/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/110908.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 Thursday, September 8, 2011, Vol. 12, No. 178 Headlines C Z E C H R E P U B L I C SAZKA AS: 15 Firms Seek Basic Information Related to Sale F R A N C E RHODIA SA: Moody's Withdraws 'Ba3' Long-term Corp. Family Rating G E R M A N Y LANTIQ DEUTSCHLAND: Moody's Cuts CFR to 'B3'; Outlook Negative * GERMANY: Business Insolvencies Down 8.4% to 2,520 in June 2011 I C E L A N D * ICELAND: Ex-PM's Trial Over 2008 Bank Crisis May Face Hurdles I R E L A N D QUINN INSURANCE: Sale to Liberty Mutual Gets EU Green Light RAY GREHAN: No Incentive to Repay NAMA Debts RMF EURO: S&P Raises Rating on Class V Notes to 'BB (sf)' N E T H E R L A N D S ABN AMRO: S&P Raises Junior Subordinated Debt Ratings to 'BB+' CAIRN CLO: S&P Affirms Rating on Class E Notes at 'CCC- (sf)' P O L A N D ZLOMREX SA: S&P Raises Long-Term Corp. Credit Rating to 'CCC+' R O M A N I A CITY MALL: Liquidator Expects to Find Buyer by Year-End R U S S I A ER-TELECOM HOLDING: Moody's Assigns 'B3' Corporate Family Rating S W E D E N SAAB AUTOMOBILE: Files for Creditor Protection to Raise Funds U N I T E D K I N G D O M BROWNE SMITH: Goes Into Administration Over Reduced Turnover DRAGON RESCUE: Goes Into Liquidation HEX HOLDINGS: Goes Into Administration, 20 Jobs at Risk NOVAE GROUP: Moody's Affirms 'Ba1' Subordinated Debt Rating PLYMOUTH ARGYLE: Heaney Denies Takeover Deal Collapse SAVEKER: Former CEO Gets Offer to Buy Back Business VON ESSEN: Administrators Get 19 Offers for Hotels * UK: Banks Call on Global Regulators to Revise Wind-Up Plans * UK: More Retailers to Fall Into Administration, BRC Reveals X X X X X X X X * Upcoming Meetings, Conferences and Seminars ********* =========================== C Z E C H R E P U B L I C =========================== SAZKA AS: 15 Firms Seek Basic Information Related to Sale --------------------------------------------------------- Lenka Ponikelska at Bloomberg News reports that the administrator for Sazka AS received requests from 15 firms for basic information about the company. According to Bloomberg, Lenka Ticha, a spokeswoman for administrator Josef Cupka, said that the companies have until Sept. 9 to take part in a sale. Ms. Ticha, as cited by Bloomberg, said that the bidders will have until Sept. 23 to file offers. As reported by the Troubled Company Reporter-Europe on Aug. 24, 2011, Bloomberg News related that the Prague Municipal Court, which placed Sazka in bankruptcy in May, approved the terms for the company's tender proposed by its administrator and the creditors' committee. The terms include a CZK500 million (US$29.35 million) deposit from each bidder before doing due diligence on the company, Bloomberg disclosed. The price offered by bidders will be the main criterion for choosing the new owner, Bloomberg noted. The administrator, as cited by Bloomberg, said that the rules of the tender also include a fine of CZK1.5 billion if the winner fails to get an approval of anti- monopoly bodies to take over Sazka. Sazka AS is a provider of lotteries and sport betting games in the Czech Republic. =========== F R A N C E =========== RHODIA SA: Moody's Withdraws 'Ba3' Long-term Corp. Family Rating ---------------------------------------------------------------- Moody's Investors Service has downgraded its senior unsecured ratings on Solvay S.A. and its guaranteed subsidiaries to Baa1/P- 2, and the rating on the preferred stock issued by Solvay Finance SA to Baa3. At the same time, Moody's upgraded the ratings of the senior notes and convertible notes of Rhodia S.A. to Baa2. The corporate family rating of Rhodia SA was withdrawn. Moody's expects that following the successful closing of the takeover bid by Solvay SA for Rhodia SA on August 24, 2011, Rhodia SA shares will be delisted and the company will become over time a 100% subsidiary of Solvay. The outlook on all the ratings is negative. These rating actions conclude the review of Solvay's and Rhodia's ratings initiated by Moody's on April 4, 2011. The transaction entails c. EUR3.4 billion cash payment that Solvay will fund from the accumulated cash proceeds from the earlier disposal of its pharmaceuticals business. The transaction also includes the offer to purchase EUR595 million 2014 convertible notes issued by Rhodia S.A, which Moody's also expects to be funded from Solvay's cash balances. These ratings are affected by this announcement: Solvay S.A. Senior Unsecured (domestic currency) ratings of Baa1 Senior Unsecured MTN (domestic currency) ratings of (P)Baa1 Solvay Finance (America) Inc. BACKED Senior Unsecured MTN (foreign currency) ratings of (P)Baa1 BACKED Commercial Paper (domestic currency) ratings of P-2 Solvay Finance B.V. BACKED Senior Unsecured MTN (domestic currency) ratings of (P)Baa1 Solvay Finance S.A. BACKED Pref. Stock (domestic currency) ratings of Baa3 Rhodia S.A. Long-Term Corporate Family Ratings of Ba3 was withdrawn Probability of Default rating of Ba3 was withdrawn Senior Unsecured (domestic currency) ratings of Baa2; Senior Unsecured (foreign currency) ratings of Baa2; RATINGS RATIONALE The downgrade of Solvay's ratings by one notch to Baa1 follows the re-investment of the capital proceeds from the sale in 2010 of the high-margin and relatively stable pharmaceutical operations into a relatively levered chemicals business with weaker profitability characteristics. The transaction allowed Solvay to double in size with PF 2Q 2011 revenues reaching c. EUR13.4 billion and also boosted product and geographical diversification of its chemicals operations. The enlarged group enjoys leading global market positions in several segments, including base and intermediate chemicals (soda ash, hydrogen peroxide, polyamide, vinyls), as well as specialty products (such as advanced materials, specialty polymers and consumer chemicals). Moody's expects that following closing of the transaction, Solvay's immediate focus will shift to the execution of the integration plan, as well as further efficiency improvements (its Horizon program is expected to yield c. EUR120 million in savings by the end of 2012), while integration may offer further operating and financial synergies in the medium term. The rating also takes into consideration the high historical volatility in earnings displayed by both Solvay (in its chemicals and plastics divisions) and Rhodia, compared to Baa1-rated peers. The acquisition creates a broader platform for investment-led organic growth. From 2012, additional volumes and expected improvement in profitability should support stronger operating cash flow generation. While growth is underpinned by a program of sizable investment in the next several years, Moody's expects Solvay to retain its flexibility in managing the CAPEX commitments and maintain a strong credit profile during the expansion. Taking into account expected changes in Solvay's senior management team in 2013, Moody's is mindful of potential changes in the financial policies in the future. The Baa1 rating is supported by Solvay's track-record of conservative balance sheet and risk management, that if maintained would limit the potential effects of any such changes. Following the acquisition, Solvay will increase its level of liabilities, reflecting a higher leverage of the target company (incl. pension liabilities). The rating requires a sustained improvement in profitability and conservative management of debt levels to allow solid debt coverage metrics with (RCF- CAPEX) / Debt trending in high single digits in the next 12 months and a strong FCF/Debt coverage through the cycle. Following the acquisition, the company will have significant cash balances that should offer additional flexibility in managing its liabilities and with respect to the implementation of its growth initiatives. Structural Considerations The upgrade of the ratings on Rhodia's bonds reflects, in part, the improvement in the credit profile of Rhodia supported by the expected reduction in debt (through the repayment of its convertible notes), as well as the assumption of a high degree of integration of the two businesses going forward. As Solvay SA offers no guarantee for Rhodia's bonds, the ratings on the remaining Rhodia bonds reflect a degree of structural subordination compared to other liabilities of the enlarged group; Rhodia's notes are supported by the assets and cash flows of Rhodia in the first instance. The upgrade of the bond ratings by four notches reflects Moody's view that Solvay will have a strong economic interest in supporting Rhodia's obligations as Rhodia is expected to represent around half of the group's assets, cash flows and revenues. Moody's will regularly check that these assumptions are correct to ensure that the one notch difference between the ratings of Solvay's unsecured bonds (Baa1) and Rhodia's unsecured bonds (Baa2) remains justified. Moody's notes that it is only able to maintain the ratings on Rhodia's notes as long as the company continues to provide audited financial and operating reports, sufficient to monitor the assets and operating performance of the issuer. Rhodia's indentures include the requirement for the provision of such information. Should the company stop providing audited information, Moody's would have to withdraw the ratings on Rhodia's notes. Rating Outlook The negative outlook reflects Moody's assessment of risks associated with the on-going investment-led expansion and achieving the targeted improvement in profitability, with target average EBITDA margins trending to 18% through the cycle. Stabilizing the outlook will require a proactive management of investment plans and debt levels to ensure a strong credit profile through the cycle. Liquidity Solvay maintains a strong liquidity position. At the end of 2Q 2011, Solvay reported EUR5.3 billion in cash and cash-like balances that will fund the anticipated EUR3.4 billion payment for the acquisition and the pre-payment of Rhodia's 2014 0.5% EUR595 million convertible notes. (While Rhodia reported EUR0.9 billion in cash balances at the end of 2Q 2011). Solvay also enjoys access to c. EUR1 billion in committed bank facilities (undrawn), as well as to additional bi-lateral credit facilities. Solvay has limited maturities in the next 12-18 months, including Rhodia's 2013 floating rate senior notes (of which only c. EUR229 million remains outstanding) and c. EUR227 million of Rhodia's bank facilities. The principal methodology used in rating Rhodia S.A. and Solvay S.A. is the Global Chemical Industry methodology published in December 2009. Rhodia S.A., headquartered in Paris, France, is a diversified chemicals company with leading market positions in chemical intermediates and engineering plastics, as well as in other applications across the chemicals value chain. For the fiscal year ended December 31, 2010, the company generated consolidated revenues of EUR5.226 million and reported a recurring EBITDA of EUR905 million (EUR4.031 million and EUR 487 million for the fiscal year ended December 31, 2009). Based in Brussels, Solvay S.A. is an international chemicals group. Following the disposal of its pharmaceuticals business in the beginning of 2010, the group has focused on its chemicals and plastics portfolio. The group enjoys leading global market positions in several segments (such as soda ash, hydrogen peroxide and electrochemistry products, as well as vinyls and some specialty polymers). For the fiscal year ended December 31, 2010, Solvay reported consolidated sales of EUR7,109 million and recurring EBITDA of EUR1,051 million. Moody's last rating actions on Solvay S.A. and Rhodia S.A. were on 4 April 2011, when the rating agency placed all ratings of Solvay S.A. and its subsidiaries under review for downgrade following the announcement of its takeover bid for Rhodia S.A. and placed all ratings of Rhodia S.A. on review for upgrade. ============= G E R M A N Y ============= LANTIQ DEUTSCHLAND: Moody's Cuts CFR to 'B3'; Outlook Negative -------------------------------------------------------------- Moody's Investors Service downgraded to B3 from B2 the Corporate Family Rating (CFR), to Caa2 from B3 the Probability of Default Rating (PDR), and to B3 from B2 the bank loan rating of Lantiq Deutschland GmbH (Lantiq). The outlook for the ratings is negative. Ratings Rationale The rating action was triggered by Lantiq's recent operating trends in which revenues and cash flows developed substantially below budget and below Moody's expectations for the rating. This resulted in cash balances at June 30, 2011, at less than half of budget as well as of short term debt and tight covenants on the main, quarterly amortizing credit facility. For alternate liquidity sources, Lantiq relies on the continued support of the owners, a private investment entity managed by Golden Gate Capital. Issuer: Lantiq Deutschland GmbH Downgrades: -- Corporate Family Rating, Downgraded to B3 from B2 -- Probability of Default Rating, Downgraded to Caa2 from B3 -- Senior Secured Bank Credit Facility, Downgraded to B3 from B2; LGD changed to 24% - LGD2 from 32% - LGD3 In the first nine months of its fiscal year ending September 30, 2011, revenues came in 11% and EBITDA more than 20% below the initial budget, with a markedly faster deceleration in the latter part of the period. Given relatively weak demand currently, management expects no material turnaround in revenues until a new range of communication products is introduced in first quarter 2012. While Lantiq has achieved a slightly positive free cash flow in fiscal Q3, 2011, this did benefit from strong collection of receivables and an increase in provisions from June 2011, which may not be repeated. Moody's understands that the company that owns the shares of Lantiq does have available sizable liquid funds to support Lantiq's business plan on which funds the company will likely rely in the coming months. However, there is no guarantee or legal obligation to do so. At the same time, tightening covenants may necessitate amendments to the terms of its US$190 million term loan and USD 20 million revolving credit facility. Moody's sees an increased probability that such amendments may constitute a default under Moody's definitions, though with only modest loss to lenders, and thus has lowered the PDR by two notches to Caa2. The negative outlook for the ratings reflects the low visibility of Lantiq's revenues currently and uncertainty about the scope and credit impact should Lantiq revise its financial strategy. A further rating downgrade is possible if business volumes are seen to continue on a declining trend and negative cash flows to accumulate with weakening comfort in shareholder and lender support. Moody's may upgrade Lantiq's ratings if and when the company is on track towards achieving positive operating profitability as well as material free cash flow with a robust liquidity profile. The principal methodology used in rating Lantiq Deutschland GmbH was the Global Semiconductor Industry Methodology published in November 2009. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Lantiq Deutschland GmbH, headquartered in Neubiberg (Munich, Germany), is a leading designer of communications semiconductors deployed by major carriers in traditional voice and broadband access networks around the world. Headquartered in Neubiberg (Munich, Germany), Lantiq generated around US$339 million in the first nine months of its fiscal year ending September 30, 2011. * GERMANY: Business Insolvencies Down 8.4% to 2,520 in June 2011 ---------------------------------------------------------------- According to RTTNews, the Federal Statistical Office on Wednesday said that German insolvency courts recorded a total of 2,520 business insolvencies in June, 8.4% less than the same month last year. The total number of insolvencies fell 10.7% year-on-year to 12,839, while insolvencies of consumers increased 12.1% to 8,176, RTT says. During the January to June period, 80,315 insolvencies were registered, representing an annual decline of 5%, RTT discloses. RTT notes that while corporate insolvencies fell 7.4% during the period, consumer insolvencies decreased 3.9%. ============= I C E L A N D ============= * ICELAND: Ex-PM's Trial Over 2008 Bank Crisis May Face Hurdles --------------------------------------------------------------- Omar R. Valdimarsson at Bloomberg News reports that Iceland's trial of former Prime Minister Geir H. Haarde for his role in the island's 2008 bank crisis may face hurdles as policies he backed have since proved key in propelling the nation's economic resurrection. Mr. Haarde in September last year became the first political leader to be indicted for mismanagement of economic affairs during the financial crisis, Bloomberg discloses. Since then, Iceland's economy has shown signs of recovering faster than the average for the 17-member euro area with a smaller public deficit, in part because of measures supported by Mr. Haarde before he was forced to step down in 2009, Bloomberg says. According to Bloomberg, the Haarde government's decision to impose emergency legislation at the end of 2008 allowed it to save domestic bank assets and impose capital controls in an effort to protect the currency. Nobel Laureate Paul Krugman, as cited by Bloomberg, said that the island, which completed a 33-month International Monetary Fund program last month, wouldn't have recovered as fast had it not been for policy makers' crisis- management. "It's clear that Haarde gets the credit for Iceland's emergency legislation," Bloomberg quotes Omar Kristmundsson, a professor in political science at the University of Iceland, as saying in a phone interview. "Most people agree that this indictment is completely ridiculous." Mr. Haarde said in a Sept. 5 interview in Reykjavik that he expects to be "completely vindicated in this matter." According to Bloomberg, his lawyer, Andri Arnason, this month asked the court to dismiss the case, arguing the charges are "unclear and unreasoned." Prosecutor Sigridur Fridjonsdottir said in an interview that the court can take as long as four weeks to respond, Bloomberg relates. ============= I R E L A N D ============= QUINN INSURANCE: Sale to Liberty Mutual Gets EU Green Light ----------------------------------------------------------- Ann Cahill at Irish Examiner reports that the European Commission has given the go-ahead for the sale of Quinn Insurance to the US insurer, Liberty Mutual Group. According to Irish Examiner, the remaining agreement required is with the Central Bank to finalize the deal. The transfer is set to be completed on Oct. 4 in a deal that promises to save the 1,570 jobs in the Republic and the North to continue to deal with the 275,000 existing insurance policies, Irish Examiner notes. The sale, to a joint venture company formed by the Boston insurance company and Anglo Irish Bank, was precipitated by the collapse of the business empire of Sean Quinn, Irish Examiner recounts. The Quinn family owed EUR2.8 billion to Anglo Irish Bank, which took control of the Quinn Group last April and also the family's EUR500 million property empire, all of which had been mortgaged to the bank, Irish Examiner discloses. About Quinn Insurance Quinn Insurance is owned by Sean Quinn, who was once 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. RAY GREHAN: No Incentive to Repay NAMA Debts -------------------------------------------- Irish Times reports that Ray Grehan, whose property interests have been put into receivership by the National Asset Management Agency, has said there is no incentive for him to stay in Ireland and repay his debts to the State loans agency. Mr. Grehan said NAMA would continue to pursue him for the full EUR650 million in property loans he owes even though the agency has removed his ability to repay his debts, according to Irish TImes. Mr. Grehan, the report notes, was one of a number of contributors to NAMA-land, a program about the workings of the State agency broadcast by RTE's Prime Time. Mr. Grehan said he was looking at his options but that there was no opportunity left for him in Ireland after NAMA appointed receivers to his property assets in Ireland and the UK, Irish Times discloses. "They have taken the opportunity away from me to repay my borrowings. Therefore if I come back in five or six years' time and I create a business in the UK or elsewhere in the world and I create wealth again, they can come after that as well . . . . This is not an opportunity to start again - this is an opportunity to knock our lights out," Irish Times quoted Mr. Grehan as saying. Irish Times discloses that speaking to Prime Time, economist Peter Bacon, the architect of NAMA, said the agency was not an asset or property management company as he had envisaged it but a debt collection agency. The aim of NAMA was to repair the balance sheets of the banks, not to make a profit, he said. NAMA underpaid the banks for EUR72 billion in loans it acquired, Mr. Bacon said, according to the report. Mr. Grehan was a top 20 developer and tried at the tail end of the property boom to boost the market by providing interest-free loans to buyers. RMF EURO: S&P Raises Rating on Class V Notes to 'BB (sf)' --------------------------------------------------------- Standard & Poor's Ratings Services raised its credit ratings on RMF Euro CDO III PLC's class I, III, IV, and V notes. "At the same time, we have affirmed our ratings on the class II notes," S&P related. "The rating actions follow our assessment of the transaction's performance and the application of the relevant criteria for CDO transactions (see 'Related Criteria And Research')," S&P said. "Our analysis indicates that the credit quality of the portfolio has improved, due to a reduction in the percentage of assets in the pool rated 'CCC+' or below and an increase in the weighted- average spread earned on the portfolio. We have also observed an increase in credit enhancement. These factors, in our view, support the higher ratings on the class I, III, IV, and V notes. We have therefore raised our ratings on these notes," S&P stated. "We have affirmed our rating on the class II notes to reflect our view that credit support available to this tranche remains commensurate with the current rating," S&P related. "None of the ratings has been constrained by the application of the largest obligor default test -- a supplemental stress test that we introduced as part of our criteria update -- or by the largest industry default test -- another of our supplemental stress tests (see 'Update To Global Methodologies And Assumptions For Corporate Cash Flow And Synthetic CDOs,' published Sept. 17, 2009)," S&P related. "We have also applied our 2010 counterparty criteria and, in our view, the participants in the transaction are appropriately rated to support our ratings on the notes (see 'Counterparty and Supporting Obligations Methodology and Assumptions,' published Dec. 6, 2010)," S&P stated. RMF Euro CDO III is a cash flow collateralized loan obligation (CLO) transaction that securitizes loans to primarily speculative-grade corporate firms. Ratings List RMF Euro CDO III PLC EUR357 Million Secured Floating-Rate Notes Class Rating To From Ratings Raised I AA+ (sf) AA (sf) III A- (sf) BBB+ (sf) IV BB+ (sf) BB (sf) V BB (sf) B- (sf) Rating Affirmed II A+ (sf) ===================== N E T H E R L A N D S ===================== ABN AMRO: S&P Raises Junior Subordinated Debt Ratings to 'BB+' -------------------------------------------------------------- Standard & Poor's Ratings Services raised its junior subordinated debt ratings to 'BB+' from 'B' on GBP149 million in Upper Tier 2 securities and on a EUR1 billion Tier 1 instrument issued by Dutch bank ABN AMRO Bank N.V. (A/Stable/A-1). Standard & Poor's sees a significantly lower risk of coupon deferral on ABN AMRO's hybrid capital instruments since the bank announced it would pay an interim dividend this year and because of S&P's view of the bank's improving earnings performance. On Aug. 26, 2011, ABN AMRO announced plans to pay a EUR200 million interim dividend this year on its ordinary shares and paid it out on Sept. 1. "The 'BB+' ratings on both instruments now stand five notches below our 'A' long-term issuer credit rating (ICR) and four notches below our stand-alone credit profile (SACP) on ABN AMRO. This reflects our view that the bank's risk of coupon deferral is still higher than for better-performing banks, given the EU's ban on its hybrid coupon payments and the fact that the bank's SACP is still lower than its ICR. According to our criteria, the SACP is the key indicator of potential pressure to defer payments on hybrid securities. The 'BB+' ratings on the securities include one notch for extraordinary government support," S&P stated. Last year, the EC imposed a ban on ABN AMRO's coupon payments up to March 2013 for its Tier 1 and Tier 2 instruments, unless there was a legal obligation to do so. There is such an obligation under the terms of the Tier 1 and Upper Tier 2 issues, where an ordinary share dividend payment on the bank or its holding company would push coupon payments on the issues into the next 12-month period, unless the bank is in breach of regulatory capital ratios. On April 5, 2011, the European Commission made no reference to hybrid capital instruments when it released the outcome of its State Aid investigation into ABN AMRO, with an approbation of the support package, subject to certain conditions, in particular a ban on acquisitions. "However, we understand that while the EC still in principle holds to the ban on hybrid coupon payments up to the 2013 coupon payment dates, it has no opposition to ABN AMRO paying an ordinary dividend if it is a minimum EUR100 million and if it is consistent with the bank's improved financial situation," S&P stated. "ABN AMRO's interim dividend in our view is in line with its already announced general ordinary share dividend. The bank targets a payout of 40% of reported annual profit. ABN AMRO posted a EUR864 million reported profit for first-half 2011," S&P noted. "Despite an improving trend, we consider that ABN AMRO's profitability will remain below that of comparable peers in 2011- 2012. However, we expect that reported net profit should be compatible with the likely payment of some ordinary dividend in 2012. This would reduce the risk of coupon suspension for 2013 under the EC ban. We also see that a coupon suspension as very unlikely because of a breach of regulatory capital ratios. That's because ABN AMRO's ratios are currently high, with the Tier 1 ratio at 13.9% on June 30, 2011. In addition, we expect the bank's capital position to stabilize over the coming two years," S&P added. CAIRN CLO: S&P Affirms Rating on Class E Notes at 'CCC- (sf)' ------------------------------------------------------------- Standard & Poor's Ratings Services lowered and removed from CreditWatch negative its credit ratings on Cairn CLO II B.V.'s class A-1E, A-1S, and A-1R notes. "At the same time, we affirmed our ratings on the class A-2, B, C, D, and E notes," S&P related. "Since our March 2010 review of the transaction, we have observed that the class E overcollateralization test is no longer failing," S&P said. This is mainly due to: A reduction in the amount of defaulted assets; A reduction in the proportion of assets that are rated 'CCC+' to 'CCC-', and a subsequent reduction in the haircut applied to the numerator of the overcollateralization ratio; and The repayment of class A-1R advances. The overcollateralization test is designed to act as a deleveraging/early-amortization mechanism. If any of the rated notes' overcollateralization tests are breached, the issuer will begin using its cash receipts (e.g., its interest and principal proceeds) to redeem the notes sequentially (within each class pari passu and pro rata) until the test is brought back into compliance or the targeted tranches have been redeemed in full. "Accordingly, we have revised our assumption with regard to reinvestments and the use of available principal cash. In our March 2010 analysis, we assumed that the available principal cash was used to amortize the class A-1 notes and that any future principal receipt would not be reinvested. With all the overcollateralization tests in compliance, we have assumed that the currently available principal cash will be reinvested. In this analysis. We also assumed a longer weighted-average maturity for the portfolio, compared with our March 2010 analysis, when we assumed no reinvestment of assets. As a result, we believe that the more senior notes will be outstanding over a longer time period and consequently be more vulnerable to defaults," S&P related. "In our opinion, the ratings on the class A-1E, A-1S, and A-1R notes are no longer commensurate with a 'AAA (sf)' rating. Consequently, we lowered these ratings to 'AA+ (sf)'," S&P noted. "The affirmations of the ratings on the class A-2, B, C, D, and E notes reflect our view that the tranches have adequate credit support to maintain their current ratings," S&P stated. "None of the ratings was affected by either the largest obligor default test or the largest industry default test, two supplemental stress tests we introduced as part of our criteria update (see 'Update To Global Methodologies And Assumptions For Corporate Cash Flow And Synthetic CDOs,' published Sept. 17, 2009)," S&P stated. Ratings List Cairn CLO II B.V. EUR380 Million, GBP13.473 Million Secured Floating-Rate Notes Class Rating To From Ratings Lowered and Removed From CreditWatch Negative A-1E AA+ (sf) AAA (sf)/Watch Neg A-1S AA+ (sf) AAA (sf)/Watch Neg A-1R AA+ (sf) AAA (sf)/Watch Neg Ratings Affirmed A-2 A+ (sf) B BBB+ (sf) C BB+ (sf) D B+ (sf) E CCC- (sf) Rating Unaffected Subordinated NR NR--Not rated. =========== P O L A N D =========== ZLOMREX SA: S&P Raises Long-Term Corp. Credit Rating to 'CCC+' -------------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term corporate credit rating on Poland-based steel maker Zlomrex S.A. to 'CCC+' from 'CCC-'. "At the same time, we raised the short-term corporate credit rating on Zlomrex to 'B' from 'C'. In addition, we revised the outlook to stable from negative," S&P related. "The upgrades reflect our view that Zlomrex's default risk has decreased thanks to improved profitability. The improvement in profitability is a result of supportive conditions in the steel industry, as well as the company's improving liquidity following the completion of the disposal of its distribution activities," S&P stated. "Zlomrex received EUR62 million in proceeds from the disposal of its distribution businesses in the first half of 2011. This is to be followed by deferred installments amounting to EUR21 million until 2013. The disposals have allowed the company to repay its short-term bank debt and improve its liquidity to the extent that we no longer consider it to be in a distressed state," S&P related. "At the moment, we still qualify Zlomrex's liquidity as less than adequate, because we believe that the company still needs to rebuild working capital and re-establish its relationships with Polish banks. In that respect, we view Zlomrex's recent establishment of a new revolving credit facility (RCF), although small, at PLN25 million, as the first step in re-establishing bank support. As of June 30, 2011, Zlomrex reported outstanding debt of PLN535 million (about EUR135 million), most of which is due in 2014," S&P related. "In our view, Zlomrex will be able to meet its financial obligations over the next 12 months, given recent improvements in its liquidity position. We anticipate that free cash flow will be breakeven under our relatively prudent assumption of about PLN90 million EBITDA a year. In addition, we understand that some of the proceeds from the disposals have been set aside to cover the February 2012 interest payment on the senior secured notes. As a result, Zlomrex's next financial hurdle will be the August 2012 interest payment on the notes," S&P stated. "We do not see any upward rating potential given our assessment of the company's vulnerable business and highly leveraged financial risk profile. At the very least, upside would require re-established banking relationships, sustainably stronger credit metrics, and better visibility on Zlomrex's ability to meet the hefty maturities in 2014," S&P related. Downward rating pressure could arise if demand for steel were to weaken substantially in Poland and result in negative free cash flow, or if Zlomrex had difficulty establishing short- and medium-term credit facilities. ============= R O M A N I A ============= CITY MALL: Liquidator Expects to Find Buyer by Year-End ------------------------------------------------------- Mediafax reports that Transilvania Insolvency House, the designated liquidator of Bucharest shopping center City Mall, is confident it will find a buyer for the troubled company by year- end, after several investors have bought the documents to attend direct negotiation proceedings due Sept. 16. In August, Transilvania Insolvency House had to switch liquidation strategy, after five unsuccessful sale attempts, Mediafax recounts. The latest sale price tag was around EUR21 million, according to Mediafax. City Mall went bankrupt in November 2010, after owner Victoria Holding, a unit of Austria's investment fund APN European Retail Trust, was unable to repay the loans taken for its construction, Mediafax discloses. According to the preliminary chart of debts, the three banks that financed the project stand to collect a total RON176 million (over EUR41 million), notes. City Mall has a total surface of 38,000 square meters and a lettable area of 19,000 square meters. =========== R U S S I A =========== ER-TELECOM HOLDING: Moody's Assigns 'B3' Corporate Family Rating ---------------------------------------------------------------- Moody's Investors Service has assigned a B3 corporate family rating (CFR) and probability of default rating to CJSC ER-Telecom Holding. This is the first time that Moody's has rated ER- Telecom. The outlook on the ratings is stable. Ratings Rationale ER-Telecom's ratings are supported by the company's viable business profile and its successful track record of geographic expansion and growth. However, the rating also takes into account the risks associated with the company's currently underfunded ambitious investment program, the strengthening competition in the broadband sector and uncertainties related to the economic environment in view of the exposure to possible future changes in the regulatory environment as the market continues to evolve. ER-Telecom's B3 corporate family rating reflects: (i) the company's modest size compared to its peers; (ii) its weak financial performance projections over the next two years, negatively affected by the active growth underway; (iii) the risks associated with the execution of the company's ambitious capex program which could be accompanied by a prolonged period of lower profitability and reduced cash flow generation as the company pursues increased market share; and (iv) increasing competition from the integrated operators and incumbent providers currently forming part of Rostelecom, and actively developing technologies such as IP-TV and wireless broadband, as well as satellite broadcasting. More positively, the ratings take into account: (i) the company's track record of execution which has seen growth exceed 100% per annum over the past three years; (ii) the company's leading competitive position and strong brand recognition, alongside robust profitability and free cash flow (FCF) generation in all the markets where the company has operated for more than three years; (iii) the company's financial strategy aimed at establishing a longer-term debt capital portfolio matching its investment profile while maintaining debt service coverage headroom; and (iv) the active financial and management support of the company' shareholders, in particular Perm Financial and Industrial Group (PFIG). Moody's expects PFIG to underpin ER- Telecom's financial profile until the completion of the network construction and the achievement of sustainable standalone financial performance. The stable outlook on the ratings reflects Moody's expectation that the company will successfully implement its network construction program while maintaining satisfactory liquidity profile and leading market positions. Negative pressure would develop as a result of: (i) a failure to achieve positive EBITDA margins on a consolidated level in the next 24 months; (ii) a weakening of the company's competitive position in its mature markets; (iii) an increase in leverage beyond currently anticipated levels and liquidity constraints. Any change in the shareholder structure in the context of potentially leading to a change in support would be assessed by the agency for its potential impact on ER-Telecom's business and financial policies. Given the company's intention to continue active debt-funded investments over the next two years, positive pressure on the ratings in the medium term is unlikely. In the longer term, successful completion of the capex program leading to an increase in operational scale and material improvements in the financial metrics, could positively impact the ratings. ER-Telecom is a telecommunications company providing cable --TV, high-speed internet access and fixed-telephony services in Russia. The company's network currently services 5.4 million households in 35 cities with a total population of 24.6 million people and actively constructs networks in 4 cities. ER-telecom accounts for 8.3% of the Russian cable TV and 8.6% of the Russian internet markets in terms of revenue. ER-Telecom is 75.5% owned by the Perm Industrial and Financial group (PFIG), 10% by Baring Vostok Capital Partners (10%), and 14.5% by the management. For the twelve months ended December 31, 2010 the company reported $243 million in revenue and $41 million in EBITDA. Principal Methodolgies The principal methodology used in rating ER-Telecom Holding, CJSC was the Global Cable Television Industry Methodology published in July 2009. =========== S W E D E N =========== SAAB AUTOMOBILE: Files for Creditor Protection to Raise Funds ------------------------------------------------------------- Ola Kinnander at Bloomberg News reports that Saab Automobile, the 64-year-old Swedish automaker that halted production in June, applied for protection from creditors on Wednesday in a bid to raise money to restart operations. According to Bloomberg, Saab said in a statement that the filing was made at the Vaenersborg District Court to shield Saab from a potential bankruptcy petition by its unions. Pending court approval, the reorganization process will last at least three months and can be extended to up to a year, Bloomberg notes. "We have concluded that a voluntary reorganization process will provide us with the necessary time, protection and stabilization of the business," Bloomberg quotes Chief Executive Officer Victor Muller as saying in the statement. Saab, as cited by Bloomberg, said that the company plans to present a restructuring plan to its creditors within three weeks to lower costs and create a "viable, competitive and independent organization". Saab proposed Guy Lofalk as administrator, Bloomberg discloses. The Swedish lawyer oversaw Saab's reorganization under GM in 2009, Bloomberg notes. Bloomberg says the administrator can apply for state guarantees to pay workers and Saab expects wages to be paid shortly after court approval. According to Bloomberg, Darko Davidovic, counsel at the union, which represents about 1,500 Saab workers, said that IF Metall, Saab's biggest union, will hold off on a filing to force the company into bankruptcy. "A reorganization would be much quicker than a bankruptcy process in ensuring that our members get their state salary guarantee," Mr. Davidovic, as cited by Bloomberg, said on Wednesday by phone. "It also gives Saab another chance." Bloomberg notes that Saab on Wednesday said the company is "confident" of securing short-term funding for its reorganization and is currently in negotiations with several parties. The carmaker said that financing to exit reorganization would be provided by agreements with Pang Da Automobile Trade Co. and Zhejiang Youngman Lotus Automobile Co. if they receive approval, Bloomberg relates. Ally Financial Inc., Saab's financing partner in the U.S. and Europe, said it would continue to provide loans to Saab dealers and consumers during the reorganization process, Bloomberg notes. According to Bloomberg, NYSE Euronext said in a statement on Wednesday that trading in Saab owner Swedish Automobile NV's shares was suspended in Amsterdam at the request of the regulator. As reported by the Troubled Company Reporter-Europe on Aug. 29, 2011, Bloomberg News related that Saab delayed paying wages for the third month in a row. Saab was scheduled to pay factory workers on Aug. 25 and administrative employees on Aug. 26, Bloomberg disclosed. The Swedish government's Debt Enforcement Agency started collection proceedings last month at the request of component suppliers with unpaid bills, Bloomberg recounted. Saab Automobile AB is a Swedish car manufacturer owned by Dutch automobile manufacturer Swedish Automobile NV, formerly Spyker Cars NV. =========================== U N I T E D K I N G D O M =========================== BROWNE SMITH: Goes Into Administration Over Reduced Turnover ------------------------------------------------------------ Insider Media reports that Architects' practice Browne Smith Baker has gone into administration after a reduction in turnover caused it to fail. A total of 25 employees including 6 partners lost their jobs in the process, according to the report. Operating from Newcastle, Darlington, Leeds and Hull, the limited liability partnership was behind project management business BSB Project Services, which has also gone into administration, Insider Media relates. Administrators from Grant Thornton in Newcastle have been appointed to the business. A spokesman for the administrators told Insider Media in an interview that there was no prospect of the business being sold and it would try to collect debts and the work in progress before selling the firm's assets. Insider Media notes that Browne Smith Baker failed after delays to a number of projects led to a significant reduction in turnover. Prior to its problems, the report relays that the business had posted turnover approaching GBP4 million, but the reduction in this was such that the business was no longer viable. Headquartered in Leeds, Browne Smith Baker Architects Limited was incorporated on August 31 by the former directors of Browne Smith Baker. It has offices in Yorkshire and the North East. DRAGON RESCUE: Goes Into Liquidation ------------------------------------ RoadTransport.com's Laurie Dealer reports that Dragon Rescue has entered liquidation citing diminishing levels of work and banks withdrawing financial support. Laurie Dealer says Dragon Rescue Chairman Stephen Powell put the company into liquidation on Sept. 1, 2011, with auditor and consultant Deloitte. According to the report, Mr. Powell explained that with levels of work being down and unsupportive banks, he was faced with little choice. Deloitte has confirmed that all Dragon Rescue employees have been made redundant, the report notes. Dragon Rescue is a vehicle recovery company in South Wales. HEX HOLDINGS: Goes Into Administration, 20 Jobs at Risk ------------------------------------------------------- EDP24 News reports that Hex Holdings has gone into administration putting 20 jobs at risk at the firm's Norwich branch. "The cash flow of the company has been tight for the past few years but the recent slow period of trading has made the position unmanageable. . . . Our core business has been bodyshops who are free to choose their supplier of paint refinishing materials and as you are aware, this market has drastically reduced in the past 5 years - this has been a real challenge for Hex," EDP24 News quoted founder Nigel Hecks as saying. Matt Ingram and John Whitfield, partners at corporate restructuring firm MCR were appointed joint administrators of Hex Holdings Ltd. Mr. Ingram said the business was continuing to trade while a buyer was sought, according to EDP24 News. Founded by Nigel and Adena Hecks in 1970, the Leicestershire- based Hex Holdings, which employs 170 staff, was the UK's fourth largest supplier of paint, equipment and panels to the re- finishing industry, with eight branches across the country including one at Whiffler Road, and a GBP20.4 million turnover. NOVAE GROUP: Moody's Affirms 'Ba1' Subordinated Debt Rating ----------------------------------------------------------- Moody's Investors Service affirmed the A2 Insurance Financial Strength Rating (IFSR) of Lloyd's Syndicate 2007 - Novae Syndicates Limited and the Ba1 Novae Group Plc subordinated debt rating, both with a stable outlook. The affirmation reflects both the improving underlying financial fundamentals of Novae's business, notwithstanding the H1 loss and the aggregate financial position of the Central Resources of the Lloyd's of London insurance market (Lloyd's). Ratings Rationale Novae Syndicate 2007 operates in the Lloyd's of London insurance market and is (from 2010 onwards) entirely backed by Novae Group plc. Moody's stated that the A2 IFSR on Syndicate 2007 reflects its franchise as a leading syndicate within its core business areas in the Lloyd's market and its very good business diversification, particularly following the creation of Novae Re in 2009, and the consequent more even split of property and liability business, offset by continued high levels of gross underwriting leverage. Novae Re has been negatively impacted by the Q1 natural catastrophe events, and Novae Group plc in aggregate reported interim 2011 results of a post-tax loss GBP24.9 million (H1 2010: post-tax profit of GBP10.8 million), driven by the H1 catastrophe events (New Zealand and Japanese earthquakes, cyclone Yasi, the Brisbane floods and the US tornadoes), which collectively were estimated to cost Novae US$80.2 million, as at H1 2011. While the net reduction in shareholders' equity during H1 2011 was 11%, Moody's considers Novae well placed to take advantage of the expected premium rate hardening following the H1 losses. As a business operating within Lloyd's, Novae Syndicate 2007 benefits from the Lloyd's franchise and the Central Resources underpinning the limited mutuality of the market. Moody's elaborated that its rating policy for individual syndicate ratings was to evaluate syndicates on a stand-alone basis and then consider the extent of Central Resources, including the Lloyd's Central Fund, to provide enhancement to individual syndicate ratings, with potential access to Central Resources being considered as a positive factor in the ratings. Moody's stated that Lloyd's overall aggregate financial position had been steadily improving since 2001, with Central Resources also steadily improving. Lloyd's on an aggregate, pro-forma basis delivered a good return on average equity of 12% for 2010, on an annually accounted basis, with its 5 year average return on average equity being 22% (both Moody's calculations), although the 2011 results will likely be lower, reflecting the H1 natural catastrophe losses, together with potential losses arising out of the US windstorm season. As at YE 2010, Lloyd's reported an excess of central assets over solvency shortfalls for solvency purposes of GBP2,923 million for the Society (2006: GBP1,801 million), a healthy level in Moody's view. In the same rating action, Moody's affirmed the Ba1 rating on Novae Group plc's GBP100 million subordinated notes due 2017, although as at June 30, 2011 and following debt buybacks, the carrying value on the balance sheet was GBP67.9 million. Moody's said that the Ba1 subordinated debt rating had a stable outlook, reflecting Moody's view of the Group's stand-alone credit quality. While the Lloyd's Central Fund potentially provides support to Lloyd's policyholders, it does not afford the same protection to bondholders and thus the Ba1 debt rating reflects Moody's standard practice for notching European insurance companies. Commenting on what could lead to a future positive rating action, Moody's noted that this would likely be driven by some combination of improvements in Lloyd's overall financial aggregate position and improvements in Novae's underlying business. Specifically, positive rating action could occur if Novae consistently delivers cross-cycle returns on average capital of at least 7%, if reinsurance recoverables remain consistently below 125% of equity and if financial leverage is consistently below 25%. Conversely, Moody's noted that negative rating action would be triggered by a meaningful deterioration in Lloyd's financial position and/or if Novae produces annual returns on capital below 5%, if Novae's leverage exceeds 35% or if gross underwriting leverage exceeds 6x. These ratings were affirmed with a stable outlook: Lloyd's Syndicate 2007: A2 insurance financial strength rating Novae Group Plc: Ba1 subordinated debt rating Novae Syndicate 2007 is a leading Non-Marine orientated syndicate backed 100% by Novae Group plc for the 2011 Year of Account, which operates in the Lloyd's of London insurance market. Moody's most recent rating action on Lloyd's Syndicate 2007, Novae Group plc's principal insurance operation, was on 03 September 2010, when the rating agency affirmed the syndicate's insurance financial strength rating at A2 with a stable outlook and affirmed the Ba1 subordinated debt rating, also with a stable outlook. The principal methodology used in rating Syndicate 2007 was Moody's Global Rating Methodology for Property & Casualty Insurers published in May 2010. PLYMOUTH ARGYLE: Heaney Denies Takeover Deal Collapse ----------------------------------------------------- Edd Moore at Plymouth Herald reports that businessman Kevin Heaney, the man at the centre of a stuttering takeover bid for Plymouth Argyle has denied the deal is facing collapse. The Plymouth Herald relates that concerns over the GBP6 million being sourced by Mr. Heaney have led administrators to re-open dialogue with rival bidders. According to the report, three companies led by the Cornwall- based developer were on Monday ordered by a court to pay up a GBP10,000-plus debt to legal firm Foot Anstey. But Mr. Heaney vowed to appeal, insisting money was not a problem, the Plymouth Herald says. The Plymouth Herald relates Mr. Heaney said only the Football League stood in the way of the Argyle deal and that its board was expected to give the green light on Thursday. "Everything the administrators have asked of us we have done," the report quotes Mr. Heaney as saying. "We have to wait for the Football League. "All I'm trying to do is save Plymouth Argyle Football Club from liquidation." The Herald notes that the proposal would see offshore firm Bishop International Limited, led by Mr. Heaney, clear Argyle's debts in exchange for its land assets, then hand the club itself to acting chairman Peter Ridsdale. But Mr. Ridsdale and lawyer David Hinchliffe are now in ongoing talks with other parties -- and cash concerns are shared by administrators, the report adds. SAVEKER: Former CEO Gets Offer to Buy Back Business --------------------------------------------------- Dani Saveker, the former chief executive of engineering group Savekers, told Insider Media an interview that she was recently offered the opportunity to buy the business back. Ms. Saveker, according to Insider Media, said she would now "continue to monitor" the Birmingham company's progress and would not rule out a deal in the future. Ms. Saveker said that she is wary of entering into any agreement to buy back her former family-owned firm because she has seen similar deals go wrong in the past, according to Insider Media. As reported in the Troubled Company Reporter-Europe on June 8, 2009, Engineering group WTTR Holdings acquired the business and assets of Savekers Limited, established by Thomas Saveker in 1903, from administrators John Kelly and James Martin, of the Birmingham office of business rescue, recovery and restructuring specialists Begbies Traynor, for an undisclosed sum. The GBP4 million firm's failure came as orders plummeted in the wake of troubles in the construction, retail and leisure sectors, all hit hard in the downturn. A total of 20 jobs have been saved out of a workforce of 60 at the time of the collapse but sadly the Saveker ties have finally been severed as none of the family has been retained in the ongoing business. About Savekers Savekers, one of Birmingham's oldest manufacturing companies had a major input into Britain's war effort. The company produced 75 different parts for Spitfire fighter planes, over 280 parts for Lancaster bombers, parts for Sten guns and over a quarter of a million stirrup pumps. The factory survived the war, though not unscathed. Two incendiary bombs fell on the plating shop. One went straight into a vat and the other bounced off a roof beam and then into the vat, both being extinguished by the vat's contents. Another incident saw a high explosive bomb strike close to a sunken air raid shelter in the factory yard but fail to go off. The next night two more were heard to fall nearby and both exploded; fortunately the area had been evacuated and no one was hurt. However, bowed metal window frames facing the crater remained as a reminder until the building was demolished in 1998. VON ESSEN: Administrators Get 19 Offers for Hotels -------------------------------------------------- BBC News reports that von Essen hotel chain's administrators Ernst & Young said it had offers for the firm's 19 hotels, including Cliveden in Berkshire. Bath's Royal Crescent Hotel may be sold, according to BBC News. But others, such as Thornbury Castle near Bristol and Seaham Hall in County Durham, are still up for sale, the report relates. BBC News notes that Chris Day, from Christie and Co, which is acting as agents for the administrators, said the hotels could not be sold together. "It was decided that the route to best value was through a sale on a sub-group and individual basis," BBC News quoted Mr. Day as saying. von Essen hotel chain owns 28 luxury hotels in the UK and France. * * * As reported in the Troubled Company Reporter-Europe on April 25, 2011, BBC News said the holding company of the von Essen hotel chain has appointed accountants Ernst & Young as administrators. SoGlos.com related that von Essen is reported to have debts of more than GBP25 million. SoGlos.com noted that while administrators have been appointed and the portfolio of hotels are expected to be sold off either as a group or as individual properties, the hotels are all expected to continue to trade as usual. "It is business as normal for the hotels and customers of von Essen Hotels can continue to enjoy their stay," The Northern Echo quoted Angela Swarbrick, joint administrator, as saying. * UK: Banks Call on Global Regulators to Revise Wind-Up Plans ------------------------------------------------------------- Jim Brunsden at Bloomberg News reports that U.K. banks are calling on global regulators to revise plans for the orderly closure of failing lenders, saying the proposals wouldn't ensure national regulators work together to handle cross-border crises. The Financial Stability Board's proposals published in July "leave too much scope for some home regulators to potentially act in their own interests rather than in the interests of stability as a whole," Bloomberg quotes Angela Knight, the chief executive officer of the British Bankers' Association, as saying in an e-mailed statement on Wednesday. World leaders at the Group of 20 nations asked the FSB to agree on measures for winding down failing banks avoiding wider repercussions for the financial system, Bloomberg relates. Such resolution processes can lead to either a bank being broken up and its assets sold on or a lender being resurrected with a smaller balance sheet with higher capital ratios, Bloomberg notes. Measures in the FSB paper include requiring banks to draw up so-called living wills indicating how they could be closed in a crisis, and requiring a failed bank's senior bondholders to take losses to cover the costs of shutting down its operations, Bloomberg discloses. * UK: More Retailers to Fall Into Administration, BRC Reveals ------------------------------------------------------------- Jon Whiteaker at Retail Gazette reports Nick Moser, Taylor Wessing head of restructuring & corporate recovery, said that sales figures released by the British Retail Consortium (BRC) prove that a number of U.K. retailers are likely to fall into administration over the next few months. Mr. Moser argued a perfect storm of negative factors could lead to imminent retail closures, according to Retail Gazette. The report notes that BRC data showed like-for-like sales values had reduced by 0.6% last month year-on-year and BDO's High Street Sales Tracker posted revealed August was the worst month for retail for two years. Retail Gazette discloses that rental payments are due again at the end of this month and following a number of high profile insolvencies just before the last 'quarter day', including Habitat, Haldanes and Homeform, Mr. Moser thinks the BRC numbers show yet more retailers are now close to the edge. Retail Gazette notes that though for many there is no other option, insolvency expert for law firm Faegre & Benson Richard Curtin commented ahead of the previous quarter day that retailers should always attempt to negotiate with landlords before the point of no return. Speaking to the Retail Gazette previously, Mr. Curtin did not believe that this forthcoming quarter day would be significant but argued the following rental payment due during the Christmas period could be decisive for many. =============== X X X X X X X X =============== * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Oct. 14, 2011 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Tampa Convention Center, Tampa, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. __, 2011 AMERICAN BANKRUPTCY INSTITUTE International Insolvency Symposium Dublin, Ireland Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 25-27, 2011 TURNAROUND MANAGEMENT ASSOCIATION Hilton San Diego Bayfront, San Diego, CA Contact: http://www.turnaround.org/ Dec. 1-3, 2011 AMERICAN BANKRUPTCY INSTITUTE 23rd Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ April 3-5, 2012 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Grand Hyatt Atlanta, Atlanta, Ga. Contact: http://www.turnaround.org/ Apr. 19-22, 2012 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ July 14-17, 2012 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Ritz-Carlton Amelia Island, Amelia Island, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 2-4, 2012 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ November 1-3, 2012 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Westin Copley Place, Boston, Mass. Contact: http://www.turnaround.org/ Nov. 29 - Dec. 2, 2012 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference JW Marriott Starr Pass Resort & Spa, Tucson, Ariz. Contact: 1-703-739-0800; http://www.abiworld.org/ April 10-12, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference JW Marriott Chicago, Chicago, Ill. Contact: http://www.turnaround.org/ October 3-5, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Wardman Park, Washington, D.C. Contact: http://www.turnaround.org/ ********* 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, 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 * * *