/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/100602.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Wednesday, June 2, 2010, Vol. 11, No. 102 Headlines B E L A R U S BELAGROPROMBANK JSC: S&P Assigns 'B+' Counterparty Credit Rating C Y P R U S REMEDIAL CYPRUS: May Sell Support Vessels to Bondholders G E R M A N Y ALERIS INTERNATIONAL: U.S. & German Units Emerge from Bankruptcy ALMATIS BV: Wins U.S. Court's Final Nod to Pay Critical Vendors ARCANDOR AG: Court Postpones Ruling on Karstadt Insolvency Plan COMMERZBANK AG: Loses Bid to Halt Suit Over Dresdner Bonuses GENERAL MOTORS: GM & Opel Workers Reach Accord G R E E C E WIND HELLAS: Ernst & Young Faces Probe Over Insolvency I R E L A N D ELAN CORP: Decision on EDT Business Expected Next Year ICR MOTOR: Niall O'Byrne Acquires Two Car Dealerships MEATH HOTEL: Put Into Receivership by AIB * IRELAND: Liquidator Actions Up 46% in 2009, ODCE Report Shows L U X E M B O U R G HIGH TIDE: Moody's Junks Ratings on Class A Notes From 'B3' N O R W A Y CECON ASA: Says May Face Liquidation or Bankruptcy in 2Q 2010 R O M A N I A * Fitch Changes Outlook on Romanian City of Brasov to Stable R U S S I A BANK UNIASTRUM: Moody's Affirms 'Ba2' Long-Term Global Rating MECHEL OAO: Appoints Banks to Coordinate US$2BB Loan Refinancing RBC INFORMATION: To Begin Paying US$230 Mil. to Creditors Today ROSPROMBANK OOO: Moody's Affirms 'B1' Long-Term Global Rating * S&P Gives Stable Outlook on Novosibirsk; Keeps 'BB-' Rating T U R K E Y ORAL ET: Red Meat Crisis Blamed for Bankruptcy U N I T E D K I N G D O M MADOFF INT'L: European Banks Reimburse US$15.5BB Investor Losses ROYAL BANK: NAB, Santander Lead Bidding Race for 300 Branches ROYAL BANK: Dollar Borrowing Costs 25% Higher Than Some Rivals TATA MOTORS: Jaguar Land Rover Does Not Rule Out Plant Closure TATA STEEL: European Unit's Recovery Fails to Save TCP Business * UK: Standard Chartered CEO Says Bank Failures to Hit Depositors ********* ============= B E L A R U S ============= BELAGROPROMBANK JSC: S&P Assigns 'B+' Counterparty Credit Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services said that it had assigned its 'B+' long-term and 'B' short-term local and foreign currency counterparty credit ratings to Belagroprombank JSC, based in the Republic of Belarus (foreign currency B+/Negative/B, local currency BB/Negative/B). The outlook is negative. "The ratings on Belagroprombank reflect the macroeconomic imbalances and high-risk operating environment for banks based in Belarus, as well as the bank's high dependence on state deposits, limited funding and lending diversification, and its plans for rapid asset growth during economic recession," said Standard & Poor's credit analyst Sergey Voronenko. These negative factors are partly mitigated by a very high likelihood of extraordinary government support, the bank's strong domestic market position, adequate capitalization, and limited wholesale market funding. Belagroprombank is the second-largest bank in Belarus, and specializes in agriculture. According to its methodology, S&P classify the bank as a government-related entity and factor into its ratings a "very high" likelihood of timely and sufficient extraordinary government support for Belagroprombank, based on its assessment of the bank's: * "Very important" role for the local economy as the largest lender to the strategic agricultural sector, employing about one-third of Belarus' working population and representing 8% of its GDP in 2009; and * "Very strong" link with the government, given its full ownership and strong track record of support to Belagroprombank. S&P incorporates one notch of uplift above the stand-alone credit profile into the long-term ratings on the bank to reflect this expected support. "The negative outlook mirrors that on Belarus and reflects low levels of external liquidity owing to very high current account deficits, which in turn represent risks for the predominantly state-owned Belarusian banking sector and economy," said Mr. Voronenko. Further rating actions on the bank could result from changes to the sovereign foreign currency ratings and transfer and convertibility assessment, but not necessarily, as they are not automatically linked. Should S&P lower the sovereign foreign currency ratings and T&C assessment, it would likely trigger a similar rating action on the bank. Moreover, if S&P sees the likelihood of timely and sufficient extraordinary government support reducing, it might also lead us to downgrade the bank, if the bank's stand-alone credit profile had not improved. The possibility of ratings upside in the near-term is low and would be possible only if S&P raised the sovereign foreign currency ratings and T&C assessment. =========== C Y P R U S =========== REMEDIAL CYPRUS: May Sell Support Vessels to Bondholders -------------------------------------------------------- Bill Rochelle at Bloomberg News reports that Remedial (Cyprus) Public Co. Ltd. received authority to sell its two elevated support vessels for the offshore oil and gas industry. There were no bids submitted topping the offer from secured bondholders, owed US$230 million, to purchase the vessels in exchange for US$120 million in debt plus whatever is outstanding on the US$5 million post-bankruptcy loan. The bondholders are also paying costs to cure contract defaults. After deducting money in an escrow fund for their benefit, bondholders are owed a net of US$177 million, according to a court filing. About Remedial (Cyprus) Based in Limassol, Cyprus, Remedial (Cyprus) Public Company owns and operates self-propelled jack up rigs called Elevating Support Vessels. The vessels facilitate offshore well intervention activities and work-over services. Remedial (Cyprus) Public Company Ltd. -- dba Brufani Shipmanagement Limited and Remedial Cyprus Limited -- filed for Chapter 11 bankruptcy protection on February 17, 2010 (Bankr. S.D.N.Y. Case No. 10-10782). Kenneth A. Rosen, Esq., at Lowenstein Sandler, P.C., assists the Company in its restructuring effort. The Company estimated its assets and debts at US$100,000,001 to US$500,000,000. ============= G E R M A N Y ============= ALERIS INTERNATIONAL: U.S. & German Units Emerge from Bankruptcy ---------------------------------------------------------------- Aleris International, Inc., has emerged from Chapter 11, having completed its financial and operational restructuring. Steven J. Demetriou, Aleris Chairman and CEO, said, "We have used the past 15 months to reduce costs and significantly improve our operations worldwide, while delivering value to our customers. Today we are well positioned to compete in the global marketplace, with significantly enhanced financial flexibility and a strong production platform. We will continue to build on this foundation for the benefit of all our stakeholders." "I want to take this opportunity to reiterate the appreciation for all of our hard-working employees around the world who have helped make our restructuring a success and who will be an important part of our future. In addition, I would like to thank our creditors, who demonstrated confidence in Aleris by voting to accept our plan of reorganization and participating in the rights offering conducted as part of the plan." Aleris is a privately held company, majority owned by a committed ownership group led by certain investment funds managed by Oaktree Capital Management, L.P., affiliates of Apollo Management, L.P., and Sankaty Advisors, LLC. In conjunction with its emergence from Chapter 11, Aleris closed on its rights offering in the amount of US$609 million, which is comprised of US$45 million in 10 year unsecured Notes and up to US$564 million in new equity. Additionally, Aleris has a new, fully committed, US$500 million asset based revolving credit facility and over US$300 million in liquidity. Aleris Deutschland Holding GmbH, a non-operating holding company with no employees or operating assets