/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/110325.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Friday, March 25, 2011, Vol. 12, No. 60 Headlines C Z E C H R E P U B L I C CEPRO: Prague Court Turns Down Insolvency Proposal SAZKA AS: CEO Won't File for Bankruptcy; Awaits Ruling on Loan G E R M A N Y GROHE HOLDING: Moody's Assigns 'B2' Rating to EUR500-Mil. Notes GROHE HOLDING: S&P Gives Positive Outlook; Affirms 'B-' Rating I C E L A N D KAUPTHING BANK: SFO Case Manager in Tchenguiz Probe Steps Down I R E L A N D EUROCREDIT CDO: Moody's Lifts Rating on Class E Notes to Caa1 (sf) JUST MOBILE: Owens DDB Files Winding-Up Petition QUINN INSURANCE: May Lose Underwriting Contract if IL&P Buys Unit I T A L Y SEAT PAGINEGIALLE: S&P Junks Corporate Credit Rating From 'B-' N E T H E R L A N D S CARLSON WAGONLIT: S&P Raises Corporate Credit Rating to 'B' R U S S I A * IRKUTSK OBLAST: S&P Raises Issuer Credit Ratings to 'BB-' S P A I N BBVA RMBS: S&P Downgrades Rating on Class C Notes to 'BB (sf)' HIPOCAT 17: Moody's Changes Press Release on Ratings SANTANDER CONSUMER: Fitch Affirms Rating on Class E Notes at 'C' SANTANDER CONSUMER: S&P Cuts Rating on Class D Notes to 'CCC-' SANTANDER FINANCION: S&P Cuts Rating on Class D Notes to 'CCC-' S W I T Z E R L A N D SWISSPORT INTERNATIONAL: S&P Assigns 'B' Corporate Credit Rating U K R A I N E RODOVID BANK: Oschadbank to Act as Agent in Deposit Repayments VTB BANK: Fitch Assigns 'B+' Rating to Senior Unsecured Bonds U N I T E D K I N G D O M CROWN CURRENCY: Police Raid French Properties in Collapse Probe LICK UK: Creditors Set to Send Lick UK, Top Copy Into Liquidation RETALLACK LETTINGS: Goes Into Administration SAPPHIRE RETAIL: Shopping Center Portfolio Bought for GBP145MM TARGETFOLLOW PROPERTY: Almacantar Buys Center Point Tower WEST RESIDENTIAL: Goes Into Administration After Funding Bid Fails X X X X X X X X * BOOK REVIEW: THE HEROIC ENTERPRISE - Business and the Common ********* =========================== C Z E C H R E P U B L I C =========================== CEPRO: Prague Court Turns Down Insolvency Proposal -------------------------------------------------- CTK, citing the insolvency register, reports that the Municipal Court in Prague on Wednesday turned down the insolvency proposal filed against Cepro by lawyer Vladimir Bartos. According to CTK, the court said it had not obtained sufficient evidence about Cepro's insolvency. CTK relates that on Tuesday, Cepro rejected the reasons for the insolvency proposal as fabricated. It said it was an attempt at gaining a high amount of money from the company, CTK notes. As reported by the Troubled Company Reporter-Europe on March 23, 2011, CTK said Cepro owes CZK127 million to Mr. Baros. He has taken over one half of a claim on Cepro held by Dusan Pintye, CTK disclosed. 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 related. Cepro is a state-run fuel distributor. The company is engaged in transportation, storage and sale of oil products. SAZKA AS: CEO Won't File for Bankruptcy; Awaits Ruling on Loan -------------------------------------------------------------- Lenka Ponikelska at Bloomberg News reports that Sazka AS Chief Executive Officer Ales Husak said he will not file to take his lottery company into bankruptcy before a court rules on a loan that could help the firm. According to Bloomberg, Mr. Husak said a Prague-based court may rule today about a loan Sazka is hoping to receive. Bloomberg relates that Mr. Husak said at a press conference on Wednesday he prefers a reorganization of Sazka over any forced sale if he has to file for bankruptcy. Mr. Husak, as cited by Bloomberg, said previous bankruptcy filings made by other parties are not recognized by his management board. Mr. Husak said at the press conference that Sazka is operating normally and is continuing to run its lottery, Bloomberg notes. Sazka AS is a provider of lotteries and sport betting games in the Czech Republic. ============= G E R M A N Y ============= GROHE HOLDING: Moody's Assigns 'B2' Rating to EUR500-Mil. Notes ----------------------------------------------------------------- Moody's Investors Service has assigned a definitive B2 rating to the new EUR500 million senior secured Floating Rate Notes due September 2017, of Grohe Holding GmbH. The final terms of the Notes are in line with the drafts reviewed for the provisional (P) B2 rating of the notes. Ratings Rationale Moody's upgraded Grohe's corporate family rating to B2, from B3 on 7 March 2011, given the company's successful strategy in its key products and markets, as well as an improved debt maturity profile following the refinancing . Moody's assessment of Grohe's credit risk at CFR of B2 is based on: (i) Grohe's relatively good business profile, supported by its strong brand and leadership position in numerous markets; (ii) Grohe's weak financial profile, constrained by high leverage and limited, albeit improving, cash flow generation; and (iii) continuing uncertainty in the sector recovery. GROHE HOLDING: S&P Gives Positive Outlook; Affirms 'B-' Rating -------------------------------------------------------------- Standard & Poor's Ratings Services said that it revised its outlook on Grohe Holding GmbH, the indirect parent of German sanitary fittings manufacturer Grohe AG, to positive from stable. At the same time, the 'B-' long-term corporate credit rating on Grohe was affirmed. "The outlook revision reflects S&P's view that Grohe's credit metrics should improve over 2011 toward levels commensurate with a higher rating," said Standard & Poor's credit analyst Terence Smiyan. "Specifically, S&P anticipate that adjusted debt to EBITDA could reach 6x by year-end 2011, with further improvement thereafter, although funds from operations to debt would likely remain weak, in mid-to high single digits. "The outlook revision also reflects recent efforts by the group to bolster liquidity, which S&P now assess as strong." S&P considers that the recent EUR500 million senior secured floating rate notes issue as broadly neutral for the ratings because a corresponding amount of the existing 2014 notes was repaid. S&P also consider as broadly neutral Grohe's announcement in February 2011 that it had made an offer for the remaining shares in Joyou, its Chinese joint venture partner. Grohe's trading performance in 2010 continued to exceed S&P's expectations. Reported sales increased 18.7%, albeit against a very weak performance in 2009. These results continue to be supported by management's successful cost-saving initiatives, working capital management, and efforts to increase flexibility in Grohe's cost structure. The group's reported "normalized" EBITDA (which excludes restructuring costs and some other finance costs) increased 29% over 2010 to EUR200.3 million, while the loss in reported net income from continuing operations over the year fell to EUR62.9 million from EUR64.4 million in 2009. In S&P's view, the group's trading performance will continue to improve in 2011, with continued positive discretionary cash flow bolstered by a liquidity profile that S&P considers to be strong. S&P believes that a 'B' rating could be achieved should Grohe sustain adjusted debt to EBITDA of less than 6x, and assuming S&P continue to assess Grohe's business risk profile as fair. Nevertheless, S&P note that the group remains net loss-making and forecast that key credit ratios will remain highly leveraged for the coming years, limiting the likelihood of further ratings upside. S&P could revise the outlook to stable should S&P no longer believe that Grohe's credit metrics will improve at the rate S&P anticipate. This could in S&P's view occur either through a renewed deterioration in the group's markets, as a result of a more aggressive financial policy, or due to increased funding requirements for large increases in working capital. ============= I C E L A N D ============= KAUPTHING BANK: SFO Case Manager in Tchenguiz Probe Steps Down -------------------------------------------------------------- Brooke Masters and Roger Blitz at The Financial Times report that Mike Randall, the Serious Fraud Office case manager in charge of investigating the role of the Tchenguiz brothers in the collapse of Kaupthing, the Icelandic bank, has resigned. Mr. Randall's departure comes two weeks after the SFO arrested Robert and Vincent Tchenguiz, the billionaire entrepreneurs, and raided their homes and properties in connection with the Kaupthing inquiry, the FT relates. They have denied wrongdoing and were released without charge, the FT notes. According to the FT, the SFO said the long-time public servant had planned to leave for the private sector "for some time" but declined to say where he has a job lined up. As reported by the Troubled Company Reporter-Europe on March 11, 2011, the SFO, as cited by Bloomberg News, said the agency is investigating Kaupthing's "decision-making processes, which appear to have allowed substantial value to be extracted from the bank in the weeks and days prior to its collapse." In 2008, lending to Robert Tchenguiz and "related parties" corresponded to more than 25% of Kaupthing's equity, Bloomberg said, citing the Icelandic parliament-appointed Special Investigative Commission. Mr. Tchenguiz, Kaupthing's biggest retail borrower, was also a board member in Exista hf, one of the former owners of the bank, according to Bloomberg. The SFO is also probing whether Kaupthing made misrepresentations to attract U.K. investors, particularly its efforts to attract British investors to a high-yield deposit account called Kaupthing Edge, Bloomberg noted. About Kaupthing Bank Headquartered in Reykjavik, Kaupthing Bank -- http://www.kaupthing.com/-- is Iceland's largest bank and among the Nordic region's 10 largest banking groups. With operations in more than a dozen countries, the bank offers a range of services including retail banking, corporate finance, asset management, brokerage, private banking, treasury, and private wealth management. Kaupthing was created by the 2003 merger of Bunadarbanki and Kaupthing Bank. In October 2008, the Icelandic government assumed control of Kaupthing Bank after taking similar measures with rivals Landsbanki and Glitnir. As reported by the Troubled Company Reporter-Europe, on Nov. 30, 2008, Olafur Gardasson, assistant for Kaupthing Bank hf., filed a petition under Chapter 15 of title 11 of the United States Code in the United States Bankruptcy Court for the Southern District of New York commencing the Debtor's Chapter 15 case ancillary to the Icelandic Proceeding and seeking recognition for the Icelandic Proceeding as a "foreign main proceeding" under the Bankruptcy Code and relief in aid of the Icelandic Proceeding. ============= I R E L A N D ============= EUROCREDIT CDO: Moody's Lifts Rating on Class E Notes to Caa1 (sf) ------------------------------------------------------------------ Moody's Investors Service has upgraded the ratings of seven CLO notes issued by EUROCREDIT CDO VII PLC: Issuer: EUROCREDIT CDO VII PLC -- EUR221.5M Class A Senior Secured Floating Rate Notes due 2023, Upgraded to Aa1 (sf); previously on Aug 18, 2009 Downgraded to Aa2 (sf) -- EUR38.3M Class B Senior Secured Deferrable Floating Rate Notes due 2023-1, Upgraded to A2 (sf); previously on Aug 18, 2009 Downgraded to Baa1 (sf) -- EUR31.2M Class C Senior Secured Deferrable Floating Rate Notes due 2023, Upgraded to Ba1 (sf); previously on Dec 23, 2010 Ba2 (sf) Placed Under Review for Possible Upgrade -- EUR29.1M Class D Senior Secured Deferrable Floating Rate Notes due 2023, Upgraded to B2 (sf); previously on Dec 23, 2010 Caa1 (sf) Placed Under Review for Possible Upgrade -- EUR19.8M Class E Senior Secured Deferrable Floating Rate Notes due 2023-1, Upgraded to Caa1 (sf); previously on Dec 23, 2010 Ca (sf) Placed Under Review for Possible Upgrade -- EUR4M Class P Combination Notes due 2023, Upgraded to Baa1 (sf); previously on Aug 18, 2009 Downgraded to Ba2 (sf) -- EUR8M Class Q Combination Notes due 2023, Upgraded to B3 (sf); previously on Dec 23, 2010 Caa1 (sf) Placed Under Review for Possible Upgrade -- EUR15M Class R Combination Notes due 2023, Upgraded to Ba2 (sf); previously on Dec 23, 2010 Ba3 (sf) Placed Under Review for Possible Upgrade -- EUR6M Class S Combination Notes due 2023, Upgraded to Baa1 (sf); previously on Aug 18, 2009 Downgraded to Ba2 (sf) -- EUR125M Revolving Loan Facility Notes, Upgraded to Aa1 (sf); previously on Aug 18, 2009 Downgraded to Aa2 (sf) -- EUR3M Class V Combination Notes due 2023, Withdrawn (sf); previously on Dec 23, 2010 Caa2 (sf) Placed Under Review for Possible Upgrade -- EUR8M Class W Combination Notes due 2023, Withdrawn (sf); previously on Aug 18, 2009 Downgraded to B3 (sf) The ratings to the Class P Combination Notes, Class Q Combination Notes, Class R Combination Notes and Class S Combination Notes address the repayment of the Rated Balance on or before the legal final maturity, where the 'Rated Balance' is equal at any time to the principal amount of the each Combination Note on the Issue Date (and for Class R Combination Notes increased by the Rated Coupon of 1.50% per annum accrued on the Rated Balance on the preceding payment date minus the aggregate of all payments made from the Issue Date to such date, either through interest or principal payments. It is not an opinion about the ability of the issuer to pay interest. Moody's outstanding Rated Balance may not necessarily corresponds to the outstanding notional amount reported by the trustee. Class V and W combination notes were exchanged for their original components. Consequently, the ratings on these combination notes are withdrawn. Ratings Rationale Eurocredit CDO VII PLC, issued in April 2007, is a multicurrency collateralized loan obligation backed by a portfolio of mostly high yield European loans. The asset pool comprises approximately EUR457.44 million of assets which are managed by Intermediate Capital Managers Limited. This transaction has 2.2 years remaining until the end of the reinvestment period. The portfolio is denominated in EUR, GBP and US$. It is composed of 86% senior secured loans from 21 various industries. According to Moody's, the upgrade rating actions taken on the notes is a result primarily of the improved credit quality of the underlying portfolio and increased overcollateralization cushions since the last rating action. These are driven by the upgrade trend of corporate credits and the increase in loan prices. Since the last rating action in August 2009, class A and class E notes were partially redeemed due to the breach of Class D and Class E OC tests during the payment date in 2009 and 2010, currently all the OC tests are back to compliance. As of the latest collateral administrator report dated January 2011, the class A, class B, class C, class D and class E overcollateralization ratios are reported at 143.19%, 127.71%, 117.68%, 109.51% and 104.97% respectively, versus July 2009 levels of 136.67%, 122.53%, 113.00%, 105.36% and 100.73% respectively. In addition, the weighted average rating factor has decreased from 2690 in July 2009 to 2666 in January 2011. This reported WARF understates the actual improvement in the portfolio credit quality because of the technical adjustment of rating factors effected in September 2010. Hence effectively, the WARF of this portfolio has improved by 196 points since last rating action. The deal also experienced a decrease in defaulted assets from 10% to 2% of the portfolio over the same period. In the base case, Moody's analyzed the underlying collateral pool with an adjusted weighted average rating factor of 3868, a diversity score of 41 and a weighted-average recovery rate of 57.7%. Moody's also ran sensitivity analyses on key parameters for the rated notes. For instance, modelling the portfolio using the worse of its current or covenant matrix point parameters had an impact of less than 2 notches on the model output across the capital structure. Under this methodology, Moody's used its Binomial Expansion Technique, whereby the pool is represented by independent identical assets, the number of which is being determined by the diversity score of the portfolio. The default and recovery properties of the collateral pool are incorporated in a cash flow model where the default probabilities are subject to stresses as a function of the target rating of each CLO liability being reviewed. The default probability range is derived from the credit quality of the collateral pool, and Moody's expectation of the remaining life of the collateral pool. The average recovery rate to be realized on future defaults is based primarily on the seniority and jurisdiction of the assets in the collateral pool. The cash flow model used for