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/raid1/www/Hosts/bankrupt/TCREUR_Public/111006.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, October 6, 2011, Vol. 12, No. 198 Headlines B E L A R U S BELARUSBANK: S&P Lowers Counterparty Credit Ratings to 'B-/C' * BELARUS: S&P Lowers Sovereign Credit Ratings to 'B-/C' B E L G I U M DEXIA SA: To Pool Troubled Assets Into "Bad Bank" E S T O N I A FIJI TRAVEL-ALMA: Declares Insolvency, Can't Fulfill Obligations F R A N C E PERNOD RICARD: S&P Raises Corporate Credit Ratings From 'BB+/B' I R E L A N D ANGLO IRISH: ODCE Sends File on Suspected Failure to DPP I T A L Y CELL THERAPEUTICS: Has US$4.5 Million Net Loss in August N E T H E R L A N D S MARCO POLO: Banks Try to Kick Bankruptcy Out of U.S. Court S W E D E N * SWEDEN: Corporate Failures Down 19% to 394 in September 2011 U N I T E D K I N G D O M DECO 8: Moody's Lowers Rating on GBP361.1M E Notes to 'Caa3 (sf)' DRIVEBUSINESS: Goes Into Administration, Cuts 100 Jobs FOCUS (DIY): Valad Lets Former Stores to B&Q FOUR SEASONS: In Refinancing Talks with Creditors LEHMAN BROTHERS: SIPA Trustee Wants Europe Unit $8BB Claim Denied NEW MCCOWANS: Ceases Trading, Cuts 100++ Jobs at Stenhousemuir PLYMOUTH ARGYLE FC: Administrators Racks Up GBP700,000 in Fees SOUTHERN CROSS: Care Home Jobs 'Safe' Despite Union Fears * UK: 3rd Qtr. Real Estate Bankruptcies Up 11% in England & Wales * UK: Company Voluntary Arrangements in Retail Sector Jump X X X X X X X X * S&P Takes Rating Actions on Six European Synthetic CDOs * Upcoming Meetings, Conferences and Seminars ********* ============= B E L A R U S ============= BELARUSBANK: S&P Lowers Counterparty Credit Ratings to 'B-/C' ------------------------------------------------------------- Standard & Poor's Ratings Services lowered its long- and short- term counterparty credit ratings on four Belarusian banks to 'B- /C' from 'B/B'. The banks are JSC Savings Bank Belarusbank, OJSC Belvnesheconombank, JSC BPS-Bank (BPS), and Belagroprombank JSC (BAPB). "At the same time, we removed the ratings from CreditWatch, where they were placed with negative implications on June 2, 2011," S&P said. The outlook on all four banks is negative. "The rating actions follow a similar rating action on the Republic of Belarus (see 'Ratings On Republic Of Belarus Lowered To 'B-/C' On Funding Access Uncertainty; Outlook Negative,' published on Sept. 26, 2011, on RatingsDirect on the Global Credit Portal). The downgrade of the four banks reflects our view that there is a risk that the sovereign's creditworthiness may deteriorate. In our opinion, the current situation in Belarus may have a negative impact on these banks because of their high operational, funding, and asset exposures to the predominantly state-owned Belarusian economy," S&P stated. "We believe that the Belarusian authorities would be very likely to support systemically important banks and key enterprises. However, the sovereign's ability to provide such support is currently materially constrained by the banks' considerable size and foreign currency-denominated obligations relative to the sovereign's foreign reserves. We believe the current economic situation and a more pronounced downturn could intensify the pressure on the banking system if not offset by an adequate government response. In our view, in the short to medium term, liquidity and credit risks will dominate the risk profile of Belarusian banks, which are under pressure from sizable economic imbalances," S&P related. "Although the banks' retail deposit bases have stabilized after foreign exchange rate movements this year, we expect deposit volatility to remain high in the coming months. This is owing to weakening economic conditions and the related uncertainty of customer sentiment because of high inflation and exchange rate imbalances. Corporate funds still comprise about 70% of the banks' total liabilities and demonstrate some stability, which somewhat mitigates liquidity risk. Domestic banks' corporate liabilities are mainly in state hands, and the state carefully manages them," S&P stated. The four banks' reported overdue loans didn't exceed 5% of total loans as of Sept. 1, 2011. Nevertheless, the level of nonperforming loans may increase substantially over 2011, peaking in early 2012, given the banks' industry and single-name loan concentrations and significant amount of foreign currency- denominated loans, as well as the ongoing economic contraction. About one-third of the banks' loan portfolios is denominated in U.S. dollars and EURos, reflecting corporate borrowers' high demand for the financing of export-import transactions. "In our opinion, deteriorated trading terms and a sharp devaluation of the Belarusian ruble in 2011 have materially reduced these borrowers' debt-service capacity, increasing the credit risk in Belarusian banks' loan books. We believe that sovereign or municipal guarantees, which cover about 35% of the four banks' loan books, do not enhance credit quality in the light of weakening sovereign finances," S&P stated. The long-term ratings on all four banks do not include any uplift for potential extraordinary government or parent support. "This is because we already assess their stand-alone credit profiles at 'b- ', the same level as the sovereign rating," S&P related. Belarusbank, Belvnesheconombank, BPS, and BAPB account for about 75% of the system's assets and retail deposits. "We regard Belarusbank, BAPB, and BPS as having high systemic importance," S&P said. "We consider state-owned Belarusbank and BAPB, the larger of the four, to be government-related entities (GREs). Under our GRE criteria, we consider there to be a 'very high' likelihood of extraordinary support for Belarusbank and BAPB from the Belarusian government in the event of financial distress. We base this on our view of the banks' 'very important' role for the local economy and "very strong" link with the government," S&P stated. "We consider BPS and Belvnesheconombank to be strategically important subsidiaries of Russia-based Sberbank (not rated) and Vnesheconombank (foreign currency BBB/Stable/A-3; local currency BBB+/Stable/A-2) given the parent banks' significant financial and operational support for their Belarusian subsidiaries. These banks, in our view, can access their parents' resources, if needed, and use them to strengthen their liquidity standing. However, we believe that credit risk remains high for all the Belarusian banks we rate, given the deteriorating operating environment," S&P stated. The negative outlook on Belarusbank, Belvnesheconombank, BPS, and BAPB mirrors that on Belarus and reflects the country's low external liquidity, owing to very high current account deficits, which in turn presents risks for Belarus' predominantly state- controlled banking sector and economy. In addition, the banks have sizable exposures to state-related projects and entities. If Belarus were unable to refinance its external liabilities, this may have a significant impact on the ability of these projects and entities to service their debts with the four banks. "Further rating actions on the four banks could result from changes to the foreign currency sovereign credit ratings on Belarus or our transfer and convertibility (T&C) assessment of Belarus (for an explanation of our T&C assessments, see 'Criteria For Determining Transfer And Convertibility Assessments,' published on May 18, 2009). However, the ratings on Belarus and those on Belarusbank, BAPB, BPS, and Belvnesheconombank would not necessarily move in tandem," S&P stated. "A further downgrade of Belarus and a downward revision of our T&C assessment would likely trigger similar rating actions on the four banks. Moreover, if we see a decreased likelihood of timely and sufficient extraordinary government support for BAPB and Belarusbank, or of parental support in the case of BPS and Belvnesheconombank, we might consider lowering the ratings if the stand-alone credit profiles of the individual banks have not improved," S&P stated. "The potential for ratings upside in the near term is low and would be possible only if the stand-alone credit quality and external support probability of the four banks remained unchanged and if we raised the sovereign ratings and T&C assessment on Belarus, which is unlikely in the short term," S&P said. * BELARUS: S&P Lowers Sovereign Credit Ratings to 'B-/C' -------------------------------------------------------- Standard & Poor's Ratings Services lowered its sovereign credit ratings on the Republic of Belarus to 'B-/C' from 'B/B'. The ratings were removed from CreditWatch, where they were placed with negative implications on May 27, 2011. The outlook is negative. The transfer & convertibility (T&C) assessment for Belarus has been changed to 'B-'. The recovery rating on Belarus' senior unsecured debt is unchanged at '4'. "This indicates our expectation of a 30%-50% recovery in the event of a default on Belarus' commercial debt. The estimate draws on a scenario -- not a base case -- of severely negative external financing trends that economic policies cannot offset," S&P said. "The downgrade reflects our concerns over Belarus' ongoing dependence on external funding due to large current account deficits and a very low level of usable reserves. We remain highly uncertain as to Belarus' ability to secure such funding, and we believe the government has made only limited efforts so far to remedy the underlying causes of the external imbalances. This has put significant pressure on the official exchange rate (which we consider overvalued) and has added to economic stress in Belarus. Additionally, following the exchange rate movements this year, the predominantly foreign-currency-denominated government debt burden has increased significantly as a percentage of GDP. We forecast it will almost double to above 40% of GDP by year-end 2011 (excluding guaranteed debt)," S&P stated. The ratings on Belarus are constrained by political risks and external, monetary, and fiscal imbalances arising from expansionary fiscal and monetary policies aimed at supporting domestic demand. The ratings are supported by the country's relatively high GDP per capita for the rating level, its substantial industrial capital stock, and its highly educated workforce. These factors provide the potential for a quick recovery should the government rein in macroeconomic imbalances and pursue microeconomic reforms, supporting private-sector growth. "We expect the current account deficit, which rose to over 15% of GDP last year and moved the central bank to a net foreign liability position, to contract to just over 10% in 2011 and then to single digits in 2012. The government's external debt repayment schedule appears fairly light for the remainder of the year, but is higher in subsequent years," S&P said. "In our base-case scenario, to fund these external outflows in 2011 Belarus will rely primarily on loans from the Eurasian Economic Community (EurAsEC) and Azerbaijan, as well as privatization receipts -- most likely from natural gas infrastructure and transportation company, Beltransgaz, which we expect will be sold in the coming months. A further loan of about $1 billion could come from Russia-based bank, Sberbank, via potash producer Belaruskali, and a similar-sized loan from China. Cross- border bank borrowings may also finance part of the current account deficit. In our base case we are assuming no funding in 2011 from the IMF, as it appears there is not enough agreement on the optimal policy mix in the current environment," S&P said. In 2012 there could be another two tranches from the Eurasian Economic Community Anti Crisis Fund as well as further privatization receipts. A partial sale of Belaruskali is feasible next year along with smaller privatizations and privatization income from the sale of Beltransgaz. On the reform front, Belarus has taken several actions to address its ongoing economic crisis. The central bank has increased interest rates, though these remain negative in real terms. Government-supported lending programs that fueled credit growth are being scaled back dramatically. "On the fiscal side, we expect tightening and a deficit under 1% of GDP, but off-budget spending and a weakening currency will typically result in much higher increases in debt. Also, possible financial-sector recapitalization costs could arise if the economic situation does not stabilize. While these measures help reduce the imbalances, in our view they fail to address the underlying causes of Belarus' external imbalances in particular. There has been little notable progress in liberalizing the economy, privatization is proceeding very slowly, and the private sector remains underdeveloped," S&P said. "Our local-currency rating is equalized with the foreign-currency rating because monetary policy options, which underpin a sovereign's greater flexibility in its own currency, are constrained by Belarus' high inflation and less-developed bond markets. Our T&C assessment is the same as the sovereign foreign- currency rating, reflecting our view that the likelihood of the sovereign restricting access to foreign exchange needed by Belarus-based non-sovereign issuers for debt service is similar to the likelihood of the sovereign defaulting on its foreign currency obligations. With increased external vulnerabilities, the government has earlier this year introduced some foreign exchange restrictions including a ban on restrictions on advance import payments and a foreign exchange transaction tax," S&P related. The negative outlook reflects the likelihood of a downgrade