which conducts no commercial business, has also emerged from Chapter 11. About Aleris International Aleris International, Inc., produces and sells aluminum rolled and extruded products. Aleris operates primarily through two reportable business segments: (i) global rolled and extruded products and (ii) global recycling. Headquartered in Beachwood, Ohio, a suburb of Cleveland, the Company operates over 40 production facilities in North America, Europe, South America and Asia, and employs approximately 8,400 employees. Aleris operates 27 production facilities in the United States with eight production facilities that provided rolled and extruded aluminum products and 19 recycling production plants. Aleris International, Inc., aka IMCO Recycling Inc., and various affiliates filed for bankruptcy on February 12, 2009 (Bankr. D. Del. Case No. 09-10478). The Hon. Brendan Linehan Shannon presides over the cases. Stephen Karotkin, Esq., and Debra A. Dandeneau, Esq., at Weil, Gotshal & Manges LLP in New York, serve as lead counsel for the Debtors. L. Katherine Good, Esq., and Paul Noble Heath, Esq., at Richards, Layton & Finger, P.A. In Wilmington, Delaware, serves as local counsel. Moelis & Company LLC, acts as financial advisors; Alvarez & Marsal LLC as restructuring advisors, and Kurtzman Carson Consultants LLC as claims and noticing agent for the Debtors. As of December 31, 2008, the Debtors had total assets of US$4,168,700,000; and total debts of US$3,978,699,000. Bankruptcy Creditors' Service, Inc., publishes Aleris International Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Aleris International, Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945- 7000) ALMATIS BV: Wins U.S. Court's Final Nod to Pay Critical Vendors --------------------------------------------------------------- Almatis B.V. and its affiliated debtors obtained final approval from the U.S. Bankruptcy Court to earmark as much as $400,000 to pay the pre-bankruptcy claims of their critical vendors, who agree to continue to supply them goods or provide services on customary trade terms or on other favorable terms acceptable to them. Customary trade terms refer to the normal trade terms, practices and programs that were most favorable to the Debtors in effect prepetition, or other trade terms as agreed by the Debtors and the critical vendor so long as the latter extends trade credit to the Debtors. In an order dated May 17, 2010, the Court authorized the Debtors to enter into letter agreements with the critical vendors, if appropriate. The Debtors' inability to enter into the agreements, however, will not preclude them from paying the claims of the critical vendors, the Court ruled. Pursuant to the Court's order, the Debtors can terminate a letter agreement, together with the other benefits granted to the critical vendor, if the vendor has not complied with the agreement or has failed to continue to provide customary trade terms following the date of the agreement. The critical vendor letter agreement can be reinstated if the Debtors' decision is reversed by the Court for good cause; the default is fully cured by the critical vendor not later than five business days after the initial default occurred; or if the Debtors reach a subsequent agreement with the vendor. If a letter agreement is terminated or if a critical vendor that has received payment of a prepetition claim later refuses to continue to supply goods or services, the Debtors can declare the payment of the claim a voidable postpetition transfer; and return the parties to their original positions by reinstating the claim and demanding the immediate return of the Debtors' payment of that claim. The Court also authorizes the Debtors to pay claims of any creditor entitled to administrative priority. Payments on account of those claims will not count against the critical vendor's claims cap. Moreover, the Court authorizes all banks and other financial institutions to honor and pay any checks and transfers in relation to the critical vendor claims payment, regardless of whether those checks or transfers have been issued before or after the Debtors' bankruptcy filing. About Almatis Group Alamtis B.V., and its affiliates filed for Chapter 11 on April 30, 2010 (Bankr. S.D.N.Y. Lead Case No. 10-12308). Almatis B.V. estimated assets of US$500 million to US$1 billion and debts of more than US$1 billion as of the bankruptcy filing. Almatis, operationally headquartered in Frankfurt, Germany, is a global leader in the development, manufacture and supply of premium specialty alumina products. With nearly 900 employees worldwide, the company's products are used in a wide variety of industries, including steel production, cement production, non- ferrous metal production, plastics, paper, ceramics, carpet manufacturing and electronic industries. Almatis operates nine production facilities worldwide and serves customers around the world. Until 2004, the business was known as the chemical business of Alcoa. Almatis is now owned by Dubai International Capital LLC, the international investment arm of Dubai Holding. Michael A. Rosenthal, Esq., at Gibson, Dunn & Crutcher LLP, serves as counsel to the Debtors in the Chapter 11 cases. Linklaters LLP is the special English and German counsel and De Brauw Blackstone Westbroek N.V. is Dutch counsel. Epiq Bankruptcy Solutions, LLC, serves as claims and notice agent. Bankruptcy Creditors' Service, Inc., publishes Almatis Bankruptcy News. The newsletter tracks the Chapter 11 proceeding and ancillary foreign proceedings undertaken by Almatis B.V., and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) ARCANDOR AG: Court Postpones Ruling on Karstadt Insolvency Plan --------------------------------------------------------------- Eva Kuehnen at Reuters reports that the district court in Essen on Monday postponed its ruling on the insolvency plan of Arcandor AG's German department store chain Karstadt to next week as the search for a new investor is taking longer than expected. According to Reuters, the court had initially planned to rule on Monday whether Karstadt's insolvency plan was viable, but postponed its decision to June 10 after a committee of Karstadt's creditors said it needed more time to assess bids. Reuters says a contract with a new investor is one of the key prerequisites for the insolvency plan, and a break-up of Karstadt looms if the plan fails to win approval by the court. As reported by the Troubled Company Reporter-Europe on June 1, 2010, Reuters said a fourth potential bidder for Karstadt has emerged. Reuters noted the spokesman declined to identify the interested party that may compete against the known bidders, Goldman Sachs-led consortium Highstreet, buyout firm Triton and billionaire Nicolas Berggruen, who had submitted detailed offers by a May 28 deadline. Reuters related the committee of creditors reviewing the offers for Karstadt on Friday said it expected to pick an investor by June 9. According to Reuters, Germany's Der Spiegel magazine reported on Saturday that St. Petersburg, Russia- based businessman Artur Pakhomov had made an offer in the mid- double-digit million euro range to buy the entirety of Karstadt. Reuters disclosed the magazine, which did not cite its sources, said Mr. Pakhomov was willing to finance Karstadt's Christmas 2010 sales season and also planned to invest around EUR80 million per year to secure Karstadt's long-term viability and develop the chain internationally. About Arcandor AG Germany-based Arcandor AG (FRA:ARO) -- http://www.arcandor.com/-- formerly KarstadtQuelle AG, is a tourism and retail group. Its three core business areas are tourism, mail order services and department store retail. The Company's business areas are covered by its three operating segments: Thomas Cook, Primondo and Karstadt. Thomas Cook Group plc is a tour operator with operations in Europe and North America, set up as a result of a merger between