this transaction, whose description can be found in the methodology listed above, is Moody's EMEA Cash-Flow model. Moody's also notes that 68.2% of the collateral pool consists of debt obligations whose credit quality has been assessed through Moody's credit estimates. Moody's Investors Service did not receive or take into account a third party due diligence report on the underlying assets or financial instruments related to the monitoring of this transaction in the past six months. JUST MOBILE: Owens DDB Files Winding-Up Petition ------------------------------------------------ Ciaran Hancock at The Irish Times reports that Dublin-based Owens DDB issued a petition for the winding up of Just Mobile. It is understood that this was prompted by the non-payment of fees due to Owens DDB for its role in marketing Just Mobile's launch five months ago, according to The Irish Times. The petition is slated to be heard in the High Court on March 28, The Irish Times says, citing a legal notice that appeared in the Sunday Business Post. It is not clear how much was owed to the advertising agency but it is understood to be a substantial sum, The Irish Times notes. Accounts for the company behind Just Mobile show that it had lost about EUR234,000 in the six months to the end of last year, The Irish Times discloses. It had shareholder funds of EUR1.1 million at the end of December 2009, the report notes. Just Mobile is a mobile phone operator backed by businessman Sean Melly. QUINN INSURANCE: May Lose Underwriting Contract if IL&P Buys Unit ----------------------------------------------------------------- Laura Noonan at Irish Independent reports that Quinn Insurance could lose out on its lucrative contract to underwrite Quinn Healthcare's business if the health arm is sold to Irish Life & Permanent. Irish Independent relates that the news comes days after the Irish Independent revealed that Ireland's biggest life insurance company was one of the remaining bidders for the health arm of stricken Quinn. According to Irish Independent, sources have now confirmed that if Irish Life & Permanent -- or any other company -- is successful, the new buyer is unlikely to be tied to keeping Quinn Insurance Limited (QIL) as an underwriter. Under the existing arrangements, Quinn Healthcare sells and distributes about EUR300 million worth of health insurance policies a year, but QIL does the insurance underwriting for that business, Irish Independent discloses. Irish Independent says new buyers would be free to auction out the underwriting to another provider or do it themselves. Putting the underwriting out to tender is seen as the most likely option for Irish Life, since it would mean the company would only act as a distributor and would take on less risk, Irish Independent notes. If Quinn Healthcare goes to a joint bid by nationalized Anglo Irish Bank and Liberty Mutual, the existing underwriting arrangements are expected to remain in place, Irish Independent states. About Quinn Insurance Quinn Insurance is owned by Sean Quinn, Ireland's richest man, and his family. The company has more than 20% of the motor and health insurance market in Ireland. Employing almost 2,800 people in Britain and Ireland, it was founded in 1996 and entered the UK market in 2004. As reported by the Troubled Company Reporter-Europe, The Irish Times said the Financial Regulator put Quinn Insurance into administration in March 2010 after his office discovered guarantees had been provided by the insurer's subsidiaries as far back as 2005 on Quinn Group debts of more than EUR1.2 billion. The regulator said the guarantees reduced the amount the firm had in reserve to protect policyholders against possible claims, putting 1.3 million customers at risk, according to The Irish Times. ========= I T A L Y ========= SEAT PAGINEGIALLE: S&P Junks Corporate Credit Rating From 'B-' -------------------------------------------------------------- Standard & Poor's Ratings Services said that it lowered to 'CCC+' from 'B-' its long-term corporate credit rating on Italian-based international publisher of classified directories SEAT PagineGialle SpA. The outlook is negative. At the same time, S&P lowered to 'B-' from 'B' its issue ratings on SEAT's first-lien term debt, revolving credit facility (RCF), and senior secured notes. The recovery ratings on these debt instruments are unchanged at '2', indicating S&P's expectation of substantial (70%-90%) recovery in the event of a payment default. S&P also lowered to 'CCC+' from 'B-' its issue rating on the second-lien notes issued by related entity Lighthouse International Co. S.A. The recovery rating on these notes is unchanged at '4', indicating S&P's expectation of average (30%- 50%) recovery in the event of a payment default. "The downgrades follow the Board of Directors' decision to instruct the Chairman and CEO to identify, with the support of qualified advisors, available financial options to guarantee the long-term stability of SEAT's financial structure," said Standard & Poor's credit analyst Carlo Castelli. "The downgrades mainly reflect S&P's opinion that, given SEAT's upcoming material debt maturities and persistent high leverage, management could implement credit-dilutive debt-restructuring measures over the next 12-18 months," added Mr. Castelli. "S&P could view these measures as being tantamount to default." SEAT's reported consolidated revenues and EBITDA were down by about 8.2% and 8.4%, respectively, in the 12 months ending Dec. 31, 2010. In S&P's opinion, SEAT's operating performance will likely remain under strain in 2011, as a result of the decline in the profitable traditional print business, along with ongoing difficult economic environments. As a consequence, S&P anticipate a mid-single-digit decline in the group's revenues in 2011. S&P project that EBITDA will stabilize at about EUR450 million in 2011 (before restructuring costs). S&P believes that SEAT will remain highly leveraged over the medium term due to its recent deferral of debt amortization. Standard & Poor's-adjusted gross debt to EBITDA stood at 6.2x in the year ended Dec. 31, 2009, compared with 6.0x as of year-end 2008, owing to the decline in EBITDA. S&P believes that this ratio is unlikely to improve to less than 6x in the medium term, unless SEAT manages to quickly turn its operating performance around. S&P could downgrade SEAT if, as the group moves closer to significant debt maturities in June 2012 and 2013, it announces debt-restructuring measures that S&P would deem tantamount to a default. The negative outlook also reflects S&P's opinion that SEAT's capital structure may not be sustainable over the long term, as a result of ongoing pressures on the group's operating performance. Although unlikely at this point, S&P could revise the outlook to stable if SEAT were able to stabilize its operating performance within the next 12 months and succeed in implementing measures to successfully address the refinancing risk in 2012-2013. However, such a revision would also depend on the group being able to avoid wiping out its cash flow generation to fund interest costs and maintain adequate covenant headroom. ===================== N E T H E R L A N D S ===================== CARLSON WAGONLIT: S&P Raises Corporate Credit Rating to 'B' ----------------------------------------------------------- Standard & Poor's Ratings Services said raised its long-term corporate credit rating on Netherlands-incorporated business travel operator Carlson Wagonlit B.V. to 'B' from 'B-'. The outlook is stable. S&P also raised its issue ratings on CWT's US$850 million senior secured facilities--made up of a US$650 million bullet term loan and a US$200 million RCF--to 'B' from 'B-'. The recovery rating of '3' on these facilities indicates S&P's expectation of meaningful (50%-70%) recovery in the event of a payment default. In addition, S&P raised the issue rating on the EUR285 million senior secured floating-rate notes to 'CCC+' from 'CCC'. The recovery rating of '6' on these notes indicates S&P's expectation of negligible (0%-10%) recovery in the event of a payment default. "The upgrade follows the recovery in CWT's earnings and credit metrics in 2010, on the back of stronger industry fundamentals and the beneficial effects from the company's restructuring efforts in 2009," said Standard & Poor's credit analyst Michael Seewald. Based on the publication of preliminary 2010 financials, S&P thinks that CWT's financial metrics have improved, with a ratio of Standard & Poor's adjusted debt to EBITDA of about 5.0x-5.5x as of Dec. 31, 2010, versus 6.5x (before nonrecurring restructuring items) at year-end 2009. In tandem, S&P see reported annual free operating cash flow for 2011 reverting to about $100 million. This will likely translate into a Standard & Poor's adjusted FOCF- to-debt ratio of 5%-10% by yearend. Still, S&P continue to see event risk and liquidity considerations as the key driver for the company's financial structure. S&P's assessment consequently incorporates the potential for a fresh, sudden deterioration in financial metrics in case of an external shock. Consequently, its main focus when S&P assess CWT's financial risk continues to be the company's liquidity balance and the flexibility it enjoys under financial covenants. S&P considers the company's liquidity as adequate, however, for 2011. "The stable outlook reflects S&P's view that the recovery in CWT's financial metrics and its adequate liquidity will likely enable it to weather potential temporary operating setbacks that are common in the travel industry," said Mr. Seewald. The proven flexibility of CWT's cost base and the geographic diversity of its earnings will likely provide additional cushioning against the company's exposure to event risk. S&P considers adjusted debt to EBITDA of 5.5x and adjusted EBITDA interest cover of 2.0x as commensurate with the current ratings. S&P might consider a negative rating action if a sudden disruption of travel activities caused CWT's operations to underperform, stopping positive free cash flow generation, or triggering a breach in financial covenants. That said, S&P believes that even in the event of 10% decline in sales in 2011, the company's adjusted EBTIDA interest coverage would remain above 2.0x. An upgrade of CWT would hinge on its willingness and ability to repay senior debt ahead of its refinancing requirements starting in 2013. =========== R U S S I A =========== * IRKUTSK OBLAST: S&P Raises Issuer Credit Ratings to 'BB-' ----------------------------------------------------------- Standard & Poor's Ratings Services said that it has raised its issuer credit ratings on Irkutsk Oblast to 'BB-' from 'B+'. At the same time, S&P raised the national scale rating on the oblast to 'ruAA-' from 'ruA+'. The outlook remains positive. The recovery rating on the oblast's unsecured debt remains unchanged at '3'. The ratings on the oblast are based on its limited financial flexibility and predictability, moderately high contingent liabilities, and its still-relatively-high, albeit decreasing, short-term debt. "However, the oblast has demonstrated a commitment to cost containment over the past 30 months; it maintains moderate debt levels and benefits from the diversity of its economy," Standard & Poor's credit analyst Felix Ejgel said. "S&P believes it has good long-term economic growth potential." The positive outlook on the long-term issuer credit rating reflects S&P's view that economic recovery and the oblast's strong commitment to curbing operating expenditure, ahead of the 2011- 2012 Russian parliamentary and presidential elections, may help the oblast to reduce its contingent liabilities and increase necessary investments in infrastructure, without taking on excessive debt and burdening its budget. S&P could raise the ratings over the next year if the oblast continues its financial-policy tightening. S&P would need to see a relatively strong operating surplus and modest deficits after capital accounts -- which would allow for a gradual debt-burden increase -- and the continuation of hefty cash reserves, combined with a reduction of payables at the municipal level. On the other hand, if the oblast's financial policy stance were to weaken, leading to a marginal operating surplus due to a rising political and social pressures and slower economic development -- and either a deterioration of its currently-strong liquidity or the rapid accumulation of tax-supported debt (approaching 60% of the oblast's consolidated revenues) -- S&P could revise the outlook to stable. In the near term, S&P does not expect to be lowering the ratings. ========= S P A I N ========= BBVA RMBS: S&P Downgrades Rating on Class C Notes to 'BB (sf)' -------------------------------------------------------------- Standard & Poor's Ratings Services lowered and removed from CreditWatch negative its credit ratings on BBVA RMBS 2, Fondo de Titulizacion de Activos' class B and C notes due to credit deterioration. Following S&P's credit analysis of BBVA RMBS 2's performance, S&P's ratings on the class A2, A3, and A4 notes are unchanged. They are therefore no longer on CreditWatch negative for credit reasons, but they remain on CreditWatch negative for counterparty reasons. S&P has observed continuing deterioration in the credit quality of the underlying portfolio backing BBVA RMBS 2. The number of loans in arrears for more than 90 days, but not yet considered as defaulted, remains high but has stabilized in the past six months. However, the stabilization of severe arrears is partly due to delinquent loans becoming defaulted (defined as 12 months in arrears in this transaction). This has increased the level of cumulative defaults to 1.08% of the original pool balance, according to the latest investor report of December 2010, compared with 0.64% a year ago. S&P considers this increase to be an indication of weakening performance of the underlying pool in this transaction. S&P note, though, that this level of defaults is well below the interest-deferral triggers of 12% and 10% of the initial balance of the mortgages for the class B and C notes, respectively, as set by the transaction documents. S&P does not expect that BBVA RMBS 2 will postpone interest on the junior classes of notes in the near future. The reserve fund has been fully drawn since the September 2010 interest payment date and BBVA RMBS 2 has not replenished it since that date. The lack of a reserve fund has reduced the credit enhancement available to the class B and C notes. For this reason S&P has downgraded these notes to a rating level that S&P believes is commensurate with the current credit enhancement and creditworthiness of these notes. Following the downgrade, S&P removed the ratings on these junior notes from CreditWatch negative, where S&P placed them on Sept. 15, 2010 due to their heightened exposure to credit risk. Following its credit analysis, S&P also note that its ratings on the class A2, A3, and A4 notes are unchanged. They are therefore no longer on CreditWatch negative for credit reasons, but they remain on CreditWatch negative for counterparty reasons. Specifically, on Jan. 18, 2011, S&P updated the CreditWatch negative status of its ratings on the class A2, A3, and A4 notes for additional counterparty reasons when S&P's updated counterparty criteria became effective. According to the criteria, if an ineligible counterparty does not replace itself with an eligible counterparty and if, in S&P's view, there are no mitigating factors, S&P would likely lower the rating on the supported securities. S&P will review this documentation and intend to resolve the CreditWatch placements before the criteria's transition date of July 18, 2011. BBVA RMBS 2 closed in March 2007. It securitized a portfolio of mortgages that Banco Bilbao Vizcaya S.A. granted to individuals to buy residential and non-residential properties with a maximum loan-to-value ratio of 100%. Ratings List BBVA RMBS 2, Fondo de Titulizacion de Activos EUR5 Billion Mortgage-Backed Floating-Rate Notes Ratings Lowered and Removed From CreditWatch Negative Rating ------ Class To From ----- -- ---- B BBB (sf) A (sf)/Watch Neg C BB (sf) BBB (sf)/Watch Neg Ratings Remain On CreditWatch Negative Class Rating ----- ------ A2 AAA (sf)/Watch Neg A3 AAA (sf)/Watch Neg A4 AAA (sf)/Watch Neg HIPOCAT 17: Moody's Changes Press Release on Ratings ---------------------------------------------------- Moody's Investors Service has revised rating release on Hipocat 17. The 11th Paragraph, "In addition, Moody's publishes a weekly summary of structured finance credit, ratings and methodologies, and Substitute analyst contact information with these: primary contact is "Alberto Barbachano" and secondary contact is "Michelangelo Margaria," has been removed. Moody's Investors Service has upgraded the ratings of Hipocat 17 FTA's class A notes, confirmed the ratings of class B and downgraded the ratings of the class C notes. These rating actions follow Moody's review of the recent structural changes to Hipocat 17 and concluded that these amendments have both positive and negative impact on the ratings, depending on the ranking of the notes: -- EUR1070.8 million Class A, upgraded to Aa1 (sf); previously on 21 December 2010, rated A1 (sf) -- EUR4.4 million Class B, Affirmed Baa2 (sf); previously on 21 December 2010, rated Baa2 (sf) -- EUR24.8 million Class C, downgraded to B3 (sf); previously on 21 December 2010, rated B2 (sf) Ratings Rationale The structural amendments relate to an increase in credit enhancement for the class A notes. The increase was implemented in the current capital structure by decreasing the size of the class A and increasing the size of tranche B. To decrease the size of class A, an amount of bonds will be fully amortized on a extraordinary payment date, as described in the amendment. The reduction of class A will be funded by a Loan B from Catalunya Caixa. As a result of these changes, Class A benefits from more credit enhancement, Class B remains equal and it is not affected by the changes and Class C is negatively impacted because it will receive less spread. In the new structure, tranche B absorbs more spread because is the outstanding principal will be higher than in the past. Loan B is not rated and ranks pari passu with class B. Loan B and the Class B notes will amortize pro rata. The ratings of the notes also take into account the credit quality of the underlying mortgage loan pools, from which Moody's determined the MILAN Aaa Credit Enhancement and the lifetime losses (expected loss), as well as the transaction structure and any legal considerations as assessed in Moody's cash flow analysis. The expected loss and the Milan Aaa CE are the two key parameters used by Moody's to calibrate its loss-distribution curve, used in the cash-flow model to rate European RMBS transactions. Portfolio Expected Loss: Hipocat 17 is still performing in line with the revised assumptions as of December. Cumulative write-offs rose to 1.52% of original pool balance in October 2010, up from 1.13% a year earlier. The share of 90+ day arrears was 0.56% at the end of October 2010. The reserve fund in Hipocat 17 is currently at its target level. Moody's expects the portfolio's credit performance to continue to be under stress, as Spanish unemployment remains elevated. Moody's believes that the anticipated tightening of Spanish fiscal policies is likely to weigh on the recovery in the Spanish labor market and further constraint Spanish households finances. Moody's also has concerns over the timing and degree of future recoveries in a weaker Spanish housing market. On the basis of the rapid increase in defaults in the transaction and Moody's negative sector outlook for Spanish RMBS, Moody's have updated the portfolio expected loss assumption to 2.6% from 1.2%. MILAN Aaa CE: Moody's assessed the loan-by-loan information Hipocat 17 in December 2010 to determine the MILAN Aaa CE. Milan Aaa CE for Hipocat 17 was increased to 9.00%, up from 3.75%. The increase in the MILAN Aaa CE reflects the high geographical concentration in Catalonia and the concentration of loans originated to new residents. The rating addresses the expected loss posed to investors by the legal final maturity of the notes. In Moody's opinion, the structure allows for timely payment of interest and principal with respect of the notes by the legal final maturity. Moody's ratings only address the credit risk associated with the transaction. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors. Transaction Features Hipocat 17 closed in December 2008. The transaction is backed by a portfolio of first-ranking mortgage loans originated by Caixa Catalunya, now part of Caixa d'Estalvis de Catalunya, Manresa I Tarragona (A3/P-2 on review for possible downgrade) and secured on residential properties located in Spain. The new entity, Caixa d'Estalvis de Catalunya, Manresa I Tarragona, has been operative since July 1, 2010. Moody's was informed that the servicing of Caixa Catalunya's mortgage portfolio will remain on Caixa Catalunya's servicing platform. Moody's Investors Service did not receive or take into account a third-party due diligence report on the underlying assets or financial instruments related to the monitoring of this transaction in the past six months. SANTANDER CONSUMER: Fitch Affirms Rating on Class E Notes at 'C' ---------------------------------------------------------------- Fitch Ratings has affirmed FTA Santander Consumer Spain 07-2's notes and revised the Outlooks on the class A and B notes to Stable from Negative: -- EUR250.2m class A: affirmed at 'BBB-'; Loss Severity Rating revised to 'LS-1' from 'LS-2'; Outlook revised to Stable from Negative -- EUR27.0m class B: affirmed at 'B'; Loss Severity Rating revised to 'LS-3' from 'LS-4'; Outlook revised to Stable from Negative -- EUR17.5m class C: affirmed at 'CCC'; 'RR4' -- EUR26.5m class D: affirmed at 'CC'; Recovery Rating revised to 'RR4' from 'RR5' -- EUR20.0m class E: affirmed at 'C'; Recovery Rating revised to 'RR5' from 'RR6' The affirmations and Stable Outlooks reflect the recent stabilization of the transaction's performance following continued deterioration since February 2009. The transaction is a securitization of consumer and auto loans originated by Santander Consumer E.F.C.,S.A., a wholly-owned and fully integrated subsidiary of Santander Consumer Finance ('AA'/Stable/'F1+'),and extended to individuals and companies in Spain. The reserve fund has been completely utilized to offset significant losses which have occurred since February 2009. Over the past four periods, losses have displayed a decreasing trend which has enabled reduction of the outstanding PDL balance which has fallen by 8.7m since August 10. The Fitch delinquency ratio has dropped by over 5% (8.75% from 14.85%) since February 2010. Cumulative net defaults reached 7.36% in February 2011, which was above the Fitch base case value of 6.2% for the same period. However, this value has consistently fallen from the August 2010 value of 7.8%. Credit enhancement for the class A and B notes was 13.3% and 4.0% in February 11. For the class C and D notes, credit enhancement levels were -2.1% and -11.3%, respectively. As of February 2011, Santander 07-2 had amortized to 33.5% of its original size. The class A notes currently represent 26.9% of their initial balance. SANTANDER CONSUMER: S&P Cuts Rating on Class D Notes to 'CCC-' -------------------------------------------------------------- Standard & Poor's Ratings Services took various actions on Fondo de Titulizacion de Activos Santander Consumer Spain Auto 06 and Fondo de Titulizacion de Activos Santander Consumer Spain 07-2. Specifically, S&P: * Lowered its rating on Santander Consumer Spain Auto 06's class D notes; * Placed its rating on Santander Consumer Spain Auto 06's class A and C notes on CreditWatch negative; * Affirmed its rating on Santander Consumer Spain Auto 06's class B notes; and * Placed its ratings on Santander Consumer Spain 07-2's class A to D notes on CreditWatch negative. In Santander Consumer Spain Auto 06, based on the information reported in the investor report of January 2011, the cumulative level of defaulted loans represented 3.66% of the original portfolio balance securitized at closing. This level of cumulative defaults is now very close to the class D interest deferral trigger of 3.91%. While reported delinquencies are now stabilizing, there is a risk that this could be associated with a rapid rollover of severe delinquencies into defaulted loans. Even though the transaction's amortization features have increased the level of credit enhancement for classes A, B, and C, the default levels have resulted in a depletion of the transaction's reserve fund since April 2009, which is currently at 76% of its required level. Based on these factors, S&P has lowered its rating on the class D notes to 'CCC- (sf)' and placed its 'BB+ (sf)' rating on the class C notes on CreditWatch negative. The interest deferral trigger in respect of class B is defined as the level of cumulative defaults over the original portfolio balance securitized being 7.37%. S&P considers that the current rating on the class B notes is commensurate with the current credit enhancement level and the transaction's performance, including an assessment of this class B interest deferral trigger. S&P has thus affirmed its 'A- (sf)' rating on the class B notes. S&P has also placed its 'AAA (sf)' rating on the class A notes on CreditWatch negative due to the implementation of its updated Counterparty Criteria. Due to an administrative error, S&P didn't do this on Jan. 18, 2011 when its counterparty criteria became effective. S&P has now included the rating in the complete list of European public ratings affected by the counterparty criteria, which is available in "EMEA Structured Finance CreditWatch Actions In Connection With Revised Counterparty Criteria," published Jan. 18, 2011. S&P intend to resolve all of these CreditWatch placements by the transition date of July 18, 2011. In Santander Consumer Spain 07-2, the transaction doesn't benefit from any enhancement from the reserve fund as it has been fully drawn since August 2009 due to the rising default levels. The fund accumulated defaulted loans for 9.1% of the original note balance, which is close to the most junior classes' interest deferral trigger (set at 10.3%) and the level of loans that are delinquent but not defaulted now accounts for 5.11% of the current portfolio balance. In addition, in November 2010 the fund reported a principal shortfall on the class A amortization of EUR29.37 million. These factors have lowered the level of credit enhancement available to the rated notes. For this reason, S&P has placed its ratings on the classes A, B, C, and D notes on CreditWatch negative. S&P will now conduct credit and cash flow reviews and aim to resolve the CreditWatch placements within 90 days. Santander Consumer Spain Auto 06 and Santander Consumer Spain 07-2 securitize portfolios of Spanish auto loans originated by Santander Consumer E.F.C., which it granted to individuals and enterprises for buying new and used cars. The portfolio backing Santander Consumer Spain 07-2 also includes other consumer loans (40% of the closing pool). Santander Consumer Spain Auto 06 closed in October 2006 and Santander Consumer Spain 07-2 closed in September 2007. Ratings List Fondo de Titulizacion de Activos Santander Consumer Spain Auto 06 EUR1.360 Billion Floating-Rate Notes Ratings Lowered Rating ------ Class To From ----- -- ---- D CCC- (sf) B+ (sf) Ratings Placed on CreditWatch Negative Rating ------ Class To From ----- -- ---- A AAA (sf)/Watch Neg AAA (sf) C BB+ (sf)/Watch Neg BB+ (sf) Rating Affirmed Class Rating ----- ------ B A- (sf) Rating Unaffected Class Rating ----- ------ E D (sf) Fondo de Titulizacion de Activos Santander Consumer Spain 07-2 EUR1.02 Billion Floating-Rate Notes Ratings Placed on CreditWatch Negative Rating ------ Class To From ----- -- ---- A AA- (sf)/Watch Neg AA- (sf) B BBB- (sf)/Watch Neg BBB- (sf) C BB- (sf)/Watch Neg BB- (sf) D CCC (sf)/Watch Neg CCC (sf) Rating Unaffected Class Rating ----- ------ E D (sf) SANTANDER FINANCION: S&P Cuts Rating on Class D Notes to 'CCC-' --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its credit rating on Fondo de Titulizacion de Activos Santander Financiacion 1's class D notes and placed on CreditWatch negative its credit ratings on the class A, B, and C notes. The rating actions on the class B, C, and D notes follow the ongoing significant deterioration in the reported credit quality of Santander Financiacion 1's underlying portfolio. On July 29, 2009, S&P lowered to 'D (sf)' the rating on the class F notes in this transaction following the issuer's failure to meet timely interest payments on the April 2009 payment date. This rating remains unaffected by the rating actions. Then, on Aug. 10, 2009, S&P lowered its rating on the class E notes to 'D (sf)' following the issuer's failure to meet timely interest payments at the July 2009 payment date. Based on the latest investor reports, the transaction experienced a rapid increase in defaulted loans during 2010. The transaction defines defaults as loans being delinquent for more than 12 months. The level of defaulted loans is now 7.33% of the closing portfolio balance versus a level of 6.60% in January 2010. While delinquency levels are now stabilizing, S&P considers that this could be associated with a rapid rollover of severe delinquencies into defaulted loans, rather than from borrowers curing their delinquent loans. Since April 2009, the reserve fund has been fully depleted due to the rising default levels. Finally, as of the last payment date the fund accumulated EUR41.8 million of principal deficiency, which is the difference between the available remaining principal receipts and the amount of the notes still to be amortized. According to the transaction documents, Santander Financiacion 1 will defer the class D interest when this deficit reaches EUR50.3 million, which is the sum of 50% of the principal outstanding balance of the class D notes and 100% of the principal outstanding balance of the class E notes. S&P will monitor any steps the servicer takes to address this credit risk and S&P will conduct a credit and cash flow analysis to assess whether the class B and C notes' ratings are appropriate. S&P intend to resolve the CreditWatch placements in respect of classes B and C following this analysis. S&P has also placed its 'AAA (sf)' rating on the class A notes on CreditWatch negative due to the implementation of its updated counterparty criteria. Due to an administrative error, S&P didn't do this on Jan. 18, 2011 when its counterparty criteria became effective. S&P has now included the class A notes' rating in the complete list of European public ratings affected by the counterparty criteria, which is available in "EMEA Structured Finance CreditWatch Actions In Connection With Revised Counterparty Criteria," published Jan. 18, 2011. S&P intend to resolve all of these CreditWatch placements by the transition date of July 18, 2011. Santander Financiacion 1's notes, issued in 2006, are backed by a portfolio of Spanish consumer loans originated by Banco Santander S.A. (AA/Negative/A-1+). Ratings List Fondo de Titulizacion de Activos Santander Financiacion 1 EUR1,914.3 Million Asset-Backed Floating-Rate Notes Ratings Lowered Rating ------ Class To From ----- -- ---- D CCC- (sf) CCC (sf) Ratings Placed on CreditWatch Negative Rating ------ Class To From ----- -- ---- A AAA (sf)/Watch Neg AAA (sf) B AA (sf)/Watch Neg AA (sf) C A- (sf)/Watch Neg A- (sf) Ratings Unaffected Class Rating ----- ------ E D (sf) F D (sf) ===================== S W I T Z E R L A N D ===================== SWISSPORT INTERNATIONAL: S&P Assigns 'B' Corporate Credit Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services said that it assigned its 'B' long-term corporate credit rating to Switzerland-based airport services provider Swissport International Ltd. The outlook is stable. In addition, S&P assigned its 'B' issue rating to Swissport's Swiss franc (CHF)350 million and US$425 million tranches of the senior secured notes issued by Aguila 3 S.A., a holding company created for the purpose of acquiring Swissport. The proceeds of the notes, along with approximately CHF450 million of funds from the new owners, were used to finance the acquisition of Swissport from Ferrovial S.A. as well as refinance existing debt. The recovery rating on the notes is '4', reflecting S&P's expectation of average (30%-50%) recovery in the event of a payment default. "The ratings on Swissport reflect S&P's view of the group's high leverage post the transaction, with Standard & Poor's-adjusted total debt of about CHF1.2 billion," said Standard & Poor's credit analyst Andrew Stillman. "It also reflects the group's exposure to the highly cyclical and competitive airline industry, with local competitors that tend to be well entrenched." These risks are partially mitigated by Swissport's leading market position in providing airport services; the resilience of the group's profitability in recent years; its geographically diverse portfolio of airports served; and its well diversified customer base. Further support for the ratings comes from Swissport's good revenue visibility, provided by stable medium-term contracts with airline customers. Swissport's highly leveraged financial risk profile includes on- balance-sheet debt of approximately CHF800 million post transaction, estimated off-balance-sheet debt of CHF260 million related to operating leases, and CHF120 million of shareholder loans that S&P considers as debt under its published criteria. While S&P anticipate that these amounts should fall somewhat in future years, this accumulative level of debt contributes to weak credit measures. S&P estimate that adjusted debt to EBITDA, post transaction, will be just over 7x despite improvements in EBITDA levels. Furthermore, in the near term S&P project adjusted funds from operations to debt to be just above 10% and adjusted debt to total capital to be above 80%. In S&P's view, Swissport will be able to maintain its recent improvement in EBITDA margins despite heavy exposure to the highly cyclical and competitive airline industry. In addition, rating stability is dependent on the group maintaining a ratio of adjusted FFO to debt above 10%, assuming no weakening in the business risk profile. Sustained deleveraging, improvements in cash flows, an absence of significant one-off events (pandemics, terrorism, and volcanic ash clouds, for instance), as well as improved credit metrics that include a sustained adjusted FFO to debt ratio in excess of 15%, could in S&P's view provide a basis for positive rating movement. Equally, downward rating pressure could result from poor trading conditions, weakening EBITDA margin levels, reduced cash flows, increasing debt levels, or lower credit metrics including adjusted FFO to debt of less than 10%. ============= U K R A I N E ============= RODOVID BANK: Oschadbank to Act as Agent in Deposit Repayments -------------------------------------------------------------- Renaissance Capital, citing newspaper Kommersant Ukraine, reports that Ukrainian government has chosen Oschadbank to act as an agent in the repayment of failed banks' deposits. According to Renaissance Capital, the newspaper's sources said that Oschadbank will start repayments to depositors of Rodovid Bank as early as April, although it has not given any details about the potential financing plan. One of the previous proposals was that Ukreximbank would receive a capital injection from the government and simultaneously take onboard Rodovid's private depositors, Renaissance Capital notes. As reported by the Troubled Company Reporter-Europe on March 16, 2011, Bloomberg News said Ukraine's central bank extended administration of PAT Rodovid Bank for the sixth time since 2009 because the lender's business needs to meet the requirements of Ukrainian banking laws. The administration was extended from March 15 through Sept. 15, Bloomberg disclosed. Yuriy Raytburg would remain as an administrator in Rodovid, Bloomberg noted. Rodovid Bank is based in Kiev. The net assets of the bank were estimated at UAH16,952.2 million as of Jan. 1, 2010, the credits and debts of clients were valued at UAH5,355.5 million, and the equity of shareholders was estimated at UAH4,336.4 million, according to Ukrainian News Agency. VTB BANK: Fitch Assigns 'B+' Rating to Senior Unsecured Bonds ------------------------------------------------------------- Fitch Ratings has assigned PJSC VTB Bank (Ukraine)'s Series C UAH300 million senior unsecured bonds a final Long-term local currency rating of 'B+', a Recovery Rating of 'RR4' and a National Long-term rating of 'AAA(ukr)'. The assignment of the final ratings follows the completion of the issuance and receipt of documents conforming to the information previously received. The bank's obligations under the issues will rank at least equally with the claims of VTBU's other senior unsecured creditors, except those preferred by relevant legislation. Under Ukrainian law, retail depositors' claims rank above those of other senior unsecured creditors. At end-2010, retail deposits accounted for 17% of VTBU's total liabilities, according to the bank's local GAAP accounts. VTBU's ratings are: Long-term foreign currency Issuer Default Rating 'B', Long-term local currency IDR 'B+', Short-term foreign currency IDR 'B', Individual Rating 'E', Support Rating '4' and National Rating 'AAA'(ukr)'. The Long-term IDRs and the National Rating have Stable Outlooks. VTBU is a medium-sized Ukrainian bank, ranked eighth by assets in the country at end-2010. The bank's IDRs and National Rating reflect the support it may receive if needed from its majority shareholder, JSC VTB Bank ('BBB'/Stable), which holds a stake of more than 99% in VTBU. =========================== U N I T E D K I N G D O M =========================== CROWN CURRENCY: Police Raid French Properties in Collapse Probe --------------------------------------------------------------- Jonathan Russell at Telegraph reports that police investigating the collapse of Crown Currency have raided properties in France connected to its founder Peter Benstead. Telegraph relates that the raids, conducted with French authorities, came as police in the UK made a further arrest connected to the administration of the group. Devon and Cornwall Police Economic Crime investigators said they had arrested a 66- year-old man in Cornwall, according to Telegraph. Tuesday's arrest is the ninth since Crown Currency and gold broker Mayfair & Grant went into administration last year, Telegraph notes. The long-running investigation into Crown Currency's collapse now covers two companies and two countries all connected to Peter Benstead, Telegraph says. The raid in France is understood to be centered on Mr. Benstead's French home, Telegraph states. The Devon and Cornwall Police Economic Crime Department is understood to be working alongside French authorities on the raid on a property belonging to Mr. Benstead in the Bergerac region of France. No arrests were made, according to Telegraph. Crown Currency went into administration last year owing GBP16 million to thousands of customers who had entrusted the company with their money, Telegraph recounts. According to Telegraph, about 8,000 people who were owed a total of GBP16 million came forward as creditors although company accounts suggested total sums owed could be as much as GBP20 million. The money had been entrusted to Crown Currency to pay for holidays and homes abroad, Telegraph discloses. Telegraph says administrators are currently working to discover how much can be recovered and distributed to customers. Crown Currency is currency exchange group. LICK UK: Creditors Set to Send Lick UK, Top Copy Into Liquidation ----------------------------------------------------------------- Helen Morris at PrintWeek reports that Lick Digital and Top Copy Image Centres are both headed for liquidation after meetings of creditors were announced for the two subsidiaries of Leeds-based Lick Group, which is understood to be unaffected by the move. PrintWeek relates that meetings of creditors have been set for Top Copy and Lick Digital, to be held at 10:30 a.m. and 11:30 a.m., respectively, on March 29, 2011, at the offices of Sheffield-based firm The P&A Partnership. Insolvency practitioners Gareth Rusling and John Russell of The P&A Partnership are expected to be appointed. "Lick Digital and Top Copy are being liquidated. It is business as usual for Lick Group," PrintWeek quotes Andrew Brown, operations director at Lick Group, as saying. "Obviously none of us are happy about it. Difficult economic conditions have forced us into this." Top Copy announced that it was set to enter into insolvency proceedings earlier this month, with Unite claiming that 11 staff had been made redundant, according to PrintWeek. Lick UK, which traded as Lick Group, went into administration on April 7, 2010. Insolvency practitioner BWC Business Solutions was appointed as administrator. Lick UK is a direct mail company. The group also includes Lick Online, Lick Direct and Lick Agency. According to PrintWeek's 2009 top 500, Lick UK had a turnover of GBP3.7 million and employed 72 staff. RETALLACK LETTINGS: Goes Into Administration -------------------------------------------- Attractions Management reports that Retallack Lettings has gone into administration. Attractions Management relates that Simon Edward Jex Girling and Tony Nygate of BDO have been appointed joint administrators of the company. Retallack Lettings is the owner of the GBP25-million Retallack Resort and Spa in Winnards Perch, St Columb Major, Cornwall, UK. SAPPHIRE RETAIL: Shopping Center Portfolio Bought for GBP145MM -------------------------------------------------------------- Property EU reports that European Property Investors Special Opportunities (EPISO), a fund co-advised by AEW Europe and Tristan Capital Partners, has partnered with Addington Capital to complete the purchase of the Sapphire Retail Portfolio in the UK for GBP145 million (EUR167 million), representing a net initial yield of 7.75%. The portfolio comprises three regional shopping centers; Charter Walk, Burnley, Queens Arcade, Cardiff and the Harvey Centre, Harlow. Property EU discloses. The current net income from the portfolio is approximately GBP12 million per annum, Property EU says. The centers were put into administration in August last year by a syndicate of Banks led by LBG, Property EU recounts. Grant Thornton was appointed as administrators and London & Associated Properties as asset manager, Property EU relates. Addington Capital will be retained as asset manager of the portfolio, overseeing the property and facility management and driving the lease up of the centers, Property EU states. Addington & Episo were advised by King Sturge, the administrators were advised by Franc Warwick, Property EU notes. Sapphire Retail Fund is a Stratford-upon-Avon-based real estate investment firm. TARGETFOLLOW PROPERTY: Almacantar Buys Center Point Tower --------------------------------------------------------- Property EU reports that Almacantar has exchanged contracts to buy the 33-storey Centre Point tower in London's West End for around GBP120 million (EUR138 million), which is owned by two collapsed subsidiaries of Targetfollow. Property EU relates that Almacantar has been in talks with administrators Deloitte since late last year for the acquisition of the asset. It is understood that the acquisition was financed using a small amount of debt provided by German bank Eurohypo, Property EU notes. According to Property EU, the deal raises the total sales sum of Targetfollow assets to over GBP250 million. Lloyds Banking Group is the main creditor of the two key Targetfollow subsidiaries, Targetfollow Property Holdings and Targetfollow Property Investment and Development, which went into administration in late 2010, Property EU discloses. Deloitte was appointed in October 2010 as the administrator to the two subsidiaries, Property EU recounts. Targetfollow Property Holdings is a property developer based in the United Kingdom. WEST RESIDENTIAL: Goes Into Administration After Funding Bid Fails ------------------------------------------------------------------ Andrew Argo at The Courier reports that West Residential has gone into administration after failing to raise cash to help it through the recession. The company ceased trading in January and held discussions with its bank regarding continued support during the difficult trading conditions affecting the construction industry, The Courier recounts. According to The Courier, company director Barry Galloway said they had made strenuous efforts "to secure continued and ongoing support to allow the company to continue." "These efforts have proved unsuccessful, and accordingly the decision has been taken to place the company into administration with immediate effect. Despite trying our best we have to be philosophical in the current climate which does not show any signs of improvement," The Courier quotes Mr. Galloway as saying. West Residential is a Dundee-based building company. =============== X X X X X X X X =============== * BOOK REVIEW: THE HEROIC ENTERPRISE - Business and the Common -------------------------------------------------------------- Good by John Hood. Beard Books, Washington, D.C. 2004 (reprint of book published by The Free Press/Division of Simon and Schuster in 1996). 246+xx pages. $34.95 trade paper, ISBN 1-58798-246-3. Mr. Hood writes as a counterbalance to ideas that business should be expected to contribute to the common good along the lines of charities, say, or public health. He writes too against the highly partisan, pernicious perspective that business activity is antisocial and disruptive which at times gains some degree of credibility. Critiques of business have been around as long as commerce and business have been around. These come usually from religious or political zealots seeking dictatorial hold over all significant kinds of human activity and enterprise. In this work, Hood aims to counterbalance latter-day versions of such critiques arising in American society. The counterculture, antiestablishment 1960s was a time when such critiques were particularly strong. They have moderated since, yet remain a persistent chorus which influences politics and imagery and public affairs of business. Mr. Hood does not aim to stifle or eliminate debate about the effects of business on society or how business should engage in business. What he aims for is dismissing once and for all myopic and almost utopian conceptions about business and related erroneous purposes and values of it. Such conceptions are worrisome to businesspersons not because they believe they have any foundation, but because they waste resources and energy in having to continually correct them so business can function properly. And to the extent such myopic conceptions are believed or entertained by the public, they hamper the public and politicians in working out policies by which the greatest benefits of business can be reaped by society. The author clarifies the place and role of business by contrasting business with other parts of society. A standard, self-evident tenet of sociologists going back to the time of Plato is that society is made up of different parts fulfilling different roles for the varied needs of society and so that a society will function smoothly and survive. Business is distinguished from government and philanthropy. "Businesses exist to make and sell things," whereas by contrast "governments exist to take and protect things [and] charities exist to give things away." The social responsibility for each category of institution is inherent in its purposes and activities. For example, businesses alone cannot solve environmental problems. Whatever problems which can be attached to business are related to government policies and business's operations to satisfy consumer interests. Hence, business alone cannot solve environmental problems, and should not be expected to. Critics requiring that business solve environmental problems without similarly requiring changes in government policies and consumer interests are shortsightedly and unreasonably tarnishing business while not making any relevant or productive arguments for dealing with environmental problems. In elucidating business's proper place in and contributions to society, Hood is not unmindful that some businesses fail to fulfill their role in good faith and beneficially. But instead of criticizing business fundamentally, he proffers questions critics can ask before targeting particular businesses. Two of these are "Are corporations obtaining their profits through force or fraud?", and "Are corporations putting investments at their disposal to the most economically productive use?" Mr. Hood's perspective in support of business against unfair and irrelevant criticisms is based on the acknowledgment that business is operating productively, for the common good, and is open to cooperative activities with other parts of society in trying to resolve common problems. "The Heroic Enterprise" is not an argument for business -- for as a fundamental aspect of any society, business does not need an argument to justify it. The book mostly takes the approach of reviewing why business is necessary and therefore must be naturally, easily accepted -- namely, because of the manifold benefits business provides for society and because it along with good government and respectable morals has been a primary engine for the betterment of human life. John Hood has much experience in the media and communication as a syndicated columnist, TV commentator, and radio host. Author of three books and many articles for national publications such as the Wall Street Journal, he is President and Chairman of the John Locke Foundation in North Carolina. ********* 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 * * *