/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/101028.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, October 29, 2010, Vol. 11, No. 214 Headlines A U S T R I A A-TEC INDUSTRIES: CEO to Hand Over 25.1% Stake; Creditors to Meet G E R M A N Y RHJ INTERNATIONAL: Honsel AG Files for Insolvency WESTLB AG: May Sell WestImmo in Pieces; Seeks Deadline Extension * GERMANY: Draws Up EU Mechanism for State Insolvencies I R E L A N D ANGLO IRISH: Bondholders to Block EUR2 Billion Debt Exchange ANGLO IRISH: S&P Downgrades Rating on Debt Securities to 'D' BANK OF IRELAND: Sold EUR750 Million Government-Guaranteed Bonds INTERNATIONAL SECURITIES: Owners to Wind Up Business Due to Losses K A Z A K H S T A N BTA BANK: S&P Raises Counterparty Credit Ratings to 'B-' From 'D' L U X E M B O U R G TRUVO USA: Wins Confirmation of Exit Plan After Settlement N E T H E R L A N D S AMSTEL CLO: Moody's Lifts Rating on Class E Notes From Ba2 (sf) AMSTEL CORPORATE: Moody's Upgrades Ratings on Various Notes AMSTEL SECURITISATON: Moody's Upgrades Ratings on Various Notes AMSTEL SECURITIZATION: Moody's Lifts Ratings on Various Notes AMSTEL SHER: Moody's Lifts Rating on Class E Notes to 'Ba1 (sf)' SENSATA TECHNOLOGIES: Posts US$48MM Net Loss in Sept. 30 Quarter R U S S I A BANK VOZROZHDENIE: S&P Gives Positive Outlook; Keeps 'B+/B' Rating GLOBEXBANK: Fitch Changes Outlook to Stable; Affirms 'BB' Rating TATTELECOM OJSC: Fitch Upgrades Issuer Default Rating to 'BB-' TRANSCREDITBANK: Moody's Assigns (P)'Ba1' Rating to Senior Debt S P A I N CAJA SAN FERNANDO: S&P Affirms Ratings on Five Classes of Notes GRIFOLS SA: S&P Affirms 'BB-' Long-Term Corporate Credit Rating * SPAIN: Commercial Bankers Criticize Slow Caja Reform S W E D E N STENA AB: Moody's Downgrades Corporate Family Rating to 'Ba2' U K R A I N E PIVDENNYI BANK: Moody's Gives Stable Outlook on 'B2' Rating U N I T E D K I N G D O M ALTERNATIVE HOTEL: Lloyds to Give Incentives for DeVere Turnaround CHARLTON CARE HOMES: Goes Into Administration FIRST CALL: Goes Into Liquidation After Major Customer Moved LEISURE & GAMING: Forced Into Administration MAYPOLE GROUP: Joint Administrators Appointed PARAMOUNT PRINT: Falls Into Administration; Cuts 35 Jobs PULSE MEDIA: Goes Into Administration SPECIALITY RETAIL: Acquired by GA Europe; Goes Into Administration XL LEISURE: Goes Into Administration X X X X X X X X * BOOK REVIEW: Fraudulent Conveyances, A Treatise Upon Conveyances ********* ============= A U S T R I A ============= A-TEC INDUSTRIES: CEO to Hand Over 25.1% Stake; Creditors to Meet ----------------------------------------------------------------- Wirtschaftsblatt, citing Wolfgang Hrobar of creditor protection associations Alpenlaendischer Kreditorenverband, who attended a creditor committee meeting on Wednesday, reported that A-Tec Industries AG Chief Executive Officer Mirko Kovats plans to hand over a 25.1% stake in the company, Zoe Schneeweiss writes for Bloomberg News. Bloomberg relates Mr. Hrobar, as cited by the Vienna-based newspaper, said the stake will be entered into the insolvency estate via a trusteeship or be mortgaged. According to Bloomberg, Mr. Hrobar told the paper that regarding the company's AE&E units the creditor banks will make cash and credit lines available until March 31, 2012. The banks will receive the EUR12 million (US$16.5 million) dividend of A-Tec's Brixlegg unit as a security, Bloomberg relates, citing Wirtschaftsblatt. Bloomberg notes Mr. Hrobar said the banks will meet today, Oct. 29, to discuss details. A-Tec's creditors committee consists of the three trustees for bond crditors -- Georg Freimueller, Ulla Reisch and Susi Pariasek -- creditor protection associations KSV, Alpenlaendischer Kreditorenverband and Creditreform and Austria's attorney general, Bloomberg discloses. Separately, Boris Groendahl at Bloomberg News, citing Der Standard, reports A-Tec's creditor banks will meet on Monday, Nov. 1, to decide whether to unfreeze up to EUR80 million (US$110 million) in loans and EUR70 million in guarantees to its AE&E unit. According to Bloomberg, Die Presse newspaper reported the banks are demanding that A-Tec, which requested insolvency protection last week, inject its own funds into the unit. Bloomberg notes Der Standard reported that non-Austrian banks may favor to break up the company and sell its assets. As reported by the Troubled Company Reporter-Europe on Oct. 22, 2010, Bloomberg News said A-Tec sought court clearance to reorganize debt after losing access to its line of credit because of an Australian power-station project's financial difficulties. Bloomberg disclosed A-Tec said in a statement on Oct. 20 that the company filed for self-administered reorganization proceedings at the Vienna Commercial Court and appointed trustees for bondholders. Bloomberg said A-Tec has 90 days under Austrian law to seek an agreement with lenders, after which it can seek full protection from creditors. The company has a EUR798 million (US$1.11 billion) revolving credit facility and EUR302 million of outstanding bonds, according to Bloomberg data. A-Tec Industries AG is an engineering company based in Vienna, Austria. ============= G E R M A N Y ============= RHJ INTERNATIONAL: Honsel AG Files for Insolvency ------------------------------------------------- RHJ International's fifty-one percent subsidiary, Honsel AG, has filed for insolvency in Germany, having failed to reach agreement with all stakeholders on a sustainable restructuring plan to allow for the continuation of the company. As part of a restructuring in July 2009, RHJI invested EUR50 million into the Honsel Group in exchange for a 51% stake in the group, with the remaining 49% being held by Honsel's senior term lenders. Over the last year Honsel has incurred significant operating losses. Despite the equity support provided by RHJI in the midst of the economic downturn and considerable efforts by Honsel's management to address operating issues in manufacturing in conjunction with new product launches, Honsel's financial performance remained under pressure and resulted in a liquidity shortfall. Leonhard Fischer, RHJI's Chief Executive Officer, commented:"We regret that in spite of all efforts the company has not been able to turn around its business." The carrying value of the investment in Honsel as reflected in RHJI's non- consolidated accounts stands at EUR50 million. In addition EUR20 million super senior credit facilities and EUR15 million of leasing and factoring facilities are outstanding. About RHJ International RHJ International is a limited liability company incorporated under the laws of Belgium, having its registered office at Avenue Louise 326, 1050 Brussels, Belgium. RHJI is transforming itself from a diversified industrial holding company into an active and dynamic financial services group. WESTLB AG: May Sell WestImmo in Pieces; Seeks Deadline Extension ---------------------------------------------------------------- Holger Elfes at Bloomberg News, citing Financial Times Deutschland, reports that WestLB AG may sell its WestImmo property unit in bits if the European Union won't extend the end-of-the- year deadline for a disposal. Bloomberg relates the FTD, citing people close to the government, reported Germany's federal government will support WestLB and ask the EU for an extension of the deadline. Separately, James Wilson at The Financial Times reports extending the deadline for a WestImmo sale would enable WestLB to sell when market conditions normalised and improve the subsidiary's funding needs. Westimmo had EUR871 million (US$1.2 billion) of equity and assets of EUR28 billion at the end of June, the FT discloses. Offers received for WestImmo, a property finance unit, were "unacceptable from an overall business point of view", WestLB admitted after months of trying to conclude a deal, according to the FT. The FT relates the request for an extended deadline to sell WestImmo risks further inflaming WestLB's fraught relationship with the EU's competition commission, which has still fully to approve the way that the landesbank this year off-loaded toxic and unwanted assets into a so-called "bad bank" to be wound down. The FT notes Germany's government -- which must negotiate with Brussels on WestLB's behalf -- said it would consider the request to extend the deadline for the WestImmo sale. According to the FT, the Commission said it had not yet received WestLB's request. On July 23, 2010, the Troubled Company Reporter-Europe reported Bloomberg News, citing the FTD, said that Aareal Bank AG and investment firm Apollo made binding bids for WestImmo. As reported by the Troubled Company Reporter-Europe on June 4, 2010, Dow Jones Newswires said WestLB is mandated by the EU to sell WestImmo as part of a broader restructuring tied to its use of government bailouts. 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 WestLB AG's 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. * GERMANY: Draws Up EU Mechanism for State Insolvencies ------------------------------------------------------- Patrick Donahue at Bloomberg News reports that Handelsblatt, citing an unidentified government official, related that German Finance Ministry officials have drafted a European Union mechanism for state insolvencies that involves an extension of sovereign- debt maturities, a suspension of interest payments and a waiver on creditors' claims. According to Bloomberg, the newspaper said the draft, which will be presented in coming weeks, avoids the term "orderly insolvency." ============= I R E L A N D ============= ANGLO IRISH: Bondholders to Block EUR2 Billion Debt Exchange ------------------------------------------------------------ Anousha Sakoui and Jennifer Hughes at The Financial Times report that Anglo Irish Bank faces a battle to impose a punitive settlement on its junior creditors after a group of bondholders formed in a bid to block attempts to force a EUR2 billion (GBP1.74 billion) debt exchange on creditors. The FT relates an ad hoc group of investors, represented by law firm Brown Rudnick and investment bank Houlihan Lokey, said on Wednesday they held enough bonds in one of the bank's so-called lower tier two notes to block moves by the bank to force bondholders to accept a tender offer of that issue. According to the FT, the investors say they do not plan to participate in the tender and will vote against the extraordinary resolutions contained in it. Bondholders are being offered to participate in an exchange that will pay them 20% of face value for their current bonds, the FT discloses. If more than 75% of bondholders approve the offer by participating, the company may force dissenting bondholders to sell their bonds back to the bank for just one cent for every EUR1,000 of the bonds' face value, the FT notes. The group, as cited by the FT, said Anglo Irish's proposal is inconsistent with principles of fair and equal treatment of creditors. Last week, Maarten van Eden, the bank's chief financial officer, told the Financial Times that the bank would not negotiate on the terms. The Irish government has repeatedly warned it will introduce legislation, if necessary, to force bondholders to share the burden, the FT relates. The bank has scheduled meetings in December for bondholders to vote on the offer, the FT states. The FT says acceptance will require a two-thirds turnout, and 75% of those present, to vote in favor. Default As reported by the Troubled Company Reporter-Europe on Oct. 27, 2010, ratings firm DBRS, as cited by Bloomberg News, said Anglo Irish's offer to swap its subordinated debt for new bonds is "tantamount to a default" because of the penalties inflicted on investors who refuse to take part. Bloomberg disclosed DBRS said in a statement that the lender's non-senior ratings will be cut one step to D for "Default" after the lender completes the exchange announced on Oct. 21. "DBRS views the proposed exchange as offering bondholders limited options," the ratings company said, according to Bloomberg. "Should the bondholders reject the proposed exchange, at an 80 percent discount on tendered notes, they face the risk of significant burden sharing." Bloomberg News' Abigail Moses reported BNP Paribas SA said the bank's offer to swap subordinated bonds for new notes may trigger payouts on as much as US$420 million of credit-default swap contracts. Bloomberg disclosed BNP Paribas credit analyst Olivia Frieser said investors will have to approve changes to the terms of the bonds to exchange them, causing a so-called restructuring credit event on swaps linked to all of the bank's debt. 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 Sept. 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 Sept. 17, 2010, Fitch Ratings affirmed Anglo Irish Bank Corporation Ltd.'s Individual Rating at 'E'. It also affirmed its ratings on the bank's Lower Tier 2 Subordinated Notes at 'CCC' and Tier 1 Notes at 'C'. As reported by the Troubled Company Reporter-Europe on Sept. 15, 2010, Moody's Investors Service said it is maintaining its review for possible downgrade on the A3/P-1 deposit and senior debt ratings, and on the Ba1 subordinated debt rating of Anglo Irish Bank Corporation. The junior subordinated debt is downgraded to C from Caa2. The backed-Aa2 rating (stable outlook) on the government guaranteed debt, the C rating on the bank's tier 1 securities and the E bank financial strength rating -- mapping to Caa1 on the long-term scale -- are unaffected by this rating action. ANGLO IRISH: S&P Downgrades Rating on Debt Securities to 'D' ------------------------------------------------------------ Standard & Poor's Ratings Services said that it lowered its rating on Anglo Irish Bank Corp. Ltd.'s nondeferrable dated subordinated debt (lower Tier 2) securities to 'D' from 'CCC'. The 'BBB/A-2' counterparty credit ratings on Anglo remain on CreditWatch with negative implications, where they were placed on Jan. 26, 2010. The rating action does not affect issuances by Anglo which are guaranteed by the Republic of Ireland (AA-/Negative/A-1+). The downgrade of the lower Tier 2 debt rating reflects S&P's opinion that this exchange offer is a "distressed exchange" and tantamount to default in accordance with its criteria. There is no related rating action on the counterparty credit ratings because there is no default on non-regulatory capital issues. Anglo has announced an exchange offer for its lower Tier 2 bondholders. It has offered bondholders the opportunity to exchange any or all of their existing notes at a rate of 20 cents on the euro into a new one-year senior government guaranteed bond. S&P considers this to be a "distressed exchange" because bondholders will receive significantly less than the original promise and because, as Anglo has referenced in its Memorandum to bondholders, the Minister of Finance has said that he is prepared to legislate to ensure that subordinated bondholders share appropriately in the financial burden of rescuing the bank. In addition, Anglo has offered a small cash payout to junior subordinated bondholders. The ratings on these notes are unaffected because S&P already rate them 'C', reflecting the ongoing coupon deferral. If both of these offers are fully accepted, Anglo will reportedly create additional core Tier 1 capital of about EUR1.5 billion. Anglo's exchange offer follows recent announcements that the Irish government has resolved to split Anglo into two licensed and regulated credit institutions, subject to EC approval. Further, the regulator has determined that Anglo will need an additional EUR6.4 billion in capital (based on its central case) over and above the EUR22.9 billion of capital already provided by the state. S&P understand, based on the Minister's Statement on Banking on Sept. 30, 2010, that the projected capital gains from the exchange offers were already factored into the government's projected total gross cost of Anglo's restructuring. Anglo also receives significant levels of special funding lines from the Central Bank of Ireland and participates in open-market operations with the European Central Bank. S&P regard Anglo's funding and liquidity position as highly stressed. "S&P plan to resolve Anglo's CreditWatch status once S&P has reviewed its restructuring plan," said Standard & Poor's credit analyst Nigel Greenwood. "Based on S&P's current understanding of the government's support and its plan to split and wind-down Anglo, S&P would expect, on resolution of the CreditWatch, to classify Anglo as a government-related entity," he added. Under S&P's GRE criteria, S&P would expect to assign ratings to Anglo no higher than the existing 'BBB/A-2' ratings. Depending on S&P's view of Anglo's role and link to the government, and its view of its stand-alone credit profile, S&P could lower the ratings by one or more notches. S&P's ratings will take into consideration its assessment of the medium-term importance of Anglo to the government, the intentions of the latter with respect to Anglo's various classes of debt, and Anglo's future financial and business profile. BANK OF IRELAND: Sold EUR750 Million Government-Guaranteed Bonds ---------------------------------------------------------------- Jennifer Hughes at The Financial Times reports that Bank of Ireland has sold EUR750 million (GBP655 million) of two-and-a-half years, government-guaranteed bonds amid strong demand that helped increase the sale from the original EUR500 million. According to the FT, Bank of Ireland's bonds will pay an interest coupon of 5.875%. Investor orders for the transaction totalled EUR1 billion and a total of 68 accounts bought the bonds, indicating wide interest, the FT discloses. The FT relates of the buyers, 35% were from the UK and Ireland; the rest were from continental Europe. The FT relates bankers involved in the deal said most of the investors were so-called "real money", or institutional fund managers, not hedge funds and other speculative players. Bank of Ireland recently issued GBP300 million of private bonds to a small group of investors, but Wednesday's deal was its first attempt to offer bonds publicly, the FT notes. The deal was also completed successfully in spite of increasing market concern following the collapse of talks over Portugal's planned austerity budget, the FT states. 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 Sept. 15, 2010, Moody's Investors Service upgraded the bank financial strength rating of Bank of Ireland to D+ from D. The D+ maps to Baa3 on the long-term scale and the D mapped to Ba2. The outlook on the BFSR is stable. The other ratings of the bank, including the A1 (stable)/Prime-1 bank deposit and senior debt ratings, are affirmed. The BFSR of ICS Building Society was also upgraded to D+ (mapping to Baa3 on the long-term scale) from D/Ba2, in line with that of its parent. The outlook on the A2 long-term bank deposit rating of the society was changed to negative. Moody's said in addition to the ongoing burden stemming from the impairment of the non-NAMA assets, the D+ BFSR also incorporates other challenges facing the bank such as (i) the wind-down of the large portfolio of non-core assets of which the largest part is the UK intermediary distributed mortgage book (EUR30 billion at end-June 2010) and, along with that, a reduction in the bank's relatively high utilization of wholesale funding; (ii) the sale of businesses due to European Commission requirements in return for approval of the state aid; and (iii) the risk of a further downturn in the economies of Ireland and the UK. INTERNATIONAL SECURITIES: Owners to Wind Up Business Due to Losses ------------------------------------------------------------------ International Securities Trading Corporation is set to be liquidated over the next two months, Emmet Oliver at Irish Independent reports citing current owners Collins Stewart. "The directors intend to liquidate the company and this process is scheduled to begin in late 2010," the company's latest accounts states, according to Irish Independent. A number of resignations have hit the company in recent months, among them original founder Tiarnan O'Mahoney, the ex-Anglo Irish executive, Irish Independent relates. According to Irish Independent, the company will be bowing out sitting on a loss of EUR1.9 million after tax. Irish Independent reveals that the company only had income at the end of 2009 of EUR1.1 million, almost half the amount registered the previous year. The shareholder's equity left in the company is EUR4.2 million which should now go to Collins Stewart, after costs are discharged, Irish Independent discloses. "The company incurred significant losses during the financial year as a result of a difficult trading environment. Following an in depth strategic review of the company's future viability, the directors decided to wind up the company." As reported by the Troubled Company Reporter-Europe on March 7, 2008, Irish Independent said unsecured creditors of ISTC approved the scheme of arrangement drafted by court-appointed examiner John McStay. Irish Independent disclosed under the scheme, unsecured creditors, which include banks, were expected to recover 12% of their EUR439 million investment, while subordinated creditors -- including 125 small investors who invested EUR43 million in bonds in ISTC -- and Asian investors, who bought EUR160 million, worth of preference share-like instruments, would see no return. Irish Independent said the company was forced to petition for examinership after a warning from Dresdner Bank, a German creditor, that the bank would seek to have the company wound up unless it paid back a EUR176,000 debt. Headquartered in Dublin, Ireland, International Securities Trading Corporation Plc -- http://www.istcorporation.com/-- provides investment grade Tier 1 and Tier II hybrid bank capital via private placement issues and primary market participation. Acting as principal in private placement transactions, ISTC is uniquely positioned to offer bespoke solutions and certainty of execution to issuers. =================== K A Z A K H S T A N =================== BTA BANK: S&P Raises Counterparty Credit Ratings to 'B-' From 'D' ----------------------------------------------------------------- Standard & Poor's Ratings Services said that it had raised its long-term counterparty credit ratings on Kazakhstan-based BTA Bank J.S.C. to 'B-' from 'D' and its short-term counterparty credit ratings to 'C' from 'D'. The outlook is stable. At the same time, S&P assigned a 'kzBB-' Kazakhstan national scale rating. "The upgrade reflects the improvement of BTA's stand-alone credit profile resulting from the completion of the restructuring of its wholesale debt, as well as S&P's incorporation in its assessment of the stand-alone credit profile of ongoing financial support from the Kazakh government," said Standard & Poor's credit analyst Ekaterina Trofimova. The final rating incorporates a one-notch uplift above the stand- alone credit profile because S&P expects a "moderate" probability of potential timely and extraordinary government support if required. Very weak asset quality and capitalization, poor earnings, and a somewhat tight repayment schedule remain the key weaknesses for the ratings. With assets of US$13 billion on Sept. 1, 2010, BTA ranked among the top three banks in Kazakhstan. BTA reported market shares of 16% by assets and 21% by loans as of Sept. 1, 2010. However, these high nominal figures overstate its real market position and business franchise, given significant nonperforming loans accumulated on the books. S&P considers BTA to be a government-related entity according to its criteria. S&P's one-notch uplift from BTA's stand-alone credit profile reflects: BTA's "strong" link with the government. As a result of restructuring, 100% state-owned holding and investment company Samruk?Kazyna (not rated) now owns 81.5% of the bank and BTA currently represents one of the government's largest investments in the financial sector; and BTA's "limited" importance for Kazakhstan's economy because the bank's market share is reducing and the bank does not provide a specific public service that cannot be provided by other commercial banks. The stable outlook reflects S&P's expectation that the Kazakh government will continue to provide substantial ongoing liquidity support as the bank cleans it loan book, diversifies its funding base, and reinvigorates its business franchise. "S&P may lower the ratings if S&P perceive that the Kazakh government's stance toward the bank is no longer consistent with a "moderate" likelihood of support, or if BTA's weak earnings and poor asset quality do not improve but further threaten the bank's financial health and pressure its liquidity profile and refinance risks increase sharply," said Ms. Trofimova. Under S&P's base-case scenario, S&P sees limited ratings upside potential in the medium term, unless the weight of problem loans is lifted from the bank and it can reinvigorate its business franchise and boost earnings, or if a new owner with strong capacity and willingness to provide substantial financial support is sought. =================== L U X E M B O U R G =================== TRUVO USA: Wins Confirmation of Exit Plan After Settlement ---------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Truvo Luxemburg Sarl won confirmation from the U.S. bankruptcy judge of its proposed plan of reorganization. As reported in the Troubled Company Reporter on October 7, Truvo Group struck a deal with its unsecured creditors that would give them a greater recovery when the Company exits from Chapter 11 protection. The revised proposal: -- increases to EUR20 million ($27.4 million) from EUR15 million the amount to be divvied up among holders of Truvo's high-yield bonds; and -- entitles the high-yield bondholders to: * warrants good for a higher percentage of the reorganized Truvo's shares than they would have previously received; and * cash good for 7.5% of Truvo's U.S. tax proceeds, if that money is available. The TCR reported that the holders of the high-yield notes will get the better recovery only if they vote for Truvo's new bankruptcy- exit plan. Truvo's committee of unsecured creditors, which is representing the bondholders, agreed to support the plan and withdraw all litigation regarding it. Full-text copies of the Plan and Disclosure Statement are available for free at: http://bankrupt.com/misc/TRUVOUSA_2ndAmendedPlan.pdf http://bankrupt.com/misc/TRUVOUSA_AmendedDS.pdf About Truvo USA Wilmington, Delaware-based Truvo USA LLC is a non-operating subsidiary of Belgium-based Truvo Luxembourg S.a.r.l, which publishes print and online directories through its operating subsidiaries. Truvo USA and other non-operating affiliates filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 10-13513) on July 1, 2010. The Company estimated $500 million to $1 billion in assets and more than $1 billion in debts in its Chapter 11 petition. Sean A. O'Neal, Esq., and Thomas J. Moloney, Esq., at Cleary Gottlieb Steen & Hamilton, LLP, and Vincent Edward Lazar, Esq., at Jenner & Block LLP, assist the Company in its restructuring effort. Jenner & Block LLP and Simpson Thacher & Bartlett LLP are the Company's special counsel. Houlihan Lokey Howard & Zukin (Europe), Limited, is the Company's restructuring and financial advisor. Truvo Luxembourg and its operating subsidiaries have not sought protection under Chapter 11 protection or any other insolvency regime. ===================== N E T H E R L A N D S ===================== AMSTEL CLO: Moody's Lifts Rating on Class E Notes From Ba2 (sf) --------------------------------------------------------------- Moody's Investors Service has upgraded the ratings of notes issued by Amstel CLO 2007-1 BV Issuer: Amstel Corporate Loan Offering 2007-1 B.V. -- EUR125M Class B Notes, Upgraded to Aaa (sf); previously on May 14, 2007 Definitive Rating Assigned Aa2 (sf) -- EUR100M Class C Notes, Upgraded to Aaa (sf); previously on May 14, 2007 Definitive Rating Assigned A2 (sf) -- EUR100M Class D Notes, Upgraded to Aa1 (sf); previously on May 14, 2007 Definitive Rating Assigned Baa2 (sf) -- EUR150M Class E Notes, Upgraded to A2 (sf); previously on May 14, 2007 Definitive Rating Assigned Ba2 (sf) Ratings Rationale Moody's said the rating actions are driven by the substantial and ongoing amortization of the underlying pool leading to an enhanced level of subordination for the rated tranches coupled with satisfactory performance of the reference pool. This transaction which closed in March 2007 is a synthetic balance sheet CLO referencing a portfolio of largely European and North American corporate loans originated by ABN Amro (now RBS N.V.). Between April 2010 and August 2010, the pool has amortized by 20.2% from EUR2,899.4 million to EUR2,312.1 million; the August 2010 portfolio has a WARF of 777.6 consistent with an implied rating of Ba1 for the pool. There have been five credit events since closing totaling EUR53.8 million of par, which represent 0.5% of the closing portfolio of EUR10 billion. For the majority of the underlying referenced assets in the portfolio, the equivalent Moody's ratings used in Moody's analysis are obtained through a mapping process between the originator's internal rating scale and Moody's public rating scale. To compensate for the absence of credit indicators such as ratings reviews and outlooks in mapped ratings, a half notch stress was applied to the mapping scale as a base case. Because this mapping was performed more than two years ago, an additional stress was applied to capture potential deviations from the established mapping. Moody's considered several sensitivity runs on top of this base case. These sensitivity runs include a notching stress scenario to assess the impact of a mapping drift, where Moody's assumed that all names in the portfolio were half a notch lower, a jump to Caa2 scenario where the agency assumed that either of the two largest obligors ratings would move to Caa2, and an amortization scenario considering that another 20.2% of the pool would further repay by December 2010. In all these cases, the model outputs are equal or better than the current revised ratings. However, in reaching its rating decision, Moody's weighted the fact that tranches D and E remain sensitive to potential losses on the portfolio, as an additional 4% loss on the pool sees a decrease in the model outputs by up to 1 and 4 notches respectively compared to the base case run. Rating actions taken are based on a consideration of the above scenarios and other factors including the size and quality of the subordination available to the rated tranches. Moody's notes that the ratings of this transaction remain sensitive to the rate of amortisation and prepayments. If rapid delivering continues to affect this transaction, assuming that other credit related factors remain stable, the notes ratings are likely to experience further upgrade migration. Except as detailed above for the sensitivity runs, standard asset default probabilities and recovery rates were used in Moody's model. A mean recovery rate of 36.6% was generated for the pool (dependent upon industry sector and domicile of individual reference obligors) and the base case weighted average default probability -- net of stresses- was 3.36%. Moody's Investors Service did not receive or take into account a third party due diligence report on the underlying assets or financial instruments related to the monitoring of this transaction in the past 6 months. AMSTEL CORPORATE: Moody's Upgrades Ratings on Various Notes ----------------------------------------------------------- Moody's Investors Service has upgraded the ratings of Notes issued by one synthetic collateralized debt obligation transaction referencing mainly European and North American corporate loans. Issuer: Amstel Corporate Loan Offering 2005-1 B.V. -- EUR125M Class B Notes, Upgraded to Aaa (sf); previously on July 11, 2005 Assigned Aa2 (sf) -- EUR150M Class C Notes, Upgraded to Aa1 (sf); previously on July 11, 2005 Assigned A2 (sf) Issuer: Amstel Corporate Loan Offering 2005-2 B.V. -- EUR60M Class D Notes, Upgraded to Aa2 (sf); previously on July 11, 2005 Assigned Baa2 (sf) -- EUR85M Class E Notes, Upgraded to Baa3 (sf); previously on July 11, 2005 Assigned Ba2 (sf) Ratings Rationale Moody's said the rating actions are driven by the substantial and ongoing amortization of the underlying pool leading to an enhanced level of subordination for the rated tranches coupled with satisfactory performance of the reference pool. These transactions, which closed in June 2005 are synthetic balance sheet CLO referencing the same underlying pool, a portfolio of largely European and North American corporate loans originated by ABN Amro (now RBS N.V.). Between April 2010 and August 2010, the pool has amortized by 32% from EUR4,371.7 million to EUR2,970.4 million; the August 2010 portfolio has a WARF of 279 consistent with an implied Moody's rating of Baa2 for the pool. There have been no credit events since closing. For the majority of the underlying referenced assets in the portfolio, the equivalent Moody's ratings used in Moody's analysis are obtained through a mapping process between the originator's internal rating scale and Moody's public rating scale. To compensate for the absence of credit indicators such as ratings reviews and outlooks in mapped ratings, a half notch stress was applied to the mapping scale as a base case. Because this mapping was performed more than two years ago, an additional stress was applied to capture potential deviations from the established mapping. Moody's considered several sensitivity runs on top of this base case. These sensitivity runs include a notching stress scenario to assess the impact of a mapping drift, where Moody's assumed that all names in the portfolio were half a notch lower, a potential loss scenario to assess whether an additional 2% loss on the pool would affect the model outputs, and an amortization scenario considering that another 32% of the pool would further repay by December 2010. In all these cases, the model outputs are equal or better than the current revised ratings. However, in reaching its ratings decision, Moody's weighted the fact that tranches E and F remain sensitive to a jump to Caa2 scenario where the agency assumed that either of the two largest obligors ratings would move to Caa2. Under these scenarios, the model outputs are respectively 1 and 5 notches lower than the base case run. Rating actions taken are based on a consideration of the above scenarios and other factors including the size and quality of the subordination available to the rated tranches. Moody's notes that the ratings of this transaction remain sensitive to the rate of amortization and prepayments. If rapid delivering continues to affect this transaction, the notes ratings are likely to experience further upgrade migration. Except as detailed above for the sensitivity runs, standard asset default probabilities and recovery rates were used in Moody's model. A mean recovery rate of 42.9% was generated for the pool ( dependent upon industry sector and domicile of individual reference obligors) and the base case weighted average default probability -- net of stresses- was 0.54%. Under this methodology, Moody's relies on a simulation based framework, implemented via CDOROM2.6TM, to generate default and recovery scenarios for each asset in the portfolio and computes the associated loss to each tranche in the structure. Moody's Investors Service did not receive or take into account a third party due diligence report on the underlying assets or financial instruments related to the monitoring of this transaction in the past 6 months. AMSTEL SECURITISATON: Moody's Upgrades Ratings on Various Notes --------------------------------------------------------------- Moody's Investors Service has upgraded the ratings of notes issued by Amstel Securitisaton of Highgrade Exposures 2006 B.V. Issuer: Amstel Securitisation of Highgrade Exposures 2006 B.V. -- EUR125M Class B Notes, Upgraded to Aaa (sf); previously on May 30, 2007 Assigned Aa2 (sf) -- EUR100M Class C Notes, Upgraded to Aa1 (sf); previously on May 30, 2007 Assigned A2 (sf) -- EUR80M Class D Notes, Upgraded to Aa2 (sf); previously on May 30, 2007 Assigned Baa2 (sf) -- EUR90M Class E Notes, Upgraded to Baa1 (sf); previously on May 30, 2007 Assigned Ba1 (sf) Ratings Rationale Moody's said the rating actions are driven by the substantial and ongoing amortisation of the underlying pool leading to an enhanced level of subordination for the rated tranches coupled with satisfactory performance of the reference pool. This transaction which closed in November 2006 is a synthetic balance sheet CLO referencing a portfolio of largely European and North American corporate loans originated by ABN Amro (now RBS N.V.). Between April 2010 and August 2010, the pool has amortized by 20.6% from EUR4,062.1 million to EUR3,227.2 million; the August 2010 portfolio has a WARF of 418.7 consistent with an implied rating of Baa3 for the pool. There have been two credit events since closing totaling EUR27.4 million of par, which represent 0.27% of the closing portfolio of EUR10 billion. For the majority of the underlying referenced assets in the portfolio, the equivalent Moody's ratings used in Moody's analysis are obtained through a mapping process between the originator's internal rating scale and Moody's public rating scale. To compensate for the absence of credit indicators such as ratings reviews and outlooks in mapped ratings, a half notch stress was applied to the mapping scale as a base case. Because this mapping was performed more than two years ago, an additional stress was applied to capture potential deviations from the established mapping. Moody's considered several sensitivity runs on top of this base case. These sensitivity runs include a notching stress scenario to assess the impact of a mapping drift, where Moody's assumed that all names in the portfolio were half a notch lower, and an amortization scenario considering that another 20.6% of the pool would further repay by December 2010. In all these cases, the model outputs are equal or better than the current revised ratings. However, in reaching its ratings decisions, Moody's weighted the fact that tranches D and E remain sensitive to a jump to Caa2 scenario where the agency assumed that either of the two largest obligors ratings would move to Caa2. Under these scenarios, the model outputs are respectively 1 and 6 notches lower than the base case run. Rating actions taken are based on a consideration of the above scenarios and other factors including the size and quality of the subordination available to the rated tranches. Moody's notes that the ratings of this transaction remain sensitive to the rate of amortization and prepayments. If rapid delivering continues to affect this transaction, assuming that other credit related factors remain stable, the notes ratings are likely to experience further upgrade migration. Except as detailed above for the sensitivity runs, standard asset default probabilities and recovery rates were used in Moody's models. A mean recovery rate of 42.1% was generated for the pool (dependent upon industry sector and domicile of individual reference obligors) and the base case weighted average default probability -- net of stresses- was 1.3%. Under this methodology, Moody's relies on a simulation based framework, implemented via CDOROM2.6TM, to generate default and recovery scenarios for each asset in the portfolio and computes the associated loss to each tranche in the structure. Moody's Investors Service did not receive or take into account a third party due diligence report on the underlying assets or financial instruments related to the monitoring of this transaction in the past 6 months. AMSTEL SECURITIZATION: Moody's Lifts Ratings on Various Notes ------------------------------------------------------------- Moody's Investors Service has upgraded the ratings of notes issued by Amstel Securitization of Contingent Obligations 2006-1 B.V. Issuer: Amstel Securitization of Contingent Obligations 2006-1 B.V. -- EUR518M Class A Notes, Upgraded to Aaa (sf); previously on June 25, 2009 Downgraded to Aa1 (sf) -- EUR70M Class B Notes, Upgraded to Aaa (sf); previously on June 25, 2009 Downgraded to A1 (sf) -- EUR35M Class C Notes, Upgraded to Aaa (sf); previously on June 25, 2009 Downgraded to A3 (sf) -- EUR49M Class D Notes, Upgraded to Aa1 (sf); previously on June 25, 2009 Confirmed at Baa2 (sf) -- EUR70M Class E Notes, Upgraded to A1 (sf); previously on June 25, 2009 Confirmed at Ba2 (sf) Ratings Rationale Moody's said the rating actions are driven by the substantial and ongoing amortization of the underlying pool leading to an enhanced level of subordination for the rated tranches coupled with satisfactory performance of the reference pool. This transaction which closed in December 2006 is a synthetic balance sheet transaction referencing a portfolio of derivatives exposures to largely European, Asian and North American corporates and institutions, originated by ABN Amro (now RBS N.V.). Between April 2010 and September 2010, the pool has amortized by 34% from EUR2,144.1 million to EUR1,421.1 million; the September 2010 portfolio has a WARF of 305 consistent with an implied Moody's rating of Baa2 for the pool. There have been no credit events since closing. For the majority of the underlying referenced assets in the portfolio, the equivalent Moody's ratings used in Moody's analysis are obtained through a mapping process between the originator's internal rating scale and Moody's public rating scale. To compensate for the absence of credit indicators such as ratings reviews and outlooks in mapped ratings, a half notch stress was applied to the mapping scale as a base case. Because this mapping was performed more than two years ago, an additional stress was applied to capture potential deviations from the established mapping. Moody's considered several sensitivity runs on top of this base case. These sensitivity runs include a notching stress scenario to assess the impact of a mapping drift, where Moody's assumed that all names in the portfolio were half a notch lower, a jump to Caa2 scenario where the agency assumed that either of the two largest obligors ratings would move to Caa2. In all these cases, the model outputs are equal or better than the current revised ratings. However, in reaching its ratings decisions, Moody's weighted the fact that tranches D and E remain sensitive to potential losses on the portfolio, as an additional 4% loss on the pool sees a decrease in the model outputs by up to 1 and 3 notches respectively from the base case run. Rating actions taken are based on a consideration of the above scenarios and other factors including the size and quality of the subordination available to the rated tranches. Moody's notes that the ratings of this transaction remain sensitive to the rate of amortisation and prepayments. If rapid delivering continues to affect this transaction, assuming that other credit related factors remain stable, the notes ratings are likely to experience further upgrade migration. Except as detailed above for the sensitivity runs, standard asset default probabilities and recovery rates were used in Moody's models. A mean recovery rate of 32.3% was generated for the pool (dependent upon industry sector and domicile of individual reference obligors) and the base case weighted average default probability -- net of stresses- was 1.76%. Moody's Investors Service did not receive or take into account a third party due diligence report on the underlying assets or financial instruments related to the monitoring of this transaction in the past 6 months. AMSTEL SHER: Moody's Lifts Rating on Class E Notes to 'Ba1 (sf)' ---------------------------------------------------------------- Moody's Investors Service has upgraded the ratings of notes issued by Amstel SHER 2007-1 B.V. Issuer: Amstel SHER 2007-1 B.V. -- EUR75M Class B Notes, Upgraded to Aa1 (sf); previously on May 14, 2007 Definitive Rating Assigned Aa2 (sf) -- EUR115M Class C Notes, Upgraded to Aa2 (sf); previously on May 14, 2007 Definitive Rating Assigned A2 (sf) -- EUR75M Class D Notes, Upgraded to A3 (sf); previously on May 14, 2007 Definitive Rating Assigned Baa2 (sf) -- EUR90M Class E Notes, Upgraded to Ba1 (sf); previously on May 14, 2007 Definitive Rating Assigned Ba2 (sf) Ratings Rationale Moody's said the rating actions are driven by the substantial and ongoing amortization of the underlying pool leading to an enhanced level of subordination for the rated tranches coupled with satisfactory performance of the reference pool. This transaction which closed in May 2007 is a synthetic balance sheet CLO referencing a portfolio of largely European and North American corporate loans originated by ABN Amro (now RBS N.V.). Between April 2010 and August 2010, the pool has amortized by 22.8% from EUR5,066.8 million to EUR3,911.3 million; the August 2010 portfolio has a WARF of 505.3 consistent with an implied rating of Baa3 for the pool. There have been three credit events since closing totalling EUR27.2 million which represent 0.27% of the closing portfolio of EUR10 billion. For the majority of the underlying referenced assets in the portfolio, the equivalent Moody's ratings used in Moody's analysis are obtained through a mapping process between the originator's internal rating scale and Moody's public rating scale. To compensate for the absence of credit indicators such as ratings reviews and outlooks in mapped ratings, a half notch stress was applied to the mapping scale as a base case. Because this mapping was performed more than two years ago, an additional stress was applied to capture potential deviations from the established mapping. Moody's considered several sensitivity runs on top of this base case. These sensitivity runs include a notching stress scenario to assess the impact of a mapping drift, where Moody's assumed that all names in the portfolio were half a notch lower, a potential loss scenario to assess whether an additional 1% loss on the pool would affect the model outputs, and an amortization scenario considering that another 22.8% of the pool would further repay by December 2010. In all these cases, the model outputs are equal or better than the current revised ratings. However, in reaching its ratings decisions, Moody's weighted the fact that tranches C, D and E remain sensitive to a jump to Caa2 scenario where the agency assumed that either of the two largest obligors ratings would move to Caa2. Under these scenarios, the model outputs are respectively 2, 4 and 4 notches lower than the base case run. Rating actions taken are based on a consideration of the above scenarios and other factors including the size and quality of the subordination available to the rated tranches. Moody's notes that the ratings of this transaction remain sensitive to the rate of amortization and prepayments. If rapid delivering continues to affect this transaction, assuming that other credit related factors remain stable, the notes ratings are likely to experience further upgrade migration. Except as detailed above for the sensitivity runs, standard asset default probabilities and recovery rates were used in Moody's model. A mean recovery rate of 38.8% was generated for the pool (dependent upon industry sector and domicile of individual reference obligors) and the base case weighted average default probability -- net of stresses- was 1.95%. Moody's Investors Service did not receive or take into account a third party due diligence report on the underlying assets or financial instruments related to the monitoring of this transaction in the past 6 months. SENSATA TECHNOLOGIES: Posts US$48MM Net Loss in Sept. 30 Quarter ---------------------------------------------------------------- Sensata Technologies B.V. filed its quarterly report on Form 10-Q with the Securities and Exchange Commission, reporting a net loss of US$48.43 million on US$383.29 million of net revenue for the three months ended Sept. 30, 2010, compared with a net loss of US$54.02 million on US$302.47 million of net revenue for the same period a year earlier. The Company's balance sheet at Sept. 30, 2010, showed US$3.25 billion in total assets, US$2.42 billion in total liabilities, and stockholder's equity of US$825.96 million. A full-text copy of the quarterly report on Form 10-Q is available for free at http://ResearchArchives.com/t/s?6cff About Sensata Almelo, Netherlands-based Sensata Technologies B.V. -- http://www.sensata.com/-- supplies sensing, electrical protection, control and power management solutions. Majority- owned by affiliates of Bain Capital Partners, LLC, a leading global private investment firm, and its co-investors, Sensata employs approximately 9,500 people in nine countries. Sensata's products improve safety, efficiency and comfort for millions of people every day in automotive, appliance, aircraft, industrial, military, heavy vehicle, heating, air-conditioning, data, telecommunications, recreational vehicle and marine applications. As reported by the TCR on December 7, 2009, Moody's Investors Service has upgraded Sensata Technologies B.V.'s Corporate Family and Probability of Default ratings to Caa1 from Caa2, as well as the company's senior secured credit facility to B2, senior unsecured notes to Caa2, and senior subordinated notes to Caa3. In a related rating action, Moody's affirmed the Company's Speculative Grade Liquidity rating at SGL-3. The outlook is positive. The TCR on Nov. 4, 2009, said that Standard & Poor's affirmed the ratings on Attleboro, Massachusetts-based Sensata Technologies, Inc., including the 'CCC+' corporate credit rating. At the same time, S&P revised the outlook on the company to stable from negative. Standard & Poor's Ratings Services raised its ratings on sensors and controls manufacturer Sensata Technologies B.V., including the corporate credit rating, to 'B+' from 'B'. The outlook is positive. Moody's Investors Service has upgraded Sensata Technologies B.V.'s Corporate Family and Probability of Default ratings to B2 from B3. In a related action, the company's senior secured credit facility was affirmed B1, senior unsecured notes affirmed Caa1, and senior subordinated notes upgraded to Caa1 from Caa2. Moody's also upgraded the company's Speculative Grade Liquidity rating to SGL-2 from SGL-3. The rating outlook is positive. =========== R U S S I A =========== BANK VOZROZHDENIE: S&P Gives Positive Outlook; Keeps 'B+/B' Rating ------------------------------------------------------------------ Standard & Poor's Ratings Services said that it had revised its outlook on Russia-based Bank Vozrozhdenie to positive from stable. The 'B+/B' counterparty credit ratings and 'ruA+' Russia national scale ratings were affirmed. "The outlook revision reflects S&P's view that Bank Vozrozhdenie's financial profile shows higher-than-expected resilience to its operating environment," said Standard & Poor's credit analyst Ekaterina Trofimova. The bank's funding and liquidity profile and capitalization are adequate and remain positive rating factors, while asset quality has stabilized in S&P's view. Due to its conservative credit management, the bank has shown better-than-expected resilience to the market downturn, with a sustainable funding and liquidity profile, stabilizing asset quality, and an adequate level of capitalization. The bank has a moderate market risk appetite, limited funding reliance on wholesale markets, and below-sector-average single-name concentrations in its loan book. The ratings on the bank continue to reflect its stand-alone credit profile, because S&P does not include any uplift for extraordinary external support. The positive outlook reflects S&P's view that Bank Vozrozhdenie's financial profile could improve gradually over the next quarters, despite significant pressure on profitability. S&P expects asset quality to stabilize, while liquidity and capitalization should remain adequate. "S&P would consider taking a positive rating action if asset quality were to improve and profitability to show an adequate resilience," said Ms. Trofimova. "This also assumes that funding, liquidity, and capitalization would remain adequate and positive rating factors." S&P would consider revising the outlook to stable if its expectations regarding asset quality do not materialize, or if profitability were to deteriorate more than S&P expects. GLOBEXBANK: Fitch Changes Outlook to Stable; Affirms 'BB' Rating ---------------------------------------------------------------- Fitch Ratings has changed the Outlook on Russia-based Globexbank to Stable from Evolving. At the same time, it has affirmed the bank's Long-term foreign currency Issuer Default Rating at 'BB', Support rating at '3' and Individual rating at 'D/E'. The change of Outlook to Stable reflects Fitch's view that a possible sale of GB is now less likely to happen in the near term than previously expected. This reflects the fact that GB's owner, Vnesheconombank ('BBB'/Stable) has approved a new five-year strategy for the bank, and in July 2010 made a further RUB5bn capital injection to support GB's planned rapid growth. Fitch also notes VEB's current intention to sell the bank only after selling the property assets it bought through its subsidiary, VEB-Invest, as part of GB's rescue in 2008. VEB only intends to sell these assets once the market recovers, so that the combined sale of the property assets and the bank would allow VEB to recoup all funds spent on GB's rescue. However, Fitch believes that this may take considerable time. GB's Long-term IDR and Support rating are driven by the potential support the bank could receive, in case of need, from state-owned VEB. Fitch continues to believe that GB does not represent a strategic investment for VEB, given VEB's intention to sell the bank in the long term, and this is reflected in the three-notch difference between VEB and GB's Long-term IDRs. The Individual rating reflects the risks associated with GB's rapid recent and planned growth, high concentration on both sides of the balance sheet and significant exposure to the construction and real estate sectors. The rating also factors in the bank's solid capital position, currently limited loan impairment and comfortable liquidity. GB's loan book increased by 51% in 9M10, having grown by a rapid 323% in 2009. The growth was mainly driven by loans to corporate entities, which represented 97.6% of the loan book at end-H110, and is concentrated by industry and borrower. Exposure to real estate and construction accounted for a significant 28% of total loans. The 20 largest borrowers accounted for 62% of loans or 170% of equity at end-H110, which is a decrease from 89% at end-Q309. Loans more than 90 days overdue were a low 1.4% of total loans at end-H110, with the majority of these from a small legacy retail portfolio (2.4% of loans). However, the low level of NPLs in the corporate portfolio should be viewed in conjunction with the recent rapid growth. The bank's funding is reasonably diversified by source: 63% of total funding at end-H110 was represented by customer funding (almost evenly split between corporate and retail segments), and 18% was funded locally via the issuance of two senior bonds. However, dependence on wholesale funding is likely to increase given the ambitious loan growth plans and limited customer franchise. Highly liquid assets, including cash and short-term interbank placements, accounted for 6% of assets at end-Q310. However, a sizable portion of the securities portfolio could be pledged for refinancing with the Central Bank of Russia. A RUB15bn liquidity facility is also available from VEB. The capital position of the bank is currently solid, with the core capital/total assets and core capital/net loans ratios at 26% and 37%, respectively, at end-H110. However, the bank's strategy envisages a gradual reduction of capital ratios as the loan book grows. The rating actions are: -- Long-term foreign currency IDR: affirmed at 'BB'; Outlook changed to Stable from Evolving -- Long-term local currency IDR: affirmed at 'BB'; Outlook changed to Stable from Evolving -- Short-term foreign currency IDR: affirmed at 'B' -- Support rating: affirmed at '3' -- Individual rating: affirmed at 'D/E' -- National Long-term rating: 'AA-(rus)'; Outlook changed to Stable from Evolving TATTELECOM OJSC: Fitch Upgrades Issuer Default Rating to 'BB-' -------------------------------------------------------------- Fitch Ratings has upgraded OJSC Tattelecom's Long-term foreign currency Issuer Default Rating and senior unsecured foreign currency rating to 'BB-' from ' B+', respectively. Fitch has also affirmed Tattelecom's Short-term foreign currency IDR at 'B'. The Outlook for the Long-term foreign currency IDR is Stable. The upgrade reflects Tattelecom's decreased refinancing risks and leverage. The company managed to reduce its short-term debt to 31% of total debt at end-Q310 from above 60% at end-Q309 and the remaining maturities are evenly distributed by year until end- 2013. Tattelecom's funds from operations adjusted net leverage will likely decrease to below 1.5x at end-2010 from 1.7x at end- 2009 (down from 1.9x at end-2008), due to significantly reduced debt. This leverage would be close to Tattelecom's higher-rated Russian peers. A modest 12% of total debt is foreign currency- denominated. The ratings factor in Tattelecom's strong operating performance and resilient EBITDA generation during the economic downturn. Its EBITDA margin, adjusted for a one-off release of RUB142 million provisions for bad receivables, rose to 41.7% at end-2009 from 39.9% at end-2008 due to reduced costs. Fitch expects this margin to increase to above 42% at end-2010 due to rapid revenue growth (above 10%) driven by broadband, and backed by continuing cost control. In 2009, Tattelecom's free cash flow improved due to capex reduction. However, it remained negative, suppressed by significant negative changes in working capital (reduced payables and deferred income), which are unlikely to recur. FCF would have been positive if adjusted for a one-off purchase of financial assets of RUB330 million. Fitch expects FCF to be strongly positive in 2010 and beyond, with the margin largely depending on capex. Tattelecom's ratings are supported by its strong market position in the fixed-line voice segment (72% by line at end-2009) in the Republic of Tatarstan ('BBB-'/Stable) within the Russian Federation ('BBB'/Positive). Due to the company's extensive "last-mile" network, its market share is likely to remain unrivalled in the medium term, in the absence of local-loop unbundling regulation. Tattelecom is a leader in the regional broadband market, with a 44% residential market share by line, compared with the 30% and 14% of its two closest competitors. The incumbent will likely continue capturing broadband market growth and maintain a solid market share due to its presence in areas not covered by alternative operators' networks, extensive coverage of potential residential subscribers with its ADSL-based offers, and bundling opportunities not available to many competitors. Fitch believes that Tattelecom may improve its competitive edge if it realizes its planned roll-out of fibre network without delays. At end-Q310, Tattelecom's liquidity was sufficient to cover its short-term debt, although it was supported mainly by the next 12 months' positive FCF forecast by Fitch, rather than cash and undrawn credit facilities. Tattelecom's liquidity management is moderately aggressive, as its cash balance is usually insignificant, and the company does not maintain large long-term undrawn credit facilities. Tattelecom prefers to procure new external funding, if needed to repay or refinance existing debt, closer to maturity (around three months before a due date). However, the company has substantial capex flexibility and may postpone part of its capex if necessary to support liquidity, without materially affecting its operating profile. Tattelecom's ratings are suppressed by its small scale of business, which makes it potentially vulnerable to competition or acquisition by larger federal players, and limits the company's access to international debt markets. Although 87.2% of Tattelecom is held by the Tatarstan government- controlled holding company OJSC Svyazinvestneftekhim ('BBB-'/Stable), it is rated on a standalone basis due to weak operational and financial ties with SINEK. However, Fitch considers it likely that SINEK would provide Tattelecom with liquidity or lobbying support if necessary. TRANSCREDITBANK: Moody's Assigns (P)'Ba1' Rating to Senior Debt --------------------------------------------------------------- Moody's Investors Service has assigned (P) Ba1/(P) Not-Prime long- and short-term foreign currency and global local currency senior debt ratings, and (P) Ba2 long-term foreign and local currency subordinated debt ratings to the US$2 billion notes program of TransCreditBank for the issuance of loan participation notes through Transcredit Finance Plc -- the Ireland-based special purpose vehicle. The notes to be issued on a limited recourse basis for the sole purpose of financing senior unsecured and subordinated loans to TCB. The rating outlook is stable. Ratings Rationale Moody's says that the (P) Ba1 rating assigned to the senior notes to be issued under the program is based on the fundamental credit quality of the underlying obligor, TCB, rated Ba1/Not Prime/D- (stable outlook). The assigned rating reflects the status of the bank's obligations under the senior loan received from Transcredit Finance Plc that will rank at least pari passu in right of payment with all other unsecured and unsubordinated obligations of TCB, except as otherwise provided by mandatory provisions of applicable law. Therefore the assigned (P) Ba1 senior rating is in line with TCB's global foreign currency debt rating of Ba1, which is, in turn, based on (i) the bank's D- BFSR (mapping to a Baseline Credit Assessment (BCA) of Ba3); and (ii) Moody's assessment of a high probability of support in the event of need from the bank's controlling shareholder -- Russian Railways (RR, rated Baa1, stable outlook) -- which results in a two-notch uplift from TCB's BCA of Ba3. TCB's D- BFSR is underpinned by (i) its solid franchise which is supported by its relationship with RR, a state railroad monopoly, (ii) its good brand recognition, (iii) reasonable liquidity management supported by good access to funding sources and (iv) reasonable financial indicators demonstrating some resilience to crisis events. At the same time, TCB's BFSR is constrained by (i) still insufficient diversification of the client base and the resulting high dependence on a single client/industry/related party -- resulting in significant concentration levels on the asset and liabilities side, (ii) significant dependence on strategic priorities of RR in its longer-term development, and (iii) potential corporate governance issues stemming from potential ability of RR to influence business decisions. TCB's Ba1 Global Local Currency (GLC) deposit rating is based on Moody's assessment of high probability of support from RR in the event of need, given RR's controlling ownership of TCB and the company's importance for TCB's operations. The (P) Ba2 rating for subordinated notes, which is notched down one notch from TCB's (P) Ba1 senior unsecured debt rating, takes into account the extent of the notes' subordination against various classes of debt and equity, and associated differences in expected loss in case of default. Moody's states that if TCB were to issue notes containing features enhancing its subordination and/or debts with other special features, the ratings will be assessed individually and may not correspond to the ratings currently assigned to the program. Headquartered in Moscow, Russia, TransCreditBank reported total (audited) assets of RUB258 billion (US$8.6 billion) and net income of RUB4 billion according to IFRS at YE2009. ========= S P A I N ========= CAJA SAN FERNANDO: S&P Affirms Ratings on Five Classes of Notes --------------------------------------------------------------- Standard & Poor's Rating Services affirmed its credit ratings on all notes in Caja San Fernando CDO I Fondo de Titulizacion de Activos. The rating actions follow S&P's assessment of the credit quality of the underlying portfolio, which comprises primarily 2002 and 2003 vintage U.S. collateralized debt obligations of asset-backed securities. S&P's analysis shows that the credit quality of the underlying portfolio remains largely unchanged since its last review, with about 48.0% of the portfolio currently rated 'CC' or 'D' (compared with 47.6% in June 2010). In addition, a further 10% of the portfolio ($8.5 million) is currently rated within the 'CCC' rating category ('CCC+', 'CCC', or 'CCC-') compared with $10.5 million in June 2010). According to S&P's analysis, the balance of assets rated above 'CC' currently covers the outstanding principal amount of the class A1 notes, while par coverage on the class A2 notes continues to depend on recoveries from assets currently in default. In S&P's view, interest proceeds from the portfolio appear to be sufficient to make timely payments of interest on the class A1 and A2 notes. However, in S&P's opinion, there continues to be an increased risk of shortfalls in principal on the class A2 notes if recoveries on defaulted assets are lower than S&P previously anticipated. S&P has therefore affirmed the 'CCC- (sf)' ratings on the class A1 and A2 notes. S&P has affirmed the 'CC (sf)' ratings on the class B, C, and D notes, as S&P continue to believe that the probability of ultimate repayment of principal is highly unlikely. Interest payments on these notes have continued to be deferred as a result of the breach of the overcollateralization ratio test. According to the latest available payment date report of August 2010, the result of the overcollateralization ratio test continues to be significantly below 100%. Ratings List Caja San Fernando CDO I Fondo de Titulizacion de Activos US$171 Million Fixed- and Floating-Rate Notes Series Ratings Affirmed Class Rating ----- ------ A1 CCC- (sf) A2 CCC- (sf) B CC (sf) C CC (sf) D CC (sf) GRIFOLS SA: S&P Affirms 'BB-' Long-Term Corporate Credit Rating --------------------------------------------------------------- Standard & Poor's Ratings Services said that it has affirmed its preliminary 'BB-' long-term corporate credit rating on Spanish health care company Grifols S.A. The outlook is positive. At the same time, S&P affirmed its preliminary 'BB' debt rating on Grifols' proposed senior secured bank facility and its preliminary recovery rating of '2' on this instrument, reflecting its view of substantial (70%-90%) recovery in the event of a payment default. In addition, S&P affirmed its preliminary 'B' debt rating on the company's proposed unsecured bridge facility and its preliminary recovery rating of '6' on this instrument, indicating its expectation of negligible (0%-10%) recovery in the event of a payment default. Final ratings will depend upon receipt and satisfactory review of all final transaction documentation. Accordingly, the preliminary ratings should not be construed as evidence of final ratings. If Standard & Poor's does not receive final documentation within a reasonable time frame, or if final documentation departs from materials reviewed, Standard & Poor's reserves the right to withdraw or revise its ratings. "The ratings on Grifols continue to reflect S&P's view that the company's financial risk profile is 'aggressive', specifically given its relatively high leverage following the proposed acquisition of U.S.-based biopharmaceuticals company Talecris Biotherapeutics Inc. in June 2010," said Standard & Poor's credit analyst Florence Devevey. The combined company's ability, in S&P's opinion, to generate sufficient free cash flow to reduce its debt quickly is a mitigating factor, however. The ratings also continue to reflect S&P's assessment of Grifols' business risk profile as "satisfactory." "This is supported by Grifols' position as the world's third- largest producer of plasma protein therapies following the Talecris acquisition," said Ms. Devevey. S&P views plasma fractionation as a niche sector that benefits from high barriers to entry, good long-term growth prospects, and relatively strong profitability. Offsetting these positive factors are S&P's perception of the risk of Grifols' revenue concentration in three main plasma-derived proteins, the inherent industry risk of potential product contamination liabilities, and uncertainties related to the potential impact of supply-demand imbalances on product pricing. S&P understands that the regulatory approval from the U.S. Federal Trade Commission for Grifols' acquisition of Talecris is in advanced stages, but is still pending. Final ratings will be subject to the successful closing of the proposed transaction and, in particular, to the company's receipt of regulatory approval for the acquisition. The positive outlook reflects S&P's view of Grifols' sound position in the consolidated and growing plasma fractionation market. "It also reflects the possibility of an upgrade if the combined group is able to generate sufficient cash flow and improve its leverage to levels S&P views as commensurate with a 'BB' rating-- defined as a ratio of Standard & Poor's-adjusted debt to EBITDA sustainably lower than 4x--over the 15 months following closing of the acquisition," said Ms. Devevey. S&P could consider revising the outlook to stable or taking a negative rating action if Grifols' deleveraging is delayed due to deterioration in the company's operating performance or financial policy. * SPAIN: Commercial Bankers Criticize Slow Caja Reform ------------------------------------------------------ Victor Mallet at The Financial Times reports that Spanish commercial bankers have publicly attacked the slow pace of reform among the country's unlisted savings banks, arguing that the cajas are using billions of euros of public restructuring funds to compete unfairly. The FT relates Emilio Botin, chairman of Santander, the eurozone's largest bank by market capitalization, led the charge with a speech to business leaders this week criticizing the "inadequate" speed of restructuring at the cajas and calling for more concrete plans that would cut capacity and improve margins. The FT notes on Wednesday, Angel Cano, chief executive of BBVA, Spain's second-biggest listed bank, made a similar complaint and called for the restructuring to be completed so that bankers could begin 2011 "with equal conditions and on a level playing field". Spanish lenders have seen their interest margins squeezed by the combination of low mortgage lending rates and a price war for retail deposits because of the difficulty of raising wholesale finance, the FT states. Mr. Cano specifically criticized the deposit rates of up to 4.75% offered by some cajas, arguing that such campaigns were bound to generate losses that were unacceptable for institutions receiving public aid, the FT relates. For weeks, bankers have privately criticized the weaker cajas for embarking on formal mergers without tackling the need to cut staff and close branches in order to reduce costs, but this is the first time they have spoken in public, the FT recounts. The original 45 cajas have been reduced to 18 holding groups with the help of nearly EUR11 billion (US$15 billion) of aid from the Fund for Orderly Bank Restructuring and EUR3.8 billion from a deposit guarantee fund, but bankers say the Bank of Spain is now demanding a "second round" of reforms to complete the process, the FT discloses. =========== S W E D E N =========== STENA AB: Moody's Downgrades Corporate Family Rating to 'Ba2' ------------------------------------------------------------- Moody's Investors Service has downgraded Stena AB's Corporate Family Rating and Probability-of default-rating to Ba2 from Ba1. At the same time, Moody's has downgraded the rating for Stena's senior unsecured rating to Ba3 from Ba2. Moody's has changed the outlook on the ratings to stable from negative. Ratings Rationale The downgrade reflects Moody's view that the group is unlikely to reach a consolidated financial profile over the medium term that would be commensurate with the guidance previously outlined for maintaining a Ba1 rating. "The combined effect of higher-than-anticipated capital investment spending for the period 2008/12 and the current recessionary environment, which is taking a toll on some of the company's activities -- notably Ferry and Tankers -- delaying the recovery of their performance, is slowing the de-leveraging process of the group; therefore, Moody's believes that Stena is no longer able to reach and maintain credit metrics commensurate with a Ba1 rating over the intermediate term," says Marco Vetulli, a Vice President in Moody's Corporate Finance Group and lead analyst for the company. Moody's had previously indicated that it expected the company to maintain its operating profile and improve its credit metrics on a sustainable basis, with EBIT interest coverage over 2x and debt to EBITDA below 5x at consolidated level by FYE2010, and debt to EBITDA below 4.5x at the restricted group level. "Moody's expects that Stena will close the current year with a higher-than-anticipated leverage that the rating agency anticipates to be close to 6x, which is significantly above the target levels for the Ba1 rating category," explains Mr. Vetulli. The stable outlook reflects Moody's view that, despite the current performance, Moody's expect an improvement of Stena's credit metrics as Moody's get closer to 2011. "Moody's believes that Stena's business profile and market position remain solid, thanks to both the increasing share of contracted activities in drilling and the stable contribution of its real estate portfolio. Furthermore, its good liquidity and balanced financial policies will provide the Swedish group with the financial flexibility needed to offset negative economic pressure resulting from the current downturn," adds Mr. Vetulli. Upward pressure on Stena's ratings could develop following a sustainable increase in internal cash flow generation, with a retained cash flow/net debt ratio approaching the high teens; and a progressive de-leveraging of the group's balance sheet, with a total debt/EBITDA ratio of below 4.5x. The ratings could be adjusted downwards if there is a significant decline in Stena's revenues as a result of weaker-than-expected market conditions, which could constrain the group's ability to achieve, over financial year 2011 and on a sustainable basis: (i) EBIT interest coverage approaching 2.0x and a total debt/EBITDA ratio trending towards 5.5x at the consolidated level; and (ii) a total debt/EBITDA ratio toward 5x and an RCF/net debt ratio approaching the mid-teens at the restricted group level. Downward rating pressure could also result from the group developing an increased appetite for risk in its trading activities and failure to generate positive Free Cash Flow after 2011.Moreover, Moody's cautions that if the deterioration in the drilling sector were to be more severe than expected, Stena's outlook and rating could be affected. The last rating action was implemented on 9 March 2010, when Moody's assigned a provisional P(Ba2) senior unsecured rating to a proposed EUR150 million bond issuance. Headquartered in Gothenburg, Sweden, Stena AB is one of the largest entities within the "Stena Sphere" of companies, fully controlled by the Olsson Family. Stena AB is a holding company engaged in different business divisions, including Ferry operations, Shipping, Offshore Drilling, Real Estate and Other investment activities. In FY2009, it recorded revenues around SEK28 billion. ============= U K R A I N E ============= PIVDENNYI BANK: Moody's Gives Stable Outlook on 'B2' Rating ----------------------------------------------------------- Moody's Investors Service has changed the outlook on Pivdennyi Bank's B2 long-term local currency debt and deposit ratings to stable from negative. The bank financial strength rating of E+, B3 long-term foreign currency deposit rating, Not-Prime short-term local and foreign currency deposit ratings already carried a stable outlook. Ratings Rationale "Pivdennyi Bank has preserved its pre-provision income over the last several quarters at a level, which currently enables it to withstand asset quality problems without a significant negative impact on capitalization, with total capital accounting for over 12% of the bank's assets in accordance with IFRS as of H1 2010" says Ms. Elena Redko, the lead analyst for the bank. "In addition, deterioration of asset quality was less severe than previously anticipated by Moody's. Loans 90+ days overdue stood at a modest compared to Ukrainian peers 4.5% of the loan portfolio as at June 30, 2010," adds Ms. Redko. Moody's notes that the key rating constraints on Pivdennyi Bank's E+ BFSR are represented by (i) high single-name concentration of the loan book with top-20 credit exposures ranging from 250% to 300% of the bank's Tier 1 capital, (ii) a narrow system-wide franchise, and (iii) still challenging credit conditions in Ukraine. At the same time, the current ratings reflect Pivdennyi Bank's strong franchise in its home market in the Odessa region of Southern Ukraine, a sizeable corporate and retail client base supported by region-wide coverage, as well as good financial fundamentals Moody's previous rating action on Pivdennyi Bank was on May 12, 2009 when Moody's downgraded the global foreign currency deposit rating from B2 to B3 with negative outlook, which was prompted by the downgrade of Ukraine's foreign currency bank deposit ceiling to B3 with negative outlook. Headquartered in Odessa, Ukraine, Pivdennyi Ban k reported -- at June 30, 2010 -- total consolidated reviewed IFRS assets of UAH11.8 billion (US$1.5 billion) and net IFRS income profit of UAH53 million (US$6.7 million). =========================== U N I T E D K I N G D O M =========================== ALTERNATIVE HOTEL: Lloyds to Give Incentives for DeVere Turnaround ------------------------------------------------------------------ Richard Tyler at The Daily Telegraph reports that Lloyds Banking Group has handed the senior executives of the De Vere hotel chain GBP67.3 million in incentives to turn the debt laden group's fortunes around. According to The Daily Telegraph, chief executive Richard Balfour- Lynn and finance director Jagtar Singh are members of partnerships that have been allocated GBP57.5 million in shares while part-time Chairman Andrew Coppel is in line for a GBP9.8 million pay out. It is understood they will only achieve the full bonus if the manage to grow the group's value by GBP700 million to GBP1.9 billion and give its main shareholder, Lloyd's subsidiary Bank of Scotland (BOS), the chance to exit from its investment within four years, either via a trade sale or initial public offering, The Daily Telegraph notes. De Vere's parent the Alternative Hotel Group is jointly owned by BOS and AHG Management Services following a GBP650 million debt for equity swap on March 8, The Daily Telegraph discloses. The Daily Telegraph relates a spokesman for AHG, which employs 11,350 people and includes the Malmaison and Hotel Du Vin chains, The Grand in Brighton, and Liberty of London department store, said the GBP67.3 million was the "maximum pay out". "If the bank recovers the significant sums of money that are set out under the terms of the restructuring the management will be rewarded accordingly," The Daily Telegraph quoted the spokesman as saying. It is understood that the first payment would be triggered only when BoS's investment in the company returned to break even, The Daily Telegraph states. AHG revealed turnover of GBP76 million in those two months generated a GBP47 million pre-tax loss after the company closed out GBP25 million of interest rate swaps and debt issue costs, The Daily Telegraph notes. The debt restructuring reduced its interest payments from GBP98.1 million in 2009 to GBP54 million this year, The Daily Telegraph discloses. Based in London, United Kingdom, Alternative Hotel Group Ltd. is a hotel and conference center operator. AHG owns properties such as Cameron House in Scotland and Slaley Hall in Northumberland through its De Vere chain. It also owns Village Hotels & Leisure Clubs and the Greens gym chain. CHARLTON CARE HOMES: Goes Into Administration --------------------------------------------- Charlton Care Homes has gone into administration, throwing a question mark over the future of 120 employees and 90 current residents, Scunthorpe Telegraph reports. The report relates that the company called in the administrators after experiencing cash flow problems due to low occupancy levels. According to Scunthorpe Telegraph, the move comes two years after Charlton bought the leases on The Willows at Barton-Upon-Humber, and Cherry Tree and Warley Houses in Scunthorpe from a local company called Barton Medical Services. Administrator KPMG, the report notes, is now working with Birmingham-based care home management firm Healthcare Management Solutions to keep the sites in Scunthorpe and Barton trading until a buyer is found. According to Scunthorpe Telegraph, Ian Corfield, joint administrator and KPMG restructuring director, said: "All the care homes will be trading as usual while we market the businesses for sale." The report relates Mr. Corfield said last year the Charlton Group reported a turnover of GBP4.8 million. Mr. Corfield added: "The business has experienced cash flow difficulties due to low occupancy levels in some of the homes in its portfolio. But we believe the care home sector's strong long- term prospects mean Charlton Care Homes could be an attractive acquisition opportunity." Scunthorpe Telegraph notes that there have already been a number of expressions of interest but due to commercial confidentiality the administrators have declined to give further details. Mr. Corfield, the report discloses, said that the current debt levels of the home operators would become clearer when the company directors provided their statement of affairs which was expected in the near future. "The administrators will explore any form of sale that will maximise the return to creditors so we will look at expressions of interest for the full portfolio of homes or individual homes," he added. Middlesex-based firm Charlton Care Homes operates three care homes in North Lincolnshire. The company owns four other sites in Leeds and Bristol. FIRST CALL: Goes Into Liquidation After Major Customer Moved ------------------------------------------------------------ First Call Logistics has entered liquidation after its biggest customer moved its business to the Midlands, Chris Tindall at roadtransport.com reports. Liquidator Robert Day, appointed to the firm on October 15, said he believes the company would still be trading if it had not lost the electrical supplies delivery contract, roadtransport.com relates. According to roadtransport.com, Mr. Day said another business, First Call (Heathrow), which shares the same address, director and transport manager, is not affected by the liquidation. Mr. Day said the debts are thought to be GBP62,000, split between five creditors, the report adds. Staines-based First Call Logistics operates a haulage business. The company had an O-licence for 10 vehicles and two trailers. LEISURE & GAMING: Forced Into Administration -------------------------------------------- Leisure & Gaming has been placed into administration with its principal asset, Betshop Group (Europe) Ltd (BSG) sold as a going concern to Honeymead Services for EUR1 million, less than a fifth of the price it had previously agreed with Pefaco earlier this month, egrmagazine reports. According to the report, LNG had failed to agree terms with Spain's Grupo Pefaco for the sale of its gaming subsidiary BSG in a deal worth up to EUR5.3 million, however the sale fell through after the terms of exclusivity with Pefaco expired without renewal. The report notes that LNG's directors were then forced to call on joint administrators Philip Watkins and Geoff Rowley of FRP Advisory placing the company into administration and agreeing to sell BSG to Honeymead, a company controlled by a syndicate of investors including Gabriel Chaleplis, a director of BSG. The report relates that selling BSG as a going concern has safeguarded the jobs of more than 600 agents and employees in Italy, Greece, Cyprus and the UK. LNG originally said it would sell BSG in July this year, the report adds. Egrmagazine discloses a LNG statement said that FRP Advisory was employed by LNG on October 12, 2010, and initially contacted 13 "potentially interested parties" and five turnaround funds, with a deadline to receive offers for BSG by October 14, 2010, with a view to completing both due diligence and a transaction by the beginning of last week. The report relates that statement read that the group's cash position was "critical," requiring an injection of around EUR3 million, including EUR1.5 million as working capital into BSG, EUR0.5 million into the company to "deal with immediate creditors" and EUR1 million to the bank that had issued demand for repayment. It also revealed that it incurred EUR450,000 of sports betting losses in a single week earlier this month "further compounding the cash position in BSG", the report notes. The report notes that four offers were then received including the acquisition of an intercompany loan of EUR0.9 million due from BSG to LNG. Trading in LNG shares was suspended on London's AIM market on May 21 this year after Betshop business was hit by poor sports betting margins arising from the consistent success of the dominant football teams across Europe since the start of the year, the report adds. Leisure and Gaming plc is a holding company with major assents in the global interactive betting and gaming industry. Its interests span from software development to marketing. MAYPOLE GROUP: Joint Administrators Appointed --------------------------------------------- Matt Eley at The Publican reports that Baker Tilly Restructuring and Recovery has been appointed as administrators of Maypole Group plc after it has gone into administration. According to the report, Simon Bower and Bruce Mackay, partners at Baker Tilly Restructuring and Recovery LLP, have been appointed joint administrators of the company. The report notes Mr. Bower said: "Having an established stable of distinctive pub hotels providing great quality, locally sourced food, the prospects for selling the group remain strong and a number of parties have already come forward. All the group's venues remain open for business as usual and we encourage customers to continue to take advantage of all facilities provided." The report notes that the company's latest financial results for the six months to June this year indicated group sales were down 7.6% and the company was operating with a loss of GBP118,350. The report relates that the statement also showed the company's debt was up from GBP7.7 million in 2009 to GBP8.6 million. Maypole Group plc was founded in November 2003, with the intention of being an acquisition vehicle for UK countryside hotels with restaurants or pubs attached. PARAMOUNT PRINT: Falls Into Administration; Cuts 35 Jobs -------------------------------------------------------- PrintWeek reports that Paramount Print Group has fallen into administration with half of the GBP7.5 million-turnover company's staff made redundant. Matthew Dunham and Les Ross of Grant Thornton were appointed to the company on October 25, 2010. According to the report, Mr. Dunham said that around 30 of the 65 employees remain at the company's Manchester site completing work in progress. The report relates Mr. Dunham said: "A sale of the business has not been agreed but we are in discussions with a number of interested parties. Mr. Dunham, the report notes, said that the company had a turnover of around GBP7.5 million, but no results had been filed because "it was an amalgamation of several businesses". Paramount Print, the report relates, bought fellow Manchester printer Qualitech out of administration in August 2009, and Dunham said that the company had struggled ever since. "Since buying Qualitech, Paramount has had a problem getting credit from the paper suppliers. It just reached a point where the business ran out of cash, it is a very tough market out there," the report quoted Mr. Dunham as saying. Paramount Print Group in Manchester is unconnected to Paramount Printers in Edinburgh. PULSE MEDIA: Goes Into Administration ------------------------------------- Pulse Media has gone into administration. According to The BusinessDesk, Andrew Poxon and John Titley of the Bury-based accountancy firm Leonard Curtis have been appointed joint administrators at the business. Pulse Media is a Stockport company that specializes in designing packaging for consumer goods. The company has offices in Heaton Mersey and Slough, Berkshire. SPECIALITY RETAIL: Acquired by GA Europe; Goes Into Administration ------------------------------------------------------------------ Speciality Retail Group has been bought by restructuring specialists GA Europe and put into administration, Property Week reports. According to the report, Zolfo Cooper has been appointed administrator. The report relates that SRG entered a Company Voluntary Arrangement earlier this year, carried out by KPMG. However, the report relates, its approval was linked to a significant improvement in trading for the business. But trading had not improved and it is thought GA Europe will begin a "closing down sale" process across the stores, the report discloses. It is thought it has paid GBP3.25 million for the business, the report adds. Speciality Retail Group is a clothing retailer. The company owns brands such as Suits You and Racing Green. It employs approximately 300 people and has a portfolio of 71 stores across the United Kingdom. XL LEISURE: Goes Into Administration ------------------------------------ XL Leisure Group has gone into administration. According to MarketWatch, the company blamed volatile fuel prices and the economic downturn. The report relates that a statement on the company's Web site said that all flights have been cancelled and all its aircraft grounded. XL Leisure Group is a United Kingdom travel company. =============== X X X X X X X X =============== * BOOK REVIEW: Fraudulent Conveyances, A Treatise Upon Conveyances Made by Debtors to Defraud Creditors, Containing References to All Cases Both English and American, A Law Classic ---------------------------------------------------------------- Author: Orlando F. Bump Publisher: Beard Books, Washington, D.C. 2000 (reprint of book first published in 1872 by Orlando F. Bump). 657 pages. US$34.95 trade paper, ISBN 1-893122-78-6. The book is a legal classic for adding American law on fraudulent conveyances up to the 1870s when it first appeared to English law going back much further; which in turn grew out of Roman law. Mr. Bump's first chapter on the history of such law will be of interest to readers looking for this perspective; though the large bulk of the content is a meticulous, lawyerly organization and expounding of the many facets of the law on fraudulent conveyances as this has formed over centuries. As Mr. Bump notes, this area of law has a larger number of "opposing authorities . . . than can be found in any other branch of the law." In order to keep the treatment as simple as possible while still being true to its many facets and opposing authorities and relevant to legal practice of readers for whom it is intended, the author takes fraudulent conveyances as a part of common law. "This work simply considers the subject as it was at common law with the remedies afforded by the common law." Mr. Bump's treatment thus does not go into criminal law or law with reference to statutes. Though statutes regarding fraudulent conveyances have been passed in each state, these statutes have basically copied Elizabethan Anglo-Saxon law and have "always been considered as merely declaratory of the common law." Since there is thus no wide or radical difference between common law and state statutes concerning fraudulent conveyance, nearly all of Mr. Bump's work bears as well on law associated with the statutes. He brings this up in the work's Preface so readers will understand the framework by which he treats the subject. In the regular text, Bump does not take up state fraudulent conveyance statutes except where ones vary from the common law "to warn the practitioner [reader] that the text is not applicable to his particular State." The author does not however discuss grounds for this variance between a state's statutes and common law. Mr. Bump begins the voluminous study with definitions at the foundation of fraudulent conveyance. Fraudulent conveyances are all transfers made "to the end, purpose, and intent to delay, hinder, or defraud creditors." Whether a conveyance to a creditor is fraudulent is determined by the three "points" (as the author calls them) of intent, the consideration, and the bona fides of the transfer. Consideration generally refers to the right of the debtor to use certain property or other assets to settle a debt. Bona fide means that the debtor was not given the property, loan, etc., fraudulently by the creditor. From the basics of the definitions, Mr. Bump moves on to the many facets of this area of law dealing with circumstances in all types of human relationships. Not only business dealings, but transactions establishing a debtor-creditor relationship between members of a family, neighbors, governments, and just about any two legally recognized parties are covered by the law of fraudulent conveyances. Subsequent creditors, ambiguous contracts, and determining the value of property to pay debts are all factors bringing complications to such law which Mr. Bump systematically takes up. Though the book was written in the mid latter 1800s, since the basics of the law of fraudulent conveyances have not changed much since then -- or from when such law was formulated for that matter -- Mr. Bump's work remains relevant and educating for anyone from lawyers to businesspersons to lay persons interested in the topic. A detailed index running close to 50 pages takes readers to specific topics of this involved legal subject. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than US$3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/booksto order any title today. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Valerie U. Pascual, Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante, 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 * * *