MyTravel and Thomas Cook AG. It also operates the e-commerce platform, Thomas Cook, supporting travel services. Primondo has a portfolio of European universal and specialty mail order companies, including the core brand Quelle. Karstadt operates a range of department stores, such as cosmopolitan stores, including KaDeWe (Kaufhaus des Westens), Karstadt Oberpollinger and Alsterhaus; Karstadt brand department stores; Karstadt sports department stores, offering sports goods in a variety of retail outlets, and a portal, karstadt.de that offers online shopping, among others. As reported by the Troubled Company Reporter-Europe, a local court in Essen formally opened insolvency proceedings for Arcandor on September 1, 2009. The proceedings started for the Arcandor holding company and for 14 units, including the Karstadt department-store chain and Primondo mail-order division. Arcandor filed for bankruptcy protection after the German government turned down its request for loan guarantees. On June 8, 2009, the government rejected two applications for help by the company, which employs 43,000 people. The retailer sought loan guarantees of EUR650 million (US$904 million) from Germany's Economy Fund program. It also sought a further EUR437 million from a state-owned bank. COMMERZBANK AG: Loses Bid to Halt Suit Over Dresdner Bonuses ------------------------------------------------------------ James Lumley and Lindsay Fortado at Bloomberg News report that Commerzbank AG failed in its attempts to halt a lawsuit from more than 100 current and former bankers at its Dresdner Kleinwort unit. Bloomberg relates Justice Peregrine Simon in London ruled Friday that he hasn't been given enough evidence to dismiss the case. According to Bloomberg, Judge Simon also ruled that any claims based solely on events prior to a December letter to staff regarding their bonuses would have "no realistic chance of success" if they went to trial. Bloomberg recalls at a hearing earlier this month, lawyers for Commerzbank said that the collapse of Lehman Brothers Holdings Inc. and its affect on the financial markets made it impractical for the bank to pay what it considered to be discretionary bonuses. The bankers say they were paid a 10th of what they were owed in a contract with Dresdner Kleinwort before it was acquired by Commerzbank, Bloomberg discloses. The bank argued May 4 that it wasn't obligated to pay the money, Bloomberg recounts. Bloomberg notes Friday's ruling said that in December 2008, Dresdner Kleinwort's human resources department sent letters to employees detailing discretionary bonus arrangements for that year. Prior to the letters there had been other announcements and statements from the bank about payouts referred to by claimants, Bloomberg states. "I have concluded that a cause of action based solely on the announcement and subsequent statements prior to the December 19 letters has no realistic chance of success at trial," Bloomberg quoted Judge Simon as saying. Capital Measures On May 21, 2010, the Troubled Company Reporter-Europe, citing Dow Jones Newswires, reported that Commerzbank said its shareholders had approved a proposal that allows it to raise additional capital more flexibly and sets the bank up to begin repaying its bailout from the German government. Dow Jones disclosed the approval gives Commerzbank authorization to raise capital of up to a nominal value of EUR1.535 billion, or around 590 million shares. Dow Jones said the measures, approved by shareholders at Commerzbank's annual general meeting, further authorize the bank to issue conditional capital such as convertible bonds with a nominal value of up to EUR4 billion. Headquartered in Frankfurt am Main, Germany, Commerzbank AG -- http://www.commerzbank.com/-- is the parent company of a financial services group active around the world. The group's operating business is organized into six segments providing each other with mutually beneficial synergies: Private and Business Customers, Mittelstandsbank, Central and Eastern Europe , Corporates & Markets, Commercial Real Estate and Public Finance and Treasury. * * * As reported by the Troubled Company Reporter-Europe on May 6, 2010, Fitch Ratings affirmed Germany-based Commerzbank AG's Long- term Issuer Default Rating at 'A+' with a Stable Outlook and Short-term IDR at 'F1+'. At the same time, the Individual rating was upgraded to 'D' from 'D/E'. GENERAL MOTORS: GM & Opel Workers Reach Accord ---------------------------------------------- Pursuant to an agreement, workers at Adam Opel GmbH have allowed General Motors Co. to implement "unspecified job cuts and concessions slash" to slash labor costs by $332.5 million as part of an effort to restructure Opel. The Agreement provides that most of the savings will come out of Opel's operations in Germany. The deal also includes a pledge to produce a small Opel car. "We need to keep innovating in new technologies and products to maintain Opel-Vauxhall as a leading European automotive company that can compete worldwide," Mr. Reilly said in a statement to The Detroit News. Workers have also agreed to (i) give up a one-time bonus and accept reduced vacation and Christmas bonuses, and (ii) postpine a previously negotiated 2.7 percent salary hike. "The negotiations were not easy," Opel Chief Executive Nick Reilly told the newspaper, noting that "the company was damaged by the global crisis and has to restructure to recognize a lower industry." To further its restructuring efforts, GM has also pledged to increase funding for the reorganization of its Adam Opel GmbH unit, Businessweek reports, citing GM's German-aid application. After European governments compelled the Company to up its EUR600 million in equity that it originally pledged, GM tripled its contribution in March 2010, the report adds. "I'm very skeptical about GM's request for state aid," Joachim Pfeiffer, parliamentary spokesman on economic policies for Chancellor Angela Merkel's Christian Democratic Union, said in a telephone interview with Businessweek, adding that "it's clear that GM definitely has enough cash to restructure Opel by themselves." GM plans to seek bank loans and is asking the German government only for loan guarantees, not grants, Opel spokesman Stefan Weinmann told The Detroit News. The German government is expected to make a decision in early June. According to the German news weekly Focus, Mr. Reilly wrote to Economy Minister Rainer Bruederle, and expressed the need for $1.6 billion in aid, the newspaper said. About General Motors General Motors Company -- http://www.gm.com/-- is one of the world's largest automakers, tracing its roots back to 1908. With its global headquarters in Detroit, GM employs 209,000 people in every major region of the world and does business in some 140 countries. GM and its strategic partners produce cars and trucks in 34 countries, and sell and service these vehicles through these brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Opel, Vauxhall and Wuling. GM's largest national market is the United States, followed by China, Brazil, the United Kingdom, Canada, Russia and Germany. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM acquired its operations from General Motors Company, n/k/a Motors Liquidation Company, on July 10, 2009, pursuant to a sale under Section 363 of the Bankruptcy Code. Motors Liquidation or Old GM is the subject of a pending Chapter 11 reorganization case before the U.S. Bankruptcy Court for the Southern District of New York. At December 31, 2009, GM had total assets of US$136.295 billion against total liabilities of US$107.340 billion. At December 31, 2009, total equity was US$21.249 million. About Motors Liquidation General Motors Corporation and three of its affiliates filed for Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case No. 09-50026). General Motors changed its name to Motors Liquidation Co. following the sale of its key assets to a company 60.8% owned by the U.S. Government. The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as the Chief Executive Officer for Motors Liquidation Company. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. Bankruptcy Creditors' Service, Inc., publishes General Motors Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Motors Corp. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) =========== G R E E C E =========== WIND HELLAS: Ernst & Young Faces Probe Over Insolvency ------------------------------------------------------ Simon Watkins at Mail Online reports that the Institute of Chartered Accountants in England and Wales has launched an investigation into the conduct of Ernst & Young in the insolvency of Wind Hellas. The report recalls the company moved its headquarters to Britain in August 2009 and went bust three months later, costing creditors more than GBP1.3 billion. According to the report, critics claimed the company moved to take advantage of easy bankruptcy laws, in particular a process called a pre-pack administration. In the case of the Wind Hellas pre-pack, the company went bust but was quickly bought from the administrators by its previous owner, Egyptian telecoms billionaire Naguib Sawiris, the report discloses. The report says hedge fund boss Bertrand des Pallieres, who lost millions in the Wind Hellas insolvency, claims there was a conflict of interest for E&Y, whose partner Maggie Mills was appointed administrator to Wind Hellas in Britain and agreed to the sale of the assets back to Sawiris. E&Y had also been auditor to other major telecoms businesses in Greece owned by Mr. Sawiris, the report states. The institute has agreed to investigate the role of E&Y and Ms. Mills, the report notes. As reported by the Troubled Company Reporter-Europe on June 1, 2010, Bloomberg News said Mr. Sawiris said "not ruling out" a second debt restructuring at the company as austerity measures weigh on consumer spending. Bloomberg disclosed Wind Hellas has about EUR1.8 billion (US$2.2 billion) of debt. Mr. Sawiris, as cited by Bloomberg, said revenue has dropped as spending cuts to tackle Greece's budget deficit hurt consumer confidence and dented phone usage. Headquartered in Athens, WIND Hellas Telecommunications S.A. -- http://www.wind.com.gr/-- is part of Weather Investments, a global telecommunication group controlled by the Sawiris family and Naguib Sawiris. Weather also owns Wind Telecommunicazioni spa, the third largest mobile operator and second largest fixed line operator in Italy as well as a 50% plus one share of Orascom Telecom Holding S.A.E. * * * As reported by the Troubled Company Reporter-Europe on March 4, 2010, Fitch Ratings upgraded Greek-based integrated telecom operator Wind Hellas Telecommunications SA's Long-term Issuer Default Rating to 'CCC' from 'RD' and its Short-term IDR to 'C' from 'D'. The rating actions follow both the completion of the company's debt restructuring process in November 2009 and Fitch's review of management's business strategy for 2010 and beyond. ============= I R E L A N D ============= ELAN CORP: Decision on EDT Business Expected Next Year ------------------------------------------------------ Geoff Percival at The Irish Examiner reports that a decision regarding the future status of Elan's drug-delivery business, Elan Drug Technologies, may not be made until next year. The report relates Kelly Martin, Elan's chief executive, said after Elan's annual general meeting, that management's preferred outcome would still be for a partial public listing of EDT in Dublin -- and one other international stock market -- as opposed to a trade sale. He added that initial meetings with shareholders/investors showed an across-the-board support for a partial flotation of the EDT business, the report notes. The report recalls last month, Elan announced it was re-examining the possibility of separating its Athlone-based subsidiary from the main group in order to give it a necessary injection of fresh investment. About Elan Corporation Headquartered in Dublin, Ireland, Elan Corporation, plc -- http://www.elan.com/-- is a neuroscience-based biotechnology company. Its principal research and development, manufacturing and marketing facilities are located in Ireland and the United States. Elan's operations are organized into two business units: Biopharmaceuticals and Elan Drug Technologies. Biopharmaceuticals engages in research, development and commercial activities primarily in neuroscience, autoimmune and severe chronic pain. EDT focuses on the specialty pharmaceutical industry, including specialized drug delivery and manufacturing. Elan shares trade on the New York, London and Dublin Stock Exchanges. * * * Elan Corporation plc is currently rated B2 (Corporate Family Rating) with a positive rating outlook by Moody's Investors Service. ICR MOTOR: Niall O'Byrne Acquires Two Car Dealerships ----------------------------------------------------- Alan Owens at Limerick Leader reports that Niall O'Byrne, the former general of the Ennis Road Motors Ltd. car dealership, has bought the company, along with Motorzone Ltd. on the Dock Road from the ICR motor group, which was previously under examinership. According to Limerick Leader, as part of the process, the examiner, Michael McAteer of Grant Thornton accountants, split the group into three parts, separating the car rental, body work and car dealership arms of the business into three "new entities". Limerick Leader relates Mr. O'Byrne completed the purchase of the dealerships last week. Limerick Leader states that while Mr. O'Bryne is "confident for the future prospects of the company", he did admit that there would be some downscaling of the operation overall, with some redundancies to take place. There are 43 people employed across the two dealerships, Limerick Leader discloses. Limerick Leader notes as a condition of the recent deal to take the insolvent ICR motor group out of examinership, a clear-out of the board of Irish Car Rentals Ltd was sought. As reported by the Troubled Company Reporter-Europe on May 14, 2010, the Sunday Business Post said that ICR struggled with a significant downturn in business, forcing the examinership process. The Post.ie disclosed during the examinership process, financial inaccuracies totaling more than EUR6.6 million emerged in the accounts of ICR. ICR Motor Group has a fleet of 2,500 vehicles. It holds the franchise for the Europcar, Alamo and National Car Rental brands. MEATH HOTEL: Put Into Receivership by AIB ----------------------------------------- The Sunday Business Post Online reports that AIB has put the Meath hotel into receivership in an effort to protect its loans. According to the report, the property is continuing to trade, and all 130 hotel employees have been retained. The report relates Tom Kavanagh, a partner with Kavanagh Fennell, has been installed as receiver over the 126-bedroom hotel. The report says as part of the deal, the investors were entitled to certain capital allowances, while Galway businessman John Sweeney had an option to buy back the hotel after a certain period when the tax allowances ended. The Meath hotel includes a spa, a conference center and extensive facilities for sports training, including specially installed all- weather training pitches, according to the Sunday Business Post. * IRELAND: Liquidator Actions Up 46% in 2009, ODCE Report Shows --------------------------------------------------------------- Charlie Taylor at The Irish Times reports that there was a 47% increase in the number of new reports and complaints filed with the Office of the Director of Corporate Enforcement last year. According to The Irish Times, much of the increase was attributed to a sharp rise in newly insolvency companies and a consequent surge in reports from liquidators. There was a 46% rise in successful liquidator actions last year, The Irish Times says citing the ODCE report. =================== L U X E M B O U R G =================== HIGH TIDE: Moody's Junks Ratings on Class A Notes From 'B3' ----------------------------------------------------------- Moody's Investors Service announced this rating action on notes issued by High Tide CDO I S.A. The notes affected by the rating action is: Issuer: High Tide CDO I S.A. -- EUR54.5M Class A Senior Secured Floating Rate Notes, Downgraded to Caa3; previously on Jun 25, 2009 Downgraded to B3 This transaction is a managed synthetic CDO of SF assets with 71% exposure to European assets and 25% to US. The portfolio is currently composed of 36% RMBS, 14% ABS and CDOs of SMEs, and almost 13% CLOs. The current subordination of the tranche is 8.96% with a thickness of 6.69%. The rating downgrade action reflects a general deterioration in the credit quality of the underlying portfolio. This credit deterioration can be observed through a decline in the average credit rating (as measured by an increase in the weighted average rating factor). The current WARF is 1123 versus 654 at the time of the previous rating action, equivalent to a weak Ba1 pool. Since the last rating action, 31.4% of the pool has been subject to a downgrade, where more than 10% of the pool suffered downgrades of more than 3 notches. A significant number of downgrades were attributed to RMBS assets at almost 12%, followed by CLOs at 7.5% and CRE CDOs and CMBS at 5.5%. Although the transaction has not suffered any credit events to date, Moody's note that the Caa bucket is at 5% and the Ca/C bucket is at 3.6%, which covers almost half of the subordination of the above tranche. Moody's also note that 7.3% of the pool is under review for downgrades, where more than 3% are of US RMBS assets. In deriving its ratings, Moody's uses the collateral instrument's current rating-based expected loss, Moody's recovery rate table, and the original rating of the instrument along with its average life to infer an unadjusted default probability. In addition to the quantitative factors that are explicitly modeled, qualitative factors are part of rating committee considerations. These qualitative factors include the structural protections in each transaction, the recent deal performance in the current market environment, the legal environment, and specific documentation features. All information available to rating committees, including macroeconomic forecasts, input from other Moody's analytical groups, market factors, and judgments regarding the nature and severity of credit stress on the transactions, may influence the final rating decision. =========== N O R W A Y =========== CECON ASA: Says May Face Liquidation or Bankruptcy in 2Q 2010 ------------------------------------------------------------- ADPnews reports that Cecon ASA may face liquidation or bankruptcy in the second quarter of 2010. The report relates Cecon saw its after-tax loss widen to NOK9.2 million (US$1.4 million/EUR1.2 million) in January to March 2010 from NOK6 million a year earlier. According to the report, the company has been affected by the situation at Canadian shipyard Davie Yards, which has filed for creditor protection. Cecon has three vessels currently under construction at Davie Yards and has started a rapid external assessment of the performance of its newbuilding program which is yet to be finalized, the report discloses. The report says to avoid bankruptcy, the company must find a solution to the situation at Davie Yards, get customers to pay and restructure debt. The company's liquidity is strained, mainly due to continued late payments by its major clients, the report notes. Interest and repayment of a US$10-million (EUR8.1 million) bond loan, due for payment on April 30, have been postponed by six months, the report states. The company has also applied for revised payment dates for interest on a US$100-million bond loan, the report discloses. Cecon will also work to get a loan from Canadian resources, according to the report. Cecon ASA is a Norwegian subsea installation contractor. ============= R O M A N I A ============= * Fitch Changes Outlook on Romanian City of Brasov to Stable ------------------------------------------------------------ Fitch Ratings has revised the Romanian City of Brasov's Outlook to Stable from Negative. Fitch has simultaneously affirmed the city's Long-term foreign and local currency ratings at 'BB+' and 'BBB-', respectively. Brasov's Short-term foreign currency rating is affirmed at 'B'. The Outlook revision reflects the rebalancing of the city's budgetary performance and the fiscal adjustment to a difficult operating environment, as well as Fitch's expectation that the city will strengthen its fiscal resilience into the medium term with operating margins averaging above 10%. The rating affirmation also acknowledges the city's debt burden and challenging economic conditions in the local and national context. In 2009, the city's operating margin recovered from the previous year's low, supported by central government transfers, which underpinned the resilience of revenue, and largely controlled operating expenditure. Given the continued challenging economic conditions underlying revenue performance in 2010, the further improvement of fiscal performance relies on strong discipline with respect to the operating expenditure. Romania's highly centralized budgetary system ensures adequate support and control from the central government. The latter provides additional subsidies to support local infrastructure projects and supervises the city's finances, including authorizing debt. The city's direct debt, at RON179.8 million as of end-2009, is exposed to fluctuations in interest and foreign exchange rates due to floating-rate borrowing and a significant 46% share of euro- denominated loans. The pace of debt increase is set to slow in 2010-2012, with the payback ratio falling towards four years in 2010, but generally trending toward five years into the medium term. Brasov is located in central Romania. It is the capital city of Brasov County and has about 278,000 residents. The city is a popular tourist destination and has a strategic location in central Romania. In addition to locally generated tax revenue, the city's budget also benefits from central government transfers (about 48% of operating revenue in 2009). The city's responsibilities are service driven and include education and social services. =========== R U S S I A =========== BANK UNIASTRUM: Moody's Affirms 'Ba2' Long-Term Global Rating ------------------------------------------------------------- Moody's Investors Service has affirmed the Ba2 long-term global scale local and foreign currency deposit ratings of Bank Uniastrum with stable outlook. Uniastrum's bank financial strength rating of E+ (stable outlook) and its Not Prime short-term global scale local and foreign currency deposit ratings remain unchanged. Concurrently, Moody's Interfax Rating Agency affirmed Uniastrum's National Scale Rating of Aa2.ru. The NSR carries no specific outlook. This rating action was triggered by Moody's recent rating action for Uniastrum's parent -- Bank of Cyprus, whereby the rating agency placed all of the latter's ratings on review for possible downgrade (see separate press release published on 27 May 2010 on this issuer). Bank of Cyprus owns an 80% stake in Uniastrum, while the two founding shareholders -- Mr. George Piskov and Mr. Gagik Zakarian -- each have a 10% interest in the bank. Moody's said that it continues to maintain an assumption of a high probability of parental support from Bank of Cyprus to its Russian subsidiary in case of need, which results in a three-notch uplift of Uniastrum's long-term deposit ratings of Ba2 from the bank's Baseline Credit Assessment of B2 in accordance with Moody's Joint- Default Analysis Methodology. The rating agency does not expect that a possible downgrade of Bank of Cyprus's BFSR or lowering of its BCA following