if prospective external funding does not materialize, or is insufficient in the face of further downward exchange rate pressure and economic stress, particularly a significant decline in bank deposits. Success in bolstering net international reserves, which would likely entail reforms to strengthen external competitiveness, could support the ratings at their current level. A policy mix that relieves inflationary pressures, reduces the current account deficit, and starts to stabilize the economy would be consistent with an upgrade. ============= B E L G I U M ============= DEXIA SA: To Pool Troubled Assets Into "Bad Bank" ------------------------------------------------- John Martens and Jim Brunsden at Bloomberg News report that Dexia SA plans to pool its troubled assets into a "bad bank" with Belgian and French government guarantees to protect depositors and its municipal-lending business. According to Bloomberg, Belgian Prime Minister Yves Leterme told reporters in Brussels on Tuesday that the Belgian-French lender bailed out by the two governments in 2008 will put its "legacy" division, which held EUR113 billion (US$150 billion) of assets at the end of June, into the bad bank. Finance Minister Didier Reynders said details of the plan will be released after talks with partners, Bloomberg notes. The creation of a separate entity with government guarantees may help shield Dexia's banking units and avoid a repeat of the 2008 taxpayer-funded capital infusion, Bloomberg states. Belgium and France on Tuesday said that they will take "all necessary measures" to protect clients and will guarantee Dexia's loans. Both governments have stakes in the bank following its 2008 bailout. Mr. Reynders on Tuesday said the guarantees that will be provided now will be "inferior" to the ones granted in 2008, when Belgium's share exceeded EUR90 billion, Bloomberg recounts. According to Bloomberg, he also said that Belgium has "no intention" of chalking up losses, adding that it will collect a fee in return for the guarantees. Dexia paid EUR489 million last year for use of guarantees, Bloomberg says, citing company filings. Dexia's legacy division, which will be folded into the bad bank, has a pool of long-term assets that were put together so they could be financed with earlier debt guarantees, Bloomberg discloses. The division was created to meet European Union demands that earlier debt guarantees not be used to finance its commercial businesses and give investors greater clarity about its capacity to generate profits, Bloomberg relates. At the end of June, the division included EUR95 billion of bonds with an average maturity of almost 13 years and US$9.5 billion of mostly U.S. residential-mortgage backed securities, the majority of which were sold in July, Bloomberg notes. It also had EUR11 billion of municipal loans in countries where Dexia has halted operations, Bloomberg states. Dexia may also transfer an additional EUR50 billion of assets from its municipal-lending units in Italy and Spain into the bad bank, according to Bloomberg. About Dexia SA Dexia SA -- http://www.dexia.com/-- is a Belgian bank specialized in retail banking and local public finance. The Bank offers a range of banking services for individual customers, small and medium-sized enterprises and institutional clients. It has four divisions: Asset Management, Personal Financial Services, Treasury and Financial Markets, and Investor Services. The Asset Management division offers products ranging from traditional and alternative funds to socially responsible investments. The Personal Financial Services segment focuses on banking and insurance products, including both life and non-life insurance products. Through its Treasury and Financial Markets division, Dexia is present in the capital markets and provides support to the entire Group. The Investor Services segment offers various services to shareholders, such as fund and pension administration. Through its subsidiaries, Dexia SA is active in over 30 countries, including Belgium, Luxembourg, Slovakia, Turkey, France, Australia and Japan. ============= E S T O N I A ============= FIJI TRAVEL-ALMA: Declares Insolvency, Can't Fulfill Obligations ---------------------------------------------------------------- ERR News reports that the Consumer Protection Board has yet again received a declaration of insolvency from tour operator Fiji Travel-Alma Group. The report says Fiji admitted on October 4 to its incapacity to fulfill contractual obligations with customers. ERR News relates that the tour operator, which entered the Estonian tourism market in 2006, has around EUR170,000 as a security deposit required by law. The distribution of this amount will be decided in accordance with the Tourism Act, the report notes. Currently 73 customers are scheduled to fly back to Estonia from Turkey on October 9 and four people on October 16. According to the report, Fiji said it will bring the travelers home according to their original flight plan. On June 17, ERR News says, tour operator Estour announced that it was unable to satisfy the 400 claims of its customers and last year the same happened to travel agency Top Tours. =========== F R A N C E =========== PERNOD RICARD: S&P Raises Corporate Credit Ratings From 'BB+/B' --------------------------------------------------------------- Standard & Poor's Ratings Services raised to 'BBB-/A-3' from 'BB+/B' its long- and short-term corporate credit ratings on French spirits producer Pernod Ricard S.A. The outlook is stable. "In a related action, we withdrew the '3' recovery rating on Pernod's unsecured bonds, since our recovery rating methodology does not apply to investment-grade ratings," S&P said. "The upgrade primarily reflects our view of Pernod's progress in reducing its debt leverage, in line with its recently revised financial policy. It also reflects our view that Pernod should be able to successfully refinance its bank facility maturing in 2013 within the next 12 months," S&P related. "The stable outlook reflects our anticipation that Pernod is likely to successfully refinance its sizable 2013 maturities within the next 12 months. It further reflects our view that Pernod will be able to reduce and then maintain an adjusted debt- to-EBITDA ratio of close to 4.0x," S&P stated. "We would consider a downgrade if Pernod exhibits signs of a looser financial policy -- such as an unexpected share buyback program or a largely debt-financed sizable acquisition -- or if Pernod is unable to sustainably deleverage to the level mentioned above, which could occur if sales do not grow at a mid-single- digit rate and if margins decline. Finally, a downgrade would probably occur if Pernod does not successfully address its 2013 maturities within the next 12 months, as this could push liquidity into less than adequate territory," S&P_ said. "We consider that rating upside is remote at this stage," S&P added. ============= I R E L A N D ============= ANGLO IRISH: ODCE Sends File on Suspected Failure to DPP -------------------------------------------------------- Simon Carswell at The Irish Times reports that a file on Anglo Irish Bank's suspected failure to keep a register of directors' loans was sent by the Office of the Director of Corporate Enforcement to the Director of Public Prosecutions last month. This is the third investigation file in the ODCE's case on the bank to be sent to the DPP, The Irish Times notes. According to The Irish Times, Director of Corporate Enforcement Paul Appleby said his office sent a file relating to Anglo's suspected failure to keep the register dating back to the period before the bank's nationalization in 2009. The DPP's decision on the file will follow in due course, Mr. Appleby, as cited by The Irish Times, said in a speech at the Irish Company Secretaries Group. The ODCE is investigating loans provided to former Anglo chairman Sean FitzPatrick and other Anglo directors, The Irish Times discloses. Mr. FitzPatrick resigned from the bank in December 2008 after it emerged he had concealed loans of up to EUR122 million over eight years, The Irish Times recounts. The ODCE sent a file to the DPP in December 2010 regarding directors' loans at Anglo, and another file in March 2011 on its investigation into Anglo's loans to 10 of its customers to allow them buy shares in Anglo in July 2008, The Irish Times discloses. A further file on Anglo's financial statements in 2008 and prior to that year is expected to be sent to the DPP by the end of the year, at which point the ODCE expects its inquiries into Anglo to be complete, or substantially complete, The Irish Times states. Irish Nationwide Merger As reported by the Troubled Company Reporter-Europe on July 1, 2011, BreakingNews.ie related that The European Commission cleared a bailout plan for Anglo Irish Bank and the Irish Nationwide Building Society. BreakingNews.ie disclosed that the proposal, which was submitted for approval in January, provides for the merger of the two troubled institutions and their winding down over the next 10 years. Anglo Irish and Irish Nationwide jointly received EUR34.7 billion in capital injections from the State to cover losses on property loans, BreakingNews.ie noted. Anglo Irish Bank Corp PLC -- http://www.angloirishbank.com/-- operates in three core areas: business lending, treasury and private banking. The Bank's non-retail business is made up of more than 11,000 commercial depositors spanning commercial entities, charities, public sector bodies, pension funds, credit unions and other non-bank financial institutions. The Company's retail deposits comprise demand, notice and fixed term deposit accounts from personal savers with maturities of up to two years. Non-retail deposits are sourced from commercial entities, charities, public sector bodies, pension funds, credit unions and other non-bank financial institutions. In addition, at Sept. 30, 2008, its non-retail deposits included deposits from Irish Life Assurance plc. The Private Bank offers tailored products and solutions for high net worth clients and operates the Bank's lending business in Ireland and the United Kingdom. ========= I T A L Y ========= CELL THERAPEUTICS: Has US$4.5 Million Net Loss in August -------------------------------------------------------- Cell Therapeutics, Inc., provided information pursuant to a request from the Italian securities regulatory authority, CONSOB, pursuant to Article 114, Section 5 of the Unified Financial Act, that the Company issue at the end of each month a press release providing a monthly update of certain information relating to the Company's management and financial situation. The Company estimates a net loss attributable to common shareholders of US$4.58 million on US$0 of revenue for the month ended Aug. 31, 2011, compared with a net loss attributable to common shareholders of US$4.84 million on US$0 of net revenue for the month ended July 31, 2011. A full-text copy of the press release is available for free at http://is.gd/dbppy6 About Cell Therapeutics Headquartered in Seattle, Washington, Cell Therapeutics, Inc. (NASDAQ and MTA: CTIC) -- http://www.CellTherapeutics.com/-- is a bi4opharmaceutical company committed to developing an integrated portfolio of oncology products aimed at making cancer more treatable. The Company reported a net loss of US$82.64 million on US$319,000 of revenue for the 12 months ended Dec. 31, 2010, compared with a net loss of US$82.64 million on US$80,000 of total revenue during the same period in 2009. The Company's balance sheet at March 31, 2011 showed US$60.92 million in total assets, US$43.11 million in total liabilities, US$13.46 million in common stock purchase warrants and US$4.35 million total shareholders' equity. Marcum LLP, in San Francisco, Calif., expressed substantial doubt about the Company's ability to continue as a going concern in its audit reports for the financial statements for 2009 and 2010. The independent auditors noted that the Company has incurred losses since its inception, and has a working capital deficiency of approximately US$14.2 million at Dec. 31, 2010. ===================== N E T H E R L A N D S ===================== MARCO POLO: Banks Try to Kick Bankruptcy Out of U.S. Court ---------------------------------------------------------- Richard Vanderford at Bankruptcy Law360 reports that attorneys for lender Royal Bank of Scotland and another bank argued Monday that Marco Polo Seatrade BV's more than $200 million bankruptcy case should be booted from a New York bankruptcy court. Attorneys for RBS and Credit Agricole SA contended at an all-day hearing that Marco Polo, which like other shipping companies has seen its fortunes fall as cargo rates have plummeted, should not be allowed to use a U.S. bankruptcy court to ride out the downturn in its business, according to Law360. About Marco Polo Marco Polo Seatrade B.V. operates an international commercial vessel management company that specializes in providing commercial and technical vessel management services to third parties. Founded in 2005, the Company mainly operates under the name of Seaarland Shipping Management and maintains corporate headquarters in Amsterdam, the Netherlands. The primary assets consist of six tankers that are regularly employed in international trade, and call upon ports worldwide. Marco Polo and three affiliated entities filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 11-13634) on July 29, 2011. The other affiliates are Seaarland Shipping Management B.V.; Magellano Marine C.V.; and Cargoship Maritime B.V. Marco Polo is the sole owner of Seaarland, which in turn is the sole owner of Cargoship, and also holds a 5% stake in Magellano. The remaining 95% stake in Magellano is owned by Amsterdam-based Poule B.V., while another Amsterdam company, Falm International Holding B.V. is the sole owner of Marco Polo. Falm and Poule didn't file bankruptcy petitions. The filings were prompted after lender Credit Agricole Corporate & Investment Bank seized one ship on July 21, 2011, and was on the cusp of seizing two more on July 29. The arrest of the vessel was authorized by the U.K. Admiralty Court. Credit Agricole also attached a bank account with almost US$1.8 million on July 29. The Chapter 11 filing precluded the seizure of the two other vessels. The cases are before Judge James M. Peck. Evan D. Flaschen, Esq., Robert G. Burns, Esq., and Andrew J. Schoulder, Esq., at Bracewell & Giuliani LLP, serve as the Debtors' bankruptcy counsel Kurtzman Carson Consultants LLC serves as notice and claims agent. The petition noted that the Debtors' assets and debt are both more than US$100 million and less than US$500 million. Tracy Hope Davis, United States Trustee for Region 2, appointed three members to serve on the Official Committee of Unsecured Creditors. The Committee has retained Blank Rome LLP as its attorney. Secured lender Credit Agricole Corporate and Investment Bank is represented by Alfred E. Yudes, Jr., Esq., and Jane Freeberg Sarma, Esq., at Watson, Farley & Williams (New York) LLP. =========== S W E D E N =========== * SWEDEN: Corporate Failures Down 19% to 394 in September 2011 -------------------------------------------------------------- According to SeeNews, data by business and credit information agency Upplysningscentralen (UC) AB showed that the number of corporate failures in Sweden declined by 19% year-on-year to 394 in September 2011. The decrease contrasts with the global economic unrest and the solid 18% jump in bankruptcies in August, SeeNews says. UC said the weakest companies collapsed earlier, when the economic activity slowed down, SeeNews relates. In January-September 2011, corporate failures edged down 4% year- on-year to 4,356, SeeNews discloses. In September, the bankruptcy count fell in all sectors with the exception of transport, SeeNews recounts. UC expects bankruptcies in the full 2011 to be on par with 2010 levels, SeeNews states. =========================== U N I T E D K I N G D O M =========================== DECO 8: Moody's Lowers Rating on GBP361.1M E Notes to 'Caa3 (sf)' ----------------------------------------------------------------- Moody's Investors Service has affirmed one Class and downgraded five Classes issued by Deco 8 - UK Conduit 2 plc (amounts reflecting initial outstanding): Issuer: Deco 8 - UK Conduit 2 plc -- GBP200M A-1 Notes, Affirmed at Aaa (sf); previously on Jun 26, 2009 Confirmed at Aaa (sf) -- GBP256.6M A-2 Notes, Downgraded to A2 (sf); previously on Jun 26, 2009 Downgraded to Aa3 (sf) -- GBP32.4M B Notes, Downgraded to Ba1 (sf); previously on Jun 26, 2009 Downgraded to Baa2 (sf) -- GBP34M C Notes, Downgraded to Ba3 (sf); previously on Jun 26, 2009 Downgraded to Ba1 (sf) -- GBP23.5M D Notes, Downgraded to B3 (sf); previously on Jun 26, 2009 Downgraded to B2 (sf) -- GBP61.1M E Notes, Downgraded to Caa3 (sf); previously on Jun 26, 2009 Downgraded to Caa2 (sf) Moody's does not rate the Class X, F, and G Notes. RATINGS RATIONALE The key parameters in Moody's analysis are the default probability of the securitized loans (both during the term and at maturity) as well as Moody's value assessment for the properties securing these loans. Moody's derives from those parameters a loss expectation for the securitized pool. Based on Moody's revised assessment of the parameters, the loss expectation for the pool has increased since the last review in October 2010 as a result of (i) an increase in the refinance risk for all 13 loans in the pool to reflect Moody's updated view as described in Moody's Special Report "EMEA CMBS: 2011 Central Scenarios"; and (ii) giving more weight in Moody's analysis to potential downside scenarios for the Lea Valley Loan that represents 40% of the pool. Deco 8 -- UK Conduit 2 plc closed in April 2006 and represents the securitization of 13 remaining mortgage loans (excluding the Challenge & Wrencote loan with a current balance of GBP1.6 million that is expected to be written down on the October 2011 IPD following the completion of the disposal program) originated by Deutsche Bank AG, London Branch and secured by first-ranking legal mortgages over commercial properties located across the UK. The updated Moody's Note to Value for the Class A-1, A-2, B, C, D, and E is 23%, 69%, 75%, 81%, 85% and 96% respectively. The four Largest loans represent 93% of the pool (Lea Valley Loan (40%); Mapeley II Loan (35%); Fairhold Ground Rent Portfolio Loan (12%); Le Meridien Piccadilly Limited Loan (6%)). The other nine smaller loans represent 7% of the pool. Moody's revised its collateral value for the nine smaller loans to GBP35 million, which is 12% lower than at the last review in October 2010. Other than the Lea Valley Loan, the performance and collateral value of the four largest loans were stable since the last review. The Lea Valley Loan was modified in May 2010 extending its maturity date to April 2016. The current Whole loan balance is GBP240 million, split into a GBP221 million senior securitized loan and a GBP19 million subordinated B-note that sits outside the securitization. A new target debt level covenant was introduced as part of the loan modification that may require property assets to be sold over the term. The yearly target whole loan debt level is GBP233 million for 2013, gradually reducing to GBP188 million by maturity in 2016. The loan modification re-directed cash-flow away from scheduled amortization of the loan to value accretive capital expenditure opportunities and to assist with the payment of property related running costs, especially with regards to empty rate taxation costs. The performance and value of the of the management-intensive portfolio is heavily reliant on executing the asset management business plan and having sufficient funds for capital expenditure. The lack of visibility into the business plan and the absence of more detailed reporting introduce a greater level of uncertainty around Moody's valuation assessment. The underlying portfolio of the Lea Valley Loan comprises 28 properties (20 Industrial; 7 Office; 1 Retail). The weighted- average remaining lease term to expiry or break is currently 2.86 years, down from 3.3 years on the last review. While the vacancy rate remained around the 31% level in the last year, Total Net Income decreased by 5% from GBP16.7 million to GBP15.8 million over the same period. Moody's revised its current value for the portfolio to GBP170 million, which is 7% lower than at the October 2010 review. The corresponding LTV for the senior securitized loan and the whole loan is 129% and 141% respectively. There is material downside risk to the valuation that is driven by (i) the predominantly secondary industrial nature of the portfolio (70% by Moody's value) with a short-term lease profile that exposes the properties to increasingly weak occupational and investment markets; and (ii) the likelihood of continued downward pressure on Total Net Income because of tenants paying lower rent at lease rollover and capital expenditure requirements. The principal methodology used in this rating was Moody's Approach to Real Estate Analysis for CMBS in EMEA: Portfolio Analysis (MoRE Portfolio) published in April 2006. DRIVEBUSINESS: Goes Into Administration, Cuts 100 Jobs ------------------------------------------------------ The Drum reports that Drivebusiness has been placed into administration, cutting 100 jobs in the process. An unnamed spokesperson told The Drum in an interview: "I can confirm that a number of redundancies have been made. . . . I can also confirm that the administrators have secured the support of customers to enable the business to continue to trade." The Drum discloses that some staff are still waiting to be paid for September. The North Ayrshire business was placed into administration at the end of last week, almost a year after the company was 'mistakenly' liquidated by Her Majesty Revenue & Customs as the result of a clerical error, according to The Drum. Drivebusiness is an online marketing firm that worked with fashion brands such as AllSaints, Ted Baker and Gant. The company was established in 2005, and run by directors Stephen and Moira Ritchie. FOCUS (DIY): Valad Lets Former Stores to B&Q -------------------------------------------- Property Magazine International reports that Valad has let three retail warehouses totaling 92,488 sq. ft. to B&Q on behalf of its V+ UK fund for a combined rental income of more than GBP900,000. The stores, located in Sudbury, Thetford and Pembroke Dock, were among 31 included in an Option Agreement that B&Q entered into with Focus DIY's administrator, when the company was placed into administration earlier this year, according to Property Magazine International. Under the terms of the agreement, B&Q has now signed three new ten year leases with V+ UK, the report relates. The V+ UK fund is a mixed commercial UK property fund that seeks to provide attractive returns to investors driven by income growth through the delivery of asset management initiatives. As reported in the Troubled Company Reporter-Europe on May 10, 2011, H&V News related that Focus DIY fell into administration. Ernst & Young, who were appointed as administrator, said that they are looking for a buyer for the company's stores, which continue to trade as normal, according to H&V News. Focus (DIY) was founded by Bill Archer in 1987, with six stores in the Midlands and the north of England. The company had 178 stores in England, Scotland, and Wales, and employed more than 3,900 staff. FOUR SEASONS: In Refinancing Talks with Creditors ------------------------------------------------- Christopher Thompson and Simon Mundy at The Financial Times report that Four Seasons Healthcare, which is seeking control of 140 homes formerly managed by Southern Cross to become Britain's biggest care home operator, is in refinancing talks over GBP780 million (US$1.2 billion) of debt. The debt, which is due in September next year, has already been deferred by creditors from September 2010. "We are going through a process of strategic options," the FT quotes Pete Calveley, chief executive of Four Seasons Health Care Group, as saying. "We are considering with shareholders the refinancing of the debt. We have two or three different scenarios and we are confident [of refinancing] before the deadline." The company is being advised by Rothschild and Gleacher Shacklock, the FT discloses. In 2009, Four Seasons struck a restructuring deal with creditors in which the company's GBP1.6 billion debt was halved and ownership transferred from a Qatari-backed fund to its creditors - - including Royal Bank of Scotland -- which took a 40% stake in exchange for writing off their claims, the FT recounts. Four Seasons Healthcare has been approved by the Care Quality Commission, the government body that regulates conditions in care homes, to take over the running of 56 homes once managed by Southern Cross, formerly Britain's biggest care home operator, which is due to be wound up, the FT relates. Four Seasons said it would apply to manage 84 more former Southern Cross homes, the FT notes. According to the FT, the GMB union has called on the CQC to investigate the transfer of homes to see if Four Seasons "has the financial stability to avoid being the son of Southern Cross". Four Seasons Health Care -- http://www.fshc.co.uk/-- is one of the largest care home (nursing home) operators in the UK. The company runs some 300 nursing homes, and its Huntercombe division operates about eight specialized health care centers (which provide mental health and rehabilitation services) in England, Scotland, North Ireland, and the Isle of Man. Allianz Capital Partners, the private equity arm of Allianz Group, acquired the company from Alchemy Partners for GBP775 million in 2004. LEHMAN BROTHERS: SIPA Trustee Wants Europe Unit $8BB Claim Denied ----------------------------------------------------------------- James Giddens, the trustee for the liquidation of the business of Lehman Brothers Inc. pursuant to the Securities Investor Protection Act of 1970, has asked the U.S. Bankruptcy Court for the Southern District of New York to deny the US$8.9 billion claim filed by Lehman's European unit. Mr. Giddens said the so-called house claim filed by Lehman Brothers International (Europe) must be denied since it is not a customer claim. LBIE, the largest of LBHI's foreign affiliates, seeks to recover US$8.9 billion from the brokerage, saying the house claim is entitled to a higher status as a customer claim. The US$8.9 billion claim is based upon transactions in U.S. securities conducted through LBIE proprietary accounts that the brokerage maintained while acting as the U.S. hub for the global Lehman enterprise. The trustee's lawyer, William Maguire, Esq., at Hughes Hubbard & Reed LLP, in New York, said the house claim does not involve any third-party customer property entrusted to the brokerage or segregated for the benefit of third-party customers. "LBIE's house claim, although asserted as a SIPA customer claim, is asserted not for the benefit of any underlying customers but for the benefit of LBIE itself," Mr. Maguire said in a court filing. While objecting the house claim, the trustee has allowed more than US$8.3 billion claim for LBIE's customers, one of the largest allowed claims in the history of bankruptcy and so far the largest claim allowed under SIPA. LBIE's objection over whether its US$8.9 billion claim can be treated as a customer claim is considered the biggest hurdle for the confirmation of Lehman's proposed Chapter 11 plan. In case it would be treated as a customer claim, the house claim would receive higher payback priority and would be more likely to be repaid in full at the expense of other claims. NEW MCCOWANS: Ceases Trading, Cuts 100++ Jobs at Stenhousemuir -------------------------------------------------------------- BBC News reports that New McCowans Ltd. administrators confirmed that the company has ceased trading with the loss of more than 100 Scottish jobs. Production at the New McCowans plant in Stenhousemuir was suspended last month after the firm went into administration, according to BBC News. The report relates that several investors were thought to have expressed an interest in the company. However, BBC News discloses, administrators Grant Thornton said staff had now been told they had lost their jobs. Grant Thornton said just over 100 jobs would be lost in Stenhousemuir, BBC News notes. Other group operations -- Thornycroft warehousing based in Skegness and Bristows fudge making business in Devon -- have also closed, with total job losses across the group put at around 185, the report says. BBC News adds that Usdaw, the union of Shop, Distributive and Allied Workers, said it was considering legal action to reclaim lost wages. New McCowans Ltd. is a sugar-based confectionery company that manufactures a diverse range of products that appeal to a wide range of consumers and age groups and delivers those products under the McCowan, Millar and Millar McCowan brands. PLYMOUTH ARGYLE FC: Administrators Racks Up GBP700,000 in Fees -------------------------------------------------------------- Plymouth Herald reports that Plymouth Argyle Football Club's administrators have racked up fees of more than GBP700,000. The P&A Partnership has been trying to sell the debt-crippled Pilgrims since they were plunged into administration on March 4, according to Plymouth Herald. The report relates that Devon businessman James Brent is expected to complete his takeover of the League Two club next week. Plymouth Herald notes that the deal would secure Argyle's short- term future and bring to an end a process that by lead administrator Brendan Guilfoyle's own admission has been "complex and protracted". The P&A Partnership's six-monthly progress report revealed that administrators' average hourly rate of GBP267.54 in April has risen to GBP279.21 in the period up to September 3, Plymouth Herald says. However, Plymouth Herald relates despite incurring total costs of �GBP675,756, it has so far pocketed only GBP150,000. A further GBP1.4million has been spent since their appointment, including GBP150,000 on 'office holder fees' and GBP66,739 on "professional fees," Plymouth Herald discloses. The report relays that "consultancy fees," thought to have been paid to three people, including acting Club Chairman Peter Ridsdale, total GBP50,500. Nobody from the company was able to confirm how much cash had gone to solicitors Walker Morris, Plymouth Herald relates. But, according to the report, the "partner" handling the case has accumulated costs of GBP381,008 for 812.7 hours' work, the report notes. "Other senior professionals" have put in 1,389 hours at a total time cost of more than GBP250,000, Plymouth Herald adds. Plymouth Argyle Football Club, commonly known as Argyle, or by their nickname, The Pilgrims, is an English professional football club based in Central Park, Plymouth. It plays in Football League One, the third division of the English football league system. SOUTHERN CROSS: Care Home Jobs 'Safe' Despite Union Fears --------------------------------------------------------- Clacton Gazette reports that Springbank residential home staffs are being told their jobs are safe after a new parent company took over. Springbank residential home was part of Southern Cross Healthcare, which is due to go into administration at the end of the month. There was uncertainty over the future of Southern Cross's 750 United Kingdom homes after the company ran out of money earlier this year, according to Clacton Gazette. The report notes that Four Seasons Healthcare is taking over 140 homes, including Springbank. Springbank Manager Ian Brown said the move would reassure staff. Clacton Gazette discloses. "What is most important it that our service users aren't affected by it and will continue to get the same quality of care," Clacton Gazette quoted Mr. Brown as saying. As reported in the Troubled Company Reporter-Europe on Oct. 4, 2011, The Shields Gazette said that fears have been raised over the transfer of South Tyne-side care home Stapleton House to Four Seasons Healthcare after its previous operator Southern Cross group plans to go into administration at the end of this month. The report noted that GMB union officials have compared the move to "jumping from the frying pan into the fire", as Four Seasons has faced its own serious financial issues. Union leaders said the Care Quality Commission (CQC) must establish how Four Seasons can pay debts of GBP750 million, due to be repaid next September, from assets of GBP350 million, according to The Shields Gazette. But, the report related, an unnamed spokesman for Four Seasons Healthcare has called the GMB's claims "substantially wrong . . . . Four Seasons is in good financial health. Unlike Southern Cross, it is trading profitably. Our admissions are up compared to last year, in contrast to a decline across the sector." * UK: 3rd Qtr. Real Estate Bankruptcies Up 11% in England & Wales ----------------------------------------------------------------- Ross Larsen at Bloomberg News reports that Deloitte LLP said the number of real-estate and construction companies seeking bankruptcy in England and Wales rose by 11% in the third quarter as budget cuts and economic uncertainty led to canceled projects. According to Bloomberg, Deloitte said on Wednesday in a research report that a total of 117 property companies and builders went into administration in the period, up from 105 a year earlier. The U.K. affiliate of Deloitte Touche Tohmatsu said that the industries are unlikely to improve in the next quarter and medium- sized firms will be hurt more than larger contractors, Bloomberg notes. * UK: Company Voluntary Arrangements in Retail Sector Jump ---------------------------------------------------------- Kat Baker at Property Week, citing research by City law firm Wedlake Bell, reports that the number of retailers using company voluntary arrangements (CVA) to renegotiate their debts with landlords has jumped by almost a quarter in a year. In total 54 retail businesses have undergone CVAs in the 12 months to the end June 2011, up from 44 in the previous year, despite there having been a decline in overall corporate insolvencies in this period, Property Week discloses. According to Property Week, Wedlake Bell predicts that the September 29 quarterly rental deadline could prompt a new wave of retail sector CVAs as retailers seek to cut their property costs in an attempt to save their business. "Retailers are faced with a toxic brew of woes caused by the credit crunch, sluggish summer trading and the next quarter's advance rental payment. Troubled retailers, along with some creditors, see a CVA as a good way to slash the business's historic debts and control costs going forward in order to save the business," Property Week quotes Edward Starling, partner in the business recoveries team at Wedlake Bell, as saying. "Because property costs are such a large overhead, the suspicion amongst some landlords is that the CVA is being engineered primarily to target the lease obligations. That means that the company's landlords or one particular landlord might lose out disproportionately. There can be a lot of hard negotiating if the landlords are to avoid carrying the can." =============== X X X X X X X X =============== * S&P Takes Rating Actions on Six European Synthetic CDOs --------------------------------------------------------- Standard & Poor's Ratings Services took credit rating actions on six European synthetic collateralized debt obligation (CDO) tranches. Specifically, S&P: Raised and removed from CreditWatch positive its rating on one tranche; Affirmed and removed from CreditWatch positive its ratings on two tranches; and Lowered and removed from CreditWatch negative its ratings on three tranches. For the full list of rating actions see "EURopean Synthetic CDO Rating Actions At September 2011." "The rating actions are part of our regular monthly review of synthetic CDOs. The actions incorporate, among other things, the effect of recent rating migration within reference portfolios and recent credit events on several corporate entities," S&P said. "Where losses in a portfolio have already exceeded the available credit enhancement or where, in our opinion, it is highly likely that this will occur once final valuations are known, we have lowered our ratings to 'CC' because we consider the likelihood that the noteholders will not receive their full principal to be high, but has not yet happened," S&P related. "For those transactions where our September 2009 criteria (see 'Update To Global Methodologies And Assumptions For Corporate Cash Flow And Synthetic CDOs,' published on Sept. 17, 2009) are not applicable, we have run our analysis on the appropriate Evaluator models (versions 2.7 and 4.1). For the transactions where the September 2009 criteria are applicable, our analysis has been run on Evaluator version 5.1," S&P stated. The rating actions and the CreditWatch updates follow two reviews. The first review was of the CreditWatch placements made on Sept. 15, 2011 (see "S&P Takes CreditWatch Actions On EURopean Synthetic CDOs After Running August 2011 Month-End SROC Figures"). "For the second review, we run SROC (synthetic rated overcollateralization) for scenarios that project the current portfolio 90 days into the future, assuming no asset rating migration," S&P said. "For the transactions run on version 5.1, we have also run the top obligor and industry test SROCs at the current rating level. The 'largest obligor default test' assesses whether a CDO tranche has sufficient credit enhancement to withstand specified combinations of underlying asset defaults based on the ratings on the assets. The 'largest industry default test' assesses whether the CDO tranche rated 'AAA' to 'AA-' has sufficient credit enhancement to withstand the default of all obligors in the transaction's largest industry," S&P stated. "In addition to the supplemental tests, and the Monte Carlo default simulation results, we may consider certain factors such as credit stability and rating sensitivity to modeling parameters when assigning ratings to CDO tranches. We assess these factors case-by-case and may adjust the ratings to a rating level that is different to that indicated by the quantitative results alone," S&P stated. "For any tranches which the updated counterparty criteria is applicable to, where our ratings pass SROC and all the applicable supplemental tests but are higher than one rating level above the ICR of the lowest-rated counterparty to which they are exposed, we have kept them on CreditWatch negative," S&P related. What is SROC? "One of the main steps in our rating analysis is the review of the credit quality of the securitized assets. SROC is one of the tools we use for this purpose when rating and surveilling ratings assigned to most synthetic CDO tranches. SROC is a measure of the degree by which the credit enhancement (or attachment point) of a tranche exceeds the stressed loss rate assumed for a given rating scenario. It is comparable across different tranches of the same rating," S&P said. "Changes in SROC capture any developments in the major influences on a tranche's creditworthiness: The credit quality of a reference portfolio, improvement or deterioration of ratings in the reference portfolio, credit events, and time decay. When SROC is 100%, we believe there is exactly sufficient credit enhancement to maintain the rating on a tranche," S&P said. "When SROC is less than 100%, it indicates that the current credit enhancement may not be sufficient to maintain the current tranche rating, in our opinion. If the SROC is less than 100%, but the 90 day projection indicates that the SROC would return to a level above 100% at that time, we usually maintain the rating at its current level and it remains on CreditWatch negative. However, where there is a difference of several notches in the rating level at which the SROC is passing and the level at which SROC passes in 90 days, rather than maintaining its current rating and keeping the CreditWatch negative placement, we may decide to lower the rating and keep it on CreditWatch negative. If, on the other hand, the projection indicates that the SROC would remain below 100%, we may lower the rating subject to our criteria (see 'Related Criteria And Research')," S&P stated. "If the current SROC of a tranche would be greater than 100% at a higher rating level than the current rating, we may upgrade subject to our criteria (see 'Related Criteria And Research')," S&P said. * 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, Julie Anne G. Lopez, Ivy B. Magdadaro, Frauline S. Abangan and Peter A. Chapman, Editors. Copyright 2011. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *