/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/100113.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Wednesday, January 13, 2010, Vol. 11, No. 008 Headlines A U S T R I A IMMOFINANZ AG: Shareholders to Vote on Immoeast Merger This Month F R A N C E ALCATEL-LUCENT: Has Yet to Report Net Profit Since Closing Merger G E R M A N Y CONTINENTAL AG: Still Undecided on Schaeffler Merger Timing CONTINENTAL AG: Secures EUR2.5 Bln Forward Start Facility FMC FINANCE: Moody's Assigns 'Ba2' Rating on EUR250 Mil. Notes GENERAL MOTORS: Talks on Opel Restructuring Plan Resume Jan. 14 I R E L A N D AULDCARN LTD: Faces Liquidation; Creditors Meeting on Jan. 21 BANK OF IRELAND: Explores Options to Enhance Capital Position BOUNDTO LIMITED: Creditors Meeting Scheduled for January 20 COURTYARD LIFESTYLE: Creditors Meeting Scheduled for January 21 GBM CITYSIDE: Creditors Meeting Scheduled for January 27 GBM MOTORS: Creditors Meeting Scheduled for January 27 HOMEPLAN INTERIORS: Creditors Meeting Scheduled for January 20 JR CAMS: Creditors Meeting Scheduled for January 26 KEVIN ARUNDEL: Creditors Meeting Scheduled for January 26 LEOVILLE LTD: Rent Talks Fail; Liquidator Appointed O'DWYER & SONS: Creditors Meeting Scheduled for January 25 PJT INSURANCE: Files Winding-Up Petition, Hearing Set January 25 WYNNWALS LIMITED: Creditors Meeting Scheduled for January 21 I T A L Y MARIELLA BURANI: Prosecutors Seek Bankruptcy for Holding Company K A Z A K H S T A N DAL-DEL OIL: Creditors Must File Claims by January 27 EXPRESS ASIA 7: Creditors Must File Claims by February 2 KAZ STROY-5: Creditors Must File Claims by February 2 KKM HOLDING: Creditors Must File Claims by January 27 PREDGORNENSKAYA NEFTEBAZA: Creditors Must File Claims by Feb. 2 K Y R G Y Z S T A N GLOBAL TRANS: Creditors Must File Claims by February 2 INTERNATIONAL TRADE: Creditors Must File Claims by February 2 L U X E M B O U R G CIRSA FUNDING: Moody's Assigns 'B3' Rating on Senior Secured Notes CIRSA FUNDING: S&P Assigns 'B+' Rating on EUR600 Mil. Bonds ORCO PROPERTY: Investor Files Suit Over Handling of Bankruptcy P O L A N D TOWARZYSTWO UBEZPIECZEN: Fitch Puts 'BB' Rating on Evolving Watch R U S S I A ROSAVIA: Aeroflot Officials to Discuss Possible Acquisition UC RUSAL: Lenders Support Pay Package for CEO Oleg Deripaska S W E D E N GENERAL MOTORS: To Continue with Saab Wind-Down Process U K R A I N E NAFTOGAZ OF UKRAINE: On Brink of Default, Presidential Envoy Says U N I T E D K I N G D O M LEHMAN BROTHERS: Pickens' BP Capital Sells US$42M of Claims to RBS MANCHESTER UNITED: Confirms Bond Issue, Incurs GBP35M Hedging Loss NORTHERN ROCK: Moody's Affirms 'Ca' Ratings on Tier 2 Notes ROYAL BANK: Buys BP Capital's US$42MM Claim in Lehman Brothers VIRGIN MEDIA: To Issue US$1 Billion in Secured Bonds VIRGIN MEDIA: Offers GBP500 Mln Senior Secured Notes Due 2018 ********* ============= A U S T R I A ============= IMMOFINANZ AG: Shareholders to Vote on Immoeast Merger This Month ----------------------------------------------------------------- Peter Woodifield at Bloomberg News reports that shareholders of Immoeast AG and Immofinanz AG will vote this month on a proposed merger of the two developers. According to Bloomberg, Immoeast investors will own 54% of the combined company to reflect that Immoeast is Immofinanz's biggest asset. Bloomberg recalls Immoeast was hurt by the global financial crisis that caused its properties in eastern Europe to plummet in value. Bloomberg notes shares of the company rose by more than eight times last year as the company avoided bankruptcy by abandoning building projects and generating cash, Bloomberg notes. Eduard Zehetner became Immoeast's chief in November 2008 and CEO of Immofinanz in February 2009, Bloomberg relates. Reorganization Plan Bloomberg recounts Mr. Zehetner, 58, presented a reorganization plan for Immofinanz in February aimed at improving its balance sheet, repaying a EUR512-million (US$737 million) investment in corporate bonds and resolving a EUR1.8-billion loan from Immoeast. Bloomberg says as well as cutting back on shopping-mall developments in eastern Europe, Mr. Zehetner has refinanced some debt and sold Immofinanz's Immoaustria Immobilien Anlagen GmbH unit to Immoeast to cancel a loan Immofinanz couldn't afford to repay. "The restructuring process is now almost finished," Bloomberg quoted Mr. Zehetner as saying. "They will have to reduce their high retail presence in Russia and also in Romania." IMMOFINANZ AG -- http://www.immofinanz.at/-- is an Austrian real estate company that invests in private and commercial properties. Its core activities are the rental and overall management of its portfolio, the identification of sound investments and the diversification of its portfolio both geographically and across the different sectors of the property market. The Company focuses on operations in German-speaking countries of Austria, Germany and Switzerland, but is also active in Central, Eastern and South- Eastern Europe. As of April 30, 2009 the IMMOFINANZ AG managed a portfolio of 1.711 properties, covering a usable floor area of 9,487,910 square meters. Its properties include apartments, hotels, offices, retail outlets and garages. The Company operates through numerous direct and indirect as well as majority owned and wholly owned subsidiaries, including IMMOAUSTRIA Immobilien Anlagen GmbH, IMMOEAST AG and IMMOWEST, among others. =========== F R A N C E =========== ALCATEL-LUCENT: Has Yet to Report Net Profit Since Closing Merger ----------------------------------------------------------------- Andrew Parker at The Financial Times reports that three years after the Alcatel-Lucent merger was completed, the company has yet to report a net profit. According to the FT, the company has looked weaker than its predecessor companies. The FT says the transaction was structured as a nil premium merger, and when it was announced in April 2006, Alcatel and Lucent said the combined company would have a market capitalization of EUR30 billion. By Wednesday, Jan. 6, the company's market value was EUR5.6 billion (US$8 billion), the FT notes. The FT relates Ben Verwaayen, Alcatel-Lucent's chief executive since 2008, is hoping the company can break even in its 2009 financial year. But his target is not to break even at the net income line: he is aiming at avoiding a loss at the level of adjusted operating profit, the FT states. The "adjusted" tag excludes items such as goodwill impairments, the FT discloses. "Alcatel-Lucent is doomed to remain a low profit, low-growth company, struggling with businesses that are either not very profitable or sub-scale," the FT quoted Pierre Ferragu, analyst at Bernstein, as saying. About Alcatel-Lucent France-based Alcatel-Lucent (Euronext Paris and NYSE: ALU) -- http://www.alcatel-lucent.com/-- provides product offerings that enable service providers, enterprises and governments worldwide, to deliver voice, data and video communication services to end users. In the field of fixed, mobile and converged broadband networking, Internet protocol (IP) technologies, applications and services, the company offers the end-to-end product offerings that enable communications services for residential, business customers and customers. It has operations in more than 130 countries. It has three segments: Carrier, Enterprise and Services. The Carrier segment is organized into seven business divisions: IP, fixed access, optics, multicore, applications, code division multiple access networks and mobile access. Its Enterprise business segment provides software, hardware and services that interconnect networks, people, processes and knowledge. Its Services business segment integrates clients' networks. In October 2008, the company completed the acquisition of Motive, Inc. * * * As reported by the Troubled Company Reporter-Europe on Nov. 11, 2009, Standard & Poor's Ratings Services said that it has lowered to 'B' from 'B+' its long-term corporate credit rating on France-based telecom equipment supplier Alcatel Lucent. S&P affirmed the 'B' short-term corporate credit rating. The outlook is negative. The recovery rating of '4' on Alcatel Lucent's senior unsecured debt is unchanged. "The downgrade primarily reflects S&P's expectation that the turnaround in Alcatel Lucent's operating performance, and notably a return to sustainable positive cash generation, could take several quarters," said Standard & Poor's credit analyst Patrice Cochelin. S&P expected demand for telecom equipment to remain soft in the coming quarters, while competition among vendors, particularly from Europe and China, remains very intense. Combined with Alcatel Lucent's significant debt maturities in the next two years, these threats led the rating agency to believe that Alcatel Lucent's large cash balances, which include the benefits of recent refinancing, could be rapidly depleted. At Sept. 30, 2009, Alcatel Lucent reported gross consolidated debt of EUR5.4 billion, including EUR0.6 billion for the equity component of convertible bonds. ============= G E R M A N Y ============= CONTINENTAL AG: Still Undecided on Schaeffler Merger Timing ----------------------------------------------------------- Cornelius Rahn at Bloomberg News reports that Continental AG said it aims to merge with controlling shareholder Schaeffler Group "in the medium term" in a way that will assure an investment-grade debt rating. According to Bloomberg, Continental said in a stock-sale filing, the companies haven't decided on the timing of any combination, or on the merged entity's financial structure. The companies have been in talks since then concerning a potential merger, the report relates. Continental's debt is rated B+ at Standard & Poor's and Fitch Ratings, four levels below investment grade, Bloomberg noted. As reported by the Troubled Company Reporter-Europe on Jan. 8, 2010, Continental plans to raise EUR1.1 billion (US$1.6 billion) in a stock sale to help refinance debt after receiving approval from its supervisory board. Bloomberg disclosed Continental's lenders last month agreed to extend the company a EUR2.5-billion loan on condition that it raises EUR1 billion in fresh capital by selling new shares. The two-year loan and stock sale will go toward refinancing a EUR3.5-billion loan due in August, Bloomberg said. According to Bloomberg, Continental, Europe's second-largest tiremaker, has recorded losses for four consecutive quarters as it struggles with the worst auto-industry crisis in decades. The company is laden with EUR9.5 billion in debt after acquiring the VDO auto-parts unit from Siemens AG in 2007, Bloomberg noted. About Continental AG Hanover, Germany-based Continental AG (OTC:CTTAY) -- http://www.conti-online.com/-- is an automotive industry supplier. The Company focuses its activities on the development, production and distribution of products that improve driving safety, driving dynamics and ride comfort. It operates in six divisions. Chassis and Safety provides active and passive driving safety, safety and chassis sensor systems, as well as chassis components. Powertrain focuses on engine systems, hybrid electric drives, injection technology, and sensors and actuators, among others. Interior manufactures information management modules and wireless mobile devices. Passenger and Light Truck Tires provides tires for passenger cars, motorcycles and bicycles. Commercial Vehicle Tires offers tires for trucks, as well as industrial and off-the-road vehicles. ContiTech specializes in the rubber and plastics technology, offering parts, components and systems for the automotive industry and other sectors. In January 2009, Schaeffler KG acquired 49.9% interest in the Company. CONTINENTAL AG: Secures EUR2.5 Bln Forward Start Facility --------------------------------------------------------- Continental AG, Hanover, completed the first key steps of its overall plan to improve the current financing structure as well as its capital structure. Important amendments were made to the existing loan agreements, allowing for the repayment of the tranche in the amount of EUR3.5 billion due in August 2010 inter alia by a forward start facility while providing further flexibility as well. At the same time, the company has received commitments in excess of the requested EUR2.5 billion in the FSF and therefore an over-subscription of the request by their bank group, the international automotive supplier announced after the signing of the related loan agreements in Hanover on Saturday. The company said now that the negotiations with the banks have been successfully concluded, the integrally related capital increase with anticipated gross proceeds of at least one billion euros can be undertaken as the next step of the refinancing concept. The ability of Continental to draw under the FSF is conditional upon the successful implementation of such a capital increase. As already announced, the capital increase is intended to be implemented in the first quarter of 2010. Subsequently, the company intends to asses and -- if appropriate -- to implement further measures on the financial markets with a view to further optimize maturity terms. "Although Continental has done a very good job reacting to the global crisis, especially in generating and maintaining liquidity, as a direct consequence we still needed to address the maturity in 2010 as well as the financial covenants related to the maturity structure. Our overall refinancing concept gives Continental the needed flexibility to emerge strongly from this crisis and therefore we are pleased to see the confidence shared in our company by our bank group in clearly supporting these very important first steps," said Continental Executive Board chairman Dr. Elmar Degenhart. "Now comes the next stage with the capital increase, which we are tackling in the same structured and rigorous manner. An experienced team of internal and external specialists is fully concentrated on preparing the capital increase, and the preparations are well underway. We are confident that the further planned steps in this program will be successfully implemented and we appreciate the support of our banks in this process. In the beginning of the New Year, we anticipate making further announcements as we implement further steps to successfully recapitalize Continental." The Continental Corporation had taken a syndicated loan to finance the acquisition of Siemens VDO in the summer of 2007. After the repayment of tranche A in an amount of EUR800 million in August 2009, tranche B in an amount EUR3.5 billion will be up for repayment in August 2010. Tranche C totaling EUR5.0 billion will fall due in 2012. On September 30, 2009, Continental had at its disposal liquidity reserves from unused credit lines, cash and cash equivalents totaling EUR3.3 billion. The corporation's net indebtedness was approximately EUR9.5 billion on September 30, 2009, approximately EUR1.3 billion lower than on September 30, 2008. About Continental AG Hanover, Germany-based Continental AG (OTC:CTTAY) -- http://www.conti-online.com/-- is an automotive industry supplier. The Company focuses its activities on the development, production and distribution of products that improve driving safety, driving dynamics and ride comfort. It operates in six divisions. Chassis and Safety provides active and passive driving safety, safety and chassis sensor systems, as well as chassis components. Powertrain focuses on engine systems, hybrid electric drives, injection technology, and sensors and actuators, among others. Interior manufactures information management modules and wireless mobile devices. Passenger and Light Truck Tires provides tires for passenger cars, motorcycles and bicycles. Commercial Vehicle Tires offers tires for trucks, as well as industrial and off-the-road vehicles. ContiTech specializes in the rubber and plastics technology, offering parts, components and systems for the automotive industry and other sectors. In January 2009, Schaeffler KG acquired 49.9% interest in the Company. * * * As reported by the Troubled Company Reporter-Europe on January 12, 2010, Fitch Ratings affirmed Continental AG's Long-term Issuer Default Rating at 'B+', removed the rating from Rating Watch Negative and assigned the Long-term IDR a Stable Outlook. The rating action reflects Continental's January 6, 2010 announcement of a EUR1.1 billion capital increase. Continental's senior unsecured rating of 'B+' remains on RWN, with a Recovery Rating of 'RR4', due to its commitment to provide certain security for the syndicated loans. The Short-term IDR is affirmed at 'B'. FMC FINANCE: Moody's Assigns 'Ba2' Rating on EUR250 Mil. Notes -------------------------------------------------------------- Moody's Investors Service assigned a Ba2 rating to the proposed c. EUR250 million senior unsecured notes due in 2016, to be issued by FMC Finance VI S.A. and guaranteed by Fresenius Medical Care AG & Co. KGaA, Fresenius Medical Holdings, Inc. and Fresenius Medical Care Deutschland GmbH. At the same time, Moody's affirmed all the other ratings of FME; the outlook is stable. The senior unsecured notes are expected to be used primarily to refinance existing debt, including part of the group's US$1 billion revolving credit facility. The issuance is part of the group's strategy to extend its maturity profile and to further diversify its capital structure. The Ba1 Corporate Family Rating of FME reflects (i) the group's absolute scale and strong market position as a leading global provider of dialysis products and private dialysis services; (ii) continued favorable industry growth trends, as well as the recurring nature of FME's revenues; (iii) the group's high profitability levels; and (iv) the group's good financial flexibility. However, Moody's believes FME's CFR is constrained by: (i) its relatively high adjusted financial leverage; (ii) the potential risks from the company's pure-play focus on the dialysis market, albeit mitigated by its position as a provider of both products and services; (iii) its regional concentration on the North American market, which is, however, likely to be reduced over the medium term; (iv) the company's exposure to regulatory changes, government investigations, pricing pressure from governments and healthcare organizations, or changes in the payor mix; and (v) a growth strategy that involves organic growth and acquisitions, which may be large if opportunities become available and are generally partially debt financed. The Ba2 rating for the new senior unsecured notes to be issued at the level of the financing subsidiary FMC Finance VI S.A. reflects the instrument's relative position in the capital structure and a Loss Given Default assessment of LGD 5 (80%). The notes benefit from a downstream senior guarantee by FME, and upstream guarantees by Fresenius Medical Care Holdings Inc. and Fresenius Medical Care Deutschland GmbH in line with the outstanding US$500 million senior notes due in 2017, issued by FMC Finance III S.A. in July 2007. The new notes include several key covenants that are also prevalent for the existing senior unsecured notes and include limitations to debt incurrence and a change of control clause (please refer to "Moody's Covenant Qualitative Assessment", published in December 2007). In addition to customary limitations on liens, the indenture for the proposed EUR250 million notes newly restricts the amount of the secured credit facility (around US$3.6 billion at September 30, 2009) to the greater of (i) the amount permitted under the senior credit facility as of March 31, 2006 i.e. US$4.6 billion , and (ii) 2.5x the group's EBITDA for the last four quarters (around US$2.2 billion by September 2009). The Ba2 rating for the EUR250 million senior unsecured notes is two notches below the Baa3 (LGD 2, 29%) rating for the group's US$4.6 billion senior credit facilities, which reflects the effective subordination of the senior unsecured notes relative to the sizeable proportion of secured debt ranking ahead in the capital structure. The facilities, guaranteed on a senior basis by most of the operating companies, are secured by a share pledge by most of the company's operating subsidiaries and by a springing lien on substantially all assets, which becomes effective if FME's credit ratings deteriorate below the Ba3 category. The Ba2 rating for the senior unsecured notes is one notch below FME's Ba1 CFR, which essentially reflects the relatively higher expected LGD of the senior unsecured notes (LGD 5, 80%) compared to the LGD for the Corporate Family (LGD 4, 50%), reflecting the dominant position of the senior secured credit facility in the group's capital structure. The Ba2 rating for the group's senior unsecured notes is one notch above the Ba3 rating for the group's Trust Preferreds. The Ba3 (LGD 6, 97%) rating on the US$663 million Trust Preferreds, issued at the level of Fresenius Medical Care Capital Trusts and guaranteed on a subordinated basis by Fresenius Medical Care KGaA, Fresenius Medical Care Deutschland GmbH and Fresenius Medical Care Holdings Inc., reflects their contractual subordination to the senior credit facilities as well as to the operating company obligations, including the senior unsecured notes. FME's ratings were assigned by evaluating factors Moody's believes are relevant to the credit profile of the issuer, such as (i) the business risk and competitive position of the company versus others within its industry, (ii) the capital structure and financial risk of the company, (iii) the projected performance of the company over the near to intermediate term, and (iv) management's track record and tolerance for risk. These attributes were compared against other issuers both within and outside FME's core industry and FME's ratings are believed to be comparable to those of issuers of similar credit risk. The last rating action was implemented on May 20, 2008, when Moody's upgraded FME's CFR and the Probability of Default Rating (PDR) to Ba1 from Ba2 and changed the outlook to stable from positive. Based in Bad Homburg, Germany, FME is the world's leading provider of dialysis products and services. In the first nine month of FY2009, the group generated net revenues of US$8.2 billion. GENERAL MOTORS: Talks on Opel Restructuring Plan Resume Jan. 14 --------------------------------------------------------------- Negotiations on the restructuring of General Motors Co.'s Opel/Vauxhall operations in Europe are set to resume on January 14, 2010, GM's Interim Chief Executive Officer Edward E. Whitacre said in a conference in Detroit, Michigan on January 6. As widely reported, the Works Council in Berlin, Germany called GM's restructuring plan for Opel -- proposed in December 2009 -- "unacceptable" as it contemplated to cut 9,000 jobs. Council Chief and Opel Supervisory Board Member Klaus Franz said that the job cuts were "economic nonsense" and that Opel would anyway lose 10,500 jobs by 2013 through voluntary departures and retirements. No detail of the plan has been published, reports added. During the Jan. 14 meeting, GM is expected to present its blueprint for Opel's revival, and to persuade Germany and other European Union countries to back its EUR3.3 billion or $4.75 billion plan. "Even if GM is able to mend fences in Germany, Opel's future is uncertain. The unit hasn't made a profit in a decade. And despite a deep restructuring five years ago and . . . a volley of new models, it has struggled in Europe's crowded car market," Vanessa Furhmans of The Wall Street Journal opined. GM had angered officials for backing out of the lengthy negotiations with Magna International Inc. and Savings Bank of the Russian Federation for the finalization of the sale of Opel in November 2009. Sberbank demanded compensation from GM for the failed deal to buy Opel, threatening to otherwise "demand compensation in court," The Associated Press reported in December 2009. "We think that GM's commitment went so far that they should have sealed the deal," Sberbank Chief Executive German Gref stated. Reilly: GM Europe Moving Forward In a blog posted January 8, 2010, GM Europe President Nick Reilly revealed that the Company "will be constantly and steadily moving forward, pushing the company ahead, thereby supporting GM's goal of designing, building and selling the world's best cars." "We must work fast to reduce our capacity, while maintaining productivity and quality. But reducing capacity and structural cost, both of which are critical, will not be enough. I am keenly aware that we must keep our eyes on our goal of designing and building stylish cars with exciting innovations at an affordable price," Mr. Reilly noted. will begin a new product offensive that will see a major re-vamp of our line-up. This year alone we will launch seven new products. Mr. Reilly also announced that he will be presenting "my management team soon [composed of] . . . a great mix of people familiar with the Opel/Vauxhall organization and others who can bring new, innovative opinions and approaches." About General Motors General Motors Company -- http://www.gm.com/-- is one of the world's largest automakers, tracing its roots back to 1908. With its global headquarters in Detroit, GM employs 209,000 people in every major region of the world and does business in some 140 countries. GM and its strategic partners produce cars and trucks in 34 countries, and sell and service these vehicles through these brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Opel, Vauxhall and Wuling. GM's largest national market is the United States, followed by China, Brazil, the United Kingdom, Canada, Russia and Germany. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM acquired its operations from General Motors Company, n/k/a Motors Liquidation Company, on July 10, 2009, pursuant to a sale under Section 363 of the Bankruptcy Code. Motors Liquidation or Old GM is the subject of a pending Chapter 11 reorganization case before the U.S. Bankruptcy Court for the Southern District of New York. At September 30, 2009, GM had US$107.45 billion in total assets against US$135.60 billion in total liabilities. About Motors Liquidation General Motors Corporation and three of its affiliates filed for Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case No. 09-50026). General Motors changed its name to Motors Liquidation Co. following the sale of its key assets to a company 60.8% owned by the U.S. Government. The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as the Chief Executive Officer for Motors Liquidation Company. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. Bankruptcy Creditors' Service, Inc., publishes General Motors Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Motors Corp. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) ============= I R E L A N D ============= AULDCARN LTD: Faces Liquidation; Creditors Meeting on Jan. 21 ------------------------------------------------------------- Suzanne Lynch at The Irish Times reports that Auldcarn Limited, owned by restaurateurs Simon and Christian Stokes, is facing the threat of insolvency. According to the Irish Times, a creditors' meeting has been called for the company. A liquidator is scheduled to be appointed at the meeting, which will be held on January 21 in Dublin's Harcourt Hotel, the Irish Times says. The Irish Times discloses accounts for Auldcarn for the year ended January 31, 2008 -- the most recent available -- show that the company owed creditors EUR2.7 million on that date. The accounts, which were approved by the directors on February 18, 2009, show the firm owed over EUR1 million in PRSI, PAYE, VAT and corporation tax at that time, as well as EUR670,226 to trade creditors and accruals, EUR170,554 in bank overdrafts and loans and EUR315,910 to directors' accounts, the Irish Times states. Auldcarn also owes its parent company, Mayfair Properties -- the holding company for Bang Cafe -- EUR436,755, the Irish Times notes. The Irish Times relates in a disclaimer and special report accompanying the financial statements, auditors FSG expressed concern that the company had failed to keep proper books of account. In July and August last year, FSG resigned as auditors for all three of the Stokes brothers' companies -- Missford Limited, the holding company for Residence, Mayfair Properties and Auldcarn, the Irish Times recalls. BANK OF IRELAND: Explores Options to Enhance Capital Position ------------------------------------------------------------- Quentin Fottrell at The Wall Street Journal reports that Bank of Ireland Chairman Pat Molloy said at an extraordinary general meeting on Tuesday that the bank will address ways of enhancing its capital requirements after it has transferred loans to the National Asset Management Agency. "While our regulatory capital position remains robust, we recognize that market expectations in relation to capital levels have moved on," the WSJ quoted Mr. Molloy as saying. "It's our intention to address this issue, particularly after we have further certainty on the outcome of discussions with the EU regarding our restructuring plan and the impact of NAMA." According to the WSJ, Mr. Molloy said the bank is exploring a number of internal and external options to enhance its capital position. When asked if the bank faced nationalization, he said, "We are committed to remaining independent . . . that is very much our ambition." He didn't say whether the bank would raise capital privately or through a further injection by the state, the WSJ notes. Bank of Ireland, the WSJ says, is proposing to transfer EUR16 billion in loans to NAMA with a 30% discount. The WSJ relates Mr. Molloy said the transfer of loans to NAMA will result in capital ratios at Bank of Ireland of 4.2% for equity Tier 1; 8.3% for Core Tier 1; 9.5% for Total Tier 1; and 13.2% for total capital. Headquartered in Dublin, Bank of Ireland -- http://www.bankofireland.com/-- provides a range of banking and other financial services. These include checking and deposit services, overdrafts, term loans, mortgages, business and corporate lending, international asset financing, leasing, installment credit, debt factoring, foreign exchange facilities, interest and exchange rate hedging instruments, executor, trustee, life assurance and pension and investment fund management, fund administration and custodial services and financial advisory services, including mergers and acquisitions and underwriting. The Company organizes its businesses into Retail Republic of Ireland, Bank of Ireland Life, Capital Markets, UK Financial Services and Group Centre. It has operations throughout Ireland, the United Kingdom, Europe and the United States. BOUNDTO LIMITED: Creditors Meeting Scheduled for January 20 ----------------------------------------------------------- A meeting of creditors of Boundto Limited will take place at 10:30 a.m. on January 20, 2010 at: The Stillorgan Park Hotel Stillorgan Road Co. Dublin Ireland The registered address of the company is at: 7 Eustace Street Dublin 2 Ireland COURTYARD LIFESTYLE: Creditors Meeting Scheduled for January 21 --------------------------------------------------------------- A meeting of creditors of Courtyard Lifestyle Centre Limited will take place at 4:30 p.m. on January 21, 2010 at: The Hawthorn Hotel Main Street Swords Co. Dublin Ireland The registered address of the company is at: Main Street Newtowncunnigham Lifford Co. Donegal Ireland GBM CITYSIDE: Creditors Meeting Scheduled for January 27 -------------------------------------------------------- A meeting of creditors of GBM Cityside Limited will take place at 11:00 a.m. on January 27, 2010 at: Springhill Court Hotel Waterford Road Kilkenny Ireland The registered address of the company is at: Davis Road Clonmel Co. Tipperay Ireland GBM MOTORS: Creditors Meeting Scheduled for January 27 ------------------------------------------------------ A meeting of creditors of GBM Motors Limited will take place at 12:30 p.m. on January 27, 2010 at: Court Hotel Waterford Road Kilkenny Ireland The registered address of the company is at: Davis Road Clonmel Co. Tipperay Ireland HOMEPLAN INTERIORS: Creditors Meeting Scheduled for January 20 -------------------------------------------------------------- A meeting of creditors of Homeplan Interiors Limited will take place at 9:30 a.m. on January 20, 2010 at: Four Seasons Hotel Carlingford Co. Louth Ireland The registered address of the company is at: Cement Road Drogheda Co. Louth Ireland JR CAMS: Creditors Meeting Scheduled for January 26 --------------------------------------------------- A meeting of creditors of JR Cams Limited T/A Purple will take place at 9:00 a.m. on January 26, 2010 at: The Regency Hotel Swords Road Whitehall Dublin 9 Ireland The registered address of the company is at: 21 The Pavillions Shopping Centre Swords Co. Dublin Ireland KEVIN ARUNDEL: Creditors Meeting Scheduled for January 26 --------------------------------------------------------- A meeting of creditors of Kevin Arundel Restaurants.com Limited will take place at 11:00 a.m. on January 26, 2010 at Mount Herbert Hotel. The registered address of the company is at: 52 St. Laurences Road Chapelizod Dublin 20 Ireland LEOVILLE LTD: Rent Talks Fail; Liquidator Appointed --------------------------------------------------- InsolvencyJournal.ie reports that a liquidator has been appointed to Leoville Limited, the firm running Kilkea Castle, after a period in examinership failed to settle a dispute about rent. The report recalls Leoville entered examinership in November and emerged from court protection in the week before Christmas. It had been seeking a reduction in the level of rent paid to its landlord Arnosford Ltd., but both parties failed to reach agreement on this issue and a creditors meeting was called to wind up the firm, the report relates. Joe Moreau of accountancy firm Byrne Moreau Connell was appointed liquidator at the creditors' meeting on Jan. 4, the report discloses. Leoville, the report says, had liabilities of EUR1.5 million and its directors had supported it with loans of more than EUR889,000. The losses were attributed to the decision to open a 45-bedroom lodge complex in the adjoining golf course and a "dramatic reduction" in international tourism, the report notes. Kilkea castle in Co. Kildare was built in 1181 and was home to the 11thEarl of Kildare, Gerald Fitzgerald and Silken Thomas. According to the report, the four-star hotel had been trading as a hotel until 2006, but the hotel had suffered trading losses in recent years as the economic downturn hit the tourism business. O'DWYER & SONS: Creditors Meeting Scheduled for January 25 ---------------------------------------------------------- A meeting of creditors of O'Dwyer & Sons (Contracts) Limited will take place at 10:30 a.m. on January 25, 2010 at: The Clonmel Park Hotel Clonmel Co. Tipperary Ireland The registered address of the company is at: C/o Noonan O'Cinneide and Company St. Michael Street Tipperary Ireland PJT INSURANCE: Files Winding-Up Petition, Hearing Set January 25 ---------------------------------------------------------------- PJT Insurance Services Limited has filed a winding-up petition. The company's solicitor is O'Hare O'Connor Walshe. The winding-up petition will be heard on January 25, 2010. The registered address of the company is at: 17 Main Street Swords Co. Dublin Ireland WYNNWALS LIMITED: Creditors Meeting Scheduled for January 21 ------------------------------------------------------------ A meeting of creditors of Wynnwals Limited will take place at 9:30 a.m. on January 21, 2010 at: The Harcourt Hotel 60 Harcourt Street Dublin 2 Ireland The registered address of the company is at: Site 1 Unit 513 Grants Rise Greenogue Industrial Estate Rathcoole Co. Dublin Ireland ========= I T A L Y ========= MARIELLA BURANI: Prosecutors Seek Bankruptcy for Holding Company ---------------------------------------------------------------- Manuela D'Alessandro at Reuters, citing judicial sources, reports that Milan prosecutors have filed a bankruptcy request for Burani Designer Holding N.V., a holding company that indirectly controls Mariella Burani Fashion Group SpA. According to Reuters, prosecutors said BDH has debt of EUR20 million, of which about EUR15 million is owed to banks, and about EUR5 million to MBFG. Reuters relates MBFG Chairman Walter Burani said no request for bankruptcy proceedings had arrived at the holding. As reported by the Troubled Company Reporter-Europe on Jan. 11, 2010, Bloomberg News, citing daily MF, said that MBFG wants to hire Franco Tato to advise on a debt restructuring after Mediobanca SpA withdrew from the role. According to Bloomberg, Burani on Jan. 3 said Mediobanca withdrew as an adviser, citing Burani's failure to set up a EUR50-million (US$72 million) escrow account. On Jan. 4, 2010, the Troubled Company Reporter-Europe, citing Bloomberg News, reported that Burani was in talks with Gulf Finance & Investment to set the escrow account. Bloomberg disclosed Burani's biggest banks had demanded that the Burani family prove that it had EUR50 million available for a planned capital increase as part of an agreement to reorganize the company's debt. Mariella Burani Fashion Group SpA -- http://www.mariellaburani.it/ -- is an Italy-based company, operating in the fashion market. It designs, produces and distributes a range of apparel, knitwear, leather accessories, jewelry and footwear. The Company divides its operation into four divisions: Clothing Division, Leather Division, Digital Fashion and Fashion Jewellery. The Company's brand portfolio comprises the Company's own brands, such as Mariella Burani, Rene Lezard, Amuleti J, Blossom Burani, Ter et Bantine, Braccialini, FrancescoBiasia, Baldinini, Coccinelle, Sebastian, Facco Gioielli, Valente, Rosato and Calgaro, among others, and the licensed brands: Vivienne Westwood (Anglomania), Emmanuel Ungaro (Fuchsia), Alviero Martini, Thierry Mugler (Mugler), Patrizia Pepe (bimbo), Missoni, Warner Bros, Miss Sixty, Sweet Years, Gherardini e John Galliano, among others. Among the subsidiaries there are: Mariella Burani Retail Srl, Antichi Pelletteri SpA, Coccinelle Store France SA and Mandarina Duck Gmbh. =================== K A Z A K H S T A N =================== DAL-DEL OIL: Creditors Must File Claims by January 27 ----------------------------------------------------- LLP Dal-Del Oil is currently undergoing liquidation. Creditors have until January 27, 2010, to submit proofs of claim to: Micro District 12, 66-42 Aktobe Kazakhstan EXPRESS ASIA 7: Creditors Must File Claims by February 2 -------------------------------------------------------- Creditors of LLP Express Asia 7 have until February 2, 2010, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of South Kazakhstan Tynybaev Str. 42 Shymkent South Kazakhstan Kazakhstan The court commenced bankruptcy proceedings against the company on October 16, 2009. KAZ STROY-5: Creditors Must File Claims by February 2 ----------------------------------------------------- Creditors of LLP Kaz Stroy-5 have until February 2, 2010, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of South Kazakhstan Tynybaev Str. 42 Shymkent South Kazakhstan Kazakhstan The court commenced bankruptcy proceedings against the company on October 16, 2009. KKM HOLDING: Creditors Must File Claims by January 27 ----------------------------------------------------- JSC Kkm Holding is currently undergoing liquidation. Creditors have until January 27, 2010, to submit proofs of claim to: Dostyk Ave. 172 Almaty Kazakhstan PREDGORNENSKAYA NEFTEBAZA: Creditors Must File Claims by Feb. 2 --------------------------------------------------------------- Creditors of LLP Predgornenskaya Neftebaza have until February 2, 2010, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of East Kazakhstan Bajov Str. 2 Ust- Kamenogorsk East Kazakhstan Kazakhstan The court commenced bankruptcy proceedings against the company on November 13, 2009. =================== K Y R G Y Z S T A N =================== GLOBAL TRANS: Creditors Must File Claims by February 2 ------------------------------------------------------ LLC Global Trans is currently undergoing liquidation. Creditors have until February 2, 2010, to submit proofs of claim to: Repin Str. 265 Bishkek Kyrgyzstan Tel: (+996 312) 31-61-77 INTERNATIONAL TRADE: Creditors Must File Claims by February 2 ------------------------------------------------------------- LLC International Trade Development Company is currently undergoing liquidation. Creditors have until February 2, 2010, to submit proofs of claim to: Vostochnaya Promzona Kant Chui Kyrgyzstan Tel: (+996 3132) 5-79-04 =================== L U X E M B O U R G =================== CIRSA FUNDING: Moody's Assigns 'B3' Rating on Senior Secured Notes ------------------------------------------------------------------ Moody's Investors Service has assigned a provisional (P)B3 instrument rating to the new 9.25% senior secured notes due 2020 to be issued by Cirsa Funding Luxembourg S.A., a wholly-owned subsidiary of Cirsa Gaming Corporation S.A. This follows Cirsa's announcement on January 7 that it was launching an offer to exchange existing EUR230 million of senior unsecured bonds due 2012 and EUR270 million senior unsecured bonds due 2014 for new senior secured notes due 2020. At the same time, Moody's has placed ratings on the existing senior unsecured bonds on review for possible downgrade while the outcome of the exchange and final mix of securities is pending and Moody's determines the structural implications of the exchange. Cirsa's corporate family rating and probability of default rating remain unchanged at this stage. Upon a successful conclusion of the transaction, Moody's would expect to affirm Cirsa's CFR and PDR and would, in all probability, expect to downgrade existing instrument ratings by one notch. The outlook on the ratings could eventually be stabilized if, among other things, liquidity and operating performance concerns are sufficiently addressed. Moody's notes that acceptance of the exchange offer involves agreement to a consent solicitation that eliminates substantially all of the restrictive covenants and non-payment events of default in the existing 2012 and 2014 indentures: upon a successful exchange (over 50.1% acceptances under each of the 2012 and 2014 bonds), non-consenting bondholders will only be indirectly protected by the terms of the new 2020 bonds, although they will still benefit from their respective existing guarantee packages. The ratings affected by the rating action are: -- the B2 rating of the EUR270 million 8.75% senior notes due 2014 issued by Cirsa Finance Luxembourg S.A. placed on review for downgrade -- the B3 rating of the EUR230 million 7.875% senior notes due 2012 issued by Cirsa Capital Luxembourg S.A. placed on review for downgrade -- the (P) B3 rating of the new 9.25% senior secured notes due 2020 to be issued by Cirsa Funding Luxembourg S.A. provisionally assigned The last rating action was implemented on April 7, 2009, when Moody's changed the outlook on Cirsa's ratings to negative from stable. Headquartered in Terrassa, Spain, Cirsa is a leading Spanish gaming company with substantial operations in Italy and Latin America. In the nine months to end-September 2009, Cirsa reported gross operating revenues of c. EUR1.2 billion and EBITDA of EUR157 million. CIRSA FUNDING: S&P Assigns 'B+' Rating on EUR600 Mil. Bonds ----------------------------------------------------------- Standard & Poor's Ratings Services said that it has assigned its 'B+' long-term issue rating to the proposed up to EUR600 million secured bonds maturing in January 2020 to be issued by Cirsa Funding Luxembourg S.A., a newly formed, fully owned finance subsidiary of Spain-based Cirsa Gaming Corp. S.A.(B+/Stable/--). At the same time, Standard & Poor's has assigned a recovery rating of '4' to this debt, reflecting its expectations of average (30%- 50%) recovery for creditors in the event of a payment default. The issue rating is the same as the corporate credit rating on Cirsa. S&P understands that the proposed voluntary bond exchange offer and associated consent solicitation to amend the indentures of the existing unsecured bonds will only proceed if a majority of the 2012 and 2014 bondholders accept both the offer and the consent solicitation. S&P would withdraw the rating on the new debt in the event of noncompletion of the offer. The issue ratings on the existing senior unsecured EUR500 million bonds -- comprising EUR230 million bonds due 2012 issued by Cirsa Capital Luxembourg S.A. and EUR270 million bonds due 2014 issued by Cirsa Finance Luxembourg S.A. -- are unchanged at 'B+', in line with the corporate credit rating on Cirsa. The recovery rating on these issues is also '4', indicating S&P's expectation of average (30%-50%) recovery in the event of payment default. Cirsa plans to exchange the EUR600 million new bonds for the existing EUR500 million bonds and, with the balance, repay existing short-term bank debt and fund transaction costs. S&P understands that the proposed 2020 bonds will be secured by pledges over 85.71% of the shares of Cirsa International Gaming Corporation, S.A. and 85.71% of the shares of Cirsa Slots Corporation, S.L. Moreover, they will benefit from some operating-company guarantees representing 45% of Cirsa's consolidated EBITDA for the 12 months ended Sept. 30, 2009. The guarantees consist of the same guarantees as those for the 2012 bonds (except for Juegomatic and Casino la Toja, which are not fully owned by Cirsa), as well as some additional ones from Cirsa's Italian and Panamanian subsidiaries. The 2014 bonds benefit from operating-company guarantees representing 48% of Cirsa's consolidated EBITDA for the 12 months ended Sept. 30, 2009. These guarantees consist of the same guarantees as those for the 2012 bonds, and additional guarantees from the Argentinean subsidiary (representing 13% of Cirsa's EBITDA for the 12 months ended Sept. 30, 2009). "We see some risk that the differences between the different bonds' guarantors and security packages could complicate enforcement or restructuring efforts," said Standard & Poor's recovery analyst Florence Devevey. For the purpose of its analysis, however, S&P considers the proposed secured bonds to effectively rank pari passu with the existing unsecured bonds. S&P views the security package of the proposed bonds as weak, and have, consequently, attributed more weight in S&P's analysis to the operating company guarantees. In addition, the reliance on Latin American assets gives rise to additional valuation and insolvency regime uncertainties in its opinion. The new EUR25 million revolving credit facility, which S&P understands should be borrowed by parent company Cirsa, mature in April 2012 (and can be extended to 2014 under certain conditions), and be undrawn at the close of the bond issuance. It is to be secured by pledges over 14.29% of the shares of Cirsa International Gaming Corporation, S.A. and 14.29% of the shares of Cirsa Slots Corporation, S.L., and is to benefit from operating- company guarantees similar to those of the proposed bond issue. As per the terms of the intercreditor agreement among the various parties involved in Cirsa's financing, the RCF will rank ahead of all of the bonds on enforcement. The proposed bonds have incurrence-based covenants, in particular a 2.25x fixed-charge coverage ratio limit for additional debt incurrence (versus 2.5x and 3.0x in the existing bond indentures for the 2012 and 2014 bonds, respectively). However, these covenants will not prevent Cirsa from raising, in particular, up to EUR100 million of additional credit facilities, up to EUR25 million of additional capital leases, up to EUR50 million of indebtedness in permitted joint ventures, or a general basket of up to EUR75 million. Concurrently with the bond exchange offer, Cirsa has launched a consent solicitation process to amend the indentures of its existing bonds. The consent solicitation requires majority agreement from bondholders of both existing issues. The effect of the proposals outlined would be to remove a number of important structural protection measures, including limitations on group and restricted-subsidiary indebtedness, liens, asset sales, sale and leasebacks, and dividends, as well as remove protective measures requiring the issuer to repurchase the bonds at 101% of principal in the event of a future change of control. Recovery Analysis Given Cirsa's leading market positions, S&P has valued it on a going-concern basis. S&P deem this valuation method as more appropriate than a liquidation valuation given the high regulatory barriers to entry and the business' cash-generative characteristics. S&P has simulated a default in 2011, at which point S&P forecast that EBITDA will have declined by 45% since year-end 2008, to about EUR105 million. S&P has valued the business using a combination of discounted cash flow and market multiple valuations to incorporate S&P's view on both the group's stressed performance and sector dynamics. Consequently, S&P estimate Cirsa's enterprise value at the simulated point of default to be about EUR560 million, which corresponds to a blended enterprise-value-to-EBITDA multiple of 5.3x. "We note that the material exposure to Latin American countries -- about 40% of Cirsa's 2008 consolidated EBITDA -- could make S&P's valuation estimate volatile and complicate enforcement proceedings over the related assets," said Ms. Devevey. S&P estimate recovery prospects for the pari passu bondholders in the 30%-50% range (hence its recovery rating of '4'), after considering other pari passu obligations (in particular, the bilateral bank lines sitting at the level of various bonds' guarantors) and deducting priority liabilities of about EUR250 million; the latter consist of enforcement costs and priority debt (in particular, the bilateral bank lines sitting at the operating companies that are not guarantors, as well as the super senior RCF). Ratings List Not Rated Action Cirsa Gaming Corp. S.A. Corporate credit rating B+/Stable/-- Cirsa Finance Luxembourg S.A./Cirsa Capital Luxembourg S.A. Senior unsecured * B+ Recovery rating 4 Ratings Assigned Cirsa Funding Luxembourg S.A. Senior secured* B+ Recovery rating 4 * Guaranteed by Cirsa Gaming Corp. S.A. ORCO PROPERTY: Investor Files Suit Over Handling of Bankruptcy -------------------------------------------------------------- Stephanie Bodoni at Bloomberg News reports that Orco Property Group SA's British Virgin Islands-based investor Carilo Ltd. on Jan. 8 filed a criminal lawsuit in Luxembourg challenging the company's handling of its French bankruptcy case. Orco, which has most of its business in central Europe, "manifestly" tried to deprive shareholders of their rights by entering into the French safeguard process, Carilo said in the 20-page lawsuit, according to Bloomberg. "The management of Orco Property Group gave in to a number of practices" after the company's financial problems worsened, "whose legality is doubtful and with the sole goal to continue drawing personal profits from the funds while the market conditions didn't allow this anymore." Bloomberg relates the shareholder accused the company of trying to escape Luxembourg law "at any price" and of a "desire to create uncertainty as to what law should govern in this case." Bloomberg recalls Luxembourg-based Orco won a six-month court protection in Paris in March 2009 to allow the company to restore its financial health while blocking any repayment obligations to creditors. The so-called safeguard process, known in France as sauvegarde, has been extended once for Orco, Bloomberg notes. Orco Property Group SA -- http://www.orcogroup.com/-- is a Luxembourg-based real estate company, specializing in the development, rental and management of properties in Central and Eastern Europe. Through its fully consolidated subsidiaries, Orco Property Group SA operates in several countries, including the Czech Republic, Slovakia, Germany, Hungary, Poland, Croatia and Russia. The Company rents and manages real estate and hotels properties composed of office buildings, apartments with services, luxury hotels and hotel residences; it also develops real estate projects as promoter. =========== P O L A N D =========== TOWARZYSTWO UBEZPIECZEN: Fitch Puts 'BB' Rating on Evolving Watch ----------------------------------------------------------------- Fitch Ratings has placed the respective 'BB' Insurer Financial Strength ratings of Towarzystwo Ubezpieczen EUROPA SA and Towarzystwo Ubezpieczen na Zycie EUROPA SA, its wholly-owned subsidiary, on Rating Watch Evolving. Fitch has simultaneously placed both companies' National IFS ratings of 'BBB(pol)' on RWE. The two companies form the Polish-based EUROPA Group. The RWE reflects Fitch's rating action on Getin Noble Bank, a related bank in which Europa has a high concentration of its invested assets. The agency assigned GNB a Long-term Issuer Default Rating of 'BB' and placed it on RWE on January 7, 2009. Fitch previously noted the strong ties that existed between Europa and two related banks, Getin Bank and Noble bank, which have now merged into the newly-created entity GNB. The agency believes that following the merger, these strong ties will remain, in particular through the high level of exposure of Europa's investment portfolio to GNB (over 70% of total invested assets), GNB's minority ownership in EUROPA, and EUROPA's high reliance on GNB for distribution of its products. The RWE will be resolved once Fitch has resolved the RWE with respect to GNB. While the concentration of Europa's investment portfolio in GNB assets remains at the current high levels, EUROPA's ratings will remain strongly linked to GNB's rating. Europa Group is 20% owned by GNB, with the majority of the remainder owned by Getin Holding SA, a Polish financial group quoted on the Warsaw Stock Exchange. Polish businessman Leszek Czarnecki holds 55.54% of Getin Holding SA. Europa Group specializes in insurance products targeted at the Polish financial sector (bancassurance), with a particular focus on mortgage loan insurance and life savings products. =========== R U S S I A =========== ROSAVIA: Aeroflot Officials to Discuss Possible Acquisition ----------------------------------------------------------- Anastasia Ustinova at Bloomberg News reports that Russia may combine state aviation assets under OAO Aeroflot, the country's largest airline, as the government seeks to help the industry recover from the worst economic slump on record. Aeroflot officials will discuss the possible acquisition of Rosavia, an airline group controlled by Russian Technologies Corp., with First Deputy Prime Minister Igor Shuvalov on Jan. 30, Bloomberg says citing Valery Kartavtsev, a spokesman for the state company. Acquiring Rosavia would allow Aeroflot "to strengthen its leadership on the market significantly," VTB Capital analysts led by Elena Sakhnova wrote in a research note Monday, according to Bloomberg. Still, "taking over Rosavia with its large debt burden and near-bankrupt small airlines does not sound in the company's and shareholders' best interests." Bloomberg recalls Rosavia was created out of regional carriers to compete with Aeroflot in 2008 as rising fuel prices cut into profits and the economic crisis damped sales. UC RUSAL: Lenders Support Pay Package for CEO Oleg Deripaska ------------------------------------------------------------ John Duce at Bloomberg News reports that United Co. Rusal Ltd. said lenders supported a pay package for Chief Executive Officer Oleg Deripaska that includes an annual base salary of US$10 million. Bloomberg relates Oleg Mukhamedshin, deputy chief executive officer of capital markets, said at a press briefing in Hong Kong Monday lenders want to retain Mr. Deripaska. According to Bloomberg, the basic annual pay for Mr. Deripaska, 41, is about five times more than the comparable compensation for the CEO of BHP Billiton Ltd., the world's largest mining company. IPO As reported by the Troubled Company Reporter-Europe on Jan. 4, 2010, Rusal plans to to raise as much as HK$20.1 billion (US$2.6 billion) in a Hong Kong initial public offering. Citing a statement filed to the city's stock exchange Dec. 31, Bloomberg disclosed the company, will sell 1.61 billion shares at HK$9.10 to HK$12.50 each. According to Bloomberg, it is offering a stake of about 10.6% in the form of shares and global depositary receipts. Bloomberg said the offering, delayed by regulators at least twice on concern about the company's debt, would give Rusal a market value of as much as US$24.4 billion, similar to Aluminum Corp. of China Ltd. "The group intends to use all the net proceeds received from the global offering to immediately reduce outstanding debt and to satisfy other obligations to its creditors," the company said in the statement, according to Bloomberg. Bloomberg recalled Rusal's debt almost doubled last year after buying a quarter of OAO GMK Norilsk Nickel before commodity prices collapsed. It reached agreements with creditors earlier this year to restructure US$16.8 billion of obligations, cutting debt to US$14.9 billion, Bloomberg recounted. About United Co. Rusal Headquartered in Moscow, Russia, United Co. RUSAL -- http://www.rusal.com/-- is among the world's top aluminum producers, along with Rio Tinto Alcan and Alcoa. Formed in 2000 from various parts of the old Soviet state apparatus, RUSAL produces about 4 million tons of aluminum, 11 million tons of alumina, and 6 million tons of bauxite. Its aluminum business include packaging and foil operations in addition to a network of smelters. Those Soviet spare parts were significantly augmented in 2007 when the company merged with fellow Russian aluminum producer Sual and Glencore's alumina unit. RUSAL is majority owned by Board member Oleg Deripaska, who had owned the company completely prior to the merger. =========== S W E D E N =========== GENERAL MOTORS: To Continue with Saab Wind-Down Process ------------------------------------------------------- Jeff Green and Ola Kinnander at Bloomberg News report that General Motors Co. said that none of the offers it has received so far for Saab presents an attractive alternative to shutting the unit and that it will continue the process of closing the Swedish carmaker. According to Bloomberg, GM Vice Chairman Bob Lutz said that negotiations stemming from some Saab offers "might" be enough to reverse Detroit-based GM's decision to close the Trollhaettan, Sweden-based carmaker. He said GM still hopes it will find a buyer who makes a good enough offer, Bloomberg notes. "The wind-down process can be reversed at any point if somebody comes in with an offer that we feel would be genuinely better than the wind-down alternative," Bloomberg quoted Mr. Lutz as saying. Bloomberg recalls Luxembourg-based private-equity firm Genii Capital submitted a cash offer for Saab on Jan. 7. Dutch supercar maker Spyker Cars NV also submitted an offer, a revision of its Dec. 20 bid, Blomberg recounts. Other bidders include a group headed by Jan Nygren, a former Swedish deputy prime minister, and an investor group headed by Merbanco Inc. President Chris Johnston, Bloomberg discloses. Bloomberg relates Spyker Cars NV Chief Executive Officer Victor Muller said GM's statement that it will continue to work on shutting Saab while evaluating bids is "no deviation" from its earlier position. About General Motors General Motors Company -- http://www.gm.com/-- is one of the world's largest automakers, tracing its roots back to 1908. With its global headquarters in Detroit, GM employs 209,000 people in every major region of the world and does business in some 140 countries. GM and its strategic partners produce cars and trucks in 34 countries, and sell and service these vehicles through these brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Opel, Vauxhall and Wuling. GM's largest national market is the United States, followed by China, Brazil, the United Kingdom, Canada, Russia and Germany. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM acquired its operations from General Motors Company, n/k/a Motors Liquidation Company, on July 10, 2009, pursuant to a sale under Section 363 of the Bankruptcy Code. Motors Liquidation or Old GM is the subject of a pending Chapter 11 reorganization case before the U.S. Bankruptcy Court for the Southern District of New York. At September 30, 2009, GM had US$107.45 billion in total assets against US$135.60 billion in total liabilities. About Motors Liquidation General Motors Corporation and three of its affiliates filed for Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case No. 09-50026). General Motors changed its name to Motors Liquidation Co. following the sale of its key assets to a company 60.8% owned by the U.S. Government. The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as the Chief Executive Officer for Motors Liquidation Company. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. Bankruptcy Creditors' Service, Inc., publishes General Motors Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Motors Corp. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) ============= U K R A I N E ============= NAFTOGAZ OF UKRAINE: On Brink of Default, Presidential Envoy Says ----------------------------------------------------------------- RIA Novosti reports that Bohdan Sokolovskiy, the Ukrainian president's energy security envoy, said on Monday that there is a threat of a default by Naftogaz in 2010. According to RIA Novosti, Mr. Sokolovskiy said Naftogaz would have to pay around US$10 billion for Russian natural gas to be supplied to the ex-Soviet republic in 2010 while the Ukrainian energy company's budget deficit this year was expected at US$4 billion, even despite reduced gas imports from Russia. About NJSC Naftogaz of Ukraine Headquartered in Kiev, Ukraine, NJSC Naftogaz of Ukraine -- http://www.naftogaz.com/-- is a vertically integrated oil and gas company engaged in full cycle of operations in gas and oil field exploration and development, production and exploratory drilling, gas and oil transport and storage, supply of natural gas and LPG to consumers. * * * As reported by the Troubled Company Reporter-Europe on Nov. 18, 2009, Fitch Ratings affirmed NJSC Naftogaz of Ukraines' long-term foreign currency and local currency issuer default ratings at 'CCC'. The outlook is negative. =========================== U N I T E D K I N G D O M =========================== LEHMAN BROTHERS: Pickens' BP Capital Sells US$42M of Claims to RBS ------------------------------------------------------------------ Two people familiar with the matter told Bloomberg News last week that billionaire energy investor T. Boone Pickens sold US$42 million of claims he held against Lehman Brothers Holdings Inc. to Royal Bank of Scotland Plc. The sources told Bloomberg the claims were held by Mr. Pickens, 81, and his BP Capital LLC. According to Bloomberg, the sources asked not to be identified because the transaction is private. Bloomberg says Jay Rosser, a spokesman for BP Capital based in Dallas, confirmed the claims had been sold. Bloomberg notes that creditors have made about $830 billion in claims against Lehman. About RBS The Royal Bank of Scotland Group plc (NYSE:RBS) -- http://www.rbs.com/-- is a holding company of The Royal Bank of Scotland plc (Royal Bank) and National Westminster Bank Plc (NatWest), which are United Kingdom-based clearing banks. The company's activities are organized in six business divisions: Corporate Markets (comprising Global Banking and Markets and United Kingdom Corporate Banking), Retail Markets (comprising Retail and Wealth Management), Ulster Bank, Citizens, RBS Insurance and Manufacturing. On October 17, 2007, RFS Holdings B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V., Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and controlled by RBS, completed the acquisition of ABN AMRO Holding N.V. (ABN AMRO). In July 2008, the company disposed its entire interest in Global Voice Group Ltd. * * * As reported by the Troubled Company Reporter-Europe on Dec. 22, 2009, Fitch Ratings upgraded The Royal Bank of Scotland Group's (RBS Group) and The Royal Bank of Scotland's Individual Ratings to 'D/E' from 'E' and removed the Rating Watch Positive. The upgrade of the Individual Ratings reflects improvements in the group's capital combined with some progress in restructuring the balance sheet. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) MANCHESTER UNITED: Confirms Bond Issue, Incurs GBP35M Hedging Loss ------------------------------------------------------------------ Roger Blitz and Anousha Sakoui at The Financial Times report that Manchester United confirmed it was launching an issue of seven- year bonds to raise GBP500 million to restructure its finances. According to the FT, the new issue of bonds, which are understood to be secured against most of its assets, will replace GBP400 million of senior ranking debt and GBP100 million of second ranking loans. The FT says the bond issue will give the family of Malcolm Glazer, the US sports franchise owner who bought the club in 2005 in a GBP790 million deal, greater flexibility over its finances. The restructuring will enable the Glazer family to repay so-called payment-in-kind notes -- a debt instrument that allows borrowers to roll over cash interest payments -- taken out to buy the club, the FT states. The amount owed under the PIK notes, which carry an interest rate of 14.25%, has risen to GBP202 million, the FT notes. Hedging Loss Manchester United, the FT discloses, had incurred losses of GBP35 million on derivative trades designed to hedge against rising interest rates, more than twice as much as it spent on an individual player in the last transfer season. The FT relates the club made net interest payments of GBP41.9 million to service its GBP500 million of senior loans. Profit The GBP80 million sale of Cristiano Ronaldo to Real Madrid in summer 2009 helped the club bounce back from a pre-tax loss of GBP21.4 million in 2008 to a GBP48.2 million profit in 2009, the FT notes. Manchester United Limited -- http://www.manutd.com/-- operates Manchester United Football Club, one of the most popular and successful soccer teams in the world. Man U is currently the top soccer team the UK's Premier League, boasting 18 championships and 11 FA Cup titles. Manchester United generates revenue primarily through ticket sales at venerable Old Trafford stadium, as well as through broadcasting rights and sales of Red Devils merchandise. Man U was founded as Newton Heath in 1878 before changing its name in 1902. It is owned by American tycoon Malcolm Glazer, whose holdings include the Tampa Bay Buccaneers NFL team and a majority stake in Zapata. NORTHERN ROCK: Moody's Affirms 'Ca' Ratings on Tier 2 Notes ----------------------------------------------------------- Moody's Investors Service upgraded the senior unsecured debt and deposit ratings of Northern Rock Asset Management (previously Northern Rock plc) to Aa3 from A2 following the completion of the restructuring of Northern Rock plc on January 1, 2010, into two separate entities: Northern Rock plc and NRAM. The outlook on the senior ratings was changed from developing to stable and the short-term ratings were affirmed at P-1. In the same rating action, the Ca ratings of lower tier 2 subordinated instruments were affirmed with a negative outlook, while the junior subordinated debt ratings were downgraded from Ca to C with a stable outlook; the preference share ratings of C were affirmed with a stable outlook. The E bank financial strength rating previously assigned to Northern Rock plc was withdrawn as NRAM will not be a licensed deposit taker and will not engage in lending activities. Moody's has not assigned ratings to the "new bank" Northern Rock plc. The restructuring of the old Northern Rock plc to which Moody's ratings were previously assigned has created two separate organizations: a new savings and mortgage bank which will retain the name Northern Rock plc and will hold GBP10 billion of mortgages and GBP19 billion of savings transferred from the old bank; and NRAM which will hold all the unsecured liabilities of the old Northern Rock, the government loan and subordinated debts as well as the remaining mortgage book not transferred to Northern Rock plc (the new bank). NRAM will also retain the interest in those mortgages allocated to the Granite securitization and covered bond programs (approximately GBP50 billion). Moody's said that the key drivers for the upgrade of the senior unsecured long term ratings of NRAM were: 1) the final approval by the European Commission of the UK government guarantee which covers all unsubordinated and unsecured wholesale debt and deposits of NRAM, 2) the 100% government ownership of NRAM, and 3) the substantial liquidity provided by the government for the payment of senior obligations. Commenting on the rating action, Marjan Riggi, Senior Credit Officer at Moody's said, "that the guarantee in its final form lacks some of the criteria for Moody's to consider it a full credit substitution vis-�-vis the Aaa rating of the UK government; for example, the guarantee does not explicitly mention that it is an "unconditional and irrevocable" obligation of the UK government which precludes the guaranteed senior debt from being rated at the same level as the UK government. Nonetheless, Moody's believe that the senior creditors benefit from a very high level of support from the UK government ownership of NRAM as well as Moody's understanding regarding the ample liquidity provided to them through a credit facility by the Bank of England for all senior obligations. The ratings also take into account the risk that NRAM may be sold at some point in the future to a third party and that the form of the guarantee could be subject to change by legislation as it is written under a "public law" contract--though Moody's believe that while NRAM is in government ownership this risk is minimal. Moody's further commented that the change of outlook to stable from developing reflects the final approval of the government guarantee for senior unsecured obligations of NRAM and their direct link to the stable outlook on the UK government debt. The downgrade of junior subordinated debt to C incorporate Moody's expectation of lower recoveries for these instruments relative to lower tier 2 securities because their coupons have been suspended indefinitely and the fact that they are fully loss absorbing while NRAM is in receipt of State Aid. Specifically, Moody's note that the assets remaining to satisfy these obligations include the higher risk mortgages remaining in NRAM with substantial arrears and for which Moody's expect higher losses than previously estimated for the old Northern Rock. This should further limit the amounts available to satisfy these subordinated obligations after payments due to all other secured and unsecured creditors. Moody's last rating action on Northern Rock was on March 31, 2009 when the BFSR was downgraded to E from E+ and the senior long term and short term ratings of A2/P-1 were affirmed. These specific entities or debt categories are not covered by this press release: * Covered bonds issued by Northern Rock * Mortgage-backed securities issued by the Granite Master Trust Headquartered in Newcastle-upon-Tyne, Northern Rock (Asset Management) had total assets of GBP50 billion as of January 1, 2010. ROYAL BANK: Buys BP Capital's US$42MM Claim in Lehman Brothers -------------------------------------------------------------- Two people familiar with the matter told Bloomberg News last week that billionaire energy investor T. Boone Pickens sold US$42 million of claims he held against Lehman Brothers Holdings Inc. to Royal Bank of Scotland Plc. The sources told Bloomberg the claims were held by Mr. Pickens, 81, and his BP Capital LLC. According to Bloomberg, the sources asked not to be identified because the transaction is private. Bloomberg says Jay Rosser, a spokesman for BP Capital based in Dallas, confirmed the claims had been sold. Bloomberg notes that creditors have made about US$830 billion in claims against Lehman. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) About RBS The Royal Bank of Scotland Group plc (NYSE:RBS) -- http://www.rbs.com/-- is a holding company of The Royal Bank of Scotland plc (Royal Bank) and National Westminster Bank Plc (NatWest), which are United Kingdom-based clearing banks. The company's activities are organized in six business divisions: Corporate Markets (comprising Global Banking and Markets and United Kingdom Corporate Banking), Retail Markets (comprising Retail and Wealth Management), Ulster Bank, Citizens, RBS Insurance and Manufacturing. On October 17, 2007, RFS Holdings B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V., Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and controlled by RBS, completed the acquisition of ABN AMRO Holding N.V. (ABN AMRO). In July 2008, the company disposed its entire interest in Global Voice Group Ltd. * * * As reported by the Troubled Company Reporter-Europe on Dec. 22, 2009, Fitch Ratings upgraded The Royal Bank of Scotland Group's (RBS Group) and The Royal Bank of Scotland's Individual Ratings to 'D/E' from 'E' and removed the Rating Watch Positive. The upgrade of the Individual Ratings reflects improvements in the group's capital combined with some progress in restructuring the balance sheet. VIRGIN MEDIA: To Issue US$1 Billion in Secured Bonds ---------------------------------------------------- Ben Fenton and Anousha Sakoui at The Financial Times report that Virgin Media is to issue US$1 billion (GBP629 million, EUR689 million) in secured bonds as the first step in the refinancing of its main bank debt on terms similar to its existing credit. According to the FT, people with knowledge of the negotiations said the issue is expected to be arranged by JP Morgan and Goldman Sachs and has an eight-year maturity. The FT says it will offer greater flexibility to the company, which was facing repaying GBP3.1 billion in 2012. Virgin Media has a total debt burden of more than GBP4 billion, the FT notes. The money will be used to repay its senior bank debt, which in turn carries covenants and restrictions that bonds do not, the FT discloses. The FT relates the person familiar with the move said that Virgin Media wanted to get terms as close as possible to its existing bank debt while simultaneously putting off the time when it had to repay its creditors. The bonds, secured on Virgin Media's assets, would stand in line at an equal point with the bank debt they replaced in terms of repayment in the event of the company's default, the FT states. The FT recalls Virgin Media became a heavily-indebted company because of the level of its investment in high-speed broadband as it tried to compete with the other pay-television giant of the UK, British Sky Broadcasting. About Virgin Media Headquartered in London, England, Virgin Media Inc. (NASDAQ:VMED)(LSE:VMED) -- http://www.virginmedia.com/-- is a United Kingdom-based entertainment and communications business. Virgin Media is a residential broadband and mobile virtual network operator, and a provider in the United Kingdom of pay television and fixed-line telephone services. Virgin Media manages its business through three segments: Cable, Mobile and Content. The Cable segment includes the distribution of television programming over the Company's cable network, and the provision of broadband and fixed-line telephone services to consumers, businesses and public sector organizations. The Mobile segment includes the provision of mobile telephone services under the name Virgin Mobile to consumers over cellular networks owned by third parties. The Company's Content segment includes the operations of its United Kingdom television channels, such as Virgin1, Living and Bravo's portfolio of retail television channels. In April 2009, Virgin Media Inc. announced that AURELIUS AG has acquired sit-up Ltd. * * * As reported by the Troubled Company Reporter-Europe on Nov. 5, 2009, Fitch Ratings revised the rating Outlook on UK cable operator Virgin Media Inc. to Positive from Stable, while affirming the company's Long-term Issuer Default Rating at 'BB-'. Virgin Media's Short-term IDR is affirmed at 'B'. Fitch simultaneously affirmed Virgin Media Finance plc's and Virgin Media Investment Holdings Limited's existing instrument ratings as detailed at the end of this comment. The agency additionally assigned an expected rating of 'BB' to Virgin Media Finance plc's proposed new 2019 senior note issuance. VIRGIN MEDIA: Offers GBP500 Mln Senior Secured Notes Due 2018 ------------------------------------------------------------- Virgin Media Inc.'s wholly owned subsidiary Virgin Media Secured Finance PLC intends to offer, subject to market and other conditions, approximately GBP500 million equivalent aggregate principal amount of senior secured notes due 2018 in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended and outside the United States to certain non-U.S. persons pursuant to Regulation S under the Securities Act. The notes will rank pari passu with Virgin Media's senior credit facility and, subject to certain exceptions, share in the same guarantees and security which has been granted in favor of its senior credit facility. Virgin Media intends to use the net proceeds from the notes offering to prepay a portion of its outstanding A-A3 and B1-B6 Tranches under its senior credit facility. About Virgin Media Headquartered in London, England, Virgin Media Inc. (NASDAQ:VMED)(LSE:VMED) -- http://www.virginmedia.com/-- is a United Kingdom-based entertainment and communications business. Virgin Media is a residential broadband and mobile virtual network operator, and a provider in the United Kingdom of pay television and fixed-line telephone services. Virgin Media manages its business through three segments: Cable, Mobile and Content. The Cable segment includes the distribution of television programming over the Company's cable network, and the provision of broadband and fixed-line telephone services to consumers, businesses and public sector organizations. The Mobile segment includes the provision of mobile telephone services under the name Virgin Mobile to consumers over cellular networks owned by third parties. The Company's Content segment includes the operations of its United Kingdom television channels, such as Virgin1, Living and Bravo's portfolio of retail television channels. In April 2009, Virgin Media Inc. announced that AURELIUS AG has acquired sit-up Ltd. * * * As reported by the Troubled Company Reporter-Europe on Nov. 5, 2009, Fitch Ratings revised the rating Outlook on UK cable operator Virgin Media Inc. to Positive from Stable, while affirming the company's Long-term Issuer Default Rating at 'BB-'. Virgin Media's Short-term IDR is affirmed at 'B'. Fitch simultaneously affirmed Virgin Media Finance plc's and Virgin Media Investment Holdings Limited's existing instrument ratings as detailed at the end of this comment. The agency additionally assigned an expected rating of 'BB' to Virgin Media Finance plc's proposed new 2019 senior note issuance. ********* 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 2010. 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. 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