/raid1/www/Hosts/bankrupt/TCREUR_Public/110307.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
Monday, March 7, 2011, Vol. 12, No. 46
Headlines
B U L G A R I A
KREMIKOVTZI AD: Spanish Consortium May Buy Parts of Business
C Z E C H R E P U B L I C
SAZKA AS: Prague Court to Debate Insolvency Case on April 21
C Y P R U S
BANK OF CYPRUS: Moody's Cuts Bank Financial Strength Rating to D+
HELLENIC BANK: Moody's Cuts Financial Strength Rating to 'D-'
MARFIN POPULAR: Moody's Cuts Bank Financial Strength Rating to D-
D E N M A R K
ROSKILDE BANK: FSA Officials May Face Probe Over 2008 Collapse
F R A N C E
NOVASEP HOLDING: Moody's Junks Corporate Family Rating From 'B3'
REMY COINTREAU: S&P Gives Positive Outlook; Affirms 'BB-' Rating
G E R M A N Y
SCHLOTT GRUPPE: Insolvency Administrator Mulls Disposal
TUI AG: S&P Affirms 'CCC-' Rating on Perpetual Notes
G R E E C E
MARFIN EGNATIA: Moody's Confirms (P)Ba1 Subordinated Debt Ratings
H U N G A R Y
* HUNGARY: Mandatory Liquidation Procedures Up in February 2011
I R E L A N D
IRISH NATIONWIDE: Fitch Affirms Subordinated Debt Rating at 'C'
LIMERICK COUNTY GOLF: In Liquidation; Racks Up EUR2.5-Mil. Debts
SPRINGMANOR LIMITED: In Liquidation; Unicorn Continues to Trade
I T A L Y
BANCA UBAE: Fitch Puts 'BB+' Long-Term IDR on Negative Watch
ITALFINANCE SECURITIZATION: Fitch Affirms CCC Rating on 1-D Notes
N E T H E R L A N D S
PALLAS CDO: S&P Affirms 'BB-' Ratings on Two Classes of Notes
R O M A N I A
DTH TELEVISION: Competition Council Reviews Romtelecom Takeover
S P A I N
BANCAJA 11: S&P Downgrades Rating on Class D Notes to 'B(sf)'
CAJA SAN: S&P Downgrades Rating on Class B Notes to 'D'
U K R A I N E
FORUM BANK: Moody's Gives Negative Outlook; Affirms 'E+' Rating
U N I T E D K I N G D O M
AERO INDUSTRY: AADB to Investigate Firm's Collapse
AERO INVENTORY: Set to Be Sold by Administrators This Year
AUTO WINDSCREENS: Trifords Acquires Firm, Saves 250 Jobs
BIRMINGHAM CITY: Yeung Pledges Properties to Help Raise Funds
BRISTOL CARS: Goes Into Administration, Taps RSM Tenon
CREST NICHOLSON: Prepares to Implement Second Restructuring
EARTH ENERGY: Goes Into Administration on Fall of Public Spending
GAS TURBINE: Enters Into Restructuring Deal with Loan Note Holders
HIGHWOOD BREWERY: Set to go Into Liquidation; 50 Jobs at Risk
JJB SPORTS: Unveils Details of CVA Proposals
MORPHEUS PLC: S&P Downgrades Rating on E Loan to 'D (sf)'
NEWLAND PAINT: Crown Paints Acquires Firm Out of Administration
PUNCH TAVERNS: Fitch Downgrades Rating on Class C1 Notes to 'BB-'
SANDPIPERS HOTEL: Goes Into Administration, Operates Normally
TOWERGATE FINANCE: Fitch Assigns 'BB'/'RR1' Rating to Notes
* UNITED KINGDOM: January Business Insolvencies Down 11% to 1,266
* UK: Number Of Agencies Going Into Administration Falls in 2H '10
X X X X X X X X
* BOND PRICING: For the Week February 28 to March 4, 2011
*********
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B U L G A R I A
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KREMIKOVTZI AD: Spanish Consortium May Buy Parts of Business
------------------------------------------------------------
Novinite.com reports that Bulgarian Economy Minister Traicho
Traikov said a Spanish consortium has expressed interest in buying
"parts" of Kremikovtzi AD.
According to Novinite.com, Mr. Traikov, as cited by bTV and the
press service of the Economy Ministry, said the firms from the
Spanish consortium SHP-Advisers have declared readiness to apply
for EU funding for a EUR20 million project for "the re-cultivation
of the terrain" on which Kremikovtzi is standing.
No other details have been made public as to what exactly the
Spanish firms plan to do with Kremikovtzi, Novinite.com notes.
As reported by the Troubled Company Reporter-Europe on Feb. 9,
2011, Novinite.com said the third auction scheduled for the assets
of Kremikovtzi steel mill failed like the previous two, due to the
only bidder not presenting a satisfactory document for having paid
the required deposit. Victory Commerce quits its bid for the
company, Novinite.com disclosed.
On Feb. 7, 2011, the Troubled Company Reporter-Europe, citing
Novinite.com, related that Bulgaria regrouped the assets of
Kremikovtzi to cut their price. The assets were scheduled for
auction for a third time on Feb. 7 after failing to attract any
bidders in two previous auctions, Novinite.com disclosed. In
third auction the initial price was set at BGN395 million,
Novinite.com said.
As reported by the Troubled Company Reporter-Europe on July 29,
2010, Bloomberg News, citing a report from the receiver, said the
mill's assets total BGN840 million, while debt was estimated at
BGN1.9 billion. Bloomberg recalled the Sofia City Court declared
Kremikovtzi bankrupt on May 31, 2010. The Sofia-based plant was
placed in receivership in 2008 after failing to pay suppliers and
investors holding BGN325 million (US$422 million) of bonds,
Bloomberg disclosed. Creditors rejected a restructuring plan in
October 2009, opting to be repaid under insolvency laws, Bloomberg
recounted. Bloomberg noted that of the total liabilities, 42% are
owed to state-run power and gas utilities, the state railways and
tax authorities.
About Kremikovtzi
Kremikovtzi AD Sofia -- http://www.kremikovtzi.com/-- is a
Bulgaria-based company principally engaged in the steel industry.
Its production capacity includes a complete steel production
cycle, from ore mining to finished products, such as hot rolled
and cold rolled products (coils, slabs, plates, blooms and
billets), different thickness wire rods and tubes. The Company's
product range also includes coke and chemical products, flat
products, ferro-alloys and metallurgical lime, and other products.
The Company operates through a number of subsidiaries, including
Ferosplaven zavod EOOD, NLA 2000 EOOD, Kremikovtzi Rudodobiv AD,
Metalresource OOD and others. The Company is 71%-owned by
Finmetals Holding AD.
===========================
C Z E C H R E P U B L I C
===========================
SAZKA AS: Prague Court to Debate Insolvency Case on April 21
------------------------------------------------------------
According to Bloomberg News' Ladka Bauerova, CTK, citing the
online insolvency registry, reported that the Prague city court
will begin to debate the insolvency case against Sazka AS on
April 21.
As reported by the Troubled Company Reporter-Europe on Feb. 23,
2011, CTK said the Prague Municipal Court named Josef Cupka as
preliminary insolvency administrator for Sazka. KKCG SF, Karel
Komarek's investment group, registered a CZK409 million overdue
claim into the insolvency register on Feb. 10 and filed a proposal
for naming a preliminary insolvency received at the court on Feb.
15, CTK disclosed. The court rejected the proposal to order an
injunction that Sazka can take all important steps only with the
preliminary administrator's approval and to name a preliminary
creditor committee, CTK related. CTK noted that Mr. Cupka would
also be the insolvency administrator if Sazka was declared
insolvent.
Sazka AS is a provider of lotteries and sport betting games in the
Czech Republic.
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C Y P R U S
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BANK OF CYPRUS: Moody's Cuts Bank Financial Strength Rating to D+
-----------------------------------------------------------------
Moody's Investors Service has downgraded the long-term deposit and
debt ratings, as well as the standalone bank financial strength
rating of Bank of Cyprus Public Co Ltd to Baa2/D+ from A3/C-. The
rating action concludes the review for possible downgrade which
Moody's initiated on Jan. 13, 2011. BoC's Prime-2 short-term
rating has not been affected by the rating action. The outlook on
all ratings is now stable.
The key drivers for the rating actions are:
1. The rating agency's recent decision to downgrade the ratings of
the Cypriot government by two notches to A2 from Aa3 and the
subsequent repositioning of the country's systemic support
indicator at the level of the national government debt rating
of A2 from Aa2;
2. The re-assessment of the bank's intrinsic financial strength
(as reflected by its standalone BFSR), primarily due to the
deterioration in asset quality over the past year, and Moody's
expectations of a further deterioration in asset quality both
in Greece and Cyprus;
A detailed list of the ratings affected is provided at the end of
this press release.
Ratings Rationale
Deposit and Debt Ratings
The downgrade of BoC's long-term debt and deposit ratings to Baa2
from A3 follows Moody's decision to downgrade the ratings of the
Cypriot government to A2 from Aa3. The downgrade of the Cypriot
government's rating has prompted Moody's to lower its assessment
of the capacity of the Cypriot government to support its banking
system and in turn BoC, whose balance sheet size exceeds total GDP
for Cyprus.
Moody's utilises a systemic support indicator as an anchor to
assess a country's capacity to support its banking system in case
of need, and uses the SSI to assign the supported deposit and debt
ratings of banks. Cyprus' SSI has been repositioned at the same
level as the national government's new debt rating of A2. The SSI
was previously Aa2, one notch above the old rating of the
government. This realignment of the SSI with the government's
rating not only reflects the weakened ability of the government,
but also the size of contingent liabilities of the banking system
relative to the balance sheet of the government and, in Moody's
opinion, the somewhat increased risk that these contingent
liabilities may crystallize on the sovereign's balance sheet.
However, Moody's notes that the national government's commitment
to support its banking system in case of need remains high, and
the deposit and senior debt ratings of BoC continue to benefit
from a two-notch rating uplift from their stand-alone ratings due
to systemic support considerations.
Standalone BFSR
The standalone BFSR of BoC has been downgraded to D+ (mapping into
a baseline credit assessment of Ba1) from C- previously, primarily
due to the deterioration in asset quality over the past year.
Moreover, the rating action reflects Moody's expectations of a
further deterioration in asset quality given the still challenging
operating conditions domestically and more so in Greece, where the
bank has significant exposures. The bank's problematic loans
(impaired loans + loans not impaired but past due over 90 days)
climbed to 12.4% at end 2010 from 8.5% as at end-2009. Through
its sizeable branch network, the bank has a high exposure to the
Greek market (loans to Greece account for 35% of group loans),
where adverse macroeconomic fundamentals continue to lead to high
non-performing loan-formation rates and depress profitability for
the bank's Greek operations. As regards Cypriot operations that
account for the majority of Group assets, an expected fragile
economic recovery during 2011 is likely to lead to a further rise
in NPLs.
An important consideration that has led to the rating action is
the increased, and high in absolute terms, level of problem loans
(as defined by Moody's to include all loan past due by over 90
days) that are not covered by provisions. Furthermore, while net
problem loans (problem loans net of provisions) are fully covered
by tangible (mostly real estate) collateral, the recent downturn
in the real estate market has had a negative impact on the
liquidity of the market, leading to concerns over the
recoverability of such collateral.
Positively, Moody's notes the bank's good liquidity position, its
deposit-funded profile and its ample capital adequacy ratios (Tier
1 at around 11.1%) that are expected to increase further as a
result of management's proposed EUR1.3 billion issue of
convertible enhanced capital securities. Furthermore, current
profitability levels should allow the bank to absorb higher levels
of provisioning if needed.
Stable Outlook
The stable outlook reflects Moody's view that the Baa2 deposit and
debt ratings sufficiently capture current credit risks from the
bank's asset quality deterioration, and that, at present, upside
and downside risks are evenly balanced.
These ratings were downgraded with a stable outlook:
-- Deposit and senior debt ratings to Baa2 from A3;
-- Subordinated debt rating to Baa3 from Baa1;
-- Junior subordinated notes rating to (P)Ba2 (hyb) from (P)Baa3
(hyb);
-- Standalone BFSR to D+ (mapping to a long-term equivalent of a
Ba1) from C-;
The previous rating action on BoC's deposit and debt ratings was
implemented on Jan. 13, 2011, when Moody's placed these ratings on
review for downgrade following a similar action on the ratings of
the Republic of Cyprus.
Headquartered in Nicosia, Cyprus, Bank of Cyprus Public Co Ltd
reported total consolidated assets of EUR42.6 billion as of
December 2010.
HELLENIC BANK: Moody's Cuts Financial Strength Rating to 'D-'
-------------------------------------------------------------
Moody's Investors Service has downgraded the deposit and debt
ratings, as well as the standalone bank financial strength rating
of Hellenic Bank Public Co Ltd to Ba1/Not Prime/D- from
Baa2/Prime-2/D. The rating action concludes the review for
possible downgrade which Moody's initiated on 13 January 2011.
The outlook on all ratings is now stable.
The key drivers for the rating action are:
1. The rating agency's recent decision to downgrade the ratings of
the Cypriot government by two notches to A2 from Aa3 and the
subsequent repositioning of the country's systemic support
indicator at the level of the national government debt rating
of A2 from Aa2;
2. The re-assessment of the bank's intrinsic financial strength
(as reflected by its standalone BFSR), primarily due to the
deterioration in asset quality over the past year, in
conjunction with Moody's expectations of a further
deterioration in asset quality;
A detailed list of the ratings affected is provided at the end of
this press release.
Ratings Rationale
Deposit and Debt Ratings
The downgrade of Hellenic's debt and deposit ratings to Ba1/ Not
Prime from Baa2/ Prime-2 follows Moody's decision to downgrade the
ratings of the Cypriot government to A2 from Aa3. The downgrade
of the Cypriot government's rating has prompted Moody's to lower
its assessment of the capacity of the Cypriot government to
support its banking system and in turn Hellenic.
Moody's utilizes a systemic support indicator as an anchor to
assess a country's capacity to support its banking system in case
of need, and uses the SSI to assign the supported deposit and debt
ratings of banks. Cyprus' SSI has been repositioned at the same
level as the national government's new debt rating of A2. The SSI
was previously Aa2, one notch above the old rating of the
government. The realignment of the SSI with the government's
rating reflects the government's reduced capacity and the size of
the contingent liabilities of the banking system relative to the
balance sheet of the government and, in Moody's opinion, the
somewhat increased risk that these contingent liabilities may
crystallize on the sovereign's balance sheet.
Moody's has also adjusted its views on the likelihood of systemic
support for Hellenic, relative to its larger, more systemically
important, domestic peers. Notwithstanding this adjustment, the
national government's commitment to support its banking system,
and in turn Hellenic, remains high in Moody's opinion. The
deposit and senior debt ratings of Hellenic benefit from a two-
notch rating uplift from their stand-alone ratings due to systemic
support considerations.
Standalone BFSR
The standalone BFSR of Hellenic has been downgraded to D- (mapping
into a baseline credit assessment of Ba3) from D in order to
capture the deterioration in the bank's asset quality and
profitability metrics.
Hellenic's asset quality metrics have weakened over the past year
amid challenging operating conditions, and Moody's expects a
further deterioration in both Cyprus and in Greece. Hellenic's
non-performing loans (as reported by the bank) increased to 9.8%
of gross loans in December 2010, from 8.5% in the previous year.
Hellenic's asset quality and profitability metrics are also weaker
than its locally rated peers, primarily due to past control issues
in its Greek operations (loans in Greece account for a relatively
moderate 20% of total group loans). The bank has taken action
over the past two years to address deficiencies in the country's
control procedures and has brought Greek operations into close
oversight of head office decision makers. However, Moody's
expects further deterioration in asset quality indicators due to
the severity of operating conditions in Greece and the weak,
fragile economic recovery in Cyprus.
Although net problem loans (problem loans net of provisions) are
fully covered by tangible (mostly real estate) collateral, they
comprise a large share of the bank's shareholder's equity, with
the recent downturn in real estate prices having an impact on the
liquidity of the Cyprus property market, leading to concerns on
the recoverability of such collateral. Moody's expects bottom
line profits to remain under pressure, primarily due to the bank's
loss-making Greek operations, and high provisioning charges.
More positively, the rating agency notes the bank's capital
raising efforts that have lifted its Tier 1 capital to 12.3%,
which is considered adequate to withstand future losses arising
from the deterioration in the operating environment. Furthermore,
Hellenic's liquidity position is good, reflecting conservative
liquidity management practices, which partly mitigate the bank's
high reliance on offshore deposits.
Stable Outlook
The stable outlook reflects Moody's view that the Ba1 deposit and
debt rating sufficiently captures current credit risks from the
bank's asset quality deterioration, and that, at present, upside
and downside risks are evenly balanced.
These ratings were downgraded with a stable outlook:
-- Deposit and senior debt ratings to Ba1/Not Prime from
Baa2/Prime-2; outlook stable;
-- Standalone BFSR to D- (mapping to a baseline credit
assessment of Ba3) from D; outlook stable;
The previous rating action on Hellenic's deposit and debt ratings
was implemented on Jan. 13, 2011, when Moody's placed these
ratings on review for downgrade following a similar action on the
ratings of the Republic of Cyprus.
Headquartered in Nicosia, Cyprus, Hellenic Bank Public Co Ltd
reported total consolidated assets of EUR8.2 billion as of
December 2010.
MARFIN POPULAR: Moody's Cuts Bank Financial Strength Rating to D-
-----------------------------------------------------------------
Moody's Investors Service has downgraded the deposit and debt
ratings, as well as the standalone bank financial strength rating
of Marfin Popular Bank Public Co Ltd to Baa3/Prime-3/D- from
Baa2/Prime-2/D+. The outlook on the ratings is negative. The
rating action concludes the review for possible downgrade, which
Moody's initiated on Jan. 13, 2011.
The key drivers for the rating action are:
1. The rating agency's recent decision to downgrade the ratings of
the Cypriot government by two notches to A2 from Aa3 and the
subsequent repositioning of the country's systemic support
indicator at the level of the national government debt rating
of A2 from Aa2;
2. The re-assessment of the bank's intrinsic financial strength
(as reflected by its standalone BFSR), primarily due to the
deterioration in asset quality over the past year and Moody's
expectations of a further deterioration in asset quality both
in Greece and Cyprus.
A detailed list of the ratings affected is provided at the end of
this press release.
Ratings Rationale
Deposit and Debt Ratings
The downgrade of MPB's debt and deposit ratings to Baa3/Prime-3
from Baa2/ Prime-2 follows Moody's decision to downgrade the
ratings of the Cypriot government to A2 from Aa3. The downgrade
of the Cypriot government's rating has prompted Moody's to lower
its assessment of the capacity of the Cypriot government to
support its banking system and in turn MPB, whose balance sheet
size exceeds total GDP for Cyprus.
Moody's utilizes a systemic support indicator (SSI) as an anchor
to assess a country's capacity to support its banking system in
case of need, and uses the SSI to assign the supported deposit and
debt ratings of banks. Cyprus' SSI has been repositioned at the
same level as the national government's new debt rating of A2.
The SSI was previously Aa2, one notch above the old rating of the
government. The realignment of the SSI with the government's
rating reflects the government's reduced capacity and size of the
contingent liabilities of the banking system relative to the
balance sheet of the government and, in Moody's opinion, the
somewhat increased risk that these contingent liabilities may
crystallize on the sovereign's balance sheet.
However, Moody's notes that the national government's commitment
to support its banking system in case of need remains high, and
the deposit and senior debt ratings of MPB benefit from a three-
notch rating uplift from their stand-alone ratings due to systemic
support considerations.
Standalone BFSR
The standalone BFSR of MPB has been downgraded to D- (mapping into
a baseline credit assessment of Ba3) from D+ in order to capture
the bank's tighter liquidity and funding position, as well as the
rating agency's expectations of a further deterioration in the
bank's asset quality.
Moody's notes that MPB has a higher reliance on ECB financing than
its domestic peers (17% of consolidated assets), which in
conjunction with its lower ECB-eligible assets (due to stricter
ECB collateral policies), makes the bank more susceptible to any
additional event-risk related to its investment portfolio or a
weakening in its funding profile. In addition, erosion of market
confidence, over the last years, has curtailed access to the
wholesale/bond markets for its Greek subsidiary Marfin Egnatia
Bank (expected to be merged into MPB at end-March 2011). Although
Moody's acknowledges the bank's high overall liquidity ratios and
its ability to reduce ECB financing if required, this would have a
negative impact on both its profitability and capital adequacy
ratios. A reduction in ECB financing would require the sale of
investments and the realisation of mark-to-market losses on
instruments that are being held at amortized cost. Liquidity
concerns are partly mitigated by the bank's growing deposit-funded
profile in Cyprus (with a 7% growth in group deposits despite
deposit outflows in Greece) and moderate market funding needs over
the next two years.
Among the top three Cypriot banks, Marfin Popular Bank's exposure
to Greece (45% of group loans) presents significant downside risks
to the bank's asset quality. As at December 2010, the bank's non-
performing loans had risen to 7.3% from 6.1% as at end-2009.
More positively, however, Moody's notes the bank's recently
successful capital raising, which has strengthened its capital
adequacy ratio to an estimated pro-forma Tier 1 ratio of 12.0%;
the rating agency considers this adequate to withstand possible
losses arising from the deterioration in the operating
environment.
Negative Outlook
The negative outlook on the bank's ratings primarily reflects the
downside risks imbedded in MPB's operating environment over the
next year, which could lead to an erosion of asset quality beyond
what is currently assumed under Moody's base case scenario.
Moody's notes that relative to its capital base, the bank's
exposure to single-party credit-related event risk is large.
MPB's holdings in low-rated Greek sovereign debt of approximately
EUR3 billion (90% of pro-forma Tier 1) is the highest amongst
Cypriot banks. Moody's also notes that, despite some flexibility
in its domestic market, the bank's liquidity and funding position
entails some elements of uncertainty due to the significance of
its Greek operations.
These ratings were downgraded with a negative outlook:
-- Deposit and senior debt ratings to Baa3/Prime-3 from
Baa2/Prime-2;
-- Subordinated debt rating to Ba1 from Baa3;
-- Standalone BFSR to D- (mapping to a baseline credit
assessment of Ba3) from D+;
The previous rating action on MPB's deposit and debt ratings was
implemented on Jan. 13, 2011, when Moody's placed these ratings on
review for downgrade following a similar action on the ratings of
the Republic of Cyprus. The previous rating actions on the
standalone BFSR was implemented on July 5, 2010, when Moody's
downgraded the bank's BFSR, deposit and debt ratings and assigned
a negative outlook.
Headquartered in Nicosia, Cyprus, Marfin Popular Bank Public Co
Ltd reported total consolidated assets of EUR42.6 billion as of
December 2010.
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D E N M A R K
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ROSKILDE BANK: FSA Officials May Face Probe Over 2008 Collapse
--------------------------------------------------------------
Christian Wienberg at Bloomberg News reports that Danish Economy
Minister Brian Mikkelsen said he may start a probe into three
officials at the country's Financial Supervisory Authority.
According to Bloomberg, the Copenhagen-based ministry said in an
e-mail Friday that an independent investigation has found "some
flaws" in the authority's supervision of Roskilde Bank A/S, which
failed in 2008 from mounting writedowns.
Bloomberg relates that the ministry said the FSA is in itself not
to blame for Roskilde's collapse and the authority performed "in
general terms and as an absolute rule" its duties according to the
law.
Roskilde Bank was a local Danish bank. It was based in Roskilde
with branches over much of Region Hovedstaden.
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F R A N C E
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NOVASEP HOLDING: Moody's Junks Corporate Family Rating From 'B3'
----------------------------------------------------------------
Moody's Investors Service has downgraded the corporate family
rating of Novasep Holding S.A.S. to Caa1 from B3 and the company's
probability of default rating to Caa1 from B2. Concurrently, the
rating agency has downgraded to Caa1 from B3 the company's
EUR270 million and US$150 million worth of senior secured notes,
both maturing in December 2016. The outlook is stable. The
rating action concludes the review for possible downgrade that was
initiated by Moody's on Dec. 1, 2010.
Ratings Rationale
"The downgrade of Novasep's ratings to Caa1 from B3 reflects its
weaker-than-expected operating performance, which will
significantly delay the company's de-leveraging process," said
Marie Fischer-Sabatie, a Moody's Vice President-Senior Analyst and
lead analyst for Novasep. "While Moody's was expecting Novasep to
achieve a debt/EBITDA ratio of around 6x at year-end 2010, the
company's recent underperformance against its business plan has
impaired this process, with leverage standing at around 8x at
year-end 2010 and expected to remain elevated in 2011," added
Ms. Fischer-Sabatie.
As per Novasep's guidance as of the end of October 2010, the
company's adjusted EBITDA for the full-year 2010 should be around
EUR55 million, approximately EUR10 million, or 15%, lower than in
2009 and significantly below the figure Moody's had expected.
Novasep's Synthesis division in Europe has been negatively
impacted by the decline in sales related to legacy contracts,
which has not been offset by new contract sales. Unlike the
Process division, which has strong operations in the growing area
of biopharmaceutical products, the Synthesis division is more
focused on the manufacturing of active pharmaceutical ingredients
and intermediates for small-molecule drugs. The patents on a
great number of these products have expired and patent expiries
will continue over the coming years, resulting in revenue
pressures for Novasep. As with other companies in the life
sciences industry that supply the pharmaceuticals sector, Novasep
has been negatively impacted by the increased focus of
pharmaceuticals companies on cost optimization and by the recent
consolidation wave, which has led to increased price pressure on
suppliers.
While Moody's notes Novasep's reduced capital expenditure and
improved working capital, the rating agency expects the company to
have generated negative free cash flow for the full year 2010.
The rating agency estimates Novasep's debt/EBITDA to be
approximately 8x for 2010 (including Moody's adjustments and
adjusted for restructuring costs). Moody's expects Novasep to
continue to experience pressure on its revenues and profits in
2011, delaying its de-leveraging to 2012 or beyond. However, the
rating agency notes positively the renewal of Novasep's largest
contract in early February 2011, which will provide the company
with a steady flow of EBITDA until 2016.
The alignment of the PDR with the CFR reflects Moody's
expectations for a recovery rate in line with historical
experience.
The stable rating outlook reflects Moody's expectation that
Novasep's operating performance could progressively stabilize as a
result of the reduced decline in sales of legacy products at the
Synthesis division and the adaptation of the company's cost
structure. Novasep has effectively taken measures to restructure
its Synthesis division in Europe and reduce costs, which have a
high fixed component. Novasep's free cash flow could remain
negative during 2011, but Moody's would expect the decline in the
company's cash balance to be limited and funds to remain
sufficient to accommodate for cash flow swings of EUR10-20 million
during the year. The stable outlook also reflects the company's
business segment and geographic diversity, as well as the "take or
pay" feature of around half of its Synthesis contracts, which
helps mitigate revenue and cash flow volatility.
Downward pressure on the outlook and/or rating could develop if
Novasep reduces further its cash balance by more than
EUR10 million cumulatively and therefore weakens its liquidity
profile further. Upward pressure could develop if Novasep's
operating performance improves and the company is able to de-
leverage such that its debt/EBITDA moves to around 5.5x.
Novasep, headquartered in Pompey, France, is a leading provider of
contract manufacturing services for life science industries and a
manufacturer of purification equipment. Novasep reported revenues
of EUR307 million for the last 12 months to September 2010.
REMY COINTREAU: S&P Gives Positive Outlook; Affirms 'BB-' Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it has revised its
outlook on French spirits manufacturer Remy Cointreau S.A. to
positive from stable.
At the same time, Standard & Poor's affirmed its 'BB-' long-term
corporate credit rating on the company and its 'BB-' rating on
Remy Cointreau's unsecured bonds maturing in 2016. The recovery
rating on the bonds remains unchanged at '3', reflecting S&P's
expectation of meaningful (50%-70%) recovery for bondholders in
the event of a payment default. S&P continue to foresee
recoveries at the high end of the 50%-70% range.
"The outlook revision reflects S&P's view of Remy Cointreau's
solid performance in every region of operations, in particular in
Asia," said Standard & Poor's credit analyst Florence Devevey.
The company's credit metrics have improved and, S&P believes, will
continue to do so in the short-to-medium term, on the back of
continued growth in sales and profitability, and solid positive
free operating cash flow generation. Remy Cointreau's financial
profile is further supported, in S&P's opinion, by the company's
improved debt maturity profile and covenant headroom.
S&P believes that achieving and maintaining a ratio of Standard &
Poor's-adjusted debt to EBITDA of less than 3.0x, and FFO to debt
of more than 20%, could be consistent with a higher rating.
"An upgrade would nonetheless be contingent on the company's
expressed policy commitment to less aggressive credit metrics than
historically," said Ms. Devevey.
Downside risk could arise if Remy Cointreau failed to sustain a
financial profile in line with the current rating--in particular,
adjusted FFO to net debt of about 15% and adjusted net debt to
EBITDA below 3.5x--due to prolonged weakening in its operating
performance, acquisitions, or shareholder returns. S&P could also
lower the rating if the company failed to comply with its covenant
or maintain what S&P considers to be adequate liquidity at all
times.
The rating on Remy Cointreau continues to reflect S&P's view of
the company's "aggressive" financial risk profile--constrained by
a demanding leverage covenant and a track record of high dividend
payments--and a limited product diversification compared with
leading peers'. Rating support stems from Remy Cointreau's
leading position in cognac and its presence in other high-margin
drink categories, and from its now well-balanced geographic
exposure between North America, Europe, and Asia.
=============
G E R M A N Y
=============
SCHLOTT GRUPPE: Insolvency Administrator Mulls Disposal
-------------------------------------------------------
schlott gruppe AG's provisional insolvency administrator will be
seeking the disposal of the company and its subsidiaries by
implementing an asset deal.
Within this context, it is considered unlikely that the
shareholders of schlott gruppe will participate in any proceeds
generated therefrom, according to the Company's press release.
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.
TUI AG: S&P Affirms 'CCC-' Rating on Perpetual Notes
----------------------------------------------------
Standard & Poor's Ratings Services said that it revised the
recovery rating on Germany-based tourism and shipping conglomerate
TUI AG's senior unsecured pari passu-ranking debt to '3' from '4'.
The recovery rating of '3' indicates S&P's expectation of
meaningful (50%-70%) recovery in the event of a payment default.
The issue rating on the senior unsecured pari passu-ranking debt
was affirmed at 'B-', in line with the long-term corporate credit
rating on TUI. The senior unsecured debt comprises a
EUR625 million senior bond maturing in 2011; a EUR450 million
senior fixed-rate bond maturing in 2012; a EUR694 million
convertible bond maturing in 2012; a EUR218 million convertible
bond maturing in 2014; and a EUR100 million private placement
maturing in 2014.
The recovery rating on TUI's EUR300 million perpetual notes
remains unchanged at '6', indicating S&P's expectation of
negligible (0%-10%) recovery in the event of a payment default.
The issue rating on these notes was affirmed at 'CCC-', three
notches lower than the corporate credit rating. The downward
notching is greater than the standard two notches under S&P's
recovery rating scale, due to the perpetual notes' deferability.
The revision of S&P's recovery rating on the senior unsecured debt
reflects its view that TUI has simplified its asset structure in
recent months through material repayments of shareholder loans.
These repayments follow a recovery in profitability at TUI's
35.3%-owned subsidiary TUI Travel PLC (in which TUI has about 55%
voting rights; not rated) and 49.8%-owned subsidiary, Hapag-Lloyd
AG (HL; BB-/Stable/--). This combination of factors, in S&P's
view, increases the visibility over the value and recovery
potential from TUI's various assets. In S&P's opinion, this
supports higher recovery prospects for the senior unsecured
debtholders. However, S&P note that the recovery prospects remain
relatively volatile as they are linked to equity valuations.
Recovery Analysis
To calculate recovery, S&P simulates a hypothetical default
scenario. S&P believes that a default would occur when TUI's cash
needs--mainly made up of interest expenses, debt repayment, and
some overhead costs--are no longer covered by its cash inflows,
and when all available liquidity sources have been used up.
In S&P's opinion, refinancing risk would be the main trigger of
default, caused by limited success in TUI's asset streamlining
program and a reduction in dividends from the group's main
investments. S&P also assume that the proceeds of shareholder
loan repayments from TTP and HL would be used to support TUI's
overall liquidity and refinancing needs.
S&P take into account these in its valuation of TUI:
TUI's shares in TTP, based on 55% ownership and assuming a 40%
haircut to the current valuation. S&P assume that TUI would seek
to retain the circa 8% of TTP that TUI owns through the special-
purpose vehicle Antium Finance Ltd. and the circa 12% that it owns
through Nero Finance Ltd. by repayment of the exchangeable and
convertible debt raised against these shares.
Some value from the group's hotels and other real estate assets,
applying a haircut to the book value of these assets.
The value from TUI's sale of the Hamburg office building, owned by
TUI but occupied by HL.
Some value from TUI's equity stake in HL, but disregarding the
potential value stemming from HL's circa EUR180 million vendor
loan and circa EUR350 million Hybrid II loan. S&P assume that TUI
will use some of its cash balances to repay the EUR625 million
notes due 2011, as well as to partially address its 2012
maturities, consisting of the EUR450 million senior fixed-rate
bond and the EUR694 million convertible bond. S&P also consider
it possible that TUI would seek to use cash balances to repay
exchangeable and convertible debt raised against about 20% of the
shares in TTP.
S&P calculate a stressed enterprise value of about EUR2.3 billion
at S&P's hypothetical point of default in late 2012 or early 2013.
After deducting priority liabilities of about EUR330 million--
comprising enforcement costs, finance leases, and 50% of pension
liabilities at the TUI level--S&P calculates a net stressed
enterprise value of about EUR1,970 million. S&P then deducts
structurally senior debt, consisting of the secured and unsecured
debt at TUI's restricted subsidiaries and prepetition interest
amounting to about EUR400 million. This leads to S&P's view that
coverage would be meaningful (50%-70%) for TUI's senior unsecured,
pari passu-ranking debt, which equates to a recovery rating of
'3', and an issue rating of 'B-', in line with the corporate
credit rating. S&P estimates coverage for the EUR300 million
perpetual notes to be negligible (0%-10%).
Importantly, S&P views recovery prospects as relatively volatile
due to the reliance on equity values. A downturn in asset values
could therefore ultimately lead to lower recovery prospects.
Additionally, S&P considers there to be multijurisdictional risks,
as the operations of TUI's subsidiaries are widely spread. In
S&P's experience, multijurisdictional insolvency proceedings can
lower or delay the ultimate recovery prospects. S&P also view the
unsecured nature of the pari passu-ranking debt and the risk that
the group would incur additional debt on the path to default as
limiting factors. Therefore, S&P does not see any upside for the
recovery ratings.
Ratings List
Ratings Revised/Affirmed/Unchanged
TUI AG
To From
-- ----
Senior Unsecured Debt B- B-
Recovery Rating 3 4
Perpetual Notes CCC- CCC-
Recovery Rating 6 6
===========
G R E E C E
===========
MARFIN EGNATIA: Moody's Confirms (P)Ba1 Subordinated Debt Ratings
-----------------------------------------------------------------
Moody's Investors Service has confirmed the Baa3/Prime-3 deposit
and debt ratings of Marfin Egnatia Bank of Greece. The bank's
(P)Ba1 subordinated debt rating, as well as the (P)Baa3 senior and
(P)Ba1 subordinated debt ratings of MEB's funding subsidiary,
Egnatia Finance plc, were also confirmed. All the above-mentioned
ratings carry a negative outlook. MEB's standalone bank financial
strength rating remains unchanged at E+. This concludes the
rating review initiated on Jan. 21, 2011.
Ratings Rationale
Moody's decision to confirm MEB's ratings at the current levels
follows (i) the conclusion of the review of MEB's Cyprus-based
parent bank ratings (Marfin Popular Bank Public Company Ltd) at
Baa3/Prime-3 with a negative outlook; and (ii) the upcoming full
absorption of MEB by MPB on 31 March 2011, which now appears to be
irreversible, given that shareholder and legal approvals are
already in place. Once the merger is completed, MEB's obligations
will become obligations of MPB, MEB will cease to exist as a
separate legal entity and its ratings will be withdrawn. Within
that context, Moody's has aligned MEB's deposit and debt ratings
with those of its parent bank.
Moody's last rating action for Marfin Egnatia Bank was implemented
on July 5, 2010, when the deposit and debt ratings were downgraded
to Baa3/Prime-3 from Baa2/Prime-2. On Jan. 21, 2011, Moody's also
announced that it had placed the bank's deposit and debt ratings
on review with direction uncertain.
Headquartered in Athens, Greece, Marfin Egnatia Bank SA reported
consolidated total assets (unaudited) of EUR22.7 billion as of
September 2010.
=============
H U N G A R Y
=============
* HUNGARY: Mandatory Liquidation Procedures Up in February 2011
---------------------------------------------------------------
MTI-Econews, citing company information provider Opten, reports
that the number of mandatory liquidation procedures initiated
against Hungarian companies came to 1,528 in February, 208 more
than in the same month a year earlier.
According to MTI, the number of voluntary liquidations rose by 882
to a record 2,251 in February from a year earlier.
=============
I R E L A N D
=============
IRISH NATIONWIDE: Fitch Affirms Subordinated Debt Rating at 'C'
---------------------------------------------------------------
Fitch Ratings considers the tender offer by Irish Nationwide
Building Society for its lower Tier 2 subordinated debt as a
coercive debt exchange, according to its criteria. The agency has
affirmed the bank's subordinated debt at 'C.
INBS is offering a cash exchange at 20% of the nominal amount of
securities, and plans to approve the insertion of a call to redeem
at 1/1000% of nominal for any subordinated debt securities that
are not tendered. Fitch notes that the European Commission
required 'adequate burden sharing by subordinated debt holders' as
a condition of the approval of INBS's recapitalization by the
Irish government in December 2010.
Fitch has also maintained INBS's Long-and Short-term Issuer
Default Ratings of 'BB-' and 'B', respectively, Support Rating of
'3' and Support Rating Floor of 'BB-' on Rating Watch Negative. A
full list of rating actions is at the end of this release.
As an exception to Fitch's criteria on CDEs, the agency has not
placed INBS's IDR at 'RD' (Restricted Default) as Fitch believes
the Irish authorities are still likely to want to avoid a default
or coercive burden sharing for the banks' senior unsecured,
unguaranteed creditors. For a similar action, see the rating
action "Fitch Maintains Anglo's Ratings on Debt Exchange"
published on 25 October 2010.
The rating actions are:
Irish Nationwide Building Society
-- Long-term IDR: 'BB-'; RWN maintained
-- Short-term IDR: 'B'; RWN maintained
-- Individual Rating: affirmed at 'E'
-- Support Rating: '3'; RWN maintained
-- Support Rating Floor: 'BB-'; RWN maintained
-- Senior unsecured notes: 'BB-'; RWN maintained
-- Subordinated debt: affirmed at 'C'
-- Sovereign-guaranteed notes: affirmed at 'BBB+'
-- Sovereign-guaranteed Long-term deposits: affirmed at 'BBB+'
-- Sovereign-guaranteed Short-term deposits: affirmed at 'F2'
-- Sovereign-guaranteed Long-term interbank liabilities:
affirmed at 'BBB+'
-- Sovereign-guaranteed Short-term interbank liabilities:
affirmed at 'F2'
LIMERICK COUNTY GOLF: In Liquidation; Racks Up EUR2.5-Mil. Debts
----------------------------------------------------------------
Belfast Telegraph, citing Irish Independent, reports that Limerick
County Golf & Country Club has gone bust after running up debts of
more than EUR2.5 million.
Liquidator Gearoid Costelloe of Grant Thornton has been appointed
to the firm, Belfast Telegraph relates.
According Belfast Telegraph, the biggest debt of EUR2.3 million is
owed to Allied Irish Banks (AIB). Other creditors include the
Revenue Commissioners, which is due EUR75,867, Belfast Telegraph
notes.
Belfast Telegraph says an estimated statement of affairs, prepared
by the company, showed debts of EUR2.58 million -- 99 unsecured
creditors are owed a total of EUR1.5 million. The company ceased
trading in January but had been in difficulty for some time,
Belfast Telegraph recounts.
The accounts for the club show losses of more than EUR3 million
for the March year end, while a shareholders's deficit of EUR1.8
million was also reported, Belfast Telegraph discloses.
Limerick County Golf & Country Club is part-owned by Shannon
Airport Authority Chairman Brian O'Connell.
SPRINGMANOR LIMITED: In Liquidation; Unicorn Continues to Trade
---------------------------------------------------------------
The Irish Times reports that Unicorn Restaurant in Dublin remained
open for business on March 3 after a company relating to the
business, Springmanor Limited, was placed in liquidation, owing
creditors an estimated EUR2.2 million.
The Irish Times says the Unicorn, which is owned by Georgio Casari
and Jeffrey Stokes, plans to continue to trade.
The Irish Times relates that at a creditors meeting hosted by the
insolvency and liquidation firm Butler Reddy in Dublin on March 3,
it emerged that Springmanor Ltd has a book value of EUR2.66
million, but its assets are estimated to realize just EUR853,105.
According to the report, the bulk of the assets relate to a
leasehold interest on the Il Segreto restaurant, which is adjacent
to the Unicorn. The Il Segreto sister restaurant also remains
open, the Irish Times notes.
The Irish Times, citing a statement of affairs document
distributed at the meeting, discloses that Springmanor creditors
include AIB, which is owed EUR892,348 in relation to mortgages
registered against the property on Merrion Row. The company also
owes the Revenue Commissioners EUR74,384. Unsecured creditors are
owed EUR1.2 million.
According to The Irish Times, notice of a petition for the winding
up of the company by the Revenue Commissioners was posted late
last year but it was later reported the company had agreed a plan
for the payment of a EUR120,000 debt. Springmanor is listed to be
struck off by the Companies Registration Office, the report notes.
In 2009, ownership of Springmanor was transferred by Mr. Casari
and Mr. Stokes to Citywest Hire Ltd, which is in turn owned by the
two men, the Irish Times adds.
=========
I T A L Y
=========
BANCA UBAE: Fitch Puts 'BB+' Long-Term IDR on Negative Watch
------------------------------------------------------------
Fitch Ratings has placed Italy-based Banca UBAE's Long-term Issuer
Default Rating of 'BB+' and Individual Rating of 'C/D' on Rating
Watch Negative. UBAE's Support Rating has been downgraded to '5'
from '3' and its Short-term IDR has been affirmed at 'B'.
The RWN on UBAE's Long-term IDR and Individual Rating reflect the
heightened instability and uncertainty in Libya, where UBAE's main
shareholder, the Libyan Foreign Bank is based, and the more
difficult operating environment in a number of other countries to
which UBAE has credit exposure, mainly through its trade finance
business. The RWN also reflects Fitch's view that the impact on
UBAE of sanctions against Libya remains uncertain.
The downgrade of UBAE's Support Rating follows Fitch's rating
action on Libya. While Fitch believes that the Libyan authorities
continue to be committed to UBAE, there would be practical
difficulties in providing timely support, considering the
conditions in Libya and international sanctions, and therefore
support cannot be relied on.
LFB, a wholly-owned subsidiary of the Libyan Central Bank, holds a
67.55% stake in UBAE. UBAE's Long-term IDR is not based on
support from Libya, but Fitch believes that UBAE's profitability
is likely to suffer if business volumes are negatively affected by
prolonged turmoil in Libya and potential contagion to other
countries in the Middle East and North Africa region.
UBAE's ratings already factor in credit exposure to more volatile
markets, and its ratings could be affirmed if the bank
successfully manages the current upheaval in Libya and volatility
in several other Mediterranean Arab markets. UBAE's ratings are
underpinned by Fitch's view that the bank's liquidity benefits
from a high proportion of liquid assets, comprising the investment
of deposits, predominantly from banks, government and quasi-
government entities that make up UBAE's customer base in the MENA
region.
Fitch notes that the bank's Long-term IDR would likely be
downgraded if reduced business volumes resulted in weaker
profitability, the heightened volatility in some of the markets
the bank is exposed to lead to material credit losses, or the bank
did not maintain its adequate liquidity profile.
ITALFINANCE SECURITIZATION: Fitch Affirms CCC Rating on 1-D Notes
-----------------------------------------------------------------
Fitch Ratings has affirmed Italfinance Securitization Vehicle 2
S.r.l Series 2007-1's notes:
-- EUR 471,917,941 Series 1-A: affirmed at 'AAsf'; Outlook
Stable
-- EUR 92,930,425 Series 1-B: affirmed at 'BBBsf'; Outlook
Stable
-- EUR62,674,284 Series 1-C: affirmed at 'Bsf'; Outlook
Negative
-- EUR20,759,036 Series 1-D: affirmed at 'CCCsf'; assigned
Recovery Rating of 'RR1'
Italfinance is a securitization of performing receivables arising
from finance lease contracts originated and serviced by Banca
Italease S.p.A. (Italease, rated 'BBB+'/Negative/'F2') and by
Mercantile Leasing S.p.A. (100% owned by Italease).
The affirmation reflects the stable performance of the transaction
following the downgrade that took place on Dec. 21, 2009. Since
then, the transaction has been performing in line with Fitch's
revised assumptions for gross and net defaults. As of
January 2011, the cumulative gross default ratio stood at 6.85%,
and the cumulative net default ratio was 2.49%.
Since the closing date, all gross defaults (defaulted lease
contracts) have been provisioned into the transaction structure.
From October 2008, the originator has bought back a total amount
of EUR83 million of defaulted receivables. The resulting proceeds
to the issuer have been made part of the quarterly available funds
under recoveries. Italease's commitment to support the
transaction through repurchase of defaulted receivables and/or
cash injection was formalized on 7 September 2010 when a 364-day
renewable liquidity facility (maximum drawdown amount equal to
EUR70 million), was made available by Italease to the issuer.
This support has allowed the structure to cover all its principal
deficiency ledger shortfalls so far.
The affirmation reflects Fitch's analysis, which has taken into
account future scenarios where the support from Italease is no
longer available. The agency has formed a view on the deal's
portfolio recovery performance without considering the recoveries
stemming from Italease's repurchases. The Negative Outlook on the
Series 1-C notes reflects the exposure of this junior class to
portfolio performance deterioration in some scenarios run by Fitch
for the purpose of monitoring the transaction's ratings.
The credit enhancement levels as a percentage of the rated notes
have been increasing from July 2008, (the start of the
amortization period) due to the amortization of the rated notes.
The rated notes began amortizing pro rata in July 2010 and are
expected to continue to do so for as long as the originator
continues to repurchase defaulted receivable and, by doing so,
allows the issuer to meet the pro-rata amortization conditions.
=====================
N E T H E R L A N D S
=====================
PALLAS CDO: S&P Affirms 'BB-' Ratings on Two Classes of Notes
-------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its credit ratings on
Pallas CDO II B.V.'s class A-1-a, A-1-d, A-2, B, C, D-1-a, and D-
1-b notes. At the same time, S&P removed from CreditWatch
negative the ratings on the class A-1-a and A-1-d notes.
Ratings Detail
Notional
as of Current CS
Rtg Rtg Feb 2010 notional as of Current
Class to from (mil.EUR) (mil.EUR) Feb. 2010 (%) CS (%)
----- --- ---- --------- --------- ------------- -------
A-1-a AA(sf) AA(sf)/CWN 59.6 59.0 26.9 27.1
A-1-d AA(sf) AA(sf)/CWN 260.4 257.7 26.9 27.1
A-2 A+(sf) A+(sf) 44.5 44.5 16.7 16.9
B A-(sf) A-(sf) 16.0 16.0 13.1 13.2
C BB+(sf) BB+(sf) 10.9 10.9 10.6 10.7
D-1-a BB-(sf) BB-(sf) 2.6 2.6 7.1 7.1
D-1-b BB-(sf) BB-(sf) 12.7 13.1 7.1 7.1
Sub. NR NR 19.5 19.5 N/A N/A
NR -- Not rated.
N/A -- Not applicable.
CS -- Credit support = (performing balance + cash balance +
recovery on defaulted obligations -- tranche balance
(including tranche balance of all senior
tranches))/(performing balance + cash balance + recovery on
defaulted obligations).
CWN -- CreditWatch negative.
Note: For both S&P's February 2010 and the rating actions, the
figures above represent the most recently available data at
that time, and which S&P used in its analysis.
Since S&P's rating actions on Feb. 24, 2010, S&P has observed an
increase in the available credit enhancement for the most senior
classes of notes. S&P note that, since that date, the class A-1
notes have amortized by about EUR3.2 million, to EUR316.7 million.
S&P has also noted an increase in the weighted-average spread
generated by the performing assets, as well as an increase in
weighted-average recovery due to the purchase of senior tranches
of structured finance deals that S&P originally rated 'AAA'.
Key Model Assumptions
As of
Feb. 2010 Current
--------- -------
Collateral balance (mil. EUR) 437.77 434.68
WAS (basis points) 1.43 1.54
AAA WARR (%) 27.6 42.7
AA WARR (%) 31.8 46.9
A WARR (%) 36.3 51.8
BBB WARR (%) 42.8 56.4
BB WARR (%) 48.6 60.3
B WARR (%) 55.0 64.5
Class A par value ratio 103.81 108.86
Class A/B par value ratio 100.48 104.25
Class C par value ratio 97.78 101.42
Class D par value ratio 94.27 97.77
WAS--Weighted-average spread.
WARR -- Weighted-average recovery rate.
Note: For both S&P's February 2010 and the rating actions, the
figures above represent the most recently available data at
that time, and which S&P used in its analysis.
Key Model Results
Class Rating SDR BDR
----- ------ --- ---
A-1-a AA 25.80 35.38
A-1-d AA 25.80 35.38
A-2 A+ 23.26 28.65
B A- 21.00 27.26
C BB+ 15.01 20.31
D-1-a BB- 12.37 18.07
D-1-b BB- 12.37 18.07
Notes:
SDR -- Scenario default rate as calculated using CDO Evaluator 4.1
and CDO Evaluator 5.1.
BDR -- Break-even default rate.
The transaction documents include an event of default
overcollateralization test. Using the combined class A1 and A2
notes' balance, an event of default will be triggered if the
overcollateralization ratio falls below 100%. S&P estimates the
current class A overcollateralization ratio to be about 108.86%,
compared with 103.81% in February 2010 and 113.05% at closing.
If such an event of default occurs, in S&P's opinion the notes
could be exposed to the risk of nonpayment of principal or
interest. Despite improvements that S&P has observed in the
transaction, S&P considers the presence of the event of default
test to be sufficient grounds for caution when reviewing the
transaction. S&P will continue to monitor the level of the class
A par value ratio, as well as the class A-1 noteholders'
directions to the trustee with regard to the Pallas CDO II notes.
S&P's most recent rating action on Pallas CDO II took place on
Jan. 18, 2011, when S&P placed on CreditWatch negative its ratings
on the class A-1-a and A-1-d notes in connection with its revised
counterparty criteria.
JPMorgan Chase Bank N.A. (AA-/Stable/A-1+) currently acts as
account bank and custodian. Credit Suisse International
(A+/Stable/A-1) and Morgan Stanley Capital Services Inc. (not
rated) currently provide hedging on an aggregate EUR9.5 million of
noneuro assets. S&P considers that the exposure to Morgan
Stanley Capital Services is sufficiently limited that the
counterparty's failure to perform would not materially affect
S&P's analysis. In S&P's view, the other parties are adequately
rated to support the current ratings on the Pallas CDO II notes.
S&P will continue to monitor the notes' exposure to these parties,
and the adequacy of their ratings. Therefore, S&P has removed
from CreditWatch negative the ratings on classes A-1-a and A-1-d,
and affirmed its ratings on the class A to D notes in the
transaction.
None of these ratings was affected by either the largest obligor
default test or the largest industry default test, two
supplemental stress tests S&P introduced as part of its criteria
update.
Pallas CDO II is a European cash flow collateralized debt
obligation of structured finance securities (including residential
and commercial mortgage-backed securities and collateralized loan
obligations) transaction that closed in October 2006. The
transaction is managed by M&G Investment Management Ltd. S&P
estimates that 19% of the portfolio is currently exposed to
corporate credit risk through tranches of CDOs, which S&P has
assessed using S&P's updated criteria for corporate CDOs.
Ratings List
Pallas CDO II B.V.
EUR498.6 Million Senior Secured Fixed- And Floating-Rate Notes
Ratings Affirmed and Removed From CreditWatch Negative
Rating
------
Class To From
----- -- ----
A-1-a AA (sf) AA (sf)/Watch Neg
A-1-d AA (sf) AA (sf)/Watch Neg
Ratings Affirmed
Class Rating
----- ------
A-2 A+ (sf)
B A- (sf)
C BB+ (sf)
D-1-a BB- (sf)
D-1-b BB- (sf)
=============
R O M A N I A
=============
DTH TELEVISION: Competition Council Reviews Romtelecom Takeover
----------------------------------------------------------------
HotNews.ro reports that the Competition Council is currently
reviewing Romanian telecom operator Romtelecom take-over bid for
the subscriber base and other assets of DTH Television Grup, the
owner of digital television Boom TV.
Adrian Lotrean, a partner at the Transylvania Insolvency House
which is the judicial administrator of DTH, told HotNews.ro on
Monday that Romtelecom had signed last week the contract to
acquire the commercial fund of the insolvency-hit operator, for
which it offered EUR8 million.
DTH Television Group is a Romanian telecom company that operates
Boom TV. The company entered insolvency in May last year, when
UniCredit Tiriac Bank, Grecos Energy Telecomunicatii and Eurocom
Networks & Technologies have asked for its insolvency. The
company had a EUR18.5 million debt with UniCredit Tiriac Bank.
=========
S P A I N
=========
BANCAJA 11: S&P Downgrades Rating on Class D Notes to 'B(sf)'
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on Bancaja 11 Fondo de
Titulizacion de Activos' class A2, A3, B, C, and D notes. S&P
also affirmed its 'D (sf)' rating on the class E notes.
S&P has observed continuing deterioration in the credit quality of
the underlying portfolio backing Bancaja 11. The number of loans
in arrears for 90+ days, but not yet considered as defaulted
(defined as 18 months in arrears in this transaction), has
stabilized in the past six months; however, the level of defaulted
loans has increased, to 2.44% on a cumulative basis, over the
original portfolio balance securitized at closing. Although this
level of defaults did not breach the interest-deferral trigger for
the class D notes--set as 5.62%-- S&P see this increased as an
indication of weakening performance of the outstanding notes in
this transaction.
As of the latest investor report of January 2011, defaulted loans
represented 2.44% of the original pool balance, compared with
1.38% a year ago.
The transaction features interest-deferral triggers, based on
cumulative defaults. Interest on the notes is deferred if loans
in default are more than 10.9% of the initial balance of the
mortgages for class B, 7.4% for class C, and 5.62% for class D.
Given that the current level of cumulative defaults over the
original balance is 2.44%, S&P considers that interest on junior
classes of notes will not be postponed in the near future.
The reserve fund has been fully drawn since the April 2010
interest payment date and has not been replenished since that
date. S&P believes this may soon adversely affect the
transaction. Also, credit enhancement for the notes has decreased
following the downgrade of the class E notes to 'D (sf)' in
July 2009, which negatively affects the capital structure.
On July 6, 2010, S&P placed the class A2 and A3 notes on
CreditWatch negative due to portfolio deterioration, and on Jan.
18, 2011, S&P kept these ratings on CreditWatch negative due to
its updated counterparty criteria becoming effective. Classes A2
and A3 are no longer on CreditWatch negative due to counterparty
reasons, as S&P's review of the transaction documents--except for
the swap documentation--indicates that they are in line with
updated criteria. Although the swap documentation does not comply
with S&P's updated counterparty criteria, the rating floor
mentioned in the criteria of ICR (issuer credit rating) plus one
notch for the swap provider (AA/Stable/A-1+) does support the
current ratings on the notes. This in turn means that any adverse
rating action relating to the swap provider may in the future
result in a lowering of the ratings on the class A2 and A3 notes
notwithstanding any structural mitigants in this transaction.
The Bancaja deals are Spanish residential mortgage-backed
securities transactions backed by pools of first-ranking mortgages
secured over owner-occupied residential properties in Spain.
Bancaja (Caja de Ahorros de Valencia, Castellon y Alicante)
originated the mortgage loans.
Ratings List
Bancaja 11, Fondo de Titulizacion de Activos
EUR2.023 Billion Mortgage-Backed Floating-Rate Notes
Ratings Lowered and Removed From Creditwatch Negative
Rating
------
Class To From
----- -- ----
A2 AA (sf) AAA (sf)/Watch Neg
A3 AA (sf) AAA (sf)/Watch Neg
B BBB (sf) A (sf)/Watch Neg
C BB- (sf) BBB- (sf)/Watch Neg
D B (sf) BB- (sf)/Watch Neg
Rating Affirmed
Class Rating
----- ------
E D (sf)
CAJA SAN: S&P Downgrades Rating on Class B Notes to 'D'
-------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'D (sf)' from 'CC
(sf)' its credit rating on the class B notes in Caja San Fernando
CDO I Fondo de Titulizacion de Activos' US$171 million fixed- and
floating-rate notes series US$. This downgrade doesn't affect the
ratings on the other outstanding classes of notes in this series.
The rating action follows S&P's observation that the issuer, in
accordance with the transaction's priorities of payments, deferred
interest on the series US$'s class B notes in August 2009. The
trustee has confirmed that interest was last paid on the notes on
the February 2009 payment date.
As noted in S&P's new issue report on Caja San Fernando CDO I, its
rating on the class B notes addresses timely payment of interest
and ultimate repayment of principal. S&P has therefore lowered
the rating to 'D (sf)'. While Caja San Fernando CDO I has also
been deferring interest on the class C and D notes, S&P's ratings
on these classes address ultimate payment of interest, and thus
are unaffected by the rating action.
S&P lowered its rating on the class B notes to 'CC (sf)' in June
2009, based on the credit deterioration S&P had observed in the
underlying portfolio. Following the publication of the August
2009 payment date report, S&P should have lowered the rating on
the class B notes to 'D (sf)'. Due to administrative errors, S&P
didn't lower the rating at that time and S&P subsequently
incorrectly affirmed the rating at 'CC (sf)' in October 2010.
Caja San Fernando CDO I's series US$ transaction is a static cash
flow collateralized debt obligation securitizing the cash flows
from a pool of dollar-denominated CDO securities. The transaction
closed in February 2005.
=============
U K R A I N E
=============
FORUM BANK: Moody's Gives Negative Outlook; Affirms 'E+' Rating
---------------------------------------------------------------
Moody's Investors Service has changed the outlook on the Ba1 long-
term global scale local currency deposit rating of Forum Bank to
negative from stable. At the same time FB's bank financial
strength rating of E+ (stable outlook), long-term global scale
foreign currency deposit rating of B3 (stable outlook), its Not
Prime short-term global scale local and foreign currency deposit
ratings and National Scale Rating of Aa1.ua remained unchanged.
Ratings Rationale
This rating action was triggered by Moody's recent rating action
for FB's parent Commerzbank (rated A2/Prime-1/C-), whereby the
rating agency lowered Commerzbank's baseline credit assessment to
Baa2 from Baa1, while maintaining a negative outlook on
Commerzbank's BFSR. Consequently, a negative outlook on
Commerzbank's BFSR of C-, which now maps into a BCA of Baa2,
translates into a negative outlook on FB's local currency deposit
ratings.
Moody's further said that it continues to maintain an assumption
of high probability of parental support from Commerzbank to its
Ukrainian subsidiary in case of need given the history of
liquidity and capital support from the parent, which results in a
three-notch uplift of FB's long-term deposit ratings of Ba1 from
the bank's BCA of B1, in accordance with Moody's Joint-Default
Analysis Methodology.
Moody's previous rating action on FB was on Oct. 12, 2010, when
the outlook on the B3 foreign currency deposit rating was changed
to stable from negative following a sovereign rating action.
Headquartered in Kiev, Ukraine, FB reported -- as at year-end 2010
-- total unaudited assets of UAH14 billion (US$1.8 billion)
according to Ukrainian Accounting Standards.
===========================
U N I T E D K I N G D O M
===========================
AERO INDUSTRY: AADB to Investigate Firm's Collapse
--------------------------------------------------
CA Mag Online reports that the Accountancy and Actuarial
Discipline Board (AADB) of the Financial Reporting Council (FRC)
has launched an investigation into the collapse of Aero Industry.
The report relates that the board will look specifically at the
conduct of members of the Institute of Chartered Accountants in
England and Wales (ICAEW) and of Deloitte LLP, the company's
auditors, prior to the firm's being placed into administration in
Nov. 2009.
CA Mag Online notes that in a statement, the AADB confirmed it
would investigate: "the conduct of Members and Member Firms in
relation to the preparation, approval and audit of the financial
statements of Aero Inventory plc and its subsidiary Aero Inventory
(UK) Limited for the years ended June 30, 2007 and June 30, 2008
and the preparation, approval and review of the interim financial
statements of Aero Inventory plc for the six months ended Dec. 31,
2008." The report recounts that shares in Aero were suspended
from the main market in Oct. 2009, after problems emerged in its
accounts for 2008 and 2009. Deloitte refused to sign off on the
2009 accounts, CA Mag Online says
The report notes that Aero's collapse and its aftermath have been
fraught with complications. The report relates that
administrators from KPMG almost immediately ran into difficulties
preparing its assets for sale, as they were unable to build an
accurate picture of the company's stock and inventory levels. The
task was complicated by Aero's business model, which involved
buying the aircraft component divisions of various airlines, then
gradually selling the inventory back to them, CA Mag Online
relates.
The auditors' initial report also stated the company also
reportedly owed almost GBP19MM in unpaid taxes, according to CA
Mag Online. In Nov. 2010, KPMG applied to the court to have the
administration period extended by two years, the report notes.
Then, in late Feb. 2010, the Serious Fraud Office launched its own
investigation, after reportedly receiving allegations of
wrongdoing at Aero, CA Mag Online adds.
Aero Industry is an aircraft components group.
AERO INVENTORY: Set to Be Sold by Administrators This Year
----------------------------------------------------------
Alan Purkiss at Bloomberg News reports that Jim Tucker, Aero
Inventory Plc's lead administrator, as cited by the Financial
Times, said the company will be offered for sale by KPMG.
According to Bloomberg, the newspaper said senior lenders, which
include Lloyds Banking Group Plc, are owed about US$500 million,
won't be paid in full.
As reported by the Troubled Company Reporter-Europe on Nov. 18,
2009, The Financial Times said Aero called in administrators KPMG
after the sharp downturn in the aviation industry hit its cash
flow and existing financial backers, spooked by delayed results,
improperly valued stock and the suspension of its shares, refused
to provide emergency funding. The FT disclosed company had net
debt of US$466.2 million (GBP280 million) at the half-year and was
extremely cash intensive.
Aero Inventory plc -- http://www.aero-inventory.com/-- is a
holding company to its subsidiary undertakings. Aero Inventory
(UK) Limited is primarily engaged in procurement and inventory
management for the aerospace industry. Aero Inventory (Hong Kong)
Limited, Aero Inventory (Switzerland) AG, Aero Inventory
(Australia) Pty Limited, Aero Inventory (Canada) Inc., Aero
Inventory (Bahrain) SPC and Aero Inventory Japan KK provide
customer support in relation to the activities of Aero Inventory
(UK) Limited. Aero Inventory (USA) Inc. provides services to Aero
Inventory (UK) Limited in relation to the procurement and
purchasing of aircraft parts, logistics and the sale of parts to
non-contract customers in the United States. The Company
principally operates in the United Kingdom, rest of Europe and
Middle East, America and Asia Pacific.
AUTO WINDSCREENS: Trifords Acquires Firm, Saves 250 Jobs
--------------------------------------------------------
ShareCast reports that Trifords, part of the Markerstudy Group,
has acquired Auto Windscreen and saved 250 jobs in the process.
The report relates that a new business operating under the same
brand name has been created as part of the acquisition.
As reported in the Troubled Company Reporter-Europe on Feb. 28,
2011, BBC News said more than 1,000 Auto Windscreens workers in
Derbyshire and the West Midlands are to lose their jobs.
Guardian.co.uk related that Auto Windscreens has gone into
administration with majority of the company's staff were told to
stop working after administrators from Deloitte were appointed.
The company will be talking to major customers in an effort to
find funds to continue trading and will be looking for a buyer,
according to guardian.co.uk
Chesterfield-based Auto Windscreens works for major motor
insurers, fleet businesses and private companies. It has 68
fitting centres across the UK, 550 mobile units, a distribution
centre in Aston, Birmingham, and a call centre.
BIRMINGHAM CITY: Yeung Pledges Properties to Help Raise Funds
-------------------------------------------------------------
Tariq Panja and Hwee Ann Tan at Bloomberg News report that
Birmingham City's major shareholder, Hong Kong-based Carson Yeung,
has pledged his private properties to lenders in a bid to raise
funds for the Premier League club.
According to Bloomberg, Birmingham's parent company Birmingham
International Holdings Ltd. said in a statement on Thursday that
the club has liabilities that exceed its assets by about HK$348
million (US$45 million).
Bloomberg relates that the statement said Mr. Yeung is applying
for a HK$150 million loan and has pledged in writing that all of
the money will be used to "provide sufficient financial resources"
to allow the business to meet its liabilities and carry on
"without significant curtailment of its operation."
Bloomberg says the holding company also is trying to raise a
further HK$310 million to increase working capital for the team by
selling shares and taking a loan from unidentified institutions.
The company, as cited by Bloomberg, said it was taking the action
because "this situation indicates the existence of a material
uncertainty that may cast significant doubt on the group's ability
to continue as a going concern."
The club's freehold land and buildings, which include St. Andrew's
stadium, have been pledged to HSBC Holdings Plc, which has
provided loans and working capital worth HK$77 million, Bloomberg
discloses.
Birmingham City Football Club is a professional association
football club based in the city of Birmingham, England.
BRISTOL CARS: Goes Into Administration, Taps RSM Tenon
------------------------------------------------------
BBC News reports it has been confirmed that Bristol Cars has gone
into administration.
Tom MacLennan and Trevor Binyon from RSM Tenon were appointed as
joint administrators for the company on March 3, 2011, according
to BBC News.
"While there have been a number of immediate redundancies due to
the financial position of the company, we are maintaining the
sales and service operations so customers will continue to be
supported. We would urge any interested parties to make contact
with us as quickly as possible and are confident that we can
secure the future of this iconic British brand," BBC News quotes
Mr. MacLennan as saying.
Bristol Cars began life as an airplane maker -- the Bristol
Aeroplane Company -- but after the Second World War moved into the
luxury, hand-built car market.
CREST NICHOLSON: Prepares to Implement Second Restructuring
-----------------------------------------------------------
Ed Hammond and Anousha Sakoui at The Financial Times report that
Crest Nicholson has told lenders it is preparing to be taken over
by US fund Varde in a move that would halve the housebuilder's
debts and pave the way for a possible return to the stock market.
According to the FT, Crest, which has endured one debt-for-equity
swap during the recession, wrote to lenders last week to say it
had instructed lawyers to initiate plans for a second
restructuring.
The move comes after Varde, which has amassed 72% of Crest's
GBP500 million debt during the past six months, told the
housebuilder that it had received support from enough other
lenders to get above the 75% threshold needed to implement a
restructuring through a scheme of arrangement.
The overhaul of Crest's capital structure would position the
company for a possible return to the stock market and could also
attract interest from trade buyers, the FT states.
The FT relates that one person familiar with the plans said the
terms of a debt-for-equity swap, not yet agreed or finalized, are
expected to cut the senior lenders' debt claims by at least half.
The restructuring would reduce the debts to no more than GBP150
million -- representing a severe "haircut" for the lenders, which
financed the original buy-out with GBP1.1 billion of loans, the FT
says. The next steps are for Varde to agree terms with lenders
and implement the restructuring, the FT discloses.
The FT notes one person familiar with the discussions said the
deal would be "done and dusted in the next three months."
Crest Nicholson -- http://www.crestnicholson.com/-- is a
residential development company with property interests primarily
in central and southern England. The firm focuses on developing
sustainable master-planned communities and mixed-use developments,
along with urban regeneration and commercial property
developments.
EARTH ENERGY: Goes Into Administration on Fall of Public Spending
-----------------------------------------------------------------
BBC News reports that Earth Energy said it has gone into
administration due to a number of factors including a fall in
public spending after the government's Spending Review. The
report relates that administrators said they are very hopeful of
selling the firm.
The firm said most of its business was in the public sector, but
that "pretty well dried up" following the Spending Review in Oct.
2010, according to BBC news.
"Most of our business was related to the public sector and it
pretty well dried up following the Comprehensive Spending Review
in October," BBC News quotes Managing Director Brian Kennelly as
saying. The report relates that Mr. Kennelly also blamed
uncertainty over payments to people installing renewable heat
systems, including the feed-in tariffs (FITs) scheme and the
proposed renewable heat incentive (RHI).
Earth Energy is a Falmouth firm that heats homes and offices with
energy absorbed from the ground. It was founded in 1996 and
employs 24 people.
GAS TURBINE: Enters Into Restructuring Deal with Loan Note Holders
------------------------------------------------------------------
The Board of Gas Turbine Efficiency PLC on March 1 disclosed that
it has entered into the Restructuring Agreement with its principal
Loan Note Holders, which provides conditional upon, amongst other
things, the approval by shareholders of the Resolutions, for the
cancellation of the Loan Notes in consideration for the issue of
Preference Shares.
On Feb. 15, 2011, the Company announced that it had reached a non-
binding agreement with its principal Loan Note Holders on the
restructuring of its outstanding loan notes by converting them
into equity. The Company also announced that a resolution would
be put to Ordinary Shareholders to approve (if considered
appropriate) the cancellation of the admission and trading of the
Ordinary Shares to AIM and re-registration of GTE from a public
limited company to a private limited company.
Highlights
* Cancellation of Loan Notes of approximately US$18,500,000 of
principal and accrued but unpaid interest and the issue of up to
18,500,000 Preference Shares of US$1.00 each in the capital of the
Company
* Restructuring to create a strengthened balance sheet, which
the Board believes will enable the Company to continue to explore
strategic options including a sale of the Group while continuing
to develop its business and operation
* Preference Shares to initially have a liquidation preference
of US$1.61 (within the first 6 months) payable in priority to any
other class of share in the Company on certain exit events
* Preference Shares to be convertible into Ordinary Shares at
any time applying a conversion price US$0.0966 (which shall reduce
every 6 months by US$0.00805 subject to a floor price of the US$
equivalent GBP0.002 at the time of conversion being the nominal
value of the Ordinary Shares)
* Holders of Preference Shares to be able to vote each
Preference Share on an as converted basis
A circular was posted setting out, amongst other things,
The reasons for the Restructuring and the reasons why the
Directors consider this to be in the best interests of the
Company, and its stakeholders as a whole, and why they are
unanimously recommending that shareholders vote in favor of the
resolutions to be proposed at the General Meeting are set out in
circular.
Included with the circular is the Notice of General Meeting to
held on March 18 2011 at 11:00 am at the offices of Bird & Bird
LLP, at 15 Fetter Lane, in London EC4A 1JP.
Gas Turbine Efficiency plc (GTE) designs, manufactures and
supplies cleantech energy saving and performance solutions to the
power generation, and oil and gas industries. It develops and
manufactures all products in Jarfalla, Sweden, New York, Florida,
and South Carolina and United States of America. The Company's
wholly owned subsidiaries include: Gas Turbine Efficiency AB,
which is engaged in Development centre, assembly, manufacturing,
sales, Group management; Gas Turbine Efficiency Sweden AB -- ABU
DHABI, which is engaged in Onshore and Offshore Gas Installations
and Fields Services -- natural gas and oil well equipment and
maintenance; Gas Turbine Efficiency Russia LLC, and Gas Turbine
Efficiency Norway AS. On Jan. 19, 2011, the Company sold its
aviation business to Pratt & Whitney.
HIGHWOOD BREWERY: Set to go Into Liquidation; 50 Jobs at Risk
-------------------------------------------------------------
David Haber at thisisscunthorpe.co.uk reports that The Highwood
Brewery is set to go into liquidation, putting around 50 jobs at
risk. The move comes after the directors called in CRG, the
Grimsby firm of insolvency experts, to advise them.
According to the report, CRG spokesman Charles Gorwood said he
would be recommending the company appointed a liquidator at a
meeting of the creditors at the Humber Royal Hotel, Grimsby, on
March 11.
"A decision has been made to cease to trade, due to difficulties
being encountered with the wholesaling business," the report
quotes Tom Wood, the brewery's managing director, as saying.
"The business has more than 700 customers and supplies to them,
except for limited supplies of the Tom Wood's beer which have
ceased."
"The company also operates two public houses and arrangements to
return these to the landlords are being made," Mr. Wood said.
"The future of the brewing business will be decided after the
company enters liquidation on March 11. A liquidator will be
appointed to arrange a sale of the business assets, which will
include the brewery."
The Highwood Brewery is North Lincolnshire's biggest brewing
business. The business was set up by Tom Wood in 1995 on the
family-owned farm.
JJB SPORTS: Unveils Details of CVA Proposals
--------------------------------------------
JJB Sports plc unveiled details of its CVA proposals and proposed
cancellation of its listing on the Official List and admission to
trading on AIM.
Highlights
* The directors of the Company and its wholly owned
subsidiary, Blane Leisure Limited, have finalized the terms of
company voluntary arrangements to restore the viability of the
Group's business model and to assist in a return to profitability.
The CVA Proposal will enable the Group to carry out a fundamental
restructuring of its property portfolio that the Board believes
must be carried out as part of implementing the Group's revised
business plan. The Board believes that the CVA Proposal
demonstrably gives landlords of compromised stores a far greater
estimated return than is likely if JJB and Blane are placed in
administration.
* The CVA Proposal will enable the closure of 43 stores (of
which 2 are not currently trading) on or before 24 April 2012.
The CVA Proposal will also allow the Group to review the
performance of a further 46 stores and will enable closure of them
on or before 24 April 2013 if the performance cannot be improved.
In addition, the amount payable on the leases attached to those
properties shall be 50% of the contractual pro rata monthly rent
prior to closure plus an amount equal to 5% of the contractual pro
rata monthly rent by way of a contribution in respect of
dilapidations (such amounts to be paid on a monthly rather than a
quarterly basis) plus the contractual amount payable in respect of
turnover rent, insurance and service charge.
* The terms of the CVA Proposal provide for an additional
payment of between GBP2.5 million and GBP7.5 million (to be
settled in cash or ordinary shares in the Company at the option of
the Company) to compromised landlords that is linked to the market
performance of JJB and is payable on April 24, 2013 (or earlier in
the event of a takeover offer or certain other specified
events).
* The terms of the CVA provide that all stores within the
portfolio will move to monthly rent payments for the next two
years.
* The detailed terms of the CVA Proposal, including details of
the creditor and shareholder meetings, are contained in the
document that is intended to be posted to all unsecured creditors
and shareholders of both the Company and Blane later today.
* Subject to shareholder approval, the Company intends
transfer listing of the Company's ordinary shares from the premium
segment of the Official List and trading on the London Stock
Exchange's main market for listed securities to AIM.
* Further information in relation to the transfer to AIM and
shareholder approval of the CVA Proposal (for the purposes of Rule
21 of the City Code on Takeovers and Mergers), including details
of the general meeting, is contained in the shareholder circular.
Commenting on the CVA Proposal and the proposed transfer to AIM,
Mike McTighe, JJB Chairman said: "JJB's restructuring plan is on
track. We completed the first capital raising to provide short
term finance for the group and delivered our revised business plan
to BoS. [Wednes]day we are laying out the full terms of our CVA
proposals and preparing the way for creditor and
shareholder meetings later this month.
"In formulating these CVA proposals we have talked to our
landlords and listened to their views. As a result, we are
offering them a possible share in the value of a restructured JJB
of up to GBP7.5 million, payable in two years' time.
"Before the shareholder and creditor meetings, we intend to
release details of the anticipated funding requirements of a
restructured JJB and our new business plan, together with the key
terms of our second capital raising that will deliver the longer
term financing required to enable the Group to move forwards on a
far sounder footing. There remains much to be done, but we have
achieved some significant success in recent weeks, and are hugely
grateful to all our key stakeholders who have shown us so much
support. With their continued backing we remain confident about
the future of this business."
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.
MORPHEUS PLC: S&P Downgrades Rating on E Loan to 'D (sf)'
---------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
Morpheus (European Loan Conduit No. 19) PLC's class D and E
subordinate loans.
On the February 2011 interest payment date, the class E
subordinate loan received no interest and the class D subordinate
loan experienced an interest shortfall.
These shortfalls are primarily due to the paydown in the
transaction. The deal has paid down by approximately 87% and the
weighted-average margin on the remaining loans is now not
sufficient to cover issuer expenses and the margin on the notes.
S&P has lowered its rating on the class E subordinate loan. Due
to prepayments in the past, S&P does not expect this class to be
able to pay full interest in the future. S&P's ratings address
timely payment of interest as well as payment of principal by
legal final maturity, and consequently S&P has lowered the rating
on the class E subordinate loan to 'D (sf)' from 'B (sf)'.
With regard to the class D subordinate loan, there is the
potential for full interest to be paid on the next IPD. This
class showed an interest shortfall of GBP13,471 on the
February 2011 interest payment date. However, issuer "other fees"
totaled GBP42,947 this past quarter, which included GBP34,722 in
annual fees. If no other loans accrue other fees next quarter,
S&P considers that on the next IPD, interest is likely to be paid
in full on the class D subordinate loan. However, S&P believes
this class remains vulnerable to interest shortfalls if high fees
are incurred in any future quarters. For this reason, S&P has
lowered the rating on the class D subordinate loan to 'BB (sf)'
from 'BBB
(sf)'.
Ratings List
Morpheus (European Loan Conduit No. 19) PLC
GBP536.79 Million Mortgage-Backed Floating-Rate Notes and GBP45.09
Million Subordinated Loans
Ratings Lowered
Rating
------
Class To From
----- -- ----
D Loan BB (sf) BBB (sf)
E Loan D (sf) B (sf)
NEWLAND PAINT: Crown Paints Acquires Firm Out of Administration
---------------------------------------------------------------
Julie Hayes at The Press reports that the business and assets of
York-based Newland Paint Supplies, which went into administration
in January, have been sold to Crown Paints.
The report relates that the jobs of its 17 employees and the
business' five outlets in York, Harrogate, Hull, Bridlington and
Scunthorpe, as well as its online business, have all been
transferred to Crown Paints in the deal.
Joint administrators Andy Clay and David Horner of Begbies Traynor
were advised by Martin Frost at Denison Till in York in the
negotiations that see all five of Newland Paint Supplies' outlets
remaining open and continuing to trade under the Newland name,
according to The Press
Crown Paints is headquartered in York.
PUNCH TAVERNS: Fitch Downgrades Rating on Class C1 Notes to 'BB-'
-----------------------------------------------------------------
Fitch Ratings has downgraded all Punch Taverns Finance B Limited's
notes and maintained them on Rating Watch Negative. Punch B is a
whole business securitization of 2,143 leased and tenanted pubs
across the UK owned by Punch Taverns Plc.
The downgrades mainly reflect the transaction's continued decline
in performance with the estimated trailing 12-month December 2010
EBITDA per pub (excluding Plc's financial support) falling by a
steep 9.4%. As anticipated, this fall in EBITDA is mainly due to
the disposal of pubs (the annual weighted average number of pubs
is down by c.14%), but also to a further decline in rental and
machine income per pub, reduced beer gross margins and strong
increases in operating costs (due to a rise in both utilities and
costs in maintaining closed pubs). These results were partly
offset by the moderate increase in beer sales and strong increase
in other sales per pub (wines, cider and soft drinks).
Fitch is concerned that without further financial support from
Plc, which amounted to c.23.4% of TTM December 2010 EBITDA, TTM
December 2011 EBITDA, on a pro-forma basis, could decline further
and reach c.GBP101 million, with EBITDA per pub at c.GBP47k per
annum. As a result, Fitch expects that without this support, free
cash flow debt service coverage ratio could hover around 1.1x and
breach its covenant as early as Q3 in FY11. This could have
happened in Q3 FY10 if Plc had not provided any support.
Given the uneven debt profile due to the various prepayments
(GBP185.5 million and GBP17.3 million of class A8 and A7 notes
prepaid, respectively), the agency is increasingly focused on
actual FCF DSCR projections as opposed to annuity-based ones. On
a 10-year horizon and without further support, Fitch's projected
actual FCF DSCRs are expected, on average, to gravitate around
1.4x, 1.2x and 1.1x for the class A, B and C notes, respectively,
which indicates the vulnerability of the notes, notably the most
junior ones, hence their downgrade to non-investment grade
category.
Despite FCF DSCRs tightening, the transaction still benefits from
typical whole business securitizations credit enhancements, such
as its cash trap mechanism (although this is not perfect as
currently c.GBP7.8 million of excess cash can be leaked to the
parent through tax gross-up on the subordinated loans). Other WBS
credit enhancements include a large tranched liquidity facility
and the deferability in favor of the class A notes from both
interest and principal payments on class B and C notes. In
addition, Punch B can continue to buy out its notes to prepay its
debt using future disposals proceeds or any excess cash.
Fitch expects Punch B's performance to remain exposed to UK
economic conditions and factors specific to the pub industry.
Moreover, compared to managed pubs, the pub operators of tenanted
estates (as in Punch B) have less influence over the operations
and the offering of the pubs; thus making it more difficult to
adjust swiftly to changing consumer behavior through better food
offerings, for example. The combination of rising unemployment,
higher retail price inflation, the VAT increase to 20%, alcohol
duties and uncertainties about the political and regulatory agenda
will continue to affect the health of the pub industry and add
uncertainty about the level at which performance will stabilize.
The RWN could be resolved following the conclusions of Plc's
operational and capital structure strategic review (which should
be announced on March 22, 2011) and more recent trading updates.
The ratings actions are:
-- GBP201m class A3 due 2022: downgraded to 'BBB' from 'A-',
maintained on RWN
-- GBP220m class A6 due 2024: downgraded to 'BBB' from 'A-',
maintained on RWN
-- GBP200.8m class A7 due 2033: downgraded to 'BBB' from 'A-',
maintained on RWN
-- GBP64.5m class A8 due 2033: downgraded to 'BBB' from 'A-',
maintained on RWN
-- GBP77.5m class B1 due 2025: downgraded to 'BB' from 'BBB',
maintained on RWN
-- GBP125m class B2 due 2028: downgraded to 'BB' from 'BBB',
maintained on RWN
-- GBP125m class C1 notes due 2035: downgraded to 'BB-' from
'BBB-', maintained on RWN
SANDPIPERS HOTEL: Goes Into Administration, Operates Normally
-------------------------------------------------------------
Isle of Writ Radio reports that Sandpipers Hotel has gone into
administration after getting into financial difficulties. The
report relates that the hotel is still operating as normal despite
the move.
Partners for FRP Advisory LLP have been appointed as joint
administrators to M & K Cotton Limited, which runs both the Island
hotel and another in Melton Mowbray, according to Isle of Writ
Radio.
"Trading is ongoing and the hotel is continuing to welcome guests
as usual, with no plans to close. Meanwhile, we are hopeful of
finding a purchaser in the near future, to protect the business
and its employees," Isle of Writ Radio quotes Chris Stevens, one
of the partners, as saying.
Sandpipers Hotel is located in Freshwater.
TOWERGATE FINANCE: Fitch Assigns 'BB'/'RR1' Rating to Notes
-----------------------------------------------------------
Fitch Ratings has assigned Towergate Finance plc's GBP210 million
term loan B, due 2017, and GBP230 million senior secured notes,
due 2018, final ratings of 'BB'/'RR1'. It has also assigned
Towergate Finance plc's GBP290 million senior notes, due 2019,
final ratings of 'B-'/'RR5'.
The assignment of the final ratings follows a review of final
documentation which materially conforms to information received at
the time the agency assigned the expected ratings on Jan. 31,
2011.
Although the term loan B offering was increased to GBP210 million
from GBP160 million, the senior secured notes offering was
decreased by the same amount to GBP230 million, so that absolute
levels of leverage and recovery prospects on both instruments in
case of default remain unchanged.
* UNITED KINGDOM: January Business Insolvencies Down 11% to 1,266
-----------------------------------------------------------------
Scott Hamilton at Bloomberg News reports that Experian Plc said
the number of U.K. business insolvencies fell 11% in January from
a year earlier as companies' financial positions improved.
According to Bloomberg, Experian said in an e-mailed report on
Thursday in Nottingham, England, that the number of company
failures declined to 1,266 from 1,426 in the same month a year
ago. The proportion of companies that failed slipped to 0.07%
from 0.08%, Bloomberg notes.
* UK: Number Of Agencies Going Into Administration Falls in 2H '10
------------------------------------------------------------------
Zeva News reports that during the second half of 2010 there was a
downward trend of recruitment agencies being placed into the hands
of administrators. The report relates that in the fourth quarter
13 agencies went into administration compared which is a 28% drop
from 2009.
Despite this drop recruiters are being encouraged to remain
vigilant in the face of client problems, according to Zeva News.
The report notes that David Grier, partner at corporate
restructuring and insolvency firm MCR, has stated "In our view,
recruitment businesses would be well advised to consider how they
would respond to a 'worst case scenario'." Mr. Grier has also
advised recruiters to consider factors such as dropping the number
of consultants, closure of redundant branches and continuity of
vital funding, Zeva News discloses.
===============
X X X X X X X X
===============
* BOND PRICING: For the Week February 28 to March 4, 2011
---------------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRIA
-------
BA CREDITANSTALT 5.470 8/28/2013 EUR 59.25
OESTER VOLKSBK 4.170 7/29/2015 EUR 63.00
OESTER VOLKSBK 4.810 7/29/2025 EUR 57.38
RAIFF ZENTRALBK 4.500 9/28/2035 EUR 78.82
DENMARK
-------
KOMMUNEKREDIT 0.500 2/3/2016 TRY 71.59
FINLAND
-------
MUNI FINANCE PLC 0.500 2/9/2016 ZAR 65.20
MUNI FINANCE PLC 1.000 6/30/2017 ZAR 58.18
MUNI FINANCE PLC 1.000 2/27/2018 AUD 65.63
MUNI FINANCE PLC 0.500 9/24/2020 CAD 69.97
MUNI FINANCE PLC 0.500 3/17/2025 CAD 54.90
MUNI FINANCE PLC 0.250 6/28/2040 CAD 22.67
FRANCE
------
AIR FRANCE-KLM 4.970 4/1/2015 EUR 15.33
ATOS ORIGIN SA 2.500 1/1/2016 EUR 55.45
BNP PARIBAS 10.050 7/24/2012 USD 59.62
CALYON 6.000 6/18/2047 EUR 28.67
CAP GEMINI SOGET 1.000 1/1/2012 EUR 45.65
CAP GEMINI SOGET 3.500 1/1/2014 EUR 45.37
CGG VERITAS 1.750 1/1/2016 EUR 32.01
CLUB MEDITERRANE 5.000 6/8/2012 EUR 17.71
CLUB MEDITERRANE 6.110 11/1/2015 EUR 19.65
ELEC DE CAR FIN 8.500 4/10/2018 USD 55.83
EURAZEO 6.250 6/10/2014 EUR 58.21
FAURECIA 4.500 1/1/2015 EUR 29.64
MAUREL ET PROM 7.125 7/31/2014 EUR 18.12
MAUREL ET PROM 7.125 7/31/2015 EUR 16.49
NEXANS SA 4.000 1/1/2016 EUR 70.13
ORPEA 3.875 1/1/2016 EUR 48.13
PEUGEOT SA 4.450 1/1/2016 EUR 33.22
PUBLICIS GROUPE 3.125 7/30/2014 EUR 41.26
PUBLICIS GROUPE 1.000 1/18/2018 EUR 49.57
RHODIA SA 0.500 1/1/2014 EUR 49.15
SOC AIR FRANCE 2.750 4/1/2020 EUR 21.64
SOITEC 6.250 9/9/2014 EUR 10.48
TEM 4.250 1/1/2015 EUR 58.11
THEOLIA 2.700 1/1/2041 EUR 10.71
GERMANY
-------
EUROHYPO AG 6.490 7/17/2017 EUR 8.38
EUROKOMMERZ 16.000 3/15/2011 RUB 0.01
HSH NORDBANK AG 4.375 2/14/2017 EUR 66.47
IKB DEUT INDUSTR 5.625 3/31/2017 EUR 13.00
L-BANK FOERDERBK 0.500 5/10/2027 CAD 49.15
LB BADEN-WUERTT 2.500 1/30/2034 EUR 68.62
SOLON AG SOLAR 1.375 12/6/2012 EUR 37.75
GREECE
------
ATHENS URBAN TRN 4.301 8/12/2014 EUR 73.66
ATHENS URBAN TRN 4.851 9/19/2016 EUR 70.73
ATHENS URBAN TRN 5.008 7/18/2017 EUR 64.40
HELLENIC REPUBLI 4.500 5/20/2014 EUR 71.88
HELLENIC REPUBLI 4.500 7/1/2014 EUR 71.33
HELLENIC REPUBLI 3.985 7/25/2014 EUR 71.98
HELLENIC REPUBLI 5.500 8/20/2014 EUR 72.73
HELLENIC REPUBLI 4.113 9/30/2014 EUR 71.92
HELLENIC REPUBLI 3.700 7/20/2015 EUR 66.09
HELLENIC REPUBLI 6.100 8/20/2015 EUR 72.15
HELLENIC REPUBLI 3.702 9/30/2015 EUR 66.09
HELLENIC REPUBLI 3.600 7/20/2016 EUR 62.62
HELLENIC REPUBLI 4.020 9/13/2016 EUR 62.60
HELLENIC REPUBLI 4.225 3/1/2017 EUR 61.48
HELLENIC REPUBLI 5.900 4/20/2017 EUR 67.25
HELLENIC REPUBLI 4.300 7/20/2017 EUR 63.04
HELLENIC REPUBLI 4.675 10/9/2017 EUR 61.17
HELLENIC REPUBLI 4.590 4/3/2018 EUR 59.29
HELLENIC REPUBLI 4.600 7/20/2018 EUR 62.71
HELLENIC REPUBLI 5.014 2/27/2019 EUR 58.99
HELLENIC REPUBLI 5.959 3/4/2019 EUR 63.21
HELLENIC REPUBLI 6.000 7/19/2019 EUR 66.37
HELLENIC REPUBLI 6.250 6/19/2020 EUR 67.67
HELLENIC REPUBLI 4.700 3/20/2024 EUR 60.03
HELLENIC REP I/L 2.900 7/25/2025 EUR 50.97
HELLENIC REPUBLI 5.300 3/20/2026 EUR 61.19
HELLENIC REP I/L 2.300 7/25/2030 EUR 49.61
HELLENIC REPUBLI 4.500 9/20/2037 EUR 55.73
HELLENIC REPUBLI 4.600 9/20/2040 EUR 55.80
HELLENIC REPUB 5.800 7/14/2015 JPY 71.77
HELLENIC REPUB 5.250 2/1/2016 JPY 69.94
HELLENIC REPUB 4.590 4/8/2016 EUR 67.38
HELLENIC REPUB 5.000 8/22/2016 JPY 65.15
HELLENIC REPUB 5.000 3/11/2019 EUR 60.99
HELLENIC REPUB 6.140 4/14/2028 EUR 66.20
HELLENIC REPUB 5.200 7/17/2034 EUR 69.43
NATIONAL BK GREE 3.875 10/7/2016 EUR 75.74
IRELAND
-------
ALLIED IRISH BKS 10.750 3/29/2017 EUR 28.48
ALLIED IRISH BKS 10.750 3/29/2017 USD 27.66
ALLIED IRISH BKS 12.500 6/25/2019 GBP 28.73
ALLIED IRISH BKS 12.500 6/25/2019 EUR 28.87
ALLIED IRISH BKS 11.500 3/29/2022 GBP 27.70
AIB MORTGAGE BNK 5.580 4/28/2028 EUR 65.40
AIB MORTGAGE BNK 5.000 2/12/2030 EUR 59.53
AIB MORTGAGE BNK 5.000 3/1/2030 EUR 59.52
ALTRAN TECHNOLOG 6.720 1/1/2015 EUR 5.08
ALCATEL-LUCENT 5.000 1/1/2015 EUR 4.60
BANK OF IRELAND 4.875 1/22/2018 GBP 52.78
BANK OF IRELAND 4.625 2/27/2019 EUR 52.02
BANK OF IRELAND 10.000 2/12/2020 GBP 64.42
BANK OF IRELAND 10.000 2/12/2020 EUR 65.58
BANK OF IRELAND 9.250 9/7/2020 GBP 60.57
BK IRELAND MTGE 5.760 9/7/2029 EUR 70.52
BK IRELAND MTGE 5.400 11/6/2029 EUR 67.42
BK IRELAND MTGE 5.450 3/1/2030 EUR 67.75
DEPFA BANK PLC 3.150 4/3/2018 EUR 75.11
DEPFA ACS BANK 0.500 3/3/2025 CAD 33.61
DEPFA ACS BANK 3.250 7/31/2031 CHF 74.42
DEPFA ACS BANK 4.900 8/24/2035 CAD 63.52
DEPFA ACS BANK 5.125 3/16/2037 USD 64.07
DEPFA ACS BANK 5.125 3/16/2037 USD 62.79
IRISH LIFE PERM 4.250 4/9/2015 EUR 74.97
IRISH GOVT 4.400 6/18/2019 EUR 73.30
IRISH GOVT 4.500 4/18/2020 EUR 71.33
IRISH GOVT 5.400 3/13/2025 EUR 70.75
IRISH NATIONWIDE 6.250 6/26/2012 GBP 49.50
IRISH NATIONWIDE 13.000 8/12/2016 GBP 19.75
ITALY
-----
ABRUZZO REGION 4.450 3/1/2037 EUR 72.42
BTPS I/L 2.350 9/15/2035 EUR 88.06
CITY OF TURIN 5.270 6/26/2038 EUR 65.17
CITY OF VENICE 4.265 3/26/2026 EUR 74.07
CO CASTELMASSA 3.960 3/31/2026 EUR 71.23
CO BRAONE 4.567 6/30/2037 EUR 70.70
COMUNE DI MILANO 4.019 6/29/2035 EUR 68.41
TELECOM ITALIA 5.250 3/17/2055 EUR 74.47
UNICREDITO ITALI 5.832 2/15/2035 EUR 72.35
LUXEMBOURG
----------
ARCELORMITTAL 7.250 4/1/2014 EUR 32.22
CRC BREEZE 5.290 5/8/2026 EUR 65.75
DEXIA BQ INT LUX 2.390 12/7/2021 EUR 82.14
LIGHTHOUSE INTL 8.000 4/30/2014 EUR 35.13
LIGHTHOUSE INTL 8.000 4/30/2014 EUR 35.98
NETHERLANDS
-----------
APP INTL FINANCE 11.750 10/1/2005 USD 0.01
BK NED GEMEENTEN 0.500 3/17/2016 TRY 71.38
BK NED GEMEENTEN 0.500 3/3/2021 NZD 59.47
BK NED GEMEENTEN 0.500 3/29/2021 USD 72.97
BK NED GEMEENTEN 0.500 2/24/2025 CAD 53.12
NATL INVESTER BK 25.983 5/7/2029 EUR 21.95
NED WATERSCHAPBK 0.500 3/11/2025 CAD 53.82
NED WATERSCHAPBK 2.927 6/30/2045 EUR 69.38
SIDETUR FINANCE 10.000 4/20/2016 USD 73.50
TJIWI KIMIA FIN 13.250 8/1/2001 USD 0.01
NORWAY
------
EKSPORTFINANS 0.500 5/9/2030 CAD 40.97
KOMMUNALBANKEN 0.500 1/27/2016 ZAR 71.65
KOMMUNALBANKEN 0.500 3/1/2016 ZAR 70.39
KOMMUNALBANKEN 0.500 3/24/2016 ZAR 71.00
PORTUGAL
--------
CAIXA GERAL DEPO 5.380 10/1/2038 EUR 68.52
METRO DE LISBOA 4.061 12/4/2026 EUR 65.32
METRO DE LISBOA 4.799 12/7/2027 EUR 70.89
PORTUGUESE OT'S 4.100 4/15/2037 EUR 67.64
RUSSIA
------
APK ARKADA 17.500 5/23/2012 RUB 0.38
ARKTEL-INVEST 12.000 4/9/2012 RUB 0.05
BARENTSEV FINANS 20.000 7/4/2011 RUB 1.60
BALTINVESTBANK 9.000 9/10/2015 RUB 75.00
BANK KEDR 12.800 7/22/2011 RUB 75.04
CENTREINVEST GRO 9.250 6/24/2014 RUB 75.00
DVTG-FINANS 17.000 8/29/2013 RUB 8.01
ENERGOSTROY-FINA 12.000 5/20/2011 RUB 75.00
GLOBEX BANK 8.100 12/8/2013 RUB 75.00
GLOBEX BANK 8.100 12/8/2013 RUB 100.15
IZHAVTO 18.000 6/9/2011 RUB 11.31
KARUSEL FINANS 12.000 9/12/2013 RUB 75.00
KVART-FINANS 12.000 10/5/2011 RUB 75.00
LADYA FINANS 13.750 9/13/2012 RUB 75.00
LLC VICTORIA FIN 8.000 2/12/2013 RUB 75.00
MAGNIT OJSC 8.250 9/9/2013 RUB 75.00
MAGNIT OJSC 8.250 9/9/2013 RUB 75.00
MEDVED-FINANS 14.000 8/16/2013 RUB 75.00
M-INDUSTRIYA 12.250 8/16/2011 RUB 29.02
MIRAX 14.990 5/17/2011 RUB 45.10
MIRAX 17.000 9/17/2012 RUB 30.16
MOSOBLTRUSTINVES 20.000 3/26/2011 RUB 6.99
MOSMART FINANS 0.010 4/12/2012 RUB 1.81
MOSOBLGAZ 12.000 5/17/2011 RUB 72.50
NATIONAL CAPITAL 12.500 5/20/2011 RUB 75.00
NOK 10.000 9/22/2011 RUB 50.00
NOK 12.500 8/26/2014 RUB 0.11
NOVYE TORGOVYE S 15.000 4/26/2011 RUB 74.00
OBYEDINEONNYE KO 10.750 5/16/2012 RUB 75.00
PEB LEASING 14.000 9/12/2014 RUB 75.00
RUSSIAN STANDARD 7.750 4/13/2012 RUB 75.00
SAHO 10.000 5/21/2012 RUB 6.00
SATURN 8.500 6/6/2014 RUB 1.07
SEVKABEL-FINANS 10.500 3/27/2012 RUB 3.40
SISTEMA-HALS 8.500 4/8/2014 RUB 75.00
SISTEMA-HALS 8.500 4/15/2014 RUB 75.00
SOUTHERN STOCK C 9.000 4/29/2014 RUB 75.00
SVOBODNY SOKOL 0.100 5/24/2011 RUB 3.02
TALIO-PRINCEPS 16.000 5/17/2012 RUB 75.00
TRANSCREDITFACTO 12.000 6/11/2012 RUB 75.00
TECHNOSILA-INVES 7.000 5/26/2011 RUB 2.00
TERNA-FINANS 1.000 11/4/2011 RUB 0.07
TRANSFIN-M 10.750 8/10/2012 RUB 75.00
TRANSFIN-M 9.750 8/13/2013 RUB 75.00
TRANSFIN-M 9.750 8/13/2013 RUB 75.00
VKM-LEASING FINA 1.000 5/18/2011 RUB 0.02
VOSTOCHNY EXPRES 12.500 3/7/2013 RUB 100.09
VTB-LEASING FINA 6.650 8/2/2017 RUB 75.00
ZAO EUROPLAN 10.000 8/11/2011 RUB 75.00
ZHILSOTSIPOTEKA- 9.000 7/26/2011 RUB 75.00
SPAIN
-----
AYT CEDULAS CAJA 3.750 6/30/2025 EUR 65.46
AYT CEDULAS CAJA 4.750 5/25/2027 EUR 73.18
AYUNTAM DE MADRD 4.550 6/16/2036 EUR 69.91
BANCAJA 1.500 5/22/2018 EUR 62.74
BANCO GUIPUZCOAN 1.500 4/18/2022 EUR 52.36
CAJA CASTIL-MAN 1.500 6/23/2021 EUR 61.06
CAJA MADRID 4.000 2/3/2025 EUR 74.93
CAJA MADRID 5.755 2/26/2028 EUR 63.27
CAJA MADRID 4.125 3/24/2036 EUR 68.38
CEDULAS TDA 6 3.875 5/23/2025 EUR 66.56
CEDULAS TDA A-5 4.250 3/28/2027 EUR 67.87
CEDULAS TDA A-6 4.250 4/10/2031 EUR 63.47
COMUNIDAD ARAGON 4.646 7/11/2036 EUR 72.87
GENERAL DE ALQUI 2.750 8/20/2012 EUR 72.33
GEN DE CATALUNYA 4.220 4/26/2035 EUR 57.89
IM CEDULAS 5 3.500 6/15/2020 EUR 74.45
JUNTA ANDALUCIA 5.150 5/24/2034 EUR 73.12
JUNTA LA MANCHA 3.875 1/31/2036 EUR 54.26
SWEDEN
------
SWEDISH EXP CRED 9.000 8/12/2011 USD 10.29
SWEDISH EXP CRED 9.000 8/28/2011 USD 10.74
SWEDISH EXP CRED 8.000 11/4/2011 USD 8.92
SWEDISH EXP CRED 2.000 12/7/2011 USD 10.09
SWEDISH EXP CRED 2.130 1/10/2012 USD 9.57
SWEDISH EXP CRED 8.000 1/27/2012 USD 10.10
SWEDISH EXP CRED 0.500 9/29/2015 BRL 63.66
SWEDISH EXP CRED 0.500 3/3/2016 ZAR 65.18
SWEDISH EXP CRED 0.500 3/5/2018 AUD 67.04
SWEDISH EXP CRED 0.500 1/25/2028 USD 50.42
UNITED KINGDOM
--------------
BANK OF SCOTLAND 5.772 2/7/2035 EUR 73.38
BANK NADRA 8.000 6/22/2017 USD 70.07
BARCLAYS BK PLC 10.950 5/23/2011 USD 65.04
BARCLAYS BK PLC 13.000 5/23/2011 USD 23.99
BARCLAYS BK PLC 10.510 5/31/2011 USD 13.01
BARCLAYS BK PLC 9.000 6/30/2011 USD 43.42
BARCLAYS BK PLC 7.500 9/22/2011 USD 17.15
BARCLAYS BK PLC 8.750 9/22/2011 USD 73.50
BARCLAYS BK PLC 8.800 9/22/2011 USD 16.64
BARCLAYS BK PLC 8.550 1/23/2012 USD 11.32
BARCLAYS BK PLC 10.350 1/23/2012 USD 22.03
BARCLAYS BK PLC 9.250 1/31/2012 USD 9.71
BARCLAYS BK PLC 10.650 1/31/2012 USD 45.71
BARCLAYS BK PLC 8.950 4/20/2012 USD 16.30
BARCLAYS BK PLC 13.050 4/27/2012 USD 27.08
BARCLAYS BK PLC 9.400 7/31/2012 USD 11.51
BARCLAYS BK PLC 10.800 7/31/2012 USD 28.00
BARCLAYS BK PLC 9.250 8/31/2012 USD 35.46
BARCLAYS BK PLC 9.500 8/31/2012 USD 30.45
BRADFORD&BIN BLD 4.910 2/1/2047 EUR 65.31
BRADFORD&BIN PLC 7.625 2/16/2049 GBP 47.36
BRIT INSURANCE 6.625 12/9/2030 GBP 66.63
CO-OPERATIVE BNK 5.875 3/28/2033 GBP 68.97
DISCOVERY EDUCAT 1.948 3/31/2037 GBP 67.93
EFG HELLAS PLC 6.010 1/9/2036 EUR 24.38
EFG HELLAS PLC 5.400 11/2/2047 EUR 55.25
HBOS PLC 4.500 3/18/2030 EUR 74.23
HBOS PLC 6.000 11/1/2033 USD 67.17
HBOS PLC 6.000 11/1/2033 USD 67.09
HEALTHCARE SUPP 2.067 2/19/2043 GBP 70.67
MAX PETROLEUM 6.750 9/8/2012 USD 60.89
NORTHERN ROCK 4.574 1/13/2015 GBP 76.06
NORTHERN ROCK 5.750 2/28/2017 GBP 70.03
PRINCIPALITY BLD 5.375 7/8/2016 GBP 76.95
PUNCH TAVERNS 7.567 4/15/2026 GBP 60.11
PUNCH TAVERNS 8.374 7/15/2029 GBP 58.69
PUNCH TAVERNS 6.468 4/15/2033 GBP 46.75
SKIPTON BUILDING 5.625 1/18/2018 GBP 74.10
UBS AG JERSEY 10.990 3/31/2011 USD 30.98
UBS AG JERSEY 10.500 6/16/2011 USD 73.14
UBS AG JERSEY 13.000 6/16/2011 USD 50.13
UBS AG 10.580 6/29/2011 USD 39.67
UBS AG JERSEY 10.280 8/19/2011 USD 35.71
UBS AG JERSEY 10.360 8/19/2011 USD 53.45
UBS AG JERSEY 11.150 8/31/2011 USD 39.66
UBS AG JERSEY 9.350 9/21/2011 USD 70.88
UBS AG JERSEY 9.450 9/21/2011 USD 51.03
UBS AG 10.530 1/23/2012 USD 39.51
UBS AG 13.300 5/23/2012 USD 4.25
UBS AG 13.700 5/23/2012 USD 14.05
UBS AG 14.000 5/23/2012 USD 9.70
UBS AG JERSEY 3.220 7/31/2012 EUR 51.47
UNIQUE PUB FIN 6.464 3/30/2032 GBP 64.68
WESSEX WATER FIN 1.369 7/31/2057 GBP 31.79
*********
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, Psyche A. Castillon, Julie Anne G. Lopez,
Ivy B. Magdadaro, Frauline S. Abangan and Peter A. Chapman,
Editors.
Copyright 2011. All rights reserved. ISSN 1529-2754.
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