/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/110114.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, January 14, 2011, Vol. 12, No. 10 Headlines B U L G A R I A * BULGARIA: New Wave of Hotel Bankruptcies Seen in Black Sea Cost C Z E C H R E P U B L I C SAZKA AS: Czech Sports Minister Wants Chief Dismissed D E N M A R K ADSERVINGINTERNATIONAL A/S: Files for Bankruptcy Protection F R A N C E GROUPE LABCO: S&P Assigns 'B+' Rating on Proposed EUR500MM Notes LABCO SAS: Moody's Puts '(P)B3' Rating on Proposed EUR500MM Notes LABCO SAS: Fitch Rates Planned Sr. Secured Notes at 'BB-(exp)' * MOLDOVA: Corporate Liquidations Down in 2010 G E R M A N Y HARLES AND JENTZSCH: Collapses Amid Probe on Dioxin Scare I R E L A N D ANGLO IRISH: Intimidation Claims Have No Basis, High Court Opines LYRATH ESTATE: 2009 Losses Prompt Going Concern Doubt QUINN INSURANCE: Owner May Challenge Group's Administration Order * IRELAND: Over 1,500 Companies 'Failed' in 2010 N E T H E R L A N D S NIELSEN COMPANY: Moody's Puts 'B2' Corporate Family Under Review R U S S I A RUSSNEFT OAO: Creditors Agree to Cut Rate US$6.2 Billion Debt S P A I N GRIFOLS INC: S&P Assigns Prelim. B Rating to US$1BB Unsecured Bond * SPAIN: Prime Minister Vows to Accelerate Clean-Up of Cajas U N I T E D K I N G D O M EROS LABORATORIES: Goes Into Liquidation; 90 Jobs At Risk GARTMORE INVESTMENT: Enters into Merger Deal with Henderson Global KELSO CLO: S&P Withdraws 'B' Ratings on Two Classes of Notes MALBERN WINDOWS & DOORS: Brought Out of Administration R&L PROPERTIES: 207 Pubs Go Into Administration ROYAL BANK: US Court Dismisses Shareholder Class Action SKYKON CAMPBELTOWN: Enters Deal to Keep Turbine Factory Open THE MALT: Goes Into Administration WTA GLOBAL: Brought Out of Administration, 85 Jobs Saved * UK: Corporate Insolvencies Drop 19% in Q4 of 2010, PwC Says X X X X X X X X * BOOK REVIEW: Megamergers - Corporate America's Billion-Dollar ********* =============== B U L G A R I A =============== * BULGARIA: New Wave of Hotel Bankruptcies Seen in Black Sea Cost ----------------------------------------------------------------- Elena Dimitrova at Standart reports that a new wave of hotel bankruptcies is about to sweep the Bulgarian southern Black Sea coast before the start of the new summer season. According to Standart, the bankruptcies are mostly due to bad mortgages and unpaid debts to contractors. Standart notes that real estate agents said there was not a single sold hotel along southern Black Sea coast in 2010. Standart says most of the hotel tenders fail at the end as there are few investors who may pay cash immediately. =========================== C Z E C H R E P U B L I C =========================== SAZKA AS: Czech Sports Minister Wants Chief Dismissed ----------------------------------------------------- Ladka Bauerova at Bloomberg News, citing Hospodarske Noviny, reports that Czech Sports and Education Minister Josef Dobes called for the dismissal of Sazka AS Chief Ales Husak. Bloomberg relates that Mr. Dobes, as cited by the newspaper, said the management of the Czech Sports Association, Sazka's majority shareholder, should also step down. According to Bloomberg, the newspaper noted that saddled with a crippling debt, Sazka may face bankruptcy proceedings. Insolvency Threat As reported by the Troubled Company Reporter-Europe on Jan. 6, 2011, Bloomberg News said Czech financier Radovan Vitek threatened to file an insolvency case against Sazka if the company doesn't pay the CZK830 million (US$44 million) it owes him by Jan. 17. The newspaper said Mr. Vitek is also asking the current Sazka management to step down, according to Bloomberg. Debt Restructuring Proposal On Dec. 27, 2010, The Troubled Company Reporter-Europe reported that Penta Investments Ltd, a Czech and Slovak private equity company, approached Sazkas shareholders with a proposal to buy out the lottery maker and restructure its debt. Penta said in a press release handed out at a press conference in Prague on Dec. 22 that the new investor will have to provide about CZK2 billion (US$103 billion) to CZK3 billion of financial means to Sazka in 2011 to cover its needs and further guarantees to creditors, according to Bloomberg. Penta, as cited by Bloomberg, said its plan to restructure the company would also include asset sales, possibly including the O2 Arena in Prague, the largest sport facility in the country. Sazka AS is a provider of lotteries and sport betting games in the Czech Republic. ============= D E N M A R K ============= ADSERVINGINTERNATIONAL A/S: Files for Bankruptcy Protection ----------------------------------------------------------- Christian Wienberg at Bloomberg News reports that adServingInternational A/S said it has sought bankruptcy protection from its creditors after it failed to obtain refinancing of its bank debt. adServing International A/S is a Denmark-based company engaged in the provision of electronic advertising services. The Company supplies state-of-the-art hosted tools for effective tracking, distribution and management of electronic inventory through an Internet Protocol (IP) carrier. Its offering comprises Traffic management, Outsourcing of sales activities, ROI optimization through business consulting, Graphic services, Support, Backup and Education. The Company's flag product is Proadmin, a software solution for advertisers, publishers and webmasters. As of June 30, 2010, the Company offered its services through local agents in 44 counties, primarily in Denmark, Sweden, Holland and the United Kingdom. During the fiscal year 2009/2010 adServing International A/S divested three subsidiaries, including adServing Danmark A/S, adServing Sverige AB and adServing UK Ltd. =========== F R A N C E =========== GROUPE LABCO: S&P Assigns 'B+' Rating on Proposed EUR500MM Notes ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B+' long-term corporate credit rating to France-based European clinical laboratory operator Groupe Labco S.A.S. (Labco). The outlook is stable. At the same time, S&P assigned its 'B+' issue rating to Labco's proposed EUR500 million senior secured notes maturing in 2018. S&P assigned a recovery rating of '4' to this debt to reflect its expectation of average recovery (30%-50%) in the event of a payment default. The issue and recovery ratings are subject to S&P's review of the final bond documentation. "The ratings reflect our assessment of Labco's financial risk profile as highly leveraged after a series of partly debt-funded, predominantly small-sized, acquisitions since the Company was founded in 2003," said Standard & Poor's credit analyst Olaf Toelke. "They also reflect our view of Labco's fair business risk profile, supported by an expanding underlying market and the Company's increasing presence as one of the industry's consolidators." After the refinancing, Labco's debt is expected to mainly consist of the EUR500 million proposed notes. Labco's highly-leveraged financial risk profile is reflective of management's aggressive acquisition policy, in S&P's view. Owing to about 70 mainly bolt-on acquisitions since 2003, Labco's fully- adjusted leverage is expected to have been about 5.5x at year-end 2010, as expressed by the ratio of pension- and lease-adjusted debt to EBITDA. Furthermore, S&P expects this ratio to only gradually decline over subsequent years, reflecting management's continued preference for external growth. Labco is among the leading operators of laboratories, offering clinical diagnostic services on a pan-European basis. The Company is represented in seven countries and has built market leading positions in Portugal and Spain, and it is number two in France. Labco is currently entering the U.K. in a joint venture with Sodexo. Its market shares are, however, still relatively modest at about 12%-13% in the Iberian countries and about 5% in France, reflecting the largely fragmented supply structure. The ratings are supported by S&P's assessment of Labco's fair business risk profile, which is mainly supported by good underlying market conditions, the Company's strong and improving market position, and its relatively high profitability. The group's EBITDA margin, at about 20% for the first nine months of 2010, shows the business model's ability to yield competitive results. This margin compares well with that of much larger U.S.- based peers Quest Diagnostics Inc. (BBB+/Stable/--) and Laboratory Corp. of America Holdings (BBB+/Stable/--). "The outlook is stable because of what we regard as Labco's sound positioning in an expanding underlying market," said Mr. Toelke. "It also reflects our belief that leverage is unlikely to improve significantly over the next two years." S&P considers coverage of gross cash interest charges by EBITDA of 2.5x and a leverage ratio of about 5.5x to be commensurate with the present ratings. LABCO SAS: Moody's Puts '(P)B3' Rating on Proposed EUR500MM Notes ----------------------------------------------------------------- Moody's Investors Service assigned a provisional (P)B2 Corporate Family Rating and a provisional (P)B2 Probability of Default Rating to Labco S.A.S. Moody's has also assigned a provisional (P)B3 rating to the company's proposed EUR500 million senior secured notes. The outlook is stable. This is the first time that Moody's has rated Labco. Moody's issues provisional ratings in advance of the final sale of securities and these reflect Moody's credit opinion regarding the transaction only. Upon closing of the refinancing and a conclusive review of the final documentation, Moody's will endeavor to assign definitive ratings to Labco. A definitive rating may differ from a provisional rating. The ratings assigned to Labco assume a successful refinancing of the company's current financing package. Although the company's high leverage constrains the (P)B2 CFR assigned to Labco, the CFR reflects (i) its position as one of Europe's largest players in the highly fragmented European clinical laboratory services market and more particularly its leading positions in France and Iberia; (ii) the company's good profitability and business model which allows for the benefits of scale and derivation of synergies; (iii) relatively favorable growth prospects in terms of volume; and (iv) resilience to economic downturns. The positives are, in addition to high leverage, balanced by (i) an overall limited size; (ii) regulatory risks, in particular relating to potential tariff-cuts as governments seek to contain healthcare expenditures; and (iii) a complex organizational structure in France. The stable outlook reflects (i) a business-profile which, despite the risk of price cuts, demonstrates relatively good visibility; and (ii) Moody's expectation of continued positive free cash flow generation. Through its solid positioning as one of Europe's largest private clinical laboratory operators, Labco has established a regional business model that allows it to reap benefits of scale by acting as a consolidator and exploit synergy-potential particularly present in fragmented markets such as France and Italy. The company's strong positioning in France has allowed for the development of regional platforms that have enhanced profit margins and contributed to an overall good profitability-profile. Labco's markets are expected to benefit from favorable trends in demographics and the diagnostics sector, both of which should continue underpinning volume growth going forward as an aging population may require more tests and patients are treated at an earlier stage. In most countries where Labco is present, the industry is subject to regulatory constraints, in terms of issues directly affecting tariffs, but also through the legal framework in which companies have to operate. In particular, the regulatory environment in France has led to Labco establishing a complex structure to deal with the imposed constraints so that it can maintain economic control over its subsidiaries allowing it to consolidate the French operations and upstream cash flows despite not being in control of the majority of voting rights. In this context, Moody's notes that the company's ability to pool or dividend-up cash flow generated by its French laboratories could be impacted in case of regulatory challenges or changes in the regulatory framework requiring modifications of the company's French structure. Moody's recognizes, however, that the industry may be moving more towards liberalization, which at some point could alleviate the regulatory constraints related to ownership. Moody's notes that Labco did not fully consolidate its French franchise until mid 2008 and that the statutory accounts of the company therefore offer only a limited track-record of the company's historical performance. While Moody's views the visibility of patient-flow as being relatively high in Europe, the expected continued pressure on healthcare reforms throughout the continent represents a downside risk as tariffs may come under further pressure, although Moody's notes that clinical laboratory services only represent a small share of overall healthcare-costs. The agency also views the company's significant exposure to the French market -- which benefits from overall higher tariffs -- as a risk factor, because changes to the regulatory environment could significantly impact the company's performance. Moody's considers the expected pricing pressure to be mitigated by continued volume-growth. An important element to Labco's business model has been to undertake bolt-on acquisitions that enable it to derive important synergies, because it can then implement regional technical platforms that provide clinical diagnostics for several laboratories at the same time. While acknowledging that Labco has successfully implemented this model in the past, Moody's nevertheless considers that Labco's acquisitive nature represents a potential risk-factor, if the company faces unexpected obstacles in the process of integration. Moody's would expect Labco's leverage to remain high over the intermediate term as the company is expected to continue to invest both its free cash flow and proceeds from its EUR125 million revolving credit facility into small accretive acquisitions in order to drive company growth. An eventual improvement in credit metrics will therefore most likely depend on the company's ability to derive expected synergies, allowing cash flows to increase. The company's Debt/EBITDA, as per Moody's definition, is expected to slightly decline to around 5.5x over the next two years, from around 6.0x. Labco's liquidity profile is expected to remain adequate after the refinancing as it will continue generating free cash flow and has no upcoming debt maturities. Moreover, Labco's solid cash balance of approximately EUR90 million as at 30 September 2010 and its undrawn revolver should provide a further cushion, if necessary. Moody's nevertheless notes that Labco's headroom under its financial covenants is restrictive. While deviations in operating performance may lead to a further tightening of covenant headroom, Moody's takes comfort from the company's flexibility to adjust its acquisition activity, and thus limit increases in net debt levels, if needed. The (P)B3 rating (LGD 4, 58%) assigned to the EUR500 million senior secured notes is one notch below the (P)B2 CFR. The rating of the notes reflects its ranking behind the sizeable EUR125 million super senior revolving credit facility, which is signed and guaranteed by Labco S.A.S. While both instruments benefit from the same guarantee and security package, the latter consisting of pledges over shares of certain group entities and certain intercompany loans, the revolving credit facility will benefit from an intercreditor agreement with enforcement action relating to the guarantees or security which result in the RCF being ahead of the notes in the defined Moody's waterfall. As seen in other transactions, Moody's notes that -- depending on the insolvency regime -- certain limitations exist regarding the enforceability of the guarantees and the security interest, e.g. in France, where guarantees by French guarantors are limited to an amount equal to the proceeds from the offering of the notes that the issuer has applied for the direct or indirect benefit of French guarantors. Further limitations include for example restrictions on the ownership of French laboratory companies, which might limit the full enforceability of the corresponding share pledges. Rating assignments: Labco S.A.S.: -- Corporate Family Rating: (P) B2 -- Probability of Default Rating: (P) B2 -- Senior Secured Regular Bond/Debenture: (P) B3 (LGD 4 - 58%) An upgrade of the corporate family rating to B1 could be considered if the company's leverage ratios improve, as exemplified by a ratio of Debt/EBITDA improving to around 5x. Negative rating pressure could arise if (i) the leverage remains above 6.0x for an extended period of time, (ii) the company's liquidity profile or leeway under financial covenants weakens or (iii) if profitability weakens, e.g. as a result of changes in regulation or tariff cuts. The principal methodologies used in rating Labco were "Global Business and Consumer Service Industry" published in October 2010 and "Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA" published in June 2009. Other methodologies and factors that may have been considered in the process of rating this issuer can also be found on Moody's website. Labco is a pan-European clinical laboratory services provider. The company operates more than 230 laboratories across six different European countries and mainly performs routine-tests. The company generated revenue of EUR424 million in 2009. LABCO SAS: Fitch Rates Planned Sr. Secured Notes at 'BB-(exp)' -------------------------------------------------------------- Fitch Ratings assigned France-based clinical laboratory services company Labco SAS a Long-term Issuer Default rating of 'B+'. The Outlook on the Long-term IDR is Stable. Fitch has also assigned Labco's planned senior secured notes an expected rating of 'BB-(exp)' and an expected Recovery Rating of 'RR3(exp)'. It further assigned Labco's planned super senior revolving credit facility an expected rating of 'BB(exp)' and an expected Recovery Rating of 'RR2(exp)'. The final ratings on the notes and facility are contingent upon receipt of final documents conforming to information already received by Fitch. Potential failure to reduce existing bank debt below levels expected by Fitch could lead to debt amounts of prior ranking or maturing debt remaining in place, which could adversely affect the rating on the planned instruments. In addition, the instrument rating would be affected by any adverse IDR movement arising from a materially higher-than-expected interest rate on the planned notes. The ratings reflect Labco's leading position in European clinical laboratory servicing, a market that is stable, non-cyclical and underpinned by favorable underlying demographic and socio-economic conditions. Labco's geographical diversification also makes it less reliant on a single country's health care system. Labco benefits from high EBITDA group margins. The ratings also reflect the industry's moderate barriers to entry, Labco's weak free cash flow given its high interest burden, its low organic growth as a result of reimbursement pressures from payers and a potential increase in competition for acquisition targets leading to higher purchase prices. Labco plans to continue debt-funded acquisitions as the fragmented laboratory testing industry consolidates. Its experience to date in executing multiple acquisitions and improving margins on new acquisitions help underpin the ratings. This should also help counteract the estimated dilutive margin impact of organic UK expansion and acquisitions in lower-margin geographies. Labco's business model is capable of delivering strong cash flow generation given low capital expenditure and working capital requirements, combined with high EBITDA margins. However, free cash flow is weak due to the level of interest expense. Fitch expects interest/EBITDA cover to be at the outer limits of the 'B+' rating level. The ratings are further constrained by slow deleveraging on the opening net debt/EBITDA (adjusted for acquisitions) approaching 5x. The expected 'RR3(exp)' rating on the planned senior secured notes reflects higher-than- average recovery expectations (51%-70%) in the event of a default. Debt at Labco benefits from guarantees from the majority of cash-generating companies (expected to represent more than 70% of EBITDA). Labco is expected to retain only a small amount of existing debt in its subsidiary companies, although any material increase from this level could lead to lower recovery estimates on the senior secured notes. * MOLDOVA: Corporate Liquidations Down in 2010 ---------------------------------------------- INFOTAG reports that State Registration Chamber representative Sergiu Oleinic stated that about 3,200 Moldovan companies went into liquidation in 2010, which is about 100 entities less than in 2009. Specialists noted, according to INFOTAG, "the decision of owners to close down their businesses proves that they face financial difficulties." ============= G E R M A N Y ============= HARLES AND JENTZSCH: Collapses Amid Probe on Dioxin Scare --------------------------------------------------------- Deutsche Welle reports that Harles and Jentzsch GmbH, the company accused of supplying dioxin-laced fat to the animal-feed industry in Germany, filed in court for insolvency on Wednesday. According to Deutsche Welle, the company is under investigation by prosecutors and could also potentially face vast civil claims from 5,000 German farms that were closed down during the dioxin scare. Harles and Jentzsch has been accused of supplying around 3,000 tons of cheap fat intended for industrial use as an ingredient for feed intended for chickens and pigs, Deutsche Welle relates. Deutsche Welle says some 400 farms are still closed. Harles and Jentzsch GmbH is an animal feed producer based in Uetersen, north-west of Hamburg. ============= I R E L A N D ============= ANGLO IRISH: Intimidation Claims Have No Basis, High Court Opines ----------------------------------------------------------------- The Irish Times reports that the High Court's Mr. Justice Peter Kelly has found no basis for claims that a senior Anglo Irish Bank official intimidated a financial expert to prevent him from giving evidence for a businessman in an action over alleged fraudulent misrepresentation by the bank and another company relating to an investment fund for two hotels in New York. The bank and Michael O'Sullivan, lending director of Anglo Irish Bank Ireland, strongly rejected the claims, The Irish Times recounts. Mary Carolan at The Irish Times relates that the Commercial Court was told last month of claims of intimidation by Mr. O'Sullivan of expert Tom Barry, a former head of corporate banking with Allied Irish Banks, who initially agreed to provide a witness statement for businessman Gerard McCaughey over the New York investment fund but who withdrew his intention in late November 2010. Thomas Norris, solicitor for Mr. McCaughey, said Mr. Barry had told the solicitor that Anglo had obtained a substantial judgment against him (Mr. Barry) over property dealings in London, The Irish Times relates. Having made inquiries informally with "people" in Anglo, Mr. Barry had said he was told submitting a witness statement and attending court would have "dire consequences" for him, Mr. Norris said, as cited by The Irish Times. In a December 20 affidavit, Mr. Norris said he was informed by another man that Mr. Barry had named Mr. O'Sullivan as the Anglo official with whom he had the relevant conversation, The Irish Times discloses. Mr. Justice Kelly said that based on the evidence, the claims had no basis, The Irish Times notes. In effect, Mr. O'Sullivan has been vindicated. 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 non-deferrable 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. LYRATH ESTATE: 2009 Losses Prompt Going Concern Doubt ----------------------------------------------------- The Irish Times relates that Lyrath Estate Hotel's reported losses for the year 2009 "may cast significant doubt about the company's ability to continue as a going concern." Lyrath Hotel incurred more than million in losses in 2009, according to Gordon Deegan at The Irish Times, citing documents filed by the company's auditor. Net losses before tax of EUR1,063,244 are confirmed by the company's Tralee-based auditors, Kelly Foley Co, in a two-page report, The Irish Times relates. Patrick Joyce, the hotel's general manager, on Tuesday disclosed the hotel had also recorded a loss last year, but said losses for the first five years of operation had always been anticipated, The Irish Times notes. Lyrath Estate Hotel is a private unlimited company based in Kilkenny, Ireland. QUINN INSURANCE: Owner May Challenge Group's Administration Order ----------------------------------------------------------------- Laura Noonan at Independent.ie reports that Quinn Insurance owner Sean Quinn may challenge the company's descent into administration if Anglo Irish Bank insists on excluding the businessman's family from a bid for the stricken insurer. This development comes ahead of a crunch meeting between Anglo executives and Mr. Quinn's lieutenants, where the Quinn contingent is expected to urge Anglo to reconsider a joint proposal to take over Quinn Insurance Limited, according to the report. As reported in the Troubled Company reporter-Europe on January 5, 2011, The Sunday Business Post Online said Anglo Irish Bank excluded businessman Sean Quinn from taking control of Quinn Insurance. Mr. Quinn believed he was part of a joint bid for the insurance business alongside Anglo and U.S. insurance firm Liberty Mutual, according to The Sunday Business Post Online. The final bid submitted for Quinn Insurance in recent weeks, however, did not include Mr. Quinn, leading to a significant disagreement between him and the bank, the report noted. Anglo Irish is owed EUR2.8 billion by the Quinn Group and the Quinn family, and is keen on protecting its interests by having some ownership of Quinn Insurance, according to The Sunday Business Post Online. The report noted Mr. Quinn had argued he could repay all his debts within eight years if he was left in control of the insurance firm, but the bank rejected that view. Independent.ie discloses that Anglo Irish subsequently decided to pursue a bid with U.S. insurance giant Liberty Mutual. Kevin Lunney, a key lieutenant of Mr. Quinn and a former general manager of QIL, has said the Quinns are urging Anglo to reconsider the bid decision, according to Independent.ie. If the Quinn family is unable to convince Anglo Irish to revive the joint bid, the family would "have to give consideration to" using a legal opinion to challenge QIL's original descent into administration, Independent.ie quotes Mr. Lunney as saying. Independent.ie discloses that a legal opinion from a UK firm revealed that the Financial Regulator should not have concluded that the EUR1.2 billion in guarantees offered by QIL subsidiaries impinged on the insurer's solvency. The report relates that the impact of those guarantees on QIL's solvency was a key reason for the Financial Regulator's decision to put the insurer into administration last April. Mr. Lunney, Independent.ie states, said that the Quinn family's position might change if it was given a "satisfactory explanation" for why its bid was jettisoned in favor of a bid with Liberty Mutual. The Quinns believe their joint Anglo bid would have secured full repayment of the EUR2.8 billion debt within seven years, by giving Anglo 100pc of QIL's earnings and then selling the company as well as other Quinn assets, Independent.ie adds. 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. 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. * IRELAND: Over 1,500 Companies 'Failed' in 2010 ------------------------------------------------ Michael O'Regan at Irish Times reports that Minister for Finance Brian Lenihan told the Dail that more than 1,500 Irish firms went into liquidation, receivership, or examinership in 2010. Mr. O'Regan said a large number of the 'failed' companies were in the construction and other related sectors, according to Irish Times. "This is in part due to the rebalancing of the Irish economy away from unsustainable growth dominated by construction in recent years," Irish Times quoted Mr. O'Regan as saying. Irish Times notes that Labor spokeswoman Joan Burton said there was fear and despair in towns, cities and villages all over Ireland for businesses that were in very serious trouble, particularly in the retail sector, the hotel and license trade and tourism. Ms. Burton said the rents businesses were paying were such that they were not capable of being met under the current deterioration in trade, according to the report. For the past two and a half years, Ms. Burton added, Labor had asked the Government to change the upward-only rent review rule on existing leases so that businesses could negotiate lower rents, Irish Times notes. Mr. Lenihan said that the national recovery plan provided a blueprint for Ireland's return to sustainable economic growth, identifying areas of activity which would provide increased employment opportunities, according to Irish Times. Irish Times adds that Mr. Lenihan said that after experiencing two years of significant falling output, it was now clear that growth had returned during the latter part of last year. ===================== N E T H E R L A N D S ===================== NIELSEN COMPANY: Moody's Puts 'B2' Corporate Family Under Review ---------------------------------------------------------------- Moody's Investors Service had put the B2 Corporate Family and PD ratings of The Nielsen Company B.V.'s as well as bank loan and bond ratings at Nielsen and its subsidiaries, Nielsen Finance LLC and Nielsen Finance Co under review for possible upgrade. This is prompted by the fact that Nielsen's indirect holding company Nielsen Holdings B.V. has started a road show for an initial public offering following an updated S-1 filing with the SEC. The updated S-1 filing indicates that Nielsen Holdings intends to use most of the anticipated net proceeds from the issue of common equity in the IPO to repay certain of the group's existing indebtedness. Moody's expects debt to be sustained at the reduced level. Should the IPO proceed as currently described and debt be reduced as outlined in the filing, Nielsen's CFR and PDR could be upgraded by up to two notches. Following a successful IPO, CFR and PDR for the Nielsen group will be moved to Nielsen Holdings. Existing bond ratings could also be upgraded by up to two notches while the senior secured bank facilities would be upgraded by no more than one notch, depending on the CFR. Moody's would expect to close the review following the conclusion of the IPO process, which is currently expected for late January. The last rating action was on October 25, 2010, when a definitive Caa1 rating was assigned to the issue of senior notes due 2018 via Nielsen's subsidiaries, Nielsen Finance LLC and Nielsen Finance Co. Nielsen's ratings were assigned by evaluating factors S&P believes are relevant to the credit profile of the issuer, such as i) the business risk and competitive position of the company versus others within its industry, ii) the capital structure and financial risk of the company, iii) the projected performance of the company over the near to intermediate term, and iv) management's track record and tolerance for risk. These attributes were compared against other issuers both within and outside of Nielsen's core industry and Nielsen's ratings are believed to be comparable to those of other issuers of similar credit risk. Moody's Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Active in approximately 100 countries, with headquarters in Diemen, The Netherlands and New York, USA, The Nielsen Company B.V. is a global information and measurement company. =========== R U S S I A =========== RUSSNEFT OAO: Creditors Agree to Cut Rate US$6.2 Billion Debt ------------------------------------------------------------- Torrey Clark at Bloomberg News reports that OAO Russneft said in an e-mailed statement on Wednesday that the company agreed with its largest creditors, Glencore International AG and OAO Sberbank, on lowering the rate on US$6.2 billion of debt to 9% and extending the maturity to 2020. RussNeft' NK OAO -- http://www.russneft.ru/-- is a Russia-based vertically integrated oil company. Its main area of activity is crude oil extraction. The Company is comprised of 30 productive assets, three refineries and a petrol stations network located in 17 regions of Russia and the Commonwealth of Independent States. RussNeft' NK OAO covers Western Siberia, Tomsk, Novosibirsk, Ulyanovsk, Penza, Volgograd, Bryansk, Smolensk, Vologda, Kirovsk, Saratov, Orenburg Region, Krasnodar Region, Udmurtiya, Komi and Belarus. The Company is developing more than 170 oil fields. The total extractable reserves of RussNeft'NK OAO exceed 630 million tons, and the annual extraction reaches 17 million tons of crude oil. The Company has launched its own oil loading terminal in Bryansk Region. It is headquartered in Moscow, Russian Federation. ========= S P A I N ========= GRIFOLS INC: S&P Assigns Prelim. B Rating to US$1BB Unsecured Bond ------------------------------------------------------------------ Standard & Poor's Ratings Services assigned its preliminary 'B' long-term issue rating to the proposed US$1.1 billion unsecured bond due 2018 to be issued by Grifols Inc. upon closing of the acquisition of U.S.-based biopharmaceuticals Company Talecris Biotherapeutics Inc. Grifols Inc. is the fully owned U.S. subsidiary of Spanish health care group Grifols S.A. (Grifols; preliminary BB-/Positive/--). The preliminary issue rating is two notches lower than the preliminary corporate credit rating on the parent. At the same time, Standard & Poor's assigned its preliminary recovery rating of '6' to the bond, reflecting its expectations of negligible (0%-10%) recovery for bondholders in the event of a payment default. The preliminary issue and recovery ratings on the US$1.1 billion unsecured bond are the same as those S&P assigned to Grifols' US$1.1 billion unsecured bridge-to-bond facility on July 20, 2010. S&P will withdraw the rating on the bridge facility upon successful completion of the bond issuance. S&P's existing preliminary 'BB' long-term issue rating on Grifols' proposed senior secured credit facilities is unchanged, as is its preliminary recovery rating of '2' on these facilities, indicating its expectation of substantial (70%-90%) recovery for lenders in the event of a payment default. The ratings on the unsecured bond and secured credit facilities are based on preliminary information and are subject to S&P's review of the final documentation. In the event of any changes to the amount and terms of the unsecured bond or senior secured facilities, the issue and recovery ratings on all instruments may be subject to further review. The US$1.1 billion bond issue is part of the financing that Grifols has put in place to finance its acquisition of Talecris. The full financing consists of US$3.4 billion in senior secured credit facilities--comprising a US$1.5 billion term loan A, a US$1.6 billion term loan B, and a US$300 million revolving credit facility (RCF)--and the US$1.1 billion unsecured bond. All of the credit facilities--taken on by both Grifols and Grifols Inc.--are secured by fixed and floating charges over most of Grifols' assets and guaranteed on a senior secured basis by Grifols and its material subsidiaries. The bond is unsecured and guaranteed on an unsecured basis by the same guarantors as those of the credit facilities. Since the acquisition of Talecris is still awaiting regulatory approval and, therefore, has yet to be completed, the bond, according to S&P's understanding, will initially be issued by a Company outside the Grifols group, and the issuance proceeds will be placed in an escrow account. S&P understands that if the acquisition is successfully completed, Grifols Inc. will then assume the obligations under the bond. If the acquisition is unsuccessful, which S&P views as unlikely, the bond will be redeemed at 101%. S&P understands that the process of obtaining regulatory approval from the U.S. Federal Trade Commission for Grifols' acquisition of Talecris is in advanced stages. The 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. Recovery Analysis The preliminary issue rating on the proposed US$1.1 billion unsecured bond is 'B', two notches below the proposed corporate credit rating on Grifols. The preliminary recovery rating on this instrument is '6', reflecting S&P's expectation of negligible (0%- 10%) recovery for bondholders in the event of a payment default. The preliminary issue rating on the proposed senior secured bank facilities is 'BB', one notch above the corporate credit rating on Grifols. The preliminary recovery rating on this instrument is '2', reflecting its expectation of substantial (70%- 90%) recovery for lenders in the event of a payment default. Recovery prospects for all of the above debt are supported by S&P's valuation of Grifols as a going concern, by its view of the comprehensive security and guarantee package provided to the senior secured lenders, and by the amortizing debt structure. In S&P's opinion, recovery prospects are constrained by Grifols' post-default exposure to the Spanish insolvency regime, which the rating agency views as relatively unfavorable for creditors. However, in S&P's opinion, this exposure is partially mitigated by Grifols' significant operations and assets in the U.S., where most of the debt is located. S&P believes that an insolvency filing, if required, could occur in the U.S. rather than in Spain. S&P views the U.S. insolvency regime as rather favorable for creditors. The recovery rating on the unsecured bond further reflects its subordinated position within the capital structure. In order to determine recoveries, S&P simulates a default scenario. S&P's hypothetical default scenario comprises a significant decline in revenues and margins stemming from a simulated decline in selling prices and hypothetical product contamination that would damage Grifols' reputation. Under this scenario, Grifols defaults in 2014, with EBITDA having declined by about 36% to US$495 million. S&P's valuation of Grifols as a going concern is supported by the rating agency's view of the group's strong market position in an industry where the number of players is limited and the barriers to entry are fairly high. S&P has calculated a gross stressed enterprise value of about US$3,210 million at its simulated point of default. From S&P's gross enterprise value of US$3,210 million, the ratinge agency deducts about US$225 million of priority enforcements costs, leading to a net stressed enterprise value of about US$2,985 million. S&P then subtracts about US$105 million of priority liabilities (nonrecourse factoring). This leaves about US$2,880 million of residual value available to the senior secured lenders. S&P estimates that there will be about US$3,180 million of senior secured debt outstanding at the time of default, comprising the amortized term loans A and B, the fully drawn RCF, and prepetition interest. This results in coverage in the 70%-90% range for the senior secured lenders, hence S&P's recovery rating of '2' on the secured credit facilities, which takes into account Grifols' exposure to what it deems to be a relatively unfavorable insolvency regime. Consequently, S&P estimates that there will be negligible (0%-10%) value left for the subordinated bondholders (totaling US$1,150 million, including prepetition interest), hence its recovery rating of '6' on the unsecured bond. * SPAIN: Prime Minister Vows to Accelerate Clean-Up of Cajas ------------------------------------------------------------ Jonathan House and Sara Schaefer Munoz at Dow Jones Newswires report that as neighboring Portugal seems to move inexorably toward requesting a bailout, Spanish Prime Minister Jose Luis Rodriguez Zapatero pledged to accelerate the cleanup of his country's network of savings banks known as cajas. According to Dow Jones, this means the cajas for the first time will disclose the extent of their exposure to troubled real-estate and construction loans, a move that could trigger injections of government funds into some of the banks. The cleanup effort is part of Spain's attempt to convince investors it isn't another Portugal or Ireland, Dow Jones says. The disclosures will include collateral on loans, loan-to-value ratios, repayment histories and provisioning levels, Dow Jones discloses. The cajas must also reveal detailed information on their financing needs, Dow Jones notes. This will be the first step in determining if the banks need more capital, according to Dow Jones. Spain has injected around EUR11 billion (US$14.25 billion) into its banking sector, equal to around 1% of gross domestic product and much less than in most other developed countries during the crisis, Dow Jones relates. But investors believe losses are being hidden, especially at the unlisted cajas, which control half of the country's lending business but have complex ownership structures and disclose less financial data than their listed peers, Dow Jones states. Spanish authorities have sought to limit the cost of the banking- sector cleanup by forcing ailing institutions into mergers with stronger ones, Dow Jones notes. The number of institutions in the bloated cajas sector has been cut to 17 from 45, with the FROB providing funds to cover capital shortfalls, Dow Jones discloses. Furthermore, the government overhauled regulations to allow the cajas -- controlled by employees, depositors and local governments -- to become joint stock companies and list on the stock market, Dow Jones recounts. =========================== U N I T E D K I N G D O M =========================== EROS LABORATORIES: Goes Into Liquidation; 90 Jobs At Risk --------------------------------------------------------- Lincolnshire Echo reports that Eros Laboratories Ltd has gone into liquidation with 90 jobs at risk. The company's employees were told earlier this week the future of their jobs was uncertain, according to the report. The Echo relates that the company's green gates are now closed and a sign has been put up which states that the business is in liquidation and offers alternative arrangements for pending deliveries and collections. According to the Echo, representatives from Job Centre Plus have been on site to offer advice and information on how to claim benefits. But the leader of North Kesteven District Council, Marion Brighton, said the authority would be on-hand to help employees take the next step, the Echo adds. "We are committed to creating a resilient and diverse economy and therefore, where appropriate, we will work with our partners and Job Centre Plus to support the business, its employees and all those potentially affected," Ms. Brighton told the Echo. "In the immediate term, the authority is keen to work with the company and the administrator to see how it can help mitigate the effects of the closure." Michael Self, Lincolnshire's regional organizer for the Federation of Small Businesses, told the Echo that if the Metheringham company were to leave it would leave a big gap in the area's economy. Based in Metheringham, near Lincoln, Eros Laboratories Ltd specialises in alcohol-based products such as body sprays, cream, lotions and aftershave. Eros Laboratories Ltd is a subsidiary of Rochmills Group. GARTMORE INVESTMENT: Enters into Merger Deal with Henderson Global ------------------------------------------------------------------ Miles Johnson and Lina Saigol at The Financial Times report that Henderson Global Investors has agreed to buy Gartmore for GBP366 million in a rescue merger that ends the independence of the crisis-hit fund manager a little more than a year after it listed on the London stock market. According to the FT, the combined group will create one of the UK's largest retail asset managers, with assets of GBP78.1 billion, and will see the Gartmore name phased out by the summer. The FT relates that Henderson and Gartmore's boards said they had unanimously recommended the deal to shareholders, with Gartmore fund managers representing 84% of its assets under management agreeing to stay with the group, allaying fears of key staff defecting. Andrew Formica, Henderson's chief executive, said that no decision had been made on how many of Gartmore's 300 staff would lose their jobs in the merger, the FT notes. Under the deal, Gartmore shareholders will receive two Henderson shares for every three Gartmore shares, the FT discloses. Henderson is also taking on Gartmore's net debt of GBP49.5 million, the FT states. The offer values Gartmore's equity at 100p a share, based on Henderson's closing share price of 151p on Wednesday, up 9.2% on the day. As reported by the Troubled Company Reporter-Europe, the FT said Gartmore has been rocked by a series of high-profile staff departures amid which its shares collapsed by more than 50% from a listing price of 220p. That made it one of the worst-performing stock market listings in Europe since the onset of the financial crisis, according to the FT. Guillaume Rambourg, who co-managed Gartmore's hedge fund business with Roger Guy, was suspended in March for breaching internal trading rules, later resigning from the company to concentrate on fighting a Financial Services Authority investigation into the incident, the FT disclosed. Gartmore is an independent fund manager, offering a wide range of investment products and services, tailored to meet the varying needs of both retail and institutional clients. It has offices located in London, Tokyo, Boston, Madrid and Frankfurt. KELSO CLO: S&P Withdraws 'B' Ratings on Two Classes of Notes ------------------------------------------------------------ Standard & Poor's Ratings Services withdrew its ratings on five classes of notes issued by Kelso CLO 2008 Ltd. The rating action follows confirmation from the collateral administrator that the issuer fully repaid all rated notes on Jan. 7, 2011. Kelso CLO 2008's legal final maturity date falls in January 2016. However, the transaction may redeem early under certain circumstances. Kelso CLO 2008 is a collateralized debt obligation (CDO) incorporating both synthetic and cash flow features. Payments on each class of notes are primarily supported by collateral deposited in the transaction's deposit account and class-specific credit default swaps (CDSs), all referencing the same underlying portfolio of corporate loan obligors. The issuer paid the net proceeds of note issuance into the deposit account when the transaction closed in December 2008. The early redemption of the notes follows notification sent in December 2010 by Kelso CLO 2008's swap counterparty that it would exercise its option to terminate each class-specific CDS on the transaction's payment date in January 2011. Under the terms and conditions of the notes, the termination of the swaps triggers early repayment of the notes. Ratings List Rating Class To From Kelso CLO 2008 Ltd. GBP186 Million Floating-Rate Notes and Subordinated Notes Ratings Withdrawn A NR AA (sf) B NR BBB (sf) C NR BB (sf) D NR B (sf) E NR B- (sf) NR--Not rated. MALBERN WINDOWS & DOORS: Brought Out of Administration ------------------------------------------------------ Manchester Evening News reports that Malbern Windows and Doors was been bought out of administration, saving 70 jobs. As reported in the Troubled Company Reporter-Europe on January 6, 2011, Business Sale related that Malbern Windows & Doors has been placed in administration for the second time in under two years. The report noted that Malbern Windows & Doors has called in Sarah Bell and David Whitehouse from the Manchester office of insolvency firm MCR to act as administrators. Manchester Evening News notes that Malbern Windows and Doors has sites in Denton, Tameside, and Heysham, Lancashire, which have now been split into two divisions. The report relates that the Denton arm has been sold as a going concern to Plastic Window Systems and its 18 staff has been retained. It will continue under the Malbern name and all outstanding orders will be honored, according to Manchester Evening News. Manchester Evening News cites that the Heysham-based Conservatory Coloured Glass division, which specializes in tinted windows, has been bought by Preston-based Lancashire Double Glazing, saving another 53 jobs. Sarah Bell, of administrators MCR, said that the agreed deal would result in the greatest return to creditors and maximize repayments to debtors, Manchester Evening News adds. Tameside-based Malbern Windows & Doors is a home improvement business, which operated from the 80,000 sq. ft. Malbern Industrial Estate and employed 160 people under the leadership of Chairman Stuart Kenyon. The firm supplies uPVC windows and doors. R&L PROPERTIES: 207 Pubs Go Into Administration ----------------------------------------------- Hamish Champ at the Publican reports that accountancy firm Deloitte has been appointed administrator to 207 pubs previously owned by Robert Tchenguiz's R20 property group. The pubs, all tenanted, are held by a number of companies under the R&L Properties banner and are spread across the UK, although the majority is in Scotland, the report cites. The pubs were once managed by Scottish & Newcastle Pub Company on behalf of Mr. Tchenguiz. They were then moved over to be managed on a day-to-day basis by LT Management Services and recovery outfit Licensed Solutions three months ago, according to the Publican. Neville Kahn, a partner in the Reorganization Services practice at Deloitte and one of the joint administrators to the package of pubs, said that the businesses will continue to trade as usual while a buyer is sought, according to the Publican. The report relates that the pubs will be managed in the meantime by LT Pub Management, headed by Billy Buchanan, and Licensed Solutions. The Publican notes that the two firms will run the sites until a buyer is found or an alternate exit strategy is decided upon. The pubs' bank is believed to be Barclays Capital, although other divisions of the bank may have been involved in lending to R&L, the report says. The Publican adds that the level of gearing at the company, plus the trading environment, is said to have contributed to the move into administration. R&L Properties manages pubs across United Kingdom. ROYAL BANK: US Court Dismisses Shareholder Class Action ------------------------------------------------------- Sharlene Goff at The Financial Times reports that a U.S. court has dismissed claims from hundreds of Royal Bank of Scotland's shareholders who lost money following the UK government's bail-out of the bank in 2008. The FT relates that Manhattan District Judge Deborah Batts threw out claims against RBS after ruling that investors were not permitted to use US courts to file charges as they had purchased the securities in the UK. British investors in particular have tried to piggyback on the US class action system, which allows one lawsuit to be filed on behalf of a large group of claimants, the FT points out. The court based its judgment on a previous ruling, which blocked an Australian investor from seeking damages against National Australia Bank as the shares in the company were listed outside the US, the FT says. The dismissal of the claims will block UK shareholders from pursuing further action through the US courts and reduces RBS's potential liability under US law, the FT states. However, the bank still faces claims relating to US$5 billion of preference shares it issued in the US, the FT notes. The claims against RBS were filed by investors who lost billions of pounds when shares they had bought in the bank plummeted in value in the months leading up to its part nationalization, the FT recounts. Their claims center around the information provided to them by the bank ahead of its GBP12 billion (US$19 billion) rights issue in 2007, the FT says. About RBS The Royal Bank of Scotland Group plc (NYSE:RBS) -- http://www.rbs.com/-- is a holding company of The Royal Bank of Scotland plc (Royal Bank) and National Westminster Bank Plc (NatWest), which are United Kingdom-based clearing banks. The company's activities are organized in six business divisions: Corporate Markets (comprising Global Banking and Markets and United Kingdom Corporate Banking), Retail Markets (comprising Retail and Wealth Management), Ulster Bank, Citizens, RBS Insurance and Manufacturing. On October 17, 2007, RFS Holdings B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V., Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and controlled by RBS, completed the acquisition of ABN AMRO Holding N.V. (ABN AMRO). In July 2008, the company disposed of its entire interest in Global Voice Group Ltd. SKYKON CAMPBELTOWN: Enters Deal to Keep Turbine Factory Open ------------------------------------------------------------ BBC News reports that a deal has been struck to keep open Skykon Campbeltown factory while efforts continue to safeguard its future. As reported in the Troubled Company Reporter-Latin America on January 7, 2011, Skykon Campbeltown went into administration. The Press Association said that Skykon Campbeltown suffered when its Denmark-based parent company Skykon suspended payments to creditors in October. Around 130 people work at Skykon's factory in Machrihanish, Argyll, the report related. BBC News discloses that administrators Ernst and Young have now agreed a deal with engineering firm Siemens to resume production. The report relates that Siemens will provide funding for an outstanding order of 30 wind turbine towers for a wind farm near Abington in South Lanarkshire. BBC News states that staff at the company was informed of the breakthrough at a meeting with the administrators. The report relates that all 130 employees will return to work and wage arrears will be met. "We were mindful of the uncertainty facing staff at the Campbeltown facility and are therefore pleased to have concluded this arrangement in such a short timescale," BBC News quoted Andrew Davison, joint administrator, as saying. The administrators are continuing to work through expressions of interest in the site and are currently providing further information to interested parties, BBC News adds. Skykon Campbeltown makes wind turbine parts. THE MALT: Goes Into Administration ---------------------------------- Jim Jack at Ilkley Gazette reports that The Malt went into administration. The company's staff are still waiting for their final pay slips after the bar and restaurant closed suddenly on Sunday, January 2, 2011. Director Adam Lewis blamed the closure on poor trading conditions and low customer numbers, but insists it will have no impact on The Yard pub in Ilkley, which he also manages, according to Ilkley Gazette. The report relates Mr. Lewis said he has been working with local businesses to try to make alternative arrangements for anyone who had paid a deposit to host a function at The Malt this year. "We've had to put The Malt into administration, which happened just after the New Year," Ilkley Gazette quoted Mr. Lewis as saying. "It was just down to lack of trade and the economic climate. Low patronage was the main cause. The staff will be paid in full for every hour they've worked for us and I've had meetings with 90% of them and they've all been assured we're filling the forms in for them and trying to do the best possible to ease the stress and disruption that's been caused," Mr. Lewis added. The Malt is a bar and restaurant in Burley-in-Wharfedale, England. WTA GLOBAL: Brought Out of Administration, 85 Jobs Saved -------------------------------------------------------- Insider Media Limited reports that WTA Global Holdings was bought out of administration saving 85 jobs in the process. The report relates that John Kelly and Nigel Price, partners in Begbies Traynor Birmingham office, were appointed joint administrators on December 23, 2010, to WTA Global Holdings, which traded as World Tourist Attractions. Mr. Kelly confirmed that the business has now been sold to Elliot Hall, the sole director of WTA Global Holdings, according to Insider Media Limited. "WTA Global Holdings was formed in 2002 to install and operate large entertainment wheels in key locations," Insider Media Limited quoted Mr. Kelly as saying. "Based on the original Ferris wheel but closer to the London Eye in terms of construction, significant investments were made and further funds rose from a number of financial institutions and individuals. The company would appear to have suffered as a result of some of the locations for the wheels not providing the income that had been forecast due to a downturn in visitor numbers because of the current financial global crisis, but mainly during 2009. While the wheels can be moved, a considerable cost is involved. The company sought further financial investment but due to the current economic climate it was not forthcoming," Mr. Kelly added. The report notes Mr. Kelly also said: "As the wheels were all subject to finance the remaining business and assets were sold to Elliot Hall shortly after the administration giving the opportunity of saving more than 85 jobs." Headquartered in Sutton Coldfield, WTA Global Holdings is the failed business behind Birmingham's Big Wheel. WTA Global Holdings also operated five other observation wheels across the country. * UK: Corporate Insolvencies Drop 19% in Q4 of 2010, PwC Says ------------------------------------------------------------- The latest PwC analysis into corporate insolvency numbers demonstrates that the level of insolvencies significantly declined during 2010. In total, 15,894 companies became insolvent in 2010 compared to 19,512 in 2009. Some 3,605 companies became insolvent in the fourth quarter of 2010 -- a 6% decrease on the previous quarter and a 19% decrease in comparison to the same quarter of 2009. Mike Jervis, partner in the business recovery services practice at PwC, commented: "Overall insolvency numbers are back to those seen in 2008. But 2008 was a year of contrasts- pre and post September 15, when Lehmans filed for bankruptcy. 2010 has seen insolvency volumes stabilize as businesses are proactively managed in intensive care and options other than insolvency are pursued with vigor. However, UK businesses are certainly not out of the woods yet, as we expect looming public sector cuts to hit the bottom line of many public sector suppliers. "The demise of Rok in November 2010 exemplifies that companies within the construction and service industries are still vulnerable. It is telling that overall construction insolvencies during 2010 were still 15% above those experienced in 2008. A modest increase in interest rates would also put additional pressure on many struggling companies. "These actual and potential economic challenges need to be factored into company cashflow forecasts and scenario planning should be a key discipline. Key risks are loss of demand or increases in uncontrollable costs. Cashflow management needs to be obsessive in companies facing these issues. " The worst affected sectors continue to include construction (565 companies), manufacturing (410), retail (399), hospitality & leisure (237) and real estate (131). However, all these sectors show a marked improvement when compared to the same quarter of 2009. PwC's analysis shows that London continues to have the highest number of insolvencies with 875 but compared to the same quarter in 2009, shows a marked improvement with a 24% decline. The East, South and West have seen rises in the number of insolvencies, while the most improvement has been recorded in the East Midlands where the number of insolvencies has dropped by 40% since the last quarter. =============== X X X X X X X X =============== * BOOK REVIEW: Megamergers - Corporate America's Billion-Dollar Takeovers --------------------------------------------------------------- Author: Kenneth M. Davidson Publisher: Beard Books Hardcover: 427 pages Listprice: US$34.95 Review by Henry Berry Megamergers are nothing new to the business world. One of the first occurred in 1901, when Carnegie Steel merged with several rival steel corporations, resulting in the billion-dollar United States Steel. Since then, megamergers have been a part of American business. However, the author notes that megamergers have historically "occurred sporadically and been understandable" on face value. By contrast, in recent decades there has been a "current wave of large mergers [that] is unprecedented." In Megamergers - Corporate America's Billion-Dollar Takeovers, Davidson looks at the unprecedented number of megamergers occurring today and considers whether this signals a change in the thinking of U.S. business leaders. Legislators, corporate executives, mergers specialists, and anyone else involved in, or affected by, megamergers will find this book enlightening. An announcement of a merger is usually accompanied with the pronouncements that it will result in greater synergies, operational efficiencies, and improved servicing of markets. Mr. Davidson questions whether this has, in fact, been the case. He analyzes the subsequent financial performance of the corporate behemoths produced by these megamergers and concludes that the majority of them were not justifiable nor, ultimately, productive. Mr. Davidson is an admitted skeptic about the value of mergers to the overall economy and to employees, stockholders, and consumers. He is critical of the overly optimistic rationales prevalent in today's business climate that lead many businesspersons into mergers. For the most part, though, he keeps his biases in check. He rejects many of the common criticisms of mergers. For example, he finds unpersuasive the argument that mergers should be rejected on the ground that they undermine market competitiveness. Nor, does he say, is it worthwhile to revisit the ongoing debate over whether "'risk arbitrageurs are good guys or bad guys." The author states that his "first intention [is] to paint a picture of what is happening [to] clarify the issues involved and areas of dispute." He offers a balanced examination of the megamerger phenomenon, particularly as it pertains to the energy and financial services industries. He goes beyond seeing megamergers only as phenomena of contemporary corporate culture, and his analyses go beyond mere statistics. Megamergers have their roots not only in business ambitions and current trends, but also in human nature. Recognizing this, the author also addresses the psychology underlying megamergers. As noted in the section "The Acquisition Imperative," mergers present a temptation to the decision-making executives of successful companies "look[ing] beyond their product and consider[ing] the disposal of excess profits." Mr. Davidson explains why a merger appears to many executives to be a better option than distributing profits to shareholders, starting new businesses, or investing in securities. The informed perspective Mr. Davidson offers in this book, first published in 2003, is just as relevant today. It is a book that brings new wisdom to old ways of thinking about megamergers. An attorney for the U. S. Federal Trade Commission for 25 years, Kenneth M. Davidson has also been a corporate attorney and a visiting law professor. ********* 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 2011. 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 * * *