/raid1/www/Hosts/bankrupt/TCREUR_Public/101209.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
Thursday, December 9, 2010, Vol. 11, No. 243
Headlines
A U S T R I A
A-TEC INDUSTRIES: Supervisory Board Seeks Successor for CEO
F R A N C E
NEXANS SA: S&P Affirms 'BB+' Long-Term Corporate Credit Rating
G E R M A N Y
HAPAG-LLOYD AG: Owners to Launch Initial Public Offering
TUI AG: To Launch Initial Public Offering for Hapag-Lloyd
I R E L A N D
ANGLO IRISH: To Push Through with Quinn Insurance Takeover Plans
ANGLO IRISH: To Commence Merger Talks with Irish Nationwide
ANGLO IRISH: Ex-Chief Quizzed Over Assets in US Bankruptcy Court
CELF LOAN: S&P Raises Rating on Class D Notes to 'B (sf)'
IRISH NATIONWIDE: To Commence Merger Talks with Anglo Irish Bank
QUINN INSURANCE: Anglo to Push Through with Takeover Plans
I T A L Y
ALITALIA SPA: Investors Can Swap Stocks for Government Bonds
K A Z A K H S T A N
BTA BANK: Former Head's Assets Subject to Receivership Order
EURASIAN BANK: Fitch Affirms 'B-' Long-Term Issuer Default Rating
L U X E M B O U R G
INTELSAT SA: Seeks FCC Nod to Transfer Licenses for Reorganization
R U S S I A
BALTIYSKIY BANK: Moody's Cuts Financial Strength Rating to 'E'
WIMM-BILL-DANN FOODS: Moody's Reviews 'Ba3' Corp. Family Rating
S P A I N
PRIVATE MEDIA: Posts EUR2.6 Million Net Loss in Q3 2010
U N I T E D K I N G D O M
ARGYLE FOOTBALL CLUB: Fails to Pay GBP700,000 Tax
BALLS BROTHERS: Administrators Tap TLT Solicitors
CROWN CURRENCY: Police Arrests 2 Suspects in Firm Probe
EQUINOX PLC: Fitch Downgrades Ratings on Two Tranches to 'Csf'
EUROPEAN DIRECTORIES: Reorganizes Under Pre-Arranged Plan
LOCKS HEATH: New River Retail Acquires Shopping Center
MRS DISTRIBUTION: Deficiency Tops GBP20 Million Mark
OEM PLC: To Appoint UHY Hacker Young to Draw Up CVA Proposal
PUNCH TAVERNS: Securitized Loans Default is Best Alternative
SOUTHERN CROSS: Future Remains Uncertain Following Losses
UNIWELL SYSTEMS: Ceases Trading, May Go Into Administration
X X X X X X X X
* EUROPE: Banks Face New Round of Stress-Tests in February
* Upcoming Meetings, Conferences and Seminars
*********
=============
A U S T R I A
=============
A-TEC INDUSTRIES: Supervisory Board Seeks Successor for CEO
-----------------------------------------------------------
Zoe Schneeweiss at Bloomberg News relates that Austria Press
Agency reported, citing Hans-Georg Kantner, the spokesman of A-Tec
Industries AG's creditor committee, that the company's supervisory
board is looking for a successor for Chief Executive Officer Mirko
Kovats.
According to Bloomberg, APA said Mr. Kantner, a representative of
credit protection association Kreditschutzverband von 1870,
expects a restructuring offer to the company's shareholders
"shortly before Christmas."
Bloomberg further relates that Mr. Kantner, as cited by APA, said
the debt quota offered to the creditors will be more important
than who heads the company.
On Oct. 22, 2010, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported that 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.
===========
F R A N C E
===========
NEXANS SA: S&P Affirms 'BB+' Long-Term Corporate Credit Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it has affirmed its
'BB+' long-term and 'B' short-term corporate credit ratings on
French cable manufacturer Nexans S.A. At the same time, the long-
term rating was removed from CreditWatch, where it was placed with
negative implications on Oct. 21, 2010. The outlook is stable.
"The affirmation and CreditWatch removal reflect Nexans' decision
not to submit a final offer for the purchase of all of the
outstanding ordinary shares of Dutch cable manufacturer Draka
Holding N.V.," said Standard & Poor's credit analyst Barbara
Castellano. "In S&P's opinion, this removes the risk of a
weakening of Nexans' financial risk profile as a consequence of
the significant cash outflow related to the purchase."
In the first half of 2010, Nexans was hit by weak demand in
several sectors, which led to an organic sales decrease (at
constant metals prices) of about 5.3% year on year. Moreover, in
the company's largest segment, energy and infrastructure, bad
weather dampened activity at the beginning of the year. In
addition, in the submarine cable subdivision, Nexans set aside a
EUR20 million provision due to execution issues. As a result, the
company's reported EBIT declined to EUR83 million in the first
half, from EUR110 million in the first half of 2009; this gives a
reported margin of 4.0%, compared with 5.3% in the same period of
2009. However, for the third quarter of the year, for which
Nexans reported only its sales, organic growth was positive by
2.8% compared with the same period of 2009, boosted by the
industry segment, while the energy and infrastructure segment
remained in the red, with an organic decrease of about 4%.
"The stable outlook reflects S&P's view that Nexans should be able
to manage the effects of the economic downturn over the short
term," said Ms. Castellano.
For 2010, S&P estimates that free operating cash flow to adjusted
debt will probably be negative. However, S&P anticipates that
adjusted debt-to-capital will remain below 40%. S&P believes that
FOCF will recover to about 10% of adjusted debt in 2011, and that
the company will likely maintain FFO to debt of 20%-25% over the
cycle.
S&P could lower the long-term rating if there is evidence in the
next few months that Nexans' operating performance is weakening,
or if the company's financial measures deteriorate due to what S&P
would consider to be an overly generous financial policy.
S&P could raise the ratings if Nexans continues to expand its
operations in the stable and profitable cables business, reduce
volatility in operating profit and cash generation, and increase
profitability on a sustainable basis.
At this stage, due to the lack of certainty regarding the outcome
of the European antitrust investigation into Nexans' high-voltage
cable operations, S&P considers the investigation to constitute an
event risk and therefore do not factor it into the ratings.
=============
G E R M A N Y
=============
HAPAG-LLOYD AG: Owners to Launch Initial Public Offering
--------------------------------------------------------
Robert Wright at The Financial Times reports that the owners of
Hapag-Lloyd AG confirmed on Tuesday that they are planning to
launch an initial public offering for the company, barely a year
after it sought government help to survive.
The FT relates that TUI AG and the Albert Ballin consortium said
they had appointed Credit Suisse, Goldman Sachs and Greenhill to
advise them on the potential public listing of Hapag-Lloyd,
Germany's largest container carrier.
According to the FT, the listing would allow TUI, which has long
said it intends to withdraw from container shipping, to reduce its
shareholding. It would also potentially allow a realignment of
shareholdings within members of the Albert Ballin consortium,
assembled in 2008 to prevent the line from being taken over by
Singapore's Neptune Orient Lines, the FT says.
Any listing is likely to be in Frankfurt, the FT notes.
Following the conversion of a complex series of hybrid instruments
created during the 2008 sale of a stake in Hapag-Lloyd to Albert
Ballin, the consortium at the end of this year will control 50.2%
of the shares, the FT states. TUI holds the remainder, the FT
discloses.
At the height of the container shipping crisis in October last
year, Hapag-Lloyd received a EUR1.2 billion (US$1.6 billion) loan
guarantee from the German government to ensure its survival, the
FT recounts. At the same time, shareholders were forced to inject
EUR750 million in fresh capital into the group, the FT relates.
As reported by the Troubled Company Reporter-Europe on Dec. 1,
2010, Bloomberg News said TUI wants to dispose of its stake in
Hapag-Lloyd to focus on tourism.
About TUI
TUI AG -- http://www.tui-group.com/en/-- is a Germany-based
company mainly engaged in the tourism sector, focusing on the
markets of Central, Northern and Western Europe. TUI owns a
network of travel agencies and tour operators, including air
tours, Thomson, First Choice and TUI Deutschland. It also
operates several airlines, including Corsairfly, Thomsonfly and
First Choice Airways, among others. The Company is structured
into three segments: TUI Travel, TUI Hotels and Resorts, and
Cruises. TUI Travel comprises the Company's distribution, tour
operating, airline and incoming activities and services over 30
million customers in 180 countries. The TUI Hotels and Resorts
division offers a portfolio of 238 hotels, located in Spain,
Greece, Egypt, France, Turkey, Tunisia, the Balearics and the
Caribbean, among others. The Cruises sector comprises Hapag-Lloyd
Kreuzfahrten GmbH and TUI Cruises which provide luxury cruises,
and cruises within the German-speaking countries, respectively.
About Hapag-Lloyd
Hapag-Lloyd AG -- http://www.hapag-lloyd.com/-- is the
transportation arm of German tourism giant TUI. Subsidiary Hapag-
Lloyd Container Line, which accounts for most of Hapag-Lloyd's
sales, operates a fleet of about 135 containerships. Overall,
Hapag-Lloyd Container Line's vessels have a capacity of more than
490,000 twenty-foot equivalent units (TEU). The unit's routes
link Europe, Asia, the Americas, and Africa. In addition to
freight transportation, Hapag-Lloyd offers luxury ocean and river
cruises under its Hapag-Lloyd Cruises brand. TUI sold Hapag-
Lloyd's container operations to a German investment group in March
2009.
TUI AG: To Launch Initial Public Offering for Hapag-Lloyd
---------------------------------------------------------
Robert Wright at The Financial Times reports that the owners of
Hapag-Lloyd AG confirmed on Tuesday that they are to launch an
initial public offering for the company, barely a year after it
sought government help to survive.
The FT relates that TUI AG and the Albert Ballin consortium said
they had appointed Credit Suisse, Goldman Sachs and Greenhill to
advise them on the potential public listing of Hapag-Lloyd,
Germany's largest container carrier.
According to the FT, the listing would allow TUI, which has long
said it intends to withdraw from container shipping, to reduce its
shareholding. It would also potentially allow a realignment of
shareholdings within members of the Albert Ballin consortium,
assembled in 2008 to prevent the line from being taken over by
Singapore's Neptune Orient Lines, the FT says.
Any listing is likely to be in Frankfurt, the FT notes.
Following the conversion of a complex series of hybrid instruments
created during the 2008 sale of a stake in Hapag-Lloyd to Albert
Ballin, the consortium at the end of this year will control 50.2%
of the shares, the FT states. TUI holds the remainder, the FT
discloses.
At the height of the container shipping crisis in October last
year, Hapag-Lloyd received a EUR1.2 billion (US$1.6 billion) loan
guarantee from the German government to ensure its survival, the
FT recounts. At the same time, shareholders were forced to inject
EUR750 million in fresh capital into the group, the FT relates.
As reported by the Troubled Company Reporter-Europe on Dec. 1,
2010, Bloomberg News said TUI wants to dispose of its stake in
Hapag-Lloyd to focus on tourism.
About Hapag-Lloyd
Hapag-Lloyd AG -- http://www.hapag-lloyd.com/-- is the
transportation arm of German tourism giant TUI. Subsidiary Hapag-
Lloyd Container Line, which accounts for most of Hapag-Lloyd's
sales, operates a fleet of about 135 containerships. Overall,
Hapag-Lloyd Container Line's vessels have a capacity of more than
490,000 twenty-foot equivalent units (TEU). The unit's routes
link Europe, Asia, the Americas, and Africa. In addition to
freight transportation, Hapag-Lloyd offers luxury ocean and river
cruises under its Hapag-Lloyd Cruises brand. TUI sold Hapag-
Lloyd's container operations to a German investment group in March
2009.
About TUI
TUI AG -- http://www.tui-group.com/en/-- is a Germany-based
company mainly engaged in the tourism sector, focusing on the
markets of Central, Northern and Western Europe. TUI owns a
network of travel agencies and tour operators, including air
tours, Thomson, First Choice and TUI Deutschland. It also
operates several airlines, including Corsairfly, Thomsonfly and
First Choice Airways, among others. The Company is structured
into three segments: TUI Travel, TUI Hotels and Resorts, and
Cruises. TUI Travel comprises the Company's distribution, tour
operating, airline and incoming activities and services over 30
million customers in 180 countries. The TUI Hotels and Resorts
division offers a portfolio of 238 hotels, located in Spain,
Greece, Egypt, France, Turkey, Tunisia, the Balearics and the
Caribbean, among others. The Cruises sector comprises Hapag-Lloyd
Kreuzfahrten GmbH and TUI Cruises which provide luxury cruises,
and cruises within the German-speaking countries, respectively.
* * *
As reported by the Troubled Company Reporter-Europe on Sept. 29,
2010, Moody's Investors Service affirmed the Corporate Family
Rating and Probability of Default Rating of TUI AG at Caa1; the
unsecured rating and the subordinated ratings are also affirmed at
Caa2 and Caa3, respectively. Moody's said the outlook is changed
to stable from negative.
=============
I R E L A N D
=============
ANGLO IRISH: To Push Through with Quinn Insurance Takeover Plans
----------------------------------------------------------------
Belfast Telegraph reports that Anglo Irish Bank is pressing ahead
with its original plans to take over Quinn Insurance Limited (QIL)
even though the future shape of Anglo itself has yet to be agreed
with the Irish government.
The news comes as Anglo and four other bidders prepare to lodge
second-round bids for QIL, Belfast Telegraph notes.
According to Belfast Telegraph, Anglo is set to start talks with
government officials this week to decide which parts of the toxic
bank will merge with Irish Nationwide and which parts will stand
separately. Belfast Telegraph notes that sources have
acknowledged that the outcome of those talks could materially
affect the way Anglo could pursue the EUR2.8 billion (GBP2.4
billion) it is owed by Sean Quinn and his family, who own QIL.
Belfast Telegraph says the current plans involve Anglo lodging a
joint bid for QIL along with US insurer Liberty Mutual, which is
also believed to be making a stand-alone bid. The Anglo/Liberty
bid may see the bank put as much as EUR600 million (GBP500
million) into QIL, with Liberty adding expertise that would make
the deal more palatable to regulatory authorities, according to
Belfast Telegraph.
The other QIL bidders are believed to include UK insurer
Travelers, Swiss player Zurich, and German firm Allianz, though
none have publicly confirmed their interest, Belfast Telegraph
discloses.
As reported by the Troubled Company Reporter-Europe, The Irish
Times said the Financial Regulator put Quinn Insurance into
administration in March 2010 after his office discovered
guarantees had been provided by the insurer's subsidiaries as far
back as 2005 on Quinn Group debts of more than EUR1.2 billion.
The regulator said the guarantees reduced the amount the firm had
in reserve to protect policyholders against possible claims,
putting 1.3 million customers at risk, according to The Irish
Times.
About Quinn Insurance
Quinn Insurance is owned by Sean Quinn, Ireland's richest man, and
his family. The company has more than 20% of the motor and health
insurance market in Ireland. Employing almost 2,800 people in
Britain and Ireland, it was founded in 1996 and entered the UK
market in 2004.
About Anglo Irish Bank
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 Dec. 1,
2010, DBRS downgraded the ratings of the Euro Dated Subordinated
Notes (specifically the EUR325.2 million Floating Rate
Subordinated Notes due 2014, EUR500 million Callable Subordinated
Floating Rate Notes due 2016 and the EUR750 million Dated
Subordinated Floating Rate Notes due 2017) (collectively referred
to as the 2017 Notes) issued by Anglo Irish Bank Corporation
Limited (Anglo Irish or the Bank) to 'D' from 'C'. DBRS said the
downgrade follows the execution of the Bank's note exchange offer.
The default status for the exchanged and now-extinguished 2017
Notes reflects DBRS's view that bondholders were offered limited
options, which, as discussed in DBRS's press release dated
October 25, 2010, is considered a default per DBRS policy.
On Oct. 29, 2010, the Troubled Company Reporter-Europe reported
that Standard & Poor's Ratings Services lowered its rating on
Anglo Irish Bank Corp. Ltd.'s nondeferrable dated subordinated
debt (lower Tier 2) securities to 'D' from 'CCC'. The downgrade
of the lower Tier 2 debt rating reflects S&P's opinion that the
bank's exchange offer is a "distressed exchange" and tantamount to
default in accordance with its criteria.
ANGLO IRISH: To Commence Merger Talks with Irish Nationwide
-----------------------------------------------------------
Anglo Irish Bank and Irish Nationwide Building Society will start
talks with government officials this week to decide which parts of
the state-controlled lenders may be merged following the country's
bailout, Joe Brennan at The Irish Examiner reports, citing two
people with knowledge of the discussions.
According to The Irish Examiner, people familiar with the matter
said Anglo Irish chief executive officer Mike Aynsley met with
Gerry McGinn, his counterpart at Irish Nationwide, to start
exploring options last week. The Irish Examine relates that
people familiar with the matter said the government has told both
companies to devise a plan by the end of January.
Finance Minister Brian Lenihan estimated rescuing both lenders
could cost as much as EUR39.7 billion, The Irish Examiner
discloses.
According to The Irish Examiner, one of the people familiar with
the matter said the government might merge a unit of Irish
Nationwide that oversees loans being transferring to National
Asset Management Agency with a similar division at Anglo.
Irish Nationwide has about EUR500 million of commercial property
loans that may also be combined with Anglo, The Irish Examiner
cites a source close to the matter as saying. Irish Nationwide
will also review options for its residential mortgage unit, which
has about EUR2 billion of loans and continues to extend new
credit, The Irish Examiner relates, citing people familiar with
the matter.
About Irish Nationwide
Irish Nationwide Building Society, headquartered in Dublin, had
total assets of EUR14.4 billion at year-end 2008.
About Anglo Irish Bank
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 Dec. 1,
2010, DBRS downgraded the ratings of the Euro Dated Subordinated
Notes (specifically the EUR325.2 million Floating Rate
Subordinated Notes due 2014, EUR500 million Callable Subordinated
Floating Rate Notes due 2016 and the EUR750 million Dated
Subordinated Floating Rate Notes due 2017) (collectively referred
to as the 2017 Notes) issued by Anglo Irish Bank Corporation
Limited (Anglo Irish or the Bank) to 'D' from 'C'. DBRS said the
downgrade follows the execution of the Bank's note exchange offer.
The default status for the exchanged and now-extinguished 2017
Notes reflects DBRS's view that bondholders were offered limited
options, which, as discussed in DBRS's press release dated
October 25, 2010, is considered a default per DBRS policy.
On Oct. 29, 2010, the Troubled Company Reporter-Europe reported
that Standard & Poor's Ratings Services lowered its rating on
Anglo Irish Bank Corp. Ltd.'s nondeferrable dated subordinated
debt (lower Tier 2) securities to 'D' from 'CCC'. The downgrade
of the lower Tier 2 debt rating reflects S&P's opinion that the
bank's exchange offer is a "distressed exchange" and tantamount to
default in accordance with its criteria.
ANGLO IRISH: Ex-Chief Quizzed Over Assets in US Bankruptcy Court
----------------------------------------------------------------
Jay Fitzgerald at Irish Independent reports that David Drumm, the
former head of Anglo Irish Bank, was forced on Tuesday to answer
detailed questions about his wife's jewelry, his children's
Christmas presents, and other assets that his creditors might
seize in a United States bankruptcy court.
Mr. Drumm answered questions in Boston about his personal wealth
and his role in the bank's downfall, Irish Independent relates.
He had agreed to be questioned by his former employers as part of
bankruptcy proceedings in the US, Irish Independent discloses. He
has refused to return to Ireland to be interviewed by gardai about
major irregularities at Anglo, Irish Independent notes.
According to Irish Independent, Garda fraud officers want to
question Mr. Drumm about irregularities at Anglo Irish before its
meltdown, but he is considered out of reach of Irish authorities
until his bankruptcy case in the US is resolved.
Irish Independent says Mr. Drumm is expected to continue giving
evidence until January 5 followed by more questioning later that
month by Anglo Irish lawyers over his final days as CEO of the
bank.
Anglo raised serious doubts over the accuracy of financial
information Mr. Drumm supplied to the US courts as part of his
bankruptcy petition, Irish Independent notes.
As reported by the Troubled Company Reporter-Europe on Oct. 19,
2010, Bloomberg News said Mr. Drumm filed for bankruptcy, months
after the bank sought repayment of loans from him. Bloomberg
disclosed Mr. Drumm, who resigned from the Dublin-based bank in
December 2008, listed assets and liabilities at US$1 million to
US$10 million on Oct. 14 in U.S. Bankruptcy Court in Boston.
Anglo Irish Bank's lawyers told a court in Dublin in December that
the bank is seeking repayment of loans valued at about EUR8
million (US$11.3 million) from Mr. Drumm, according to Bloomberg.
His liabilities are primarily business debts, Bloomberg said,
citing the Oct. 14 filing under Chapter 7 of the U.S. Bankruptcy
Code.
About Anglo Irish Bank
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 Dec. 1,
2010, DBRS downgraded the ratings of the Euro Dated Subordinated
Notes (specifically the EUR325.2 million Floating Rate
Subordinated Notes due 2014, EUR500 million Callable Subordinated
Floating Rate Notes due 2016 and the EUR750 million Dated
Subordinated Floating Rate Notes due 2017) (collectively referred
to as the 2017 Notes) issued by Anglo Irish Bank Corporation
Limited (Anglo Irish or the Bank) to 'D' from 'C'. DBRS said the
downgrade follows the execution of the Bank's note exchange offer.
The default status for the exchanged and now-extinguished 2017
Notes reflects DBRS's view that bondholders were offered limited
options, which, as discussed in DBRS's press release dated
October 25, 2010, is considered a default per DBRS policy.
On Oct. 29, 2010, the Troubled Company Reporter-Europe reported
that Standard & Poor's Ratings Services lowered its rating on
Anglo Irish Bank Corp. Ltd.'s nondeferrable dated subordinated
debt (lower Tier 2) securities to 'D' from 'CCC'. The downgrade
of the lower Tier 2 debt rating reflects S&P's opinion that the
bank's exchange offer is a "distressed exchange" and tantamount to
default in accordance with its criteria.
CELF LOAN: S&P Raises Rating on Class D Notes to 'B (sf)'
---------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on five
classes of CELF Loan Partners II PLC's outstanding EUR405.65
million notes.
These rating actions follow S&P's review of several factors in the
transaction. S&P has assessed the credit improvement in the
transaction portfolio, alongside the application of its updated
criteria for corporate collateralized loan obligations. None of
the ratings were affected by the largest industry default test,
another of S&P's supplemental stress tests.
There has been a reduction in the outstanding principal amount of
the class A notes, which has led to an increase in credit
enhancement.
In S&P's opinion, there has been a reduction in the gross level of
defaults expected on the portfolio over the life of the
transaction, as the weighted-average life of the transaction has
reduced since its last review. The weighted-average recovery rate
of the transaction has also increased slightly, as well as the
weighted-average spread.
Compared with its previous review, S&P has observed a reduction
among assets rated 'CCC+', 'CCC', or 'CCC-', and more generally,
an improvement in the credit quality of the portfolio.
CELF Loan Partners II is a cash flow collateralized loan
obligation transaction that securitizes loans to primarily
speculative-grade corporate firms.
Ratings List
CELF Loan Partners II PLC
EUR475 Million Floating- and Fixed-Rate Notes
Ratings Raised
Rating
------
Class To From
----- -- ----
A AA+ (sf) AA (sf)
B-1 A- (sf) BBB+ (sf)
B-2 A- (sf) BBB+ (sf)
C BB+ (sf) B+ (sf)
D B (sf) CCC- (sf)
IRISH NATIONWIDE: To Commence Merger Talks with Anglo Irish Bank
----------------------------------------------------------------
Anglo Irish Bank and Irish Nationwide Building Society will start
talks with government officials this week to decide which parts of
the state-controlled lenders may be merged following the country's
bailout, Joe Brennan at The Irish Examiner reports, citing two
people with knowledge of the discussions.
According to The Irish Examiner, people close to the matter and
who declined to be identified, said Anglo Irish chief executive
officer Mike Aynsley met with Gerry McGinn, his counterpart at
Irish Nationwide, to start exploring options last week. The Irish
Examine relates that people familiar with the situation said the
government has told both companies to devise a plan by the end of
January.
Finance Minister Brian Lenihan estimated rescuing both lenders
could be as much as EUR39.7 billion, The Irish Examiner discloses.
According to The Irish Examiner, one of the people familiar with
the matter said the government might merge a unit of Irish
Nationwide that oversees loans being transferring to National
Asset Management Agency with a similar division at Anglo.
Irish Nationwide has about EUR500 million of commercial property
loans that may also be combined with Anglo, The Irish Examiner
cites its source as saying. Irish Nationwide will also review
options for its residential mortgage unit, which has about EUR2
billion of loans and continues to extend new credit, The Irish
Examiner cites people familiar with the matter as saying.
About Anglo Irish Bank
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.
About Irish Nationwide
Irish Nationwide Building Society, headquartered in Dublin, had
total assets of EUR14.4 billion at year-end 2008.
* * *
As reported by the Troubled Company Reporter-Europe on Sept. 6,
2010, Fitch Ratings upgraded the Individual rating of Irish
Nationwide Building Society to 'E' from 'F'. Fitch said the
upgrade of INBS's Individual Rating to 'E' recognizes the
government's injection of EUR2.7 billion capital into the society,
but also acknowledges that the society is still likely to require
further external support. The sale at a loss of loans to NAMA is
likely to lead the society to report losses in 2010 which Fitch
expects to be larger than the society's capital base. Fitch thus
expects that the society will require additional capital to comply
with the Irish Financial Regulator's minimum capital requirements
of an 8% Tier 1 capital ratio by end-2010.
QUINN INSURANCE: Anglo to Push Through with Takeover Plans
----------------------------------------------------------
Belfast Telegraph reports that Anglo Irish Bank is pressing ahead
with its original plan to take over Quinn Insurance Limited (QIL)
even though the future shape of Anglo itself has yet to be agreed
with the Irish government.
The news comes as Anglo and four other bidders prepare to lodge
second-round bids for QIL, Belfast Telegraph relates.
Belfast Telegraph notes that sources have acknowledged that the
outcome of Anglo's talks with respect to Irish Nationwide could
materially affect the way Anglo could pursue the EUR2.8 billion
(GBP2.4 billion) it is owed by the owners of QIL, Sean Quinn and
his family. Anglo is set to start talks with government officials
this week to decide which parts of the toxic bank will merge with
Irish Nationwide and which parts will stand separately, Belfast
Telegraph states.
Belfast Telegraph says the current plans involve Anglo lodging a
joint bid for QIL along with US insurer Liberty Mutual, which is
also believed to be making a stand-alone bid. The Anglo/Liberty
bid may see the bank put as much as EUR600 million (GBP500
million) into QIL, with Liberty adding expertise that would make
the deal more palatable to regulatory authorities, according to
Belfast Telegraph.
The other QIL bidders are believed to include UK insurer
Travelers, Swiss player Zurich and German firm Allianz, though
none have publicly confirmed their interest, Belfast Telegraph
discloses.
As reported by the Troubled Company Reporter-Europe, The Irish
Times said the Financial Regulator put Quinn Insurance into
administration in March 2010 after his office discovered
guarantees had been provided by the insurer's subsidiaries as far
back as 2005 on Quinn Group debts of more than EUR1.2 billion.
The regulator said the guarantees reduced the amount the firm had
in reserve to protect policyholders against possible claims,
putting 1.3 million customers at risk, according to The Irish
Times.
About Anglo Irish Bank
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.
About Quinn Insurance
Quinn Insurance is owned by Sean Quinn, Ireland's richest man, and
his family. The company has more than 20% of the motor and health
insurance market in Ireland. Employing almost 2,800 people in
Britain and Ireland, it was founded in 1996 and entered the UK
market in 2004.
=========
I T A L Y
=========
ALITALIA SPA: Investors Can Swap Stocks for Government Bonds
------------------------------------------------------------
Lorenzo Totaro at Bloomberg News reports that Alitalia SpA
investors will soon be able to collect Italian government bonds
they were offered in exchange for their securities after the
airline was declared insolvent in 2008.
Bloomberg relates that the Finance Ministry said in an e-mailed
statement that its decree permitting the swap had been published
in the government's official gazette, allowing for the bonds with
a nominal value of EUR312.9 million (US$418 million) to be
transferred to the Bank of Italy for disbursement.
According to Bloomberg, under the initial terms of the plan,
bondholders were due to recoup 71% of their securities' nominal
value. Bloomberg says shareholders will be allowed to swap their
stock for the bonds at a value of about 27 cents a share.
Alitalia was put into bankruptcy administration on Aug. 29, 2008
and broken up in early 2009, Bloomberg recounts. The passenger-
flight business is now owned by a group of Italian investors and
Air France-KLM Group, while the rest of the company is operating
under protection from creditors, Bloomberg notes.
About Alitalia
Based in Rome, Alitalia S.p.A. -- http://www.alitalia.it/--
provides air travel services for passengers and air transport of
cargo on national, international and inter-continental routes,
including United States, Canada, Japan and Argentina. The Italian
government owns 49.9% of Alitalia.
===================
K A Z A K H S T A N
===================
BTA BANK: Former Head's Assets Subject to Receivership Order
------------------------------------------------------------
Simon Goodley at guardian.co.uk reports that Mukhtar Ablyazov, a
former head of the now state-owned BTA Bank, has lost a legal
fight to prevent his assets from being subject to a receivership
order.
Mr. Ablyazov has been told by the high court in London that he
"cannot be trusted" not to dissipate assets which the bank says
are not his, according to guardian.co.uk. The court had earlier
frozen the assets, guardian.co.uk notes.
According to guardian.co.uk, Mr. Justice Teare also ruled that
Mr. Ablyazov, who has settled in a plush part of north London with
his wife and three youngest children, should continue to have his
passport retained by the court to prevent him from leaving the
country.
"Although Mr Ablyazov has stated that he will obey the orders of
this court, that statement has to be considered in the light of
his conduct in this action," guardian.co.uk quoted Mr. Justice
Teare as saying. "Consideration of his conduct with regard to
disclosure of his assets in August/September 2009 . . . has left
me unable to trust him not to deal with his assets in breach of
the freezing order."
A high court case remains pending by which Mr. Ablyazov will face
claims that he embezzled US$2 billion of BTA's money, with further
claims taking the figure to US$4 billion, guardian.co.uk
discloses. Mr. Ablyazov has argued that the allegations are
politically motivated and that the Kazakh government illegally
took control of the bank, guardian.co.uk relates.
About BTA Bank
BTA Bank AO (BTA Bank JSC), formerly Bank TuranAlem AO --
http://bta.kz/-- is a Kazakhstan-based financial institution,
which is involved in the provision of banking and financial
products for private and corporate clients.
The BTA Group is one of the leading banking groups in the
Commonwealth of Independent States and has affiliated banks in
Russia, Ukraine, Belarus, Georgia, Armenia, Kyrgyzstan and Turkey.
In addition, the Bank maintains representative offices in Russia,
Ukraine, China, the United Arab Emirates and the United Kingdom.
The Bank has no branch or agency in the United States, and its
primary assets in the United States consist of balances in
accounts with correspondent banks in New York City.
As of November 30, 2009, the Bank employed 5,043 people inside
and 4 people outside Kazakhstan. It has no employees in the
United States. Most of the Bank's assets, and nearly all its
tangible assets, are located in Kazakhstan.
JSC BTA Bank, also known as BTA Bank of Kazakhstan, commenced
insolvency proceedings in the Specialized Financial Court of
Almaty City, Republic of Kazakhstan. Anvar Galimullaevich
Saidenov, the Chairman of the Management Board of BTA Bank, then
filed a Chapter 15 petition (Bankr. S.D.N.Y. Case No. 10-10638) on
Feb. 4, 2010, estimating more than US$1 billion in assets and
debts.
On March 9, 2010, the Troubled Company Reporter-Europe reported
that JSC BTA Bank was granted relief in the U.S. under Chapter 15
when the bankruptcy judge in New York recognized the Kazakh
proceeding as the "foreign main proceeding." Consequently,
creditor actions in the U.S. were permanently halted, forcing
creditors to prosecute their claims and receive distributions
in Kazakhstan.
In the U.S., the Foreign Representative is represented by Evan C.
Hollander, Esq., Douglas P. Baumstein, Esq., and Richard A.
Graham, Esq. -- rgraham@whitecase.com -- at White & Case LLP in
New York City.
Bloomberg News reports that the Specialized Financial Court of
Almaty approved BTA Bank's debt restructuring on Aug. 31, 2010,
trimming its obligations from US$16.7 billion to US$4.2 billion,
and extending its longest maturity dates to 20 year from eight.
Creditors who hold 92 percent of BTA's debt approved the
restructuring plan in May. BTA reportedly distributed
US$945 million in cash to creditors and new debt securities
including US$5.2 billion of recovery units (representing an 18.5%
equity stake) and US$2.3 billion of senior notes on Sept. 1, 2010.
BTA forecasts profit of slightly more than US$100 million in 2011,
Chief Executive Officer Anvar Saidenov told reporters in Almaty.
EURASIAN BANK: Fitch Affirms 'B-' Long-Term Issuer Default Rating
-----------------------------------------------------------------
Fitch Ratings has affirmed and withdrawn the ratings of
Kazakhstan-based Eurasian Bank.
Fitch has withdrawn the ratings as EBK has chosen to stop
participating in the rating process. Therefore Fitch will no
longer have sufficient information to maintain the ratings.
Accordingly, Fitch will no longer provide ratings or analytical
coverage for EBK.
EBK's ratings reflect the risks stemming from related-party
lending, high single-name concentration on both sides of the
balance sheet and exposure to the real estate sector. At the same
time, they consider the bank's strong short-term liquidity
position.
EBK is a medium-size financial institution with US$2.2 billion of
total assets, ranking seventh among Kazakhstan's banks at end-
9M10. The bank has a network of 18 branches and 48 outlets. EBK
is part of Eurasian Financial Company, which is ultimately
controlled by three individuals. The current owners also have
substantial interests in the natural resources, real estate, and
energy sectors, held via Eurasian Industrial Company and Eurasian
Natural Resources Company.
The rating actions are:
-- Long-term foreign currency IDR affirmed at 'B-' with Stable
Outlook; withdrawn
-- Short-term foreign currency IDR affirmed at 'B'; withdrawn
-- Individual Rating affirmed at 'D/E'; withdrawn
-- Support Rating affirmed at '5'; withdrawn
-- Support Rating Floor: 'NF'; withdrawn
===================
L U X E M B O U R G
===================
INTELSAT SA: Seeks FCC Nod to Transfer Licenses for Reorganization
------------------------------------------------------------------
On December 3, 2010, affiliates of Intelsat S.A. filed
applications seeking the US Federal Communications Commission's
consent to a pro forma assignment and transfer of control of all
of the licenses held by the Company's five licensee subsidiaries.
The applications are being made in connection with the Company's
intention to enter into a series of internal transactions and
related steps that would reorganize the ownership of the Company's
assets among its subsidiaries and effectively combine the legacy
businesses of Intelsat Subsidiary Holding Company S.A. and
Intelsat Corporation in order to simplify the Company's operations
and enhance the Company's ability to transact business in a more
efficient manner.
The Reorganization is expected to be completed in the next few
months, but is subject to certain contingencies, including receipt
of FCC approval and the refinancing of substantially all of the
existing indebtedness of Intelsat Corp and the senior secured
credit facilities of Intelsat Sub Holdco, which is expected to be
funded with the proceeds of a new secured credit facility and
other forms of indebtedness.
After the Reorganization is completed, all of the Company's
material business operations, including its satellites and its
sales and marketing operations, are expected to be owned by
Intelsat Sub Holdco and its direct and indirect subsidiaries.
While it is the Company's intention to proceed with the
Reorganization, there can be no assurance that the Reorganization
will be completed as contemplated.
About Intelsat
Intelsat S.A., formerly Intelsat, Ltd., provides fixed-satellite
communications services worldwide through a global communications
network of 54 satellites in orbit as of December 31, 2009, and
ground facilities related to the satellite operations and control,
and teleport services. It had US$2.5 billion in revenue in 2009.
Intelsat S.A. had US$17.56 billion in assets, US$18.15 billion in
debts, noncontrolling interest of US$1.90 million, and
shareholders' deficit of US$597.06 million as of Sept. 30, 2010.
Luxembourg-based Intelsat S.A. carries 'B' issuer credit ratings
from Standard & Poor's. It has 'Caa1' corporate family and
probability of default ratings from Moody's Investors Service.
Washington D.C.-based Intelsat Corporation, formerly known as
PanAmSat Corporation, is a fully integrated subsidiary of Intelsat
S.A., its indirect parent. Intelsat Corp. had US$7.70 billion in
assets against US$4.86 billion in debts as of Dec. 31, 2010.
===========
R U S S I A
===========
BALTIYSKIY BANK: Moody's Cuts Financial Strength Rating to 'E'
--------------------------------------------------------------
Moody's Investors Service has downgraded Baltiyskiy Bank's bank
financial strength rating to E from E+ and its local and foreign
currency deposit ratings to Caa1 from B3. Concurrently, Moody's
Interfax Rating Agency downgraded the bank's national scale Rating
to Ba3.ru from Baa3.ru. The outlook on the bank's long-term
deposit ratings remains negative. However, the outlook on the
BFSR is changed to stable from negative. The bank's short-term
deposit rating of NP has been affirmed.
Ratings Rationale
The downgrade of the bank's ratings reflects the ongoing
deterioration of its credit profile, evidenced by (i) weakening
revenue generation and cost management, with a negative net
interest margin and cost-to-income ratio in excess of 100% at end-
Q3 2010; (ii) declining capital adequacy -- the equity-to assets
ratio decreased to 10.26% at end-Q3 2010 from 18.3% at end-H1
2009; (iii) high borrower and industry (real estate)
concentrations, as its top 20 credit exposures (both loans and
securities) account for over 400% of the bank's equity; and (iv)
uncertainties about the bank's ability to generate sustainable
earnings and in maintaining its franchise.
According to Moody's, Baltiyskiy Bank's E BFSR, which translates
into a baseline credit assessment of Caa1, is constrained by the
bank's high borrower and industry concentrations, low
profitability and weak capitalization. On the other hand, the
rating continues to be underpinned by the bank's entrenched
positions in a number of regions in north-western Russia and a
relatively large retail deposit base.
The bank's Caa1 global local currency deposit rating does not
incorporate any systemic support given the bank's relatively small
size and limited importance to the Russian banking system.
Consequently, it is in line with the bank's BCA of Caa1.
Baltiyskiy Bank's ratings currently have limited upside potential.
A positive rating action could be possible should the bank
materially reduce its borrower and industry concentrations,
generates recurring earnings at least in line with its peers, and
demonstrates much stronger capitalization.
The bank's ratings could be downgraded if its capitalization
further materially weakens from the current level. Also, any
substantial weakening of the bank's liquidity position due to an
outflow of customer funds may have negative rating implications.
About Moody's and Moody's Interfax
Moody's Interfax Rating Agency specializes in credit risk analysis
in Russia. MIRA is controlled by Moody's Investors Service, a
leading provider of credit ratings, research and analysis covering
debt instruments and securities in the global capital markets.
Moody's Investors Service is a subsidiary of Moody's Corporation.
Moody's previous rating action on Baltiyskiy Bank was implemented
on August 3, 2009, when the bank's local and foreign currency
deposit ratings were downgraded to B3 from B2, its NSR was
downgraded to Baa3.ru from Baa1.ru and the outlook on the ratings
was changed to negative from stable.
Headquartered in Moscow, Russian Federation, Baltiyskiy Bank is a
medium-sized bank with its main operations in St. Petersburg and
north-western Russia. The bank is controlled by two individuals,
one of whom is the bank's CEO. At year-end 2009, according to the
bank's IFRS report, its total assets amounted to US$2.04 billion,
equity US$298.7 million and net loss US$12.87 million. At end-Q3
2010, according to the bank's regulatory reports, total assets
amounted to US$2.08 billion, equity US$213 million and net income
US$20.6 million.
WIMM-BILL-DANN FOODS: Moody's Reviews 'Ba3' Corp. Family Rating
---------------------------------------------------------------
Moody's Investors Service has placed the Ba3 corporate family
rating of Wimm-Bill-Dann Foods OJSC under review for possible
upgrade. The rating action was triggered by the announcement made
by the company on 2, December, 2010 that PepsiCo (rated Aa3 by
Moody's) agreed to acquire 66% of Russia's Wimm-Bill-Dann for $3.8
Billion. The acquisition is subject to required government
approvals.
Under the acquisition agreement, PepsiCo will acquire 66% of Wimm-
Bill-Dann from a group of shareholders and subsidiaries of Wimm-
Bill-Dann. The approximately US$3.8 billion PepsiCo will pay to
acquire the stake in Wimm-Bill-Dann implies a total enterprise
value of approximately US$5.4 billion. The price being paid by
PepsiCo to the selling shareholders -- US$33.00 per ADR share
(which is equivalent to US$132.00 per ordinary Russian share) --
represents a premium of 32% to the 30-day average trading price of
Wimm-Bill-Dann's ADR shares. Moody's also understands that once
this transaction is completed PepsiCo would have to make a tender
offer for the remaining shares of Wimm-Bill-Dann.
Moody's expects that the acquisition by PepsiCo should further
strengthen WBD position on the Russian dairy and juice markets.
Furthermore, the combined company will become a clear market
leader in the food-and-beverage industry in Russia. The
acquisition of WBD with its strong, value-added dairy business and
strong brand recognition would help PepsiCo to tap a dairy market
in Russia. WBD believes that the integration into PepsiCo also
provides the company with access to a world-class corporate
culture.
Moody's will monitor the progress of the obtention of government
approvals and its review will mainly focus on:
-- The impact of the transaction on the future performance of
the company;
-- The impact on the company's credit metrics following the
expected cash inflows from the sale of treasury shares held
as a result of former Danone stake in the company
-- The potential credit uplift deriving from the operating and
financial benefits of being part of a highly rated global
industry player.
The last rating action on the company was implemented on
December 15, 2009 when Moody's changed the outlook on the Ba3
corporate family rating of the company to stable from negative.
Wimm-Bill-Dann Foods OJSC has 38 manufacturing facilities in
Russia, Ukraine, Kyrgyzstan, Uzbekistan and Georgia with over
16,000 employees. In 2005, Wimm-Bill-Dann became the first
Russian dairy producer to receive approval from the European
Commission to export its products into the European Union.
In 2009 the company reported US$2.18 billion in revenue and
US$306.6 million of EBITDA. In the 1H 2010 WBD reported revenue
of US$1.25 billion (17.1% increase Y-o-Y) and EBITDA of US$159.7
million (0.9% increase Y-o-Y). In August 2010 Groupe Danone sold
its 18.4% stake in the company to WBD.
=========
S P A I N
=========
PRIVATE MEDIA: Posts EUR2.6 Million Net Loss in Q3 2010
-------------------------------------------------------
Private Media Group filed its quarterly report on Form 10-Q,
reporting a net loss of EUR2.60 million on EUR5.88 million of
revenue for the three months ended September 30, 2010, compared to
a net loss of EUR1.20 million on EUR5.76 million of revenue for
the same period in 2009.
The Company's balance sheet at September 30, 2010, showed
EUR43.15 million in total assets, EUR17.49 million in total
liabilities, and EUR25.66 million in shareholders' equity.
The Company currently has no additional availability under its
existing credit facilities.
As reported in the Troubled Company Reporter on May 31, 2010,
BDO Auditores S.L., in Barcelona, Spain, expressed substantial
doubt about Private Media's ability to continue as a going
concern, following the Company's 2009 results. The independent
auditors noted that the Company has suffered recurring losses from
operations over the past years and has not yet reestablished
profitable operations.
A full-text copy of the Form 10-Q is available for free at:
http://researcharchives.com/t/s?7089
About Private Media
Based in Barcelona, Spain, Private Media Group, Inc., is an
international provider and distributor of adult media content.
The Company acquires or licenses content from independent studios
and directors and processes these images into products suitable
for popular media formats such as digital media content for
Broadcasting, Mobile and Internet distribution, and print
publications and DVDs. In addition to media content, the Company
also generates additional sales through the licensing of its
Private trademark to third parties.
The Company's U.S. headquarters are located at 537 Stevenson
Street, in San Francisco, California.
===========================
U N I T E D K I N G D O M
===========================
ARGYLE FOOTBALL CLUB: Fails to Pay GBP700,000 Tax
-------------------------------------------------
Sportinglife reports that Plymouth Argyle Football Club (Argyle)
has been served a petition by Her Majesty's Revenue and Customs
after failing to pay GBP700,000 in taxes, which has seen their
staff's November wages go unpaid.
If Argyle does not find the funds to clear its debt then it could
be plunged into administration and face a 10-point deduction,
which could leave it bottom of League One, according to
Sportinglife. However, with the search for investors in the club
still ongoing, it is believed that Argyle will request more time
to pay the bill, Sportinglife relates.
Plymouth Argyle Football Club commonly known as Argyle, or by
their nickname, The Pilgrims, is an English professional football
club based in Central Park, Plymouth. They play in Football
League One, the third division of the English football league
system, having joined the Football League in 1920.
BALLS BROTHERS: Administrators Tap TLT Solicitors
-------------------------------------------------
Gavriel Hollander at The Lawyer reports that TLT Solicitors'
London corporate recovery and insolvency practice has won one of
its biggest mandates to date after being instructed by the
administrators of bar owner Balls Brothers.
TLT Solicitors' James Forsyth is leading a 10-lawyer team acting
for administrators Nick Cropper, Peter Holder, and Stuart
Mackeller at restructuring expert Zolfo Cooper, The Lawyer
relates.
The Lawyer relates that fellow TLT corporate recovery and
insolvency partner Peter Carney is also involved, along with real
estate partner Julian Mant and the firm's senior partner Robert
Bourns, who will deal with employment matters.
The mandate, according to The Lawyer, came as a result of TLT's
longstanding relationship with Barclays, the bank that appointed
the administrators.
The Lawyer states that the administrators had originally looked at
the option of raising capital for the ailing business, but have
since abandoned the plan in favor of seeking a buyer. Mr. Forsyth
said he expected a sale to happen "reasonably quickly", with bids
expected to be on the table by mid-December, according to The
Lawyer.
As reported in the Troubled Company Reporter-Europe on Dec. 1,
2010, Balls Brothers went into administration. Zolfo Cooper has
been brought in to lead the restructuring process and Zolfo Cooper
said all sites would continue trading with no immediate job
losses. Morning Advertiser said it is believed that the company
had repeatedly breached its banking covenants and owes Barclay
Bank GBP7 million.
Headquartered in London, Balls Brothers is a wine bar and
restaurant operator. It employs 332 people.
CROWN CURRENCY: Police Arrests 2 Suspects in Firm Probe
-------------------------------------------------------
Nikhil Kumar at The Independent reports that members of Devon and
Cornwall Police's economic crime department arrested two men, who
are aged 68 and 70, in connection with the collapse of Crown
Currency Exchange.
"It is expected that this will be a protracted inquiry that may
take many months," The Independent quoted Detective Inspector Paul
Bean of Devon and Cornwall Police as saying.
As reported in the Troubled Company Reporter-Europe on
November 18, 2010, The Telegraph said that nearly two months after
Crown Currency went into administration owing customers up to
GBP20 million, the Economic Crime Unit of Devon and Cornwall
Police has started inquiries "to establish any evidence of
criminality". According to the report, the investigation is the
first indication that directors of the failed foreign exchange
company could face criminal proceedings. The Telegraph noted that
the administrators' report into the collapse of Crown Currency
Exchange released detailed how Peter Benstead, the director of
Penzance-based company, "believed the businesses were heavily
insolvent and had been for some time". The administrator's report
added Mr. Benstead had told Barclays, the company's bank, that
Crown Currency could have been insolvent for a number of months
before the administrators were called in, The Telegraph related.
About Crown Currency
Headquartered in Hayle, Cornwall, Crown Currency Exchange is one
of the UK's biggest foreign exchange websites. The business was
established by husband and wife Peter and Susan Benstead five
years ago.
EQUINOX PLC: Fitch Downgrades Ratings on Two Tranches to 'Csf'
--------------------------------------------------------------
Fitch Ratings has downgraded three tranches of Equinox (Eclipse
2006-1) plc and affirmed three tranches. The rating actions are:
-- GBP259.4m class A (XS0259279585) affirmed at 'Asf'; Outlook
Negative
-- GBP17.2m class B (XS0259280088) affirmed at 'BBBsf; Outlook
Negative
-- GBP18.1m class C (XS0259280161 affirmed at 'BBsf; Outlook
Negative
-- GBP20.9m class D (XS0259280591) downgraded to 'Csf' from
'CCCsf'; Recovery Rating of 'RR2'
-- GBP8m class E (XS0259280674) downgraded to 'Csf' from 'CCsf';
Recovery Rating of 'RR6' GBP3.8m class F (XS0259280914)
downgraded to 'Csf' from 'CCsf'; Recovery Rating of 'RR6'
The rating actions primarily reflect the recent liquidation of the
properties securing the Red Leaf loan, and the anticipated
recoveries estimated by the special servicer following the
impending sale of the ten properties comprising the Macallan
portfolio, of which six are reportedly already agreed.
The GBP54.6 million Redleaf Portfolio loan (17% of the securitized
pool) is a senior participation in a GBP62.6 million whole loan
secured by five secondary/tertiary shopping centers across
England. The borrower failed to repay the loan on its scheduled
due date, July 17, 2010, prompting the transfer of the loan into
special servicing. The loan remains in 'standstill' following the
appointment of a law of property act (LPA) receiver. On
December 1, the issuer announced that the portfolio of assets
securing the loan had been sold for GBP52 million, higher than
last month's valuation of GBP47.5 million but lower than the
senior loan amount, signaling a loss. The corresponding note loss
will be subject to any additional costs and expenses.
The GBP39.0 million Macallan Portfolio loan (12% of the pool),
which is a senior participation in a GBP43.3 million whole loan,
is secured by 10 tertiary, predominantly office properties located
across the UK. The loan has been in special servicing since
November 2009 due to persistent interest coverage ratio covenant
breaches. Along with the appointed administrator and LPA
receiver, the special servicer is in the process of liquidating
the entire portfolio of assets following a failure to negotiate a
loan restructuring. The special servicer estimates total gross
recoveries for the portfolio of circa GBP29 million. After the
deduction of all senior ranking costs (including swap breakage
costs), a senior loan principal loss of approximately GBP13.5
million is estimated.
Based on these figures, Fitch believes that both the class E and F
notes will be written off in full, with a partial loss on the
class D notes. Fitch has revised the ratings on these notes to
'Csf' to reflect the imminent impairment of these notes.
The other nine loans securitized in the transaction have shown a
relatively stable performance since Fitch's last review in July
2010.
EUROPEAN DIRECTORIES: Reorganizes Under Pre-Arranged Plan
---------------------------------------------------------
Isabell Witt at Bloomberg News reports that a London judge allowed
the European Directories (DH6) BV to reorganize its EUR2 billion
(US$2.7 billion) debts in the U.K. in a pre-packaged
administration. A pre-packaged administration is a pre-arranged
plan between a company and certain creditors to reorganize debt.
Bloomberg says the move allows lenders, including Lloyds Banking
Group Plc and Royal Bank of Scotland Group Plc, to take over the
company in a debt-for-equity swap.
Macquarie Group Ltd., the private-equity firm that owned European
Directories, will lose its shares, Bloomberg discloses. According
to Bloomberg, people familiar with the debt plan said in September
that it will also leave holders of second-lien and mezzanine debt
with no recovery.
European Directories, the banks and other senior lenders
including Allied Irish Banks Plc and Bank of New York Mellon
Corp.'s Alcentra, agreed to the debt plan in July after the
company missed payments, Bloomberg relates. Second-lien lenders
AMP Capital Investors Ltd. and Hastings Fund Management Ltd.
challenged the plan in September but failed to get the backing of
the U.K. Court of Appeals, Bloomberg recounts.
As reported by the Troubled Company Reporter-Europe on Dec. 7,
2010, European Directories filed for administration in London,
Bloomberg News said citing, Peter Spratt, the company's
administrator at PricewaterhouseCoopers.
European Directories -- http://www.europeandirectories.com/-- is
a pan-European local search and lead generation group with its
headquarters located in London. The company has 4,750 employees
and over 700,000 customers.
LOCKS HEATH: New River Retail Acquires Shopping Center
------------------------------------------------------
Daily Echo reports that Locks Heath Shopping Centre, which was
placed into receivership in the summer, has been acquired by
property investment firm New River Retail as part of a GBP53-
million deal.
The deal, according to Daily Echo, is part of an acquisition of
five UK shopping centers, totaling 518,000 square feet, from the
CPI Retail Active Management (CReAM) fund.
The other centers are in Leeds, Burgess Hill in West Sussex,
Birmingham, and Newcastle, according to Daily Echo. The centers
were put into receivership in July by Barclays bank, the report
notes.
Daily Echo discloses that HSBC provided New River GBP35 million to
fund the deal. The Locks Heath acquisition brings New River's
retail acquisitions in the past 12 months to GBP150 million, the
report adds.
Locks Heath Shopping Centre is located in Fareham, England.
MRS DISTRIBUTION: Deficiency Tops GBP20 Million Mark
----------------------------------------------------
Dominic Perry at RoadTransport reports that documents recently
filed at Companies House showed that MRS Distribution left a total
deficiency that tops the GBP20-million mark.
As reported in the Troubled Company Reporter-Europe on August 16,
2010, The Herald said that MRS Distribution has gone into
receivership. The report related that KPMG on August 8, 2010,
said that group holding companies Inchmuir and York Place had
called them in as administrators, but JBT and another group
company Clanna "continue to trade as normal, free from insolvency
proceedings." According to The Herald, sister company JBT
Distribution had taken over the entire Scottish operations of MRS,
with 96 employees transferring with immediate effect.
RoadTransport relates that the company receivers' report revealed
that the recession had severely dented the firm's turnover: it had
fallen 11% to GBP28.2 million in the 12 months to March 31, 2010,
"from a combination of a loss of certain contracts and a strategic
decision by MRS not to compete with rivals at low margin rates".
The receiver's report added that this led to a pre-tax loss of
GBP0.9 million in the period, RoadTransport says.
RoadTransport discloses that although it had managed to obtain an
overdraft extension from its bank, Clydesdale, it came under
increasing cash-flow pressure, culminating in its fuel supplier
cancelling its 21-day credit terms and instead requiring MRS to
pay for supplies in advance. MRS looked for other suppliers, but
given its parlous financial state, was unable to find an
alternative, RoadTransport relates.
RoadTransport notes that at the same time, in June and July, the
directors attempted to sell the business, but as the receiver's
report notes, "no party was willing to purchase the entire MRS
business."
According to the estimated statement of affairs produced by MRS's
directors, it owes the bank GBP5.1 million and unsecured creditors
GBP4.3 million, RoadTransport discloses.
RoadTransport adds that the receivers' note said that the bank is
unlikely to receive a dividend.
MRS Distribution is an independent hauler based at Bathgate in
West Lothian.
OEM PLC: To Appoint UHY Hacker Young to Draw Up CVA Proposal
------------------------------------------------------------
Kevin Reed at Accountancy Age reports that OEM plc is set to
appoint supervisors from UHY Hacker Young to place it into a
company voluntary arrangement (CVA).
Accountancy Age relates that OEM's chairman said Hacker Young was
chosen due to the firm's efforts helping the company recover funds
the company claims were misappropriated by a former director prior
to 2005.
The downturn in the property market, couple with debts, has seen
OEM left with no assets, Accountancy Age discloses.
The chairman, unidentified in the stock exchange statement, is
seeking to pay off creditors, bring its records up-to-date with
Companies House and retain its listed status on the stock
exchange, according to Accountancy Age.
The announcement is OEM's first statement to the stock exchange in
18 months, Accountancy Age notes.
Headquartered in London, OEM plc is involved in the development
of, and investment in, property both on its own account and for
clients. It also provides management and advice regarding
property and related assets. Most work relates to early stage
developments and concerns site assembly, planning and related
issues.
PUNCH TAVERNS: Securitized Loans Default is Best Alternative
------------------------------------------------------------
David Hellier at City A.M. reports that Peel Hunt analyst Paul
Hickman has urged Punch Taverns plc to default on two securitized
loans worth around GBP2.6 billion.
According to City A.M., the loans, known as A and B, have been
securitized against 5,300 pubs. The pubs currently require
increasing levels of financial support from the parent company,
currently at around GBP43 million a year, City A.M. discloses.
Mr. Hickman, as cited by City A.M., said: "It is quite clear that
the bond structure that finances most of the tenancies is
unsustainable.
"It is now crucial that a clear solution is imposed. Having
considered alternatives, we believe the preferable outcome is to
allow the A and B securitizations to default.
"We believe shareholders should use their influence to press for
this outcome. Once this issue is resolved, the value in Spirit
and group assets, which we put at 91p, will be apparent."
City A.M. says Punch chief executive Ian Dyson is currently
undertaking a review with the objective of exploring options "to
create value for our shareholders". Punch on Monday said it was
considering all its options, which appear to include some form of
debt write-off on behalf of the bondholders, City A.M. relates.
According to City A.M., sources close to the company said it was
unlikely there would be a conclusion to Mr. Dyson's review before
February.
Mr. Hickman acknowledged that a default by Punch "would be tricky
from the bondholder institutions' point of view" and would make it
tricky for the group to raise further bonds, City A.M. states.
But Mr. Hickman said it was crucial for the group to make the move
so that it would focus minds on the value of the group's other
assets and especially its Spirit estate, City A.M. notes.
Punch Taverns plc -- http://www.punchtaverns.com/-- is a pub
company in the United Kingdom, with over 8,400 pubs across its
leased and managed portfolio. The Company is engaged in the
trading activities in the operation of public houses either under
the leased model or as directly managed by the Company. The
leased model involves the granting of leases to tenants who
operate the pub as their own business, paying rent to the Company,
purchasing beer and other drinks from it and entering into profit
sharing arrangements for income from leisure machines. Pubs that
are directly managed involve the employment of a manager to
operate each managed pub and the Group receives all revenues
generated by the pub and is responsible for costs. During the
fiscal year ended August 23, 2008, Punch Taverns plc acquired 20
pubs and 39 pubs were sold.
SOUTHERN CROSS: Future Remains Uncertain Following Losses
---------------------------------------------------------
Sarah Mishkin at The Financial Times reports that Southern Cross
Healthcare Group plc's future remains unclear following the
release of its full-year results on Tuesday, as the company
continues its discussions with potential private equity buyers and
its negotiations with landlords over high rent bills.
Southern Cross confirmed that its lenders had agreed to change the
terms of its banking covenants, which analysts had said the
company could have breached in the near future, according to the
FT.
The FT relates that Jamie Buchan, chief executive, said the group
has entered talks with 10 of its largest landlords, seeking cuts
in rent and an end to agreements that link rent increases with
inflation.
Southern Cross posted a pre-tax loss of GBP47.4 million, up from
GBP19.8 million, for the year ending September 30, the FT
discloses. Revenue increased by 2% to GBP958.6 million, but the
company took a GBP51.3 million charge for future minimum lease
increases, the FT notes.
The company, in need of capital to invest in the business, has
confirmed it is in talks with potential bidders, the FT states.
According to the FT, the company's prognosis remains subject to
the outcome of negotiations not yet concluded, with local
authorities over fees, with landlords over rent and with private
equity firms over the price. Although the company's efforts to
cut its net debt and to increase the number of self-paying
residents has impressed analysts, it is still having to grapple
with rising fees and rents, the FT notes.
The FT says shares in loss-making Southern Cross are as risky as
they are cheap.
Southern Cross Healthcare Group plc is the biggest provider of
care homes in the United Kingdom.
UNIWELL SYSTEMS: Ceases Trading, May Go Into Administration
-----------------------------------------------------------
Caroline Donnelly at ChannelWeb reports that Uniwell Systems has
ceased trading and is expected to be placed into administration
later this week.
The company, according to ChannelWeb, has confirmed that all seven
of its staff has been made redundant and insolvency practitioner
Leonard Curtis has been appointed.
Uniwell Systems Managing Director Jonathan Hutchings, ChannelWeb
notes, cited difficult trading conditions and unfavorable exchange
rates as reasons for its closure. "Trading conditions have been
extremely tough over the past 12 months. The strong performance
of the Japanese Yen has not helped," Mr. Hutchings told
ChannelWeb.
Mr. Hutchings said that the company had been in the process of
restructuring to accommodate for the difficult market conditions,
and had planned to downsize its premises in a bid to cut costs,
according to ChannelWeb. "Unfortunately, that deal fell through
about six months ago," ChannelWeb quoted Mr. Hutchings as saying.
The company has personally notified all of its resellers in the UK
and Ireland about its situation and, in the interim, has advised
them to purchase products directly from the company's head office
in Japan, ChannelWeb adds.
Headquartered in Blackburn, Uniwell Systems specializes in the
distribution of its Japanese parent's Epos hardware and
peripherals.
===============
X X X X X X X X
===============
* EUROPE: Banks Face New Round of Stress-Tests in February
----------------------------------------------------------
Nikki Tait at The Financial Times reports that Olli Rehn, the
European Union commissioner for economic and monetary affairs,
confirmed on Tuesday that a new round of coordinated stress-tests
on European banks would begin in February and needed to include an
assessment of their liquidity.
The FT relates that Mr. Rehn said that the issue had been raised
at the meeting of EU finance ministers in Brussels. Mr. Rehn, as
cited by the FT, said the "scope and methodology" of the new round
of tests was still under discussion, but should be disclosed
shortly.
Mr. Rehn said the Commission firmly believe that "liquidity
assessment needs to be included" and is also pushing for the
results of the tests to be fully disclosed, according to the FT.
Results of the last set of stress-tests were published in late
July and saw 84 of the 91 banks scrutinized pass -- including both
Bank of Ireland and Allied Irish Bank, two of the biggest banks in
Ireland, which have subsequently faltered, the FT discloses.
Those tests were subsequently criticized, with some commentators
suggesting that by focusing on capital alone, the approach was too
narrow, the FT notes.
On Tuesday, Mr. Rehn defended the previous exercise but also said
the establishment of the new EU banking authority -- one of three
pan-EU supervisory authorities which will start operating in
January -- should help bolster the upcoming round of tests,
according to the FT.
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
Dec. 9-11, 2010
AMERICAN BANKRUPTCY INSTITUTE
Winter Leadership Conference
Camelback Inn, a JW Marriott Resort & Spa,
Scottsdale, Ariz.
Contact: 1-703-739-0800; http://www.abiworld.org/
Dec. 2-4, 2010
AMERICAN BANKRUPTCY INSTITUTE
22nd Annual Winter Leadership Conference
Camelback Inn, Scottsdale, Arizona
Contact: 1-703-739-0800; http://www.abiworld.org/
January 26-28, 2011
TURNAROUND MANAGEMENT ASSOCIATION
TMA Distressed Investing Conference
Aria Las Vegas
Contact: http://www.turnaround.org/
Jan. 27-28, 2011
AMERICAN BANKRUPTCY INSTITUTE
Rocky Mountain Bankruptcy Conference
Westin Tabor Center, Denver, Colo.
Contact: 1-703-739-0800; http://www.abiworld.org/
Feb. 3-5, 2011
AMERICAN BANKRUPTCY INSTITUTE
Caribbean Insolvency Symposium
Westin Casuarina Resort & Spa, Grand Cayman Island
Contact: 1-703-739-0800; http://www.abiworld.org/
Feb. 24-25, 2011
AMERICAN BANKRUPTCY INSTITUTE
Valcon
Four Seasons Las Vegas, Las Vegas, Nev.
Contact: 1-703-739-0800; http://www.abiworld.org/
Mar. 4, 2011
AMERICAN BANKRUPTCY INSTITUTE
Bankruptcy Battleground West
Hyatt Regency Century Plaza, Los Angeles, Calif.
Contact: 1-703-739-0800; http://www.abiworld.org/
Mar. 7-9, 2011
AMERICAN BANKRUPTCY INSTITUTE
Conrad Duberstein Moot Court Competition
Duberstein U.S. Courthouse, New York, N.Y.
Contact: 1-703-739-0800; http://www.abiworld.org/
Mar. 10, 2011
AMERICAN BANKRUPTCY INSTITUTE
Nuts and Bolts - Florida
Tampa, Fla.
Contact: 1-703-739-0800; http://www.abiworld.org/
Mar. 10-12, 2011
AMERICAN BANKRUPTCY INSTITUTE
SUCL/ Alexander L. Paskay Seminar on
Bankruptcy Law and Practice
Marriott Tampa Waterside, Tampa, Fla.
Contact: 1-703-739-0800; http://www.abiworld.org/
Mar. 17-19, 2011
AMERICAN BANKRUPTCY INSTITUTE
Byrne Judicial Clerkship Institute
Pepperdine University School of Law, Malibu, Calif.
Contact: 1-703-739-0800; http://www.abiworld.org/
Mar. 31-Apr. 3, 2011
AMERICAN BANKRUPTCY INSTITUTE
Annual Spring Meeting
Gaylord National Resort & Convention Center,
National Harbor, Md.
Contact: 1-703-739-0800; http://www.abiworld.org/
April 27-29, 2011
TURNAROUND MANAGEMENT ASSOCIATION
TMA Spring Conference
JW Marriott, Chicago, IL
Contact: http://www.turnaround.org/
May 5, 2011
AMERICAN BANKRUPTCY INSTITUTE
Nuts and Bolts - New York City
Association of the Bar of the City of New York,
New York, N.Y.
Contact: 1-703-739-0800; http://www.abiworld.org/
May 6, 2011
AMERICAN BANKRUPTCY INSTITUTE
New York City Bankruptcy Conference
Hilton New York, New York, N.Y.
Contact: 1-703-739-0800; http://www.abiworld.org/
June 6, 2011
AMERICAN BANKRUPTCY INSTITUTE
Canadian-American Cross-Border Insolvency Symposium
Fairmont Royal York, Toronto, Ont.
Contact: 1-703-739-0800; http://www.abiworld.org/
June 9-12, 2011
AMERICAN BANKRUPTCY INSTITUTE
Central States Bankruptcy Workshop
Grand Traverse Resort and Spa, Traverse City, Mich.
Contact: http://www.abiworld.org/
July 21-24, 2011
AMERICAN BANKRUPTCY INSTITUTE
Northeast Bankruptcy Conference
Hyatt Regency Newport, Newport, R.I.
Contact: 1-703-739-0800; http://www.abiworld.org/
July 27-30, 2011
AMERICAN BANKRUPTCY INSTITUTE
Southeast Bankruptcy Workshop
The Sanctuary at Kiawah Island, Kiawah Island, S.C.
Contact: 1-703-739-0800; http://www.abiworld.org/
Aug. 4-6, 2011
AMERICAN BANKRUPTCY INSTITUTE
Mid-Atlantic Bankruptcy Workshop
Hotel Hershey, Hershey, Pa.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 14, 2011
AMERICAN BANKRUPTCY INSTITUTE
NCBJ/ABI Educational Program
Tampa Convention Center, Tampa, Fla.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. __, 2011
AMERICAN BANKRUPTCY INSTITUTE
International Insolvency Symposium
Dublin, Ireland
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 25-27, 2011
TURNAROUND MANAGEMENT ASSOCIATION
Hilton San Diego Bayfront, San Diego, CA
Contact: http://www.turnaround.org/
Dec. 1-3, 2011
AMERICAN BANKRUPTCY INSTITUTE
23rd Annual Winter Leadership Conference
La Quinta Resort & Spa, La Quinta, Calif.
Contact: 1-703-739-0800; http://www.abiworld.org/
Apr. 19-22, 2012
AMERICAN BANKRUPTCY INSTITUTE
Annual Spring Meeting
Gaylord National Resort & Convention Center,
National Harbor, Md.
Contact: 1-703-739-0800; http://www.abiworld.org/
July 14-17, 2012
AMERICAN BANKRUPTCY INSTITUTE
Southeast Bankruptcy Workshop
The Ritz-Carlton Amelia Island, Amelia Island, Fla.
Contact: 1-703-739-0800; http://www.abiworld.org/
Aug. 2-4, 2012
AMERICAN BANKRUPTCY INSTITUTE
Mid-Atlantic Bankruptcy Workshop
Hyatt Regency Chesapeake Bay, Cambridge, Md.
Contact: 1-703-739-0800; http://www.abiworld.org/
Nov. 29 - Dec. 2, 2012
AMERICAN BANKRUPTCY INSTITUTE
Winter Leadership Conference
JW Marriott Starr Pass Resort & Spa, Tucson, Ariz.
Contact: 1-703-739-0800; http://www.abiworld.org/
*********
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, Ivy B. Magdadaro, 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 * * *