the review initiated on 27 May 2010 will lead to a downgrade of Uniastrum's supported ratings, given the low sensitivity of the deposit ratings of Bank Uniastrum to the level of Bank of Cyprus (as a support provider) BFSR or BCA ratings. Moody's previous rating action on Uniastrum was on 25 November 2008 when the rating agency upgraded the bank's long-term local and foreign currency deposit ratings to Ba2 from B2, while the bank's long-term national scale rating was upgraded to Aa2.ru from Baa1.ru. Simultaneously, Uniastrum's BFSR of E+ and its Not Prime short-term global scale local and foreign currency deposit ratings were affirmed. These rating actions concluded Moody's review of Uniastrum's deposit ratings and NSR and followed the completion of the acquisition of an 80% stake in Uniastrum by Bank of Cyprus. Headquartered in Moscow, Russia, Uniastrum reported -- as at 31 December 2009 -- total IFRS assets of US$2.339 billion and total shareholders' equity of US$241 million. Net IFRS profits for 2009 were US$4.2 million. MECHEL OAO: Appoints Banks to Coordinate US$2BB Loan Refinancing ---------------------------------------------------------------- Mechel OAO has appointed ING and Royal Bank of Scotland to coordinate a US$2 billion loan that will refinance existing loans, Christopher Mangham, Polina Devitt and Dmitry Sergeev at Reuters report, citing banking sources close to the deal. According to Reuters, the pre-export-financing, which is split between a three-year tranche and a five-year tranche, will refinance debt falling due in 2010. Reuters recalls Mechel restructured two loans in the spring of 2009, extending them to December 2012, after commodity prices fell at the end of 2008 and Russia's economy entered a recession that lasted until Q409. Reuters notes one banker said Mechel is expected to recruit the support of its relationship banks, as banks that have not previously lent to Mechel may find it difficult to gain approval to commit to Mechel's new loan as a result of that restructuring. "Mechel suffers from having had a restructuring last year . . . this means there a relatively few new names for them plus there is a shortage of credit insurance, which is a big component of the structure for many pre-export financing lenders," Reuters quoted the banker as saying. Mechel OAO (Mechel Steel Group OAO) (NYSE:MTL) -- http://www.mechel.com/-- is a Russia-based vertically integrated mining and metals company. The Company's business comprises two segments, mining and steel. The mining segment includes the production and sale of coal, iron ore and nickel, while the steel business covers the production and sale of semi-finished steel products, carbon and stainless flat products as well as value added downstream metal products, such as hardware, stampings and forgings. In addition, Mechel OAO owns and operates two trade ports, a railway and an energy company. It has production facilities located in Russia, Romania and Lithuania. The Company has 22 subsidiaries, of which 12 are wholly owned. Numerous representative offices located worldwide, allow the Company to offer its products on both domestic and international markets. * * * As reported by the Troubled Company Reporter-Europe on May 26, 2010, Moody's Investors Service assigned a B1 corporate family rating to Mechel and a B1 Probability of Default Rating. The outlook on the ratings is stable. This is the first time that Moody's rates the company. Moody's said the CFR of Mechel reflects: 1) aggressive capital structure with high leverage and modest CF metrics which will take some time before it improves; 2) the company's exposure to the cyclicality of the steel and mining industry which was recently evidenced by the worst downturn in decades; 3) on-going refinancing risk with sizable repayments in 2010 and 2011 and a liquidity profile depending on renewing or extending funding to the extent that the expansion capex plans are carried out; 4) the fact that future green field developments of Elga deposit would require significant resources and provide technical and operating challenges; 5) expectations of substantial capital expenditures related to the current activity of steel assets which would further negatively affect FCF generation; 6) possible negative administrative/regulatory consequences for the Russian mining sector following the recent incidents at the mining sector; 7) the company's ownership concentration adding uncertainty and less predictability to its financial strategy and dividend policy. RBC INFORMATION: To Begin Paying US$230 Mil. to Creditors Today --------------------------------------------------------------- Maria Ermakova at Bloomberg News, citing Vedomosti, reports that OAO RBC Information Systems will begin paying its US$230 million debt to creditors today, June 2. According to Bloomberg, the newspaper said Mikhail Prokhorov's Onexim Group agreed to buy a 51% stake in RBC Information for US$80 million if 85% of its creditors agree to the debt restructuring plan. Bloomberg notes Vedomosti said more than 90% of RBC Information's bond holders and almost all of its lenders agreed to the plan. Headquartered in Moscow, Russia, OAO RBC Information Systems -- http://www.rbcinfosystems.com/-- provides advertising services, software development and information services. ROSPROMBANK OOO: Moody's Affirms 'B1' Long-Term Global Rating ------------------------------------------------------------- Moody's Investors Service has affirmed the B1 long-term global scale local and foreign currency deposit ratings of Rosprombank with stable outlook. The bank financial strength rating of E+ (stable outlook) and its Not Prime short-term global scale local and foreign currency deposit ratings remain unchanged. Concurrently, Moody's Interfax Rating Agency affirmed Rosprombank's National Scale Rating of A2.ru. The NSR carries no specific outlook. This rating action was triggered by Moody's recent rating action for Rosprombank's parent Marfin Popular Bank Public Company Ltd, whereby the rating agency placed all of the latter's ratings on review for possible downgrade. MPB holds a 50.04% stake in ZAO "RPB-Holding", which, in turn, owns close to 100% of Rosprombank. Moody's said that it continues to maintain an assumption of a moderate probability of parental support from Marfin Popular Bank to its Russian subsidiary in case of need, which results in a two- notches uplift of Rosprombank's long-term deposit ratings of B1 from the bank's Baseline Credit Assessment of B3 in accordance with Moody's Joint-Default Analysis Methodology. The rating agency does not expect that a possible downgrade of MPB's BFSR or lowering of its BCA following the review initiated on 27 May 2010 will lead to a downgrade of Rosprombank's supported ratings, given the low sensitivity of the deposit ratings of Rosprombank to the level of MPB (as a support provider) BFSR or BCA ratings. Moody's previous rating action on Rosprombank was on 27 November 2008 when the rating agency upgraded the bank's long-term local and foreign currency deposit ratings to B1 from B3, while the bank's long-term national scale rating was upgraded to A2.ru from Baa2.ru. Simultaneously, Rosprombank's BFSR of E+ and its Not Prime short-term global scale local and foreign currency deposit ratings were affirmed. These rating actions reflected the completion of the acquisition of a 50.04% stake in ZAO "RPB- Holding". Headquartered in Moscow, Russia, Rosprombank reported total IFRS assets of US$399 million at 31 December 2008. Net IFRS loss for 2008 accounted for US$11 million. Rosprombank's total assets reported at 31 December 2009 as per the Russian statutory Accounting Standards (RAS) was RUB7.3 billion (US$242million). * S&P Gives Stable Outlook on Novosibirsk; Keeps 'BB-' Rating ------------------------------------------------------------- Standard & Poor's Ratings Services said that is had revised its outlook on the City of Novosibirsk to stable from negative. At the same time, S&P affirmed the 'BB-' long-term issuer credit rating and the 'ruAA-' Russia national scale rating. S&P also affirmed the 'BB-/ruAA-' ratings on Novosibirsk's Russian ruble (RUB) 1.5 billion senior unsecured bond, leaving the '3' recovery rating unchanged. "The outlook revision reflects Novosibirsk's reduced refinancing risk as a result of secured committed bank facilities, as well as ongoing efforts to extend more of the city's debt maturities," said Standard & Poor's credit analyst Karen Vartapetov. The ratings on Novosibirsk, Russia's third-largest city, are constrained by the city's low financial flexibility and predictability and some continued reliance on short-term debt. These constraints are mitigated by moderate debt, improved access to bank facilities, fiscal discipline, and a relatively diversified economy. The stable outlook reflects S&P's expectation that, despite spending pressures, Novosibirsk's management will continue the spending discipline it displayed in 2009, which will likely improve budgetary performance in 2010-2012. The outlook also factors in the continuation of management's measures to extend the maturity of the city's debt obligations. "A negative rating action could result if market sentiment prevents the city from improving its debt profile, in turn leading to a rise in debt service in 2010-2011 above the levels S&P currently expect," said Mr. Vartapetov. The ratings could also come under pressure should the growth of operating spending increase its tempo and result in a structurally weak operating performance over the next two-three years. S&P could revise the outlook to positive if the city manages to achieve higher-than-forecast operating balances and extend its debt profile beyond 2013, which would likely lead to much-lower- that-expected debt service in 2010-2011. =========== T U R K E Y =========== ORAL ET: Red Meat Crisis Blamed for Bankruptcy ---------------------------------------------- Enis Tayman at Hurriyet Daily News reports that Oral Et has gone bankrupt after being hit by the recent red meat crisis in the Turkish livestock sector. According to Hurriyet, a disagreement between two Turkish banks, coupled by problems among company owners, has impacted the firm's finances. Hurriyet says the facility has now been put for sale. Oral Et is an integrated meat facility located in the eastern province of Erzurum. It employs 350 people. The facility, covering a total of 28,000 square meters, including a covered area of 16,000 square meters, had an annual 35,000-ton meat-processing capacity, according to Hurriyet. =========================== U N I T E D K I N G D O M =========================== MADOFF INT'L: European Banks Reimburse US$15.5BB Investor Losses ---------------------------------------------------------------- Edmund Conway at The Daily Telegraph reports that a host of banks, including HSBC, has had to reimburse international investors for a combined US$15.5 billion (GBP10.8 billion) of losses associated with Bernard Madoff's collapsed hedge fund. Some 20 European banks have agreed to provide the cash to investors, the report says, citing a lawyer representing victims of the convicted New York asset manager. According to the report, Javier Cremades, who helped create a legal network to pursue investor complaints about Mr. Madoff, said banks in France, Germany, Portugal, Spain and the UK have settled with investors. He added that lenders in Switzerland had remained resistant, in part because of the country's strict bank secrecy laws, the report notes. The US$15.5 billion total has been shared among around 720,000 investors outside the US, the report discloses. About BLMIS and Madoff Securities London-based Madoff Securities International Limited is a money management business of Bernard L. Madoff in the United Kingdom. Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff orchestrated the largest Ponzi scheme in history, with losses topping US$50 billion. On December 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. The District Court's Protective Order (i) appointed Irving H. Picard, Esq., as trustee for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP as his counsel, and (iii) removed the SIPA Liquidation proceeding to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). On April 13, 2009, former BLMIS clients filed an involuntary Chapter 7 bankruptcy petition against Bernard Madoff (Bankr. S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. The petitioning creditors -- Blumenthal & Associates Florida General Partnership, Martin Rappaport Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert $64 million in claims against Mr. Madoff based on the balances contained in the last statements they got from BLMIS. On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff Securities International Limited in London under bankruptcy protection pursuant to Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. 09-16751). Roughly US$100 million to US$500 million in assets and more than US$1 billion in debts were listed for Madoff Securities. The Chapter 15 case was later transferred to Manhattan. In June 2009, Judge Lifland approved the consolidation of the Madoff SIPA proceedings and the bankruptcy case. Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors in United States v. Madoff, No. 09-CR-213 (S.D.N.Y.). ROYAL BANK: NAB, Santander Lead Bidding Race for 300 Branches ------------------------------------------------------------- The Scotsman reports that Clydesdale owner National Australia Bank and Santander have made it through to the final round of bidding for Royal Bank of Scotland's 300 branches, pulling ahead of Spanish bank BBVA. The report notes that, although BBVA has not yet dropped out, sources say it has been told to improve its offer. According to the report, the branches, which are being sold off under the resurrected Williams & Glyns brand, are expected to raise in excess of GBP1 billion. RBS was forced to put the branch network up for sale to meet European competition rules, the report discloses. About RBS The Royal Bank of Scotland Group plc (NYSE:RBS) -- http://www.rbs.com/-- is a holding company of The Royal Bank of Scotland plc (Royal Bank) and National Westminster Bank Plc (NatWest), which are United Kingdom-based clearing banks. The company's activities are organized in six business divisions: Corporate Markets (comprising Global Banking and Markets and United Kingdom Corporate Banking), Retail Markets (comprising Retail and Wealth Management), Ulster Bank, Citizens, RBS Insurance and Manufacturing. On October 17, 2007, RFS Holdings B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V., Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and controlled by RBS, completed the acquisition of ABN AMRO Holding N.V. (ABN AMRO). In July 2008, the company disposed of its entire interest in Global Voice Group Ltd. * * * As reported by the Troubled Company Reporter-Europe on March 29, 2010, Standard & Poor's Ratings Services said that it lowered its ratings on "may pay" Tier 1 securities issued or guaranteed by The Royal Bank of Scotland Group PLC (A/Stable/A-1) to 'C' from 'CC'. At the same time, the rating on the RBSG-related security issued by Argon Capital PLC was similarly lowered to 'C' from 'CC'. The counterparty credit ratings and stand-alone credit profiles of RBSG and subsidiaries, and the ratings on other debt securities issued by these entities, are unaffected. ROYAL BANK: Dollar Borrowing Costs 25% Higher Than Some Rivals -------------------------------------------------------------- Andrew MacAskill and Jon Menon at Bloomberg News report that Royal Bank of Scotland Group Plc faces borrowing costs in dollars 25% higher than some rivals as Europe's debt crisis stains interbank lending. The difference among the highest interest rates, paid by RBS, and the lowest, paid by Deutsche Bank AG, for