/raid1/www/Hosts/bankrupt/TCREUR_Public/100405.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
E U R O P E
Monday, April 5, 2010, Vol. 11, No. 065
Headlines
C Z E C H R E P U B L I C
LENOXA AS: Declared Insolvent; Owes CZK67 Mil. to Banks
ODEVNI PODNIK: To Cut Around 150 Jobs This Month
* CZECH REPUBLIC: Company Insolvency Proposals Up 18.7% in Q1
F R A N C E
SIAC-VELCOREX: Court Orders Liquidation
G E R M A N Y
ESCADA AG: EUSA Files Chapter 11 Liquidation Plan
ESCADA AG: Begins Filing Omnibus Claims Objection
FRESENIUS AG: Bank Debt Trades at 0.46% Off in Secondary Market
PTC ALLIANCE: Files for Insolvency in Germany
I R E L A N D
ANGLO IRISH: Posts EUR12.7 Bil. Losses for 15-Mos. Ended Dec. 31
QUINN INSURANCE: Administration to Threaten Jobs, Owner Says
QUINN INSURANCE: Administration May Take Several Years
I T A L Y
GRUPPO DELTA: Creditors May Extend Debt Moratorium
PARMALAT SPA: Investors Seek to Change Dividend Rules
L U X E M B O U R G
EVRAZ GROUP: USUS$1 Bil. Loan From VEB Extended by One Year
M A C E D O N I A
METALEC: Declared Insolvent
N E T H E R L A N D S
LYONDELL CHEMICAL: Seeks US Court Nod for USUS$5BB Exit Financing
LYONDELL CHEMICAL: Files Third Amended Plan and Disc. Statement
LYONDELL CHEMICAL: Wants to Enforce Stay Against Int'l Paper
LYONDELL CHEMICAL: Amoco to Reject Chocolate Bayou Purchase Pacts
SENSATA TECHNOLOGIES: Debt Trades at 4% Off in Secondary Market
UNIVAR NV: Bank Debt Trades at 4% Off in Secondary Market
S W I T Z E R L A N D
OERLIKON CORP: Losses Rises to CHF592 Million in 2009
U N I T E D K I N G D O M
BARGAIN BOOKS: Bought Out of Administration; 77 Jobs Saved
BRP GROUP: Goes Into Administration Following Poor Sales
EMI GROUP: Talks Over GBP200 Mil. Distribution Deal Collapse
ETHEL AUSTIN: Administrators Sold Business Back to Former Owner
EXCEL SECURITIES: In Administration; Owes GBP17.5 Mil. to Banks
LASER ELECTRICAL: In Administration; KPMG Seeks Buyer
PFL LIMITED: In Administration; MCR Appointed
YOUR SPACE: In Administration; 14 Jobs Affected
X X X X X X X X
* BOND PRICING: For the Week March 29 to April 2, 2010
*********
===========================
C Z E C H R E P U B L I C
===========================
LENOXA AS: Declared Insolvent; Owes CZK67 Mil. to Banks
-------------------------------------------------------
CTK reports that the Liberec court on Thursday declared Lenoxa
a.s. insolvent. The report relates Liberec-based company Koppa
has been named insolvency administrator.
The report says the company is unable to pay the debts. According
to the report, it owes more than CZK67 million to banks, leasing
companies and suppliers.
Creditors have been 30 days to file their claims, the report
notes.
Lenoxa a.s. is a heat supplier based in Liberec, Czech Republic.
ODEVNI PODNIK: To Cut Around 150 Jobs This Month
------------------------------------------------
CTK, citing regional daily Prostejovsky denik, reports that Odevni
podnik will dismiss around 150 employees this month. According to
CTK, the company employs some 1,500 people.
Restructuring
As reported by the Troubled Company Reporter-Europe on March 29,
2010, CTK, citing Odevni podnik's PR agent Karel Samec, said the
company's management said it has given up the right to draft a
restructuring plan after failing to secure money for operation.
CTK disclosed OP suggests that creditors propose their own
restructuring plan. OP, which has been insolvent since January,
owes around CZK1.6 billion to its creditors, according to CTK.
CTK noted restructuring, which would prevent the company from
going bankrupt and enable production to continue, was approved by
creditors in early March.
Odevni podnik, a.s. is a textile company based in Prostejov, Czech
Republic.
* CZECH REPUBLIC: Company Insolvency Proposals Up 18.7% in Q1
-------------------------------------------------------------
CTK, citing Creditreform, reports that the number of company
insolvency proposals filed in the first quarter of 2010 in the
Czech Republic rose by 18.7% to 2,044. According to the report,
trading and construction companies took the highest share in the
figure.
The report notes that roughly half of the insolvency proposals for
companies ends in bankruptcy declaration. Reorganization is also
an option, the report says. Since January 2008, reorganization
has been allowed to 26 companies, of this in six cases in 2008,
sixteen cases in 2009 and four cases in the first three months of
2010, the report states.
There were 433 bankruptcies declared in Q1 2010, up 22% year-on-
year, the report discloses.
Citing statistics of database Cribis.cz, run by the Czech Credit
Bureau, the report says bankruptcy proposals for companies rose
20% to 172 in March. Month-on-month, the number of bankruptcy
proposals for companies rose by almost 30%, the report notes.
===========
F R A N C E
===========
SIAC-VELCOREX: Court Orders Liquidation
---------------------------------------
A commercial court in Mulhouse, in eastern France has ordered the
liquidation of SAIC-Velcorex Concord with immediate effect,
just-style.com reports.
SAIC-Velcorex Concord, formerly DMC Tissus, is a sportswear
fabrics and velvet specialist.
=============
G E R M A N Y
=============
ESCADA AG: EUSA Files Chapter 11 Liquidation Plan
-------------------------------------------------
EUSA Liquidation, Inc., formerly known as Escada (USA) Inc., and
the Official Committee of Unsecured Creditors, as plan proponents,
submitted to the U.S. Bankruptcy Court for the Southern District
of New York a Joint Chapter 11 Plan of Liquidation and
accompanying Disclosure Statement dated March 26, 2010.
The overall purpose of the Plan is to provide for the wind down
and efficient liquidation of the Debtor in a manner designed to
maximize the recovery to all creditor, Christian D. Marques,
executive vice president, chief financial officer and treasurer
of Escada (USA) Inc., relates.
The Plan contemplates the establishment of a liquidating trust,
to be executed through a Liquidating Trust Agreement by the
Debtor and the Creditors' Committee. The Liquidating Trust will
be established for the sole purpose of liquidating and
distributing the Trust Assets, in accordance with Section
301.7701-4(d) of the Treasury Regulation under the Internal
Revenue Service, with no objective to continue or engage in the
conduct of a trade or business.
The Trust Assets consist of any and all of the Debtor's and its
estate's right, title and interest in all property, as provided
under Section 541 of the Bankruptcy Code, including cash, rights
of set-off and recoupment, any and all proceeds, rents, products,
offspring, profits arising from or generated by such property
before or after the Effective Date of the Plan, and any other
remaining property of the Debtor and its estate.
All parties will treat the Liquidating Trust as a liquidating
trust for federal income tax purposes with Holders of Class 3
Claims as Liquidating Trust beneficiaries, grantors and owners of
the Liquidating Trust, as set forth under the Liquidating Trust
Agreement.
The Liquidating Trust will terminate no later than the third
anniversary of the Plan Effective Date. Multiple extensions of
the term of the Liquidating Trust can be obtained so long as
Court approval is requested at least six months prior to the
expiration of each extended Term and provided that the aggregate
of all extensions will not exceed three years. A liquidating
trustee will further cause the Liquidating Trust to be terminated
within three months after making the Final Distribution.
Appointment of Liquidating Trustee
The Court order confirming the Plan will provide for the
appointment of Clingman & Hanger Management Associates, LLC, as
Liquidating Trustee, which will be the exclusive trustee of the
Trust Assets with the powers, authority and responsibilities
specified under the Liquidating Trust Agreement. From and after
the Plan Effective Date, the Liquidating Trustee will (i) act for
the Debtor in the same fiduciary capacity as applicable to a
board of directors and officers, and (ii) be the sole
representative of, and will act for, the Debtor.
Accordingly, from and after the Plan Effective Date, the
Liquidating Trustee will make all Distributions contemplated
under the Plan and will have the exclusive right to settle or
compromise any disputed claim or estate actions, as defined under
the Liquidating Trust Agreement.
Treatment of Claims and Equity Interests
Pursuant to Sections 1122 and 1123 of the Bankruptcy Code, proofs
of claim or interest asserted in the Debtor's case are classified
into these categories for the purpose of receiving distributions
pursuant to the Plan:
Class Description Status Voting Rights
------ ----------- ------ -------------
Unclassified Administrative Unimpaired Deemed to
Expense Claims and accept Plan
Priority Tax
Claims
1 Priority Non-Tax Unimpaired Deemed to
Claims accept Plan
2 Miscellaneous Unimpaired Deemed to
Secured Claims accept Plan
3 Unsecured Claims Impaired Entitled
to vote
4 Interests Impaired Deemed to
reject Plan
Each holder of an Unclassified Claims and Class 1 Claims will
receive either (i) cash, (ii) other less favorable treatment as
may be agreed upon in writing by the claimholder and the Debtor,
prior to the Plan Effective Date, and (iii) other treatment so
that the Claims will not be Impaired.
Each holder of Class 2 Claims will receive either (i) cash, (ii)
the property securing that Miscellaneous Secured Claim, with any
deficiency to result in an Allowed Unsecured Claim, (iii) other
treatment as may be agreed upon by the claimholder and the Debtor
prior to the Effective Date, or (iv) other treatment that the
Claim will not be Impaired.
Each Holder of Class 3 Claims will receive a Pro Rata Share of
Available Cash pursuant to the Plan and Liquidating Trust
Agreement. Subsequent Distributions will be made pursuant to the
Liquidating Trust Agreement. Any Distributions to Beneficial
Holders of the Allowed Note Guarantee Claim will be made solely
to the Indenture Trustee for further distribution by the
Indenture Trustee to or for the benefit of the Beneficial Holders
of the Allowed Note Guarantee Claim pursuant to the terms of the
Indenture.
Interests will be deemed canceled, annulled, extinguished and
voided on the Plan Effective Date, and holders of Interests will
not be entitled to any Distributions under the Plan.
Estimated recoveries for Unclassified Claims and Claims under
Classes 1 and 2 are estimated at 100%. Recovery for Class 3
Claims is unknown, while Class 4 Claims will have 0% recovery.
Each Holder of an Administrative Expense Claim -- other than a
Professional Fee Claim -- including any claim for substantial
contribution, is required to file a proof of Administrative
Expense Claim by (i) March 31, 2010, for Administrative Expense
Claims arising on or after the Petition Date through and
including January 14, 2010, and (ii) 30 days after the Plan
Effective Date for Administrative Expense Claims arising on or
after January 15, 2010.
Establishment of Accounts and Reserves
On the Effective Date, the Debtor or the Liquidating Trustee will
establish the General Disbursement Account and Reserves, which
will be interest-bearing accounts administered by the Liquidating
Trustee.
On the Effective Date, all of the Debtor's assets will be
transferred to the General Disbursement Account, from which the
Liquidating Trustee will fund:
(i) the Administrative Claims Reserve with Cash in an amount
sufficient to pay the full amount of all disputed
Administrative Expense Claims, all Disputed Priority Tax
Claims, all Disputed Priority Non-Tax Claims and all
estimated unpaid Professional Fee Claims;
(ii) the Priority Claims Reserve in an amount necessary to fund
payment of all Priority Tax Claims and Priority Non-Tax
Claims outstanding as of the Effective Date; and
(iii) the Expense Reserve with Cash, totaling $400,000, to pay
post-Effective Date costs, including costs necessary to
effectuate the liquidation of the remaining assets of
the Debtor, administering the Liquidating Trust, and
funding any necessary or appropriate litigation against
third parties, in accordance with the Plan.
On and after the Effective Date, any Distributions that would
otherwise be made to the holders of Disputed Unsecured Claims
will be transferred to the Disputed Unsecured Claims Reserve.
The Liquidating Trustee will be entitled to (i) hold and
administer the Disputed Claims Reserve, (ii) object to, settle or
otherwise resolve Disputed Claims, (iii) make Distributions to
Holders of Disputed Claims that subsequently become Allowed
Claims in accordance with the Plan, and (iv) distribute any
remaining assets of the Disputed Claims Reserve, after resolving
all Disputed Claims, to the Liquidating Trust Beneficiaries in
accordance with the Liquidating Trust Agreement and the Plan.
The Administrative Claims Reserve and the Disputed Unsecured
Claims Reserve will be terminated by the Liquidating Trustee when
all Disputed Claims have either become Allowed Claims or
Disallowed, and Distributions required been made in accordance
with the Plan.
Payment of Professional Fees
Each professional who holds claims for compensation and
reimbursement of expenses pursuant to Sections 327, 328, 330,
331, 503(b) or 1103 of the Bankruptcy Code in connection with an
application made to the Court must (i) file their final fee
applications by no later than 60 days after the Plan Effective
Date or as may be fixed by the Court. If allowed, the
Professional Fees must be paid in cash. All Professional fees
and expenses incurred after the Plan Effective Date are not
subject to Court approval and will be paid in accordance with the
Plan.
Quarterly fees owed to the Office of the U.S. Trustee will be
paid when due prior to the Effective Date of the Plan. The
Liquidating Trustee will continue to file reports to show the
calculation of fees for the Debtor's estate until the Chapter 11
case is closed under Section 350 of the Bankruptcy Code.
Executory Contracts
As of the Plan Effective Date, all executory contracts that exist
between the Debtor and any person and that have not previously
been assumed and assigned or rejected by the Debtor will be
deemed rejected pursuant to Section 365 of the Bankruptcy Code.
Proofs of Claim for damages allegedly arising from the Rejection
must be filed with the Court and served on the Liquidating
Trustee no later than 30 days after the Plan Effective Date.
The Debtor's (i) amended and restated employment agreement with
Christian D. Marques effective as of January 15, 2010, and the
(ii) the amended and restated cost-sharing agreement with Escada
US Subco LLC, as purchaser, in relation to Mr. Marques will not
be deemed rejected and will continue to be binding on the Debtor,
the Liquidating Trust and the Purchaser.
Officers and Directors
All officers and directors of the Debtor serving immediately
prior to the Effective Date, other than Christian D. Marques,
will be deemed to have been terminated or removed as of the Plan
Effective Date. From and after the Effective Date, the
Liquidating Trustee will be deemed the sole shareholder and will
be appointed as the sole director and officer of the Debtor,
other than Mr. Marques. The Liquidating Trustee will serve in
its capacity through the earlier of the date the Debtor is
dissolved in accordance with the Plan or the date that the
Liquidating Trustee resigns, is terminated or otherwise unable to
serve.
Cancellation of Notes
On the Effective Date, any notes, bonds, indentures, guarantees
or other instruments or documents evidencing or creating any
indebtedness or obligations of the Debtor will be cancelled and
extinguished as to the Debtor only. The obligations of the
Debtor under any agreements, documents, indentures or
certificates of designation governing the Note Guarantee Claim
and any other notes, bonds, indentures, guarantees or other
instruments or documents evidencing or creating any indebtedness
or obligations of the Debtor that are Impaired under this Plan
will be discharged. Interests will be canceled without any
conversion or Distribution.
Liquidation Analysis
The Debtor believes that larger Distributions will be available
to claimholders under the Plan than under a liquidation pursuant
to Chapter 7 of the Bankruptcy Code. Moreover, conversion of the
Debtor's Chapter 11 case to Chapter 7 would replace the
Liquidating Trustee with a Chapter 7 trustee. As a consequence,
the liquidation and completion of the Debtor's case would be
substantially disrupted because a Chapter 7 trustee would be
unfamiliar with the Debtor's case.
In addition, claimholders would bear the cost of educating the
Chapter 7 trustee, resulting in delays and reduced Distributions.
Furthermore, all fees of, and expenses incurred by, the Chapter 7
trustee and its professionals would have priority over all
Administrative Expense Claims and Unsecured Claims previously
incurred in the Debtor's case under Section 726(b) of the
Bankruptcy Code.
The Debtor has yet to file its Liquidation Analysis.
Closing of Chapter 11 Case
When all Disputed Claims Filed against the Debtor have become
Allowed Claims or have been Disallowed by Final Order, and all
remaining assets of the Debtor have been liquidated and converted
into cash, other than those assets abandoned by the Debtor, and
the Cash has been distributed in accordance with the Plan, the
Liquidating Trustee will file a certificate of completion of
Distributions with, and seek authority from, the Court to close
the Debtor's bankruptcy case.
The Court has fixed April 29, 2010, as the time and date for the
determination of persons who are entitled to receive a copy of
the Disclosure Statement and all of the related materials and to
vote whether to accept the Plan.
The Plan Proponents did not disclose a schedule on the hearing to
approve the Disclosure Statement. The Proponents, however, noted
that upon requisite acceptances with respect to the Plan, they
intend to ask Judge Mary F. Walrath to schedule a hearing to
confirm the Plan "as soon as possible."
A full-text copy of the Liquidation Plan is available at no
charge at http://bankrupt.com/misc/Escada_LiquidationPlan.pdf
A full-text copy of the Disclosure Statement is available for
free at http://bankrupt.com/misc/Escada_DisclosureStatement.pdf
About Escada AG
The ESCADA Group -- http://www.escada.com/-- is an international
fashion group for women's apparel and accessories, which is active
on the international luxury goods market. It has pursued a course
of steady expansion since its founding in 1976 by Margaretha and
Wolfgang Ley and today has 182 own shops and 225 franchise
shops/corners in more than 60 countries.
As of August 10, 2009, the Escada Group operated 176 owned stores
and so-called shop in shops, of which 26 owned stores are located
in the United States and operated by Escada (USA) Inc. and 2
stores are planned to be opened in the United States before year
end. Escada Group products are also sold in 163 stores worldwide
which are operated by franchisees. Escada Group had total assets
of EUR322.2 million against total liabilities of EUR338.9 million
as of April 30, 2009.
Wholly owned subsidiary Escada (USA) Inc. filed for Chapter 11 on
August 14, 2009 (Bankr. S.D.N.Y. Case No. 09-15008). Judge Stuart
M. Bernstein handles the case. O'Melveny & Myers LLP has been
tapped as bankruptcy counsel. Kurtzman Carson Consultants serves
as claims and notice agent. Escada US listed US$50 million to
US$100 million in assets and US$100 million to US$500 million in
debts in its petition.
Bankruptcy Creditors' Service, Inc., publishes Escada USA
Bankruptcy News. The newsletter tracks the Chapter 11 proceedings
of Escada USA, and the insolvency proceedings of ESCADA AG and its
units. (http://bankrupt.com/newsstand/or 215/945-7000)
ESCADA AG: Begins Filing Omnibus Claims Objection
-------------------------------------------------
In its first omnibus claims objection, EUSA Liquidation, Inc.,
formerly known as Escada (USA) Inc., asks the U.S. Bankruptcy
Court to expunge:
(1) Claim Nos. 383, 382, 357, 356, 222, 164, 16, 96, 46, 99
and 299, aggregating US$962,776, plus unliquidated amounts
because they are duplicative of previously filed proofs of
claim;
(2) Claim Nos. 74, 342, 350, 40, 13, 328, 359, 61, 1, 45, 207,
41, 32, 52, 59 and 60, aggregating US$15,177,463, plus
unliquidated amounts because they have been amended and
superseded by other proofs of claim; and
(3) Claim Nos. 389, 360, 318, 324, 352 and 348, aggregating
US$7,655, plus unliquidated amounts because they were filed
after the Claims Bar Date.
About Escada AG
The ESCADA Group -- http://www.escada.com/-- is an international
fashion group for women's apparel and accessories, which is active
on the international luxury goods market. It has pursued a course
of steady expansion since its founding in 1976 by Margaretha and
Wolfgang Ley and today has 182 own shops and 225 franchise
shops/corners in more than 60 countries.
As of August 10, 2009, the Escada Group operated 176 owned stores
and so-called shop in shops, of which 26 owned stores are located
in the United States and operated by Escada (USA) Inc. and 2
stores are planned to be opened in the United States before year
end. Escada Group products are also sold in 163 stores worldwide
which are operated by franchisees. Escada Group had total assets
of EUR322.2 million against total liabilities of EUR338.9 million
as of April 30, 2009.
Wholly owned subsidiary Escada (USA) Inc. filed for Chapter 11 on
August 14, 2009 (Bankr. S.D.N.Y. Case No. 09-15008). Judge Stuart
M. Bernstein handles the case. O'Melveny & Myers LLP has been
tapped as bankruptcy counsel. Kurtzman Carson Consultants serves
as claims and notice agent. Escada US listed USUS$50 million to
USUS$100 million in assets and USUS$100 million to USUS$500
million in
debts in its petition.
Bankruptcy Creditors' Service, Inc., publishes Escada USA
Bankruptcy News. The newsletter tracks the Chapter 11 proceedings
of Escada USA, and the insolvency proceedings of ESCADA AG and its
units. (http://bankrupt.com/newsstand/or 215/945-7000)
FRESENIUS AG: Bank Debt Trades at 0.46% Off in Secondary Market
---------------------------------------------------------------
Participations in a syndicated loan under which Fresenius Medical
Care AG & Co. is a borrower traded in the secondary market at
99.54 cents-on-the-dollar during the week ended Friday, April 2,
2010, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. This represents a drop of
0.98 percentage points from the previous week, The Journal
relates. The Company pays 350 basis points above LIBOR to borrow
under the facility. The bank loan matures on Sept. 26, 2014, and
is not rated by Moody's and Standard & Poor's. The debt is one of
the biggest gainers and losers among 196 widely quoted syndicated
loans with five or more bids in secondary trading for the week
ended Friday.
Headquartered in Bad Hamburg, Germany, Fresenius Medical Care AG &
Co. KGaA -- http://www.fmc-ag.com/-- is a kidney dialysis
company, operating in both the field of dialysis products and the
field of dialysis services. The Company's dialysis business is
vertically integrated, providing dialysis treatment at its own
dialysis clinics and supplying these clinics with a range of
products. In addition, the Company sells dialysis products to
other dialysis service providers. At December 31, 2008, it
provided dialysis treatment to 184,086 patients in 2,388 clinics
worldwide located in more than 30 countries. In the United
States, it also performs clinical laboratory testing and provides
inpatient dialysis services and other services under contract to
hospitals. During the year ended December 31, 2008, it provided
27.9 million dialysis treatments. It also develops and
manufactures a range of equipments, systems and disposable
products, which it sells to customers in over 115 countries.
PTC ALLIANCE: Files for Insolvency in Germany
---------------------------------------------
PTC Alliance's Wiederholt GmbH subsidiary filed for insolvency in
Germany on March 30.
The filing is not expected to impact parent PTC Alliance's U.S.
operations or their ability to continue paying suppliers on normal
terms and serving customers. There are no parent company
guarantees on Wiederholt's liabilities. Additionally,
Wiederholt's financing was separate and independent from the
parent company.
PTC Alliance owns all of the equity of Wiederholt.
As previously announced, PTC Alliance and its U.S. subsidiaries
filed voluntary petitions for relief under Chapter 11 of the U.S.
Bankruptcy Code on October 1, 2009 in the U.S. Bankruptcy Court,
District of Delaware. The case is 09-13395.
About PTC Alliance
PTC Alliance is a leading manufacturer and marketer of welded and
cold drawn mechanical steel tubing and tubular shapes, fabricated
parts, precision components and chrome-plated rod. The company's
major customers include steel service centers, automotive and
truck manufacturers, construction and agricultural equipment OEMs
and machinery and appliance makers. With eleven strategically
located factories in North America and a manufacturing complex in
Germany, PTC Alliance is able to minimize lead time, shipping
distance and expense for its customers.
=============
I R E L A N D
=============
ANGLO IRISH: Posts EUR12.7 Bil. Losses for 15-Mos. Ended Dec. 31
----------------------------------------------------------------
John Murray Brown and Nikki Tait at The Financial Times report
that Anglo Irish Bank recorded losses of EUR12.7 billion for the
15 months to December 31.
According to the FT, the bank, which was nationalized in January
2009 after a spate of governance scandals, took a EUR15 billion
charge for losses on loans to property developers that it does not
expect to recover.
The FT relates Brian Lenihan, the Irish finance minister, told
parliament on Tuesday that Anglo Irish may need an additional
EUR10 billion to absorb future losses.
The FT notes Anglo Irish said of its EUR15 billion provision,
EUR10 billion was for loans destined for the National Asset
Management Agency. Anglo Irish is set to transfer EUR35.6 billion
to Nama -- about half its EUR72.1 billion loan book, the FT says.
The first EUR10 billion Anglo Irish loans were acquired by Nama
for EUR5 billion, representing a 50% discount to reflect the
collapse of Irish property values, the FT recalls.
Fees
Emmet Oliver at Irish Independent reports that Anglo Irish has
spent EUR25 million on advisers and lawyers as it investigates
past scandals and prepares to split itself into a so-called "good
and bad" bank.
According to Irish Independent, the fees paid to advisers form
part of the EUR42 million in "exceptional costs" incurred by the
bank in the 15 months to the end of 2009. The Irish Independent
relates the bank said the EUR25 million in costs for advisers was
needed for "professional fees associated with the bank's
restructuring process". The Irish Independent note the bank said
other part of this money was for "investigations and reviews into
legacy issues".
The Irish Independent discloses the bank, now under new management
led by Australian banker Mike Aynsley, has hired a battery of
advisers to help with its restructuring plan, among them Bain &
Co, KPMG and JP Morgan. The New York consultancy SBCC has advised
the bank on risk management and loan valuations, Irish Independent
relates. Also retained are auditors Deloitte and legal advisers
McCann FitzGerald and Freshfields, Irish Independent notes.
Anglo Irish Bank Corp PLC -- http://www.angloirishbank.com/--
operates in three core areas: business lending, treasury and
private banking. The Bank's non-retail business is made up of
more than 11,000 commercial depositors spanning commercial
entities, charities, public sector bodies, pension funds, credit
unions and other non-bank financial institutions. The Company's
retail deposits comprise demand, notice and fixed term deposit
accounts from personal savers with maturities of up to two years.
Non-retail deposits are sourced from commercial entities,
charities, public sector bodies, pension funds, credit unions and
other non-bank financial institutions. In addition, at September
30, 2008, its non-retail deposits included deposits from Irish
Life Assurance plc. The Private Bank offers tailored products and
solutions for high net worth clients and operates the Bank's
lending business in Ireland and the United Kingdom.
* * *
As reported by the Troubled Company Reporter-Europe on Nov. 9,
2009, Fitch affirmed Anglo Irish Bank Corporation Ltd.'s
individual rating at 'E'.
QUINN INSURANCE: Administration to Threaten Jobs, Owner Says
------------------------------------------------------------
RTE News reports that Sean Quinn, the owner of Quinn Insurance,
said the appointment of administrators to the company is causing
major damage and threatening thousands of jobs.
Mr. Quinn told RTE News in an exclusive interview there was no
question of his company being involved in any impropriety. He
described the Financial Regulator's decision as one of the biggest
errors ever in the history of corporate Ireland, RTE News notes.
According to RTE News, Mr. Quinn also rejected claims by the
Regulator and the Minister for Finance that his company had failed
to disclose information about its finances until a few days ago.
As reported by the Troubled Company Reporter-Europe on April 1,
2010, The Times said Irelands' Financial Regulator on March 30 put
Quinn Insurance into provisional administration. The Times
disclosed joint administrators were appointed to Quinn
Insurance by the High Court in Dublin after the regulator
expressed concerns about the company's finances and how it was
being run. The Times related the regulator said the business
would remain open for business and would continue to be run as a
going concern under different management. The Times noted the
regulator did not disclose the matters being investigated but its
counsel told the court that, in recent months, the company had
"significantly breached" its solvency ratios. According to The
Times, the counsel said the company had gone from a position of
having assets over liabilities of some EUR200 million to now
having an excess of liabilities of more than EUR200 million.
Quinn Insurance is owned by Sean Quinn, Ireland's richest man, and
his family. The company has just over 20% of the motor and health
insurance market in Ireland. It has more than one million
customers in the country. Employing almost 2,800 people in
Britain and Ireland, it was founded in 1996 and entered the UK
market in 2004, according to The Times.
QUINN INSURANCE: Administration May Take Several Years
------------------------------------------------------
Geoff Percival at Irish Examiner.com reports that Quinn Insurance
is expected to remain in either full or partial administration for
several years to come.
The report relates Paul McCann and Michael McAteer of chartered
accountants Grant Thornton were appointed provisional
administrators to the general insurance division of the wider
Quinn Group on March 30 after a special sitting of the High Court.
Sale
According to the report, the two administrators have since
admitted that about 20 expressions of interest in the relevant
Quinn operations have been lodged with them -- by both Irish and
international insurance companies -- that could result in a total
or partial sale of the company.
The report says the future structure and ownership of Quinn
Insurance is unclear and dependent on the administrators'
findings, if and when they get full control of the business. It
is possible the company could be wound up completely, run as an
independent entity or another scenario is that it could be sold to
a third party, the report states.
The next key date -- April 12 -- is the next full sitting of the
High Court, when the Financial Regulator will put across its
concerns in full and, presumably, Quinn Insurance representatives
will argue their defense, the report notes. The report relates
the regulator, Matthew Elderfield, has already raised concerns
that the company's financial strength has been overstated to the
tune of around EUR450 million.
"The administration process is a long one and can take time, the
report quoted one industry source as saying Friday. "There isn't
a great deal of precedent in the Irish insurance market, but it
should be noted that while much of its business was sold off and
whittled down over the course of seven or eight years, PMPA is
still technically partly in administration -- 27 years after its
collapse."
Quinn Insurance is owned by Sean Quinn, Ireland's richest man, and
his family. The company has just over 20% of the motor and health
insurance market in Ireland. It has more than one million
customers in the country. Employing almost 2,800 people in
Britain and Ireland, it was founded in 1996 and entered the UK
market in 2004, according to The Times.
=========
I T A L Y
=========
GRUPPO DELTA: Creditors May Extend Debt Moratorium
--------------------------------------------------
Elisa Martinuzzi at Bloomberg News, citing Il Messaggero, reports
that Gruppo Delta's creditor banks plan to extend a debt
moratorium by four months through July 31. The company creditor
banks include BNP Paribas SA and UniCredit SpA, Bloomberg notes.
Asset Sale
Citing Dow Jones Newswires, the Troubled Company Reporter-Europe
reported on March 19, 2010, that Cassa di Risparmio della
Repubblica di San Marino SpA, Gruppo Delta's majority owner, said
it was ready to look for another buyer for some of its assets if
Intesa Sanpaolo SpA loses interest. Dow Jones disclosed Delta,
which has EUR3.5 billion of debt, is under administration and the
sale of certain of its assets is part of an effort to rescue it.
Dow Jones said the assets up for sale include bank Sedici Banca,
insurer Bentos Assicurazioni and two distribution networks for
consumer credit products called Carirete and RetePlus.
Gruppo Delta is a consumer credit company. Cassa di Risparmio
della Repubblica di San Marino SpA owns 80% of the
company.
PARMALAT SPA: Investors Seek to Change Dividend Rules
-----------------------------------------------------
Armorel Kenna at Bloomberg News, citing news agency Radiocor,
reports that some Parmalat SpA investors may soon ask for an
extraordinary shareholders meeting in a bid to change the
company's rules on dividends.
According to Bloomberg, the company, whose annual meeting was due
to be held April 1, currently limits dividend payouts to 50% of
earnings.
About Parmalat S.p.A.
Headquartered in Milan, Italy, Parmalat S.p.A. --
http://www.parmalat.net/-- sells nameplate milk products
that can be stored at room temperature for months. It also has
about 40 brand product lines, which include yogurt, cheese,
butter, cakes and cookies, breads, pizza, snack foods and
vegetable sauces, soups and juices.
The Company's U.S. operations filed for Chapter 11 protection on
February 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary
Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors. When the U.S. Debtors filed
for bankruptcy protection, they reported more than USUS$200
million
in assets and debts. The U.S. Debtors emerged from bankruptcy on
April 13, 2005.
Parmalat S.p.A. and its Italian affiliates filed separate
petitions for Extraordinary Administration before the Italian
Ministry of Productive Activities and the Civil and Criminal
District Court of the City of Parma, Italy on December 24, 2003.
Dr. Enrico Bondi was appointed Extraordinary Commissioner in
each of the cases. The Parma Court has declared the units
insolvent.
On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.
04-14268, in the United States Bankruptcy Court for the Southern
District of New York.
Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat
Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and
Food Holdings are Cayman Island special-purpose vehicles
established by Parmalat S.p.A. The Finance Companies are under
separate winding up petitions before the Grand Court of the Cayman
Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman)
Ltd. serve as Joint Provisional Liquidators in the cases. On
January 20, 2004, the Liquidators filed Sec. 304 petition, Case
No. 04-10362, in the United States Bankruptcy Court for the
Southern District of New York. In May 2006, the Cayman Island
Court appointed Messrs. MacRae and Cleaver as Joint Official
Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham
& Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon,
Herlands Randolph, represent the Finance Companies in the Sec. 304
case.
The Honorable Robert D. Drain presided over the Parmalat Debtors'
U.S. cases. On June 21, 2007, the U.S. Court granted Parmalat
permanent injunction.
===================
L U X E M B O U R G
===================
EVRAZ GROUP: USUS$1 Bil. Loan From VEB Extended by One Year
---------------------------------------------------------
Ilya Khrennikov at Bloomberg News reports that Evraz Group SA ,
Chief Executive Officer Giacomo Baizini said the company extended
a USUS$1 billion loan from state development bank VEB by one year,
to late 2011.
According to Bloomberg, Mr. Bazini said in a conference call late
Wednesday Evraz repaid an USUS$800 million loan from VEB in
December to free Canadian assets that were held as collateral.
Loss
As reported by the Troubled Company Reporter-Europe on April 1,
2010, Bloomberg News said Evraz posted a net loss of USUS$1.26
billion in 2009 compared with a profit of USUS$1.86 billion in
2008, as production and prices declined on weaker economic growth.
Headquartered in Luxembourg, Evraz Group SA --
http://www.evraz.com/-- is a vertically integrated steel and
mining businesses with operations based in the Russian Federation,
the United States, Canada, Ukraine, Czech Republic, Italy and
South Africa. Evraz's business is divided into three segments:
steel production segment, comprising the production and sale of
semi-finished and finished steel products, coke and coking
products, and refractory products; the mining segment, comprising
the production, enrichment and sale of iron ore and coal, and the
vanadium segment, comprising the production and sale of vanadium
products. Other operations include management, logistics and
supporting activities. During the year ended December 31, 2008,
Evraz produced 17.7 million tonnes of crude steel. Evraz's assets
comprise of nine steel plants, five iron ore mining and processing
facilities and coal mining assets. During 2008, Evraz acquired
Claymont Steel Holdings, Inc., General Scrap Inc and Palmrose
Limited.
* * *
As reported by the Troubled Company Reporter-Europe on March 1,
2010, Fitch Ratings maintained the Long-term Issuer Default Rating
and senior unsecured ratings of Russia-based Evraz Group SA, which
are 'B+' respectively, on Rating Watch Negative. The
international integrated steel producer's Short-term IDR is
affirmed at 'B'. The Recovery Rating for the senior unsecured
debt is 'RR4'. The maintenance of the RWN reflects continuing
uncertainty regarding the company's ability to secure the
necessary funding to refinance debt maturing in 2010 and 2011.
Debt maturities are estimated at USUS$1.9 billion both in 2010 and
2011 compared with USUS$746 million of cash and equivalents and
USUS$1.1 billion of undrawn committed revolving facilities as at
end-FY09. Based on a conservative base case forecast, Fitch
expects Evraz to report negative free cash flow of USUS$200-250m
for
FY10. Assuming maintenance of a minimum operational cash balance
of USUS$150-200 million, Fitch estimates a potential funding gap
of
up USUS$500 million in 2010 and a gap of up to USUS$2 billion in
2011.
=================
M A C E D O N I A
=================
METALEC: Declared Insolvent
---------------------------
IntelliNews MK Today reports that Metalec was declared insolvent.
According to the report, the insolvency was requested by the
employees and the Slovenian partner CNC, which has a 20% stake in
the company.
Based in Prilep, Macedonia, Metalec is a steel construction
manufacturer. The company employs 230 people.
=====================
N E T H E R L A N D S
=====================
LYONDELL CHEMICAL: Seeks US Court Nod for USUS$5BB Exit Financing
---------------------------------------------------------------
Lyondell Chemical Co. and its units' progress towards confirmation
of their Third Amended Joint Plan of Reorganization is well
advanced, Mark C. Ellenberg, Esq., at Cadwalader Wickersham & Taft
LLP, in New York -- mark.ellenberg@cwt.com -- tells the Court.
Every major intercreditor dispute in the Debtors' Chapter 11 cases
has been resolved by agreement, Mr. Ellenberg notes. The Debtors
have also firm commitments to backstop a USUS$2.8 billion equity
rights offering as part of their exit from Chapter 11, he adds.
According to Mr. Ellenberg, the Debtors' 3rd Amended Plan
contemplates a three-piece exit financing:
(1) Reorganized LyondellBasell will enter into a USUS$1.75
billion
asset-based credit facility, which can be increased to
USUS$2.0 billion, known as the ABL Facility, subject to
satisfaction of certain conditions;
(2) Subject to market conditions, Reorganized LyondellBasell
will raise about USUS$2.25 billion of exit financing in the
capital markets, through a notes offering. Prior to
confirmation, LBI Escrow Corporation, a yet to be formed,
wholly owned subsidiary of non-Debtor LyondellBasell
Industries N.V., will issue and sell the notes and place
the proceeds into escrow, pending the confirmation and
effective date of the 3rd Amended Plan; and
(3) Subject to market conditions, Reorganized LyondellBasell
will raise about USUS$1.00 billion of exit financing in
the capital markets, through a term loan known as the
Senior Term Loan Facility. Prior to confirmation, LBI
Escrow will borrow the term loan and place the proceeds
into escrow, pending the confirmation and effective date
of the 3rd Amended Plan.
The Debtors will determine the relative size of the notes
offering and term loan based on market conditions and their
determination of the optimal capital structure to further their
estates' interests; however, the aggregate amount of the notes
and the term loan together will equal USUS$3.25 billion. The
Debtors will seek approval of the Exit Financing in connection
with confirmation of the 3rd Amended Plan, Mr. Ellenberg explains.
By this motion, the Debtors seek the Court's authority to:
(A) incur and pay, in connection with:
* the ABL Facility: agent, arranger and lender fees and
expenses, commitment fees and indemnification of certain
indemnified persons;
* issuance of the Senior Notes: fees, expenses and
indemnity obligations, including:
(1) upfront fees to lenders, underwriting fees, and fees
and expenses incurred in connection with the deposit
of proceeds into escrow;
(2) amounts sufficient to prefund certain interest
payments on the notes and accreted original issue
discount;
(3) an additional amount representing up to 1.5% of the
aggregate principal amount of the Senior Notes,
which may become payable to the noteholders if
certain conditions of the notes are not fulfilled;
and
(4) any escrow deficiency amounts;
* the Senior Term Loan Facility: fees, expenses and
indemnity obligations, including:
(1) upfront fees to lenders, arrangement fees, and fees
and expenses incurred in connection with the deposit
of proceeds into escrow;
(2) amounts sufficient to prefund certain interest
payments on the term loans and accreted original
issue discount; and
(3) any escrow deficiency amounts;
(B) permit non-Debtor LBI NV to form LBI Escrow to enter into
the contemplated pre-confirmation transactions, which the
Debtors will fund; and
(C) authorize the Debtors to execute these agreements:
(a) in connection with the ABL Facility:
-- commitment letter and ABL fee letters, which will
be executed by Lyondell Chemical Company only;
-- an ABL credit agreement to be entered by Lyondell;
Houston Refining LP; Equistar Chemicals LP and
LyondellBasell Acetyls, LLC.
(b) in connection with the Senior Notes:
-- a senior notes engagement letter; and
-- a purchase agreement and any related agreements.
(c) in connection with the Senior Term Loan Facility:
-- a senior term loan facility engagement letter; and
-- a term loan agreement and any related agreements.
The Debtors further ask the Court to determine that any amounts
that they are obligated to pay be entitled to priority treatment
as administrative expenses of their estates.
The Debtors estimate the fees to be incurred pursuant to the Exit
Financing Transactions Motion to be about USUS$80 million. In
addition, in the event that the escrow release conditions are not
met, the Debtors will be obligated to pay an additional amount of
about USUS$160 million in breakage fees, original issue discount
and
interest expenses to the purchasers of the notes, Mr. Ellenberg
discloses.
Approval of the Exit Financing Transactions Motion will assure
the Debtors of the availability of exit financing on favorable
terms and mitigate risks to their estates from future potentially
unfavorable changes in market conditions, Mr. Ellenberg says.
The current high yield debt markets are extremely favorable, he
tells the Court. Against this backdrop, a short delay in the
pricing and funding of the notes and term loans could result in
long-term financing costs to Reorganized LyondellBasell that will
far exceed the fees and costs that are the subject of the Exit
Financing Motion, he maintains.
Full-text copies of the ABL Facility, Notes Offering and Senior
Secured Term Loan Facility are available for free at:
http://bankrupt.com/misc/Lyondell_CommitmentPacts.pdf
* * *
Judge Gerber authorized the Debtors to enter into and perform
under the Exit Financing Agreements. Judge Gerber also authorized
the Debtors to incur and pay all of their obligations set forth in
the Exit Financing Agreements consisting of about USUS$80 million
in
fees and about USUS$160 million in additional breakage fees,
original discount and interest, in the event that the release
conditions are not satisfied, on the terms and conditions set
forth in the order without further Court order.
Judge Gerber also authorized to the Debtors to cause the formation
of LBI Escrow to issue the Senior Notes and place the proceeds
into escrow, pending confirmation of the 3rd Amended Plan.
However, Judge Gerber did not authorize the Debtors to borrow any
funds under the Exit Financing Agreements or to pledge any assets
to secure any obligations under the Exit Financing, all of which
will be subject to approval in connection with confirmation of the
3rd Amended Plan.
Until consummation of the Plan, none of the proceeds of the Senior
Notes or the Term Loan will constitute property of the Debtors'
estates and none of the Debtors will be obligated to repay the
Senior Notes or the Term Loan, Judge Gerber added.
* * *
Citing the International Financing Review, Reuters reports that
Lyondell sold on March 24, 2010, its senior notes in dollars and
euros, totaling USUS$2.25 billion and EUR375 million,. The
USUS$2.25
billion notes were priced to yield 477 basis points over compared
U.S. Treasurers and the EUR375 million notes were priced to yield
519 over the comparable Germand Bund, IFR told Reuters.
Bloomberg News also reported that Lyondell has increased its bond
sale by USUS$500 million while reducing its term loan by the same
amount as it prepares exit from bankruptcy. As to the Senior
Secured Term Loan Facility, it will pay 4.25% percentage points
more than the London interbank offered rate with a 2% Libor floor,
the unnamed source explained to Bloomberg. According to the
report, Libor is the rate banks charge to lend each other. The
source noted that the Term Loan will be sold at a discount to face
value, Bloomberg says.
About Lyondell Chemical
LyondellBasell Industries is one of the world's largest polymers,
petrochemicals and fuels companies. It is the global leader in
polyolefins technology, production and marketing; a pioneer in
propylene oxide and derivatives; and a significant producer of
fuels and refined products, including biofuels. Through research
and development, LyondellBasell develops innovative materials and
technologies that deliver exceptional customer value and products
that improve quality of life for people around the world.
Headquartered in The Netherlands, LyondellBasell --
http://www.lyondellbasell.com/-- is privately owned by Access
Industries.
Basell AF and Lyondell Chemical Company merged operations in 2007
to form LyondellBasell Industries, the world's third largest
independent chemical company. LyondellBasell became saddled with
debt as part of the USUS$12.7 billion merger. On January 6, 2009,
LyondellBasell Industries' U.S. operations and one of its European
holding companies -- Basell Germany Holdings GmbH -- filed
voluntary petitions to reorganize under Chapter 11 of the U.S.
Bankruptcy Code to facilitate a restructuring of the company's
debts. The case is In re Lyondell Chemical Company, et al.,
Bankr. S.D.N.Y. Lead Case No. 09-10023). Seventy-nine Lyondell
entities, including Equistar Chemicals, LP, Lyondell Chemical
Company, Millennium Chemicals Inc., and Wyatt Industries, Inc.
filed for Chapter 11. In May 2009, one of the cases was dismissed
-- Case No. 09-10068 -- because it is duplicative of Case No. 09-
10040 relating to Debtor Glidden Latin America Holdings.
The Hon. Robert E. Gerber presides over the case. Deryck A.
Palmer, Esq., at Cadwalader, Wickersham & Taft LLP, in New York,
serves as the Debtors' bankruptcy counsel. Evercore Partners
serves as financial advisors, and Alix Partners and its subsidiary
AP Services LLC, serves as restructuring advisors. AlixPartners'
Kevin M. McShea acts as the Debtors' Chief Restructuring Officer.
Clifford Chance LLP serves as restructuring advisors to the
European entities. Lyondell Chemical estimated that consolidated
assets total USUS$27.12 billion and debts total USUS$19.34 billion
as
of the bankruptcy filing date.
Lyondell has obtained approximately USUS$8 billion in DIP
financing
to fund continuing operations. The DIP financing includes two
credit agreements: a USUS$6.5 billion term loan, which comprises a
USUS$3.25 billion in new loans and a USUS$3.25 billion roll-up of
existing loans; and a USUS$1.57 billion asset-backed lending
facility.
LyondellBasell Industries AF S.C.A. and another affiliate were
voluntarily added to Lyondell Chemical's reorganization filing
under Chapter 11 on April 24, 2009, in order to seek protection
against claims by certain financial and U.S. trade creditors. On
May 8, 2009, LyondellBasell Industries added 13 non-operating
entities to Lyondell Chemical Company's reorganization filing
under Chapter 11 of the U.S. Bankruptcy Code. All of the entities
are U.S. companies and were added to the original Chapter 11
filing for administrative purposes.
Bankruptcy Creditors' Service, Inc., publishes Lyondell Bankruptcy
News. The newsletter tracks the Chapter 11 proceeding undertaken
by Lyondell Chemical Company and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
LYONDELL CHEMICAL: Files Third Amended Plan and Disc. Statement
---------------------------------------------------------------
Lyondell Chemical Company and its debtor affiliates filed with the
United States Bankruptcy Court for the Southern District of New
York a final copy of their Third Amended Joint Plan of
Reorganization and accompanying Disclosure Statement on March 12,
2010.
The final copy came after Judge Robert Gerber approved the
Debtors' Third Amended Disclosure Statement on March 11, 2010.
Full-text copies of the March 12 Third Amended Plan and Disclosure
Statement are available for free at:
http://bankrupt.com/misc/Lyondell_Mar123rdAmDS.pdf
http://bankrupt.com/misc/Lyondell_Mar123rdAmDS.pdf
The Debtors also filed with the Court on March 16, 2010:
* a list of Debtors, available for free at:
http://bankrupt.com/misc/Lyondell_PlanDebtors.pdf
* a list of non-Debtor affiliates, available for free at:
http://bankrupt.com/misc/Lyondell_Non-DebtorAffiliates.pdf
* a list of Schedule III Debtors, available for free at:
http://bankrupt.com/misc/Lyondell_SchedIIIDebtors.pdf
* a list of real property transferred to an Environmental
Custodial Trust, namely:
-- Allied Paper Mill, Kalamazoo, Michigan from LeMean Property
Holdings Corporation;
-- Beaver Valley, property near Monaca, Pennsylvania site from
Lyondell Chemical Company;
-- Bully Hills, Rising Star and Excelsior mines in Shasta
County, California from Millennium Holdings, LLC;
-- Charlotte, North Carolina site from Millennium Holdings,
LLC;
-- Morris, Illinois gypsum pile area from Equistar Chemicals,
LP;
-- Saint Helena site in Baltimore, Maryland from Millennium
Specialty Chemicals, Inc.; and
-- Turtle Bayou parcels in Chambers County, Texas site from
Lyondell Chemical Company.
* a non-exclusive list of discharged prepetition intercompany
claims, available for free at:
http://bankrupt.com/misc/Lyondell_DischargdIntrcompnyClaims.pdf
* * *
The Official Committee of Unsecured Creditors notifies the Court
that it has withdrawn its objection to the Debtors' Disclosure
Statement.
About Lyondell Chemical
LyondellBasell Industries is one of the world's largest polymers,
petrochemicals and fuels companies. It is the global leader in
polyolefins technology, production and marketing; a pioneer in
propylene oxide and derivatives; and a significant producer of
fuels and refined products, including biofuels. Through research
and development, LyondellBasell develops innovative materials and
technologies that deliver exceptional customer value and products
that improve quality of life for people around the world.
Headquartered in The Netherlands, LyondellBasell --
http://www.lyondellbasell.com/-- is privately owned by Access
Industries.
Basell AF and Lyondell Chemical Company merged operations in 2007
to form LyondellBasell Industries, the world's third largest
independent chemical company. LyondellBasell became saddled with
debt as part of the USUS$12.7 billion merger. On January 6, 2009,
LyondellBasell Industries' U.S. operations and one of its European
holding companies -- Basell Germany Holdings GmbH -- filed
voluntary petitions to reorganize under Chapter 11 of the U.S.
Bankruptcy Code to facilitate a restructuring of the company's
debts. The case is In re Lyondell Chemical Company, et al.,
Bankr. S.D.N.Y. Lead Case No. 09-10023). Seventy-nine Lyondell
entities, including Equistar Chemicals, LP, Lyondell Chemical
Company, Millennium Chemicals Inc., and Wyatt Industries, Inc.
filed for Chapter 11. In May 2009, one of the cases was dismissed
-- Case No. 09-10068 -- because it is duplicative of Case No. 09-
10040 relating to Debtor Glidden Latin America Holdings.
The Hon. Robert E. Gerber presides over the case. Deryck A.
Palmer, Esq., at Cadwalader, Wickersham & Taft LLP, in New York,
serves as the Debtors' bankruptcy counsel. Evercore Partners
serves as financial advisors, and Alix Partners and its subsidiary
AP Services LLC, serves as restructuring advisors. AlixPartners'
Kevin M. McShea acts as the Debtors' Chief Restructuring Officer.
Clifford Chance LLP serves as restructuring advisors to the
European entities. Lyondell Chemical estimated that consolidated
assets total USUS$27.12 billion and debts total USUS$19.34 billion
as
of the bankruptcy filing date.
Lyondell has obtained approximately USUS$8 billion in DIP
financing
to fund continuing operations. The DIP financing includes two
credit agreements: a USUS$6.5 billion term loan, which comprises a
USUS$3.25 billion in new loans and a USUS$3.25 billion roll-up of
existing loans; and a USUS$1.57 billion asset-backed lending
facility.
LyondellBasell Industries AF S.C.A. and another affiliate were
voluntarily added to Lyondell Chemical's reorganization filing
under Chapter 11 on April 24, 2009, in order to seek protection
against claims by certain financial and U.S. trade creditors. On
May 8, 2009, LyondellBasell Industries added 13 non-operating
entities to Lyondell Chemical Company's reorganization filing
under Chapter 11 of the U.S. Bankruptcy Code. All of the entities
are U.S. companies and were added to the original Chapter 11
filing for administrative purposes.
Bankruptcy Creditors' Service, Inc., publishes Lyondell Bankruptcy
News. The newsletter tracks the Chapter 11 proceeding undertaken
by Lyondell Chemical Company and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
LYONDELL CHEMICAL: Wants to Enforce Stay Against Int'l Paper
------------------------------------------------------------
Debtor Millennium Specialty Chemicals, Inc. and Weyerhaeuser
Company entered into a base agreement, whereby Weyerhauser will
sell the Debtor a chemical called crude sulfate turpentine.
Weyerhaeuser subsequently entered into a transaction with
International Paper Company whereby International Paper purchased
certain assets and liabilities of Weyerhaeuser. The Debtor and
International Paper also entered into a wrap-around agreement
whereby they agreed to be bound by the Base Agreement with certain
modifications, and that International Paper will sell 100% of the
turpentine it produced to Millennium.
The Agreements were automatically extended for an additional 12
months to December 31, 2010, pursuant to their own terms.
Pursuant to a letter dated November 30, 2009, International Paper
purported to give notice of termination of the Agreements,
effective June 30, 2010.
International Paper neither sought nor obtained relief from the
automatic stay or the January 7, 2009 Stay Order before taking
this action, Christopher R. Mirick, Esq., at Cadwalader,
Wickersham & Taft LLP, in New York, discloses. The Debtor advised
International Paper by a letter dated January 13, 2010, that the
notice of termination was ineffective and the Agreement would
automatically roll-over for an additional 12 month period to
December 31, 2010.
International Paper's attempt to terminate the Agreements violates
the automatic stay protections provided to the Debtor under the
Bankruptcy Code and the Stay Order, Mr. Mirick asserts. Both the
Bankruptcy Code and the Stay Order require International Paper to
fully perform its obligations under the Agreements in accordance
with their terms, and restrict International Paper from
unilaterally terminating the Agreements, he insists.
International Paper's termination of the Agreements and refusal to
continue to provide the Debtor with turpentine through December
31, 2010, will impair the Debtor's ability to conduct its business
in the normal course and to deliver product to certain of its
customers, Mirick points out. This disruption in the Debtor's
business will damage its relationships with its customers and
potentially affect its ability to successfully reorganize, he
maintains.
Thus, the Debtors ask the Court to:
(a) enforce the Stay Order against International Paper;
(b) enjoin International Paper from violating the automatic
stay and the Stay Order by unilaterally terminating its
prepetition executory agreement with the Debtor, or from
refusing to perform under the Agreements; and
(c) hold that International Paper's attempt to give notice of
termination of the Agreements is void and without effect.
About Lyondell Chemical
LyondellBasell Industries is one of the world's largest polymers,
petrochemicals and fuels companies. It is the global leader in
polyolefins technology, production and marketing; a pioneer in
propylene oxide and derivatives; and a significant producer of
fuels and refined products, including biofuels. Through research
and development, LyondellBasell develops innovative materials and
technologies that deliver exceptional customer value and products
that improve quality of life for people around the world.
Headquartered in The Netherlands, LyondellBasell --
http://www.lyondellbasell.com/-- is privately owned by Access
Industries.
Basell AF and Lyondell Chemical Company merged operations in 2007
to form LyondellBasell Industries, the world's third largest
independent chemical company. LyondellBasell became saddled with
debt as part of the USUS$12.7 billion merger. On January 6, 2009,
LyondellBasell Industries' U.S. operations and one of its European
holding companies -- Basell Germany Holdings GmbH -- filed
voluntary petitions to reorganize under Chapter 11 of the U.S.
Bankruptcy Code to facilitate a restructuring of the company's
debts. The case is In re Lyondell Chemical Company, et al.,
Bankr. S.D.N.Y. Lead Case No. 09-10023). Seventy-nine Lyondell
entities, including Equistar Chemicals, LP, Lyondell Chemical
Company, Millennium Chemicals Inc., and Wyatt Industries, Inc.
filed for Chapter 11. In May 2009, one of the cases was dismissed
-- Case No. 09-10068 -- because it is duplicative of Case No. 09-
10040 relating to Debtor Glidden Latin America Holdings.
The Hon. Robert E. Gerber presides over the case. Deryck A.
Palmer, Esq., at Cadwalader, Wickersham & Taft LLP, in New York,
serves as the Debtors' bankruptcy counsel. Evercore Partners
serves as financial advisors, and Alix Partners and its subsidiary
AP Services LLC, serves as restructuring advisors. AlixPartners'
Kevin M. McShea acts as the Debtors' Chief Restructuring Officer.
Clifford Chance LLP serves as restructuring advisors to the
European entities. Lyondell Chemical estimated that consolidated
assets total USUS$27.12 billion and debts total USUS$19.34 billion
as
of the bankruptcy filing date.
Lyondell has obtained approximately USUS$8 billion in DIP
financing
to fund continuing operations. The DIP financing includes two
credit agreements: a USUS$6.5 billion term loan, which comprises a
USUS$3.25 billion in new loans and a USUS$3.25 billion roll-up of
existing loans; and a USUS$1.57 billion asset-backed lending
facility.
LyondellBasell Industries AF S.C.A. and another affiliate were
voluntarily added to Lyondell Chemical's reorganization filing
under Chapter 11 on April 24, 2009, in order to seek protection
against claims by certain financial and U.S. trade creditors. On
May 8, 2009, LyondellBasell Industries added 13 non-operating
entities to Lyondell Chemical Company's reorganization filing
under Chapter 11 of the U.S. Bankruptcy Code. All of the entities
are U.S. companies and were added to the original Chapter 11
filing for administrative purposes.
Bankruptcy Creditors' Service, Inc., publishes Lyondell Bankruptcy
News. The newsletter tracks the Chapter 11 proceeding undertaken
by Lyondell Chemical Company and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
LYONDELL CHEMICAL: Amoco to Reject Chocolate Bayou Purchase Pacts
-----------------------------------------------------------------
Amoco Chemical Company, as predecessor-in-interest to Ineos
Olefins & Polymers USA, and Quantum Chemical Corporation, as
predecessor-in-interest to Debtor Equistar Chemicals, L.P.,
entered into an agreement for the sale and purchase of assets for
the transfer of a tract of land and chemical plant that make up a
facility known as Chocolate Bayou Plant. The Facility is located
within and surrounded by certain real property owned by Ineos
Olefins.
The consideration for the sale of the Facility was the payment of
US$44,972,340 plus additional amounts for inventories and the
entry
of the parties into an Ethylene Supply Agreement. The transfer
occurred in April 1988 pursuant to two Special Warranty Deeds
recorded in the County of Brazoria in the state of Texas.
The Purchase Agreement includes certain options known as
Repurchase Options that permit Ineos to repurchase the Facility
on the same economic terms offered by an arm's-length purchaser
or at the appraised market value upon the occurrence of certain
events. The Purchase Agreement also required the Repurchase
Options to be included in the Deeds.
At the time of the Facility transfer, the parties also entered
into 23 other agreements, including the Services Agreements,
whereby Ineos agreed to provide Equistar with certain services
and products necessary for the operation of the Facility. Each
of the Services Agreements relates to products or services
provided by Ineos for the Facility and each agreement has its own
distinct consideration, term and subject matter.
By this motion, the Debtors seek to reject the Purchase Agreement
and the Repurchase Options, as of the date of the entry of an
order granting their request.
Moreover, the Debtors seek to assume certain Service Agreements
as of the effective date of their Third Amended Joint Plan of
Reorganization, a list of which is available for free at:
http://bankrupt.com/misc/Lyondell_ServicePactstobeAssumd.pdf
Christopher R. Mirick, Esq., at Cadwalader, Wickersham & Taft
LLP, in New York, asserts that the Purchase Agreement and
Repurchase Options will impose a continuing burden on the
Debtors' estates for which the Debtors realize no commensurate
benefit. The Repurchase Options also limit the Debtors' ability
to attract prospective buyers and chill the price at which
Debtors can sell the Facility, he says. The Services Agreements,
by contrast, provide substantial benefit to the Debtors, he
points out. The Debtors need the Services Agreements, and the
services they receive pursuant to those agreements, to continue
their presence at the Facility, he explains.
To the extent that either of the Purchase Agreement or the
Repurchase Options is not executory, Ineos Olefins has only a
prepetition unsecured claim for any damages arising from the
Debtors' nonperformance under the contract, Mr. Mirick relates.
The bar date for filing that claim was June 30, 2009. The
Debtors reserve their rights regarding whether a proof of claim
has been timely filed for amounts due under the Ineos Agreements.
About Lyondell Chemical
LyondellBasell Industries is one of the world's largest polymers,
petrochemicals and fuels companies. It is the global leader in
polyolefins technology, production and marketing; a pioneer in
propylene oxide and derivatives; and a significant producer of
fuels and refined products, including biofuels. Through research
and development, LyondellBasell develops innovative materials and
technologies that deliver exceptional customer value and products
that improve quality of life for people around the world.
Headquartered in The Netherlands, LyondellBasell --
http://www.lyondellbasell.com/-- is privately owned by Access
Industries.
Basell AF and Lyondell Chemical Company merged operations in 2007
to form LyondellBasell Industries, the world's third largest
independent chemical company. LyondellBasell became saddled with
debt as part of the USUS$12.7 billion merger. On January 6, 2009,
LyondellBasell Industries' U.S. operations and one of its European
holding companies -- Basell Germany Holdings GmbH -- filed
voluntary petitions to reorganize under Chapter 11 of the U.S.
Bankruptcy Code to facilitate a restructuring of the company's
debts. The case is In re Lyondell Chemical Company, et al.,
Bankr. S.D.N.Y. Lead Case No. 09-10023). Seventy-nine Lyondell
entities, including Equistar Chemicals, LP, Lyondell Chemical
Company, Millennium Chemicals Inc., and Wyatt Industries, Inc.
filed for Chapter 11. In May 2009, one of the cases was dismissed
-- Case No. 09-10068 -- because it is duplicative of Case No. 09-
10040 relating to Debtor Glidden Latin America Holdings.
The Hon. Robert E. Gerber presides over the case. Deryck A.
Palmer, Esq., at Cadwalader, Wickersham & Taft LLP, in New York,
serves as the Debtors' bankruptcy counsel. Evercore Partners
serves as financial advisors, and Alix Partners and its subsidiary
AP Services LLC, serves as restructuring advisors. AlixPartners'
Kevin M. McShea acts as the Debtors' Chief Restructuring Officer.
Clifford Chance LLP serves as restructuring advisors to the
European entities. Lyondell Chemical estimated that consolidated
assets total USUS$27.12 billion and debts total USUS$19.34 billion
as
of the bankruptcy filing date.
Lyondell has obtained approximately USUS$8 billion in DIP
financing
to fund continuing operations. The DIP financing includes two
credit agreements: a USUS$6.5 billion term loan, which comprises a
USUS$3.25 billion in new loans and a USUS$3.25 billion roll-up of
existing loans; and a USUS$1.57 billion asset-backed lending
facility.
LyondellBasell Industries AF S.C.A. and another affiliate were
voluntarily added to Lyondell Chemical's reorganization filing
under Chapter 11 on April 24, 2009, in order to seek protection
against claims by certain financial and U.S. trade creditors. On
May 8, 2009, LyondellBasell Industries added 13 non-operating
entities to Lyondell Chemical Company's reorganization filing
under Chapter 11 of the U.S. Bankruptcy Code. All of the entities
are U.S. companies and were added to the original Chapter 11
filing for administrative purposes.
Bankruptcy Creditors' Service, Inc., publishes Lyondell Bankruptcy
News. The newsletter tracks the Chapter 11 proceeding undertaken
by Lyondell Chemical Company and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
SENSATA TECHNOLOGIES: Debt Trades at 4% Off in Secondary Market
---------------------------------------------------------------
Participations in a syndicated loan under which Sensata
Technologies B.V. is a borrower traded in the secondary market at
96.06 cents-on-the-dollar during the week ended Friday, April 2,
2010, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. This represents an increase
of 1.11 percentage points from the previous week, The Journal
relates. The Company pays 175 basis points above LIBOR to borrow
under the facility. The bank loan matures on April 27, 2 013, and
carries Moody's B1 rating and Standard & Poor's BB- rating. The
debt is one of the biggest gainers and losers among 196 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
As reported by the Troubled Company Reporter on January 28, 2010,
Sensata Technologies said fourth quarter 2009 net income was
USUS$14.1 million versus a net loss of USUS$52.2 million for the
same period in 2008. Full year 2009 net loss was USUS$27.0
million versus a net loss of USUS$134.5 million for the same
period in 2008.
Fourth quarter 2009 net revenue was USUS$338.1 million, an
increase of USUS$70.5 million or 26.3% from the fourth quarter
2008 net revenue of USUS$267.6 million. Full year 2009 net
revenue was USUS$1.134 billion, a decrease of USUS$287.7 million
or 20.2% from the full year 2008 net revenue of USUS$1.422
billion.
As of December 31, 2009, the Company had total assets of
USUS$3,163,127,000 against total liabilities of
USUS$2,776,380,000, resulting in shareholder's equity of
USUS$386,747,000.
As reported by the TCR on December 7, 2009, Moody's Investors
Service has upgraded Sensata Technologies B.V.'s Corporate Family
and Probability of Default ratings to Caa1 from Caa2, as well as
the company's senior secured credit facility to B2, senior
unsecured notes to Caa2, and senior subordinated notes to Caa3.
In a related rating action, Moody's affirmed the Company's
Speculative Grade Liquidity rating at SGL-3. The outlook is
positive.
The TCR on Nov. 4, 2009, said that Standard & Poor's affirmed the
ratings on Attleboro, Massachusetts-based Sensata Technologies,
Inc., including the 'CCC+' corporate credit rating. At the same
time, S&P revised the outlook on the company to stable from
negative.
Almelo, Netherlands-based Sensata Technologies B.V. --
http://www.sensata.com/-- supplies sensing, electrical
protection, control and power management solutions. Owned by
affiliates of Bain Capital Partners, LLC, a global private
investment firm, and its co-investors, Sensata employs
approximately 9,500 people in nine countries. Sensata's products
improve safety, efficiency and comfort for millions of people
every day in automotive, appliance, aircraft, industrial,
military, heavy vehicle, heating, air-conditioning, data,
telecommunications, recreational vehicle and marine applications.
UNIVAR NV: Bank Debt Trades at 4% Off in Secondary Market
---------------------------------------------------------
Participations in a syndicated loan under which Univar N.V. is a
borrower traded in the secondary market at 96.43 cents-on-the-
dollar during the week ended Friday, April 2, 2010, according to
data compiled by Loan Pricing Corp. and reported in The Wall
Street Journal. This represents an increase of 1.24 percentage
points from the previous week, The Journal relates. The Company
pays 300 basis points above LIBOR to borrow under the facility.
The bank loan matures on Oct. 10, 2014, and is not rated by
Moody's and Standard & Poor's. The debt is one of the biggest
gainers and losers among 196 widely quoted syndicated loans with
five or more bids in secondary trading for the week ended Friday.
Univar N.V. -- http://www.univarcorp.com/-- is one of the largest
distributors of industrial chemicals and providers of related
services to a diverse set of end markets in the US, Canada and
Europe. In April 2007, the company purchased ChemCentral
Corporation, the fourth largest chemicals distributor in the US,
for a purchase price of about US$650 million, which resulted in
the combined entities becoming the largest chemicals distributor
in North America. The company had pro forma revenues (including
ChemCentral Corporation) of US$8.3 billion for the LTM ended June
30, 2007.
=====================
S W I T Z E R L A N D
=====================
OERLIKON CORP: Losses Rises to CHF592 Million in 2009
-----------------------------------------------------
Haig Simonian at The Financial Times reports that Oerlikon
revealed weaker-than-expected 2009 results on Thursday, with
losses rising to CHF592 million (USUS$564 million). The FT
relates the results followed a CHF422 million loss in 2008 and
highlighted the scale of the task facing the group.
According to the FT, new orders dropped by almost 30% to CHF3
billion, while orders in hand declined by more than 13% to CHF997
million, reflecting weak markets and the group's problems
convincing customers, often placing contracts with long lead
times, about its long term stability. Sales in 2009 fell by
almost 38% to CHF2.88 billion, the FT says.
The FT notes the group warned that conditions remained tough, with
this year and part of 2011 would be characterized by
implementation of big operational restructuring plans.
Recapitalization
Citing the FT, the Troubled Company Reporter-Europe reported on
March 31, 2010, that Oerlikon said on March 29 its main
shareholder and bankers had agreed a CHF1 billion (USUS$939
million) recapitalization to restore the company to a more stable
financial footing. The FT disclosed the main part of the plan
involves a 19:1 rights issue, priced at CHF3.72 a share -- a
fraction of the
group's share price. The rights issue would be taken up fully by
Russian oligarch Viktor Vekselberg's Renova holding company, which
owns about 45% of Oerlikon, according to the FT. Renova, which
has suffered a severe loss on its stake since investing in 2006,
would contribute CHF447 million-CHF400 million in cash and the
rest via a conversion of debt, the FT said. The remaining CHF553
million would be offered to other shareholders, and if not taken
up would be underwritten fully by Oerlikon's lenders under a debt
for equity swap, the FT noted. The banks would waive between
CHF25 million and CHF125 million of debt, with the degree of
forgiveness depending on the take-up of the rights issue,
according to the FT.
OC Oerlikon Corporation AG Pfaeffikon -- http://www.oerlikon.com/
-- is a Swiss company engaged in the industrial sector. The
Company divides its activities into six segments: Oerlikon
Textile, providing equipment for the textile production; Oerlikon
Coating, offering protective coatings for precision tools and
components; Oerlikon Solar, which provides solutions for the
manufacturing of thin film silicon solar modules; Oerlikon Vacuum,
providing systems for producing vacuums and conveying process
gases; Oerlikon Drive Systems, which offers propulsion technology,
and Oerlikon Advanced Technologies, providing aerospace and
production systems for nanotechnology applications. The Company's
solutions are used in a range of industries, including the solar
energy, clean technologies, automotive, information technology
(IT), textile, machinery and tool manufacturing industry, as well
as in the process, space and advanced nanotechnology applications.
The Company operates worldwide through 180 sites in 37 countries.
===========================
U N I T E D K I N G D O M
===========================
BARGAIN BOOKS: Bought Out of Administration; 77 Jobs Saved
----------------------------------------------------------
Belfast Telegraph reports that a new buyer has been found for
Bargain Books after the company was placed in administration last
week.
According to the report, under the terms of the administration,
the company will continue trading with the 77 staff keeping their
jobs.
The report notes the company's directors said that rising
overheads and competition from supermarkets and book chains had
created a difficult environment for the family-owned business.
BRP GROUP: Goes Into Administration Following Poor Sales
--------------------------------------------------------
Durham Times reports that BRP Group Limited has gone into
administration for the third time in 15 months, putting 78 jobs in
Bowburn and 360 nationwide at risk. According to the report, the
administrators said the company had been unable to achieve
sufficient sales.
BRP Group Limited is a garage door firm based in Bowburn.
EMI GROUP: Talks Over GBP200 Mil. Distribution Deal Collapse
------------------------------------------------------------
Martin Arnold and Andrew Edgecliffe-Johnson at The Financial Times
report that EMI Group's talks about a GBP200 million (USUS$304
million) distribution deal collapsed, putting the company at risk
of not meeting a key bank test of its financial health.
According to the FT, an eleventh-hour attempt to sell distribution
rights in the Americas to Vivendi's Universal Music or Sony Music
fell apart over concerns about price, timing and whether the sale
could be blocked by Citigroup, which lent GBP3.2 billion for Terra
Firma's GBP4.2 billion buy-out of EMI in 2007.
EMI, the FT discloses, needed to book the cash from the proposed
five-year deal by 4.45 p.m. London time on Wednesday to avoid
breaching a quarterly test of the ratio of earnings to debt in its
loans from Citigroup.
The FT says Maltby Capital, EMI's holding company, must now return
to its earlier plan of trying to raise an "equity cure" of about
GBP120 million in new funds from investors.
Charles Allen, who became executive chairman of EMI Music after
this month's sudden exit of Elio Leoni-Sceti as chief executive of
the recorded music division, must now present Guy Hands, Terra
Firma's founder, with a new business plan which may include
further cost-cutting, asset sales or outsourcing deals, the FT
states. If Mr. Hands approves it, the plan will form the basis of
his pitch to investors, the FT states. Unless he persuades them
to inject new equity by a mid-June deadline, he risks losing
control to Citigroup of his biggest deal, the FT notes.
Going Concern Doubt
As reported by the Troubled Company Reporter-Europe on Feb. 8,
2010, The Financial Times said KPMG, EMI Group's accountants,
raised "significant doubt" about the company's ability to continue
as a going concern. The FT disclosed Guy Hands, Terra Firma's
founder and chairman, has written to investors in two of its
private equity funds asking them to inject another GBP120 million,
subject to EMI Music producing a new strategic plan. He must come
up with the money by June 14 or risk losing the company to
Citigroup, his bankers, the FT said. According to the FT,
accounts for the year to March 2009, released on February 9,
however, make clear that even if Terra Firma secures this equity,
it will face another "significant shortfall" against a test on
covenants in its loans by March 2011. Unless it can persuade Citi
to restructure its GBP3.2 billion in loans by then, investors face
further cash calls, the FT stated.
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.
ETHEL AUSTIN: Administrators Sold Business Back to Former Owner
---------------------------------------------------------------
Michael Fahy at Crain's Manchester Business reports that MCR, the
administrators for Ethel Austin, has sold the business back to its
previous owner Elaine Macpherson.
According to the report, under the terms of the deal, which was
completed Thursday, Ms. Macpherson will buy back the business and
assets of the firm, including 90 of its stores, through a new
vehicle called Life & Style Retail Ltd.
"This is positive news for the 1,183 employees who were facing an
uncertain future," the report quoted joint administrator Geoff
Bouchier as saying. "We are pleased with the result and believe
this is a suitable outcome, especially considering the tough
market and the lasting financial pressures from the recession."
The administrators added that no purchaser has been found for any
of the 41 stores that are due to close over the next two weeks,
the report notes.
Ethel Austin is one of Britain's value clothing retailers with a
nationwide network of stores extending from Scotland to the South
West, and from Wales to the South East. The business was
established more than 70 years ago and has grown to become one
of Britain's leading value clothing retailers with a national
presence.
EXCEL SECURITIES: In Administration; Owes GBP17.5 Mil. to Banks
---------------------------------------------------------------
Simon Binns at Crain's Manchester Business reports that Excel
Securities has gone into administration. The report relates Paul
Stanley, partner at the Manchester office of Begbies Traynor, was
appointed administrator of the company.
"There will be no redundancies in the short term. We will spend
the coming weeks analyzing the company's financial position and
determine what the best route will be," the report quoted
Mr. Stanley as saying. "It comes as no surprise that a company
which was providing bridging finance on property deals has found
itself in trouble given the lack of liquidity in the market."
According to the report, the company owes GBP17.5 million to three
funding banks, GBP6 million to other investors and GBP500,000 to
creditors.
Excel Securities is a bridging loans firm based in Manchester.
The company employs six people from its Mosley Street office.
LASER ELECTRICAL: In Administration; KPMG Seeks Buyer
-----------------------------------------------------
Symon Ross at Belfast Telegraph reports that Laser Electrical Ltd.
has gone into administration. The report relates the directors of
the company, which has 10 stores and 140 full and part-time
employees, called in administrators KPMG late Thursday after
running into cashflow difficulties.
According to the report, John Hansen, joint administrator, said
Laser's directors had been in negotiations to bring in new
investment over the past few months but had not been successful.
The report notes Mr. Hansen said that falling turnover, a squeeze
on profit margins and general economic uncertainty have led to its
problems.
"All stores have been closed until further notice while the Joint
Administrators carry out an assessment of the business and the
options for the way forward," the report quoted Mr. Hansen as
saying.
Mr. Hansen, as cited in the report, said while the process is
ongoing, employees have been advised not to return to work until
this week. He said that the administrators would try to find a
buyer this week in order to save their jobs, according to the
report. If one could not be found it is likely that the company's
stock would be sold and the business closed, the report states.
Northern Ireland-based Laser Electrical Ltd. sells electrical
products.
PFL LIMITED: In Administration; MCR Appointed
---------------------------------------------
Stephen Clancy and David Whitehouse of MCR were appointed joint
administrators of PFL Limited on March 19, 2010.
The Company was incorporated on February 1, 1999, as the
subsidiary of a registered charity, Partnership for Learning,
based in South Merseyside.
The Company was initially incorporated to meet the training and
development requirements of the three major employers in the area;
Jaguar Land Rover, Novartis and Eli Lilly. The objective was to
improve the competitiveness of local companies by creating a
workforce with the relevant skills to attract new employers into
the region.
During September 2009, PFL Centre of Excellence Limited purchased
100% of the share capital of the Company from the Charity.
A corollary of factors led to the Company's financial position
becoming untenable and the subsequent appointment of joint
administrators.
The Company is continuing to trade in administration on a
'business as usual basis' and the joint administrators are hopeful
that a going concern sale of the business and assets will be
achieved shortly.
YOUR SPACE: In Administration; 14 Jobs Affected
-----------------------------------------------
James Chapelard at Crain's Manchester Business reports that Your
Space Ltd. has been put into administration with the loss of 14
jobs after it failed to meet proposals set out in a company
voluntary arrangement agreed upon with creditors.
The report recalls Bill Dawson and Daniel Butters of Deloitte were
previously appointed as joint supervisors of interlocking company
voluntary arrangements, approved by the creditors in November
2009. Messrs. Dawson and Butters were appointed joint
administrators of the company, Your Space (UK) Ltd. and Work Space
(North West) Ltd. on March 26, the report notes. Your Space plc
was previously listed on AIM but had its shares cancelled on March
16, the report relates.
"During the CVA, the group was unable to dispose of key real
estate and subsequently has been unable to invest in its
contracting business," the report quoted Mr. Dawson as saying.
"As a consequence of the underperformance in the contracting
business, the conversion rate of buildings to further serviced
office space has reduced significantly, and trading performance
has fallen below that required to meet the proposals set out in
the CVA."
The report recounts that creditors owed GBP5.5 million by the firm
agreed in September 2009 to accept 20p on the pound as part of a
CVA. The biggest creditors were Bank of Ireland and HM Revenue
and Customs, the report discloses.
Your Space Ltd., previously Your Space UK plc, is a provider of
serviced office space and a developer of property, both for sale
and its own use.
===============
X X X X X X X X
===============
* BOND PRICING: For the Week March 29 to April 2, 2010
------------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRIA
-------
KOMMUNALKREDIT 4.900 6/23/2031 EUR 70.25
KOMMUNALKREDIT 4.440 12/20/2030 EUR 67.13
OESTER VOLKSBK 5.450 8/2/2019 EUR 67.00
OESTER VOLKSBK 5.270 2/8/2027 EUR 97.09
RAIFF ZENTRALBK 4.500 9/28/2035 EUR 90.91
BELGIUM
-------
FORTIS BANK 8.750 12/7/2010 EUR 19.40
BULGARIA
--------
PETROL AD-SOFIA 8.375 10/26/2011 EUR 47.13
DENMARK
-------
TRYG FORSIKRING 4.500 12/19/2025 EUR 74.37
FINLAND
-------
MUNI FINANCE PLC 1.000 2/27/2018 AUD 64.42
MUNI FINANCE PLC 0.500 9/24/2020 CAD 63.73
MUNI FINANCE PLC 1.000 10/30/2017 AUD 65.70
MUNI FINANCE PLC 0.500 3/17/2025 CAD 49.56
MUNI FINANCE PLC 1.000 11/21/2016 NZD 65.30
MUNI FINANCE PLC 0.250 6/28/2040 CAD 22.40
FRANCE
------
AIR FRANCE-KLM 4.970 4/1/2015 EUR 15.65
ALCATEL SA 4.750 1/1/2011 EUR 16.27
ALCATEL-LUCENT 5.000 1/1/2015 EUR 3.46
ALTRAN TECHNOLOG 6.720 1/1/2015 EUR 5.04
ATOS ORIGIN SA 2.500 1/1/2016 EUR 53.74
CALYON 6.000 6/18/2047 EUR 47.05
CAP GEMINI SOGET 3.500 1/1/2014 EUR 44.29
CAP GEMINI SOGET 1.000 1/1/2012 EUR 44.28
CLUB MEDITERRANE 4.375 11/1/2010 EUR 49.37
CMA CGM 5.500 5/16/2012 EUR 66.85
CMA CGM 5.500 5/16/2012 EUR 38.91
CMA CGM SA 7.250 2/1/2013 USD 64.89
CMA CGM SA 7.250 2/1/2013 USD 62.13
DEXIA MUNI AGNCY 1.000 12/23/2024 EUR 62.22
EURAZEO 6.250 6/10/2014 EUR 59.70
FAURECIA 4.500 1/1/2015 EUR 20.95
GROUPE VIAL 2.500 1/1/2014 EUR 18.12
MAUREL ET PROM 7.125 7/31/2014 EUR 18.75
NEXANS SA 4.000 1/1/2016 EUR 71.08
PEUGEOT SA 4.450 1/1/2016 EUR 31.10
PUBLICIS GROUPE 3.125 7/30/2014 EUR 36.02
PUBLICIS GROUPE 1.000 1/18/2018 EUR 46.23
RHODIA SA 0.500 1/1/2014 EUR 45.73
SOC AIR FRANCE 2.750 4/1/2020 EUR 20.84
SOITEC 6.250 9/9/2014 EUR 12.84
TEM 4.250 1/1/2015 EUR 59.52
THEOLIA 2.000 1/1/2014 EUR 14.60
VALEO 2.375 1/1/2011 EUR 46.54
ZLOMREX INT FIN 8.500 2/1/2014 EUR 40.25
ZLOMREX INT FIN 8.500 2/1/2014 EUR 40.25
GERMANY
-------
DEPFA PFANDBRIEF 6.759 2/22/2019 EUR 65.39
DEUTSCHE BK LOND 1.000 3/31/2027 USD 44.47
ESCADA AG 7.500 4/1/2012 EUR 17.24
EUROHYPO AG 5.000 5/15/2027 EUR 94.40
L-BANK FOERDERBK 0.500 5/10/2027 CAD 44.79
LB BADEN-WUERTT 5.250 10/20/2015 EUR 34.24
LB BADEN-WUERTT 2.500 1/30/2034 EUR 68.98
QIMONDA FINANCE 6.750 3/22/2013 USD 4.13
RENTENBANK 1.000 3/29/2017 NZD 70.37
SOLON AG SOLAR 1.375 12/6/2012 EUR 45.25
GREECE
------
HELLENIC REP I/L 2.300 7/25/2030 EUR 71.84
HELLENIC REPUB 3.000 4/30/2019 JPY 74.61
HELLENIC REPUBLI 4.600 9/20/2040 EUR 74.42
HELLENIC REPUBLI 4.500 9/20/2037 EUR 74.03
YIOULA GLASSWORK 9.000 12/1/2015 EUR 56.42
YIOULA GLASSWORK 9.000 12/1/2015 EUR 55.13
HUNGARY
-------
REP OF HUNGARY 2.110 10/26/2017 JPY 72.50
IRELAND
-------
ALLIED IRISH BKS 5.625 11/29/2030 GBP 74.00
ALLIED IRISH BKS 5.250 3/10/2025 GBP 71.73
DEPFA ACS BANK 0.500 3/3/2025 CAD 34.70
DEPFA ACS BANK 4.900 8/24/2035 CAD 67.31
DEPFA ACS BANK 5.125 3/16/2037 USD 74.49
DEPFA ACS BANK 5.125 3/16/2037 USD 75.53
IRISH NATIONWIDE 5.500 1/10/2018 GBP 64.89
IRISH PERM PLC 7.284 2/15/2035 EUR 66.09
ITALY
-----
BANCA INTESA SPA 6.984 2/7/2035 EUR 57.88
BEATRICE FOODS 1.000 11/19/2026 USD 29.00
LUXEMBOURG
----------
ARCELORMITTAL 7.250 4/1/2014 EUR 36.88
BREEZE 6.708 4/19/2027 EUR 62.75
BREEZE 4.524 4/19/2027 EUR 69.08
GALLERY CAPITAL 10.125 5/15/2013 USD 19.95
GLOBAL YATIRIM H 9.250 7/31/2012 USD 69.25
LIGHTHOUSE INTL 8.000 4/30/2014 EUR 69.18
LIGHTHOUSE INTL 8.000 4/30/2014 EUR 69.20
NETHERLANDS
-----------
AI FINANCE B.V. 10.875 7/15/2012 USD 66.13
APP INTL FINANCE 11.750 10/1/2005 USD 1.05
ARPENI PR INVEST 8.750 5/3/2013 USD 66.30
ARPENI PR INVEST 8.750 5/3/2013 USD 64.63
BK NED GEMEENTEN 0.500 6/27/2018 CAD 71.73
BK NED GEMEENTEN 0.500 2/24/2025 CAD 48.82
BRIT INSURANCE 6.625 12/9/2030 GBP 72.17
DGS INTL FIN BV 10.000 6/1/2007 USD 0.01
ELEC DE CAR FIN 8.500 4/10/2018 USD 57.75
EM.TV FINANCE BV 5.250 5/8/2013 EUR 5.21
ENERGY GROUP O/S 7.550 10/15/2027 USD 18.00
ENERGY GROUP O/S 7.425 10/15/2017 USD 18.00
INDAH KIAT INTL 12.500 6/15/2006 USD 0.01
INDAH KIAT INTL 11.875 6/15/2002 USD 0.01
IVG FINANCE BV 1.750 3/29/2017 EUR 74.84
NATL INVESTER BK 25.983 5/7/2029 EUR 41.77
NED WATERSCHAPBK 0.500 3/11/2025 CAD 49.31
Q-CELLS INTERNAT 1.375 2/28/2012 EUR 67.96
Q-CELLS INTERNAT 5.750 5/26/2014 EUR 66.33
RBS NV EX-ABN NV 2.910 6/21/2036 JPY 73.02
TEMIR CAPITAL 9.000 11/24/2011 USD 30.50
TEMIR CAPITAL 9.500 5/21/2014 USD 33.25
TURANALEM FIN BV 8.500 2/10/2015 USD 42.98
TURANALEM FIN BV 8.000 3/24/2014 USD 43.64
TURANALEM FIN BV 8.000 3/24/2014 USD 43.25
TURANALEM FIN BV 7.750 4/25/2013 USD 44.08
TURANALEM FIN BV 6.250 9/27/2011 EUR 43.46
TURANALEM FIN BV 8.250 1/22/2037 USD 44.50
TURANALEM FIN BV 8.250 1/22/2037 USD 44.29
NORWAY
------
EKSPORTFINANS 0.500 5/9/2030 CAD 38.39
NORSKE SKOGIND 7.000 6/26/2017 EUR 69.25
POLAND
------
POLAND-REGD-RSTA 2.810 11/16/2037 JPY 62.59
REP OF POLAND 3.220 8/4/2034 JPY 71.75
REP OF POLAND 2.620 11/13/2026 JPY 72.88
REP OF POLAND 5.408 10/19/2035 USD 73.91
REP OF POLAND 3.300 6/16/2038 JPY 70.32
REP OF POLAND 2.648 3/29/2034 JPY 62.93
REP OF POLAND 4.250 7/20/2055 EUR 72.99
RUSSIA
------
ROSSELKHOZBANK 11.500 9/27/2017 RUB 106.79
SPAIN
-----
BANCAJA EMI SA 2.755 5/11/2037 JPY 65.30
BBVA SUB CAP UNI 2.750 10/22/2035 JPY 72.53
MINICENTRALES 4.810 11/29/2034 EUR 66.45
SWEDEN
------
SWEDISH EXP CRED 0.500 12/17/2027 USD 47.68
SWITZERLAND
-----------
UBS AG JERSEY 3.220 7/31/2012 EUR 57.90
UBS AG JERSEY 10.140 12/30/2011 USD 14.55
UBS AG JERSEY 9.350 9/21/2011 USD 67.10
UBS AG JERSEY 11.150 8/31/2011 USD 40.68
UBS AG JERSEY 10.360 8/19/2011 USD 54.00
UBS AG JERSEY 10.500 6/16/2011 USD 72.18
UBS AG JERSEY 10.650 4/29/2011 USD 16.25
UBS AG JERSEY 11.030 4/21/2011 USD 21.50
UBS AG JERSEY 10.820 4/21/2011 USD 22.37
UBS AG JERSEY 16.160 3/31/2011 USD 45.16
UBS AG JERSEY 10.990 3/31/2011 USD 30.88
UBS AG JERSEY 11.400 3/18/2011 USD 25.78
UBS AG JERSEY 11.330 3/18/2011 USD 18.08
UBS AG JERSEY 12.800 2/28/2011 USD 35.02
UBS AG JERSEY 8.250 2/28/2011 USD 70.78
UBS AG JERSEY 15.250 2/11/2011 USD 12.30
UBS AG JERSEY 10.000 2/11/2011 USD 61.60
UBS AG JERSEY 16.170 1/31/2011 USD 13.82
UBS AG JERSEY 14.640 1/31/2011 USD 38.80
UBS AG JERSEY 13.900 1/31/2011 USD 36.15
UBS AG JERSEY 10.000 10/25/2010 USD 68.25
UBS AG JERSEY 9.500 8/31/2010 USD 68.80
UBS AG JERSEY 9.000 8/13/2010 USD 67.35
UBS AG JERSEY 9.350 7/27/2010 USD 62.95
UBS AG JERSEY 9.000 7/19/2010 USD 62.25
UBS AG JERSEY 9.000 7/2/2010 USD 62.60
UBS AG JERSEY 9.000 6/11/2010 USD 62.23
UBS AG JERSEY 9.000 5/18/2010 USD 63.98
UNITED KINGDOM
--------------
ALPHA CREDIT GRP 2.940 3/4/2035 JPY 40.05
AMDOCS LIMITED 0.500 3/15/2024 USD 75.00
BARCLAYS BK PLC 11.650 5/20/2010 USD 49.11
BARCLAYS BK PLC 10.600 7/21/2011 USD 42.19
BARCLAYS BK PLC 8.550 1/23/2012 USD 11.41
BARCLAYS BK PLC 9.000 6/30/2011 USD 44.71
BARCLAYS BK PLC 7.610 6/30/2011 USD 54.33
BRADFORD&BIN BLD 5.750 12/12/2022 GBP 30.13
BRADFORD&BIN BLD 5.500 1/15/2018 GBP 30.04
BRADFORD&BIN BLD 2.875 10/16/2031 CHF 74.04
BRADFORD&BIN PLC 6.625 6/16/2023 GBP 30.25
BRADFORD&BIN PLC 7.625 2/16/2049 GBP 32.13
BROADGATE FINANC 5.098 4/5/2033 GBP 76.38
CHELSEA BUILDING 5.875 3/7/2019 GBP 52.51
EFG HELLAS PLC 2.760 5/11/2035 JPY 71.84
ENTERPRISE INNS 6.375 9/26/2031 GBP 75.28
ENTERPRISE INNS 6.875 5/9/2025 GBP 80.81
ENTERPRISE INNS 6.500 12/6/2018 GBP 86.44
F&C ASSET MNGMT 6.750 12/20/2026 GBP 67.52
GLOBAL CROSS FIN 10.750 12/15/2014 USD 105.06
HBOS PLC 4.500 3/18/2030 EUR 73.33
NATL GRID GAS 1.754 10/17/2036 GBP 41.21
NATL GRID GAS 1.771 3/30/2037 GBP 46.55
NBG FINANCE PLC 2.755 6/28/2035 JPY 67.21
NOMURA BANK INTL 0.800 12/21/2020 EUR 60.46
NORTHERN ROCK 9.375 10/17/2021 GBP 71.75
NORTHERN ROCK 10.375 3/25/2018 GBP 75.83
NORTHERN ROCK 5.750 2/28/2017 GBP 61.75
NORTHERN ROCK 4.574 1/13/2015 GBP 69.77
OJSC BANK NADRA 9.250 6/28/2010 USD 28.50
PUNCH TAVERNS 6.468 4/15/2033 GBP 72.35
ROYAL BK SCOTLND 4.700 7/3/2018 USD 73.00
ROYAL BK SCOTLND 4.243 1/12/2046 EUR 57.04
RSL COMM PLC 9.875 11/15/2009 USD 3.00
SPIRIT ISSUER 5.472 12/28/2028 GBP 73.94
TXU EASTERN FNDG 6.450 5/15/2005 USD 2.25
TXU EASTERN FNDG 6.750 5/15/2009 USD 2.50
UNIQUE PUB FIN 6.464 3/30/2032 GBP 66.99
WESSEX WATER FIN 1.369 7/31/2057 GBP 22.62
*********
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 USUS$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-Fernandez, 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 USUS$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 USUS$25 each. For subscription information,
contact Christopher Beard at 240/629-3300.
* * * End of Transmission * * *