which could be issued at the targeted long-term rating level
for the Notes.
TITANEUROPE 2007-3: S&P Downgrades Ratings on Five Notes
--------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on TitanEurope 2007-3
Ltd.'s class A1, X, A2, B, and C notes. At the same time, S&P
removed the class D notes from CreditWatch negative.
Titan Europe 2007-3 is a true-sale commercial mortgage-backed
securities transaction secured against 18 U.K. loans. The
transaction's expected maturity date occurs in October 2013.
The rating actions reflect S&P's increased doubts over the loans'
creditworthiness, which in S&P's opinion has deteriorated due to
the factors mentioned below. S&P has adjusted its ratings
accordingly.
Three loans, Metro, Holmerwood Chesterfield, and Bacchus, are
currently in special servicing because of payment defaults. The
Metro and Holmerwood Chesterfield properties were revalued in 2008
and 2009, respectively. These revaluations resulted in material
market value declines and S&P believes that principal shortfalls
on the securitized loan amounts are likely to occur in a recovery
scenario. The Bacchus properties have not been revalued since
closing and S&P believes that their current market value is likely
to be less than the securitized-loan amount.
Of the 15 remaining loans, properties exposed to single-tenant
risk (the main tenant generating more than 75% of income) secure
12 of them. These 12 loans represent 78% of the outstanding
securitization balance. In most cases these loans are scheduled
to refinance between 2012 and 2013 and, despite mitigating factors
such as tenant quality and/or a long lease profile, S&P believes
there is refinance risk for these loans if the current economic
environment persists. In addition, S&P continue to observe that
debt accessibility is limited and S&P believes that the reported
values no longer reflect the current market values.
At the July 2009 interest payment date, Bank of America N.A., as
backup advance provider, declined to provide a liquidity advance
for the Metro loan. At the same time, BofA also deemed all
previously advanced funds non-recoverable, and accelerated
repayment of these funds. This action resulted in an interest
shortfall affecting all classes up to the A2 notes. BofA opted to
exercise its right to immediate repayment, even though as advance
provider it has a senior recovery position in the transaction's
payment waterfall. In similar circumstances in U.S. CMBS
transactions, S&P's understanding is that advance providers have
typically spread the repayment of non-recoverable advances over
several IPDs.
S&P characterizes the present shortfall in interest for the class
A2 and B notes as minor and believe that the deferred interest to
be recovered over time. S&P does, however, anticipate that
deferred interest on the class C and D notes will remain
outstanding and that future interest shortfalls are likely to
continue to accrue.
Ratings List
Titan Europe 2007-3 Ltd.
GBP778.822 Million Commercial Mortgage-Backed Floating-Rate Notes
Ratings Lowered And Removed From CreditWatch Negative
Rating
------
Class To From
----- -- ----
A1 AA AAA/Watch Neg
X AA AAA/Watch Neg
A2 BBB AAA/Watch Neg
B BBB- A/Watch Neg
C B BBB/Watch Neg
Rating Removed From CreditWatch Negative
Rating
------
Class To From
----- -- ----
D CCC- CCC-/Watch Neg
URSUS EPC: Fitch Corrects Press Release; Cuts Ratings on Notes
--------------------------------------------------------------
Fitch Ratings has issued a release correcting a version published
on 11 December 2009. The Lamorna and Shazr loans are cross-
defaulted, but not cross-collateralized as previously stated.
However, this change has no impact on the ratings action.
Fitch has downgraded the class A to E CMBS notes of Ursus EPC plc.
The class A and B notes have Negative Outlooks. Fitch has also
assigned Recovery Ratings (RR) to the class C, D and E notes. A
full rating breakdown follows:
-- GBP28.9m class A due July 2012 (XS0225923274) downgraded to
'A' from 'AAA'; Outlook Negative
-- GBP0.01m class X1 (XS0225925139) affirmed at 'AAA'; Outlook
Stable
-- GBP0.005m class X2 (XS0225928828) affirmed at 'AAA'; Outlook
Stable
-- GBP0.005m class X3 (XS0225930212) affirmed at 'AAA'; Outlook
Stable
-- GBP0.005m class X4 (XS0225931020) affirmed at 'AAA'; Outlook
Stable
-- GBP5.2m class B due July 2012 (XS0225931889) downgraded to
'BBB' from 'AA'; Outlook Negative
-- GBP5.2m class C due July 2012 (XS0225932697) downgraded to
'CCC' from 'A'; assigned 'RR4'
-- GBP5.1m class D due July 2012 (XS0225933406) downgraded to
'CC' from 'BBB'; assigned 'RR6'
-- GBP2.9m class E due July 2012 (XS0225934719) downgraded to
'CC' from 'BB-'; assigned 'RR6'
The rating action reflects the failure to repay, and subsequent
transfer to special servicing, of the Lamorna and Shazr loans at
maturity on 15 October 2009, and also the uncertainty surrounding
the impending maturities of the two remaining loans -- the
Castlegate Shopping Centre and the TK Maxx Distribution Centre
loans -- which are both scheduled for April 2010. Fitch's
criteria for European CMBS surveillance was used to analyze the
quality of the remaining underlying commercial loan.
Net income derived from the underlying property collateral remains
robust, with the interest coverage ratios of each loan exceeding
1.32x. However, the overwhelming risk in the transaction lies
with the refinancing prospects of these borrowers, particularly
given the beleaguered condition of non-prime UK commercial
property and bank lending markets. Fitch estimates the current
weighted average loan-to-value ratio of the remaining loans to be
approximately 130%, implying a high likelihood of loss for junior
classes.
The Lamorna and Shazr loans are two cross-defaulted facilities
with a current combined outstanding balance of GBP3.5m. Neither
loan was repaid on the scheduled maturity date of 15 October 2009.
The loans are secured by tertiary high street retail and adjoining
residential properties located in east London. Fitch believes
that the WA exit debt yield based on in-place rent stands at
10.7%, lower than the prevailing yield on assets of this quality.
The agency estimates a combined LTV of 112%.
The Castlegate Shopping Centre loan has a current outstanding
balance of GBP36.1m and is secured by a single secondary shopping
centre located in Stockton-on-Tees. The property has an EDY based
on passing rent of 7.7%, which is unlikely to be sufficient to
avoid some loss. Fitch's estimated LTV of 136% bears out this
expectation, given the imminent maturity date.
The TK Maxx Distribution Centre loan has amortized to GBP7.7m,
from GBP8.4m at closing. It is secured by a single distribution
centre situated near Wakefield, Yorkshire, and fully let to TK
Maxx Ltd on a lease expiring in March 2015. Based on the current
lease in place, the loan EDY is quite healthy at 10.3%. However,
uncertainty as to the sustainability of projected income after the
TK Maxx lease expires, as well as a significantly weakened
investment market for light industrial properties in the current
market, leads Fitch to estimate that the current LTV is in the
region of 107%.
The transaction's ratings may be affected by the actions of the
servicer and special servicer in maximizing recoveries under the
remaining loans prior to the legal final maturity of the
transaction in July 2012. Fitch will monitor developments in this
regard closely.
WATFORD LEISURE: Suspends Share Trading; Administration Looms
-------------------------------------------------------------
Watford Leisure announced that immediately prior to the Company's
Annual General Meeting, held Tuesday evening, Jim Russo, Vince
Russo and Robin Williams resigned from the board of Watford
Leisure with immediate effect. All other resolutions, including
those to reappoint the remaining members of the board were duly
passed. Both Valley Grown Salads and Fordwat Limited abstained
from voting on the resolutions to re-appoint the non-executive
directors to the Board.
Following the resignation of the directors, the Board received
a written demand from Valley Grown Salads (a company in which Jim
and Vince Russo have an interest) for the repayment of its GBP4.88
million of loans (made to the Company) on or before close of
business on December 16, 2009.
The Board continues to consider indicative proposals from both
Valley Grown Salads and Fordwat Limited. However, pending
resolution and clarification of its financial position the Company
has requested that its shares be suspended from trading on AIM.
In the event that a funding solution cannot be obtained then the
Company may have to be placed in administration. A further
announcement will be made in due course.
Watford Leisure PLC -- http://www.watfordfc.com/-- is a United
Kingdom-based holding company. The principal activity of the
Company is to hold, as investments, the majority of the issued
share capital of The Watford Association Football Club Limited,
and the whole of the issued share capital of Watford Catering
Limited. The principal activity of Watford Association Football
Club is a professional football league club.
===============
X X X X X X X X
===============
* BOOK REVIEW: Voluntary Assignments for the Benefit of Creditors
-----------------------------------------------------------------
Publisher: Beard Books
Softcover: 788 pages for both volumes
Price: US$34.95 each volume; US$49.95 set
Review by Henry Berry
http://www.amazon.com/exec/obidos/ASIN/189312228X/internetbankrupt
http://www.amazon.com/exec/obidos/ASIN/1893122298/internetbankrupt
Voluntary Assignments for the Benefit of Creditors is a 1999
update of the classic nineteenth-century work on the important
financial and business instrument known as "voluntary
assignments." The author of the original edition was Alexander M.
Burrill, a noted legal scholar who also wrote a law dictionary and
several other texts. Voluntary Assignments for the Benefit of
Creditors is now in its sixth edition, with Avery-Webb authoring
the update.
As defined by the authors, voluntary assignments for the benefit
of creditors are "transfers, without compulsion of law, by
debtors, of some or all of their property to an assignee or
assignees, in trust to apply the same, or the proceeds thereof, to
the payment of some or all of their debts, and to return the
surplus, if any, to the owner." Voluntary assignments offer
businesspersons from small business owners to corporate executives
great flexibility in raising capital. Considering the many ways
that businesses can enter into voluntary assignments, the
different ways of valuing properties "assigned," and the changing
value of these properties over time, the law governing voluntary
assignment is complex.
The authors tackle the subject of voluntary assignments in all its
breadth and depth. During the 1800s, when Burrill's work first
came out, there were innumerable cases dealing with voluntary
assignments. The case law of the 1800s remains authoritative,
informative, and instructive today.
To render it comprehensible, the authors break down the subject
matter into its many facets, thereby allowing lawyers and others
to quickly reference areas of interest. These cases are listed
alphabetically, and comprise more than fifty pages in a front
section titled "Table of Cases." Cases are also referred to in
the text proper and in copious footnotes. The format of the text,
including the footnotes, is the standard followed by many legal
texts and handbooks, notably the multi-volume American
Jurisprudence. The sections are numbered consecutively in forty-
five chapters. There are 458 sections in all. The sections are
relatively short, even though the subject of voluntary assignments
is complex and there is bountiful case law.
Readers can peruse general topics such as execution of the
assignment, construction of assignments, sale of the assigned
property, and the rights, duties, and powers of the assignee. More
specific, detailed topics can be accessed using the index. There
are two appendices. The first contains synopses of the statutes of
every state and territory on voluntary assignments. The second
appendix contains nearly thirty standard forms that can be used
for various aspects of assignments.
Although voluminous and rigorous in its commentary and legal
citations, the two-volume Voluntary Assignments for the Benefit of
Creditors is neither dense nor ungainly. Like a good lawyer
breaking down a case so it can be comprehended by a jury of
average persons, so does Burrill and Avery-Webb deal with the
topic of voluntary assignments.
Born in 1868 in Tennessee, James Avery-Webb (d. 1953) had a career
as a prominent attorney in New York City.
*********
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 * * *