three-month dollar- denominated loans was widest this year on May 26, Bloomberg says, citing data compiled by the British Bankers' Association in a daily survey of 16 major banks. Higher borrowing costs for European banks may lead to increased rates for consumers and businesses, Bloomberg notes. According to Bloomberg, RBS had the highest dollar Libor rate on May at 0.60%. Bloomberg says rising borrowing costs for banks may make it harder for RBS to meet the government-agreed lending targets, a priority of the new Conservative-Liberal Democrat coalition. Higher bank borrowing costs may also push up the rates on mortgages, credit cards and corporate loans, Bloomberg states. About RBS The Royal Bank of Scotland Group plc (NYSE:RBS) -- http://www.rbs.com/-- is a holding company of The Royal Bank of Scotland plc (Royal Bank) and National Westminster Bank Plc (NatWest), which are United Kingdom-based clearing banks. The company's activities are organized in six business divisions: Corporate Markets (comprising Global Banking and Markets and United Kingdom Corporate Banking), Retail Markets (comprising Retail and Wealth Management), Ulster Bank, Citizens, RBS Insurance and Manufacturing. On October 17, 2007, RFS Holdings B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V., Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and controlled by RBS, completed the acquisition of ABN AMRO Holding N.V. (ABN AMRO). In July 2008, the company disposed of its entire interest in Global Voice Group Ltd. * * * As reported by the Troubled Company Reporter-Europe on March 29, 2010, Standard & Poor's Ratings Services said that it lowered its ratings on "may pay" Tier 1 securities issued or guaranteed by The Royal Bank of Scotland Group PLC (A/Stable/A-1) to 'C' from 'CC'. At the same time, the rating on the RBSG-related security issued by Argon Capital PLC was similarly lowered to 'C' from 'CC'. The counterparty credit ratings and stand-alone credit profiles of RBSG and subsidiaries, and the ratings on other debt securities issued by these entities, are unaffected. TATA MOTORS: Jaguar Land Rover Does Not Rule Out Plant Closure -------------------------------------------------------------- BBC News says that Jaguar Land Rover, owned by Tata Motors of India, has denied reports that it will shelve plans to close one of its plants in the region. BBC recalls the company announced in September 2009 that either its factory at Castle Bromwich or Solihull would close within 10 years. A spokesman for the firm told the BBC that an official announcement on its future would be made in the summer. BBC relates profits at Jaguar Land Rover rose to GBP32 million in the year to March 31, with Jaguar sales in China up 38%, helped by a weak pound. The company made a loss of GBP281 million in the preceding 10 months, BBC notes. About Tata Motors India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the company. The company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. TML is listed on the Bombay Stock Exchange, the National Stock Exchange of India and New York Stock Exchange. It was ultimately 33.4% owned by the Tata Group as of December 2007. Tata Motors has operations in Russia and the United Kingdom. * * * As reported in the Troubled Company Reporter-Asia Pacific on April 21, 2010, Moody's Investors Service upgraded Tata Motors Ltd's corporate family rating to B2 from B3. The outlook on the rating is positive. This rating action completes the rating review for possible upgrade initiated on March 2, 2010, when TML announced its consolidated Q3 FY2010 results. TATA STEEL: European Unit's Recovery Fails to Save TCP Business --------------------------------------------------------------- Angela Jameson at Times Online reports that Tata Steel Europe's turnaround was too late to save the Teesside Cast Products business, owned by its Corus subsidiary. Tata Steel Europe on May 26 reported a bounce in profits in its fourth quarter. According to the report, the managing director and chief executive of Tata Steel Europe, said that the first profit after tax in 18 months was a result of rising demand from carmakers and construction companies. The report says Corus had been suffering under the pressures of a slump in European steel demand. The report states the turnaround was achieved with a small increase in deliveries and higher average selling prices, but came too late to save Redcar-based Teesside Cast Products, which was mothballed in February after four international companies walked away from their agreements to take 78% of its steel slab. Tata Steel Europe decided to halt its exposure to the international slab market and stop the Teesside losses, which accounted for most of the company's losses for the year, the report notes. About Tata Steel Headquartered in Mumbai, India, Tata Steel Limited -- http://www.tatasteel.com/-- is a diversified steel producer. It has operations in 24 countries and commercial presence in over 50 countries. Its operations predominantly relate to manufacture of steel and ferro alloys and minerals business. Other business segments comprises of tubes and bearings. On April 2, 2007, Tata Steel UK Limited (TSUK), a subsidiary of Tulip UK Holding No.1, which in turn is a subsidiary of Tata Steel completed the acquisition of Corus Group plc. Tata Metaliks Limited, which is engaged in the business of manufacturing and selling pig iron, became a subsidiary of the Company with effect from February 1, 2008. In September 2008, the Company acquired a 7.3% interest in Riversdale Mining Ltd. * * * As reported in the Troubled Company Reporter-Asia Pacific on May 14, 2010, Fitch affirmed the Foreign Currency Issuer Default Rating of 'BB+' and the National Long-term rating of 'AA(ind)' of Tata Steel Limited. Simultaneously, Fitch also affirmed the Foreign Currency IDR of Tata Steel UK at 'B+'. The Outlook on all the ratings continues to be Negative. * UK: Standard Chartered CEO Says Bank Failures to Hit Depositors ----------------------------------------------------------------- The Times reports that under proposals by Peter Sands, chief executive of Standard Chartered, depositors could lose money if their bank fails. According to the report, Mr. Sands said that people with savings above any sum guaranteed by law -- GBP50,000 in the UK -- should be hit with other providers of capital if a bank fails. The report says the idea that depositors should be put at risk will be controversial because, as taxpayers, they bailed out banks with billions of pounds of aid. The report relates Mr. Sands said spelling out risk to depositors is an important part of reform of the financial system so that banks in future do not rely on implicit guarantees of bailouts from taxpayers if they get into trouble. According to the report, he said that while depositors rank as unsecured creditors on any savings that exceed the guaranteed limit, in reality they would not take a hit until other providers of capital -- in the form of equity and unsecured debt -- had done. The report notes Mr. Sands, launching proposals from the Institute of International Finance, said that a new regime must make it explicit that equity and unsecured debt providers would suffer losses in the event of a bank failure and that countries must break away from the view that some institutions are "too big to fail". Mr. Sands, an architect of the UK banking bailout in 2008, on May 24 urged action to create a system that would allow a more ordered winding down of banks in the future, the report recounts. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than US$3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/booksto order any title today. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Joy A. Agravante, Valerie U. Pascual, Marites O. Claro, Rousel Elaine T. Fernandez, Frauline S. Abangan and Peter A. Chapman, Editors. Copyright 2010. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *