/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/110323.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 Wednesday, March 23, 2011, Vol. 12, No. 58 Headlines B U L G A R I A BULGARIAN STATE: Government Approves BGN140 Million Loan C Z E C H R E P U B L I C CEPRO: Prague Court Launches Insolvency Proceedings SAZKA AS: PPF Group Buys Debt From Radovak Vitek G E R M A N Y BELUGA GROUP: Two Units File for Insolvency I R E L A N D AVESTUS CAPITAL: Appoints Insolvency Administrator to Neumarkt CORNERSTONE TITAN: Fitch Cuts Rating on Class G Notes to 'Csf' K A Z A K H S T A N * Moody's Assigns 'B1' Rating to Senior Kazakh Bond Issuances EVENTIS MOBILE: Sold to Victormax-Sistems for MDL120 Million R U S S I A GE MONEY: Moody's Upgrades Long-Term Deposit Ratings to 'Ba2' S W I T Z E R L A N D CROWN FOREX: Oxford, SEC Sign Consent Deal in Forex Fraud Fight U K R A I N E PUZATA HATA: Declared Bankrupt; Liquidation Commences RISE GROUP: Fitch Withdraws 'B-' Long-Term Issuer Default Ratings U N I T E D K I N G D O M 50 CENT UK: Provisional Liquidator Appointed ASSETCO PLC: Survival Hinges on Approval of Fundraising Proposals BOW HOMES: Put Into Administration; Owes More Than GBP6 Million CAMSTRUCTION: In Administration; 20 Jobs Affected EUROHOME UK: Fitch Retains 'Csf' Ratings on Class C Notes ELIZABETH HOTELS: Limes Hotel to Be Put Up for Auction Next Month HURST TRANSPORT: In Administration; 79 Jobs Affected PEVEREL GROUP: AIB Among Nine Lenders; Total Loans Unknown PROPERTY LEGAL: High Court Enters Liquidation Order SIGNAL PROPERTIES: To Face Liquidation; Fails to Pay Loan Interest SORSKY: In Administration; 25 Jobs Affected ********* =============== B U L G A R I A =============== BULGARIAN STATE: Government Approves BGN140 Million Loan -------------------------------------------------------- The Sofia Echo reports that Bulgaria's Parliament has approved the first reading of a state-guaranteed BGN140 million loan to the state railway company, The Bulgarian State Railways, commonly known as BDZ, to be granted by the Bulgarian Development Bank. The Sofia Echo says the finance will be used for redeeming the company's outstanding obligations to other banks, as well as for rolling stock repairs. The loan, according to the report, will be reimbursed when BDZ obtains BGN460 million in state funds, which in turn will be obtained from the World Bank. In debate in Parliament before the vote, the draft bill on the loan was backed mainly by GERB MPs Svetoslav Ivanov and Ivan Vulkov, as well as by Transport Minister Alexander Tsvetkov, who said repeatedly that the railway operator was on the verge of insolvency and the finance, as well as its restructuring, would help the company stay afloat, Sophia Echo says. "The company is close to insolvency. Banks can declare it bankrupt. There is no other source for rescuing the company, since it can not generate profits to cover borrowing," Sofia Echo quotes Mr. Ivanov as saying. Established in 1885, The Bulgarian State Railways, commonly known as BDZ, is Bulgaria's state railway company and the largest railway carrier in the country. The company's headquarters are located in the capital Sofia. =========================== C Z E C H R E P U B L I C =========================== CEPRO: Prague Court Launches Insolvency Proceedings --------------------------------------------------- CTK, citing the insolvency register, reports that the Municipal Court in Prague on March 21 launched insolvency proceedings against Cepro on the basis of an insolvency petition filed by lawyer Vladimir Baros. Cepro owes CZK127 million to Mr. Baros, CTK says, citing the petition. He has taken over one half of a claim on Cepro held by Dusan Pintye, CTK discloses. The claim arose in 2001 in connection with the exchange of nearly one million Iraqi dinars for CZK120 million and in connection with Cepro's debt to the company Slovnaft, CTK recounts. Cepro is a state-run fuel distributor. The company is engaged in transportation, storage and sale of oil products. SAZKA AS: PPF Group Buys Debt From Radovak Vitek ------------------------------------------------ Ladka Bauerova at Bloomberg News, citing CTK, reports that PPF Group NV, the Czech Republic's largest closely held financial company, bought Sazka AS's debt from billionaire Radovan Vitek. On March 8, 2011, the Troubled Company Reporter-Europe, citing Reuters, reported that Mr. Vitek owns a total of CKZ1.5 billion in Sazka debt. As reported by the Troubled Company Reporter-Europe, CTK said Sazka face two insolvency petitions at present. One of them filed by KKCG, the other by entrepreneur Mr. Vitek, who claims to be Sazka's biggest creditor, CTK noted. Sazka AS is a provider of lotteries and sport betting games in the Czech Republic. ============= G E R M A N Y ============= BELUGA GROUP: Two Units File for