/raid1/www/Hosts/bankrupt/TCREUR_Public/110204.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, February 4, 2011, Vol. 12, No. 25
Headlines
C Z E C H R E P U B L I C
HAAS & CZJZEK: May Resume Production in Six Months, Director Says
G E R M A N Y
BAYERISCHE LANDESBANK: Returns to Profit; Earns EUR800MM in 2010
SCHLOTT GRUPPE: Trading Continues Despite Insolvency
* GERMANY: EU Warns Landesbanken Against "Unviable" Mergers
G R E E C E
* GREECE: Debt Restructuring Necessary, Lars Feld Says
H U N G A R Y
TESCO-GLOBAL: Drivers & Trade Union Initiate Liquidation Procedure
DAM 2004: Tops Tax Authority's List of Delinquent Firms
I R E L A N D
ANGLO IRISH: May Sue Ex-Chief Executive David Drumm
ANGLO IRISH: Seeks EU Approval for Irish Nationwide Merger Plan
BREAFFY HOUSE: Goes Into Receivership Due to 'Cancellations'
INTERMEDIATE FINANCE: Moody's Confirms Junk Rating on EUR39M Notes
IRISH NATIONWIDE: Seeks EU Approval for Anglo Irish Merger Plan
SUNDAY TRIBUNE: Goes Into Receivership, Owner Withdraws Support
* No. of Irish Firms Going Out of Business Drop 28% in Jan. 2011
* IRELAND: To Borrow EUR3.5 Billion From Euro Zone Bailout Fund
I T A L Y
DIT GROUP: Gitanjali Gems Eyes Asset Acquisition
K A Z A K H S T A N
CENTRAS INSURANCE: Moody's Lifts Insurer Strength Rating to 'B2'
L U X E M B O U R G
ARDAGH PACKAGING: Moody's Affirms 'B3' Rating on EUR275-Mil. Bonds
N E T H E R L A N D S
IMPRESS HOLDINGS: S&P Affirms 'B+' Corporate Credit Rating
R U S S I A
AMO ZIL: Gazprom Seeks Bankruptcy Order; March 17 Hearing Set
BANK CENTROCREDIT: Moody's Affirms 'E+' Financial Strength Rating
* Fitch Affirms 'BB-' Long-Term Ratings on Russian Murmansk Region
T U R K E Y
TURKIYE IS BANKASI: Moody's Assigns 'Ba1' Sr. Unsec. Debt Rating
U N I T E D K I N G D O M
ARDAGH PACKAGING: S&P Assigns 'B-' Rating to EUR200-Mil. Notes
CATTLES PLC: Creditors Pass Resolutions on Proposed Restructuring
CONNAUGHT: Better Capital Buys Firm's Unit Out of Administration
CONNEXIONS CHESHIRE: Looks Set to Go Into Administration
EMI GROUP: Impala Threatens to Block Merger Deals
FORD MOTOR: Sued in London Over Pension Losses at Visteon UK
GRAPHITE MORTGAGES: Fitch Affirms 'CCCsf' Rating on Class E Notes
JJB SPORTS: In Takeover Talks with JD Sports; Unveils Placing
TITAN EUROPE: S&P Affirms 'B- (sf)' Rating on Class B Notes
TOWERGATE FINANCE: Moody's Assigns 'P(B1)' Ratings to Senior Debt
TURBO FINANCE: Fitch Assigns 'BB+sf' Rating on Class C Notes
WAKEFIELD TRINITY: Attracts Potential Buyers
* UNITED KINGDOM: Administration Levels Set to Rise in 2011
* UK: Print and Packaging Insolvencies Fall by 24.6% in 2010
X X X X X X X X
* BOOK REVIEW: Leveraged Mgmt Buyouts -- Causes and Consequences
*********
===========================
C Z E C H R E P U B L I C
===========================
HAAS & CZJZEK: May Resume Production in Six Months, Director Says
-----------------------------------------------------------------
CTK reports that Haas & Czjzek's director, Zdenek Uhlir, said that
the company may possibly resume production in a better market
situation.
CTK relates that the company ended production due to lack of
orders.
According to CTK, Mr. Uhlir said that if the situation improves,
the production could be resumed in six months, adding that leasing
the firm's premises to another firm is also an option.
Haas & Czjzek is one of the oldest porcelain manufacturers in
Bohemia.
=============
G E R M A N Y
=============
BAYERISCHE LANDESBANK: Returns to Profit; Earns EUR800MM in 2010
----------------------------------------------------------------
James Wilson at The Financial Times, citing preliminary figures
published on Monday, reports that Bayerische Landesbank became the
first of Germany's bailed-out Landesbanken to return to the black,
making pre-tax profits of about EUR800 million during 2010.
The Munich-based bank was one of four Landesbanken -- public-
sector banks with a regional focus -- that hit trouble during the
financial crisis, suffering extensive losses on portfolios of
structured securities that were bought to pep up earnings, the FT
recounts. BayernLB's losses were magnified by a disastrous
investment in Hypo Group Alpe Adria, an Austrian bank that was to
have been a beachhead for international expansion, the FT notes.
The FT relates that Gerd Hausler, chief executive of BayernLB,
said the profits were a "highly welcome sign" for the bank, whose
owners have suggested they would like to bring in outside
investors in the medium term.
"Just about all of the operating earnings came from the operating
businesses designated as core areas of the future for the new
BayernLB," the FT quoted Mr. Hausler as saying.
BayernLB, as cited by the FT, said the profits exceeded targets.
The FT says the earnings are also a fillip for the bank after a
succession of scandals including the HGAA purchase, which is being
investigated by German prosecutors, and the arrest this month of
Gerhard Gribkowsky, BayernLB's former chief risk officer.
Prosecutors have said they suspect him of receiving an alleged
US$50 million corrupt payment in connection with the bank's sale
six years ago of a stake in Formula One motor racing, the FT
states.
The FT notes that BayernLB said the results should allow it to
repay losses incurred in previous years by holders of hybrid
capital instruments such as profit participation certificates.
The bank reported a net loss of EUR2.6 billion for 2009 on top of
losses of EUR5.1 billion in 2008, the FT discloses.
As reported by the Troubled Company Reporter-Europe, Bloomberg
News said BayernLB, Germany's second-biggest state-owned bank,
ousted Mr. Gribkowsky in April 2008, after the company reported
writedowns related to the collapse of the U.S. subprime-mortgage
market. BayernLB needed EUR10 billion (US$13 billion) in capital
from the German state of Bavaria to prop it up during the
financial crisis, Bloomberg disclosed.
About BayernLB
Bayerische Landesbank a.k.a BayernLB -- http://www.bayernlb.de/--
acts as the principal bank to the state of Bavaria and as the
central clearing house for the 75 Bavarian sparkassen (savings
banks). Also serving corporations, national and local
governments, financial institutions, and real estate firms, the
bank offers a variety of services, including financing, security
underwriting and trading, and risk management. It provides retail
and private banking services for individuals through its Internet
bank, Deutsche Kreditbank, and through banking subsidiaries in
central and southeastern Europe. BayernLB's Landesbank Saar
subsidiary (75% owned) provides financing to small and midsized
businesses in the German state of Saarland and in France.
* * *
As reported by the Troubled Company Reporter-Europe on Sept. 29,
2010, Fitch Ratings upgraded the Individual Rating of BayernLB to
'D' from 'D/E'. Fitch expects to review the RWN on BayernLB's
ratings when the European Commission announces its decision on the
bank's state aid or if BayernLB's recently announced exploratory
discussions with WestLB result in a concrete merger plan.
SCHLOTT GRUPPE: Trading Continues Despite Insolvency
----------------------------------------------------
Schlott gruppe on Jan. 31 disclosed that the company will be able
to continue trading during the preliminary insolvency proceedings.
Following negotiations lasting several days, the insolvent group's
banks and the provisional administrator, Siegfried Beck, have now
reached agreement on a special loan similar to debtor-in-
possession financing. This gives Mr. Beck the capital needed to
maintain the group's business operations for the foreseeable
future, i.e. beyond the opening of insolvency proceedings at
the beginning of April, and time to work with schlott gruppe's
management board on a possible rescue package for the printing and
media group.
Regardless of the current insolvency proceedings, both production
and customer deliveries remain on track.
As reported by the Troubled Company Reporter-Europe on Jan. 20,
2011, the Management Board of schlott gruppe submitted an
application to the District Court of Nuremberg for the
commencement of insolvency proceedings on the grounds of financial
insolvency and excessive indebtedness. Subsequently, an
application was also submitted to the District Court of Nuremberg
for the commencement of insolvency proceedings in respect of the
German Group entities schlott GmbH, schlott Vertrieb GmbH, schlott
logistik GmbH, u.e. sebald Druck GmbH, D.V.N. Druckverarbeitung
Nurnberg GmbH, media2print GmbH, wwk Druck GmbH, broschek
rollenoffset GmbH, broschek service GmbH, broschek tiefdruck GmbH
and sebaldus GmbH on the grounds of financial insolvency and
excessive indebtedness. Initially, the insolvency proceedings
will not affect the foreign Group entities reus S.R.O. (Czech
Republic) und hollmann S.A. (France). The obligation for the
commencement of insolvency proceedings for the Dutch Group
entities biegelaar B.V. and media2print B.V. is currently under
examination.
Headquartered in Freudenstadt, Germany, schlott gruppe AG
covers a multitude of services surrounding printed and digital
media processes. Its range of services covers five areas: media
services, intaglio, web offset printing, processing and logistics
services.
* GERMANY: EU Warns Landesbanken Against "Unviable" Mergers
-----------------------------------------------------------
Heather Smith at Bloomberg News reports that Joaquin Almunia, the
European Union's competition commissioner, warned German state-
owned Landesbanken against merging "unviable" businesses as he
called for wide restructuring of WestLB AG, Bayerische Landesbank
and HSH Nordbank AG.
"Mergers are often part of restructuring plans; but merging
unviable businesses is not a solution in and by itself," Bloomberg
quoted Mr. Almunia as saying in the text of a speech on Tuesday.
"The strategy works only when the institution resulting from the
merger is solvent and profitable."
Bloomberg relates that Mr. Almunia said an overhaul of WestLB was
"more unavoidable and urgent" than for other banks. He said he
wanted to decide on EU approval for government help to the three
banks "before the summer break," adds Bloomberg.
Banks must win EU regulators' permission to receive government
rescue aid that could harm competition, Bloomberg notes.
"Heavily subsidized Landesbanken should free up market shares so
that they do not grow to the detriment of unsubsidized competitors
on the back of taxpayers' money," Mr. Almunia, as cited by
Bloomberg, said in the speech.
===========
G R E E C E
===========
* GREECE: Debt Restructuring Necessary, Lars Feld Says
------------------------------------------------------
Jana Randow at Bloomberg News reports that Lars Feld, a member of
German Chancellor Angela Merkel's council of economic advisers,
told Frankfurter Allgemeine Sonntagszeitung in an interview that a
restructuring of Greek debt is "necessary."
Giving Greece more time to repay its loans would be the "best
solution" as creditors wouldn't lose "too much money," Mr. Feld
was quoted as saying, according to Bloomberg.
Bloomberg notes that Mr. Feld said Europe needs an insolvency
mechanism for states.
=============
H U N G A R Y
=============
TESCO-GLOBAL: Drivers & Trade Union Initiate Liquidation Procedure
------------------------------------------------------------------
MTI-Econews reports that 13 Tesco drivers and the Independent
Union of Trade Workers (KDFSZ) have initiated liquidation
procedures against Tesco-Global Aruhazak Zrt.
KDFSZ told MTI on Wednesday that 13 workers of the company's Gyal
logistics center had initiated the proceedings because the company
owes them payment of standby fees retroactively for three years.
In addition, they are also demanding payment for work ordered and
performed during the standby time, MTI notes.
MTI relates that the trade union said Tesco owes around 220
drivers hundreds of millions of forints, 13 of whom have initiated
the liquidation.
According to MTI, Tesco-Global said the initiative lacks any
basis.
Tesco-Global Aruhazak Zrt. is the Hungarian unit of UK retail
chain Tesco.
DAM 2004: Tops Tax Authority's List of Delinquent Firms
-------------------------------------------------------
Budapest Business Journal's BBJ_online reports that DAM 2004 Kft
tops the list of Hungarian companies with unpaid taxes.
Citing latest figures from Apeh, Hungary's tax authority,
BBJ_online relates that DAM 2004 has failed to pay HUF6.7 billion
in taxes and is liable to an additional HUF.9 billion in fines for
non-payment.
Another seven companies have unpaid taxes exceeding HUF1 billion,
which tax experts say are practically unrecoverable, according to
the list obtained by BBJ_online. Among the tax delinquents is bus
maker Alfa Busz Kft, which made headlines last year after it won
several scandal-ridden public contracts but went into liquidation
in September.
Based in Diosgyor, Hungary, DAM 2004 Kft is a steelmaker currently
owned by Swiss-Ukrainian consortium Donbass. The company went
into liquidation in June 2009.
=============
I R E L A N D
=============
ANGLO IRISH: May Sue Ex-Chief Executive David Drumm
---------------------------------------------------
Colm Keena at The Irish Times reports that Anglo Irish Bank may
sue its former chief executive, David Drumm, for actions he took
during his time as chief executive.
The Irish Times relates that the bank on Monday sought an
emergency order from a court in Boston compelling Mr. Drumm to
attend and make a deposition on Wednesday, Feb. 2, in the offices
of the bank's US attorneys.
According to The Irish Times, in its Jan. 31 submission seeking an
order from the court compelling Mr. Drumm to attend for
deposition, Anglo's attorneys said it likely had claims against
Mr. Drumm "for actions taken by him while he was the chief
executive".
The bank said it was having difficulty getting agreement on a date
for a deposition from Mr. Drumm, The Irish Times notes. It also
said it was having difficulty getting Mr. Drumm to hand over
documents it said he was obliged to hand over, The Irish Times
discloses.
Notice was given on Jan. 19 that Mr. Drumm should appear on
Feb. 2, according to The Irish Times. It was not until Jan. 25
that counsel for Mr. Drumm said they had another appointment on
that date, The Irish Times recounts.
The Irish Times notes that Mr. Drumm said he could appear on
Feb. 11 and Feb. 14. However, the bank said it may want to file
new claims against Mr. Drumm arising from actions taken by him
when he was chief executive, The Irish Times discloses. The cut-
off date for doing so was Feb. 14, The Irish Times notes.
According to The Irish Times, the bank said it was necessary for
the bank to take Mr. Drumm's deposition sufficiently in advance of
Feb. 14 to be in a position to file these additional claims.
As reported by the Troubled Company Reporter-Europe on Oct. 19,
2010, Bloomberg News said Mr. Drumm filed for bankruptcy months
after Anglo sought repayment of loans from him. Bloomberg
disclosed that 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 the U.S. Bankruptcy Court in Boston.
Anglo Irish Bank's lawyers told a court in Dublin in December that
the bank was seeking repayment of loans valued at about EUR8
million (US$11.3 million) from Mr. Drumm, according to Bloomberg.
Mr. Drumm's liabilities were primarily business debts, Bloomberg
said, citing the former chief executive's Oct. 14 filing under
Chapter 7 of the U.S. Bankruptcy Code.
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' 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.
ANGLO IRISH: Seeks EU Approval for Irish Nationwide Merger Plan
---------------------------------------------------------------
Simon Carswell at The Irish Times, citing a spokesman for the
Department of Finance, said a joint restructuring plan for Anglo
Irish Bank and Irish Nationwide Building Society was being
prepared for submission to the European Commission last Jan. 31.
According to The Irish Times, the plan had to be submitted to the
commission by the Jan. 31 deadline under the agreement reached by
the government with the European Union and the International
Monetary Fund on the EUR85 billion aid package.
The spokesman for the department said last Monday evening that it
was working toward the submission of the plan to Brussels before
the deadline and that he expected the deadline to be met, The
Irish Times notes.
Anglo and Irish Nationwide have been in discussions since last
month about merging following the transfer of a combined
EUR43 billion loans to the National Asset Management Agency
(Nama), The Irish Times notes.
Patrick Honohan, the governor of Ireland's central bank, said last
month that the deposits of both -- less than EUR14 billion at
Anglo and about EUR4 billion at Irish Nationwide -- will be
transferred to other lenders, The Irish Times recounts.
The backing of the rump of Irish Nationwide -- about
EUR2.5 billion in loans, mostly residential mortgages -- into
Anglo, which has about EUR37 billion in loans after its own
transfers to Nama, will result in job losses across both
institutions, The Irish Times discloses.
There is expected to be between 100 and 200 job losses in the
initial months after the proposed merger -- if it is approved by
Brussels -- with the workforce at the combined asset recovery bank
estimated to fall to about 1,000 staff within about a year of
merging, The Irish Times states.
The government has pledged EUR29.3 billion in capital into Anglo-
Irish and EUR5.4 billion into Irish Nationwide, The Irish Times
relates. The two lenders suffered the heavy losses on property
lending, according to The Irish Times.
Anglo's senior bonds, which amount to about EUR5.4 billion
following a repayment to bondholders on Monday, are expected to
remain with the merged entity under the proposal submitted to
Brussels, said The Irish Times.
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' 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.
BREAFFY HOUSE: Goes Into Receivership Due to 'Cancellations'
------------------------------------------------------------
Anton McNulty at The Mayo News reports that the "large number of
cancellations" over the winter months has been blamed for a
receiver being appointed to the Breaffy House Resort.
According to the report, Michael McAteer of Grant Thornton was
appointed by Bank of Scotland (Ireland) following a request by
Michael Lynch, founder of the Lynch Hotel Group, which owns the
Breaffy House Hotel and Resort. The Breaffy House's sister hotel,
the Clare Inn Hotel and Suites, have also been placed into
receivership, The Mayo News relates.
The report notes that the hotel will continue to trade and the
staff will be retained, but will face an uncertain future, with
the Lynch Hotel Group in financial difficulty.
In 2009, The Mayo News recounts, the group emerged from
examinership. Accounts to the end of December 2009, show that
West County Hotel Ltd, the parent entity for the Lynch hotels, had
accumulated losses of EUR21.2 million. The report relates that
the loans owned to Bank of Scotland total more than EUR20 million
and Pat McCann of Maldron Hotels has been appointed to operate the
two hotels.
Breaffy House Resort is located in Castlebar. The Breaffy House
Hotel has 200 rooms along with a sports and events arena.
INTERMEDIATE FINANCE: Moody's Confirms Junk Rating on EUR39M Notes
------------------------------------------------------------------
Moody's Investors Service has confirmed the ratings of seven
classes of notes issued by Intermediate Finance II PLC:
Issuer: Intermediate Finance II PLC
-- EUR104M Class A-1 Senior Secured Floating Rate Notes due
2024, Confirmed at A1 (sf); previously on Sep 28, 2010 A1
(sf) Placed Under Review for Possible Downgrade
-- EUR195M Class A-2 Senior Secured Floating Rate Notes due
2024, Confirmed at A3 (sf); previously on Sep 28, 2010 A3
(sf) Placed Under Review for Possible Downgrade
-- EUR26M Class A-3 Senior Secured Floating Rate Notes due 2024,
Confirmed at Baa3 (sf); previously on Sep 28, 2010 Baa3 (sf)
Placed Under Review for Possible Downgrade
-- EUR63M Class B-1 Senior Secured Floating Rate Notes due 2024,
Confirmed at Ba2 (sf); previously on Sep 28, 2010 Ba2 (sf)
Placed Under Review for Possible Downgrade
-- EUR15M Class B-2 Senior Secured Fixed Rate Notes due 2024,
Confirmed at Ba2 (sf); previously on Sep 28, 2010 Ba2 (sf)
Placed Under Review for Possible Downgrade
-- EUR78M Class C Secured Deferrable Floating Rate Notes due
2024, Confirmed at B3 (sf); previously on Sep 28, 2010 B3
(sf) Placed Under Review for Possible Downgrade
-- EUR39M Class D Secured Deferrable Floating Rate Notes due
2024, Confirmed at Caa1 (sf); previously on Sep 28, 2010 Caa1
(sf) Placed Under Review for Possible Downgrade
Intermediate Finance II PLC is a multicurrency collateralized loan
obligation backed by a portfolio of European mezzanine loans. The
transaction is managed by Intermediate Capital Managers Limited.
In September 2010, a sharp deterioration in the credit quality of
the portfolio triggered a review of the transaction. The
uncertainty surrounding the reinvestment of a significant amount
of cash (approximately EUR92 million, or 19% of the performing
collateral balance), however, led to the watch listing of the CLO
notes.
Although a large portion of cash still remains un-invested
(EUR85 million, or 18% of the collateral balance), recent positive
developments in the transaction have resulted in Moody's
confirming the ratings of the CLO notes. Specifically, the credit
quality of the portfolio improved as indicated by a lower
proportion of securities rated Caa1 and below by Moody's in the
portfolio (10.06% as at Jan 2011, compare to 16.15% as at
Sept. 2010). The slightly better weighted average rating factor
'WARF' also points to a modest improvement in the portfolio credit
quality (WARF of 2979 in Nov 2010, compared to 3005 in July 2010).
The ratio of assets to liabilities was restored to covenanted
levels through the curing of class D OC test breach in Jan 2011.
In its base case, Moody's analyzed the underlying collateral pool
with an adjusted WARF of 4852, a diversity score of 26 and a
weighted average recovery rate of 34.41%. Further, Moody's
assumed in its analysis complete reinvestment of the un-invested
cash at the current default probability of the portfolio.
In order to assess the sensitivity of the notes to changes in
credit quality of the portfolio and par, Moody's ran sensitivity
analyses on key parameters. For example, Moody's ran cases with a
+/- 15% change in the base case WARF and an absolute change of +/-
15% in the weighted average recovery rate. In all cases, the
impact on the senior notes was less than 1 notch and the impact on
the junior notes was less than 2 notches from the base case model
outputs.
Under this methodology, Moody's used its Binomial Expansion
Technique, whereby the pool is represented by independent
identical assets, the number of which being determined by the
diversity score of the portfolio. The default and recovery
properties of the collateral pool are incorporated in a cash flow
model where the default probabilities are subject to stresses as a
function of the target rating of each CLO liability being
reviewed. The default probability range is derived from the
credit quality of the collateral pool, and Moody's expectation of
the remaining life of the collateral pool. The average recovery
rate to be realized on future defaults is based primarily on the
seniority and jurisdiction of the assets in the collateral pool.
The cash flow model used for this transaction, whose description
can be found in the methodology listed above, is Moody's EMEA
Cash-Flow model.
Moody's also notes that a material proportion of the collateral
pool consists of debt obligations whose credit quality has been
assessed through Moody's credit estimates. As credit estimates do
not carry credit indicators such as ratings reviews and outlooks,
a stress of a quarter notch-equivalent assumed downgrade was
applied to each of these estimates. In addition, large single
exposures to obligors bearing a credit estimate have been
considered for the analysis and been subject to a stress
applicable to concentrated pools with non publicly rated issuers
as per the report titled "Updated Approach to the Usage of Credit
Estimates in Rated.
IRISH NATIONWIDE: Seeks EU Approval for Anglo Irish Merger Plan
---------------------------------------------------------------
Simon Carswell at The Irish Times, citing a spokesman for the
Department of Finance, reports that a joint restructuring plan for
Anglo Irish Bank and Irish Nationwide Building Society was being
prepared for submission to the European Commission last Jan. 31.
According to The Irish Times, the plan had to be submitted to the
commission by the Jan. 31 deadline under the agreement reached by
the government with the European Union and the International
Monetary Fund on the EUR85 billion aid package.
The spokesman for the department said last Monday evening that it
was working toward the submission of the plan to Brussels before
the deadline and that he expected the deadline to be met, The
Irish Times notes.
Anglo and Irish Nationwide have been in discussions since last
month about merging following the transfer of a combined
EUR43 billion loans to the National Asset Management Agency
(Nama), The Irish Times notes.
Patrick Honohan, the governor of Ireland's central bank, said last
month that the deposits of both -- less than EUR14 billion at
Anglo and about EUR4 billion at Irish Nationwide -- will be
transferred to other lenders, The Irish Times recounts.
The backing of the rump of Irish Nationwide -- about
EUR2.5 billion in loans, mostly residential mortgages -- into
Anglo, which has about EUR37 billion in loans after its own
transfers to Nama, will result in job losses across both
institutions, The Irish Times discloses.
There is expected to be between 100 and 200 job losses in the
initial months after the proposed merger -- if it is approved by
Brussels -- with the workforce at the combined asset recovery bank
estimated to fall to about 1,000 staff within about a year of
merging, The Irish Times states.
The government has pledged EUR29.3 billion in capital into Anglo-
Irish and EUR5.4 billion into Irish Nationwide, The Irish Times
relates. The two lenders suffered the heavy losses on property
lending, according to The Irish Times.
Anglo's senior bonds, which amount to about EUR5.4 billion
following a repayment to bondholders on Monday, are expected to
remain with the merged entity under the proposal submitted to
Brussels, The Irish Times.
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.
SUNDAY TRIBUNE: Goes Into Receivership, Owner Withdraws Support
---------------------------------------------------------------
RTE ten reports that a receiver has been appointed to the Sunday
Tribune after 29.9% shareholder Independent News & Media decided
that it could no longer fund the weekly paper. The Sunday Tribune
currently has 43 staff.
According to the report, Independent News & Media will fund staff
salaries until the end of this month and will also finance the
receivership process. A receiver will be able to seek new
investment in the company, RTE ten relates.
The report notes that the Sunday Tribune has been loss-making in a
crowded market where there are 17 Sunday newspaper titles.
"INM remains hopeful that new investors may emerge to safeguard
the future of this quality Sunday title," the newspaper said in a
statement obtained by the news agency.
The Sunday Tribune is an Irish Sunday broadsheet newspaper
published by Tribune Newspapers plc. Independent News & Media has
been an investor in the Sunday Tribune since 1992.
* No. of Irish Firms Going Out of Business Drop 28% in Jan. 2011
----------------------------------------------------------------
New statistics released by InsolvencyJournal.ie show that 3
companies went out of business per day for the first month of
2011. The figure of 96 has dropped by 28% when compared to
December 2010 totals and is a 13% drop on totals for the same
period last year.
Commenting on the figures, Ken Fennell, a partner with
kavanaghfennell, the firm who compiled the data said, "While the
reduction in insolvencies both from December and year on year
comparison is welcome news it is a little early to predict if the
rate of insolvencies have peaked and it will be interesting to see
the figures for the first quarter of 2011 in comparison to 2010."
Regionally, the worst hit area was Leinster, accounting for 68% of
the overall total, relates InsolvencyJournal.ie. Ulster and
Connaught were the least affected with 4% and 8%, respectively,
while Munster accounted for 20%. This regional split has
continued from 2010 trend which saw yearly insolvencies split as
follows; Leinster 65%, Munster 21%, Connaught 9% and Ulster just
5%, says the report.
With regard to industry totals, notes InsolvencyJournal.ie,
construction continued to be the worst affected with 24
insolvencies or 25% of the overall total, however, this is a
decrease on December, which saw 40% of insolvencies in the
construction sector. The manufacturing industry also saw a drop
from 10 insolvencies in December to 3 in January down from 8% to
3% of the total. The hospitality industry had 15 or 16% and
retail 9 or 9% which stayed relatively level with December figures
of 16 and 9, respectively. InsolvencyJournal.ie predicts there
will be a fall-off in the rate of construction insolvencies to be
offset by a rise in other sectors.
"We would expect a possible increase in the number of insolvencies
in both the hospitality and retail sectors over the coming
months," Mr. Fennell said.
Creditors' Voluntary Liquidations accounted for 88% of all
insolvencies for January while there were no Court appointed
liquidations, says the report. However, January saw two
applications for Court protection granted by the High Court, with
CB Deli Limited and Cantec (North East) Limited both entering
examinership during January. At the time of writing, a decision
in the McInerney Homes case was still outstanding and a decision
is expected to be made during the second week of February, notes
InsolvencyJournal.ie.
"During 2011 we would expect that examinerships will increase as
trading companies struggle under ongoing pressure, and larger
distressed companies will attract strong interest from foreign
investors with foreign capital and although the figures show a
drop in the number of receivers appointed during January, (with a
47% decrease compared with December and 57% when compared with
January 2010) we do not anticipate this trend to continue during
2011 and would expect a return to 2010 levels of receivership
activity. With regard to insolvent liquidations, although it is
very early to make forecasts, there are currently very few
positive signs that would point towards a decrease in insolvent
liquidations during 2011," relates InsolvencyJournal.ie.
* IRELAND: To Borrow EUR3.5 Billion From Euro Zone Bailout Fund
---------------------------------------------------------------
Arthur Beesley at The Irish Times reports that the government will
in the coming days borrow EUR3.5 billion from the euro zone
bailout fund, about EUR200 million more than it first sought,
following the completion of its inaugural bond issue.
According to The Irish Times, Dublin initially asked for a EUR3.3
billion loan from the European Financial Stability Facility
(EFSF). However, EFSF sources say "favorable" terms realized when
it sold a EUR5 billion five-year bond last Tuesday mean it can now
lend more than the sum the government had asked for, The Irish
Times notes.
The bond issue was nine times oversubscribed, meaning investors
signaled their willingness to put down a total of EUR44.5 billion,
The Irish Times discloses.
The issue spread, fixed at mid-swap plus 6 basis points (0.06
percentage points), implied borrowing costs for EFSF of 2.89%, The
Irish Times states.
Ireland will pay interest of some 5.815% for its loan, thanks to
the 2.925% "surcharge" over the EFSF's borrowing rate, The Irish
Times says.
=========
I T A L Y
=========
DIT GROUP: Gitanjali Gems Eyes Asset Acquisition
------------------------------------------------
Gitanjali Gems Limited on Feb. 2 disclosed that the Company was
aiming to acquire assets of M/s DIT Group S.p.A.
The Company also noted that DIT is under liquidation process with
Civil Court of Alessandria and the company presented a proposal
for composition in bankruptcy with respect to the business of DIT,
to the official receiver, Bankruptcy department, Civil Court of
Alessandria.
The Civil Division - Bankruptcies, Court of Alessandria, awarded a
decree in favor of the Company mentioning that the proposal for
adjustment of creditors' claims made by the Company has obtained
highest number of consents. Furthermore, the Company was also
subjected to fulfillment of certain payment conditions by the
deadlines specified by the Court. The Company has fulfilled the
conditions prescribed by the Court and now the matter is up for
completion of final formalities.
The Company would be benefited by the said acquisition due to
DIT's Italian presence and positioning as a symbol of contemporary
luxury, high range products. The Company will also get benefited
by having access to DIT's Italian techniques and creativity. This
acquisition would further help the Company in many ways, e.g.
enlargement of its network geographically as DIT has an existing
network in Saudi Arabia and Europe. Additionally, the Company
would also get an increased brand portfolio, established customers
network and established market set up for the products etc.
M/s DIT Group S.p.A. is an Italy-based jewelry company. The
Company operates in the area of manufacturing, marketing, and sale
of jewels and owns some of the reputed brands like STEFAN HAFNER,
IO Si, ROBERTA PORRATI and LA NOUVELLE BAGUE etc.
===================
K A Z A K H S T A N
===================
CENTRAS INSURANCE: Moody's Lifts Insurer Strength Rating to 'B2'
----------------------------------------------------------------
Moody's Investors Service has upgraded its global scale insurer
financial strength rating on Kazakhstan based Centras Insurance to
B2 from B3. The outlook is stable.
Rating Rationale
The upgrade is driven by the strengthening market position of
Centras within the Kazakhstan Insurance market during the past 2
years. Gross premium written at Q3 2010 was KZT3,893 million
(US$26 million) compared to KZT2,221 million for full year 2008.
Centras is the 10th largest insurer in Kazakhstan with a market
share of about 3.3%, and has continued to grow profitably in a
market which has seen significant reductions in volume during the
financial crisis with a net income of KZT1,157 million for 9
months 2010. Centras' growth has been supported by an increased
capital base through retained earnings and an investment portfolio
focused on fixed income instruments
Centras Insurance is a key component of the Centras Capital group,
which also has fund management, securities trading and leasing
businesses. Centras group is also the majority shareholder in
Kommesk Omir Insurance (rated Ba3 Stable). Centras Insurance has
been operating in its current form since 2005 and focuses on
providing retail insurance while introducing more advanced Western
insurance products into the Kazakhstan market via a heavily
reinsured commercial insurance risk department. Unlike many
insurers in Kazakhstan, Centras is not a captive insurer
affiliated to large commercial or banking group.
More negatively, Moody's notes that despite the strong growth
recorded in recent years Centras remains a small insurer by global
standards with premium of about US$26 million as of Q3 2010 and
total assets of KZT5,287 (US$35.3 million). In addition although
its investment strategy is restricted to fixed income instruments
(a strategy which ensured Centras did not suffer from losses
during recent falls in the Kazakh equity markets), those
instruments are not highly rated by global standards.
Gross underwriting leverage, at 3.2x is high in comparison to
other rated insurers in the CIS, but Moody's notes the extensive
use of reinsurance placed with strong Western reinsurers.
However, while this strategy reduces net exposure to insurance
risk it does mean that Centras is somewhat reliant on these
reinsurers continuing to write business in the Kazakhstan market
at reasonable rates.
The outlook is stable, as Moody's expectations for growth over the
next few years are reflected in the B2 rating. The rating could
be reviewed positively if the capital position relative to premium
and reserves strengthens, or if Centras reaches a top tier
position in the Kazakh insurance market. Conversely, the rating
could come under negative pressure if Centras fails to maintain
the current level of profitability or capital levels weaken.
These ratings were upgraded to B2 with a stable outlook:
* Centras Insurance Insurance Financial Strength
The last rating action on Centras was on June 16, 2008, when the
rating was assigned at B3 with a positive outlook
===================
L U X E M B O U R G
===================
ARDAGH PACKAGING: Moody's Affirms 'B3' Rating on EUR275-Mil. Bonds
------------------------------------------------------------------
Moody's Investors Service has affirmed the B3 rating of the
EUR275 million senior unsecured bond maturing in 2020 following
the announcement of Ardagh to increase the issue by EUR200 million
to EUR475million. The bond is issued by Ardagh Packaging Finance
plc, a wholly owned indirect subsidiary of Ardagh Packaging Group.
Existing ratings of Ardagh, including the B2 Corporate Family
Rating with a positive outlook, remain unchanged.
Rating Rationale
The proceeds from the proposed issuance are expected to remain
within the group initially, though Moody's would assume these to
be used for a further expansion of the business, possibly
supported by potential bolt-on acquisitions. While Moody's note
that net debt levels will remain initially unaffected by the
issuance, associated additional interest cost and Moody's
assumption of proceeds to be spent over the intermediate term on
projects with yet uncertain profitability and cash flow profiles
could be an indication of a more aggressive financial policy,
which could extend the trajectory to a positive rating movement.
Moody's will therefore closely monitor any developments in this
direction and assess whether management's approach to expanding
the group as opposed to a focus on net debt reductions is
shifting, which would be in contrast to Moody's base assumption of
a focus on deleveraging the enlarged group following the Impress
acquisition in late 2010. Any larger debt-financed acquisition
which would delay the expected improvements in credit metrics
might therefore have an impact on the rating and/or outlook.
More fundamentally, the B2 corporate family rating continues to
incorporate (i) the increased scale with sales in excess of EUR3
billion and solid market positions of the combined group in the
rather low-cyclical food and beverage industry; (ii) an improving
geographic spread with the focus of operations still on the
European market but with activities also to include Impress
existing presence in North America and Australasia; as well as
(iii) an improved substrate diversity from a pure glass container
focus to a mix of glass and metal.
These positive rating drivers are balanced by (i) high leverage
following the acquisition of Impress that is expected to reduce
only gradually -- and further slowed down with the proposed bond
issue; (ii) the execution risk inherent in a transaction of
transformational character; as well as (iii) the exposure to
volatile raw material prices which need to be passed on to
customers in a timely fashion to preserve solid profitability
levels, which Moody's deem to be a major risk factor at this point
in time given high price rises for tinplate recently.
The instrument rating of B3 (LGD 5, 77%) for the senior unsecured
notes is one notch below the Corporate Family Rating and mirrors
their relative ranking in the group's capital structure behind a
sizeable portion of secured debt instruments. The proposed
additional senior unsecured notes benefit from the same guarantee
package as Ardagh's existing senior unsecured notes (EUR310
million, due 2017 and EUR180 million, EUR275 million and
US$350 million all due 2020). Ardagh's existing senior unsecured
notes are supported by subordinated guarantees of subsidiaries
representing at least 85% of consolidated assets and EBITDA.
The positive outlook is based on Moody's expectation that the
enlarged group should be able to reduce leverage towards levels of
5x debt/EBITDA over the next 12-18 months on the back of ongoing
cost savings initiatives, potential synergies and the application
of positive free cash flows to net debt reduction. The positive
outlook also incorporates Moody's expectation that the enlarged
group will continue to tightly manage production volumes and
prudently control volatile input costs without compromising
current profitability levels as well as the preservation of an
adequate liquidity profile including sufficient leeway under
financial covenants. The positive outlook does not incorporate
leeway for major debt financed acquisitions.
The ratings could be upgraded over the next 12-18 months should
Ardagh manage to bring down leverage in terms of Debt/EBITDA
towards 5 times (per LTM proforma 09/2010: 5.6x) and keep interest
coverage in terms of (EBITDA-Capex)/Interest around 1.5x (per LTM
proforma 09/2010: 1.6x) on the back of improvements in operating
profitability and continued positive free cash flow generation.
A deterioration in profitability, caused for instance by
increasing competition or the inability to manage volatile raw
material costs, negative free cash flow or a more aggressive
capital structure as indicated by Debt/EBITDA moving towards 6
times and interest coverage in terms of (EBITDA-Capex)/Interest
towards 1x could put negative pressure on the ratings.
Ardagh Group, registered in Luxemburg, is a leading supplier of
glass and metal containers by volume focusing on the European food
and beverage market with some operations also in North America and
Australasia. Pro forma for the acquisition of Impress in late
2010, which more than doubled the size of the group, the company
generated sales of about EUR3 billion in the last twelve months
ending September 2010.
=====================
N E T H E R L A N D S
=====================
IMPRESS HOLDINGS: S&P Affirms 'B+' Corporate Credit Rating
----------------------------------------------------------
Standard & Poor's Ratings Services said that it affirmed its 'B+'
long-term corporate credit ratings on The Netherlands-based global
provider of metal packaging Impress Holdings B.V. S&P
subsequently withdrew the credit rating and debt issue ratings on
Impress at the company's request following the acquisition of the
company by Ardagh Packaging Group Plc (formerly known as Ardagh
Glass Group Plc; B+/Stable/--). At the time of the withdrawal,
the outlook on the corporate credit rating was stable. All
outstanding bonds of Impress have been repaid following the
acquisition.
"At the time of the withdrawal, the corporate credit rating on
Impress reflected the corporate credit rating on Ardagh, following
the latter's acquisition of Impress in September 2010," said
Standard & Poor's credit analyst Izabela Listowska.
The rating on Ardagh is constrained by S&P's view of the group's
"highly leveraged" financial risk profile. The key risk factors,
in S&P's opinion, include Ardagh's sensitivity to volatile input
costs and fairly high capital intensity, in particular related to
the glass sector. The ratings are further constrained by the
company's very aggressive financial policy, as demonstrated by its
appetite for debt-funded acquisitions. S&P considers these
negative factors to be partly offset by Ardagh's "satisfactory"
business risk profile, which is supported by its leading market
positions, long-standing relationships with customers, and end
markets equating to about 75% of total revenues that are typically
less sensitive to changing economic conditions. The ratings also
reflect Ardagh's good profitability, which is underpinned by its
enhanced cost base and ability to manage input cost changes.
===========
R U S S I A
===========
AMO ZIL: Gazprom Seeks Bankruptcy Order; March 17 Hearing Set
-------------------------------------------------------------
AK&M reports that Gazprom Mezhregiongaz Moscow appealed to the
arbitration court to declare AMO ZIL as bankrupt.
According to AK&M, the court sitting is set for March 17.
ZIL, AK&M says, owes RUR313.52 million to Gazprom, making it the
largest debtor of the company. The repeated demands to cover the
debts were ignored, AK&M notes.
Headquartered in Moscow, AMO ZIL is a major Russian truck and
heavy equipment manufacturer.
BANK CENTROCREDIT: Moody's Affirms 'E+' Financial Strength Rating
-----------------------------------------------------------------
Moody's Investors Service has affirmed the E+ bank financial
strength rating and B3/Not Prime long-term and short-term local
and foreign currency deposit ratings of Bank CentroCredit. The
outlook on all of the global scale ratings is stable.
Concurrently, Moody's Interfax Rating Agency affirmed CCB's long-
term national scale rating of Baa2.ru. The national scale rating
carries no specific outlook.
Moody's assessment is primarily based on CCB's audited financial
statements for 2009 prepared under IFRS, signed on 16 June 2010.
Ratings Rationale
According to Moody's, CCB's ratings are constrained by (i) the
bank's limited franchise and overall visibility on the market
which limits the bank's pricing power, leading to higher risk
appetite; (ii) liquidity may be vulnerable to significant
securities market dislocations as a result of significant
leveraged securities positions, although this risk is partially
mitigated by low volatility of underlying repo securities; (iii)
the low diversification of the bank's client base and significant
concentration levels on both sides of the balance sheet; (iv) the
bank's considerable, albeit well-managed, exposure to market risk,
which renders its financial performance vulnerable to securities
market volatility; and (v) limited funding sources which are
dependent on wholesale markets.
Moody's also notes that CCB's BFSR is supported by the bank's
successful history of revenue generation from core operations
(securities trading) as well as its ability to quickly adjust to
changes in operating environment. The ratings also reflect high
capitalization levels and low credit risk appetite.
Credit risks are relatively low, as the whole loan book is fully
covered by the bank's equity. At the same time, Moody's cautions
that high repo leverage exposes the bank to substantial liquidity
risk if the markets dry up and/or if securities prices fall
significantly. While the bank partially mitigates this risk by
dealing currently with state-related fixed-income securities which
do not exhibit high levels of volatility (proved during the recent
crisis events (4Q2008)), risks still remain because liquid assets
accounted for less than half of such repo positions as at year-end
2010.
Moody's explained that CCB's ratings do not have upward potential
in the short to medium term. However, upward rating pressure
could potentially come from expansion of its franchise and a
widening of its client base (including the launch of innovative
structured products which are not offered by competitors, thereby
securing the bank a stable and profitable market niche) while
maintaining ample and stable profitability and efficiency that
accompanies good asset quality. Conversely, negative pressure
could be exerted on CCB's ratings if CentroCredit fails to
adequately manage its market and liquidity risks, especially from
repo leverage. Key person departures could also be a negative
rating factor.
Moody's last rating action on CCB was on November 13, 2007, when
the rating agency assigned E+/B3/Not Prime/Baa2.ru ratings to the
bank.
Domiciled in Moscow, CCB reported -- as at year-end 2009 -- total
IFRS (audited) assets of US$2.5 billion and total equity of US$328
million. The bank's net income for 2009 amounted to US$79
million.
* Fitch Affirms 'BB-' Long-Term Ratings on Russian Murmansk Region
------------------------------------------------------------------
Fitch Ratings has affirmed Russian Murmansk Region's Long-term
foreign and local currency ratings at 'BB-' with Stable Outlooks,
Short-term foreign currency rating at 'B' and National Long-term
rating at 'A+(rus)' with Stable Outlook.
The agency has simultaneously withdrawn all Murmansk's ratings as
Fitch will not be able to assess the region's credit quality going
forward due to insufficient information. Accordingly, Fitch will
no longer provide ratings or analytical coverage for the Murmansk
Region.
===========
T U R K E Y
===========
TURKIYE IS BANKASI: Moody's Assigns 'Ba1' Sr. Unsec. Debt Rating
----------------------------------------------------------------
Moody's Investors Service has assigned a Ba1 foreign-currency
senior unsecured debt rating to Turkiye Is Bankasi A.S. The
outlook on the rating is positive.
Ratings Rationale
The rating was assigned in the context of Isbank issuing its first
foreign-currency debt notes. The terms and conditions of the
notes include (amongst other factors) a negative pledge and a
cross-default clause. The notes will be unconditional,
unsubordinated and unsecured obligations and will rank pari passu
with all of Isbank's other senior unsecured obligations. The
rating of the notes and -- any subsequent foreign-currency senior
unsecured bonds issued -- is in line with Isbank's senior
unsecured foreign-currency debt rating.
Moody's foreign-currency debt ratings for an issuer are subject to
the foreign-currency bond ceiling assigned to the country in which
the issuer is based. As a result, even though Isbank's global
local-currency deposit rating of Baa2 is higher than the Ba1
foreign-currency bond ceiling for Turkey, Isbank's foreign-
currency senior unsecured debt rating is constrained by and thus
equal to this ceiling.
An upgrade of the foreign-currency bond ceiling would result in an
upgrade of the rating of the notes, since it is constrained by its
applicable ceiling. Similarly, a downgrade of the foreign-
currency bond ceiling -- or a downgrade of Isbank's GLC deposit
rating below that of the foreign-currency bond ceiling for Turkey
-- would result in a downgrade of the rating of the notes.
Moody's previous rating action on Isbank was implemented on
November 4, 2010, when Moody's assigned a (P) Ba1 foreign-currency
senior unsecured debt rating with a positive outlook to Isbank.
Headquartered in Istanbul, Turkey, Isbank reported total assets of
US$75.1 billion at the end of December 2009.
===========================
U N I T E D K I N G D O M
===========================
ARDAGH PACKAGING: S&P Assigns 'B-' Rating to EUR200-Mil. Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its 'B-'
issue rating to the proposed EUR200 million senior unsecured notes
due 2020, to be issued by Ardagh Packaging Finance PLC (not
rated), a finance subsidiary of Ireland-based glass-container
manufacturer Ardagh Packaging Group PLC (formerly Ardagh Glass
Group PLC; Ardagh; B+/Stable/--). The issue rating is two notches
lower than the corporate credit rating on Ardagh. At the same
time, S&P assigned a recovery rating of '6' to the proposed notes,
indicating S&P's expectation of negligible (0%-10%) recovery in
the event of a payment default. The proposed notes, if issued,
will constitute a tap on the existing EUR275 million 9.25% senior
notes issued in October 2010.
The issue ratings on Ardagh's various senior secured debt
instruments remain unchanged at 'BB-', with recovery ratings
unchanged at '2', reflecting S&P's expectation of substantial
(70%-90%) recovery in the event of a payment default.
The issue ratings on Ardagh's existing senior unsecured and
payment-in-kind notes remain unchanged at 'B-', with recovery
ratings unchanged at '6', indicating S&P's expectation of
negligible (0%-10%) recovery prospects in the event of a payment
default.
The issue and recovery ratings on the proposed senior unsecured
notes are based on preliminary information and are subject to the
successful issuance of this instrument and S&P's satisfactory
review of the final documentation. In the event of any changes to
the amount, terms, or conditions of the issue, the issue and
recovery ratings might be subject to further review.
Recovery Analysis
S&P's issue and recovery ratings reflect its valuation of Ardagh
as a going concern, underpinned by its view of the group's strong
market positions and well-diversified customer base. This results
in S&P's valuation of the group of about EUR1,660 million at its
simulated point of default in 2013.
The issue and recovery ratings on the proposed senior unsecured
notes are limited by the presence of a sizeable amount of senior
secured debt ranking ahead of the proposed notes. The issue and
recovery ratings on the existing senior secured notes reflect
S&P's view of the comprehensive security package provided to the
senior secured noteholders.
The issue and recovery ratings on the existing and proposed senior
unsecured notes are constrained by the unsecured nature of the
notes (which S&P understands, however, benefit from unsecured
guarantees from most of Ardagh's operating companies). In
contrast, the issue and recovery ratings on the PIK notes reflect
the PIK notes' contractual and structural subordination to the
existing and proposed senior unsecured notes. This is because the
PIK notes are unsecured, unguaranteed, and located at a holding
company above the issuer of the notes.
S&P understands that the senior secured lenders benefit from a
comprehensive guarantee and security package. This package
consists of senior secured guarantees from operating companies
representing at least 85% of the group's consolidated EBITDA, as
well as security over substantially all of the group's assets
(that is, at least 80%). S&P also understands that the senior
unsecured notes benefit from the same operating company guarantees
as the senior secured notes and the super senior revolving credit
facility, although on an unsecured basis.
To calculate recoveries, S&P simulates a payment default. S&P
believes that the key risks to Ardagh's business profile lie in
potential future overcapacity and a subsequent decline in prices
putting pressure on the group's operating performance and free
cash flow generation. S&P believes that these operating risks,
coupled with the group's high financial and operating leverage,
could trigger a default.
Under its hypothetical scenario, S&P estimates that Ardagh would
use up all its available liquidity and default by 2013. At
default, S&P projects that EBITDA would likely have declined to
about EUR325 million. Assuming a stressed multiple of about 5.1x
for S&P's going-concern valuation, S&P arrives at a gross stressed
enterprise value at default of about EUR1,660 million.
S&P then deducts from the stressed enterprise value of EUR1,660
million about EUR365 million of priority claims, consisting
principally of enforcement costs, securitization, and 50% of the
group's pension deficit.
The residual value of about EUR1,295 million is first available to
the lenders of the super senior RCF, which S&P estimates will
total EUR105 million at its simulated point of default, including
prepetition interest. This leaves about EUR1,190 million of
residual value for the senior secured noteholders. S&P estimates
that the senior secured notes will total EUR1,438 million
(including prepetition interest) at default, hence S&P's
expectations of 70%-90% recovery for these instruments (equating
to a recovery rating of '2'). Finally, this leaves negligible
(0%-10%) value for the existing and proposed senior unsecured
noteholders and the holders of the PIK notes, hence S&P's recovery
rating of '6' on these instruments.
Ratings List
Ardagh Packaging Group Plc
Corporate Credit Rating B+/Stable/--
New Rating
Ardagh Packaging Finance PLC
EUR200M sr unsecd nts due 2020 B-
Recovery Rating 6
CATTLES PLC: Creditors Pass Resolutions on Proposed Restructuring
-----------------------------------------------------------------
Cattles plc disclosed that, at the Court-convened meetings of the
creditors of the Company, Welcome Financial Services Limited and
Ewbanks Mail Order Limited, held earlier on Tuesday in connection
with the proposed restructurings of Cattles, WFSL and Ewbanks by
way of schemes of arrangement in accordance with Part 26
of the Companies Act 2006, all the necessary resolutions were
passed by the relevant classes of their respective creditors
by the requisite majorities.
Commenting on the results of the Creditor Meetings, the Executive
Chairman of Cattles, Margaret Young said: "I am delighted that the
creditors of Cattles, WFSL and Ewbanks have passed all the
necessary resolutions. The passing of these resolutions allows us
to continue to progress the restructuring of the Cattles group
with the aim of achieving the best possible outcome for the
shareholders and creditors of the Cattles group as a whole."
Cattles Creditor Meeting
Meetings of two classes of creditors were convened for the purpose
of voting on the Cattles creditor scheme. The Cattles creditor
scheme was approved with minor amendments at both class meetings
by the requisite majorities.
WFSL Creditor Scheme Meeting
Meetings of three classes of creditors were convened for the
purpose of voting on the WFSL creditor scheme. The WFSL creditor
scheme was approved with minor amendments at all of the class
meetings by the requisite majorities.
Ewbanks Creditor Scheme Meeting
Meetings of a number of classes of creditors were convened for the
purpose of voting on the Ewbanks creditor scheme. The Ewbanks
creditor scheme was approved at all of the class meetings by the
requisite majorities.
Other
Completion of the restructuring remains subject to the
satisfaction of other conditions, including the Court sanctioning
the Cattles shareholder scheme and the Creditor Schemes. The
hearings at the High Court of Justice of England and Wales to
sanction the Shareholder Scheme and the Creditor Schemes are
expected to be held on February 21, 2011 and, subject to receiving
the sanction of the Court, such schemes are expected to become
effective shortly thereafter.
Any changes to the date will be published on Cattles' Web site at
http://www.cattles.co.uk/
As reported by the Troubled Company Reporter-Europe, Bloomberg
News said trading in the company's stock was suspended in
April 2009 after the company failed to provision sufficiently for
bad debts and breached covenants with its banks.
Cattles plc -- http://www.cattles.co.uk/-- is a financial
services company engaged in providing consumer credit to non-
standard customers in the United Kingdom and the provision of debt
recovery services to external clients and the Company's consumer
credit business. Cattles also provides working capital finance
for small and medium size businesses.
CONNAUGHT: Better Capital Buys Firm's Unit Out of Administration
----------------------------------------------------------------
Caroline Clayfield at Business Sale reports that private equity
group Better Capital has acquired 50% of the compliance division
of Connaught plc. The report relates that Better Capital has
purchased half of Connaught's compliance division, following its
fall into administration last year.
According to Business Sale, GBP15 million has been put forward by
Better Capital to finance the acquisition and pay for
restructuring efforts.
The report notes that Connaught's social housing maintenance
division and parent company were initially placed into
administration, while its environmental and compliance units
continued to trade. Business Sale relates that KPMG is tipped to
sell the compliance section in two halves. The final stage of the
administration will be completed within the next few weeks, when
the company's environmental division will be acquired by the
company's lenders, the report notes.
Overall, the selling of sections of the business and assets
relating to Connaught attracted interest from 15 trade and private
equity buyers, Business Sale adds.
Better Capital was founded by Jon Moulton, the venture capitalist.
About Connaught plc
Connaught plc -- http://www.connaught.plc.uk/-- is a United
Kingdom-based company engaged in the provision of integrated asset
services to the public and private sectors. The Company operates
in two business segments: social housing and compliance. Social
Housing segment provide social housing landlords throughout the
United Kingdom with a range of planned and response maintenance
services, as well as compliance and estate management. The
Compliance segment provides safety, health and risk management
solutions. It has information, advisory, training and servicing
capabilities to provide integrated compliance solution throughout
the United Kingdom. On July 22, 2009, the Company completed the
acquisition of UK Fire (International) Limited and Igrox Limited.
On September 15, 2008, the Company completed the acquisition of
Lowe Group Holdings Ltd. On November 26, 2008, the Company
completed the acquisition of certain assets of Predator Pest
Control Plc.
* * *
As reported by the Troubled Company Reporter-Europe on Sept. 9,
2010, Bloomberg News said Connaught Plc appointed partners from
KPMG as administrators after the business as a whole failed to
secure "sufficient support" to trade as a going concern.
Bloomberg disclosed the company said in a statement on Sept. 8
that KPMG's Richard Heis, Richard Hill and Richard Fleming were
appointed administrators to Exeter, England-based Connaught Plc,
and Heis, Mark Firmin, Brian Green and David Costley-Wood were
appointed joint administrators to Connaught Partnerships Ltd.
Connaught Environmental Ltd. and their subsidiaries were not put
into administration, Bloomberg noted.
CONNEXIONS CHESHIRE: Looks Set to Go Into Administration
--------------------------------------------------------
Gina Bebbington at Northwich Guardian reports that hundreds of
jobs will be lost and youth work across Cheshire slashed beyond
recognition if Connexions Cheshire and Warrington goes into
administration. The report relates that Connexions Cheshire
cannot afford to make the necessary redundancies to meet budget
cuts, which means it could be technically insolvent within two
weeks.
Connexions Cheshire and Warrington is funded by Cheshire West and
Chester Council, Cheshire East Council and Warrington Borough
Council.
However, according to Northwich Guardian, the contracts offered by
the councils for the next financial year are a fraction of what
the company needs.
"We didn't know what contracts we would get from the local
authorities but when they came through we saw the implications of
the small amount of money we would get. We need to make 90 full-
time staff redundant, which will cost GBP1.2 million but we have
no reserves left because the councils wouldn't help with the last
round of redundancies. We've asked the councils for a loan of
GBP1.2 million, and if they don't pay that we will go into
administration on February 11. It costs more to close the
business down than it would to carry on if they gave us the
support and backing we need," Northwich Guardian quoted an unnamed
Connexions worker as saying.
Headquartered in Northwich, Connexions Cheshire and Warrington is
a youth company. It employs around 400 staff and helps tens of
thousands of young people across the county.
EMI GROUP: Impala Threatens to Block Merger Deals
-------------------------------------------------
Andrew Edgecliffe-Johnson, Salamander Davoudi and Anousha Sakoui
at The Financial Times report that Impala, the European lobby
group for independent record labels whose legal action tied up
Sony Music's 2004 merger with BMG in the courts for three years,
has threatened to campaign against any deal to merge EMI Group
with a competitor.
Helen Smith, Impala's executive chairwoman, told the FT: "We don't
believe concentration is good for the music market. The mergers
that have already happened have confirmed that."
According to the FT, Ms. Smith said she could not see any
combination of existing recorded music or publishing companies
clearing the European Commission without remedies, but indicated
that Impala could change its view if bidders proposed measures to
improve independent music companies' access to the market.
Citigroup Takeover
As reported yesterday by the Troubled Company Reporter-Europe,
Bloomberg News said Citigroup Inc. seized control of EMI after the
record label struggled to meet the terms of loans used to finance
its takeover by Guy Hands, opening the way for a sale of the
company. Citigroup said in a statement on Tuesday that the U.S.
bank, which funded Mr. Hands's takeover in 2007, will own all of
EMI after the debt-for-equity swap, according to Bloomberg. The
deal will reduce London-based EMI's debt by 65% to GBP1.2 billion
(US$1.94 billion), Bloomberg disclosed. The agreement may lead to
a sale of a record label of the Beatles and Pink Floyd, Bloomberg
noted. Warner Music Group Corp. and BMG Rights are among bidders
that have expressed interest in EMI's publishing and recorded
assets, Bloomberg said. Bloomberg, citing Needham & Co., said EMI
may fetch about US$2 billion in a sale, narrowly covering its
US$1.94 billion debt. Laura Martin, an analyst at Needham in
Pasadena, California, as cited by Bloomberg, said private equity
firms KKR & Co. and Apollo Group Inc., as well as Sony/ATV Music
Publishing, are likely to seek EMI's publishing unit.
EMI Group Ltd. -- http://www.emigroup.com/-- is the fourth
largest record company in terms of market share (behind Universal
Music Group, Sony Music Entertainment, and Warner Music Group).
It houses recorded music segment EMI Music and EMI Music
Publishing. EMI Music distributes CDs, videos, and other formats
primarily through imprints and divisions such as Capitol Records
and Virgin, and sports a roster of artists such as The Beastie
Boys, Norah Jones, and Lenny Kravitz. EMI Music Publishing, the
world's largest music publisher, handles the rights to more than a
million songs. EMI Music operates through regional divisions (EMI
Music North America, International, and UK & Ireland). Private
equity firm Terra Firma owns EMI.
FORD MOTOR: Sued in London Over Pension Losses at Visteon UK
------------------------------------------------------------
Unite, Britain's biggest union, lodged a claim in the high court
in London on January 28 against Ford Motor Company over the
pension rights of staff who transferred to Visteon UK and
subsequently lost their jobs and some of their pensions after
Visteon UK went into administration in 2009.
Unite's lawyers are seeking compensation from the company for
allegedly providing 'misleading' advice to Ford workers who
transferred to Visteon UK. According to the union, when Visteon
went into administration in 2009, the company had a GBP350 million
black hole in its pension scheme, and Unite alleges that Ford is
liable for this shortfall.
Workers were transferred from Ford to Visteon UK in May 2000.
Broadly, workers had to decide whether to leave their accrued
pension benefits in the Ford pension scheme, or to transfer them
to the Visteon pension scheme. Unite believes the information
that Ford provided to these workers in order to assist them in
deciding whether or not to transfer their accrued pensions
benefits was misleading.
Unite maintains that the information provided led the workers to
believe that, if they transferred their Ford benefits to the
Visteon UK pension scheme, their pensions would be secure. In
2009, 610 workers lost their jobs and some of their pension when
Visteon UK went into administration.
As it is, they will get only PPF (pension protection fund) level
benefits for any accrued Ford pension rights that they
transferred. They will only get PPF level benefits for their
accrued VUKPP (Visteon United Kingdom pension plan) pension
rights.
Unite's national officer, Roger Maddison said, "The fight for
pensions' justice begins in the high court. Unite believes Ford
has a legal and a moral obligation to the thousands of ex
employees who paid into its pension scheme all their working lives
believing this would provide a financially secure pension in
retirement.
"Ford has announced US$8 billion in profits, it will take a
fraction of this to give the men and women who lost part of their
pensions justice.
"Hundreds of workers, many of them close to retirement, were
sacked at very short notice and lost large parts of their
pensions. We believe Ford misled many of these workers leading
them to believe their pensions were safe with Visteon. Ford
failed to clearly set out the risks associated with transferring
the assets staff had built up with Ford -- now many of these
workers face vastly reduced pensions."
Unite was formed by a merger between two of Britain's leading
unions, the T&G and Amicus. It was created to meet the great
challenges facing working people in the 21st century and is a
democratic and campaigning union which fights back for employees
in the workplace, is taking trade unionism out to the millions of
unorganized workers, is a union that stands up for equality for
all and advances its members interests politically. Unite is also
active on a global scale building ever stronger links with trade
unions around the world to confront the challenges of the
globalized economy.
About Visteon Corp
Headquartered in Van Buren Township, Michigan, Visteon Corporation
(NYSE: VC) -- http://www.visteon.com/-- is an automotive supplier
that designs, engineers and manufactures innovative climate,
interior, electronic and lighting products for automakers. The
Company has corporate offices in Van Buren Township, Michigan
(U.S.); Shanghai, China; and Kerpen, Germany. It has facilities
in 27 countries and employs roughly 35,500 people. The Company
disclosed assets of US$4,561,000,000 and debts of US$5,311,000,000
as of March 31, 2009.
Visteon Corporation and 30 of its affiliates filed for Chapter 11
protection on May 28, 2009, (Bank. D. Del. Case No. 09-11786
through 09-11818). Judge Christopher S. Sontchi oversees the
Chapter 11 cases. James H.M. Sprayregen, Esq., Marc Kieselstein,
Esq., and James J. Mazza, Jr., Esq., at Kirkland & Ellis LLP, in
Chicago, Illinois, represented the Debtors in their restructuring
effort. Laura Davis Jones, Esq., James E. O'Neill, Esq., Timothy
P. Cairns, Esq., and Mark M. Billion, Esq., at Pachulski Stang
Ziehl & Jones LLP, in Wilmington, Delaware, served as the Debtors'
local counsel. The Debtors' investment banker and financial
advisor were Rothschild Inc. The Debtors' notice, claims, and
solicitation agent was Kurtzman Carson Consultants LLC. The
Debtors' restructuring advisor was Alvarez & Marsal North America,
LLC.
Judge Christopher S. Sontchi of the U.S. Bankruptcy Court for the
District of Delaware entered an order on August 31, 2010,
confirming the Fifth Amended Plan of Reorganization of Visteon
Corporation and its debtor-affiliates. Visteon emerged from
Chapter 11 on October 1.
* * *
In December 2010, Standard & Poor's Ratings Services assigned its
'B+' corporate credit rating on reorganized Visteon. Moody's
Investors Service gave Visteon Corporate Family and Probability of
Default Ratings of 'B1'.
About Ford Motor
Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles
across six continents. With about 200,000 employees and about 90
plants worldwide, the company's automotive brands include Ford,
Lincoln, Mercury and Volvo. The Company provides financial
services through Ford Motor Credit Company.
Ford Motor's balance sheet at Sept. 30, 2010, showed
US$177.07 billion in total assets, US$178.81 billion in total
liabilities, and a stockholders' deficit of US$1.77 billion.
* * *
At the end of January 2011, Fitch Ratings upgraded the Issuer
Default Ratings for Ford Motor Company and its Ford Motor Credit
Company LLC captive finance subsidiary to 'BB' from 'BB-'. The
Rating Outlook for both Ford and Ford Credit is Positive. Fitch
said Ford's ratings reflect its continued strong financial
performance and the substantial debt reduction accomplished in the
fourth quarter of 2010, both of which outperformed Fitch's
previous expectations.
Moody's Investors Service affirmed the ratings of Ford Motor
Company and Ford Motor Credit Company and changed the rating
outlook to positive from stable. These ratings include for Ford:
Corporate Family Rating and Probability of Default Rating (PDR) --
Ba2; senior unsecured -- Ba3; secured credit facility -- Baa3; and
Speculative Grade Liquidity rating -- SGL-2; and for Ford Credit:
CFR and senior unsecured -- Ba2.
GRAPHITE MORTGAGES: Fitch Affirms 'CCCsf' Rating on Class E Notes
-----------------------------------------------------------------
Fitch Ratings has affirmed 13 tranches of the Graphite Mortgages
Plc Series and downgraded one tranche.
Both transactions (Graphite Mortgages PLC Provide Graphite 2005-II
and Graphite Mortgages PLC Provide Graphite 2006-I) represent
synthetic securitizations of residential mortgages referencing
loans that have been originated by Northern Rock, with the
underlying collateral comprising credit-linked certificates of
indebtedness that have been purchased from Kreditanstalt fuer
Wiederaufbau ('AAA'). The affirmation reflects the stabilization
of the performance of both transactions over 2010.
In both transactions, the threshold account represents the first
tier of protection against losses incurred on the reference
portfolio. Unlike the cash reserves in non-synthetic
transactions, this account is not replenished by available excess
spread. This means that once these accounts have been fully
depleted, losses will be allocated to the junior notes,
consequently reducing the credit support for the notes. The
outstanding amounts of the threshold account (as a percentage of
the initial amounts) stood at 49.6% for Graphite 2005-2 (as of
August 2010) and 35% for Graphite 2006-1 (as of September 2010).
These values have remained fairly stable over 2010 and for this
reason have supported the ratings affirmation and the Stable
Outlooks for the senior rated tranches of Graphite 2005-2 and
Graphite 2006-1.
However, the underlying collateral of both series comprises loans
with relatively high current indexed LTV ratios of 77.2% and 82.6%
for Graphite 2005-2 (as of August 2010) and Graphite 2006-1 (as of
September 2010), respectively. In addition, buy-to-let (BTL)
ratios for Graphite 2005-2 and Graphite 2006-1 stood at 46% and
38.2%, respectively. Fitch considers these adverse
characteristics to be associated with higher probabilities of
default and thus pose additional risks if interest rates rise as
expected by the end of 2011. As such, this concern is reflected
in the Negative Outlooks on the junior notes in both series. (D2
for Graphite 2005-2 and C1, C2, D1 and D2 notes of Graphite 2006-
1).
Furthermore, compared to the more seasoned Graphite 2005-2 series,
Fitch believes that the level of credit enhancement available for
the C2 tranche of Graphite 2006-1 is relatively low and inadequate
to sustain its current rating. Additionally, Graphite 2006-1 has
a higher LTV ratio along with weaker performance, which Fitch does
not expect to markedly improve. This is reflected in the
downgrade of the C2 tranche.
Because the payments under the notes issued by Graphite are
dependent on payments received under the credit-linked certificate
of indebtedness, the ratings of the notes are dependent upon
Fitch's rating of KfW. If Kfw was downgraded, the ratings of the
notes would also be downgraded.
The rating actions are:
Graphite Mortgages PLC Provide Graphite 2005-II:
-- Class A+ (ISIN XS0235893624): affirmed at 'AAAsf'; Outlook
Stable; Loss Severity Rating revised to 'LS-5' from 'LS-1'
-- Class A1 (ISIN XS0235893970): affirmed at 'AAAsf'; Outlook
Stable; LS rating revised to 'LS-1' from 'LS-2'
-- Class A2 (ISIN XS0235894192): affirmed at 'AAsf'; Outlook
Stable; LS rating revised to 'LS-2' from 'LS-3'
-- Class B (ISIN XS0235894275): affirmed at 'AAsf'; Outlook
Stable; LS rating revised to 'LS-2' from 'LS-3'
-- Class C (ISIN XS0235894358): affirmed at 'Asf'; Outlook
Stable; LS rating of 'LS-2'
-- Class D1 (ISIN XS0235894515): affirmed at 'BBBsf'; Outlook
Negative; LS rating revised to 'LS-2' from 'LS-3'
Graphite Mortgages PLC Provide Graphite 2006-I:
-- Class A+ (ISIN XS0258739803): affirmed at 'AAAsf'; Outlook
Stable; Loss Severity rating revised to 'LS-5' from 'LS-1'
-- Class A (ISIN XS0258741452): affirmed at 'AAAsf'; Outlook
Stable; LS rating revised to 'LS-1' from 'LS-2'
-- Class B (ISIN XS0258744555): affirmed at 'AA-sf'; Outlook
Stable; LS rating revised to 'LS-1' from 'LS-2'
-- Class C1 (ISIN XS0258746097): affirmed at 'Asf'; Outlook
revised to Negative from Stable; Loss Severity Rating of 'LS-
3'
-- Class C2 (ISIN XS0258747061): downgraded to 'BBBsf' from 'A-
sf'; Outlook Negative ; LS Rating of 'LS-3'
-- Class D1 (ISIN XS0258748549): affirmed at 'BBsf'; Outlook
Negative; LS Rating of 'LS-3'
-- Class D2 (ISIN XS0258749356): affirmed at 'Bsf'; Outlook
Negative; LS rating revised to 'LS-3' from 'LS-4'
-- Class E (ISIN XS0258750107): affirmed at 'CCCsf'; Recovery
Rating of 'RR5'
JJB SPORTS: In Takeover Talks with JD Sports; Unveils Placing
-------------------------------------------------------------
Claer Barrett and Mark Wembridge at The Financial Times report
that JD Sports Fashion has confirmed it is in talks about a
possible takeover bid for rival JJB Sports.
The FT relates that Bury-based JD Sports said on Wednesday that it
was in "early stage discussions with the board of JJB Sports," but
added there was "no certainty that an offer will be made . . . nor
as to the terms."
JJB has been the target of takeover speculation for some time,
while its shares have fallen 80% in the past 12 months, giving it
a market capitalization of just GBP30 million, the FT notes.
"The highly preliminary nature of these discussions is such that
there can be no certainty that any offer will be made or as to the
terms of any offer," the FT quoted JJB as saying.
Placing
In a separate announcement, JJB announced a long-awaited placing
to raise GBP31.5 million from shareholders, the FT discloses. The
FT says the placing, which is not underwritten, will give the
business enough cash to continue as a going concern until the end
of March. After that, "the company could experience a funding
shortfall," JJB, as cited by the FT, said. Slightly more than
half of the placing proceeds will be used to make "immediate
payments to creditors" with the balance funding trading losses and
enabling the purchase of new stock, the FT states.
Quarterly covenant tests on its GBP25 million facility with Bank
of Scotland have been waived following placing letters pledging
support from JJB's five main shareholders, which include US fund
Harris Associates and activist investor Crystal Amber, the FT
recounts.
The emergency fundraising comes only a year after JJB staved off
administration through a GBP100 million equity raising and
renegotiated leases, the FT notes.
Business Plan
According to the FT, JJB admitted its previous business plan,
which assumed that a further GBP110 million could be raised to
fund the group for the next 12 months, was "unlikely to be
fundable." Its lenders have set a deadline of February 24 for a
revised business plan and the company said it was considering "a
number of restructuring options" including store closures and a
further company voluntary agreement to be implemented by the end
of April, the FT discloses.
JJB Sports plc (JJB Sports) is a sports retailer supplying branded
sports and leisure clothing, footwear and accessories. JJB Sports
is a high street sports retailer, with 250 stores in the United
Kingdom and Eire. It provides a range of products covering United
Kingdom sports. The Company stocks all its sports brands,
supported by its own-brand and exclusive ranges. The Company's
segment includes the Company's retail operations, including any
retail stores, which are attached to fitness clubs. The Company
operates in two geographic segments: the United Kingdom and Eire.
The Company's subsidiaries include Blane Leisure Limited, Sports
Division (Eireann) Limited, Golf TV Limited, TV Sports Shop
Limited, Original Shoe Company Limited and Qubefootwear Limited.
The Company sold its fitness club operations on March 25, 2009.
TITAN EUROPE: S&P Affirms 'B- (sf)' Rating on Class B Notes
-----------------------------------------------------------
Standard & Poor's Ratings Services raised and removed from
CreditWatch positive its credit ratings on Titan Europe 2007-3
Ltd.'s class A1 and A2 notes. At the same time, S&P affirmed and
removed from CreditWatch positive its rating on the class B notes.
The ratings on the other classes of notes in this transaction
remain unaffected.
On Oct. 6, 2010, S&P placed its ratings on the class A1, A2, and B
notes on CreditWatch positive in anticipation of the resolution of
the Metro loan. S&P's view was that this resolution would result
in making up interest shortfalls on the class A2 and B notes, and
in reducing the size of interest shortfalls that would otherwise
accrue in the near future. These shortfalls accrue due to special
servicing fees and other prior-ranking costs not met by the
transaction excess spread and servicing advances.
The issuer received the sale proceeds from the property backing
the Metro loan on the January 2011 note interest payment date.
The cash manager, on behalf of the issuer, used the proceeds to
repay previous servicing advances made for that loan, swap
termination costs, and other loan-related prior-ranking expenses.
The cash manager also applied a portion of the sale proceeds to
meet interest due under the loan and in turn the notes. More
precisely, deferred interest under the class A2 to D notes was
fully repaid, whereas deferred interest under the class E notes
was partially repaid. Finally, the cash manager applied the
remaining sale proceeds sequentially toward the repayment of the
notes.
Losses from the Metro loan, which S&P anticipate to be in the
region of GBP35 million, were not yet applied to the notes; S&P
understands this is because the special servicer may receive
additional proceeds from various loan-related claims. S&P
understands that the loan will most likely be resolved--and losses
applied to the notes--in the near term. S&P expects losses to be
applied on a reverse sequential basis and, accordingly, that this
will likely be limited to the class D and E notes, both currently
rated 'D (sf)'.
S&P expects the size of future note interest shortfalls to be less
than those experienced since October 2009 (when the advance
provider stopped providing advances in connection with the Metro
loan). S&P expects future interest shortfalls to continue to
affect the class D and E notes, and the class C notes after losses
relating to the Metro loan are applied to write-down the class D
and E notes.
If other loans were to default in the future, S&P believes that,
under a moderate stress scenario, the class A1 notes--and class A2
to a lesser extent--would benefit from sufficient subordination
before deferring unpaid interest. By contrast, in such a
scenario, the class B notes could be more vulnerable to an
interest shortfall. However, such risks are not imminent, in
S&P's view.
There are currently 15 loans remaining (including the Metro loan)
and the outstanding note balance is GBP652.97 million (down from
GBP778.822 million at closing). All the remaining loans mature
between 2012 and 2013, with the exception of Bacchus and Metro,
which are currently in special servicing. In S&P's view, many of
the secured properties are of an average quality and are located
in secondary locations; however, they generally benefit from
stable incomes. Ten loans feature inherent risks involved with
single-tenanted properties, in which incomes and recoveries have
traditionally proved more volatile than property generating
granular income. Eight of these 10 loans benefit from long lease
terms backed by established companies, which may to a certain
extent mitigate property market value declines. S&P believes that
most of the risks in the remaining loans relate to refinancing,
but that few of them may default during the loan term. S&P
believes the refinancing risk of these loans is generally high, in
light of their financial gearing.
Titan Europe 2007-3 is a true sale transaction that closed in
August 2007. Its legal maturity date occurs in October 2016. The
notes were initially backed by a pool of 19 loans secured against
35 commercial properties in the U.K. Three loans (Express
Building, Holmewood Chesterfield, and Lovat Lane) defaulted and
experienced losses (GBP33.52 million), which the issuer applied
against the notes in reverse sequential order. Two other loans
(Metro and Bacchus) have also defaulted and remain currently in
special servicing.
Ratings List
Titan Europe 2007-3 Ltd.
GBP778.822 Million Commercial Mortgage-Backed Floating-Rate Notes
Ratings Raised and Removed From CreditWatch Positive
Rating
------
Class To From
----- -- ----
A1 A (sf) BB/Watch Pos (sf)
A2 BB- (sf) B/Watch Pos (sf)
Rating Affirmed and Removed From CreditWatch Positive
Rating
------
Class To From
----- -- ----
B B- (sf) B-/Watch Pos (sf)
TOWERGATE FINANCE: Moody's Assigns 'P(B1)' Ratings to Senior Debt
-----------------------------------------------------------------
Moody's Investors Service has assigned provisional P(B1) ratings
to the senior secured debt, revolver, acquisition facility, term
loan A and term loan B and a P(B3) rating to the senior unsecured
debt to be issued by Towergate Finance plc. At the same time, the
B2 Corporate Family Rating at Towergate Partnership Limited (TPL)
was affirmed with a negative outlook. Upon the closing of the
refinancing transaction, the corporate family rating will be
transferred from TPL to Towergate Holdings II Limited (TH2). The
rating action is in relation to the refinancing of substantially
all of Towergate's debt and the planned acquisition of Countrywide
and PowerPlace.
This rating was affirmed with a negative outlook:
-- Corporate Family Rating: B2 (Towergate Partnership Limited)
These provisional ratings were assigned to Towergate Finance plc
with a negative outlook:
-- GBP280m senior secured notes: P(B1)
-- GBP10m Revolving Credit Facility: P(B1)
-- GBP90m Acquisition Facility: P(B1)
-- GBP100m Term Loan A: P(B1)
-- GBP160m Term Loan B: P(B1)
-- GBP290m senior unsecured notes: P(B3)
Ratings Rationale
Moody's issues provisional ratings in advance of the final sale of
securities and these reflect the rating agency's credit opinion
regarding the transaction only. Upon a conclusive review of the
final documentation, Moody's will endeavor to assign definitive
ratings to the instruments mentioned above. A definitive rating
may differ from a provisional rating.
The transaction involves the refinancing of substantially all of
Towergate's debt to be replaced by an acquisition facility, a
revolver, term loans, senior secured and unsecured notes, all to
be issued by Towergate Finance plc with a guarantee from TH2 and
certain other group companies. In addition, unrated PIK notes are
to be issued from Towergate Holdings I Plc, an intermediate
holding company outside of the restricted group. As part of the
transaction, Advent Private Equity will acquire 45% of the new
ultimate holding company, Towergate PartnershipCo Limited,
following an equity investment of GBP200 million. As part of the
transaction, Countrywide and PowerPlace, previously owned
separately by Towergate's shareholders, will also be acquired by
Towergate shortly after closing.
The provisional debt ratings were assigned on the basis of the
instruments' position within the Towergate Group, with the secured
notes ranking pari passu with the revolver, acquisition facility
and term loans, all secured on a first-priority basis and ahead of
the senior unsecured notes.
Moody's added that the affirmed B2 CFR incorporates Moody's
expectation of the EBITDA margin remaining consistently above 20%
(YE 2009: Moody's calculated EBITDA margin: 29.7%). The
affirmation also reflects Moody's expectation that the refinancing
will lead to improvements in near-term financial leverage and
coverage metrics from the 2009 level (2009 debt-to-EBITDA of 9.3x
and interest coverage of 0.7x, on a Moody's basis), both of which
are currently outside Moody's expectations for the current rating
level. The affirmation also reflects Moody's view of the
elongated debt maturity profile under the refinancing program,
which Moody's consider an improvement versus the status quo. Upon
completion of the transaction, the B2 CFR will be transferred from
TPL to Towergate Holdings II Ltd, which post-completion will be
the top holding company within the Towergate restricted group,
owning all of, and benefiting from cashflows from, the controlled
group's operating subsidiaries.
Whilst not considered likely in the short-term due to the current
negative outlook, factors that could lead to an upgrade include a
debt-to-EBITDA ratio of less than 4.5 times, interest coverage
exceeding 3.0 times (both on a Moody's basis), together with a
conservative strategy towards acquisitions as the business
deleverages. Conversely, negative rating action could result from
a failure to improve leverage/coverage metrics over the near-to
medium term from the current (end 2009) levels. Further negative
rating pressure could also arise in the event of a meaningful and
unprofitable acquisition strategy, although Moody's anticipate
that Towergate's future acquisition strategy is likely to focus on
small scale acquisitions.
The last rating action was on October 7, 2010, when Moody's
Investors Service withdrew its B1 senior secured and B3 senior
unsecured debt ratings on Towergate Finance Plc due to the delay
in issuance of these notes.
TURBO FINANCE: Fitch Assigns 'BB+sf' Rating on Class C Notes
------------------------------------------------------------
Fitch Ratings has assigned Turbo Finance Plc notes, backed by UK
auto loan receivables originated by the FirstRand Bank Limited,
London Branch (rated 'BBB+'/Stable/'F2'), final ratings,:
-- GBP246.2m Class A: 'AAAsf'; Outlook Stable; Loss Severity
Rating 'LS-1'
-- GBP54.2m Class B: 'Asf'; Outlook Stable; LS Rating 'LS-2'
-- GBP34.28m Class C: 'BB+sf'; Outlook Stable; LS Rating 'LS-3'
The ratings of the new issuance are based on Fitch's assessment of
the origination and servicing procedures of FRB, Fitch's
expectations of future asset performance, the available credit
enhancement, and the transaction's legal structure. Credit
enhancement is provided to the rated notes by subordination and a
cash reserve account funded at closing. The Class A notes benefit
from 28.1% credit enhancement (26.5% subordination, 1.6% cash
reserve), the Class B notes from 11.9% credit enhancement (10.3%
subordination, 1.6% cash reserve) and the Class C notes from 1.6%
credit enhancement (1.6% cash reserve). The Class C note rating
is capped at that of the servicer due to potential commingling
risk exposure, however, this is not currently a constraining
factor given the higher rating of FRB. The ratings do not address
payment of the additional subordinated interest component on the
Class C notes.
At closing, the proceeds of the Class A to C notes were applied to
purchase an amortizing pool of UK auto loan receivables from the
originator. The portfolio, as at December 31, 2010, comprised
63,541 loans with an average current balance of GBP5,267. The
portfolio consists primarily of used car loans (89.5% by balance),
with a weighted average seasoning of 12 months and a weighted
average remaining term of 37 months. The portfolio is diverse
with respect to regional and manufacturer distribution. The loans
were originated by FRB under the trading name of Carlyle Finance.
Carlyle Finance is the fourth-largest independent provider of
point of sale car finance within the UK, and originates loans via
car dealers and specialized car finance brokers. The Carlyle
Finance business was acquired by FRB in 2006. The origination and
servicing operations are based in Cardiff, Wales.
In Fitch's opinion, the future performance of the underlying
receivables is a key rating driver. Fitch analyzed obligor credit
risk by forming base case default and recovery assumptions and
then stressing these assumptions according to the rating level of
each note. Although the underlying contracts do not feature any
direct residual value risk, Fitch notes that 90% of the underlying
receivables are regulated by the Consumer Credit Act and are
therefore exposed to voluntary termination losses. In Fitch's
opinion, average used car values, original loan-to-value ratios
and original loan tenors are key drivers of VT risk. Fitch formed
a view on the extent of VT losses by estimating the future car
values relative to loan balances in different rating scenarios.
In common with other UK auto loan ABS transactions, the title to
the underlying vehicle will be retained by the originator;
however, the issuer has the right to receive all sale proceeds
from the vehicles. Based on the transaction's structure,
specifically the provision for an administrator recovery incentive
payment, Fitch's quantitative analysis has assumed that the issuer
will be able to realize sale proceeds from defaulted and
voluntarily terminated vehicles.
From closing, FRB will act as servicer. A replacement servicer
will be identified if FRB is downgraded below 'BBB-'. The issuer
has entered into a fixed / floating rate swap agreement with BNP
Paribas, London Branch (rated 'AA-'/Stable/'F1+') to hedge the
interest rate mismatch in relation to the Class A note. BNP
Paribas, London Branch will also act as account bank to the
issuer.
Fitch has a stable asset and rating performance outlook for the UK
auto ABS sector. Fitch considers that unemployment levels as well
as used car value are key drivers of asset performance in the UK
auto ABS sector.
WAKEFIELD TRINITY: Attracts Potential Buyers
--------------------------------------------
Skysports.com reports that Wakefield Trinity Wildcats Chairman Ted
Richardson claims four potential investors are interested in
securing deals to save the troubled outfit.
As reported in the Troubled Company Reporter-Europe on Feb. 3,
2011, BBC News said that Wakefield Trinity is to go into
administration to avoid a winding-up petition brought by Her
Majesty's Revenue and Customs. The report related that the club
is thought to owe more than GBP300,000 in unpaid tax. BBC News
noted that the Wildcats could now start the new season with an
automatic six-point penalty, the statutory punishment, under Rugby
Football League rules, for any club entering administration.
According to Skysports.com, Mr. Richardson said Wakefield Trinity
is still an attractive proposition for investors. "Two major
parties are looking to be involved in restructuring the club and I
think the end result will be very good," the report quoted Mr.
Richardson as saying. "Four groups have expressed an interest and
two already have approval from the RFL. I've been looking for
investors for years and unfortunately it's taken this to shake
them out," he added.
Meanwhile, The Press Association relates that Yorkshire
businessman Andrew Glover has emerged as a potential buyer of the
club. The report relates that Mr. Glover is backing a party known
as Spirit Of 1873 Limited and claims he has received provisional
approval by the Rugby Football League under the 'fit and proper
person' test, saying: "I want to stress that this is a serious and
fully costed bid to take over Wakefield's number one sports team
before the start of the new season."
"We are looking forward to doing a deal quickly with the
administrators to give us as much time as possible ahead of the
first competitive game of the season," Mr. Glover added.
The Press Association notes that Wakefield Trinity is hoping
Batley-based insolvency experts O'Hara and Co. can make a quick
sale, although the firm's spokesman Simon Weir confirmed that they
would not be able to secure control of the club for at least
another week. "There is no guarantee we will be appointed as
administrators and the earliest that can be done is a week on
Friday, although in an ideal situation we would be able to conduct
a sale pretty much the same day," The Press Association quoted Mr.
Weiss as saying.
Wakefield Trinity Wildcats is a professional rugby league club
that plays in the European Super League and is based in Wakefield.
It achieved promotion in 1999 and has remained in the League
since. The club is known to its fans as 'Wakey', 'Trinity',
'Wildcats', or historically 'The Dreadnoughts'.
* UNITED KINGDOM: Administration Levels Set to Rise in 2011
-----------------------------------------------------------
Rob Moore at Business Sale reports that new research by business
recovery specialist Begbies Traynor revealed that the number of UK
companies likely to fall into administration looks set to rise
this year, possibly by as much as 10%.
According to Business Sale, Mr. Traynor's report showed that
towards the end of 2010, the number of companies -- of all sizes
-- suffering financial distress skyrocketed. Almost 150,000 firms
reported cashflow difficulties during the three months to January,
representing a sharp incline of 20 per cent on the previous three
months, the report added, Business Sale notes.
* UK: Print and Packaging Insolvencies Fall by 24.6% in 2010
------------------------------------------------------------
Helen Morris at printweek.com, citing latest statistics from
insolvency specialist Experian, reports that print, paper and
packaging insolvencies fell by 24.6% to 52 companies in 2010.
Printweek.com relates that the percentage of the sector's business
population that failed last year was 1.71%, compared with 2.69% in
2009. Overall, the annual rate of business insolvencies in 2010
across the U.K. fell 18%, the first fall in two years.
According to printweek.com, some 1.04% of UK businesses failed in
2010, compared with 1.25% in 2009. The total number of
insolvencies decreased by 18% from 24,209 to 19,946 in 2010.
Prinkweek.com says Yorkshire saw the highest rate of insolvencies
throughout the year with an annual rate of 1.48%, while Scotland
maintained the lowest rate of insolvencies in 2010.
Printweek.com adds that Max Firth, managing director of Experian
PH, said 2010 was "a period of relative stability for business
insolvencies".
"Insolvency trends in 2010 included a north-south divide, with
firms in the south of England faring better, as well as a reversal
of fortunes for the largest companies," printweek.com quoted Mr.
Firth as saying. "Taken as a whole, those with more than 500
employees were not as resilient as they were in 2009."
===============
X X X X X X X X
===============
* BOOK REVIEW: Leveraged Mgmt Buyouts -- Causes and Consequences
----------------------------------------------------------------
Edited by Yakov Amihud
Beard Books, Washington, D.C. 2002
(reprint of 1989 book published by Dow Jones-Irwin)
268+xiii pages
US$34.95 trade paper, ISBN 1-58798-138-6
The twelve papers were first presented at a 1988 conference
sponsored by the Salomon Brothers Center for the Study of
Financial Institutions held at the New York University Leonard N.
Stern School of Business. The papers by leading business figures
were "intended to expand the understanding of the causes and
consequences of leveraged management buyouts and to contribute to
the debate on the appropriate public policy to be applied" [from
the editor Mr. Amihud's Preface]. This aim involved the analyses
of leveraged management buyouts [MBO] by businesspersons who had
participated in such transactions, review of the latest academic
research on the topic, and a critical look at the relevant
regulatory proposals. The interest in policy -- i. e., government
policy -- on MBO's is emphasized by the presence of the notable
Edward J. Markey -- at the time the chairman of the
Telecommunications and Finance Subcommitte of the U. S. House of
Representatives -- to give a paper on "Legislative Views on
Management Buyouts." The participaton of Joseph A. Grundfest of
the Securities and Exchange Commission adds to this emphasis.
Other participants are outstanding lawyers and professors in the
fields of corporate finance and buyouts and one participant from
Goldman, Sachs.
When the conference was held and the book published shortly
thereafter in the late 1980s, leveraged buyouts were occurring
across the United States business landscape in "unprecedented
levels, both in number and in size of transaction." One recalls
that this was the latter years of the two Reagan presidential
terms during which entrepreneurialism, deregulation, mergers and
acquistions, and other practices for new kinds of business growth
were officially encouraged. The Reagan policies created a new
business environment. MBOs were a part of this.
Resembling for the most part the leveraged buyouts (LBOs) which
were occurring widely at the time, MBOs were distinguished within
this activity in that "the incumbent management [of the firm being
bought out] acquires a substantially greater proportion of the
firms' equity than it previously had and the public firm is merged
into the privately owned firm that usually continues to operate
the acquired firm as an independent company." Oftentimes
particular assets and sometimes whole divisions of the acquired
firm are sold off. The firm acquiring a company is "normally a
group of investors [who formed] a shell holding corporation, whose
equity is privately held." Such investors would have a great deal
more latitude in making acquisitions and in selling off parts of
an acquired company than in typical mergers-and-acquisitions
between companies for the purposes of symbiosis or efficiencies in
operations for example. The managers of a company more or less
take this position toward their company in a leveraged management
buyout.
The concerns and questions raised especially by leveraged
management buyouts in the late 1980s are the same ones as today.
Then as now, MBOs "inspire the question of fairness and the
question of whether this form of restructuring has real economic
benefits." The papers try to answer these questions though no
definitive answers can be given since questions of fairness and
economic benefits raise further questions about fairness and
benefits for whom; and also business conditions are continually
changing leading to new perspectives and assessments of leveraged
management buyouts.
The severe United States' recession with global repercussions
starting in 2008 once again raises such ethical and economic
questions. The closing words of Roberta Romano of the Yale Law
School in her paper "Management Buyout Puzzles" still apply:
"Although we have learned a great deal about MBOs, in my
estimation, we are still groping in the dark." As in many
matters, there are no permanent answers or positions. Some MBOs
are right and beneficial, while others are wrong and harmful. The
learned papers of this collection help readers weigh which MBOs
are which type.
Yakov Amihud is the Ira Leon Rennett Professor of Entrepenurial
Finance at the NYU Stern School of Business who has written on
corporate finance, mergers and acquisitions, and securities'
trading.
*********
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, Julie Anne G. Lopez, 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 * * *