/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/111222.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, December 22, 2011, Vol. 12, No. 253 Headlines A U S T R I A BONAVENTURA: S&P Affirms 'B+' Rating on EUR425-Mil. Secured Bonds B E L G I U M DEXIA SA: Sells Luxembourg Unit to Precision Capital G E R M A N Y TALISMAN-3 FINANCE: Fitch Affirms 'C' Ratings on Two Note Classes WESTLB AG: European Commission Approves Break-Up Plan G R E E C E OMEGA NAVIGATION: Judge May Sanction HSH for Faulty Allegations * GREECE: Has Initial Deal with Bondholders on Debt Swap Terms I R E L A N D BANK OF IRELAND: Wins European Union Approval for State Aid I T A L Y CELL THERAPEUTICS: Retires Remaining Convertible Debt P O L A N D BANK OCHRONY: Fitch Affirms Individual Rating at 'D' P O R T U G A L BANCO ESPIRITO: S&P Lifts Rating on Guaranteed Sr. Debt From 'BB' S P A I N FTPYME TDA: Fitch Affirms Rating on Series 3SA Notes at 'BBsf' SACYR VALLEHERMOSO: Staves Default After Repsol Purchases Stake * VALENCIA REGION: Moody's Downgrades Debt Rating to 'Ba1' S W E D E N SAAB AUTOMOBILE: Pang Da Halts Bid; Breakup Looms U K R A I N E MORYE: Crimean Court Extends Bankruptcy Procedure Through Jan. 2 U N I T E D K I N G D O M CLEARY DOYLE: NAMA Places Firm Into Receivership COVENTRY & RUGBY: S&P Affirms 'BB+' Rating on GBP407.2-Mil. Bonds CUMBRIAN SEAFOOD: Jobs at Fish Factory Under Threat HEALTHCARE LOCUMS: Set to Appoint New Advisors NORTHERN ROCK: S&P Raises Rating on Tier One Notes to 'BB+' PADDINGTON HOUSE: Goes Into Administration, Seeks Buyer WEDGWOOD MUSEUM: To Sell Collection to Plug GBP134MM Shortfall * UK: Consumer Sector Insolvencies Expected to Rise X X X X X X X X * EUROPE: Almunia Warns of More Bank Restructurings in 2012 * EUROPE: Plans for Failing Banks Expected in 2012, Barnier Says * EUROPE: Moody's Says Outlook on 2012 CLOs Negative * Upcoming Meetings, Conferences and Seminars ********* ============= A U S T R I A ============= BONAVENTURA: S&P Affirms 'B+' Rating on EUR425-Mil. Secured Bonds ----------------------------------------------------------------- Standard & Poor's Ratings Services affirmed the 'B+' long-term ratings on the EUR425 million in floating-rate senior secured bonds, due 2039, and a EUR350 million floating-rate senior secured loan from the European Investment Bank (EIB; AAA/WatchNeg/A-1+), due 2038, issued by Luxembourg-registered Ostregion Investmentgesellschaft Nr. 1 S.A. (Ostregion), a special-purpose vehicle for the financing of an Austrian road project. "At the same time, we removed these ratings from CreditWatch where they were placed, with negative implications, on Aug. 8, 2011," S&P said. "We now understand that Bonaventura is unlikely to be declared insolvent under Austrian law, based on information we recently received from Bonaventura's management, including statements from Bonavantura's auditors and insolvency expert. We understand that the going-concern prognosis undertaken by the company's auditors will most likely take into account only the current and following year, rather than the remaining project life, as we had been previously informed," S&P said. "The stable outlook reflects our view of stable, though relatively tight, SDSCRs and minimal use, if at all, of the project's DSRA during the remainder of the project's life. We forecast SDSCRs at or marginally above 1.05x after receipt of payments under ASFINAG's top up guarantee in our updated base case, which incorporates our latest traffic forecast and our view that significant unavailability penalties and/or cost slippage are unlikely, given the positive track record to date and the back-to-back nature of the contract with the road's operator," S&P said. "We could take a positive rating action if actual traffic volumes improved significantly, leading to a sustained material improvement in SDSCRs, or if the project demonstrated no recourse to the DSRA because of timely receipt of ASFINAG's guarantee payments," S&P said. "Conversely, we could revise the outlook to negative or lower the ratings if the project demonstrated substantial recourse to the DSRA, thus further weakening its liquidity," S&P said. ============= B E L G I U M ============= DEXIA SA: Sells Luxembourg Unit to Precision Capital ---------------------------------------------------- Stanley Pignal at The Financial Times reports that the dismantling of Dexia, the twice bailed-out Franco-Belgian bank, gathered pace on Tuesday as it announced the sale of its Luxembourg unit to Precision Capital, a Qatari investor, valuing it at EUR730 million. Dexia Banque Internationale a Luxembourg is the second subsidiary to be sold following the intervention of the Belgian and French authorities to save Dexia after it ran out of cash in early October, the FT discloses. Its Belgian arm was nationalized soon afterwards in what amounted to a winding up of the specialist municipal lender, the FT recounts. According to the FT, Precision Capital, owned by the Qatari ruling family, will take a 90% stake in BIL, which includes commercial and private banking arms. The Luxembourg government will own the remaining 10%, the FT states. The Qatari group did not say whether it intended to run the operations jointly, the FT notes. The transaction price values BIL at 5.2 times 2010 earnings, and is below the EUR900 million that analysts had expected since a deal with the Qataris was first mooted at the start of October, the FT discloses. According to the FT, people close to the bank said that the sale will probably translate into a significant accounting loss for Dexia. All its healthy subsidiaries are in the process of being sold so that it can finance a highly leveraged portfolio of bonds, the FT says. These have been grouped into a "bad bank" structure which will receive state guarantees to fund itself, the FT notes. As well as Dexia Bank Belgium and BIL, Dexia is seeking buyers for a number of its operations: its asset management arm, which is understood to have received interest from more than thirty potential suitors; DenizBank, its Turkish retail unit which has attracted HSBC and Russia's Sberbank among others; and RBC Dexia Investor Services, the back-office specialist which is thought likely to be snapped up by Royal Bank of Canada, its joint- venture partner, according to the FT. The EUR90 billion bail-out package agreed in September still awaits approval from the European Commission, which is expected later this week, the FT states. Dexia SA -- http://www.dexia.com/-- is a Belgian-based bank and insurance carrier that focuses on Public and Wholesale Banking, providing local public finance actors with banking and financial solutions, and on Retail and Commercial Banking in Europe, mainly Belgium, France, Luxembourg and Turkey. ============= G E R M A N Y ============= TALISMAN-3 FINANCE: Fitch Affirms 'C' Ratings on Two Note Classes ----------------------------------------------------------------- Fitch Ratings has downgraded Talisman-3 Finance p.l.c. class D notes, and affirmed all other tranches as follows: -- EUR15.1m class B (XS0256114892): affirmed at 'AAAsf'; Outlook Stable -- EUR19.6m class C (XS0256115436): affirmed at 'AAsf'; Outlook revised to Negative from Stable -- EUR42.7m class D (XS0256115865): downgraded to 'CCsf' from 'CCCsf'; Recovery Estimate (RE) 80% -- EUR10m class E (XS0256116327): affirmed at 'Csf'; RE 0% -- EUR5m class F (XS0256116673): affirmed at 'Csf'; RE 0% The downgrade of the class D notes and the Negative Outlook on the class C notes reflect the increased risk of a protracted workout of the Berlin & Dresden loan. The other loan, Waterloo, remains of high quality, which is central to the affirmation of the other notes. The larger and weaker of the two remaining loans, Berlin & Dresden (70.6% of the outstanding balance), matures in January 2012. The servicer, Hatfield Philips, had granted a two-year extension to the original loan term at its maturity date in January 2010. At the same time, the 85% loan-to-value ratio (LTV) covenant was waived; it had been breached as a result of an October 2009 revaluation reporting a reduction of 45% of the original market value of the mortgaged property. Since the extension was granted, there has been little de-leveraging despite strong interest coverage. This is in part due to significant payments to the loan sponsor agreed by the servicer at the time of the extension. With a reported LTV of 138%, applying much more excess cash flow to repay principal would provide some mitigant to the losses expected on this loan, as reflected in the highly distressed ratings on the classes D to F notes. The smaller Waterloo loan is performing well. Vacancy has fallen to 2.9%, its lowest level since origination. The stability of the collateral is reflected in the December 2010 re-valuation, which showed only a modest 1.3% decline in asset value since December 2005. WESTLB AG: European Commission Approves Break-Up Plan ----------------------------------------------------- Ulrike Dauer at Dow Jones Newswires reports that the European Commission, the executive arm of the European Union, said Tuesday it approved a plan to split up German state-controlled lender Westdeutsche Landesbank, or WestLB, leading to the sale and eventual winding down of its banking activities. The plan, submitted by the bank's owners -- the German state of North Rhine-Westphalia and regional savings banks -- and Germany's federal government at the end of June, "is in line with EU state aid rules," Dow Jones quotes the Commission as saying. According to Dow Jones, the commission said that under the plan, WestLB's so-called Verbundbank business -- essentially its central bank services to savings banks in the region where it operates and mid-cap corporate lending -- will be carved out. Frankfurt-based state-owned peer Landesbank Hessen-Thueringen, or Helaba, said Dec. 12 it plans to take over the assets and liabilities of WestLB's Verbundbank business, Dow Jones recounts. All other assets and liabilities not sold by June 30 will be transferred to WestLB's EAA "bad bank" on that day, Dow Jones discloses. After June 30, WestLB won't engage in new banking business and will be transformed into a servicing platform with a run-down vehicle that holds legacy positions transferred to or hedged by WestLB's EAA "bad bank," the commission, as cited by Dow Jones, said. Dow Jones relates that the commission said this transformation will require additional aid by the state government of North Rhine-Westphalia, Germany's SoFFin bank rescue fund and German savings banks, without specifying the amount needed. As reported in the Troubled Company Reporter-Europe on Nov. 18, 2011, Dow Jones' Daily Bankruptcy Review related that the European Commission's antitrust body hopes to adopt a final decision in the restructuring of WestLB by the end of the year. Headquartered in Duesseldorf, Germany, WestLB AG (DAX:WESTLB) -- http://www.westlb.com/-- provides financial advisory, lending, structured finance, project finance, capital markets and private equity products, asset management, transaction services and real estate finance to institutions. In the United States, certain securities, trading, brokerage and advisory services are provided by WestLB AG's wholly owned subsidiary WestLB Securities Inc., a registered broker-dealer and member of the NASD and SIPC. WestLB's shareholders are the two savings banks associations in NRW (25.15% each), two regional associations (0.52% each), the state of NRW (17.47%) and NRW.BANK (31.18%), which is owned by NRW (64.7%) and two regional associations (35.3%). =========== G R E E C E =========== OMEGA NAVIGATION: Judge May Sanction HSH for Faulty Allegations --------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that when Omega Navigation Enterprises Inc. beat back an effort by HSH Nordbank AG to dismiss or convert the Chapter 11 case to liquidation in Chapter 7, U.S. Bankruptcy Judge Karen K. Brown in Houston said that the Hamburg-based agent for secured lenders displayed "reckless disregard for truth and an intentional strategy to delay and impede the bankruptcy proceedings." According to the report, Judge Brown said in her 14-page opinion that she will hold a hearing to decide whether to impose sanctions on HSH or its lawyers from White & Case LLP in New York. In addition to imposing monetary sanctions, Judge Brown said she will consider whether to subordinate HSH's claim, deny voting rights on the claim, or require the bank to pay the bankrupt company's company legal fees. The report relates that Judge Brown pointed to allegations the bank made about financial improprieties committed by Omega. As to some, Judge Brown ruled after trial that there was "no evidence." As to another, she said the bank consented to the action, which was designed to bring badly needed cash into the company. Judge Brown disagreed with HSH's strategy to threaten suit against Omega's outside directors unless they voted to dismiss the bankruptcy reorganization. She appointed an examiner who issued a report saying it was appropriate "to sanction HSH" by ordering the bank not to threaten lawsuits. The examiner also concluded that HSH should pay some of Omega's attorneys' fees. About Omega Navigation Athens, Greece-based Omega Navigation Enterprises Inc. and affiliates, owner and operator of tankers carrying refined petroleum products, filed for U.S. Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 11-35926) on July 8, 2011, in Houston. Omega is an international provider of marine transportation services focusing on seaborne transportation of refined petroleum products. The Debtors disclosed assets of US$527.6 million and debt totaling US$359.5 million. Together, the Debtors wholly own a fleet of eight high-specification product tankers, with each vessel owned by a separate debtor entity. Judge Karen K. Brown presides over the case. Bracewell & Giuliani LLP serves as counsel to the Debtors. Jefferies & Company, Inc., is the financial advisor and investment banker. The Official Committee of Unsecured Creditors has tapped Winston & Strawn as local counsel; Jager Smith as lead counsel; and First International as financial advisor. * GREECE: Has Initial Deal with Bondholders on Debt Swap Terms -------------------------------------------------------------- Maria Petrakis and Marcus Bensasson at Bloomberg News, citing Web site Euro2day, report that Greece's government and bondholders reached an initial agreement on some of the terms of a debt swap at meetings in Paris last week. According to Bloomberg, the Web site said that the two parties agreed the new bonds would be governed by British law and that they would contain clauses for greater returns if economic growth outperforms projections. The Web site, as cited by Bloomberg, said that bondholders have proposed the new bonds carry an interest rate of 4% for the first three years, 4.5% for the next five years and 5% thereafter. Euro2day said that no agreement has been reached on that proposal yet, Bloomberg notes. The Web site said that the proposal means an effective net present value loss of 65%, Bloomberg relates. ============= I R E L A N D ============= BANK OF IRELAND: Wins European Union Approval for State Aid ----------------------------------------------------------- Aoife White at Bloomberg News reports that Bank of Ireland Plc won European Union approval for Irish government help after it agreed to reduce reliance on wholesale funding and focus on "balanced-risk" lending in Britain and Ireland. According to Bloomberg, regulators said in a statement on Tuesday that the European Commission authorized Irish government recapitalizations, guarantees and asset relief after the bank made plans to "substantially deleverage its balance sheet to reduce its dependency on wholesale funding," exit risky portfolios and implement better risk management. Regulators must approve large state payments to lenders that needed help during the financial crisis and has required banks to shrink balance sheets and change the way they do business to compensate for any harm to competition, Bloomberg notes. EU Competition Commissioner Joaquin Almunia said in a statement that Bank of Ireland and Allied Irish Banks Plc, the country's two biggest lenders, require "close surveillance" because they will control the Irish market after receiving bailouts, Bloomberg relates. Bank of Ireland said in June that it intended to reverse plans to sell its ICS Building Society unit under its revised EU restructuring program, Bloomberg recounts. It also said it would delay the sale of its New Ireland life assurance unit, according to Bloomberg. The EU ordered the bank to sell both divisions as part of its original restructuring blueprint, approved in July 2010, Bloomberg discloses. According to Bloomberg, Bank of Ireland said Tuesday's EU requirements "are consistent with those set out in the prospectus published on June 18" and that the lender "continues to make good progress in implementing the commitments" of its restructuring plan. Bank of Ireland is alone among the country's six largest lenders in escaping government control, after the state agreed July 27 to sell a 34.9% stake to five investors, including Toronto-based Fairfax Financial Holdings Ltd. and WL Ross & Co., the New York- based investment firm, Bloomberg says. The bank was ordered to raise EUR5.2 billion of capital following stress tests in March, Bloomberg recounts. Headquartered in Dublin, Bank of Ireland -- http://www.bankofireland.com/-- provides a range of banking and other financial services. These include checking and deposit services, overdrafts, term loans, mortgages, business and corporate lending, international asset financing, leasing, installment credit, debt factoring, foreign exchange facilities, interest and exchange rate hedging instruments, executor, trustee, life assurance and pension and investment fund management, fund administration and custodial services and financial advisory services, including mergers and acquisitions and underwriting. The Company organizes its businesses into Retail Republic of Ireland, Bank of Ireland Life, Capital Markets, UK Financial Services and Group Centre. It has operations throughout Ireland, the United Kingdom, Europe and the United States. ========= I T A L Y ========= CELL THERAPEUTICS: Retires Remaining Convertible Debt ----------------------------------------------------- Cell Therapeutics, Inc., has deposited US$11.2 million in cash as trust funds with U.S. Bank National Association, as the trustee of the outstanding 5.75% convertible senior notes, which is an amount sufficient to pay and discharge the entire amount due on the Notes, including accrued and unpaid interest. CTI has now retired all of its outstanding convertible debt. "We have worked diligently over the past five years to restructure, exchange, and retire all of our convertible debt while continuing to advance our product candidates toward market. The deleveraging of our balance sheet puts CTI in a stronger financial position as we ready for potential product approval in 2012," stated Louis A. Bianco, Chief Financial Officer of CTI. 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 also reported a net loss attributable to CTI of US$53.39 million on $0 of revenue for the nine months ended Sept. 30, 2011, compared with a net loss attributable to CTI of US$62.92 million on $319,000 of total revenues for the same period during the prior year. The Company's balance sheet at Sept. 30, 2011, showed US$62.85 million in total assets, US$33.89 million in total liabilities, US$13.46 million in common stock purchase warrants, and US$15.49 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. Bankruptcy Warning The Company has incurred losses since inception and expect to generate losses for the next few years primarily due to research and development costs for Pixuvri, OPAXIO, tosedostat, brostallicin and bisplatinates. If the Company receives approval of Pixuvri by the European Medicines Agency or the Food and Drug Administration, the Company would anticipate additional commercial expenses associated with Pixuvri operations. Accordingly, the Company will need to raise additional funds and is currently exploring alternative sources of equity or debt financing. The Company may seek to raise such capital through public or private equity financings, partnerships, joint ventures, disposition of assets, debt financings or restructurings, bank borrowings or other sources of financing. However, additional funding may not be available on favorable terms or at all. If additional funds are raised by issuing equity securities, substantial dilution to existing shareholders may result. If the Company fails to obtain additional capital when needed, the Company may be required to delay, scale back, or eliminate some or all of its research and development programs and may be forced to cease operations, liquidate its assets and possibly seek bankruptcy protection. =========== P O L A N D =========== BANK OCHRONY: Fitch Affirms Individual Rating at 'D' ---------------------------------------------------- Fitch Ratings has affirmed Bank Ochrony Srodowiska's (BOS) Long- term Issuer Default Rating (IDR) at 'BBB' with a Stable Outlook. BOS's IDRs and Support Ratings are based on Fitch's view that support could be provided to the bank by the Polish state given the quasi-governmental status of major shareholders and the bank's significant role in financing environmentally-friendly projects in Poland. The IDRs also take into consideration the fact that government control is through state-owned funds, rather than as a result of direct ownership. BOS is planning an SPO in 2012 (about PLN350 million) to fund loan growth and Fitch understands that the current state-owned shareholders will not participate in capital injections but will retain a majority stake in BOS. Fitch will reassess the impact of the potential changes in BOS's shareholder and capital structure on its view on support available to the bank after the SPO is completed. The Viability Rating reflects the bank's below average profitability, risks embedded in its foreign-currency retail mortgage book and the modest coverage of impaired loans. This is balanced by acceptable asset quality and capitalization as well as a diversified funding base and moderate refinancing risks. The bank's growth opportunities and loan performance could come under pressure given a slowdown of the economy in 2012. Fitch notes that new wholesale funding raised this year (mainly EUR250 million Eurobonds), coupled with intensive deposit acquisition have weakened the bank's margins. However, the bank has improved the currency and maturity profile of its funding base. At end-Q311, BOS had around a 1.3% share of the total banking sector's assets and deposits. The bank's shares have been listed on the Warsaw Stock Exchange since 1997. At end-Q311, BOS was about 97% indirectly owned by the state, with the National Fund for the Protection of Environment and Water Resource Management (NFOSiGW, fully state-owned) the majority shareholder (79.1%). The rating actions are as follows: -- Long-term foreign currency IDR: affirmed at 'BBB'; Outlook Stable -- Short-term foreign currency IDR: affirmed at 'F3' -- Viability Rating: bb -- Individual Rating: affirmed at 'D' -- Support Rating: affirmed at '2' -- Support Rating Floor: affirmed at 'BBB' =============== P O R T U G A L =============== BANCO ESPIRITO: S&P Lifts Rating on Guaranteed Sr. Debt From 'BB' ----------------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term issue rating on government guaranteed senior debt issue of Portuguese bank Banco Espirito Santo S.A. (BB/Negative/B) to 'BBB-' from 'BB' and placed the rating on CreditWatch with negative implications. "Due to an administrative error, the rating on the issue was lowered at the time of our latest rating action on Banco Espirito Santo S.A. on Dec. 16, 2011. Because the Republic of Portugal (BBB-/Watch Neg/A-3) guarantees the issue, we rate it at the same level as the long-term rating on the sovereign," S&P said. Ratings List Upgraded; CreditWatch Action To From Banco Espirito Santo S.A. EUR1.5 billion 3.75% guaranteed notes due 01/19/2012* BBB-/Watch Neg BB *Guarantor: Republic of Portugal ========= S P A I N ========= FTPYME TDA: Fitch Affirms Rating on Series 3SA Notes at 'BBsf' -------------------------------------------------------------- Fitch Ratings has downgraded FTPYME TDA Sabadell 2, FTA's series 1CA and 1SA notes and simultaneously removed them from Rating Watch Negative (RWN). Fitch has also affirmed the series 2SA and 3SA notes, as follows: -- EUR18,008,892 Series 1CA (ISIN: ES0339844005): downgraded to 'AA-sf' from 'AAAsf'; Outlook Stable -- EUR24,405,344 Series 1SA (ISIN: ES0339844013): downgraded to 'AA-sf' from 'AAAsf'; Outlook Stable -- EUR8,536,616 Series 2SA (ISIN: ES0339844021): affirmed at 'BBBsf'; Outlook Stable -- EUR5,955,779 Series 3SA (ISIN: ES0339844039): affirmed at 'BBsf'; Outlook Negative The series 1CA and 1SA notes were originally placed on RWN on 6 October 2011 due to the transaction's exposure to Banco de Sabadell ('BBB+'/RWN/'F2'), the swap counterparty. Following the downgrade of Banco de Sabadell to below 'A'/'F1' on June 29,2011, Fitch considered the bank ineligible for the role of the swap counterparty and unable to support a note rating of 'AA-sf' or higher. Additionally, Fitch expected remedial actions outlined in the transaction documentation to be taken within 30 calendar days of Banco de Sabadell becoming ineligible. Banco de Sabadell continues to fulfill the role of swap counterparty while no remedial actions have occurred to date. According to the swap agreement, FTPYME TDA Sabadell 2, the issuer, pays interest received on the performing collateral less a margin of 0.50% to Banco de Sabadell, the swap counterparty. In return, the issuer receives the weighted average coupon on the notes. The swap is beneficial to the transaction as the issuer receives a net positive payment from the swap. As a result of the lack of remedial actions, Fitch assessed the materiality of the swap agreement to the transaction which led to the downgrade of the two most senior series of notes. The Kingdom of Spain ('AA-'/Negative/'F1+') guarantees the timely interest and principal payment of series 1CA notes. However, as the series 1CA notes can withstand the agency's 'AA-sf' rating stress scenario without the benefit of the guarantor the agency has assigned a Stable Outlook to these notes. Since the last surveillance review in August 2011, current default levels in the collateral portfolio have decreased to EUR4.57 million from EUR4.72 million and account for 8.0% of outstanding portfolio balance in the October 2011 investor report. Loans delinquent by more than 90 days have increased significantly since the last review to EUR1.3 million from EUR0.4 million. The 90+ delinquency rate 2.3% of the outstanding balance while loans more than 180 days in arrears account for 1.2% of outstanding balance. Overall, loans 180 days past due have increased to EUR0.69 million from EUR0.13 million since the last surveillance review. The Negative Outlook for the class 3SA notes reflects their lower position in the capital structure and greater sensitivity to single obligor exposure. Additionally, the transaction contains significant exposure to real estate and construction industries which currently accounts for 31% of the outstanding portfolio balance. Fitch considers these parameters, combined with the agency's expectation that the transaction will amortize sequentially in the near term due to a breach of the 90+ delinquency trigger, could expose the class 3SA notes to tail risk. FTPYME TDA SABADELL 2, FTA is a cashflow securitization of loans to small and medium sized Spanish enterprises (SMEs) granted by Banco de Sabadell. The series 1CA notes are backed by a guarantee from the Kingdom of Spain. SACYR VALLEHERMOSO: Staves Default After Repsol Purchases Stake --------------------------------------------------------------- Miles Johnson at The Financial Times reports that Sacyr Vallehermoso, one of the driving forces behind Spain's decade long construction bubble, has been saved from a last minute default after oil group Repsol purchased EUR2.57 billion of its own shares from the indebted builder. Sacyr, which had been racing to refinance a EUR4.9 billion bank loan used to buy 20% of Repsol at the top of the market, was left with no other option but to sell half of its stake back to the company at a discount ahead of Tuesday's deadline, the FT says. Repsol, facing the possibility that Sacyr's lending banks would seize the shares triggering a disorderly fire sale, said that it preferred to use part of the EUR5.6 billion of cash on its balance sheet to buy them, with the aim of selling them on to an industrial investor, or remunerating shareholders. Sacyr, which sold to Repsol at EUR21.06 a share, or a 5% discount to Monday's close, as cited by the FT, said it had secured a three year extension on the EUR2.3 billion remainder of the debt. This would allow it to retain 10% of Repsol with the hope of later erasing some of the EUR940 million in capital losses already incurred on an investment made at an average price of EUR26.7 a share, the FT states. A late attempt by Sacyr, advised by Lazard, to sell half its Repsol stake to China's Sinopec failed after time ran out to tempt the state-controlled oil company to buy before the loan expired this week, the FT recounts. According to the FT, several banks, including Citigroup and Credit Agricole, had demanded that Sacyr pay back all or some of the loan, prompting Sacyr to hire advisers to find a buyer willing to pay a premium over the market price for the holding. It was not clear on Tuesday whether a small number of distressed debt investors which purchased part of the loan in the open market would be repaid alongside the dissenting banks, the FT notes. Sacyr Vallehermoso is a Spanish construction company based in Madrid. * VALENCIA REGION: Moody's Downgrades Debt Rating to 'Ba1' ---------------------------------------------------------- Moody's Investors Service has downgraded the Region of Valencia's debt rating by two notches to Ba1 from Baa2. At the same time, the region's short-term debt rating has been downgraded to Not- Prime from Prime-3. The ratings remain on review for downgrade. The rating downgrades are based on Valencia's growing liquidity problems, illustrated by the region's difficulties in refinancing its retail bond issued in December 2010. The region's funding problems have recently been exacerbated by the de-leveraging of European banks and the closure of long-term capital market funding for most Spanish sub-sovereigns. In addition, the ratings of these government-related issuers/issuances have also been downgraded: - Instituto Valenciano de Finanzas: debt ratings downgraded to Ba1 from Baa2, in line with the Generalitat de Valencia's downgrade; rating under review for downgrade. - Notes of CACSA and Universities of Valencia (Universidad de Valencia, Universidad de Alicante, Universidad Jaume 1 de Castellon and Universidad Politecnica de Valencia): downgraded to Ba1 from Baa2; rating on review for downgrade. - Notes of Feria Valencia: underlying rating downgraded to Ba1 on review for downgrade from Baa2 negative (A and B Certificates); the rating of Feria Valencia's notes remains at Aa3/negative, in line with the financial guarantee provided by Assured Guarantee (Europe) Ltd (formerly, Financial Security Assurance (UK) Ltd). RATIONALE FOR THE DOWNGRADE Although Moody's recognizes that the Region of Valencia's solvency remains acceptable despite some recent deterioration, the region's growing liquidity problems have become more pronounced in the last few months due to wider market confidence problems in the euro area. As a result, Valencia's recourse to short-term funding has weakened, increasing refinancing risk in the short term. In its assessment of the region's liquidity position and overall creditworthiness, Moody's believes that the region displays the following characteristics that are no longer compatible with an investment-grade rating: (i) The region is facing large and concentrated debt repayments in the next 12 months. These include EUR1.8 billion this month and around EUR2.3 billion in 2012 (or 20% of its operating revenue). (ii) The region's extensive use of short-term credit lines, of which only 19% was available for drawdown at the end of November 2011. In light of the region's expected large cash outflow in December -- double its payroll being paid this month -- Moody's anticipates that the region will be left with a limited amount of unused credit facilities by the end of the year. Moreover, the region's reliance on bank lines has increased further due to little investor appetite for Valencia's Euro Commercial Paper Programme, where debt outstanding decreased to EUR68 million from EUR1.3 billion two years ago. (iii) With approximately EUR1.0 billion subscribed, the retail bond issuance launched to refinance the region's large debt repayments in December will not be sufficient. This will force the region to urgently negotiate additional funding facilities with the banks. FOCUS OF THE REVIEW During the review, Moody's will monitor Valencia's progress and cost of refinancing and its impact on the region's overall debt profile. Moreover, the rating agency will focus its review in assessing the region's ability to ensure sustainable funding over time, including any potential supportive measures initiated by the central government. Finally, Moody's will assess the region's progress towards fiscal consolidation in order to limit the region's deficit for 2011-12. In particular, Moody's will monitor the evolution of the region's commercial debt, which could lead to a deterioration in the region's credit profile if increased significantly. METHODOLOGIES USED The methodologies used in this rating were Regional and Local Governments Outside the US published in published in May 2008, and The Application of Joint Default Analysis to Regional and Local Governments published in published in December 2008. Moody's methodology for rating a security insured by a financial guarantor considers the higher of: (i) the guarantor's rating; and (ii) the underlying rating of the security. =========== S W E D E N =========== SAAB AUTOMOBILE: Pang Da Halts Bid; Breakup Looms ------------------------------------------------- Melanie Lee at Reuters reports that China's Pang Da Automobile Trade said on Wednesday it would halt its attempt to acquire Saab Automobile in light of the Swedish carmaker's bankruptcy. Saab was declared bankrupt by a court on Monday, ending a nine- month survival battle by its Dutch owner, Reuters recounts. "In view of Saab being declared bankrupt, Pang Da Automobile Trade has decided to stop the acquisition transaction of Saab," Reuters quotes Pang Da as saying in a statement to the Shanghai stock exchange. Pang Da said in the statement that it would follow relevant procedures to try and retrieve the EUR45 million (US$59 million) advance it had given to Saab, but warned that it may not be successful, Reuters relates. Dow Jones' Daily Bankruptcy Review reports that Victor Muller, the chief executive of Saab, insists there's hope for the Swedish company. Breakup Ola Kinnander at Bloomberg News reports that Saab Automobile's assets may be broken up and sold to pay debt as the unprofitable Swedish company ends more than six decades of carmaking following a bankruptcy filing. Bloomberg relates that parent company Swedish Automobile NV said in a statement on Monday that Saab Auto submitted the application at Vaenersborg District Court after a potential Chinese partner wasn't able to provide funding while General Motors Co., a former owner, said it would block the proposed tie-up. The court said in an online statement that it accepted the petition and appointed two Gothenburg, Sweden-based attorneys, Hans Bergqvist and Anne-Marie Pouteaux, as administrators, Bloomberg discloses. Mr. Muller said that he received "two or three" expressions of interest on Monday from potential buyers, and that he'll refer them to the bankruptcy administrator that the court appoints. The Swedish carmaker's production lines have been largely suspended since March as the company fell behind on paying suppliers, Bloomberg recounts. Warranties Meanwhile, Detroit News' David Shepardson reports that General Motors Co. said Tuesday it will extend warranty coverage to owners of thousands of Saab vehicles sold before February 2010, while Saab's North American board met to decide its next steps. Saab North America, which is based in Royal Oak and has about 50 employees, said it is halting warranty coverage on current vehicles and models for sale at dealerships in the wake of Monday's bankruptcy filing by its parent Saab Automobile AB in Sweden, Detroit News discloses. Detroit News relates that Saab spokeswoman Michele Tinson said the company has also stopped dealer incentive payments for vehicles at showrooms. Only a few thousand Saab vehicles are at its 188 U.S. dealer showrooms, Detroit News notes. According to Detroit News, GM spokesman Jim Cain said GM is working to notify Saab customers that it will step in. GM, as cited by Detroit News, said that Saab has about 48,000 vehicles registered in the United States. Most of those would be covered by GM's warranties, Detroit News says. GM sold Saab to Dutch luxury automaker Spyker in February 2010, one of four brands it off-loaded in bankruptcy, Detroit News recounts. As reported by the Troubled Company Reporter-Europe on Dec. 20, 2011, Bloomberg News related that Saab won protection from creditors in September and has been seeking funding since then. Guy Lofalk, Saab's court-appointed administrator, applied on Dec. 7 to end the reorganization, saying the carmaker was out of money and had no realistic hope of gaining financing soon, Bloomberg recounted. Mr. Muller said on Dec. 7 that Saab Automobile was in talks with Jinhua, China-based Zhejiang Youngman Lotus Automobile and a Chinese bank to secure about EUR600 million in loans, Bloomberg related. GM, which retains a say in Saab's future because of the companies' technology ties, said Dec. 17 that it couldn't support proposed alternatives as they "are not meaningfully different" from previous plans the Detroit-based carmaker had rejected on the grounds they would hurt the U.S. company, Bloomberg noted. There is still a possibility for Saab to be rescued in one piece if a "viable investor" steps in. Mats Faegerhag, Saab's product development chief, as cited by Bloomberg, said "But that would have to happen quick, in a few weeks, because our employees will be looking for other jobs." Saab Automobile AB is a Swedish car manufacturer owned by Dutch automobile manufacturer Swedish Automobile NV, formerly Spyker Cars NV. ============= U K R A I N E ============= MORYE: Crimean Court Extends Bankruptcy Procedure Through Jan. 2 ---------------------------------------------------------------- UkrainianJournal.com reports that a Crimean court extended a bankruptcy procedure for Morye, which is in the middle of implementing US$350 million contract for China. The Crimean Economic Court extended the procedure through January 2, 2013, UkrainianJournal.com relates. The ruling was issued on December 14, UkrainianJournal.com discloses. UkrainianJournal.com notes that Interfax said the court also extended powers of the manager -- Morye shipyard director general Vitaliy Kryvenko -- and powers of property manager Roman Marchenko. Morye is a Feodosia-based shipyard. =========================== U N I T E D K I N G D O M =========================== CLEARY DOYLE: NAMA Places Firm Into Receivership ------------------------------------------------ The Irish Times reports that Cleary Doyle blamed collapsing land values, falling revenues and the failure of some clients to pay it for National Asset Management Agency (NAMA)'s decision to place it in receivership. "Like other construction businesses, we have been severely affected by the unprecedented impairment in land and property values. This has been compounded by unpaid debts as a result of client receiverships and liquidations," the report quoted the group as saying. "These problems have been further exacerbated by the problems arising from the falling workload in public and private contracting and the stalled property sector," the company added, The Irish Times relates. Cleary Doyle is a Wexford building group. COVENTRY & RUGBY: S&P Affirms 'BB+' Rating on GBP407.2-Mil. Bonds ----------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB+' long-term issue rating on the GBP407.2 million senior secured bonds due 2040 issued by U.K.-based special-purpose vehicle The Coventry & Rugby Hospital Co. PLC (CRH). "At the same time, we removed the issue rating from CreditWatch, where it was placed with negative implications on Aug. 24, 2011. The outlook is stable," S&P said. The bonds retain an unconditional and irrevocable guarantee of payment of scheduled interest and principal provided by monoline insurer MBIA U.K. Insurance Ltd. (MBIA U.K.; B/Negative/--). Under Standard & Poor's criteria, a rating on monoline-insured debt reflects the higher of the rating on the monoline and Standard & Poor's underlying rating (SPUR). In this case, the rating on the bonds reflects the SPUR, as it is higher than the current rating on MBIA U.K. The affirmation follows CRH's appointment of Vinci Facilities (VF) as the new hard facilities management (FM) services provider to the hospital facilities in Walsgrave, in the West Midlands, from Dec. 1, 2011. VF's appointment follows a review of the position of Skanska Facilities Services (SFS), the previous hard FM services provider, by CRH and University Hospitals Coventry and Warwickshire National Health Service Trust (UHCWT). This review was prompted by a significant service failure involving a pathology lab that failed its annual verification test early this year. SFS did not immediately inform either CRH or UHCWT about this failure. "We understand that while the services provided by VF are exactly the same as those provided by SFS, VF's annual fee is lower. In addition, from 2026, the annual fee will be escalated at the rate of the retail prices index (RPI), rather than RPI plus 1% as is the case until 2026, and as was the case with SFS' fee throughout the concession. These savings will flow largely to CRH over the remaining life of the concession. We have not yet received an updated financial model from CRH incorporating these changes. However, we have attempted to replicate the effect of the savings by incorporating our own adjustments into the last model update from June 2011 to reflect our understanding of the new agreement. Although the savings are cumulatively meaningful, we do not anticipate that overall, they will have a significant bearing on the project's forecast annual debt service coverage ratios," S&P said. Under a private finance initiative, CRH used the bond proceeds to design, build, equip, and maintain hospital facilities at Walsgrave under a 40.2-year concession agreement with UHCWT and Coventry Teaching Primary Care Trust. The latter's obligation has since been transferred to the Coventry and Warwickshire Partnership Trust. "We could lower the rating if the relationships between the project's participants deteriorate materially; if service failure points rise significantly; or if warning notices are issued. Downward pressure could also arise if the project's financial profile comes under pressure from an escalation in costs or reduced income, such as materially lower interest income than presently forecast," S&P said. "We could take a positive rating action if the project's financial profile improves materially, such as through the realization of significant reductions in costs or expenditures that do not have a substantially negative bearing on service provision or on the condition of the estate," S&P said. CUMBRIAN SEAFOOD: Jobs at Fish Factory Under Threat --------------------------------------------------- Matthew Legg at News&Star reports that more than 100 jobs at Cumbrian Seafood Limited's west Cumbrian fish factory remain under threat despite the company being rescued from administration two weeks ago. As reported in the Troubled Company Reporter-Europe on Dec. 7, 2011, The Northern Echo said that Cumbrian Seafood has been acquired by a unit of Lion Capital, the owner of Young's Seafood Limited, out of administration. The company went into administration on the morning of Dec. 5 and was immediately bought in the evening, according to The Northern Echo. The report related that administrators confirmed that Cumbrian Seafood's business, customer contracts and equipment were sold to Lion Capital's subsidiary. However, the report notes, that Young's has since admitted it has yet to decide on the future of the site or its sister operations in Seaham, County Durham, and Amble, in Northumberland. News&Star relates that the firm is currently assessing options, which could include transferring work away from those centers to other sites in the Young's empire. Seaham-based Cumbrian Seafood Limited is a seafood supplier. The firm employs 378 people at Seaham, while the two remaining sites in Whitehaven, Cumbria and Amble, Northumberland employ 117 and 79 respectively. HEALTHCARE LOCUMS: Set to Appoint New Advisors ---------------------------------------------- Jonathan Russell at The Telegraph report that Healthcare Locums is to announce a clear out of its professional advisors. The company is to reveal new auditor, lawyer and nominated advisor and broker. Auditor BDO is in line to be replaced by Deloitte, the Telegraph discloses. Either Numis Securities or Investec are being lined up to replace current broker and nominated advisor Fairfax and it is understood a senior City law firm will replace Lawrence Graham, according to the Telegraph. The overhaul of the company's advisors comes almost a year after HCL suspended trading in its shares after uncovering "serious accounting irregularities," the Telegraph notes. Founder and executive vice chairman Kate Bleasdale and finance director Diane Jarvis were immediately suspended, the Telegraph discloses. Ms. Bleasdale was later sacked, the Telegraph recounts. According to the Telegraph, the fall out from the problems at HCL has led to a widespread investigation by the Accountancy and Actuarial Discipline Board. The AADB is looking into work carried out by BDO and three qualified accountants, including Ms Jarvis, who sat on the HCL board, the Telegraph says. The investigation will look at how incorrect accounts were used to negotiate a GBP130 million refinancing with two Australian banks in 2010, the Telegraph notes. Shares in HCL were suspended in January at 112p, the Telegraph recounts. Trading resumed in September after an emergency refinancing, the Telegraph relates. As reported by the Troubled Company Reporter-Europe on Oct. 4, 2011, The Financial Times related that Healthcare Locums restated profit figures for a disputed six-month period in 2010. The Aim- quoted company last year reported interim pre-tax profits of GBP6.8 million for the first half of 2010, the FT disclosed. The FT noted that in September 2011, that figure was revised to GBP3.5 million "in order to comply with accounting policies". Healthcare Locums is a UK-based medical recruitment agency. NORTHERN ROCK: S&P Raises Rating on Tier One Notes to 'BB+' ----------------------------------------------------------- Standard & Poor's Ratings Services raised the rating on the 7.053% callable perpetual Tier One Notes (TONs) issued by Northern Rock (Asset Management) PLC (NRAM; A/Stable/A-1) to 'BB+' from 'C'. This rating action follows the completion of the tender offer launched on Nov. 16, 2011 by NRAM and Bradford & Bingley PLC (B&B; --/--/A-1) for 16 of their Tier 1 and Tier 2 issues, including the TONs. The counterparty credit ratings on NRAM and B&B are unaffected, as are the issue ratings on their other bonds. "On Nov. 18, 2011, we said that we viewed the tender offer for the TONs as 'distressed' under our criteria, and we accordingly lowered the issue rating on the TONs to 'C' (see 'Northern Rock (Asset Management) PLC Tier One Notes Lowered To 'C' On Announced Tender Offer'). We said that we would review this issue rating following completion of the tender offer if any TONs remained outstanding," S&P said. On Dec. 15, 2011, NRAM announced that it had accepted all GBP79.751 million in aggregate principal amount of TONs tendered for purchase under the offer. Following this purchase, the principal amount of TONs outstanding is GBP30.674 million. "We have reviewed the issue rating on the remaining TONs in light of the completion of the tender offer, and have decided to raise it to 'BB+'. In line with our criteria for hybrid instruments, this rating level is two notches below NRAM's 'bbb' stand-alone credit profile. The rating reflects our view that NRAM is likely to continue to pay TONs coupons for the foreseeable future because we understand that they are deferrable only if NRAM breaches its minimum regulatory capital requirement. We also note that the tender offer has increased NRAM's equity base, which is junior to the TONs, and reduced the outstanding amount of dated subordinated debt, which is senior to the TONs. Nevertheless, we continue to see material uncertainty regarding NRAM's ability to repay perpetual subordinated obligations such as the TONs in full when the wind down of its balance sheet has been concluded. We expect that this wind down process will take many years to complete," S&P said. Ratings List To From Northern Rock (Asset Management) PLC GBP30.674 mil. 7.053% callable perp core tier one nts hybrid BB+ C PADDINGTON HOUSE: Goes Into Administration, Seeks Buyer ------------------------------------------------------- This is Cheshire News reports that Paddington House Hotel has gone into administration and with administrators from Baker Tilly were appointed to sell the last month, along with two partner hotels in Salford and Chester. Bosses say it is continuing to trade but joint administrator Russell Cash said it is unlikely the bill will be paid, according to This is Cheshire News. The report notes that the company has owed numerous suppliers. "It is unlikely that there will be any funds available to pay a dividend to unsecured creditors in this case. All suppliers who are continuing to support the continued trading strategy will be paid for all orders placed by the administrators. We are continuing to trade each of the hotels, have received a number of expressions of interest and are hopeful of achieving going concern sales in the New Year," the report quoted Mr. Cash as saying. WEDGWOOD MUSEUM: To Sell Collection to Plug GBP134MM Shortfall -------------------------------------------------------------- The Sentinel reports that a High Court judge has ruled that the Wedgwood Museum 10,000-piece collection is not held by the Barlaston museum in trust and can be sold off to help plug a GBP134 million pension fund shortfall. Members of the Wedgwood family and museum trustees say they are "devastated" and have vowed to mount a campaign to make sure it can be kept on public display, according to The Sentinel. The report recalls that the museum went into administration in April 2010 after being hit with a GBP134 million claim from Wedgwood Group Pension Plan. The Sentinel recalls that when Wedgwood itself went into administration the previous year, it was thought the scheme would be taken over by the Pension Protection Fund. However, the report relates that the PPF could not accept it as there is still a surviving solvent organization connected to the scheme -- the Wedgwood Museum. Administrators for the museum, Begbies Traynor, sought a High Court ruling to determine the collection's future, The Sentinel notes. The report relates that the court was told the collection is worth between GBP11.5 million and GBP18 million which falls well short of the GBP134 million fund deficit. Administrators will now wait to see if the Attorney General appeals against the decision, but Bob Young, from the firm's Caverswall office, said there are options that could keep the collection together at Barlaston, the report adds. * UK: Consumer Sector Insolvencies Expected to Rise --------------------------------------------------- Louise Lucas and Claer Barrett at The Financial Times report that cash-strapped Brits' reluctance to spend is set to push a record number of shops, food manufacturers and gyms over the edge next year -- triggering a downward spiral of more job losses that will crimp spending further. One in five businesses in food manufacturing, and the hospitality and tourism industries is on insolvency alert, according to accountancy firm RSM Tenon's analysis of Companies' House data, as well as one in eight retailers, the FT discloses. Alan Hudson, head of restructuring for UK and Ireland at Ernst & Young, believes the number of insolvencies next year will exceed 2008, the peak year to date, the FT relates. "A lot of businesses that have been supported are now struggling to perform. With a further downturn, a lot of these zombie companies are going to find it increasingly difficult to survive," the FT quotes Mr. Hudson as saying. He points to pressures on the cost side -- wage inflation, higher utility bills and property costs -- as well as consumer thriftiness, the FT notes. Retailers' pain is exacerbated by the UK's skewed policy on rents, the FT states. Shopkeepers also suffer from tortuously long supply chains, according to the FT. Among leisure companies, the most vulnerable are those exposed to the consumer slowdown in the provinces, where the brunt of the government's austerity measures are being felt, the FT states. UK hotels with exposure in the provinces face a particularly tough 2012, the FT discloses. HVS, the leisure consultancy, has warned that it is "vital" for hotel groups to find new sources of debt funding, the FT notes. "Banks with loans that need refinancing will either continue to 'extend and pretend' or lose patience and force a sale, possibly via insolvency," the FT quotes Tim Smith, director of HVS, as saying. Other retailers avoid administration by using a CVA to close stores and reduce costs, the FT notes. Merger and acquisition opportunities for distressed companies are limited, according to the FT. Private equity buyers are struggling to obtain debt and cross-border deals are expected to falter in the face of the eurozone crisis, the FT discloses. =============== X X X X X X X X =============== * EUROPE: Almunia Warns of More Bank Restructurings in 2012 ----------------------------------------------------------- Dow Jones' Daily Bankruptcy Review reports that bank restructuring cases won't decline in 2012 and the European Union will continue to face a heavy workload in clearing them by its new rules on state aid for the bailout of financial institutions, Joaquin Almunia, the EU competition commissioner said. * EUROPE: Plans for Failing Banks Expected in 2012, Barnier Says ---------------------------------------------------------------- Jones Hayden at Bloomberg News reports that European Union Financial Service Commissioner Michel Barnier said plans for failing banks probably will be tabled at the beginning of 2012. * EUROPE: Moody's Says Outlook on 2012 CLOs Negative ----------------------------------------------------- US collateralized loan obligations (CLOs) issued in 2012 will have a strong credit profile, according to a new report from Moody's Investors Service. Moody's has a stable outlook for the performance of outstanding US CLOs and a negative outlook for the performance of European CLOs. New issuance of CLOs in 2012 will continue to originate primarily in the US because of challenging economic conditions in Europe. Features in new US CLOs will offer more protection for debt investors than did features in pre-credit crisis transactions; hence, post-crisis CLO structures will better withstand another downturn. "This increased protection includes strong subordination, tight investment constraints, and enhanced documentation provisions, which Moody's expects will mirror the attributes of typical 2011 US CLOs," says Moody's Senior Vice President Danielle Nazarian. Moody's stable outlook for outstanding US CLOs reflects a low corporate default rate forecast and stable to positive rating outlooks for speculative-grade issuers. US leveraged loan issuers have significantly improved their balance sheets and pushed back loan maturity schedules, supporting a stable outlook for the primary collateral backing CLOs. Nonetheless, while the risk of recession in the US remains low, continued stress in the euro area and high volatility in the financial markets will tighten funding for leveraged loan issuers, presenting moderate downside risks to US CLO performance. The outlook for outstanding European CLOs is negative primarily because of the rising risk of recession in the euro area. "The European sovereign debt crisis has tightened funding from the financial markets, increasing refinancing risk for speculative- grade companies, and particularly for companies with ratings at B3 or below. This will negatively affect European CLO collateral," says Moody's Vice President Guillaume Jolivet. However, a number of positive factors help mitigate the risk to CLOs of the European sovereign debt crisis. CLOs continue to deleverage at a fast pace as more than half of the outstanding US CLOs and European CLOs will be in their amortization periods by the end of 2012. Additionally, built-in cash flow diversion mechanisms in CLOs will further offset potential performance deterioration by triggering deleveraging. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- 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 * * *