/raid1/www/Hosts/bankrupt/TCREUR_Public/100723.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
E U R O P E
Friday, July 23, 2010, Vol. 11, No. 144
Headlines
G E R M A N Y
WESTLB AG: Aareal & Apollo Make Binding Bids for WestImmo Unit
G R E E C E
* GREECE: Sold EUR1.95 Billion of Three-Month Bills
I R E L A N D
ALLIED IRISH: Moody's Affirms Long-Term Debt & Deposit Ratings
ANGLO IRISH: NAMA Transfer of EUR8 Billion Loans Not Yet Complete
ANGLO IRISH: Moody's Maintains Review on Caa2 Sub. Debt Rating
BANK OF IRELAND: McKillen to Pay NAMA Damages Over Loan Transfer
BANK OF IRELAND: Moody's Affirms Long-Term Deposit Ratings
EBS BUILDING: Moody's Lowers Long-Term Debt & Deposit Ratings
FLEMING ENERGY: AIB Gets Summary Judgment Order v. John Fleming
IRISH LIFE: Moody's Downgrades Long-Term Debt & Deposit Ratings
IRISH NATIONWIDE: Takes 72.4% Writedown in Loans Sold to NAMA
IRISH NATIONWIDE: Moody's Maintains Review on Deposit Ratings
PREMIER HOTELS: Faces Liquidation After Rent Talks Fail
* IRELAND: High Court Company Winding-Up Orders Up 66% in 2009
I T A L Y
FIAT SPA: Says Banks to Provide EUR4BB to Help Finance Spin-Off
FIAT SPA: Moody's Reviews 'Ba1' Senior Unsecured Ratings
K A Z A K H S T A N
KAZINVESTBANK JSC: Moody's Puts B2 Local & Foreign Cur. Ratings
L U X E M B O U R G
CRC BREEZE: Fitch Downgrades Ratings on Class A Notes to 'BB-'
N E T H E R L A N D S
NXP BV: S&P Affirms 'CCC+' Long-Term Corporate Credit Rating
R U S S I A
ACRON JSC: Moody's Assigns 'B1' Corporate Family Rating
NATIONAL BANK: Fitch Affirms 'CCC' Issuer Default Rating
RUSIA PETROLEUM: Irkutsk Court to Consider TNK-BP Claim
OAS SBERBANK: Moody's Gives Stable Outlook on 'D+' Bank Rating
ZLATOUST METALLURGICAL: Has Debt Restructuring Deal With Banks
U N I T E D K I N G D O M
ASHFORD TOWN: Administration Hearing Scheduled for July 29
CALLBRIDGE HOTELS: In Administration; Deloitte Seeks Buyer
FERREXPO PLC: Fitch Assigns 'B' Issuer Default Rating
GOLDTRAIL TRAVEL: Owner May Have "Escaped" to Turkey
HALLIWELLS: HBJ Gateley Wareing Acquires Manchester Office
MORPHEUS PLC: S&P Cuts Rating on Class E Subordinate Loan to 'B'
QUINN INSURANCE: 75 Jobs in Enniskillen Retained
UNIQ PLC: Pension Framework Fails to Meet Clearance Criteria
WHINSTONE CAPITAL: Fitch Cuts Ratings on Class C Notes to 'B-'
* UK: Scottish Corporate Insolvencies Up 66% in 2nd Quarter 2010
X X X X X X X X
* BOOK REVIEW: All Organizations Are Public - Comparing Public and
*********
=============
G E R M A N Y
=============
WESTLB AG: Aareal & Apollo Make Binding Bids for WestImmo Unit
--------------------------------------------------------------
Holger Elfes at Bloomberg News, citing Financial Times
Deutschland, reports that Aareal Bank AG and investment firm
Apollo have made binding bids for WestLB AG's real estate unit
WestImmo, which is for sale.
As reported by the Troubled Company Reporter-Europe on June 22,
2010, Dow Jones Newswires, citing people familiar with the matter,
said Aareal Bank already has established wholesale funding
relationships in place that would allow it to refinance WestImmo
relatively easily following the expiration of government
refinancing guarantees. Dow Jones disclosed the guarantees are
needed to assure WestImmo's daily refinancing needs in the absence
of its current state-controlled owner. As reported by the
Troubled Company Reporter-Europe on June 4, 2010, Dow Jones said
WestLB is mandated by the European Union to sell WestImmo as part
of a broader restructuring tied to its use of government bailouts.
State Aid
On June 24, 2010, the Troubled Company Reporter-Europe, citing the
Financial Times, reported that competition officials in Brussels
extended the "temporary approval" for state aid given to WestLB
for an indefinite period, while they try to assess whether the
bank's restructuring plans will restore its long-term viability.
The FT disclosed EU officials said that they were still trying to
assess whether the transfer of impaired assets, which WestLB has
moved to a "bad bank" or wind-down vehicle, was done in accordance
with EU guidelines and whether "on this basis the restructuring of
WestLB is apt to restore the long-term viability of the bank".
According to the FT, the officials said they would prolong
temporary approval of the "bad bank" vehicle until the probe into
the bank, which was opened late last year, is completed. There is
no fixed timescale for that investigation, the FT noted.
About WestLB
Headquartered in Duesseldorf, Germany, WestLB AG (DAX:WESTLB)
-- http://www.westlb.com/-- provides financial advisory,
lending, structured finance, project finance, capital markets
and private equity products, asset management, transaction
services and real estate finance to institutions.
In the United States, certain securities, trading, brokerage and
advisory services are provided by WestLB AG's wholly owned
subsidiary WestLB Securities Inc., a registered broker-dealer
and member of the NASD and SIPC.
WestLB's shareholders are the two savings banks associations in
NRW (25.15% each), two regional associations (0.52% each), the
state of NRW (17.47%) and NRW.BANK (31.18%), which is owned by
NRW (64.7%) and two regional associations (35.3%).
* * *
As reported by the Troubled Company Reporter-Europe on May 6,
2010, Moody's Investors said the E+ bank financial strength rating
(BFSR, which maps directly to a B2 baseline credit assessment,
BCA), was affirmed and the outlook on this rating changed to
stable from developing. Moody's affirmation of the E+ BFSR and
the change of its outlook to stable reflects that, despite
positive developments, the BFSR remains constrained by the bank's
weak franchise, which includes several core segments that do not
(or only insufficiently) contribute to group profits, thus
resulting in the bank's continued dependence on volatile,
wholesale-focused sources of income. Moody's does not rule out
that the bank could be split up and unwound if efforts to divest
the bank were to prove unsuccessful.
===========
G R E E C E
===========
* GREECE: Sold EUR1.95 Billion of Three-Month Bills
---------------------------------------------------
David Oakley and Kerin Hope at The Financial Times report that
Greece on Tuesday sold EUR1.95 billion of three-month bills, but
had to pay a yield of 4.05% compared with 3.65% for the previous
issue in April.
According to the FT, the Greek debt management agency said the
bonds had been subscribed 3.85 times compared with 3.64 times for
last week's issue of six-month paper. The FT relates debt
managers rolled over EUR1.5 billion of three-month bills and
accepted another EUR450 million in non-competitive bids.
Greece returned to the capital markets last week for the first
time since its bail-out in April by the EU and IMF, the FT notes.
* * *
As reported by the Troubled Company Reporter-Europe on June 16,
2010, Moody's Investors Service downgraded Greece's government
bond ratings by four notches to Ba1 from A3, reflecting its view
of the country's medium-term credit fundamentals. The rating
action concludes the review for possible downgrade, which Moody's
initiated on April 22, 2010. Moody's also downgraded Greece's
short-term issuer rating to Not-Prime from Prime-1. Greece's
country ceilings for bonds and bank deposits are unaffected by the
review and remain at Aaa (in line with the Eurozone's rating).
The outlook on all ratings is stable. "The Ba1 rating reflects
Moody's analysis of the balance of the strengths and risks
associated with the Eurozone/IMF support package. The package
effectively eliminates any near-term risk of a liquidity-driven
default and encourages the implementation of a credible, feasible,
and incentive-compatible set of structural reforms, which have a
high likelihood of stabilizing debt service requirements at
manageable levels," said Sarah Carlson, Vice President-Senior
Analyst in Moody's Sovereign Risk Group and lead analyst for
Greece. "Nevertheless, the macroeconomic and implementation risks
associated with the program are substantial and more consistent
with a Ba1 rating."
=============
I R E L A N D
=============
ALLIED IRISH: Moody's Affirms Long-Term Debt & Deposit Ratings
--------------------------------------------------------------
Moody's Investors Service has downgraded the long-term debt and
deposit ratings of two Irish institutions -- EBS Building Society
and Irish Life & Permanent plc -- to A3 from A2 following the one-
notch downgrade of the Irish government's sovereign debt ratings
on July 19, 2010, to Aa2 with a stable outlook, from Aa1. At the
same time, Moody's downgraded to Aa2 from Aa1 the government-
guaranteed debt of the two institutions, as well as that of the
other four guaranteed institutions: Allied Irish Banks, Bank of
Ireland, Anglo Irish Bank, and Irish Nationwide Building Society.
The non-guaranteed ratings of other banks based in Ireland were
unaffected by this action.
In addition, Moody's has downgraded the rating of EBS' dated
subordinated EMTN program to Baa2 from A3. Further information on
this issue is set out below.
Rating Rationale
Out of the six Irish banking groups which currently benefit from
significant systemic support (BoI, AIB, EBS, IL&P, Anglo Irish and
INBS), the ratings of two institutions -- EBS and IL&P -- were
downgraded as a result of the downgrade of the Irish sovereign
ratings (see below for rating actions in detail), while the
ratings of BoI and AIB were affirmed. All four institutions have
the same standalone financial strength rating of D (mapping to a
Ba2 on the long-term scale). The debt ratings of Anglo Irish and
INBS remain under review.
The downgrade of the Irish government's own bond rating to Aa2
indicates a marginal reduction in the government's ability to
support its banking institutions. Among the four institutions
that have the same standalone rating of D (BoI, AIB, EBS and IL&P)
both EBS and IL&P are slightly more exposed to the sovereign
ratings downgrade. This is due to the different franchise
strength, role and importance of BoI and AIB compared to EBS and
IL&P, and this has always been reflected in a lower, albeit still
high, likelihood of systemic support for EBS and IL&P when
compared to BoI and AIB. The ratings of EBS and IL&P continue to
reflect this high level of implicit and, in the case of EBS,
explicit support the two institutions receive from the Irish
government. This very high level of support has lifted the senior
ratings 6 notches above the level that would be implied by their
stand-alone financial strength (D, which maps to Ba2 on Moody's
long-term rating scale), but with the downgrade of the Irish
government's own bond rating this uplift has now been reduced to 5
notches.
As the stable outlook on Bank of Ireland's and Allied Irish Banks'
debt ratings has indicated, the affirmation of these two banks'
ratings incorporates Moody's view that over the longer term these
two predominant banks should maintain their position in the
domestic Irish market and that their size and presence result in a
very high probability of on-going support from the Irish
government, even beyond the current difficult phase, which
continues to underpin the 7-notch uplift from their standalone
financial strength rating of D.
The decision to maintain the review of Anglo Irish and INBS takes
into consideration the company-specific challenges that drive the
ratings of these two institutions which are not affected by the
downgrade of the sovereign rating. Both institutions currently
have restructuring plans lodged with the European Commission as a
result of the extremely high level of State Aid that they have
received and these are likely to result in a split of Anglo Irish
into a good bank/bad bank, and in the case of Irish Nationwide it
is likely to be sold.
Outlooks
The outlook on the long-term bank deposit ratings, as well as on
the senior and dated subordinated debt, of EBS and IL&P is stable.
This reflects Moody's view that over the longer term the systemic
importance of the two institutions will remain high leading to a
likely continuation of on-going support from the Irish government
over the short- to medium term. The outlook on the long-term bank
deposit and senior debt ratings of AIB and BoI remains stable.
These ratings have been affected:
* EBS -- Long-term bank deposit and senior debt ratings downgraded
to A3 from A2, dated subordinated debt to Baa2 from Baa1, and
short-term bank deposit and debt ratings to Prime-2 from Prime-
1. Due to the downgrade of EBS's senior debt rating to A3,
Moody's also downgrades the Mortgage Backed Promissory Notes
issued by EBS and EBS Mortgage Finance to A1. The ratings of
the Mortgage Backed Promissory Notes benefit from a two notch
uplift from EBS's senior debt rating. The standalone Bank
Financial Strength Rating of D, which maps to Ba2 on the long
term rating scale, was not affected by the action. EBS's tier 1
debt rating of Ca was also not affected as it does not
incorporate any systemic support.
* IL&P -- Long-term bank deposit and senior debt ratings
downgraded to A3 from A2, dated subordinated debt to Baa1 from
A3, and short-term bank deposit and debt ratings to Prime-2 from
Prime-1. Due to the downgrade of IL&P's senior debt rating to
A3, Moody's also downgrades IL&P's Mortgage Backed Promissory
Notes to A1. The ratings of the Mortgage Backed Promissory
Notes benefit from a two notch uplift from the issuer's senior
debt rating. The standalone Bank Financial Strength Rating of
D, which maps to Ba2 on the long term rating scale, was not
affected by the action. IL&P's undated subordinated debt rating
of Ba3 was also not affected as it does not incorporate any
systemic support.
* AIB -- Long-term bank deposit and debt ratings have been
affirmed. These are A1 for long-term bank deposits and senior
debt, A2 for dated subordinated debt, Ba3 for undated
subordinated debt, B1 for cumulative tier 1 securities and Caa1
for non-cumulative tier 1 securities. The outlook on these
ratings is stable. AIB's bank financial strength rating of D,
which maps to Ba2 on the long term rating scale, with a positive
outlook is also unaffected by this rating action.
* BoI -- Long-term bank deposit and senior debt ratings have been
affirmed. These are A1 for long-term bank deposits and senior
debt, A2 for dated subordinated debt, Ba3 for undated
subordinated debt, B1 for cumulative tier 1 securities and Caa1
for non-cumulative tier 1 securities. The outlook on these
ratings is stable. BoI's bank financial strength rating is D,
on review for possible upgrade and this is also unaffected by
this rating action.
* Anglo Irish -- The A3/P-1 bank deposit and senior debt ratings
as well as the Ba1 dated subordinated debt rating and the Caa2
undated subordinated debt rating have been maintained under
review for possible downgrade as the key rating driver in
Moody's view remains the bank's restructuring plan that is
currently waiting EU approval. The outlook on the bank's E
BFSR, mapping to a Caa1 on the long-term scale, is stable.
* INBS -- The Baa3/P-3 bank deposit and senior debt ratings and
the Ba1 dated subordinated debt rating have been maintained
under review with uncertain direction. This review is focusing
on the likely sale of the institution in the future, which could
result in both an upgrade or a downgrade depending on the
details of the transaction and the credit quality of any
potential purchaser.
* All rated government-backed long-term debt issues of these six
Irish institutions have been downgraded to Aa2 from Aa1, with a
stable outlook, in line with the Irish government's debt rating.
Short-term debt programs of EBS and IL&P, guaranteed by the
Irish government, will remain rated Prime-1, in line with the
government's short-term rating.