Insolvency ------------------------------------------- Marine Log reports that Beluga Chartering GmbH filed for insolvency in the Bremen District Court on March 16, 2011, while Beluga Shipping GmbH followed suit Friday. Insolvency attorney Edgar Gronda of the law firm Schultze & Braun has been appointed Insolvency Administrator in both cases. Marine Log relates that the insolvency filings followed the March 8 revelation that Beluga Founder and former CEO Niels Stolberg and other executives are being investigated by the Bremen Public Prosecutor on charges, essentially, of cooking the books. The investigation came after Oaktree Capital Management, which has a 49% stake in Beluga, reported "irregularities" to the prosecutor, Marine Log says. According to Marine Log, Oaktree said it discovered the irregularities when it performed due diligence on the company in response to a February 2011 request for further liquidity. Oaktree said that, in response to its discoveries, Beluga suspended a number of senior managers, pending further investigations, the report notes. Beluga Group is Bremen, Germany-based shipping company. ============= I R E L A N D ============= AVESTUS CAPITAL: Appoints Insolvency Administrator to Neumarkt -------------------------------------------------------------- The Irish Times reports that the Neumarkt shopping centre, a German shopping centre bought by Quinlan Private for EUR170 million in 2006, has had an insolvency administrator appointed. The Irish Times relates that the Neumarkt shopping centre had gone into administration in November 2010 after the private-equity group, since renamed Avestus Capital Partners, missed a EUR9.6 million payment. According to the report, Barclays Capital said Dr. Jorg Nerlich has been appointed insolvency administrator over the centre after the lenders agreed terms with him for the sale of the property. The loan behind the property was placed in a commercial mortgage- backed security, which is listed on the Irish Stock Exchange, the report notes. The Irish Times says the centre is being marketed by CBRE and indicative bids have been received and heads of terms with the highest bidders are expected to be agreed in the next two weeks. At the time of the administrator's appointment, the Irish Times relates, a source close to Avestus said they wanted to restructure the loan and had lined up fresh equity. The report adds that the source blamed Barclays for the decision to appoint an administrator saying the bank had demonstrated "little commerciality or flexibility." "Despite being presented with a comprehensive solution agreed by all other parties that would have involved the bank getting all its capital repaid, the bank refused to engage and alternatively pursued a policy of non-engagement and taking pre-emptive steps to escalate repayment leaving the borrower no option but insolvency," the Irish Times source said. Avestus Capital Partners is a European real estate investment and asset manager. CORNERSTONE TITAN: Fitch Cuts Rating on Class G Notes to 'Csf' -------------------------------------------------------------- Fitch Ratings has affirmed Cornerstone Titan 2007-1 plc's Class A1, A2 and E notes while downgrading all other remaining note classes,:. -- EUR510.1m class A1 (XS0288055436) affirmed at 'AAAsf'; Outlook Stable -- EUR316.2m class A2 (XS0288055600) affirmed at 'Asf'; Outlook revised to Negative from Stable -- EUR 71.3m class B (XS0262561946) downgraded to 'BBB-sf' from 'BBBsf'; Outlook Negative -- EUR 41.9m class C (XS0288057218) downgraded to 'BBsf' from 'BBB-sf'; Outlook Negative -- EUR 92.3m class D (XS0288057648) downgraded to 'CCCsf' from 'Bsf'; 'RR1' assigned -- EUR56.5m class E (XS0288058885) affirmed at 'CCCsf'; 'RR5' assigned -- EUR31.6m class F (XS0288059420) downgraded to 'CCsf' from 'CCCsf'; 'RR6' assigned -- EUR17.6m class G (XS0288060196) downgraded to 'Csf' from 'CCCsf'; 'RR6' assigned The affirmations of class A1/A2 notes are based on their relatively comfortable advance rates, given the fully sequential allocation of principal receipts. The outlook for the class A2 notes has been revised to Negative from Stable over concerns that further deterioration in the collateral may affect its performance. The downgrades are reflected by the significant balloon risk, with eighteen loans (70% of the securitized loan balance) scheduled to mature in the next twelve months. Fifteen of these loans display Fitch loan to value ratio's of greater than 100%, so refinancing will prove challenging in many cases. The weighted average market value decline of loans that were formally revalued in the last twelve months is 23%. As a consequence, the reported weighted-average LTV has increased to 87%, compared to 75% of the last review. Fitch estimates a current WA LTV of 115%. Nine loans are currently on the servicer's watchlist and a further five in special servicing. Two loans in the latter group have passed maturity, although they contribute only 2% of the securitized balance. However, Fitch expects that the number of specially serviced loans will increase substantially over the course of the next twelve months as more loans fail to repay at maturity. The Loews loan has been in special servicing since October 2008 after the borrower, part of the Level One Group, filed for insolvency. A bid for the collateral portfolio has been reportedly accepted, with the successful bidder currently completing due diligence. While the bid price remains undisclosed, Fitch believes that losses will be crystallized on the securitized debt. Losses on other loans plagued by high LTVs are also probable, as reflected in the number of tranches rated 'CCCsf' and below. Cornerstone Titan 2007-1 is a securitization of 26 (originally 32) commercial mortgage loans originated by Credit Suisse and Capmark Bank Europe. Since closing six loans have repaid reducing the outstanding net balance to EUR1.14bn. 80.4% (by loan balance) of the portfolio is located in Germany, 17.0% France, 1.4% Switzerland and 1.1% Poland. The collateral consists of 47.6% mixed use, 21.0% retail, 18.4% office, 9.5% multifamily and 2.6% other. Fitch will continue to monitor the performance of the transaction. =================== K A Z A K H S T A N =================== * Moody's Assigns 'B1' Rating to Senior Kazakh Bond Issuances ------------------------------------------------------------- Moody's Investors Service has assigned a B1 long-term local- currency debt rating to two local-currency-denominated senior unsecured bond issuances and a B2 long-term local-currency debt rating to two local-currency-denominated subordinated bond issuances of Eurasian Bank (Kazakhstan). The outlook on these ratings is negative, in line with the negative outlook on the bank's long-term deposit ratings. Moody's has assigned a B1 rating to these debt instruments: -- KZT10000M Senior Unsecured Regular Bond due 2023 -- KZT5000M Senior Unsecured Regular Bond due 2019 Moody's has assigned a B2 rating to these subordinated debt instruments: -- KZT5000M Subordinate Regular Bond due 2015 -- KZT15000M Subordinate Regular Bond due 2023 Ratings Rationale Moody's says that the bank's obligations to make payments under the senior unsecured bonds will rank -- at all times -- at least pari passu with the claims of all other unsecured and unsubordinated creditors of the bank, except for those claims that are preferred by any relevant law. In its turn, the B2 rating, which is one notch below the bank's deposit rating, takes into account the extent of the bonds' subordination to senior classes of debt. "The negative outlook on Eurasian Bank's debt and deposit ratings reflects pressure on the bank's credit profile from Kazakhstan's sustained tough credit conditions," explains Maxim Bogdashkin, a Moody's Assistant Vice President and lead analyst for the bank. "The bank's ratings may face downward pressure from any of these developments: (i) a failure to maintain adequate capital ratios; (ii) a failure to reduce concentration in its loan book; or (iii) the bank's inability to improve revenue-generation capacity, which will further affect its capital," Mr. Bogdashkin adds. At the same time, if Eurasian Bank's borrower concentration is significantly reduced (the 20 largest exposures accounted for around 4x Tier 1 capital in 2010) and its profitability on a pre- provision basis is restored, Moody's may change the rating outlook to stable. Moody's previous rating action on Eurasian Bank was implemented on 30 June 2010, when the rating agency assigned a B1 long-term local currency debt rating to the bank's local currency-denominated bond issuance. Headquartered in Almaty, Kazakhstan, Eurasian Bank reported total unaudited non-consolidated assets of KZT359 billion (US$2.4 billion) as at YE2010, while the bank's net profit for the 2010 financial year amounted to KZT633 million (US$4.3 million) under local accounting standards. EVENTIS MOBILE: Sold to Victormax-Sistems for MDL120 Million ------------------------------------------------------------ Telecom Insight reports that Eventis Telecom has sold its Moldovan subsidiary, Eventis Mobile, to newly formed company Victormax- Sistems. According to Telecom Insight, Victormax-Sistems won the tender to purchase bankrupt mobile operator Eventis Mobile with a bid of just MDL120 million (EUR7 million). Only two companies participated in the auction, which saw the final price just MDL2 million higher than the initial opening price of MDL118 million, Telecom Insight relates. The first two auctions failed to attract any bids, while the third auction was cancelled after the winner, AITEL Sistem, was discovered to have affiliations with Eventis' creditors, Telecom Insight recounts. As reported by the Troubled Company Reporter-Europe on Dec. 17, 2010, Infotag said Eventis Mobile owed about MDL2 million to 15 creditors and did not pay salaries to its employees for about one year, which prompted the court to decide to sequestrate its property and to offer it for sale in the Auction House commission shop. As of July 2010, the creditors' claims approved by the court was MDL104 million, MDL16.3 million of which are salary debts, MDL4.75 million are debts to the Budget and MDL80.26 million are debts to contractors, according to Infotag. Eventis Mobile is a mobile phone company working in the GSM 900/1800 MHz standard in Moldova. =========== R U S S I A =========== GE MONEY: Moody's Upgrades Long-Term Deposit Ratings to 'Ba2' ------------------------------------------------------------- Moody's Investors Service has upgraded the long-term local and foreign currency deposit ratings of Russia-based GE Money Bank CJSC to Ba2 from Ba3. At the same time, the bank's Not Prime short-term local and foreign currency deposit ratings, and an E+ bank financial strength rating were affirmed. Concurrently, Moody's Interfax Rating Agency raised the bank's long-term National Scale Rating to Aa2.ru from Aa3.ru. Moscow-based Moody's Interfax is majority owned by Moody's, a leading global rating agency. The outlook on all ratings is stable, while the NSR carries no specific outlook. Moody's assessment is based on GEMB's publicly available unaudited financial statements for 2010 prepared under Russian GAAP, as well as the bank's non-public management reports for the same year. Moody's parental support assumptions for GEMB are based on a history of ownership, track record of support, and Moody's discussions with the management of GEMB and its parent - General Electric Capital Corporation (GECC; Aa2/Stable). Ratings Rationale The rating action is driven by the improvements in GEMB's stand- alone credit profile. The bank's E+ BFSR, which now translates into a Baseline Credit Assessment of B1 compared to B2 previously, is supported by improvements in GEMB's asset quality, profitability, and funding base. Other factors supporting the upgrade include a stable capitalisation and improved financial efficiency. At the same time, GEMB's BFSR remains constrained by the bank's moderate commercial franchise and its exposure to high credit risk in retail lending. GEMB's asset quality improved in 2010, following a deterioration in 2008-2009 due to the economic crisis and loss of employment by borrowers. The bank's steps to improve asset quality produced adequate results, and included lower loan approval rates and enhanced collection procedures. The bank's problem loan ratio (overdue by more than 90 days) decreased in 2010, from 3.2% in 2009, according to the information provided by management. Loans written-off and sold decreased two times at YE2010, compared to 18.5% of gross loans in 2009. Moody's expects asset quality to improve further in 2011, as the bank's loans that were originated in 2008-2009 have mostly matured and new loan vintages appear to be of good quality. GEMB achieved a very sound 8% ROA for 2010, as improved asset quality allowed the bank to channel less of its pre-provision income into loan loss provisions: 22% in 2010, compared to a very high 105% in 2009. Moody's expects the bank to maintain a good profitability in 2011, as the cost of risk has stabilized at a five-year low of 3%. The bank maintains a good recurring earning power (pre-provision income / average assets): 13% at YE2010, a level that is three times higher than the sector average. Core profitability is supported by the wide net interest margin of 21% at YE2010. The bank is making progress in funding diversification, as the share of customer deposits increased to around one-third of liabilities at YE2010, from 20% in 2009. GEMB is predominantly funded by the parent: around 70% of funding was provided by GECC at YE2010, and as such is considered stable. The bank's capitalisation is sound, with 22.6% total CAR at YE2010 (Russian GAAP). Capitalisation was supported in 2010 by the bank's strong internal capital generation that allowed for a 37% increase in the capital base. Capitalization is expected to remain strong, due to sound profitability and moderate growth in risk assets in 2011. Moody's notes that it sees a limited upward potential for GEMB's stand-alone ratings in the medium term, as a higher rating would require fundamental improvements that are difficult to achieve. Those include, but not limited to, a much stronger commercial franchise evidenced by the bank's market share, network and product mix, and tangible diversification in liabilities which remain dominated by parental funds. GEMB's global local currency deposit rating of Ba2 is based on the bank's BCA of B1 and two notches of support from parent GECC. Moody's expects a moderate probability of support to GEMB from GECC in case of need, based on the former's full integration into the parent's operations, limited size, and reputation considerations. The rating agency notes that GECC is divesting or decreasing some of its non-core businesses, including the consumer segment that comprises GEMB. Moody's do not incorporate any probability of systemic support from Russia in GEMB's ratings, because the bank has limited systemic importance. The previous rating action on GEMB was on July 05, 2010, when Moody's has assigned its first-time global scale ratings to the bank: a Ba3 long-term and Not Prime short-term local and foreign currency deposit ratings, and an E+ BFSR. Concurrently, Moody's Interfax Rating Agency assigned a Aa3.ru long-term National Scale Rating (NSR) to the bank. Headquartered in Moscow, GEMB is a consumer finance bank with assets of RUB23 billion as at Dec. 31 2010. The bank operated through around 40 offices and 100 kiosks in 10 Russian regions. GEMB is fully owned by GECC, the financial arm of General Electric Corporation. ===================== S W I T Z E R L A N D ===================== CROWN FOREX: Oxford, SEC Sign Consent Deal in Forex Fraud Fight --------------------------------------------------------------- Bankruptcy Law360 reports that the U.S. asked a Minnesota judge Friday to approve a consent agreement with The Oxford Private Client Group LLC, which allegedly bilked investors of US$47 million in part by investing in Crown Forex SA before it went bankrupt. In the U.S. District Court for the District of Minnesota, Law360 says, the U.S. Securities and Exchange Commission filed the consent agreement, which a court-appointed receiver approved on behalf of Oxford. Crown Forex SA -- http://www.crownforex.com/-- was a Bassecourt, Switzerland-based company that offered trading on 13 currency pairs plus gold and silver. Swiss markets regulator FINMA took over the Company on Dec. 9, 2008, and entered a ruling to liquidate the Company on Feb. 23, 2009, following a money laundering investigation. The regulator declared the Company bankrupt on May 29, 2009. A U.S. Commodity Futures Trading Commission civil suit has been filed against Crown Forex. The suit accuses the principals and subsidiaries of Crown Forex of perpetrating an US$84 million foreign exchange scheme. ============= U K R A I N E ============= PUZATA HATA: Declared Bankrupt; Liquidation Commences ----------------------------------------------------- Interfax-Ukraine reports that the Kyiv Economic Court on March 9 declared Puzata Hata Ltd. bankrupt and commenced liquidation procedures. Dinapris Ltd. is the initiator of the company's bankruptcy, Interfax-Ukraine says, citing an official report in the Uriadovy Kurier newspaper, On Feb. 27, 2010, the Kyiv economic court opened a case on the bankruptcy of Puzata Hata, Interfax-Ukraine recounts. Viacheslav Letskan has been appointed asset manager, Interfax-Ukraine discloses. In the summer of 2010 Kyiv-based Ukrsotsbank said that the Puzata Hata restaurant chain was not observing its liabilities to Ukrsotsbank, to which it had earlier issued a UAH553.707 million (US$69.3 million) credit, and that it had changed the managing company of the chain and opened a bankruptcy case, Interfax-ukraine relates. Puzata Hata Ltd. was a fast food restaurant chain based in Kyiv. As of April 2009, the chain had 37 restaurants in 14 cities of Ukraine. RISE GROUP: Fitch Withdraws 'B-' Long-Term Issuer Default Ratings ----------------------------------------------------------------- Fitch Ratings has withdrawn Rise Group N.V.'s Long-term foreign and local currency Issuer Default Ratings at 'B-', its expected unsecured rating of 'B-', and National Long-term rating of 'BBB(ukr)'. All ratings are on Rating Watch Negative. The withdrawal follows the company's legal reorganization. Fitch will no longer provide ratings or analytical coverage of this issuer. =========================== U N I T E D K I N G D O M =========================== 50 CENT UK: Provisional Liquidator Appointed -------------------------------------------- The petition to wind up 50 Cent UK Ltd was presented following confidential enquiries carried out by Company Investigations, part of the Insolvency Service, under section 447 of the Companies Act 1985, as amended. On the application of the Secretary of State, the Official Receiver has been appointed by the Court as provisional liquidator of the company. The role of the Official Receiver is to protect the assets and financial records of the company pending determination of the petition. The provisional liquidator also has the power to investigate the affairs of the company insofar as it is necessary to protect the assets including any third party or trust monies or assets in the possession of or under the control of the company. The petition to wind up the company was presented on March 16, 2011, under the provisions of section 124A of the Insolvency Act 1986. The Official Receiver was appointed as provisional liquidator of the company on March 16, 2011. As the matter is before the Court no further information will be made available until the petition is determined. The petition is listed for hearing on June 29, 2011. 50 Cent UK Ltd was incorporated as a private company on July 8, 2008. The registered office of the company is at Unit 2, Merton Street, Off Merton Bank Road, St Helens, Merseyside, WA9 1HX. The previous registered office (and trading address) was at Brook House Mill, Old Mill Street, Blackburn, Lancashire, BB1 6DT. There are presently no recorded officers of the company. The former directors have been MBB Formations Ltd, Ahmed Adams, Tirmizi Syed, Philip Johnson and Lee Andrew Beddow, all of whom have resigned. The former company secretary is shown to have been Easy Mortgages and Loans Ltd (now Exon UK Ltd). ASSETCO PLC: Survival Hinges on Approval of Fundraising Proposals ----------------------------------------------------------------- Gill Plimmer at The Financial Times reports that AssetCo admitted on Monday it was struggling for survival after its shares were suspended and its chief executive and biggest shareholder refused to back fundraising proposals. According to the FT, investors had been expected to approve a GBP16 million share placing on Monday morning but the general meeting was adjourned for 24 hours after John Shannon, the chief executive who owns 30% of the company, said he was "not bound" to support the move. With lenders including Lloyds Banking Group expecting to be paid this week, the company, which has a 20-year contract to supply vehicles to the London Fire Brigade, admitted it might not survive, the FT notes. "Without the additional equity funding being forthcoming through the proposed placing, the directors believe that it is likely that the group's banks would withdraw their support which would mean that the company could not continue in its current form," the FT quotes the company as saying. As reported by the Troubled Company Reporter-Europe on Feb. 16, 2011, AssetCo said it needed GBP4 million (US$6.4 million) to settle debts as talks with bankers, including Lloyds Banking Group, had taken longer than expected to conclude. The company also said it expected lenders to waive "technical breaches" of banking covenants, according to the FT. AssetCo had hoped to raise cash to meet its short-term debt requirements by refinancing a GBP51 million facility, secured against GBP62 million worth of assets, the FT disclosed. Assetco PLC -- http://www.assetco.com/-- is a United Kingdom- based holding company. The Company is engaged in the provision of management services to the emergency services market. It is also engaged in automotive engineering, the provision of asset management services and the supply of specialist equipment to the emergency services market. The Company operates in one segment, the Fire and Rescue Services. The Fire and Rescue Services segment provides management services to the fire and rescue market. Its subsidiaries include AssetCo Emergency Limited, AssetCo Managed Services (ROI) Limited, AssetCo Bermuda Limited, AssetCo Resource Limited, Simentra Limited, Supply 999 Limited, AssetCo Municipal Limited and AssetCo Managed Services Limited. In January 2010, the vehicle assembly business of UV Modular Limited (UVM) was discontinued. In September 2009, the Company disposed its subsidiary, Auto Electrical Services (Manchester) Limited. BOW HOMES: Put Into Administration; Owes More Than GBP6 Million --------------------------------------------------------------- BBC News reports that Bow Homes has been placed into administration. According to BBC, the company owes its bank more than GBP6 million. Its last set of accounts for 2010 showed a pre-tax loss of GBP1.4 million compared to a GBP121,000 profit the year before, BBC discloses. Bow Homes is a building firm based at Colinglen Road in Dunmurry. CAMSTRUCTION: In Administration; 20 Jobs Affected ------------------------------------------------- The Construction Index reports that Camstruction has gone into administration, resulting in the loss of 20 jobs. According The Construction Index, local accountancy practice Meston Reid & Co. is trying to find a buyer for the business. Camstruction is a building company based in Aberdeen. EUROHOME UK: Fitch Retains 'Csf' Ratings on Class C Notes --------------------------------------------------------- Fitch Ratings says that both Eurohome UK Mortgages transactions' ratings will not be affected by the change in hedge counterparty to Barclays Bank PLC ('AA-'/Stable/'F1+') from Banque AIG (part of American International Group, 'BBB'). At their respective closings, the two Eurohome UK Mortgages issuers entered into hedging agreements with Banque AIG in order to mitigate the risk arising from the mismatch in interest received from the underlying borrowers (linked to Bank of England base rate) and the interest paid on the notes (linked to three-month Libor). Following AIG's downgrade in May 2009, it posted collateral in line with Fitch's structured finance counterparty criteria to support its role as the swap and cap guarantor. As of March 17, 2011, Barclays Bank PLC will take over the role of hedge counterparty in both transactions. The terms and conditions of the basis swap and interest rate cap agreements entered into between the two Eurohome UK Mortgages issuers and Barclays Bank PLC are substantially similar to the terms and conditions of the existing swap transactions with Banque AIG. As of the December 2010 interest payment date, the portion of BBR- linked loans in the two transactions ranged from 50.7% in Eurohome UK Mortgages 2007-2 to 88.3% in Eurohome UK Mortgages 2007-1. Although the mismatch in BBR and Libor is currently within 30bps, in Fitch's view the presence of a basis swap is beneficial for these transactions. The absence of such hedging arrangements in other UK non-conforming transactions led to significant losses and reserve fund draws when BBR and Libor diverged in 2008, from which some transactions have yet to fully recover. Given the current low interest rate environment, the interest rate caps in the deals are currently not beneficial, but would protect the transactions if interest rates significantly increase. In addition, these agreements are due to expire in June 2011 for Eurohome UK Mortgages 2007-1 and September 2011 for Eurohome UK Mortgages 2007-2. The notes' ratings are: Eurohome UK Mortgages 2007-1 plc: -- Class A (ISIN XS0290416527): 'Asf'; Outlook Stable; Loss Severity Rating 'LS-2' -- Class M1 (ISIN XS0290417418): 'BBBsf'; Outlook Negative; Loss Severity Rating 'LS-4' -- Class M2 (ISIN XS0290419380): 'Bsf'; Outlook Negative; Loss Severity Rating 'LS-4' -- Class B1 (ISIN XS0290420396): 'CCCsf'; Recovery Rating 'RR3' -- Class B2 (ISIN XS0290420982): 'CCsf'; Recovery Rating 'RR6' -- Class C (ISIN XS0290421956): 'Csf'; Recovery Rating 'RR6' Eurohome UK Mortgages 2007-2 plc: -- Class A1(A) (ISIN XS0311688054): 'AAAsf'; Outlook Stable; Loss Severity Rating 'LS-2' -- Class A1(B) (ISIN XS0311689532): 'AAAsf'; Outlook Stable; Loss Severity Rating 'LS-2' -- Class A2 (ISIN XS0311691272): 'AAAsf'; Outlook Stable; Loss Severity Rating 'LS-2 -- Class A3 (ISIN XS0311693484): 'Asf'; Outlook Stable; Loss Severity Rating 'LS-3' -- Class M1 (ISIN XS0311694029): 'BBBsf'; Outlook Negative; Loss Severity Rating 'LS-4' -- Class M2 (ISIN XS0311695182): 'Bsf'; Outlook Negative; Loss Severity Rating 'LS-4' -- Class B1 (ISIN XS0311695778): 'CCsf'; Recovery Rating 'RR4' -- Class B2 (ISIN XS0311697394): 'CCsf'; Recovery Rating 'RR6' -- Class C (ISIN XS0311699507): 'Csf'; Recovery Rating 'RR6' ELIZABETH HOTELS: Limes Hotel to Be Put Up for Auction Next Month ----------------------------------------------------------------- Bury Free Press reports that The Limes Hotel, in Needham Market, will be sold at auction next month. The hotel closed last month making 25 members of full and part- time staff redundant, Bury Free Press recounts. According to Bury Free Press, KPMG, joint administrators for the Elizabeth Hotels group which went into administration in December 2009, have confirmed that the hotel will be sold at auction by Strettons, in London, on April 4. KPMG continued to trade the business for more than a year before announcing its closure in February, Bury Free Fress relates. The Limes, which stands in High Street, was one of 26 hotels and pubs formerly owned by the Elizabeth group. HURST TRANSPORT: In Administration; 79 Jobs Affected ---------------------------------------------------- Yorkshire Post reports that Hurst Transport Ltd. has gone into administration, resulting in the loss of 79 jobs. According to Yorkshire Post, joint administrator Chris Rooney said the firm had struggled "with a combination of external challenges including the poor winter weather, loss of a major customer, volatility in fuel prices and the generally flat demand in the economy. These factors have led to the business suffering unsustainable losses, which have regrettably resulted in the closure of the business." Yorkshire Post relates that administrators at PricewaterhouseCoopers said the business, which entered a Company Voluntary Arrangement with creditors in 2009 after getting into difficulty, would be wound down within days. Hurst Transport Ltd. is a road haulage company based in Immingham. The company had an annual turnover of GBP8 million and operated a fleet of more than 50 vehicles, according to Yorkshire Post. PEVEREL GROUP: AIB Among Nine Lenders; Total Loans Unknown ---------------------------------------------------------- Gavin Daly at The Sunday Business Post Online reports that AIB has emerged as a lender to Peverel that has gone into administration with debts of GBP2 billion. According to the Post, the bank was one of nine lenders to the Peverel group of companies, owned by businessman and property investor Vincent Tchenguiz. The group was put into administration after it was unable to meet a demand from Bank of America Merrill Lynch for the repayment of GBP136 million in loans and interest, the Post recounts. AIB's total lending to the companies is not known and a spokeswoman for the bank said it would not comment on the matter, the Post notes. It is not clear whether AIB's loans to the Peverel companies have been transferred to the National Asset Management Agency (Nama), as the firm was a property management company rather than a property developer, the Post states. As reported in the Troubled Company Reporter-Europe on March 16, 2011, The Independent said Zolfo Cooper, the restructuring firm, was appointed as administrator for Mr. Tchenguiz's four companies -- Peverel, Peverel Group, Aztec Opco Developments and Aztec Acquisitions -- within the Peverel Group, which is the UK's largest property management company. PROPERTY LEGAL: High Court Enters Liquidation Order --------------------------------------------------- Millie Dyson at myintroducer.com reports that five connected companies involved in dubious property investment schemes, operated both in the UK and in Spain, have been ordered into liquidation in the High Court following a Government investigation. According to the report, the investigation by Company Investigations of the Insolvency Service found that Property Legal Services Limited, Property Legal Services (2007) Limited, Overseas Legal Services Ltd, Enjoy Property Ltd and United Holdings & Investment Limited were all linked in the operation of three distinct business activities: a fractional investment scheme, a scheme involving the transfer of off-plan properties in Spain and more recently a scheme involving the same day transfer of property in the UK. All of the companies were associated with Clive Ballard and in the case of PLS (London) Limited and PLS (2007) Limited with Michael Alexandra (also known as Michael Mendoza). The investigation has identified 25 victims of the scheme who together have lost in excess of GBP288,000. "We have strong enforcement powers and will not hesitate to use them as here where the companies were found to have operated complicated and dubious property schemes in a thoroughly unscrupulous way destroying the property investment dreams of those people unfortunate enough to have invested," myintroducer.com quotes Company Investigations Supervisor Chris Mayhew as saying. "More recently significant residential property transactions were entered into where material facts which could have influenced the mortgage lender's willingness to lend were not disclosed to the lenders." SIGNAL PROPERTIES: To Face Liquidation; Fails to Pay Loan Interest ------------------------------------------------------------------ BBC News reports that Signal Properties LLP is to be wound up after failing to pay interest on its Bank of Scotland Ireland (BoSI) loans. The partnership's last set of accounts notes that BoSI has ceased to operate and that another company is now managing the bank's loan book, BBC discloses. According to BBC, the partners concluded that meant further bank support for the venture was unlikely so it should be wound-up. The partnership owes its creditors almost GBP4 million, but estimates that its assets are worth just GBP1.2 million, BBC states. Signal Properties LLP is an east Belfast property partnership. SORSKY: In Administration; 25 Jobs Affected ------------------------------------------- Mark Smith at Runcorn and Widnes Weekly News reports that Sorsky was placed into administration on March 9. Runcorn and Widnes Weekly News relates that Paul Flint and Brian Green of KPMG Restructuring were appointed joint administrators. According to Runcorn and Widnes Weekly News, a total of 25 of the company's 40-strong workforce were made redundant on the appointment of the administrators. "We are continuing to try and trade the business while we seek a going concern sale for the business and its assets," Runcorn and Widnes Weekly News quotes Paul Flint as saying. Widnes-based Sorsky supplies garments, personal protective equipment and hygiene products to a range of sectors. ********* 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. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *