/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/110922.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 22, 2011, Vol. 12, No. 188 Headlines B U L G A R I A ALMA TOURS: Files for Bankruptcy Over EUR3.6-Mil. Debt F I N L A N D ELCOTEQ SE: Subsidiary Files for Bankruptcy Protection F R A N C E BELVEDERE: Nimes Court Places Firm Into Administration L U X E M B O U R G GATE GOURMET: S&P Keeps 'BB' Issue Ratings on Bank Loans N E T H E R L A N D S DIGINOTAR BV: Vasco Unit Files for Bankruptcy in Netherlands R O M A N I A * ROMANIA: Romanians Become Net Creditors of Banks R U S S I A CARCADE LLC: Fitch Assigns 'B+' Long-Term Issuer Defaults Ratings INT'L INVESTMENT: Moody's Confirms Caa1 Currency Deposit Ratings YUKOS OIL: Former Managers Win Partial Victory in EU Court S P A I N CATALUNYACAIXA: Moody's Assigns Rating to Mortgage Covered Bonds SANTANDER EMPRESAS: Fitch Cuts Ratings on Two Note Classes to 'C' S W E D E N SAAB AUTOMOBILE: IF Metall Files Bankruptcy Petition for Firm U N I T E D K I N G D O M ADDERLEY HOUSE: Goes Into Administration, 60++ Jobs at Risk X X X X X X X X * Upcoming Meetings, Conferences and Seminars ********* =============== B U L G A R I A =============== ALMA TOURS: Files for Bankruptcy Over EUR3.6-Mil. Debt ------------------------------------------------------ Novinite.com reports that all companies in the group of Alma Tour, the Bulgarian operator recently involved in a scandal with hundreds of stranded foreign tourists, have filed for bankruptcy. Bulgaria's Commission on Consumer Protection has stated it will launch an investigation of improper handling of business on the part of the company, Novinite.com discloses. Problems with Alma Tour surfaced some ten days ago, when close to 1,000 international tourists, most of them Russians, were stranded at Bulgarian Black Sea airports of Burgas and Varna, Novinite.com recounts. Their flights were cancelled by carrier Bulgaria Air over what it claimed to be EUR3.6 million in debt from Alma Tour, which had booked the tourists' trips, Novinite.com notes. According to information released Tuesday, the biggest creditor of Alma Tour is the Bulgarian Commercial Corporate Bank, with which the company has pledged its assets for EUR13 million, Novinite.com states. Alma Tour has not issued a statement on the filing of bankruptcy, but has stated it is closing down all operations starting today, Novinite.com discloses. According to Novinite.com, offices of the company around the country Tuesday were either closed or did not book reservations due to "financial hardship." ============= F I N L A N D ============= ELCOTEQ SE: Subsidiary Files for Bankruptcy Protection ------------------------------------------------------ Christian Wienberg at Bloomberg News reports that Elcoteq SE said its subsidiary, Elcoteq Network S.A., which has been in charge of the group's material purchases and customer invoicing in Europe, on Tuesday filed for bankruptcy protection. As reported by the Troubled Company Reporter-Europe on Sept. 1, 2011, Elcoteq SE's three Finnish subsidiaries, Elcoteq Finland Oy, Elcoteq Lohja Oy and Elcoteq Design Center Oy, on Aug. 31 filed for bankruptcy due to lack of funding. The parent company Elcoteq SE domiciled in Luxembourg has previously been accepted in the controlled management procedure under Luxembourg laws. About Elcoteq Elcoteq SE -- http://www.elcoteq.com-- Elcoteq provides a wide range of services to original equipment manufacturers (OEM) and to service providers such as operators, retailers and insurance companies. Elcoteq's Electronics Manufacturing Services (EMS) Business Segment provides global supply chain solutions such as Engineering and Manufacturing Services but also technology and component Sourcing, custom Configuration, Testing, Delivery and other product supply related Services. EMS products range from control and security, communications infrastructure and lighting solutions to special purpose mobile devices and home entertainment systems. Elcoteq's After Market Services (AMS) Business Segment provides globally reverse supply chain solutions for its customers consisting of Reverse Logistics, Depot Repair, Refurbishment, Recycling and Salvaging Services as well as AMS specific Engineering and Customer Support Services. AMS products range from mobile phones, tablets, flat panel TV's and set-top boxes to personal navigation and gaming devices. Elcoteq SE is listed on the NASDAQ OMX Helsinki Ltd. =========== F R A N C E =========== BELVEDERE: Nimes Court Places Firm Into Administration ------------------------------------------------------ Chris Mercer at www.just-drinks.com writes that local reports revealed Belvedere has been placed in administration by a commercial court in the French city of Nimes. Local reports said that Belvedere's sister group, winemaker Moncigal, is also in administration, according to www.just- drinks.com If confirmed, the ruling marks a severe turn for Belvedere, which had hoped to renegotiate a bankruptcy protection deal with the court in order to buy time to agree a debt repayment plan with its creditors, www.just-drinks.com notes. Belvedere is a Sobieski vodka maker. Hollywood actor Bruce Willis owns shares in the company. =================== L U X E M B O U R G =================== GATE GOURMET: S&P Keeps 'BB' Issue Ratings on Bank Loans -------------------------------------------------------- Standard & Poor's Ratings Services revised the recovery ratings to '3' from '4' on the senior-lien delayed-draw bank loan and the first-lien bank loan issued by Gate Gourmet Borrower LLC (together with Gate Gourmet Holdings S.C.A., Gate Gourmet; BB/Stable/--). The issue ratings on the loans are unchanged at 'BB'. "After reviewing Gate Gourmet's ability for further drawing under the senior-lien delayed-draw bank loan and the first-lien bank loan, we conclude that no further drawings are permitted. As a result, there is an improvement in the debt coverage leading to a recovery rating of '3' for these instruments, which translates into meaningful recovery of 50%-70% for creditors," S&P stated. "For further details of our corporate credit rationale on Gate Gourmet, including its liquidity position, please refer to the research update titled 'Airline Caterer Gate Gourmet Long-Term Rating Raised to 'BB' On Ongoing Strong Operating Performance; Outlook Stable,' published Sept. 12, 2011, and the full recovery report 'Gate Gourmet Group Recovery Rating Profile,' published Sept. 16, 2011, on Ratings Direct on the Global Credit Portal," S&P added. ===================== N E T H E R L A N D S ===================== DIGINOTAR BV: Vasco Unit Files for Bankruptcy in Netherlands ------------------------------------------------------------ VASCO Data Security International, Inc. disclosed that its subsidiary, DigiNotar B.V., a company organized and existing in The Netherlands, filed a voluntary bankruptcy petition under Article 4 of the Dutch Bankruptcy Act in the Haarlem District Court, The Netherlands, on Sept. 19, 2011, and was declared bankrupt by the Court. The Court appointed a bankruptcy trustee and a bankruptcy judge to manage all affairs of DigiNotar as it proceeds through the bankruptcy process. The Trustee will work under the supervision of the Judge and be responsible for the administration and liquidation of DigiNotar. The Trustee is required to report to the Judge and his reports are expected to be made available to the public and will serve as a source of information to the creditors and other stakeholders. Effective as of the beginning of business, the Trustee has taken over the management of DigiNotar's business activities. "Although we are saddened by this action and the circumstances that necessitated it," said T. Kendall Hunt, VASCO's Chairman and CEO. "We would like to remind our customers and investors that the incident at DigiNotar has no impact on VASCO's core authentication technology. The technological infrastructures of VASCO and DigiNotar remain completely separated, meaning that there is no risk for infection of VASCO's strong authentication business. In addition, we plan to cooperate with the Trustee and the Judge to the fullest extent reasonably practicable to bring the affairs of DigiNotar to an appropriate conclusion for its employees and customers. We also plan to cooperate with the Dutch government in its investigation of the person or persons responsible for the attack on DigiNotar." "We want to emphasize that the bankruptcy filing by DigiNotar, which was primarily a certificate authority, does not involve VASCO's core two-factor authentication business," said Jan Valcke, VASCO's President and COO. "While we do not plan to re- enter the certificate authority business in the near future, we expect that we will be able to integrate the PKI/identity verification technology acquired from DigiNotar into our core authentication platform. As a result, we expect to be able to offer a stronger authentication product line in the coming year to our traditional customers." "We are working to quantify the damages caused by the hacker's intrusion into DigiNotar's system and will provide an estimate of the range of losses as soon as possible," said Cliff Bown, VASCO's Executive Vice President and CFO. "We expect to report the results of the DigiNotar operations, the losses related to the impairment of intangible assets specifically associated with DigiNotar and the estimated costs associated with the closure of DigiNotar either as a discontinued operation in our future financial statements or we will provide proforma information to identify the impact of DigiNotar on our consolidated results. While the losses associated with DigiNotar are expected to be significant, we do not expect, given the manner in which the acquisition of DigiNotar was structured, that the value of all of the intangible assets acquired will be fully impaired. We expect that a significant portion of the value assigned to the intellectual property acquired from DigiNotar to continue to have value as we incorporate the technology into our existing product line." About VASCO VASCO claims to be a leading supplier of strong authentication and e-signature solutions and services specializing in Internet security applications and transactions. VASCO has positioned itself as a global software company for Internet security serving a customer base of approximately 10,000 companies in more than 100 countries, including approximately 1,700 international financial institutions. VASCO's prime markets are the financial sector, enterprise security, e-commerce and e-government. ============= R O M A N I A ============= * ROMANIA: Romanians Become Net Creditors of Banks -------------------------------------------------- Razvan Voican at Ziarul Financiar reports that the slow pace of lending and a higher interest in saving money turned Romanians into net creditors of banks, a position they have kept since last December. The gap between deposits and debts to the banking system amounted to over EUR1 billion at the end of July, Ziarul Financiar says. =========== R U S S I A =========== CARCADE LLC: Fitch Assigns 'B+' Long-Term Issuer Defaults Ratings ----------------------------------------------------------------- Fitch Ratings has assigned Carcade LLC Long-term foreign and local Issuer Default Ratings (IDRs) of 'B+', a Short-term IDR of 'B' and National Long-term rating of 'A-(rus)'. The Outlooks for the Long-term IDRs and National Rating are Stable. Carcade's ratings reflect its liquid lease book, which reasonably mitigates risks from a concentrated and potentially volatile funding base, sound profitability due to adequate underwriting policies and rigorous collection function. The funding flexibility also benefits from potential liquidity support from its Polish parent, Getin Holding (not rated) and more likely (due to the parent's limited operations) from Carcade's sister companies, including Noble Bank SA ('BB'/Stable). On the downside, in addition to concentrated funding, the ratings also reflect narrow franchise and potential margin compression as a result of increasing competition. Carcade operates in a niche of auto leasing, where its target customers are small enterprises. This market has not yet been on the large players' radar, which has allowed Carcade to sustain above average margins and to expand the business. However, the pressure on Carcade's margins is likely to gradually increase as the segment becomes more competitive. The sector is also highly cyclical as it is susceptive to overall economic trends. It substantially declined in 2008-2009 due to the crisis, but has subsequently recovered quickly due to the delayed demand. Despite operating in a volatile environment, Carcade maintains a relatively low cost of risk, at about 0.6% in 2010 and 3.0% in a stressed 2009. The subprime risk profile of lessees is mitigated by a relatively liquid pledge of cars (most are new mid-class vehicles) and the rigorous collection function. The share of 30+ overdue loans declined to a pre-crisis level of 6.6% in H111 from 13.1% at end-2009. The coverage of 30+ overdue by reserves was satisfactory at 73% at end-H111. Funding is concentrated, with three-quarters coming from five banks. The average maturity is one to two years. In Fitch's view, these are potentially volatile, especially in periods of market instability. However, the liquidity risk is mitigated by the relatively short duration of assets and positive liquidity gaps. The company also proved its ability to deleverage in 2008- 2009, when it halved its lease portfolio. Potential funding support from the parent and/or sister companies also adds comfort. Carcade is planning to diversify funding by increasing the number of creditor banks, as well as through the issuance of an amortizing ruble bond. Fitch believes that this should be positive for the company's credit profile. Carcade's capital level is solid, with a debt to equity ratio of 367% at end-H111 (450% deducting the amount used for the acquisition of Kubanbank). Capitalization is planned to be sustained through profit retention. However, given the planned growth, the company's leverage should increase. The internal debt/equity threshold is 6 times, after which the shareholder will consider a new equity injection. The rating actions are as follows: -- Long-term foreign currency IDR: assigned at 'B+'; Stable Outlook -- Long-term local currency IDR: assigned at 'B+'; Stable Outlook -- Short-term IDR: assigned at 'B' -- Long-term National Rating: assigned at 'A-(rus)'; Stable Outlook INT'L INVESTMENT: Moody's Confirms Caa1 Currency Deposit Ratings ---------------------------------------------------------------- Moody's Investors Service has confirmed International Investment Bank's Caa1 long-term local and foreign-currency deposit ratings and placed a negative outlook on these ratings. The bank's E bank financial strength rating (BFSR) is affirmed and carries a stable outlook. This rating announcement concludes Moody's review for downgrade of International Investment Bank's deposit ratings initiated on May 31, 2011. The bank's deposit ratings were under review in light of increased liquidity risk and challenges to the bank's franchise viability following limitations on its deposit-taking activities imposed by the Central Bank of Russia (CBR) in April 2011. Ratings Rationale The confirmation of the deposit ratings reflects International Investment Bank's ability to withstand adverse pressure on its liquidity position in the near-term. Despite a 20% outflow of customer funds during April-July 2011, the bank continues to honor its obligations with liquid assets (cash, correspondent accounts and debt securities), which accounted for 17.5% of its total assets as of 1 August 2011, according to the bank's statutory financial statements. Moreover, the CBR's cap on the increase of deposits from individuals to 1% a month expires on 27 October 2011, according to International Investment Bank's management. After that the bank expects to secure a significant increase of retail deposits, which are its main source of funding, accounting for over 70% of the bank's total liabilities as of August 1, 2011. The negative outlook on the deposit ratings captures still high risks stemming from its weak liquidity position and the uncertain prospects of its franchise. The ratings of the bank will likely be downgraded if its liquidity continues to deteriorate considerably in the short-to- medium term. Conversely, the ratings may benefit from stabilizing liquidity and easing of negative pressure on the bank's franchise viability. Methodologies The methodologies used in this rating were Bank Financial Strength Ratings: Global Methodology published in February 2007, and Incorporation of Joint-Default Analysis into Moody's Bank Ratings: A Refined Methodology published in March 2007. Headquartered in Moscow, Russia, International Investment Bank reported total assets of US$88 million and shareholders' equity of US$33.2 million as of end-H1 2011, according to the bank's non-audited statutory reports. YUKOS OIL: Former Managers Win Partial Victory in EU Court ---------------------------------------------------------- Heather Smith and Henry Meyer at Bloomberg News report that a European court handed a partial victory to former managers of Yukos Oil Co., ruling that Russia had violated the company's rights while rejecting a political motivation behind tax claims that led to its bankruptcy. According to Bloomberg, the European Court of Human Rights said that Russia infringed on the company's property rights with penalties imposed concerning the 2000-2001 tax assessments and left Yukos inadequate time to prepare a case, precluding a fair trail. "The crux of Yukos's case was essentially the speed with which it was required to pay and the speed with which the auction had been carried out," Bloomberg quotes the Strasbourg, France-based court as saying in a statement on its Web site on Tuesday. Yukos's main assets, now owned by state-run OAO Rosneft, were seized and auctioned off by the government in 2004 to settle more than US$30 billion of tax claims, Bloomberg recounts. Yukos owner Mikhail Khodorkovsky, who is in prison serving 13 years for crimes including tax evasion and fraud, maintains the charges were fabricated because he opposed then-President Vladimir Putin, Bloomberg notes. The court, as cited by Bloomberg, said it wasn't prepared to decide on a demand for compensation in excess of US$100 billion by Russia's once-largest oil producer. According to Bloomberg, the same court awarded Mr. Khodorkovsky almost EUR25,000 (US$34,200) in May, saying he was held in "inhuman and degrading conditions." Bloomberg notes that court said Yukos failed to prove the tax case against it was politically motivated. The May 31 ruling on Mr. Khodorkovsky's complaint had also dismissed claims that his arrest on fraud charges was politically driven, saying the accusations required incontestable proof, Bloomberg states. "The ultimate resolution on the damages is yet to come and I think ultimately that that will be resolved in favor of Yukos stakeholders," Bloomberg quotes Bruce Misamore, former chief financial officer of Yukos, as saying on a webcast press conference on Tuesday. The court said that Yukos had asked for EUR81 billion in reparations, Bloomberg notes. About Yukos Oil Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an open joint stock company existing under the laws of the Russian Federation. Yukos is involved in energy industry substantially through its ownership of its various subsidiaries, which own or are otherwise entitled to enjoy certain rights to oil and gas production, refining and marketing assets. The Company filed for Chapter 11 protection on Dec. 14, 2004 (Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed on Feb. 24, 2005, by the Hon. Letitia Z. Clark. A few days later, the Russian Government sold its main production unit Yugansk to a little-known firm Baikalfinansgroup for US$9.35 billion, as payment for US$27.5 billion in tax arrears for 2000-2003. Yugansk eventually was bought by state-owned Rosneft, which is now claiming more than US$12 billion from Yukos. On March 10, 2006, a 14-bank consortium led by Societe Generale filed a bankruptcy suit in the Moscow Arbitration Court in an attempt to recover the remainder of a US$1 billion debt under outstanding loan agreements. The banks, however, sold the claim to Rosneft, prompting the Court to replace them with the state- owned oil company as plaintiff. On April 13, 2006, court-appointed external manager Eduard Rebgun filed a chapter 15 petition in the U.S. Bankruptcy Court for the Southern District of New York (Bankr. S.D.N.Y. Case No. 06-0775), in an attempt to halt the sale of Yukos' 53.7% ownership interest in Lithuanian AB Mazeikiu Nafta. On May 26, 2006, Yukos signed a US$1.49 billion Share Sale and Purchase Agreement with PKN Orlen S.A., Poland's largest oil refiner, for its Mazeikiu ownership stake. The move was made a day after the Manhattan Court lifted an order barring Yukos from selling its controlling stake in the Lithuanian oil refinery. On Aug. 1, 2006, the Hon. Pavel Markov of the Moscow Arbitration Court upheld creditors' vote to liquidate OAO Yukos Oil Co. and declared what was once Russia's biggest oil firm bankrupt. On Nov. 23, 2007, the Russian Trading System and Moscow Interbank Currency Exchange stopped trading Yukos shares after the company formally ceased to exist. Mr. Rebgun completed the company's liquidation process after Russia's Federal Tax Service has entered Yukos' liquidation on the Uniform State Register of Legal Entities. As reported in the Troubled Company Reporter-Europe on Nov. 14, 2007, the Moscow Arbitration Court entered an order closing the liquidation proceedings of OAO Yukos Oil Co., 15 months after it was declared bankrupt on Aug. 1, 2006. ========= S P A I N ========= CATALUNYACAIXA: Moody's Assigns Rating to Mortgage Covered Bonds ---------------------------------------------------------------- Moody's Investors Service has assigned a definitive long-term rating of Baa1 to the following series of mortgage covered bonds issued by CatalunyaCaixa under its covered bond program. Issuer: CatalunyaCaixa, mortgage covered bond program EUR 500M due 03/17/2014, Assigned Baa1. Ratings Rationale The covered bonds constitute direct, unconditional and senior obligations of CatalunyaCaixa and are secured by the issuer's entire mortgage loan pool (excluding securitized loans). The rating takes into account these factors: (1) The credit strength of the issuer (Ba1/NP/D). (2) The structure created by the transaction documents in combination with the legal framework for Spanish covered bonds. (3) The credit quality of the assets securing the payment obligations of the issuer under the covered bonds. The cover assets are residential and commercial mortgages located in Spain. (4) As of June 2011, the over-collateralization level consistent with the Baa1 rating is 23% and the level of over- collateralization is 148%. Moody's has assigned a Timely Payment Indicator (TPI) of "Probable" to the covered bonds. The ratings assigned by Moody's address the expected loss posed to investors. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors. The Baa1 rating assigned to the existing covered bonds is expected to be assigned to all subsequent covered bonds issued by the issuer under this program and any future rating actions are expected to affect all such covered bonds. Should there be any exceptions to this, Moody's will in each case publish details in a separate press release. KEY RATING ASSUMPTIONS/FACTORS Covered bond ratings are determined after applying a two-step process: expected loss analysis and TPI framework analysis. EXPECTED LOSS: Moody's determines a rating based on the expected loss on the bond. The primary model used is Moody's Covered Bond Model (COBOL) which determines expected loss as a function of the issuer's probability of default, measured by its rating of Ba1, and the stressed losses on the cover pool assets following issuer default. As of June 2011, the Cover Pool Losses for this program are 44.3%. This is an estimate of the losses Moody's currently models in the event of issuer default. Cover Pool Losses can be split between Market Risk of 17.7% and Collateral Risk of 26.6%. Market Risk measures losses as a result of refinancing risk and risks related to interest rate and currency mismatches (these losses may also include certain legal risks). Collateral Risk measures losses resulting directly from the credit quality of the assets in the cover pool. Collateral Risk is derived from the Collateral Score which for this program is 39.7%. TPI FRAMEWORK: Moody's assigns a "timely payment indicator" (TPI) which indicates the likelihood that timely payment will be made to covered bondholders following issuer default. The effect of the TPI framework is to limit the covered bond rating to a certain number of notches above the issuer's rating. SENSITIVITY ANALYSIS The robustness of a covered bond rating largely depends on the credit strength of the issuer. The number of notches by which the issuer's rating may be downgraded before the covered bonds are downgraded under the TPI framework is measured by the TPI Leeway. Based on the current TPI of "Probable" the TPI Leeway for this program is two notches, meaning the issuer rating would need to be downgraded to B1 before the covered bonds are downgraded, all other things being equal. A multiple notch downgrade of the covered bonds might occur in certain limited circumstances. Some examples might be (a) a sovereign downgrade negatively affecting both the issuer's senior unsecured rating and the TPI; (b) a multiple notch downgrade of the issuer; or (c) a material reduction of the value of the cover pool. For further details on Cover Pool Losses, Collateral Risk, Market Risk, Collateral Score and TPI Leeway across all covered bond programs rated by Moody's please refer to "Moody's EMEA Covered Bonds Monitoring Overview", published quarterly. These figures are based on the most recent reporting by the issuer and are subject to change over time. The principal methodology used in this rating was Moody's Rating Approach to Covered Bonds, published in March 2010. SANTANDER EMPRESAS: Fitch Cuts Ratings on Two Note Classes to 'C' ----------------------------------------------------------------- Fitch Ratings has downgraded 10 tranches and affirmed all other tranches of Fondo de Titulizacion de Activos Santander Empresas 3 and 4 as follows: Fondo de Titulizacion de Activos Santander Empresas 3 -- Class A2 (ISIN ES0337710018) affirmed at 'A+sf'; Outlook revised to Stable from Positive -- Class A3 (ISIN ES0337710026) affirmed at 'A+sf'; Outlook revised to Stable from Positive -- Class B (ISIN ES0337710034) affirmed at 'Asf'; Outlook Stable -- Class C (ISIN ES0337710042) downgraded to 'BBsf' from 'BBBsf'; Outlook Stable -- Class D (ISIN ES0337710059) downgraded to 'Bsf' from 'BBsf'; Outlook Negative -- Class E (ISIN ES0337710067) downgraded to 'CCsf' from 'CCCsf'; assigned a Recovery Rating (RR) of RR6 -- Class F (ISIN ES0337710075) affirmed at 'Csf'; assigned RR6 Fondo de Titulizacion de Activos Santander Empresas 4 -- Class A1 (ISIN ES0337944005) downgraded to 'BBBsf' from 'Asf'; Outlook Negative -- Class A2 (ISIN ES0337944013) downgraded to 'BBBsf' from 'Asf'; Outlook Negative -- Class A3 (ISIN ES0337944021) downgraded to 'BBBsf' from 'Asf'; Outlook Negative -- Class B (ISIN ES0337944039) downgraded to 'BBsf' from 'BBBsf; Outlook Negative -- Class C (ISIN ES0337944047) downgraded to 'Bsf' from 'BBsf'; Outlook Negative -- Class D (ISIN ES0337944054) downgraded to 'Csf' from 'CCCsf'; assigned RR6 -- Class E (ISIN ES0337944062) downgraded to 'Csf' from 'CCsf'; assigned RR6 -- Class F (ISIN ES0337944070) affirmed at 'Csf'; assigned RR6 The downgrades of Santander 3's class C, D and E notes were prompted by the notes' low levels of credit enhancement (CE) compared to the portfolio concentration at obligor and industry levels, as well as increasing arrears. The Class C, D and E notes' CE currently stand at 16.2%, 8.5% and 3.5%, respectively, and the top 10 obligors comprise 14.3% of the portfolio. 90+ day delinquencies have increased to 3% from 1.1%, year on year. Also, even though defaults have declined to 2% of the outstanding balance they are likely to increase as a result of delinquency migration. The affirmations of the class A2, A3 and B notes reflect sufficient levels of CE for the ratings driven by the deleveraging of the transaction. The current balances of class A2 and A3 notes represent 25% and 30% respectively of the initial balances. The downgrades of the class A1 through E notes of Santander 4 are based on declining performance trend, high level of concentration at both obligor and industry levels and failure to withstand Fitch's stress tests. 90+ day delinquencies have almost doubled year on year and currently represent 6% of the outstanding portfolio balance. In addition, the reserve fund is depleted while the Principal Deficiency Ledger's balance has jumped to EUR32m from EU12m a year ago. Also, portfolio concentration is high with the top ten obligors representing 15% of the portfolio versus 8% at closing. The tranches' Negative Outlooks reflect the transaction's exposures to the delinquency pipeline and increasing portfolios concentration risks. Approximately one third of Santander 3 and 4 portfolios are exposed to the construction and real estate sectors. Fitch has revised an Issuer Report Grade (IRG) for Santander 4 to "Basic" (two stars) to the issuer, based in the provided reports. The reports do not meet several standards for a higher grade including information on portfolio stratification. =========== S W E D E N =========== SAAB AUTOMOBILE: IF Metall Files Bankruptcy Petition for Firm ------------------------------------------------------------- Ola Kinnander at Bloomberg News reports that IF Metall, Saab Automobile's biggest union, on Tuesday petitioned a Swedish district court to put the carmaker into bankruptcy. "It was a painful decision to take, but it's to ensure state coverage of our members' wages," Bloomberg quotes Lars Ankarfjall, a spokesman for the union, as saying. Mr. Ankarfjall, as cited by Bloomberg, said that the union hopes the appeals court grants Saab's request to get protection from creditors, which would secure state payment of salaries while preventing bankruptcy. As reported by the Troubled Company Reporter-Europe on Sept. 16, 2011, Reuters related that that a Swedish court said it would decide in the next few days whether to allow Saab to appeal a ruling denying it protection from creditors, with Saab almost certain to slide into bankruptcy if its case is rejected. "The case will be dealt with as a priority and a decision in the question of the right to appeal will probably be announced in a few days," the Court of Appeal for western Sweden was quoted by Reuters as saying in a statement. Saab wants creditor protection to give it time until a promised investment of EUR245 million from car firms Pangda Automobile Trade Co. Ltd. and Zhejiang Youngman Lotus Automobile gets the nod from Chinese authorities, Reuters noted. 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 =========================== ADDERLEY HOUSE: Goes Into Administration, 60++ Jobs at Risk ----------------------------------------------------------- Spalding Guardian reports that Adderley House Ltd., which runs both Adderley Nursing Home and Adderley Residential Home, have gone into administration putting more than 60 jobs at risk. Adderley House Ltd is seeking a new owner for its business, according to Spalding Guardian. Spalding Guardian notes that Neil Gostelow and Jane Moriarty, of accounting firm KPMG, have been appointed joint administrators for the company, which was run as a subsidiary of Stargate Partnership Ltd. Stargate Partnership Ltd also operates five other care homes in Cambridgeshire, West Sussex, Kent and Surrey. The report notes that although Mr. Gostelow and Ms. Moriarty were appointed on September 6 and 7 respectively, the uncertain future for the homes was only revealed this week. "The companies were affected by the recent economic downturn. . . . The homes provide care for around 150 residents and it is our aim, with the help of a specialist care homes operator, to minimise any disruption to the daily routine while we seek purchasers for the businesses as going concerns. . . . . Should it be necessary to close the homes we will ensure that all necessary parties are contacted and suitable replacement homes are found for the residents," Spalding Guardian quoted Mr. Gostelow, who is also restructuring director at KPMG, as saying. Spalding Guardian discloses that KPMG has confirmed all seven care homes will continue to operate as normal and the entire 200 care home staff have been retained on appointment. The report relates that specialist care home operator Healthcare Management Solutions has been appointed to manage day-to-day operations at the homes. Five staff employed at the Stargate Partnership Ltd head office in Croydon has been made redundant, Spalding Guardian notes. Adderley Residential Home was converted from a private house approximately 30 years ago. It offers long-term accommodation, short breaks, day care and drop-in services with 15 flatlets and 12 bedrooms. =============== 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 * * *