* The ratings of the other Irish banks are unaffected by this
rating action as they either include a relatively low level of,
or no, systemic support; the rating uplift primarily stems from
parental support. These banks include KBC Bank Ireland (Baa2
negative; D-/Ba3 negative), Bank of Scotland (Ireland) (Baa1,
negative; D-/Ba3 negative), Ulster Bank Ireland (A2, negative;
D-/Ba3 negative), Zurich Bank (A1, stable; D-/Ba3 negative) and
Hewlett Packard International Bank (A2, stable; C-/Baa1 stable).
None of these banks have participated in the Irish governments
guarantee schemes.
Downgrade of the Dated Subordinated Emtn Programme Rating
of Ebs Building Society
Due to an administrative oversight, EBS' dated subordinated EMTN
program rating was not downgraded on June 3, 2010, when the dated
subordinated debt of EBS was downgraded to Baa1 from A3. For
further information on this downgrade, please refer to Moody's
press release entitled "Moody's downgrades EBS Building Society's
subordinated debt and tier 1 securities" dated June 3, 2010.
Taking this into account together with the rating actions, Moody's
has now downgraded EBS' EMTN Programme to Baa2 from A3.
Previous Rating Actions
The last rating action on Allied Irish Banks was on March 31,
2010, when the outlook on the D BFSR was changed to positive, from
developing.
The last rating action on Anglo Irish Bank was on March 1, 2010,
when the dated subordinated debt rating was downgraded to Ba1 from
Baa1.
The last rating action on Bank of Ireland was on March 31, 2010,
when the D BFSR was placed on review for possible upgrade.
The last rating action on EBS Building Society was on June 3,
2010, when the dated subordinated debt rating was downgraded to
Baa1 from A3 and the non-cumulative Tier 1 instruments (issued
through EBS Capital No1 S.A.) were downgraded to Ca from Caa1.
The last rating action on Irish Life & Permanent was on
February 10, 2010, when the undated subordinated debt rating was
downgraded to Ba3 from Ba1.
The last rating action on Irish Nationwide Building Society was on
March 31, 2010, when the E+ BFSR was confirmed.
All of the institutions are headquartered in Dublin, Ireland.
ANGLO IRISH: NAMA Transfer of EUR8 Billion Loans Not Yet Complete
-----------------------------------------------------------------
Simon Carswell at The Irish Times reports that the National Asset
Management Agency has yet to complete the transfer of almost EUR8
billion in loans it has estimated it will acquire in the second
tranche of loans from state-owned Anglo Irish Bank.
According to the report, the second tranche relates to land and
development loans owed by the 23 borrowers below the 10 biggest
development customers.
The report relates Nama said Anglo's loans would be acquired "over
the coming weeks after all necessary due diligence material has
been received and evaluated". An Anglo spokeswoman declined to
comment on the reasons for the delay, the report notes.
The report says it is believed that the volume of Anglo's loans in
the second tranche -- about EUR5.2 billion more than the next
largest (AIB with EUR2.73 billion) -- and the length of the due
diligence on the loans is the reason behind the delay.
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 April 7,
2010, Fitch Ratings affirmed Anglo Irish Bank Corporation's lower
Tier 2 subordinated debt downgraded to 'CCC' from 'BBB+'. Fitch
affirmed the rating on the bank's Upper Tier 2 subordinated notes
at 'CC'. It also affirmed the rating on the bank's Tier 1 notes
at 'C'
ANGLO IRISH: Moody's Maintains Review on Caa2 Sub. Debt Rating
--------------------------------------------------------------
Moody's Investors Service has downgraded the long-term debt and
deposit ratings of two Irish institutions -- EBS Building Society
and Irish Life & Permanent plc -- to A3 from A2 following the one-
notch downgrade of the Irish government's sovereign debt ratings
on July 19, 2010, to Aa2 with a stable outlook, from Aa1. At the
same time, Moody's downgraded to Aa2 from Aa1 the government-
guaranteed debt of the two institutions, as well as that of the
other four guaranteed institutions: Allied Irish Banks, Bank of
Ireland, Anglo Irish Bank, and Irish Nationwide Building Society.
The non-guaranteed ratings of other banks based in Ireland were
unaffected by this action.
In addition, Moody's has downgraded the rating of EBS' dated
subordinated EMTN program to Baa2 from A3. Further information on
this issue is set out below.
Rating Rationale
Out of the six Irish banking groups which currently benefit from
significant systemic support (BoI, AIB, EBS, IL&P, Anglo Irish and
INBS), the ratings of two institutions -- EBS and IL&P -- were
downgraded as a result of the downgrade of the Irish sovereign
ratings (see below for rating actions in detail), while the
ratings of BoI and AIB were affirmed. All four institutions have
the same standalone financial strength rating of D (mapping to a
Ba2 on the long-term scale). The debt ratings of Anglo Irish and
INBS remain under review.
The downgrade of the Irish government's own bond rating to Aa2
indicates a marginal reduction in the government's ability to
support its banking institutions. Among the four institutions
that have the same standalone rating of D (BoI, AIB, EBS and IL&P)
both EBS and IL&P are slightly more exposed to the sovereign
ratings downgrade. This is due to the different franchise
strength, role and importance of BoI and AIB compared to EBS and
IL&P, and this has always been reflected in a lower, albeit still
high, likelihood of systemic support for EBS and IL&P when
compared to BoI and AIB. The ratings of EBS and IL&P continue to
reflect this high level of implicit and, in the case of EBS,
explicit support the two institutions receive from the Irish
government. This very high level of support has lifted the senior
ratings 6 notches above the level that would be implied by their
stand-alone financial strength (D, which maps to Ba2 on Moody's
long-term rating scale), but with the downgrade of the Irish
government's own bond rating this uplift has now been reduced to 5
notches.
As the stable outlook on Bank of Ireland's and Allied Irish Banks'
debt ratings has indicated, the affirmation of these two banks'
ratings incorporates Moody's view that over the longer term these
two predominant banks should maintain their position in the
domestic Irish market and that their size and presence result in a
very high probability of on-going support from the Irish
government, even beyond the current difficult phase, which
continues to underpin the 7-notch uplift from their standalone
financial strength rating of D.
The decision to maintain the review of Anglo Irish and INBS takes
into consideration the company-specific challenges that drive the
ratings of these two institutions which are not affected by the
downgrade of the sovereign rating. Both institutions currently
have restructuring plans lodged with the European Commission as a
result of the extremely high level of State Aid that they have
received and these are likely to result in a split of Anglo Irish
into a good bank/bad bank, and in the case of Irish Nationwide it
is likely to be sold.
Outlooks
The outlook on the long-term bank deposit ratings, as well as on
the senior and dated subordinated debt, of EBS and IL&P is stable.
This reflects Moody's view that over the longer term the systemic
importance of the two institutions will remain high leading to a
likely continuation of on-going support from the Irish government
over the short- to medium term. The outlook on the long-term bank
deposit and senior debt ratings of AIB and BoI remains stable.
These ratings have been affected:
* EBS -- Long-term bank deposit and senior debt ratings downgraded
to A3 from A2, dated subordinated debt to Baa2 from Baa1, and
short-term bank deposit and debt ratings to Prime-2 from Prime-
1. Due to the downgrade of EBS's senior debt rating to A3,
Moody's also downgrades the Mortgage Backed Promissory Notes
issued by EBS and EBS Mortgage Finance to A1. The ratings of
the Mortgage Backed Promissory Notes benefit from a two notch
uplift from EBS's senior debt rating. The standalone Bank
Financial Strength Rating of D, which maps to Ba2 on the long
term rating scale, was not affected by the action. EBS's tier 1
debt rating of Ca was also not affected as it does not
incorporate any systemic support.
* IL&P -- Long-term bank deposit and senior debt ratings
downgraded to A3 from A2, dated subordinated debt to Baa1 from
A3, and short-term bank deposit and debt ratings to Prime-2 from
Prime-1. Due to the downgrade of IL&P's senior debt rating to
A3, Moody's also downgrades IL&P's Mortgage Backed Promissory
Notes to A1. The ratings of the Mortgage Backed Promissory
Notes benefit from a two notch uplift from the issuer's senior
debt rating. The standalone Bank Financial Strength Rating of
D, which maps to Ba2 on the long term rating scale, was not
affected by the action. IL&P's undated subordinated debt rating
of Ba3 was also not affected as it does not incorporate any
systemic support.
* AIB -- Long-term bank deposit and debt ratings have been
affirmed. These are A1 for long-term bank deposits and senior
debt, A2 for dated subordinated debt, Ba3 for undated
subordinated debt, B1 for cumulative tier 1 securities and Caa1
for non-cumulative tier 1 securities. The outlook on these
ratings is stable. AIB's bank financial strength rating of D,
which maps to Ba2 on the long term rating scale, with a positive
outlook is also unaffected by this rating action.
* BoI -- Long-term bank deposit and senior debt ratings have been
affirmed. These are A1 for long-term bank deposits and senior
debt, A2 for dated subordinated debt, Ba3 for undated
subordinated debt, B1 for cumulative tier 1 securities and Caa1
for non-cumulative tier 1 securities. The outlook on these
ratings is stable. BoI's bank financial strength rating is D,
on review for possible upgrade and this is also unaffected by
this rating action.
* Anglo Irish -- The A3/P-1 bank deposit and senior debt ratings
as well as the Ba1 dated subordinated debt rating and the Caa2
undated subordinated debt rating have been maintained under
review for possible downgrade as the key rating driver in
Moody's view remains the bank's restructuring plan that is
currently waiting EU approval. The outlook on the bank's E
BFSR, mapping to a Caa1 on the long-term scale, is stable.
* INBS -- The Baa3/P-3 bank deposit and senior debt ratings and
the Ba1 dated subordinated debt rating have been maintained
under review with uncertain direction. This review is focusing
on the likely sale of the institution in the future, which could
result in both an upgrade or a downgrade depending on the
details of the transaction and the credit quality of any
potential purchaser.
* All rated government-backed long-term debt issues of these six
Irish institutions have been downgraded to Aa2 from Aa1, with a
stable outlook, in line with the Irish government's debt rating.
Short-term debt programs of EBS and IL&P, guaranteed by the
Irish government, will remain rated Prime-1, in line with the
government's short-term rating.
* The ratings of the other Irish banks are unaffected by this
rating action as they either include a relatively low level of,
or no, systemic support; the rating uplift primarily stems from
parental support. These banks include KBC Bank Ireland (Baa2
negative; D-/Ba3 negative), Bank of Scotland (Ireland) (Baa1,
negative; D-/Ba3 negative), Ulster Bank Ireland (A2, negative;
D-/Ba3 negative), Zurich Bank (A1, stable; D-/Ba3 negative) and
Hewlett Packard International Bank (A2, stable; C-/Baa1 stable).
None of these banks have participated in the Irish governments
guarantee schemes.
Downgrade of the Dated Subordinated Emtn Programme Rating
of Ebs Building Society
Due to an administrative oversight, EBS' dated subordinated EMTN
program rating was not downgraded on June 3, 2010, when the dated
subordinated debt of EBS was downgraded to Baa1 from A3. For
further information on this downgrade, please refer to Moody's
press release entitled "Moody's downgrades EBS Building Society's
subordinated debt and tier 1 securities" dated June 3, 2010.
Taking this into account together with the rating actions, Moody's
has now downgraded EBS' EMTN Programme to Baa2 from A3.
Previous Rating Actions
The last rating action on Allied Irish Banks was on March 31,
2010, when the outlook on the D BFSR was changed to positive, from
developing.
The last rating action on Anglo Irish Bank was on March 1, 2010,
when the dated subordinated debt rating was downgraded to Ba1 from
Baa1.
The last rating action on Bank of Ireland was on March 31, 2010,
when the D BFSR was placed on review for possible upgrade.
The last rating action on EBS Building Society was on June 3,
2010, when the dated subordinated debt rating was downgraded to
Baa1 from A3 and the non-cumulative Tier 1 instruments (issued
through EBS Capital No1 S.A.) were downgraded to Ca from Caa1.
The last rating action on Irish Life & Permanent was on
February 10, 2010, when the undated subordinated debt rating was
downgraded to Ba3 from Ba1.
The last rating action on Irish Nationwide Building Society was on
March 31, 2010, when the E+ BFSR was confirmed.
All of the institutions are headquartered in Dublin, Ireland.
BANK OF IRELAND: McKillen to Pay NAMA Damages Over Loan Transfer
----------------------------------------------------------------
Dearbhail McDonald and Emmet Oliver at Irish Independent report
that developer Paddy McKillen promised to pay the National Asset
Management Agency damages for any financial losses it suffered as
a result of delays caused by his legal challenge to the Bank of
Ireland.
According to the report, NAMA demanded a pledge from Mr. McKillen
-- who originally sought to stop the agency from taking over an
EUR80 million tranche of loans he holds with Bank of Ireland --
that he would pay NAMA damages for losses it suffered as a result
of not being able to take over his loans. Potential losses
include a drop in the market value of the properties or if tenants
tried to stop paying rent, the report states. Under the 2009 NAMA
Act, anyone wishing to challenge the agency must agree to
compensate it if their defense fails, as part of a comprehensive
set of measures designed to prevent vexatious claims, the report
discloses.
The report relates promise-to-pay damages issue lapsed this week
after NAMA told Mr. McKillen that it would not transfer any of his
loans pending the outcome of his judicial review proceedings, the
first challenge against NAMA, which will be heard in the High
Court in October. The report says Mr. McKillen, who claimed the
transfer of his loans would result in "irreparable" prejudice that
could not be remedied by way of damages to his companies, is
engaging a host of constitutional law, banking and property
experts to assist him in his fight. He will argue before the High
Court that he is a property investor rather than a developer and
will claim his loans are not suitable for transfer as they are
commercial rather than land and development loans, the report
notes.
Headquartered in Dublin, Bank of Ireland --
http://www.bankofireland.com/-- provides a range of banking and
other financial services. These include checking and deposit
services, overdrafts, term loans, mortgages, business and
corporate lending, international asset financing, leasing,
installment credit, debt factoring, foreign exchange facilities,
interest and exchange rate hedging instruments, executor, trustee,
life assurance and pension and investment fund management, fund
administration and custodial services and financial advisory
services, including mergers and acquisitions and underwriting.
The Company organizes its businesses into Retail Republic of
Ireland, Bank of Ireland Life, Capital Markets, UK Financial
Services and Group Centre. It has operations throughout Ireland,
the United Kingdom, Europe and the United States.
* * *
As reported by the Troubled Company Reporter-Europe on April 7,
2010, Fitch Ratings affirmed the rating on Bank of Ireland's
Tier 1 notes at 'CCC' (ISINs: XS0268599999, US055967AA11 and
USG12255AA64).
At the same time, Moody's Investors Service placed Bank of
Ireland's D bank financial strength rating (BFSR -- mapping to a
baseline credit assessment of Ba2) on review for possible upgrade,
previously they had a developing outlook.
BANK OF IRELAND: Moody's Affirms Long-Term Deposit Ratings
----------------------------------------------------------
Moody's Investors Service has downgraded the long-term debt and
deposit ratings of two Irish institutions -- EBS Building Society
and Irish Life & Permanent plc -- to A3 from A2 following the one-
notch downgrade of the Irish government's sovereign debt ratings
on July 19, 2010, to Aa2 with a stable outlook, from Aa1. At the
same time, Moody's downgraded to Aa2 from Aa1 the government-
guaranteed debt of the two institutions, as well as that of the
other four guaranteed institutions: Allied Irish Banks, Bank of
Ireland, Anglo Irish Bank, and Irish Nationwide Building Society.
The non-guaranteed ratings of other banks based in Ireland were
unaffected by this action.
In addition, Moody's has downgraded the rating of EBS' dated
subordinated EMTN program to Baa2 from A3. Further information on
this issue is set out below.
Rating Rationale
Out of the six Irish banking groups which currently benefit from
significant systemic support (BoI, AIB, EBS, IL&P, Anglo Irish and
INBS), the ratings of two institutions -- EBS and IL&P -- were
downgraded as a result of the downgrade of the Irish sovereign
ratings (see below for rating actions in detail), while the
ratings of BoI and AIB were affirmed. All four institutions have
the same standalone financial strength rating of D (mapping to a
Ba2 on the long-term scale). The debt ratings of Anglo Irish and
INBS remain under review.
The downgrade of the Irish government's own bond rating to Aa2
indicates a marginal reduction in the government's ability to
support its banking institutions. Among the four institutions
that have the same standalone rating of D (BoI, AIB, EBS and IL&P)
both EBS and IL&P are slightly more exposed to the sovereign
ratings downgrade. This is due to the different franchise
strength, role and importance of BoI and AIB compared to EBS and
IL&P, and this has always been reflected in a lower, albeit still
high, likelihood of systemic support for EBS and IL&P when
compared to BoI and AIB. The ratings of EBS and IL&P continue to
reflect this high level of implicit and, in the case of EBS,
explicit support the two institutions receive from the Irish
government. This very high level of support has lifted the senior
ratings 6 notches above the level that would be implied by their
stand-alone financial strength (D, which maps to Ba2 on Moody's
long-term rating scale), but with the downgrade of the Irish
government's own bond rating this uplift has now been reduced to 5
notches.
As the stable outlook on Bank of Ireland's and Allied Irish Banks'
debt ratings has indicated, the affirmation of these two banks'
ratings incorporates Moody's view that over the longer term these
two predominant banks should maintain their position in the
domestic Irish market and that their size and presence result in a
very high probability of on-going support from the Irish
government, even beyond the current difficult phase, which
continues to underpin the 7-notch uplift from their standalone
financial strength rating of D.
The decision to maintain the review of Anglo Irish and INBS takes
into consideration the company-specific challenges that drive the
ratings of these two institutions which are not affected by the
downgrade of the sovereign rating. Both institutions currently
have restructuring plans lodged with the European Commission as a
result of the extremely high level of State Aid that they have
received and these are likely to result in a split of Anglo Irish
into a good bank/bad bank, and in the case of Irish Nationwide it
is likely to be sold.
Outlooks
The outlook on the long-term bank deposit ratings, as well as on
the senior and dated subordinated debt, of EBS and IL&P is stable.
This reflects Moody's view that over the longer term the systemic
importance of the two institutions will remain high leading to a
likely continuation of on-going support from the Irish government
over the short- to medium term. The outlook on the long-term bank
deposit and senior debt ratings of AIB and BoI remains stable.
These ratings have been affected:
* EBS -- Long-term bank deposit and senior debt ratings downgraded
to A3 from A2, dated subordinated debt to Baa2 from Baa1, and
short-term bank deposit and debt ratings to Prime-2 from Prime-
1. Due to the downgrade of EBS's senior debt rating to A3,
Moody's also downgrades the Mortgage Backed Promissory Notes
issued by EBS and EBS Mortgage Finance to A1. The ratings of
the Mortgage Backed Promissory Notes benefit from a two notch
uplift from EBS's senior debt rating. The standalone Bank
Financial Strength Rating of D, which maps to Ba2 on the long
term rating scale, was not affected by the action. EBS's tier 1
debt rating of Ca was also not affected as it does not
incorporate any systemic support.
* IL&P -- Long-term bank deposit and senior debt ratings
downgraded to A3 from A2, dated subordinated debt to Baa1 from
A3, and short-term bank deposit and debt ratings to Prime-2 from
Prime-1. Due to the downgrade of IL&P's senior debt rating to
A3, Moody's also downgrades IL&P's Mortgage Backed Promissory
Notes to A1. The ratings of the Mortgage Backed Promissory
Notes benefit from a two notch uplift from the issuer's senior
debt rating. The standalone Bank Financial Strength Rating of
D, which maps to Ba2 on the long term rating scale, was not
affected by the action. IL&P's undated subordinated debt rating
of Ba3 was also not affected as it does not incorporate any
systemic support.
* AIB -- Long-term bank deposit and debt ratings have been
affirmed. These are A1 for long-term bank deposits and senior
debt, A2 for dated subordinated debt, Ba3 for undated
subordinated debt, B1 for cumulative tier 1 securities and Caa1
for non-cumulative tier 1 securities. The outlook on these
ratings is stable. AIB's bank financial strength rating of D,
which maps to Ba2 on the long term rating scale, with a positive
outlook is also unaffected by this rating action.
* BoI -- Long-term bank deposit and senior debt ratings have been
affirmed. These are A1 for long-term bank deposits and senior
debt, A2 for dated subordinated debt, Ba3 for undated
subordinated debt, B1 for cumulative tier 1 securities and Caa1
for non-cumulative tier 1 securities. The outlook on these
ratings is stable. BoI's bank financial strength rating is D,
on review for possible upgrade and this is also unaffected by
this rating action.
* Anglo Irish -- The A3/P-1 bank deposit and senior debt ratings
as well as the Ba1 dated subordinated debt rating and the Caa2
undated subordinated debt rating have been maintained under
review for possible downgrade as the key rating driver in
Moody's view remains the bank's restructuring plan that is
currently waiting EU approval. The outlook on the bank's E
BFSR, mapping to a Caa1 on the long-term scale, is stable.
* INBS -- The Baa3/P-3 bank deposit and senior debt ratings and
the Ba1 dated subordinated debt rating have been maintained
under review with uncertain direction. This review is focusing
on the likely sale of the institution in the future, which could
result in both an upgrade or a downgrade depending on the
details of the transaction and the credit quality of any
potential purchaser.
* All rated government-backed long-term debt issues of these six
Irish institutions have been downgraded to Aa2 from Aa1, with a
stable outlook, in line with the Irish government's debt rating.
Short-term debt programs of EBS and IL&P, guaranteed by the
Irish government, will remain rated Prime-1, in line with the
government's short-term rating.
* The ratings of the other Irish banks are unaffected by this
rating action as they either include a relatively low level of,
or no, systemic support; the rating uplift primarily stems from
parental support. These banks include KBC Bank Ireland (Baa2
negative; D-/Ba3 negative), Bank of Scotland (Ireland) (Baa1,
negative; D-/Ba3 negative), Ulster Bank Ireland (A2, negative;
D-/Ba3 negative), Zurich Bank (A1, stable; D-/Ba3 negative) and
Hewlett Packard International Bank (A2, stable; C-/Baa1 stable).
None of these banks have participated in the Irish governments
guarantee schemes.
Downgrade of the Dated Subordinated Emtn Programme Rating
of Ebs Building Society
Due to an administrative oversight, EBS' dated subordinated EMTN
program rating was not downgraded on June 3, 2010, when the dated
subordinated debt of EBS was downgraded to Baa1 from A3. For
further information on this downgrade, please refer to Moody's
press release entitled "Moody's downgrades EBS Building Society's
subordinated debt and tier 1 securities" dated June 3, 2010.
Taking this into account together with the rating actions, Moody's
has now downgraded EBS' EMTN Programme to Baa2 from A3.
Previous Rating Actions
The last rating action on Allied Irish Banks was on March 31,
2010, when the outlook on the D BFSR was changed to positive, from
developing.
The last rating action on Anglo Irish Bank was on March 1, 2010,
when the dated subordinated debt rating was downgraded to Ba1 from
Baa1.
The last rating action on Bank of Ireland was on March 31, 2010,
when the D BFSR was placed on review for possible upgrade.
The last rating action on EBS Building Society was on June 3,
2010, when the dated subordinated debt rating was downgraded to
Baa1 from A3 and the non-cumulative Tier 1 instruments (issued
through EBS Capital No1 S.A.) were downgraded to Ca from Caa1.
The last rating action on Irish Life & Permanent was on
February 10, 2010, when the undated subordinated debt rating was
downgraded to Ba3 from Ba1.
The last rating action on Irish Nationwide Building Society was on
March 31, 2010, when the E+ BFSR was confirmed.
All of the institutions are headquartered in Dublin, Ireland.
EBS BUILDING: Moody's Lowers Long-Term Debt & Deposit Ratings
-------------------------------------------------------------
Moody's Investors Service has downgraded the long-term debt and
deposit ratings of two Irish institutions -- EBS Building Society
and Irish Life & Permanent plc -- to A3 from A2 following the one-
notch downgrade of the Irish government's sovereign debt ratings
on July 19, 2010, to Aa2 with a stable outlook, from Aa1. At the
same time, Moody's downgraded to Aa2 from Aa1 the government-
guaranteed debt of the two institutions, as well as that of the
other four guaranteed institutions: Allied Irish Banks, Bank of
Ireland, Anglo Irish Bank, and Irish Nationwide Building Society.
The non-guaranteed ratings of other banks based in Ireland were
unaffected by this action.
In addition, Moody's has downgraded the rating of EBS' dated
subordinated EMTN program to Baa2 from A3. Further information on
this issue is set out below.
Rating Rationale
Out of the six Irish banking groups which currently benefit from
significant systemic support (BoI, AIB, EBS, IL&P, Anglo Irish and
INBS), the ratings of two institutions -- EBS and IL&P -- were
downgraded as a result of the downgrade of the Irish sovereign
ratings (see below for rating actions in detail), while the
ratings of BoI and AIB were affirmed. All four institutions have
the same standalone financial strength rating of D (mapping to a
Ba2 on the long-term scale). The debt ratings of Anglo Irish and
INBS remain under review.
The downgrade of the Irish government's own bond rating to Aa2
indicates a marginal reduction in the government's ability to
support its banking institutions. Among the four institutions
that have the same standalone rating of D (BoI, AIB, EBS and IL&P)
both EBS and IL&P are slightly more exposed to the sovereign
ratings downgrade. This is due to the different franchise
strength, role and importance of BoI and AIB compared to EBS and
IL&P, and this has always been reflected in a lower, albeit still
high, likelihood of systemic support for EBS and IL&P when
compared to BoI and AIB. The ratings of EBS and IL&P continue to
reflect this high level of implicit and, in the case of EBS,
explicit support the two institutions receive from the Irish
government. This very high level of support has lifted the senior
ratings 6 notches above the level that would be implied by their
stand-alone financial strength (D, which maps to Ba2 on Moody's
long-term rating scale), but with the downgrade of the Irish
government's own bond rating this uplift has now been reduced to 5
notches.
As the stable outlook on Bank of Ireland's and Allied Irish Banks'
debt ratings has indicated, the affirmation of these two banks'
ratings incorporates Moody's view that over the longer term these
two predominant banks should maintain their position in the
domestic Irish market and that their size and presence result in a
very high probability of on-going support from the Irish
government, even beyond the current difficult phase, which
continues to underpin the 7-notch uplift from their standalone
financial strength rating of D.
The decision to maintain the review of Anglo Irish and INBS takes
into consideration the company-specific challenges that drive the
ratings of these two institutions which are not affected by the
downgrade of the sovereign rating. Both institutions currently
have restructuring plans lodged with the European Commission as a
result of the extremely high level of State Aid that they have
received and these are likely to result in a split of Anglo Irish
into a good bank/bad bank, and in the case of Irish Nationwide it
is likely to be sold.
Outlooks
The outlook on the long-term bank deposit ratings, as well as on
the senior and dated subordinated debt, of EBS and IL&P is stable.
This reflects Moody's view that over the longer term the systemic
importance of the two institutions will remain high leading to a
likely continuation of on-going support from the Irish government
over the short- to medium term. The outlook on the long-term bank
deposit and senior debt ratings of AIB and BoI remains stable.
These ratings have been affected:
* EBS -- Long-term bank deposit and senior debt ratings downgraded
to A3 from A2, dated subordinated debt to Baa2 from Baa1, and
short-term bank deposit and debt ratings to Prime-2 from Prime-
1. Due to the downgrade of EBS's senior debt rating to A3,
Moody's also downgrades the Mortgage Backed Promissory Notes
issued by EBS and EBS Mortgage Finance to A1. The ratings of
the Mortgage Backed Promissory Notes benefit from a two notch
uplift from EBS's senior debt rating. The standalone Bank
Financial Strength Rating of D, which maps to Ba2 on the long
term rating scale, was not affected by the action. EBS's tier 1
debt rating of Ca was also not affected as it does not
incorporate any systemic support.
* IL&P -- Long-term bank deposit and senior debt ratings
downgraded to A3 from A2, dated subordinated debt to Baa1 from
A3, and short-term bank deposit and debt ratings to Prime-2 from
Prime-1. Due to the downgrade of IL&P's senior debt rating to
A3, Moody's also downgrades IL&P's Mortgage Backed Promissory
Notes to A1. The ratings of the Mortgage Backed Promissory
Notes benefit from a two notch uplift from the issuer's senior
debt rating. The standalone Bank Financial Strength Rating of
D, which maps to Ba2 on the long term rating scale, was not
affected by the action. IL&P's undated subordinated debt rating
of Ba3 was also not affected as it does not incorporate any
systemic support.
* AIB -- Long-term bank deposit and debt ratings have been
affirmed. These are A1 for long-term bank deposits and senior
debt, A2 for dated subordinated debt, Ba3 for undated
subordinated debt, B1 for cumulative tier 1 securities and Caa1
for non-cumulative tier 1 securities. The outlook on these
ratings is stable. AIB's bank financial strength rating of D,
which maps to Ba2 on the long term rating scale, with a positive
outlook is also unaffected by this rating action.
* BoI -- Long-term bank deposit and senior debt ratings have been
affirmed. These are A1 for long-term bank deposits and senior
debt, A2 for dated subordinated debt, Ba3 for undated
subordinated debt, B1 for cumulative tier 1 securities and Caa1
for non-cumulative tier 1 securities. The outlook on these
ratings is stable. BoI's bank financial strength rating is D,
on review for possible upgrade and this is also unaffected by
this rating action.
* Anglo Irish -- The A3/P-1 bank deposit and senior debt ratings
as well as the Ba1 dated subordinated debt rating and the Caa2
undated subordinated debt rating have been maintained under
review for possible downgrade as the key rating driver in
Moody's view remains the bank's restructuring plan that is
currently waiting EU approval. The outlook on the bank's E
BFSR, mapping to a Caa1 on the long-term scale, is stable.
* INBS -- The Baa3/P-3 bank deposit and senior debt ratings and
the Ba1 dated subordinated debt rating have been maintained
under review with uncertain direction. This review is focusing
on the likely sale of the institution in the future, which could
result in both an upgrade or a downgrade depending on the
details of the transaction and the credit quality of any
potential purchaser.
* All rated government-backed long-term debt issues of these six
Irish institutions have been downgraded to Aa2 from Aa1, with a
stable outlook, in line with the Irish government's debt rating.
Short-term debt programs of EBS and IL&P, guaranteed by the
Irish government, will remain rated Prime-1, in line with the
government's short-term rating.
* The ratings of the other Irish banks are unaffected by this
rating action as they either include a relatively low level of,
or no, systemic support; the rating uplift primarily stems from
parental support. These banks include KBC Bank Ireland (Baa2
negative; D-/Ba3 negative), Bank of Scotland (Ireland) (Baa1,
negative; D-/Ba3 negative), Ulster Bank Ireland (A2, negative;
D-/Ba3 negative), Zurich Bank (A1, stable; D-/Ba3 negative) and
Hewlett Packard International Bank (A2, stable; C-/Baa1 stable).
None of these banks have participated in the Irish governments
guarantee schemes.
Downgrade of the Dated Subordinated Emtn Programme Rating
of Ebs Building Society
Due to an administrative oversight, EBS' dated subordinated EMTN
program rating was not downgraded on June 3, 2010, when the dated
subordinated debt of EBS was downgraded to Baa1 from A3. For
further information on this downgrade, please refer to Moody's
press release entitled "Moody's downgrades EBS Building Society's
subordinated debt and tier 1 securities" dated June 3, 2010.
Taking this into account together with the rating actions, Moody's
has now downgraded EBS' EMTN Programme to Baa2 from A3.
Previous Rating Actions
The last rating action on Allied Irish Banks was on March 31,
2010, when the outlook on the D BFSR was changed to positive, from
developing.
The last rating action on Anglo Irish Bank was on March 1, 2010,
when the dated subordinated debt rating was downgraded to Ba1 from
Baa1.
The last rating action on Bank of Ireland was on March 31, 2010,
when the D BFSR was placed on review for possible upgrade.
The last rating action on EBS Building Society was on June 3,
2010, when the dated subordinated debt rating was downgraded to
Baa1 from A3 and the non-cumulative Tier 1 instruments (issued
through EBS Capital No1 S.A.) were downgraded to Ca from Caa1.
The last rating action on Irish Life & Permanent was on
February 10, 2010, when the undated subordinated debt rating was
downgraded to Ba3 from Ba1.
The last rating action on Irish Nationwide Building Society was on
March 31, 2010, when the E+ BFSR was confirmed.
All of the institutions are headquartered in Dublin, Ireland.
FLEMING ENERGY: AIB Gets Summary Judgment Order v. John Fleming
---------------------------------------------------------------
Irish Independent reports that Allied Irish Banks has secured a
EUR25.9 million summary judgment order against Cork businessman
and developer John Fleming over loan guarantees.
According to the report, Sarah McKechnie, representing Mr.
Fleming, said her client was neither consenting to nor opposing
judgment. In those circumstances, Mr. Justice Kelly granted an
application by Bill Shipsey, representing AIB, to enter summary
judgment for EUR25,994,340 plus costs, the report relates.
The claim arose from a guarantee executed on May 20, 2008, by
Mr. Fleming, the report discloses. The guarantee related to all
liabilities to the bank, to a maximum EUR26 million, of Fleming
Energy, a subsidiary of the JJ Fleming group of companies, and was
part of the security provided for credit facilities advanced to
Fleming Energy. The report recalls the main loan provided to
Fleming Energy was US$32.4 million advanced in June 2007 to assist
with the purchase of a 51% shareholding in Plymouth Energy LLC, a
company registered in the US and established to purchase and
develop a 57-acre site in Iowa.
The report notes AIB said it had agreed not to demand repayment of
the loans while companies in the Fleming group were under court
protection, but after protection was ended last March it issued
demands for repayment.
Fleming Energy is a renewable and alternative energy provider with
registered offices at New Cork Road, Bandon, Co Cork. It is part
of the Fleming Group, which was founded by John Fleming from the
Seven Heads Peninsula in West Cork in 1975.
IRISH LIFE: Moody's Downgrades Long-Term Debt & Deposit Ratings
---------------------------------------------------------------
Moody's Investors Service has downgraded the long-term debt and
deposit ratings of two Irish institutions -- EBS Building Society
and Irish Life & Permanent plc -- to A3 from A2 following the one-
notch downgrade of the Irish government's sovereign debt ratings
on July 19, 2010, to Aa2 with a stable outlook, from Aa1. At the
same time, Moody's downgraded to Aa2 from Aa1 the government-
guaranteed debt of the two institutions, as well as that of the
other four guaranteed institutions: Allied Irish Banks, Bank of
Ireland, Anglo Irish Bank, and Irish Nationwide Building Society.
The non-guaranteed ratings of other banks based in Ireland were
unaffected by this action.
In addition, Moody's has downgraded the rating of EBS' dated
subordinated EMTN program to Baa2 from A3. Further information on
this issue is set out below.
Rating Rationale
Out of the six Irish banking groups which currently benefit from
significant systemic support (BoI, AIB, EBS, IL&P, Anglo Irish and
INBS), the ratings of two institutions -- EBS and IL&P -- were
downgraded as a result of the downgrade of the Irish sovereign
ratings (see below for rating actions in detail), while the
ratings of BoI and AIB were affirmed. All four institutions have
the same standalone financial strength rating of D (mapping to a
Ba2 on the long-term scale). The debt ratings of Anglo Irish and
INBS remain under review.
The downgrade of the Irish government's own bond rating to Aa2
indicates a marginal reduction in the government's ability to
support its banking institutions. Among the four institutions
that have the same standalone rating of D (BoI, AIB, EBS and IL&P)
both EBS and IL&P are slightly more exposed to the sovereign
ratings downgrade. This is due to the different franchise
strength, role and importance of BoI and AIB compared to EBS and
IL&P, and this has always been reflected in a lower, albeit still
high, likelihood of systemic support for EBS and IL&P when
compared to BoI and AIB. The ratings of EBS and IL&P continue to
reflect this high level of implicit and, in the case of EBS,
explicit support the two institutions receive from the Irish
government. This very high level of support has lifted the senior
ratings 6 notches above the level that would be implied by their
stand-alone financial strength (D, which maps to Ba2 on Moody's
long-term rating scale), but with the downgrade of the Irish
government's own bond rating this uplift has now been reduced to 5
notches.
As the stable outlook on Bank of Ireland's and Allied Irish Banks'
debt ratings has indicated, the affirmation of these two banks'
ratings incorporates Moody's view that over the longer term these
two predominant banks should maintain their position in the
domestic Irish market and that their size and presence result in a
very high probability of on-going support from the Irish
government, even beyond the current difficult phase, which
continues to underpin the 7-notch uplift from their standalone
financial strength rating of D.
The decision to maintain the review of Anglo Irish and INBS takes
into consideration the company-specific challenges that drive the
ratings of these two institutions which are not affected by the
downgrade of the sovereign rating. Both institutions currently
have restructuring plans lodged with the European Commission as a
result of the extremely high level of State Aid that they have
received and these are likely to result in a split of Anglo Irish
into a good bank/bad bank, and in the case of Irish Nationwide it
is likely to be sold.
Outlooks
The outlook on the long-term bank deposit ratings, as well as on
the senior and dated subordinated debt, of EBS and IL&P is stable.
This reflects Moody's view that over the longer term the systemic
importance of the two institutions will remain high leading to a
likely continuation of on-going support from the Irish government
over the short- to medium term. The outlook on the long-term bank
deposit and senior debt ratings of AIB and BoI remains stable.
These ratings have been affected:
* EBS -- Long-term bank deposit and senior debt ratings downgraded
to A3 from A2, dated subordinated debt to Baa2 from Baa1, and
short-term bank deposit and debt ratings to Prime-2 from Prime-
1. Due to the downgrade of EBS's senior debt rating to A3,
Moody's also downgrades the Mortgage Backed Promissory Notes
issued by EBS and EBS Mortgage Finance to A1. The ratings of
the Mortgage Backed Promissory Notes benefit from a two notch
uplift from EBS's senior debt rating. The standalone Bank
Financial Strength Rating of D, which maps to Ba2 on the long
term rating scale, was not affected by the action. EBS's tier 1
debt rating of Ca was also not affected as it does not
incorporate any systemic support.
* IL&P -- Long-term bank deposit and senior debt ratings
downgraded to A3 from A2, dated subordinated debt to Baa1 from
A3, and short-term bank deposit and debt ratings to Prime-2 from
Prime-1. Due to the downgrade of IL&P's senior debt rating to
A3, Moody's also downgrades IL&P's Mortgage Backed Promissory
Notes to A1. The ratings of the Mortgage Backed Promissory
Notes benefit from a two notch uplift from the issuer's senior
debt rating. The standalone Bank Financial Strength Rating of
D, which maps to Ba2 on the long term rating scale, was not
affected by the action. IL&P's undated subordinated debt rating
of Ba3 was also not affected as it does not incorporate any
systemic support.
* AIB -- Long-term bank deposit and debt ratings have been
affirmed. These are A1 for long-term bank deposits and senior
debt, A2 for dated subordinated debt, Ba3 for undated
subordinated debt, B1 for cumulative tier 1 securities and Caa1
for non-cumulative tier 1 securities. The outlook on these
ratings is stable. AIB's bank financial strength rating of D,
which maps to Ba2 on the long term rating scale, with a positive
outlook is also unaffected by this rating action.
* BoI -- Long-term bank deposit and senior debt ratings have been
affirmed. These are A1 for long-term bank deposits and senior
debt, A2 for dated subordinated debt, Ba3 for undated
subordinated debt, B1 for cumulative tier 1 securities and Caa1
for non-cumulative tier 1 securities. The outlook on these
ratings is stable. BoI's bank financial strength rating is D,
on review for possible upgrade and this is also unaffected by
this rating action.
* Anglo Irish -- The A3/P-1 bank deposit and senior debt ratings
as well as the Ba1 dated subordinated debt rating and the Caa2
undated subordinated debt rating have been maintained under
review for possible downgrade as the key rating driver in
Moody's view remains the bank's restructuring plan that is
currently waiting EU approval. The outlook on the bank's E
BFSR, mapping to a Caa1 on the long-term scale, is stable.
* INBS -- The Baa3/P-3 bank deposit and senior debt ratings and
the Ba1 dated subordinated debt rating have been maintained
under review with uncertain direction. This review is focusing
on the likely sale of the institution in the future, which could
result in both an upgrade or a downgrade depending on the
details of the transaction and the credit quality of any
potential purchaser.
* All rated government-backed long-term debt issues of these six
Irish institutions have been downgraded to Aa2 from Aa1, with a
stable outlook, in line with the Irish government's debt rating.
Short-term debt programs of EBS and IL&P, guaranteed by the
Irish government, will remain rated Prime-1, in line with the
government's short-term rating.
* The ratings of the other Irish banks are unaffected by this
rating action as they either include a relatively low level of,
or no, systemic support; the rating uplift primarily stems from
parental support. These banks include KBC Bank Ireland (Baa2
negative; D-/Ba3 negative), Bank of Scotland (Ireland) (Baa1,
negative; D-/Ba3 negative), Ulster Bank Ireland (A2, negative;
D-/Ba3 negative), Zurich Bank (A1, stable; D-/Ba3 negative) and
Hewlett Packard International Bank (A2, stable; C-/Baa1 stable).
None of these banks have participated in the Irish governments
guarantee schemes.
Downgrade of the Dated Subordinated Emtn Programme Rating
of Ebs Building Society
Due to an administrative oversight, EBS' dated subordinated EMTN
program rating was not downgraded on June 3, 2010, when the dated
subordinated debt of EBS was downgraded to Baa1 from A3. For
further information on this downgrade, please refer to Moody's
press release entitled "Moody's downgrades EBS Building Society's
subordinated debt and tier 1 securities" dated June 3, 2010.
Taking this into account together with the rating actions, Moody's
has now downgraded EBS' EMTN Programme to Baa2 from A3.
Previous Rating Actions
The last rating action on Allied Irish Banks was on March 31,
2010, when the outlook on the D BFSR was changed to positive, from
developing.
The last rating action on Anglo Irish Bank was on March 1, 2010,
when the dated subordinated debt rating was downgraded to Ba1 from
Baa1.
The last rating action on Bank of Ireland was on March 31, 2010,
when the D BFSR was placed on review for possible upgrade.
The last rating action on EBS Building Society was on June 3,
2010, when the dated subordinated debt rating was downgraded to
Baa1 from A3 and the non-cumulative Tier 1 instruments (issued
through EBS Capital No1 S.A.) were downgraded to Ca from Caa1.
The last rating action on Irish Life & Permanent was on
February 10, 2010, when the undated subordinated debt rating was
downgraded to Ba3 from Ba1.
The last rating action on Irish Nationwide Building Society was on
March 31, 2010, when the E+ BFSR was confirmed.
All of the institutions are headquartered in Dublin, Ireland.
IRISH NATIONWIDE: Takes 72.4% Writedown in Loans Sold to NAMA
-------------------------------------------------------------
Simon Carswell at The Irish Times reports that Irish Nationwide
suffered the largest discount in the second wave of loans sold to
the National Asset Management Agency due to writedowns of up to
90% on loans provided for speculative land purchases where no
planning approval had been secured.
According to the report, the building society took a 72.4%
writedown on EUR591 million in loans sold to Nama in the second
tranche linked to 23 borrowers in the tier below the 10 biggest
development borrowers.
The report says Irish Nationwide is expected to transfer large
numbers of UK loans to Nama in the third and subsequent tranches.
The value of loans in the third wave is likely to exceed the
second wave of loans, the report notes.
Some EUR818 million has been written off EUR1.26 billion of loans
sold by the building society so far, the report discloses. The
society wrote off EUR2.8 billion in loans in its 2009 accounts,
the report discloses.
The report relates Nama has said it plans to purchase a total of
about EUR9 billion in loans from Irish Nationwide before February
2011, the deadline set by the European Commission for the transfer
of EUR81 billion Nama-bound loans from the five participating
financial institutions.
Irish Nationwide has said that if discounts rise on later loan
transfers, then the building society may need more than the EUR2.7
billion committed by the Irish government, the report states.
Irish Nationwide Building Society, headquartered in Dublin,
Ireland, had total assets of EUR14.4 billion at year-end 2008.
* * *
As reported by the Troubled Company Reporter-Europe on April 7,
2010, Fitch Ratings downgraded the Individual rating of Irish
Nationwide Building Society to 'F' from 'E'. The rating was
downgraded to 'F' to reflect that, in Fitch's opinion, it would
have defaulted if it had not received external support.
IRISH NATIONWIDE: Moody's Maintains Review on Deposit Ratings
-------------------------------------------------------------
Moody's Investors Service has downgraded the long-term debt and
deposit ratings of two Irish institutions -- EBS Building Society
and Irish Life & Permanent plc -- to A3 from A2 following the one-
notch downgrade of the Irish government's sovereign debt ratings
on July 19, 2010, to Aa2 with a stable outlook, from Aa1. At the
same time, Moody's downgraded to Aa2 from Aa1 the government-
guaranteed debt of the two institutions, as well as that of the
other four guaranteed institutions: Allied Irish Banks, Bank of
Ireland, Anglo Irish Bank, and Irish Nationwide Building Society.
The non-guaranteed ratings of other banks based in Ireland were
unaffected by this action.
In addition, Moody's has downgraded the rating of EBS' dated
subordinated EMTN program to Baa2 from A3. Further information on
this issue is set out below.
Rating Rationale
Out of the six Irish banking groups which currently benefit from
significant systemic support (BoI, AIB, EBS, IL&P, Anglo Irish and
INBS), the ratings of two institutions -- EBS and IL&P -- were
downgraded as a result of the downgrade of the Irish sovereign
ratings (see below for rating actions in detail), while the
ratings of BoI and AIB were affirmed. All four institutions have
the same standalone financial strength rating of D (mapping to a
Ba2 on the long-term scale). The debt ratings of Anglo Irish and
INBS remain under review.
The downgrade of the Irish government's own bond rating to Aa2
indicates a marginal reduction in the government's ability to
support its banking institutions. Among the four institutions
that have the same standalone rating of D (BoI, AIB, EBS and IL&P)
both EBS and IL&P are slightly more exposed to the sovereign
ratings downgrade. This is due to the different franchise
strength, role and importance of BoI and AIB compared to EBS and
IL&P, and this has always been reflected in a lower, albeit still
high, likelihood of systemic support for EBS and IL&P when
compared to BoI and AIB. The ratings of EBS and IL&P continue to
reflect this high level of implicit and, in the case of EBS,
explicit support the two institutions receive from the Irish
government. This very high level of support has lifted the senior
ratings 6 notches above the level that would be implied by their
stand-alone financial strength (D, which maps to Ba2 on Moody's
long-term rating scale), but with the downgrade of the Irish
government's own bond rating this uplift has now been reduced to 5
notches.
As the stable outlook on Bank of Ireland's and Allied Irish Banks'
debt ratings has indicated, the affirmation of these two banks'
ratings incorporates Moody's view that over the longer term these
two predominant banks should maintain their position in the
domestic Irish market and that their size and presence result in a
very high probability of on-going support from the Irish
government, even beyond the current difficult phase, which
continues to underpin the 7-notch uplift from their standalone
financial strength rating of D.
The decision to maintain the review of Anglo Irish and INBS takes
into consideration the company-specific challenges that drive the
ratings of these two institutions which are not affected by the
downgrade of the sovereign rating. Both institutions currently
have restructuring plans lodged with the European Commission as a
result of the extremely high level of State Aid that they have
received and these are likely to result in a split of Anglo Irish
into a good bank/bad bank, and in the case of Irish Nationwide it
is likely to be sold.
Outlooks
The outlook on the long-term bank deposit ratings, as well as on
the senior and dated subordinated debt, of EBS and IL&P is stable.
This reflects Moody's view that over the longer term the systemic
importance of the two institutions will remain high leading to a
likely continuation of on-going support from the Irish government
over the short- to medium term. The outlook on the long-term bank
deposit and senior debt ratings of AIB and BoI remains stable.
These ratings have been affected:
* EBS -- Long-term bank deposit and senior debt ratings downgraded
to A3 from A2, dated subordinated debt to Baa2 from Baa1, and
short-term bank deposit and debt ratings to Prime-2 from Prime-
1. Due to the downgrade of EBS's senior debt rating to A3,
Moody's also downgrades the Mortgage Backed Promissory Notes
issued by EBS and EBS Mortgage Finance to A1. The ratings of
the Mortgage Backed Promissory Notes benefit from a two notch
uplift from EBS's senior debt rating. The standalone Bank
Financial Strength Rating of D, which maps to Ba2 on the long
term rating scale, was not affected by the action. EBS's tier 1
debt rating of Ca was also not affected as it does not
incorporate any systemic support.
* IL&P -- Long-term bank deposit and senior debt ratings
downgraded to A3 from A2, dated subordinated debt to Baa1 from
A3, and short-term bank deposit and debt ratings to Prime-2 from
Prime-1. Due to the downgrade of IL&P's senior debt rating to
A3, Moody's also downgrades IL&P's Mortgage Backed Promissory
Notes to A1. The ratings of the Mortgage Backed Promissory
Notes benefit from a two notch uplift from the issuer's senior
debt rating. The standalone Bank Financial Strength Rating of
D, which maps to Ba2 on the long term rating scale, was not
affected by the action. IL&P's undated subordinated debt rating
of Ba3 was also not affected as it does not incorporate any
systemic support.
* AIB -- Long-term bank deposit and debt ratings have been
affirmed. These are A1 for long-term bank deposits and senior
debt, A2 for dated subordinated debt, Ba3 for undated
subordinated debt, B1 for cumulative tier 1 securities and Caa1
for non-cumulative tier 1 securities. The outlook on these
ratings is stable. AIB's bank financial strength rating of D,
which maps to Ba2 on the long term rating scale, with a positive
outlook is also unaffected by this rating action.
* BoI -- Long-term bank deposit and senior debt ratings have been
affirmed. These are A1 for long-term bank deposits and senior
debt, A2 for dated subordinated debt, Ba3 for undated
subordinated debt, B1 for cumulative tier 1 securities and Caa1
for non-cumulative tier 1 securities. The outlook on these
ratings is stable. BoI's bank financial strength rating is D,
on review for possible upgrade and this is also unaffected by
this rating action.
* Anglo Irish -- The A3/P-1 bank deposit and senior debt ratings
as well as the Ba1 dated subordinated debt rating and the Caa2
undated subordinated debt rating have been maintained under
review for possible downgrade as the key rating driver in
Moody's view remains the bank's restructuring plan that is
currently waiting EU approval. The outlook on the bank's E
BFSR, mapping to a Caa1 on the long-term scale, is stable.
* INBS -- The Baa3/P-3 bank deposit and senior debt ratings and
the Ba1 dated subordinated debt rating have been maintained
under review with uncertain direction. This review is focusing
on the likely sale of the institution in the future, which could
result in both an upgrade or a downgrade depending on the
details of the transaction and the credit quality of any
potential purchaser.
* All rated government-backed long-term debt issues of these six
Irish institutions have been downgraded to Aa2 from Aa1, with a
stable outlook, in line with the Irish government's debt rating.
Short-term debt programs of EBS and IL&P, guaranteed by the
Irish government, will remain rated Prime-1, in line with the
government's short-term rating.
* The ratings of the other Irish banks are unaffected by this
rating action as they either include a relatively low level of,
or no, systemic support; the rating uplift primarily stems from
parental support. These banks include KBC Bank Ireland (Baa2
negative; D-/Ba3 negative), Bank of Scotland (Ireland) (Baa1,
negative; D-/Ba3 negative), Ulster Bank Ireland (A2, negative;
D-/Ba3 negative), Zurich Bank (A1, stable; D-/Ba3 negative) and
Hewlett Packard International Bank (A2, stable; C-/Baa1 stable).
None of these banks have participated in the Irish governments
guarantee schemes.
Downgrade of the Dated Subordinated Emtn Programme Rating
of Ebs Building Society
Due to an administrative oversight, EBS' dated subordinated EMTN
program rating was not downgraded on June 3, 2010, when the dated
subordinated debt of EBS was downgraded to Baa1 from A3. For
further information on this downgrade, please refer to Moody's
press release entitled "Moody's downgrades EBS Building Society's
subordinated debt and tier 1 securities" dated June 3, 2010.
Taking this into account together with the rating actions, Moody's
has now downgraded EBS' EMTN Programme to Baa2 from A3.
Previous Rating Actions
The last rating action on Allied Irish Banks was on March 31,
2010, when the outlook on the D BFSR was changed to positive, from
developing.
The last rating action on Anglo Irish Bank was on March 1, 2010,
when the dated subordinated debt rating was downgraded to Ba1 from
Baa1.
The last rating action on Bank of Ireland was on March 31, 2010,
when the D BFSR was placed on review for possible upgrade.
The last rating action on EBS Building Society was on June 3,
2010, when the dated subordinated debt rating was downgraded to
Baa1 from A3 and the non-cumulative Tier 1 instruments (issued
through EBS Capital No1 S.A.) were downgraded to Ca from Caa1.
The last rating action on Irish Life & Permanent was on
February 10, 2010, when the undated subordinated debt rating was
downgraded to Ba3 from Ba1.
The last rating action on Irish Nationwide Building Society was on
March 31, 2010, when the E+ BFSR was confirmed.
All of the institutions are headquartered in Dublin, Ireland.
PREMIER HOTELS: Faces Liquidation After Rent Talks Fail
-------------------------------------------------------
Barry O'Halloran at The Irish Times reports that Premier Hotels
Ltd., which manages the Days Hotel in Ballymun, Dublin, is facing
liquidation after failing to agree a deal on a six-figure rent
arrears bill with one of its landlords.
According to the report, the company has called a creditors'
meeting for early next month to appoint a liquidator.
The Dublin airport hotel's landlord, Pierse Santry Cross, part of
the Pierse construction group, appointed a new operator to the
hotel Wednesday, but would not reveal the company's identity.
The report relates Premier issued a statement saying that it has
been in talks with Pierse to secure a rent agreement that reflects
market conditions. "A satisfactory outcome was not reached and a
decision has been taken to cease our management of this property,"
the report quoted Premier as saying.
The report notes a spokesman for Pierse confirmed that the pair
had had talks, but added that there had been no meaningful
discussions about arrears owed by Premier to its landlord. "They
have decided to put the company into liquidation, we did not force
them," the spokesman said, according to the report.
Accounts for Premier show that at the end of 2007 shareholders'
funds were EUR1.4 million in the red, the report discloses.
Premier Hotels Ltd. is a subsidiary of Prem Group, which manages
hotels in Ireland, Britain, Belgium and France.
* IRELAND: High Court Company Winding-Up Orders Up 66% in 2009
--------------------------------------------------------------
Cara Coulter at The Irish Times reports that a dramatic rise in
cases involving debt, insolvency and the winding-up of companies
has been recorded in the annual report of the Courts Service.
According to The Irish Times, all three jurisdictions of the
courts saw increases in debt and insolvency cases in 2009, with
the High Court seeing a 53% rise in new cases admitted to the
Commercial Court list. There were 373 new cases, and 304 cases
disposed of in that court, The Irish Times discloses. The High
Court made 128 orders to wind up companies, a 66% increase on the
previous year, bankruptcies doubled to 17, and there were 293
orders for possession, a 23% increase on 2008, The Irish Times
notes.
Citing a spokesman for the Courts Service, The Irish Times says
this trend is continuing this year, as there have been 12
bankruptcies so far in 2010. The spokesman, as cited by The Irish
Times, said the orders for possession have slowed down since the
Government introduced measures to curb them. According to The
Irish Times, there have been 229 summonses issued in possession
cases this year, compared with 493 in the same period last year.
Debt recovery accounted for 5,653 claims in the High Court, a 53%
increase on last year; the Circuit Court saw 13,613 debt judgments
and the District Court saw 29,285, The Irish Times states. This
meant there was a 48% increase in debt cases in the High Court, a
33% increase in the Circuit Court and 28% in the District Court,
The Irish Times notes.
=========
I T A L Y
=========
FIAT SPA: Says Banks to Provide EUR4BB to Help Finance Spin-Off
---------------------------------------------------------------
Guy Dinmore and Giulia Segreti at The Financial Times report that
Fiat SpA said banks were ready to provide EUR4 billion (US$5.1
billion) in loans to help finance the demerger of its non-
automotive operations next January 1.
The FT relates that at a meeting in Chrysler's Michigan
headquarters rather than in Turin, the Fiat board approved plans
announced last April to split off its truck and construction
equipment divisions into a new listed company to be called Fiat
Industrial.
According to the FT, Fiat said it had received a "highly
confident" letter from eight banks for a new facility of up to
EUR4 billion to help finance the spin-off. Sergio Marchionne,
Fiat chief executive, believes the US carmaker he rescued from
bankruptcy is destined to play a dominant role, with the Italian
side losing weight in the group, the FT says, citing Gianluca
Spina, director of Politecnico di Milano School of Management,
which has ties with Fiat.
About Fiat SpA
Headquartered in Turin, Italy, Fiat SpA (BIT:F) --
http://www.fiatgroup.com/-- is principally engaged in the design,
manufacture and sale of automobiles, trucks, wheel loaders,
excavators, telehandlers, tractors and combine harvesters.
Through its subsidiaries, Fiat operates mainly in five business
areas: Automobiles, including sectors led by Maserati SpA, Ferrari
SpA and Fiat Group Automobiles SpA, which design, produce and sell
cars under the Fiat, Alfa Romeo, Lancia, Fiat Professional,
Abarth, Ferrari and Maserati brands; Agricultural and Construction
Equipment, which is led by Case New Holland Global NV; Trucks and
Commercial Vehicles, which is led by Iveco SpA; Components and
Production Systems, which includes the sectors led by Magneti
Marelli Holding SpA, Teksid SpA, Comau SpA and Fiat Powertrain
Technologies SpA, and Other Businesses, which includes the sectors
led by Fiat Services SpA, a publishing house Editrice La Stampa
SpA and an advertising agency Publikompass SpA. With operations
in over 190 countries, the Group has 203 plants, 118 research
centers, 633 companies and more than 198,000 employees.
* * *
As reported by the Troubled Company Reporter-Europe on April 27,
2010, Standard & Poor's Ratings Services said that it placed its
'BB+' long-term corporate credit rating on Italian industrial
group Fiat SpA on CreditWatch with negative implications. At the
same time, the 'B' short-term credit rating on Fiat was affirmed.
In addition, S&P placed the 'BB+' long-term rating on Fiat's
subsidiary CNH Global N.V. on CreditWatch with developing
implications. "The CreditWatch placement reflects S&P's view that
Fiat's credit quality could weaken due to increased business risk
as a consequence of the proposed demerger of CNH, Iveco SpA (not
rated), and the industrial and marine divisions of Fiat Powertrain
Technologies into the newly created entity Fiat Industrial SpA,"
said Standard & Poor's credit analyst Barbara Castellano.
FIAT SPA: Moody's Reviews 'Ba1' Senior Unsecured Ratings
--------------------------------------------------------
Moody's Investors Service has placed Fiat S.p.A.'s corporate
family rating, rating and all its instrument ratings under review
for possible downgrade following the approval of its spin-off
plans by the Board of Directors.
Falk Frey, Senior Vice President and lead analyst at Moody's for
Fiat, commented: "The rating action was solely triggered by the
approval of the demerger plan of Fiat's capital goods business and
its possible impact on the remaining Fiat operations focusing on
car business and related components businesses"
The review will focus on -- but not be limited to -- (i) the
allocation of debt that must be served by the "new" Fiat and by
Fiat Industrial (including CNH itself); (ii) the strategy of
intercompany funding of current debt as well as future
intercompany funding possibilities; (iii) the disposition of cash
deposits that are currently pooled at Fiat level; (iv) the common
usage of existing and future committed credit facilities as well
as (v) any possible changes in Fiat's financial strategy and
financial targets against the background of future growth and
consolidation opportunities.
In Moody's view though the separation of Automotive businesses
from Industrial may allow a better management focus on further
building two world -- Class competitors with different business
dynamics, the spin-off of Fiat Industrial will result in a
weakening of Fiat's business profile compared to the present
combined Fiat Group to the extent that it would reduce the scale
and the diversification of each of the separate entities. Moody's
also commented that the two new companies potentially emerging
from the process could have different business profiles with
separate industry dynamics.
On the other hand Moody's recognize that in 2009 the auto business
generated the majority of consolidated profits benefiting from
government incentives in key European markets that came to an end
largely and will result in a declining demand in Europe in the
current year. In addition, Fiat Group Automobiles (FGA) published
remarkable results for the second quarter and first half year
2010. Driven by an improved product mix, primarily related to
light commercial vehicles, purchasing savings and a favorable
impact from currency movements, FGA was able to improve trading
profit by EUR30 million to EUR185 million in Q2 2010 compared to
Q2 2009 despite a decline in deliveries of 6.2%. Moody's notes
that the rating action is not related to the Q2 results but solely
related to the spin-off plans.
Moody's aims to close the review process within 3 months provided
that details on the final capital structure and additional
information on the points of Moody's review focus listed above
have been made available.
On Review for Possible Downgrade:
Issuer: Fiat Finance & Trade Ltd.
-- Senior Unsecured Medium-Term Note Program, Placed on Review
for Possible Downgrade, currently Ba1, NP
-- Senior Unsecured Regular Bond/Debenture, Placed on Review for
Possible Downgrade, currently Ba1
Issuer: Fiat Finance Canada Ltd.
-- Senior Unsecured Medium-Term Note Program, Placed on Review
for Possible Downgrade, currently Ba1
Issuer: Fiat Finance North America Inc.
-- Senior Unsecured Medium-Term Note Program, Placed on Review
for Possible Downgrade, currently Ba1, NP
-- Senior Unsecured Regular Bond/Debenture, Placed on Review for
Possible Downgrade, currently Ba1
Issuer: Fiat S.p.A.
-- Corporate Family Rating, Placed on Review for Possible
Downgrade, currently Ba1
Outlook Actions:
Issuer: Fiat Finance & Trade Ltd.
-- Outlook, Changed To Rating Under Review From Negative
Issuer: Fiat Finance Canada Ltd.
-- Outlook, Changed To Rating Under Review From Negative
Issuer: Fiat Finance North America Inc.
-- Outlook, Changed To Rating Under Review From Negative
Issuer: Fiat S.p.A.
-- Outlook, Changed To Rating Under Review From Negative
Moody's last rating action on Fiat was the downgrade of Fiat's
corporate family rating to Ba1 with a negative outlook from Baa3
review for possible downgrade on February 23, 2009.
Headquartered in Turin, Fiat S.p.A. (rated Ba1/review for possible
downgrade) is one of Italy's leading industrial groups and, with
its Fiat Group Automobiles division, the fourth largest European-
based automobile manufacturer by unit sales. Through its
subsidiaries Iveco and Case New Holland (rated Ba3/stable
outlook), the company is also one of Europe's major manufacturers
of commercial vehicles and among the world's leading producers of
agricultural and construction equipment. Other major divisions
include Fiat Powertrain Technologies (engines and gear boxes),
Magneti Marelli (automotive components), Comau (production
systems) and Teksid (metallurgical products). In 2009, the
group's industrial operations generated revenues of EUR48.9
billion.
===================
K A Z A K H S T A N
===================
KAZINVESTBANK JSC: Moody's Puts B2 Local & Foreign Cur. Ratings
---------------------------------------------------------------
Moody's Investors Service has assigned these global-scale ratings
to Kazinvestbank: a B2 long-term and Not-Prime short-term local
and foreign-currency deposit ratings, and an E+ bank financial
strength rating. The outlook is stable on all of the bank's
ratings.
According to Moody's, Kazinvestbank's E+ BFSR, which translates
into a Baseline Credit Assessment of B2, is underpinned by: (i)
the bank's acceptable corporate governance and risk management
systems; and (ii) reasonable capitalization that should be
sufficient to absorb loan losses within Moody's base case scenario
for stress testing.
However, Moody's notes that Kazinvestbank's ratings are
constrained by (i) a high borrower concentration in the loan book
and the customer deposit base as the top 20 loan exposures exceed
300% of the bank's shareholders' equity and the top 20 largest
depositors contribute around 70% of its total customer funding;
(ii) small size and underdeveloped franchise; and (iii) weak asset
quality and profitability.
The rating agency observes that Kazinvestbank's ratings might be
adversely affected by an impairment of its loan book beyond the
level currently indicated by Moody's base-case stress-testing
results, or if relationships with its major clients weakened.
This could lead to a notable outflow of the bank's deposit base,
which is currently characterized by high single-name
concentration.
However, a significant strengthening of the bank's franchise and a
reduction in its borrower and funding concentrations, coupled with
acceptable liquidity levels and capitalization, may have medium-
term positive rating implications.
Moody's notes that the assigned local and foreign currency deposit
ratings do not factor in any probability of systemic support in
the event of a stress situation, given the bank's immaterial
market shares and relatively low importance to the country's
banking system.
Moody's previously rated Kazinvestbank but the ratings were
withdrawn on March 30, 2009, for business reasons, following an
official request from the bank. At the time of the withdrawal,
the bank had a BFSR of E+ and B2/Not Prime long-term and short-
term local and foreign currency deposit ratings. The long-term
local and foreign currency deposit ratings had been on review for
possible downgrade since December 2008 but the agency was not able
to conclude the review due to lack of information.
Kazinvestbank's credit profile has stabilized since then as
pressures on liquidity and asset quality have eased.
Headquartered in Almaty, Kazakhstan, Kazinvestbank reported total
audited IFRS consolidated assets and net income of US$601 million
and US$0.7 million, respectively, at year-end 2009 (US$567 million
and US$2.1 million, respectively, a year before).
===================
L U X E M B O U R G
===================
CRC BREEZE: Fitch Downgrades Ratings on Class A Notes to 'BB-'
--------------------------------------------------------------
Fitch Ratings has downgraded CRC Breeze Finance S.A.'s
EUR258.4 million class A notes (XS0253493349) to 'BB-' from 'BB'
and assigned a Negative Outlook. Fitch has also downgraded the
EUR36 million class B notes (XS0253496441) to 'B-' from 'B', and
assigned a Stable Outlook.
The downgrades result from a combination of lower-than-expected
energy yield, higher-than- anticipated operating costs, technical
difficulties with some turbines and weaknesses in the
transaction's financial structure.
A significant overestimation in the pre-closing forecasts of the
achievable energy yield and a period of weak wind conditions is
the primary reason why at the November 2009 payment date Breeze 2
drew approximately EUR2 million (out of EUR12.2 million) from the
class A debt service reserve account to meet the scheduled senior
principal repayment, used the entire EUR1.1 million class B DSRA
to pay the class B interest and deferred the scheduled
EUR2.4 million class B principal repayment. At the May 2010
payment date operating revenues were sufficient to fully meet the
debt service payments on class A and B bonds with a buffer of some
EUR2 million. This excess cash was reserved by Breeze 2 to meet
foreseeable O&M costs, leaving the deferred class B principal
outstanding and the two DSRAs un-replenished.
Additional negative effects on Breeze 2's financial performance
derive from the original underestimation of O&M costs. Management
has advised that an extra EUR1 million should be added to the
budget each year to reflect unbudgeted expenses. Fitch's
projections reflect such higher costs since last year's review and
incorporate a further EUR0.5 million buffer going forward.
The portfolio's 96% availability during 2009 was slightly below
expectations, primarily due to continuing gearboxes issues on
Fuhrlander turbines and the shut-down of a wind farm during the
first five months of 2009 due to a problem with the installed
Nordex blades. The present technical challenges experienced by
the wind farm portfolio are considered manageable and of limited
magnitude by Fitch. This is, however, subject to the threat posed
by the enduring issues with around 60 Vestas turbines'
foundations. Breeze 2 reports that only one project (Bedburg - 12
Vestas V90 turbines) is currently experiencing significant cracks
in the foundations' concrete, with one turbine likely to need
stabilization works in the short term at an estimated cost of some
EUR30,000.
Fitch considers likely further class B debt service deferrals at
November 2010 as well as in other future November payment dates.
This is caused by the thin class B coverage (average debt service
coverage ratio under the Fitch base case of 1.06x) coupled with a
flat debt repayment profile which does not take into consideration
the lower energy production achievable during the summer months.
The rating on the class B notes reflects the bond's terms and
conditions, in that any missed payment of interest and principal
is deferred to the following payment date (or after the full
repayment of class A bonds) -- i.e. a monetary default does not
translate into a contractual default. In Fitch's opinion it is
unlikely that Breeze 2 will meet all the scheduled debt service
payments on the class B notes in a timely manner and fully redeem
such bonds on their expected final repayment date of May 2016.
The following 10 years up to the class A maturity date, however,
provide comfort about the borrower's ability to ultimately repay
class B. The Stable Outlook on the class B notes reflects the
significant flexibility afforded to these notes by their
deferability.
Class A DSCR is expected to average approximately 1.35x under
Fitch's base case operating conditions, reaching the minimum of
around 1.05x under P90 energy production scenarios. The downgrade
on the class A notes reflects Fitch's view that the senior (as
well as the class B's) DSRA will remain below its required amount
in the medium term and the transaction would need a few
consecutive years of average performance to refill reserves and
repay Class B deferred interest and principal. The Negative
Outlook on class A is further supported by the continuing
uncertainty regarding the potential impact of the issues with the
Vestas turbines' foundations and the possible solution thereof.
=====================
N E T H E R L A N D S
=====================
NXP BV: S&P Affirms 'CCC+' Long-Term Corporate Credit Rating
------------------------------------------------------------
Standard & Poor's Ratings Services said it affirmed its 'CCC+'
long-term corporate credit and senior secured debt ratings on
Dutch semiconductor manufacturer NXP B.V. The outlook is
positive.
S&P's '4' recovery rating on NXP's upsized senior secured notes is
unchanged, indicating S&P's expectation of average (30%-50%)
recovery for creditors in the event of a payment default.
At the same time, S&P removed the senior secured debt ratings from
CreditWatch with negative implications, where they had been placed
on July 13, 2010.
S&P also affirmed:
* Its 'B' issue rating on the first-priority senior revolving
credit facility and first-priority notes. The '1' recovery
rating on these instruments is unchanged, indicating S&P's
expectation of very high (90%-100%) recovery in the event of a
payment default.
* Its 'CCC' rating on the unsecured notes. The '5' recovery
rating on these notes is unchanged, indicating S&P's expectation
of modest (10%-30%) recovery in the event of a payment default.
The affirmation follows NXP's issue of US$1.0 billion senior
secured notes due 2018 and its announcement that it used the net
proceeds to retire existing senior secured notes due in 2013 and
2014. It has proposed the new 2018 notes at US$600 million last
week.
"The main driver behind S&P's affirmation and unchanged recovery
rating on senior secured debt is the company's confirmation on its
use of proceeds to retire pari passu debt," said Standard & Poor's
credit analyst Patrice Cochelin.
The ratings on NXP continue to reflect its very high debt leverage
and large debt maturities in 2013 and 2014, which are only partly
offset by the company's positions in high-performance and mixed
signal semiconductors and an improving cost position. On
March 31, 2010, NXP reported gross consolidated debt of US$5.2
billion.
"S&P's positive outlook indicates the potential for an upgrade to
'B-' if NXP successfully reduces debt, coupled with extending
maturities coming due by 2013, and continues to improve operating
and cash flow performance," said Mr. Cochelin. "S&P consider
NXP's possible clearing of drawing conditions on the forward-start
facility to be an important step toward a 'B-' rating."
The ratings could come under negative pressure if NXP fails to
significantly cut its cash losses in line with S&P's expectations,
if S&P perceives an increased risk of a distressed exchange offer,
or if the company fails to timely address its debt maturity
profile.
===========
R U S S I A
===========
ACRON JSC: Moody's Assigns 'B1' Corporate Family Rating
-------------------------------------------------------
Moody's Investors Service has assigned a B1 corporate family
rating to JSC ACRON, one of the leading producers of nitrogen
fertilizers with global NPK capacity of 2.2 million tonnes. The
outlook is stable.
Based in Russia, JSC ACRON is the operating and holding company of
a group of chemical companies engaged in the manufacture and sale
of mineral fertilizers. In 2009, Acron reported revenues of RUB
37.5 billion.
Since its privatization in 1992-1993, Acron has focused on
strengthening its operating base through several bolt-on
acquisitions, including the purchases of controlling stakes in JSC
Dorogobuzh and Hongri Acron, a leading NPK producer in China, as
well as the more recent acquisitions of port and transhipment
assets in Russia and the acquisition of licenses for development
of mineral fertilizer deposits in Russia and Canada in 2008.
Acron also supports its growth by the expansion and modernization
of the existing production capacities, the development of
proprietary logistics, sales and marketing operations in Russia,
and finally through the on-going development of several deposits
for mineral fertilizers in Russia.
The company pursues a strategy focused on profitable growth.
Acron enjoys strong positions in the large and fast growing
domestic and Chinese markets, that are open to only limited import
pressures at present. To fully capitalize on the market
opportunities, Acron is focused on maximizing its competitive
advantage offered by proximity to areas with abundant natural gas
resources, competitive scale through well-maintained facilities
and the on-going development of own mineral base that should
support the company's market positions in the medium term.
As a majority privately-held group with robust revenue model,
Acron is funding the on-going expansion through reinvestment of
its operating cash flow as well as through borrowings. During the
build-out period to 2012, Acron will be relying on funding made
available under several facilities by leading local banks.
Moody's note that the company maintains a considerable degree of
flexibility in managing the development and investment planned
until 2012. The company has also broadened its access to capital
by obtaining a listing for the holding company on MICEX and RTS in
2007 and on the LSE in 2008 and a domestic listing for one of its
key Russian subsidiaries, JSC Dorogobuzh.
The B1 corporate family rating and Moody's guidance for the rating
positioning, therefore, reflect the expectation that the company
will continue to execute its investment plan, while maintaining an
elevated level of debt and strong liquidity position during the
investment period to 2012. The rating also anticipates a
considerable improvement in the financial profile of the group
from 2012, following the conclusion of the first phase of the
investment program and associated improvement in the profitability
and cash flow generation.
The B1 corporate family rating also reflects: (a) Acron's
competitive global cost position, supported by lower raw material
costs in Russia, good scale of the key production facilities and a
low fixed costs component, typical for nitrogen fertilizer
producers; (b) Acron's broad range of product, with focus and
market leadership in more-value-added complex nitrogen
fertilizers; (c) the limited degree of competition in its key
markets, with high barriers to entry to the Russian market
(dominated by domestic low-cost producers) and Chinese market
(open to domestic producers only), supported by its established
own distribution and marketing network in Russia and China; (d)
the expectation that the current investment will significantly
boost profitability and improve the quality of revenues (through
vertical integration) from 2012; (e) the company's conservative
management and prudent financial policy, as well as a considerable
flexibility in managing the CAPEX program; and finally (f) Moody's
positive view on long term fundamentals in agri-chemicals.
Moody's assessment of the risks also reflects (a) the modest size
and limited diversification of the group, when compared to the
global peer group, nevertheless sufficient for realizing economies
of scale and effective regional competition; (b) the on-going
expansion in capacity and development of the own mineral base and
the associated investment commitments suggesting negative FCF
until 2012; (c) seasonality and cyclicality of the fertilizer
business, typical for the global peer group; (d) risks associated
with the concentrated ownership structure, mitigated by the
presence of the independent directors and compliance with the LSE
listing rules; and (e) potential for government regulation
(through price caps or export quotas), typical for this segment.
The stable outlook on the rating reflects Moody's positive view of
the current dynamics on the Russian and Chinese markets that
should continue to support steady improvement in Acron's operating
performance over the next 12-18 months. The stable outlook also
reflects the expectation of strong execution of the investment
plan and proactive liquidity and refinancing management during the
build-out phase.
These ratings are assigned for the first time as part of this
rating action:
JSC Acron
-- Corporate Family Rating: B1
-- Probability of Default Rating: B1
Based in Russia, JSC ACRON is the operating and holding company of
a group of chemical companies engaged in the manufacture and sale
of mineral fertilizers. In 2009, Acron reported revenues of RUB
37.5 billion.
NATIONAL BANK: Fitch Affirms 'CCC' Issuer Default Rating
--------------------------------------------------------
Fitch Ratings has affirmed and withdrawn Russia-based National
Bank TRUST's ratings, including its Long-term Issuer Default
Rating of 'CCC'.
The agency will no longer provide ratings or analytical coverage
of NBT.
These ratings have been affirmed and withdrawn:
-- Long-term IDR: affirmed at 'CCC'; withdrawn
-- Short-term IDR: affirmed at 'C'; withdrawn
-- Individual Rating: affirmed at 'E'; withdrawn
-- Support Rating: affirmed at '5', withdrawn
-- Support Rating Floor: affirmed at 'No Floor'; withdrawn
RUSIA PETROLEUM: Irkutsk Court to Consider TNK-BP Claim
-------------------------------------------------------
RIA Novosti reports that the Irkutsk Region Arbitration Tribunal
will consider on August 16 a RUR11.855 billion (US$382 million)
claim by BP's joint Russian venture TNK-BP against RUSIA Petroleum
in the register of creditors' claims.
The report recalls the court imposed on June 21 temporary
administration procedures at RUSIA Petroleum. Rizben Enterprises
Limited, a Cyprus-based subsidiary of TNK-BP, subsequently filed a
claim against the gas field operator, the report discloses. RUSIA
Petroleum filed for bankruptcy in early June after Rizben demanded
the early repayment of RUR12-billion loan, the report recounts.
Under Russian legislation, after temporary administration
procedures are introduced for a defaulting borrower, creditors
have one month to file their claims after a notice of the
imposition of temporary administration is published, the report
discloses.
RUSIA Petroleum is a wholly-owned unit of TNK-BP that holds the
license to develop the huge Kovykta gas condensate field in
Eastern Siberia.
OAS SBERBANK: Moody's Gives Stable Outlook on 'D+' Bank Rating
--------------------------------------------------------------
Moody's Investors Service has changed to stable from negative the
outlook on Sberbank's D+ financial strength rating. At the same
time, the bank's A3/Baa1 long-term local and foreign currency
deposit and A3/Baa1 senior/subordinated debt ratings were
affirmed. The outlook on the deposit and debt ratings is stable.
The bank's P-2 short-term local and foreign currency deposit
rating was also affirmed. Concurrently, Moody's Interfax Rating
Agency affirmed Sberbank's Aaa.ru national scale rating; national
scale ratings carry no specific outlook.
"The rating action reflects the gradual stabilization of
Sberbank's financial fundamentals. The operating environment in
Russia is showing signs of improvement after a turbulent 2009,
with the economy growing 2.9% in Q1 2010," said Eugene Tarzimanov,
a Moody's Vice-President -- Senior Analyst and lead analyst for
the bank. Retail deposits -- Sberbank's core funding base -- have
grown by 22% at that bank in 2009 (Q1 2010: 11% growth,
annualized), a good level considering the level of stress in the
banking system seen last year. Sberbank's liquidity is adequate,
with cash, cash equivalents and relatively liquid securities
accounting for 29% of total assets at Q1 2010. Near-term
refinancing risk is low, as Sberbank is not a large wholesale
borrower.
Although problem loans are likely to grow somewhat before peaking
at YE2010, Moody's believe that most large problem exposures are
already identified by the bank. "Although problem loans 90+
overdue stood at 8.9% at Q1 2010, and around 12% of loans were
restructured, the level of loan loss provisions (11.7% of gross
loans), total capitalization ratio (18.9%), and recurrent earnings
all provide an adequate buffer for credit losses that are likely
to materialize under Moody's base case stress-test," adds Mr
Tarzimanov. So far, Sberbank has shown an adequate track record
in managing its problem exposures: some very large problem loans
were already repaid to the bank.
Sberbank's debt/deposit ratings continue to enjoy unconditional
support from the Russian government. This is due to the bank's
systemic importance and a huge market share in retail deposits
(around 50% in Russia), supported by a high brand awareness and a
very large distribution network. At the same time, negative BFSR
drivers include Sberbank's high appetite for large single-party
exposures, and corporate governance issues due to ownership by the
Central Bank of Russia and state control over the bank.
Moody's previous rating action on Sberbank was on 24 February
2009, when Moody's changed the outlook on the D+ BFSR to negative
from stable, on expectations that the global economic crisis would
have an increasingly negative impact on the Russian economy and
Sberbank's intrinsic strength.
Headquartered in Moscow, Russian Federation, Sberbank reported --
as at 31 March 2010 -- total assets of RUB7.3 trillion, total
equity of RUB851 billion and net IFRS profit of RUB44 billion
(unaudited).
ZLATOUST METALLURGICAL: Has Debt Restructuring Deal With Banks
--------------------------------------------------------------
Ilya Khrennikov at Bloomberg News reports that OAO Zlatoust
Metallurgical Works, which filed for bankruptcy protection in
June, reached a settlement with banks including OAO Sberbank and
Alfa Bank to restructure its RUR11.9 billion (US$391 million) of
debt.
According to Bloomberg, the company said in an e-mailed statement
on Wednesday that the debt will be extended for 10 years and
repayments delayed for three years.
Chelyabinsk region-based OAO Zlatoust Metallurgical Works produces
steel for the machinery and arms industries. It is owned by OOO
Estar Holding.
===========================
U N I T E D K I N G D O M
===========================
ASHFORD TOWN: Administration Hearing Scheduled for July 29
----------------------------------------------------------
Alex Hoad at Kentish Express reports that Ashford Town's immediate
future will be decided at the Royal Courts of Justice in London at
10:30 a.m. on July 29.
Kentish Express relates Ashford Town Chairman Don Crosbie has
applied for the club to be placed into administration and papers
were served on co-director Tony Betteridge on Wednesday afternoon
to inform him of the High Court date.
According to Kentish Express, Mr. Betteridge claims he will fight
the application "tooth and nail" and says his current winding up
petition is the right way to deal with the club's financial
problems, which has seen the club build up debts of around GBP1
million.
Kentish Express notes Mr. Betteridge says he is not expecting to
get back the GBP600,000 he claims to have invested in the club,
whether or not he is successful in having the club wound up, but
claimed: "putting the club into administration is like a 'get out
of jail free card'". Kentish Express recounts he claimed an
administrator would discover the club had no money to pay
creditors -- including Mr. Betteridge and HMRC's GBP150,000 -- and
"would end up selling the club for one-and-six so which creditors
are left to fight over while someone else is able to come in and
run the club without any debts."
As reported by the Troubled Company Reporter-Europe on July 22,
2010, Kentish Express said Mr. Crosbie decided to put the club
into the hands of administrators to allow the club to continue to
play football. "After weeks of meeting with the club's solicitors
and advisors it is with regret that, to save our football club
from extinction, we have asked the court to appoint an independent
administrator to hopefully resolve the deadlock and allow the club
to continue to play football," Kentish Express quoted Mr. Crosbie
as saying in a statement to supporters. "We have been advised,
because of the seriousness of the situation, that relegation would
probably have been the penalty for our demise so, rather than
suffer mid-season, we have been advised to resign from the Ryman
League with immediate effect and apply for Kent League
registration." Kentish Express disclosed Ashford is currently
suspended from all football by the FA for non-payment of fees to
Ebbsfleet last season, while the Ryman League also revealed the
club owes it money. Mr. Crosbie also revealed that legal
proceedings had been launched in a dispute over the ownership of
the freehold to the club's Homelands ground, according to Kentish
Express. Kentish Express said Ashford need to move swiftly to
appoint an administrator as they need to have had the suspension
lifted by July 30 in order for an EGM of Kent League clubs to be
called to vote Town into the League before the opening games on
Saturday, August 7.
Ashford Town F.C. is an English football club based in Ashford,
Kent.
CALLBRIDGE HOTELS: In Administration; Deloitte Seeks Buyer
----------------------------------------------------------
Neil Gerrard at caterersearch.com reports that Callbridge Hotels,
the company that bought nine properties from Folio Hotels in
January 2009, has gone into administration.
The report relates Lee Manning and Richard Hawes of Deloitte were
drafted in to look after Callbridge Hotels earlier this month
after the firm sank under the weight of high property lease costs.
Callbridge now owns just two of the original nine hotels it bought
from Folio: the Redwood hotel and country club near Bristol and
the Westfield hotel in Blaby, Leicestershire, the report notes.
According to the report, both properties will continue to trade
under the administrators, although it is understood that they will
no longer be managed by Bespoke Hotels, which was running them as
part of a package of 13 ex-Folio hotels which were split between
three different owners.
"The hotels continue to trade as normal while we seek interested
parties to acquire the business as a going concern. The business
faced high property lease costs inherited from the peak of the
property market, which, coupled with the difficult economic
climate and reduction in discretionary spending, has resulted in
poor trading and, ultimately, the company's insolvency," the
report quoted Mr. Manning as saying.
Callbridge Hotels is based in London.
FERREXPO PLC: Fitch Assigns 'B' Issuer Default Rating
-----------------------------------------------------
Fitch Ratings has assigned UK-incorporated Ukrainian iron ore
pellets producer Ferrexpo Plc a Long-term Foreign Currency Issuer
Default Rating of 'B' and a Short-term IDR of 'B'. The Outlook is
Stable. The Long-term IDR is not constrained by Ukraine's
Sovereign rating ('B'/Stable).
The ratings of Ferrexpo reflect its significant iron ore reserves
and mine development plans which are forecast to result in a more
than 50% increase in production volumes over the next five years.
From a cost perspective Ferrexpo's production and distribution
cash costs are in line with the global average for iron ore
pellets of around US$50/tonne in FY09. The ratings also
incorporate the expectation that the company will maintain a
moderately leveraged financial profile over the next three to four
years, despite its large investment program and the inherent
cyclicality of the mining industry.
Rating constraints include its limited scale of operations (single
mine) and commodity diversification. As over half of sales are to
three customers, Ferrexpo faces the risk of being materially
affected by deterioration in the performance of these customers.
Ferrexpo does however have a number of other high end customers in
the Far East and during the recent downturn demonstrated its
ability to redistribute sales to countries where demand for
pellets was growing.
Fitch notes Ferrexpo's compliance with the UK Combined Code on
Corporate Governance. In 2008 a substantial portion of the
company's cash balances were invested in a related-party financial
institution. Now however the company's treasury policy restricts
the majority of cash deposits to 'A' and above-rated countries and
banks. While some exceptions to this policy enable a portion of
free cash (defined as cash less expected capital commitments) to
be held with Ukrainian banks, historically this amount has been
limited to around one-to two months of operating expenses
(generally less than US$45 million).
Ferrexpo plc is the holding company for a larger group including
wholly owned Swiss headquartered Ferrexpo AG and 97% owned
Ferrexpo Poltava Mining (Ukrainian registered) which holds the
group's sole production asset. The group also incorporates a UK
finance and administration company, Ferrexpo Finance plc, through
which it sources the majority of its borrowings to fund its
operating activities and growth projects. The assigned rating
assumes that Ferrexpo will continue to maintain the majority of
its debt at the level of Ferrexpo Finance plc and Ferrexpo plc and
will not maintain a significant amount of debt at Ferrexpo Poltava
Mining in order to avoid structural subordination issues within
the group.
In FY09 Ferrexpo reported consolidated revenue of US$649 million
and an EBITDAR margin of 20% (FY08: 44%). Fitch expects 2010
revenues to increase 45%-50% year-on-year due to higher iron ore
volumes and pricing. Fitch anticipates an EBITDAR margin in the
range of 40%-50%. As of Q110, Ferrexpo had total debt of US$310
million, including US$95 million of short-term debt. The agency
estimates gross debt/EBITDAR in 2010 at between 1.1x-1.3x, and
gross interest coverage (EBITDAR/gross interest expense) of 12x-
15x.
GOLDTRAIL TRAVEL: Owner May Have "Escaped" to Turkey
----------------------------------------------------
Hurriyet Daily News reports that Goldtrail's Turkish owner,
Abdulkadir Aydin, has likely fled to his home country. Citing
tourism-sector sources in England and Turkey, the report says
Mr. Aydin, who could not be contacted this past week, probably
"escaped" to Turkey.
Celal Candansaray, a former partner of Mr. Aydin's, told Hurriyet
he had sued the Goldtrail owner for a debt of GBP727,000 in a
Turkish court. Tourism-sector sources in London told Hurriyet
that Mr. Aydin used to provide cheap accommodation but had accrued
big debts to hotels.
The report relates Britain's Civil Aviation Authority said
Saturday that Goldtrail flights from Britain had been suspended
and that it was making alternative arrangements for travelers
already on vacation, including those holidaying in a variety of
popular tourism destinations in Turkey.
As reported by the Troubled Company Reporter-Europe on July 20,
2010, Mark Fry and Jamie Taylor of Begbies Traynor were appointed
administrators of Goldtrail Travel Limited, the specialist Greek
and Turkey budget holiday operator, based in New Malden, Surrey,
on July 16, 2010. The company has ceased trading with immediate
effect.
HALLIWELLS: HBJ Gateley Wareing Acquires Manchester Office
----------------------------------------------------------
Peter Ranscombe at The Scotsman reports that HBJ Gateley Wareing
has acquired the Manchester office of Halliwells, which fell into
administration on Tuesday night.
The report says following the takeover, HBJ, which was created in
2006 through the merger of Scottish firm Henderson Boyd Jackson
and Birmingham-based Gateley Wareing, will have 750 staff.
"We have recognized for some time that there was an opportunity to
develop our business in the north-west (of England] and to
strengthening links between Scotland and the north-west, which
will be delivered through the new Manchester office," the report
quoted senior partner Malcolm McPherson as saying. "The
Halliwells team bring with them a significant client base and a
long and distinguished history in the Manchester legal market,
which will complement perfectly our existing national practice."
The report recalls accountancy firm BDO was appointed as
administrator of Halliwells, with about 35 support staff posts
being made redundant. According to the report, law firm Hill
Dickinson said it was hiring 125 former Halliwells staff in
Liverpool and Sheffield, while Barlow Lyde & Gilbert is taking on
17 former partners from its insurance arm.
As reported by the Troubled Company Reporter-Europe on July 1,
2010, The Lawyer said Halliwells filed a notice of its intention
to appoint an administrator, claiming that high property costs
exacerbated by the current economic climate adversely
impacted its finances.
Halliwells is a law firm based in Manchester.
MORPHEUS PLC: S&P Cuts Rating on Class E Subordinate Loan to 'B'
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit rating on
Morpheus (European Loan Conduit No. 19) PLC's class E subordinate
loan and affirmed its ratings on the class A, B, and C notes and
the class D subordinate loan. At the same time, S&P removed the
class C notes and the class D and E subordinate loans from
CreditWatch negative.
The notes and subordinate loan balance has reduced to
GBP83.6 million in May 2010, from GBP581.9 million at issuance in
2004. There is GBP2.2 million in overcollateralization, as the
loan pool balance is GBP85.8 million as of May 2010. Morgan
Stanley Mortgage Servicing Ltd. (ranked ABOVE AVERAGE with a
stable outlook) acts as servicer for all of the loans.
As of the May 4 interest payment date, the loan pool included 115
loans secured on 264 properties located across the U.K. Among the
top 46 loans, which comprise 86% of the loan pool balance, the
highest concentration by valuation is in London (55%), the
southeast (14%), and the northwest (7%). By valuation,
approximately 32% of the properties are office, 26% are retail,
16% are residential, and 16% are industrial. Loan concentration
has increased since closing: The 10 largest represent 48% of the
total loan pool balance, up from 31% at issuance.
As of the July 2010 special servicing report, three loans
(totaling GBP1.80 million, 2.1% of the loan pool balance) were
with the special servicer (excluding one loan that repaid on
July 2, 2010). For two of the three loans, the borrowers were
unable to repay the loan on the maturity date. The third loan was
transferred to the special servicer due to failure to meet debt
service payment as a result of the head tenant entering into
administration. A receiver is in place and S&P understands that
the property is being actively marketed.
On the June 2010 watchlist, excluding loans that have been
transferred to special servicing or have been restructured, there
were five loans (totaling GBP1.53 million, 1.8% of the loan
balance). For three of these five loans, the watchlist placements
relate to loan maturity. One loan has a vacant property and
another has a lease with a major tenant that has expired, but the
tenant is negotiating a renewal. For both loans, the borrowers
are continuing to service the debt. One loan, which was
restructured by way of partial repayment and an extension of the
maturity date, is on the watchlist but is expected to be removed
in August 2010.
The rating actions follow a review based on the May 4 interest
payment date report, and they reflect S&P's view of the
creditworthiness of the underlying loan portfolio. This is mainly
due to these factors:
The property portfolio is mainly located in secondary and tertiary
locations, which in S&P's view have been affected by the
continuing weak economic environment in the U.K. This has
affected market values and thus the potential for principal
losses. However, of the top 46 loans, approximately 60% of the
loans (by loan balance) benefit from amortization.
The loans in the portfolio are well seasoned. Of the top 46
loans, all were originated between 1989 and 2004. In S&P's view,
performance has been good to date, with no principal losses
realized so far. However, there is refinance risk, as
approximately 30% (by loan balance) of the top 46 loans mature in
2014.
The pool exhibits good diversity. Of the top 46 loans, no one
tenant accounts for more than 10% of the rental income.
S&P has affirmed the ratings on the class A to C notes and the
class D subordinate loan. These classes have benefited from loan
pool amortization, which is mainly applied on a modified pro rata
basis. Consequently, the credit enhancement for these classes has
improved since closing.
S&P has lowered the rating on the class E subordinate loan. In
S&P's view, the continuing weak economic environment in the U.K.,
especially in secondary and tertiary locations, is in S&P's
opinion likely to increase the risk of principal losses to this
class.
Ratings List
Morpheus (European Loan Conduit No. 19) PLC
GBP536.79 Million Mortgage-Backed Floating-Rate Notes
and GBP45.09 Million Subordinated Loans
Rating Lowered and Removed From CreditWatch Negative
Rating
------
Class To From
----- -- ----
E Loan B BB/Watch Neg
Ratings Affirmed and Removed From CreditWatch Negative
Rating
------
Class To From
----- -- ----
C A A/Watch Neg
D Loan BBB BBB/Watch Neg
Ratings Affirmed
Class Rating
----- ------
A AAA
B AA
QUINN INSURANCE: 75 Jobs in Enniskillen Retained
------------------------------------------------
BBC News reports that Quinn Insurance's administrator has
confirmed the 75 planned redundancies in Enniskillen will no
longer be implemented.
According to the report, the decision does not affect the
voluntary-led redundancies planned in other functional areas of
Quinn Insurance.
"Since the ban on trading in the UK private motor insurance
business was lifted in April, staff at Quinn Enniskillen have
worked hard to maintain and grow levels of business," the report
quoted Enterprise Minister Arlene Foster as saying. "As a result,
the administrator has taken the decision not to seek any
redundancies in the private lines business in Enniskillen, a
decision which I am sure will be met with relief by the 75
employees affected."
The report relates that in a statement, the company said the jobs
had been retained as a "result of strong customer retention, the
acquisition of new business above previous projections, and an
increase in natural attrition in the private lines division."
The report recalls more than 900 workers applied for voluntary
redundancy after the company was put into administration by the
High Court in Dublin in March. The company is shedding 900 staff
at locations on both sides of the border including Navan, Cavan
and Dublin, the report discloses. The job cuts will be carried
out over a 15-month period up until the middle of 2011, the report
notes.
Quinn Insurance is owned by Sean Quinn, Ireland's richest man, and
his family. The company has just more than 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.
UNIQ PLC: Pension Framework Fails to Meet Clearance Criteria
------------------------------------------------------------
Norma Cohen at The Financial Times reports that Uniq plc said its
plan to close the shortfall in its pension scheme, which dwarfs
its market capitalization, fell short of requirements of the
Pensions Regulator.
The FT relates that on Monday, July 19, the company's shares fell
by 29% to GBP11, giving it a market capitalization of GBP17.8
million against a shortfall in its defined benefit pension scheme
of GBP436 million at March 2009.
"The Pensions Regulator has stated that the pension framework, as
currently constituted, does not meet all of its criteria for
clearance. The company and the trustee continue to work together
to seek a resolution for the pension scheme and the company
anticipates it will take some time to resolve," the FT quoted
Geoff Eaton, Uniq's chief executive, as saying.
According to the FT, Uniq's pension trustee has the unusual power
to wind up the scheme to protect members' benefits, a move that
could push the company into insolvency.
Mr. Eaton sought to reinforce the message that negotiations were
continuing and that there was no danger of the company being
liquidated to pay its pension debts, the FT notes. The FT says
one option would be to raise cash from shareholders that would
deliver more benefits than those insured under the Pension
Protection Fund's safety net but less than those promised to
members.
"We would go out into the market to secure the best of the
benefits we could," Mr. Eaton said according to the FT. "There is
not enough value in the business by any measure to pay off the
pension debt."
The FT recalls Uniq announced in April that it had agreed a deal
with the trustee of its pension scheme to meet the shortfall
through a repayment plan that would take 50 years to fulfill, bar
any contributions to the scheme until 2013, and would place the
scheme in an entity that has no business activities of its own.
The company would also need to seek clearance from the Pensions
Regulator to ensure that if it later became insolvent and unable
to meet pension promises, then the directors would not be held
personally liable for shortfalls, the FT states.
Uniq plc -- http://www.uniq.com/-- is a United Kingdom chilled
food producer. The Company operates in two divisions: Food to Go
and Desserts. Food to Go operations are located at Northampton
(sandwiches) and Spalding (dressed salads). Desserts segment
operates from Minsterley and Evercreech, producing trifles,
twinpot desserts, yoghurts and cottage cheese. During the year
ended December 31, 2009, the Company disposed of all its European
operations in Northern Europe (Germany, the Netherlands and
Poland) and in France. On March 13, 2009, the Company sold its
United Kingdom chilled fish business, Pinneys of Scotland. On
October 7, 2009, the Company completed the sale of its French
chilled and frozen convenience food business, Marie SAS. In April
2010, the Company completed the sale of Uniq Deutschland GmbH and
Uniq Lisner Sp. Z.o.o., the German and Polish businesses, to IFR
Capital plc. Its subsidiaries include Uniq (Holdings) Limited and
Uniq Prepared Foods Limited.
WHINSTONE CAPITAL: Fitch Cuts Ratings on Class C Notes to 'B-'
--------------------------------------------------------------
Fitch Ratings has downgraded Whinstone Capital Management
Limited's class C and class D notes.
Whinstone is a synthetic transaction which references the reserve
fund acting as credit enhancement for the five outstanding
capitalist issuances from the Granite Finance Funding Limited
platform of the Granite master trust program which is backed by
residential mortgage loans originated by Northern Rock (Asset
Management) plc.
Fitch has reviewed the ratings of all the outstanding notes issued
though Whinstone, analyzing the program according to the full
range of factors considered by Fitch as part of the ratings
process.
The downgrades reflects Fitch's expectations of a slower increase
in credit enhancement due to the marked reduction in Granite's
excess spread, and the continued deterioration in the underlying
collateral performance of Granite.
The first layer of protection for the Whinstone notes is a
threshold amount equal to the Funding reserve fund, which is
defined as 1% of the aggregate outstanding balance of the notes of
all the Funding issuers, in addition to the stepped up reserve
fund amounts providing credit enhancement to GRAN 04-2 and GRAN
04-3 to the extent that the required increase is met by the
trapping of excess spread; and GBP22 million. The latter is the
stepped-up Funding reserve fund amount required in January 2009 as
a result of the Granite Mortgages 03-3 notes failing to be
redeemed on their step-up date.
Notwithstanding, the Funding reserve is less than its required
amount and has been drawn upon on each interest payment date since
June 2009 to make payments of interest on the notes issued by the
Funding beneficiary of Granite. Fitch anticipate further Funding
reserve fund draws, which, all other things remaining equal, will
become more sizeable as the Class A notes issued by Funding redeem
and the Funding weighted average coupon increases exacerbated as
the GRAN 03-1, GRAN 04-2 and GRAN 04-3 pass their step-up dates in
July 2010, June 2011 and September 2011 respectively.
Furthermore, the GRAN 04-2 and GRAN 04-3 reserve funds yet to be
fully funded up to their required amounts.
The rating actions are:
Whinstone Capital Management Limited
-- Class B1 (ISIN XS0234448289): downgraded to 'BB+' from 'BBB';
Outlook Negative; Loss Severity Rating is 'LS-1'
-- Class B2 (ISIN XS0234448529): downgraded to 'BB+' from 'BBB';
Outlook Negative; Loss Severity Rating is 'LS-1'
-- Class B3 (ISIN XS0234449501): downgraded to 'BB+' from 'BBB';
Outlook Negative; Loss Severity Rating is 'LS-1'
-- Class C1 (ISIN XS0234450939): downgraded to 'B-' from 'BB-';
Outlook Stable; Loss Severity Rating is 'LS-1'
-- Class C2 (ISIN XS0234451234): downgraded to 'B-' from 'BB-';
Outlook Stable; Loss Severity Rating is 'LS-1'
-- Class C3 (ISIN XS0234451820): downgraded to 'B-' from 'BB-';
Outlook Stable; Loss Severity Rating is 'LS-1'
Further information on Fitch's EMEA structured finance offering
can be found in "EMEA Structured Finance Snapshot", which is
available at www.fitchratings.com. The Snapshot consolidates and
highlights the key research and commentary produced by the
agency's EMEA structured finance group and includes previously
unpublished Fitch data and multimedia content that will be updated
each quarter.
* UK: Scottish Corporate Insolvencies Up 66% in 2nd Quarter 2010
----------------------------------------------------------------
BBC News, citing data issued by The Accountant in Bankruptcy for
April to June, reports that the number of Scottish companies going
bust increased by 66% to 304 from 183 in the same quarter last
year.
According to BBC News, in the financial year from April 2009,
there were 861 company insolvencies.
Separately, Peter Ranscombe and Jeff Salway at The Scotsman report
that Bryan Jackson, a corporate recovery partner at accountancy
firm PKF, warned that firms in the building and construction
sectors in particular remained "under great pressure" and that
many of their suppliers were now "struggling to survive".
===============
X X X X X X X X
===============
* BOOK REVIEW: All Organizations Are Public - Comparing Public and
Private Organizations
------------------------------------------------------------------
Author: Barry Bozeman
Publisher: Beard Books
Softcover: 201 pages
List Price: $34.95
Bozeman breaks down the simple, widely-accepted categorization of
organizations into either public or private, with the former being
government organizations and everything else, private. This view
of the innumerable and widely varied organizations in all parts of
the United States has held up since at least the latter 1800s even
though it is demonstrably inapplicable. It's plain that not all
government organizations are public; the CIA and FBI are but two
that can hardly be labeled this. And not all other organizations
lumped into the category of private can be said to be this since
they operate in one way or another in the public domain and are
subject in varying ways to varying degrees to the public's
representative, namely the government.
Even in recent decades as government has grown ever larger and
more involved in all areas of the society and corporations have
become more expansive and changeable with globalization, the
simplistic, inaccurate division of public and private continues to
hold up. The "sector blurring" Bozeman was seeing when he first
wrote this work in the 1980s has increased and accelerated, making
All Organizations Are Public a more relevant and useful guide to
understanding the topology and workings of today's organizations
that it was when it was first published. The outsourcing of
certain tasks traditionally done by American servicemen and women
to civilian employees of a business organization is one current
example of operations and an organization which cannot fall neatly
into the public-private categorization. The more complex
relationship -- at times virtually a cooperation -- between
government and corporations in the globalization of business is
another current example of the "sector blurring" prompting Bozeman
to take the measure of what was very noticeably happening with
modern-day organizations. He not only reports what has been going
on, but also develops concepts and devises principles of use for
corporate strategists and managers as well as business school
teachers, entrepreneurs considering starting or expanding a
business, and government officials.
Bozeman's view of modern organizations rests not on the common and
changeable references of popular opinion, the marketplace of
ideas, or the phenomena of consumerism, but on the central social
reality of "political authority." In doing away with the
conventional, yet misleading categories of public and private,
Bozeman does not leave the reader with a vague, cosmic-like view
of the field of organizations. The two categories are replaced
with an interrelated set of axioms and corollaries bringing a
logic and order to the vast and diverse world of organizations.
The first axiom is, "Publicness is not a discrete quality but a
multidimensional property. An organization is public to the
extent that it exerts or is constrained by political authority."
The first corollary to this is, "An organization is private to the
extent that it exerts or is constrained by economic activity."
Bozeman recognizes that government -- i.e., "public" -- and
organizations formed or owned by regular citizens-i.e., "private"
-- do have differences. They come into being from different
motives and different purposes, and they are related to the public
in different ways and operate differently. Nonetheless, the
structure and operations of all organizations are affected, and in
some cases determined, by the overriding political authority. In
Bozeman's conception, "publicness refers to the degree to which
the organization is affected by political authority." Some are
tightly controlled by this political authority, while others are
barely touched by it. But no organization is entirely free of
such authority. With his axioms and corollaries, Bozeman gives
principles and characteristics for apprehending the nature of
particular organizations.
Today's research and development (R&D) organizations are a kind of
organization that the conventional public-private categorization
cannot begin to make sense of. "Research and development
organizations provide a fertile ground for analysis of dimensions
of publicness." As hybrids involving aspects of universities,
government, and industry, R&D organizations are playing important
economic and social roles in such areas as health, the
environment, demographics, and welfare. Many are located at
universities and run by faculty members. Many corporations have
R&D divisions.
The value and relevance of Bozeman's key factor of political
authority is seen especially with respect to R&D organizations.
Current government policies on stem cell research demonstrate how
Bozeman's central factor of "political authority" is applied to
understand any particular organization engaged in such research.
It's a matter of where an organization falls in the spectrum of
degrees of being affected by political authority, not the
uninformative, sterile decision as to whether an organization
should be labeled public or private.
Bozeman's view of organizations takes into account the reality
that the term "private" has little meaning with respect to
organizations. All organizations, like all citizens, are subject
to the political authority somehow, notably the laws and
regulations. But Bozeman is not interested simply in arguing for a
new theory of organizations. His "multidimensional view of
publicness" in tune with the complexity, diversity, and changes
among today's organizations can help readers more effectively
steer and develop their own organization and work with other
organizations.
*********
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 * * *