/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/120113.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Friday, January 13, 2012, Vol. 13, No. 10 Headlines C Z E C H R E P U B L I C AHOLD CZECH REPUBLIC: Brno Court Commences Insolvency Proceedings DENDRA BRECLAV: In Insolvency Proceedings HAAS & CZJZEK: Court Okays Asset Sale; March 15 Bid Deadline Set SAZKA AS: Administrator to Use Sale Proceeds to Repay BNY Mellon D E N M A R K TORM A/S: Creditors Mull Split-Up of Operations F R A N C E SEAFRANCE: DFDS Emerges as Leading Bidder for Calais Ferry Route G R E E C E * Holders of Greek Debt to Be Asked to Accept 60% Haircut H U N G A R Y MOL HUNGARIAN: Fitch Says Ratings Unaffected by Hungary Downgrade I R E L A N D FALLON & BYRNE: High Court Confirms Appointment of Examiner TREASURY HOLDINGS: NAMA Set to Appoint Receivers to Properties L U X E M B O U R G ARCELORMITTAL: Files Insolvency Papers for Steelworks Plant P O L A N D EILEME 1 AB: Moody's Assigns 'B1' CFR; Outlook Stable U N I T E D K I N G D O M CONCEPT VEHICLES: Johnsons Cars Buys Firm Out of Administration LINCOLNSHIRE PRIME: In Administration, Owes GBP1.4 Million Debt MONUMENTAL GAMES: In Administration, Lays Off Remaining Staff ROYAL BEACON: Hotel in Administration, May be Put Up for Sale W J HARTE: In Brink of Administration, 700 Jobs at Risk X X X X X X X X * BOOK REVIEW: Fraudulent Conveyances ********* =========================== C Z E C H R E P U B L I C =========================== AHOLD CZECH REPUBLIC: Brno Court Commences Insolvency Proceedings ----------------------------------------------------------------- CTK, citing the insolvency register, reports that the Regional Court in Brno on Wednesday started insolvency proceedings with retailer Ahold Czech Republic on the proposal of Liberec-based firm Zanap to which Ahold reportedly owes more than CZK6 million. According to CTK, Simona Caidlerova of Ahold said that Zanap's proposal is unjustified and unsubstantiated. Zanap, which produces equipment for restaurants and provides services for them, wants from Ahold over CZK3.75 million for unpaid invoices for services, control and maintenance, plus over CZK0.5 million in interest and fines and CZK1.75 million for lost profits, CTK discloses. Ahold Czech Republic, a. s. (a. s. standing for "akciova spolecnost" -- equivalent of joint stock company) is a division of the Netherlands-based Ahold company, operating in the Czech republic. They are responsible for running the supermarket chain Albert and the hypermarket Hypernova, totalling about 300 locations. DENDRA BRECLAV: In Insolvency Proceedings ----------------------------------------- CTK reports that Dendra Breclav is currently in insolvency proceedings. According to CTK, co-owner Ales Rylich said that rising input prices and the failure to sign contracts in a tender declared by the state-run forest management company Lesy CR for this year are behind the firm's insolvency. Dendra Breclav is a Czech sawmill. HAAS & CZJZEK: Court Okays Asset Sale; March 15 Bid Deadline Set ---------------------------------------------------------------- CTK, citing data in the insolvency register, reports that assets of bankrupt Haas & Czjzek - Prvni porcelanova manufaktura v Cechach will be sold in a public tender upon decision of the Regional Court in Plzen. According to CTK, the court's verdict follows the approval of the method of sale by the creditor committee. Prospective buyers are invited to submit price bids for parts or for the entire company until March 15, CTK discloses. Their offers will be assessed a day later, CTK notes. An expert appraisal (of all movable and immovable assets, claims, trademarks) puts the basic price at CZK23.5 million, CTK states. Haas & Czjzek - Prvni porcelanova manufaktura v Cechach is a china manufacturer. SAZKA AS: Administrator to Use Sale Proceeds to Repay BNY Mellon ---------------------------------------------------------------- CTK reports that Josef Cupka, insolvency administrator of Sazka AS, has proposed to a court that CZK567 million obtained from the sale of the company be paid to Sazka's creditor The Bank of New York Mellon. The bank's secured claim against Sazka amounts to nearly CZK5 billion, CTK discloses. Mr. Cupka's spokeswoman Lenka Ticha told CTK that the insolvency administrator has decided to pay out Sazka's creditors. Sazka AS is a provider of lotteries and sport betting games in the Czech Republic. ============= D E N M A R K ============= TORM A/S: Creditors Mull Split-Up of Operations ----------------------------------------------- Frances Schwartzkopff at Bloomberg News, citing Jyllands-Posten, reports that Torm A/S may be split up in two by the company's creditors. According to Bloomberg, the Viby, Denmark-based newspaper said that the creditors are considering separating Torm's healthy operations into one entity and putting its struggling operations into a second. As reported by the Troubled Company Reporter-Europe on Dec. 7, 2011, The Financial Times related that creditors of Torm allowed the company to waive many of its loan terms and stop making loan repayments until at least until Jan. 15. The FT disclosed that a group of three of the company's lending banks -- Danske Bank, Danish Ship Finance and Nordea -- also announced that they had formed a committee to negotiate a solution to the problems of the company, which said on Nov. 17 it needed US$300 million in new capital. Torm, like other tanker operators, is struggling in the face of a decline in tanker earnings brought on by a significant oversupply of ships, the FT said. The company also took on significant extra debt in 2007 to finance the purchase of its share of OMI, a US-listed tanker operator that it took over jointly with Teekay, another US-listed tanker operator, the FT noted. Torm is a Danish oil tanker operator. The company operates about 140 tankers for oil products such as petrol and 10 ships for carrying dry bulk commodities such as iron ore. It is majority owned by the Greek Panayotides shipping family. =========== F R A N C E =========== SEAFRANCE: DFDS Emerges as Leading Bidder for Calais Ferry Route ---------------------------------------------------------------- Andrea Rothman and Gregory Viscusi at Bloomberg News report that French Transport Minister Thierry Mariani said Danish ferry operator DFDS A/S is the lead candidate to take over the Dover to Calais ferry route formerly served by SeaFrance, which is being wound up. DFDS's French ship-owner partner, Louis Dreyfus Armateurs SAS, on Tuesday said it plans to hire 300 workers to serve the Dover- Calais route, Bloomberg relates. According to Bloomberg, DA Chairman Philippe Louis-Dreyfus said that while the venture will "initially" use its own vessels, SeaFrance has three idled ships that could become available. Mr. Dreyfus said in an RTL radio interview that workers hired from SeaFrance would be paid less than in their former posts. DFDS and Louis Dreyfus Armateurs formed a joint venture last year that initially bid to acquire assets of SeaFrance before the proposal was rejected as inadequate by the commercial court of Paris last month, Bloomberg recounts. Mr. Mariani also said on Wednesday that there's no project in place to provide work for all 850 SeaFrance workers, with some likely to take jobs with "whoever buys the company" while others get posts at French state train operator SNCF, the ferry operator's owner. As reported by the Troubled Company Reporter-Europe on Jan. 11, 2012, Bloomberg News related that Groupe Eurotunnel SA said it wants to buy SeaFrance. Eurotunnel Chief Executive Officer Jacques Gounon has written to SeaFrance's administrators seeking to purchase assets and lease them to worker cooperative Scop, which is targeting its own takeover, Bloomberg disclosed. SeaFrance was put into formal liquidation on Monday after the commercial court ruled that there was no valid purchase offer, ending a process that began in November, according to Bloomberg. SeaFrance is the operator of the undersea rail link between Britain and continental Europe. =========== G R E E C E =========== * Holders of Greek Debt to Be Asked to Accept 60% Haircut --------------------------------------------------------- Dow Jones' Daily Bankruptcy Review reports that private investors holding Greek debt will be asked to accept a haircut of around 60% because a previously agreed 50% write-down is no longer seen as sufficient because of the deteriorating Greek economy, people with direct knowledge of the matter said. ============= H U N G A R Y ============= MOL HUNGARIAN: Fitch Says Ratings Unaffected by Hungary Downgrade ----------------------------------------------------------------- Fitch Ratings says that MOL Hungarian Oil and Gas Company Plc's (MOL) ratings are unaffected by the downgrade of Hungary's ratings. In line with Fitch's criteria report, "Country Ceilings", MOL's ratings are currently capped by Hungary's Country Ceiling of 'BBB' rather than the sovereign rating. Hungary's Country Ceiling was downgraded to 'BBB' from 'A-', along with the country's foreign currency Issuer Default Rating (IDR) which was downgraded to 'BB+', from 'BBB-', with a Negative Outlook on 6 January 2012. MOL has Long-term foreign and local currency IDRs of 'BBB-' with Stable Outlooks, Short-term foreign and local currency IDRs of 'F3' and foreign and local currency ratings of its senior unsecured debt of 'BBB-'. While rated above the sovereign government's obligations, MOL's profile does not possess the characteristics that exceptionally can support a rating above the Country Ceiling, and a downgrade of MOL would be automatically triggered if Hungary's Country Ceiling is downgraded below 'BBB-'. The ratings reflect MOL's improved credit metrics in 2010-2011 and the company's plan to fully finance capex from operating cash flow in 2012-2013. Fitch assumes that MOL's management will continue its prudent financial risk policy and would reduce capex in the event of weaker-than-projected cash flow. Fitch believes that MOL's rating headroom nonetheless continues to be limited due to a number of negative developments in the external environment. These include the weak economy and the increased tax burden in Hungary, difficult conditions in European refining and the increased business risk in Syria, an important region for MOL's upstream business. Most likely triggers for a near-term revision to the ratings would arise from a further deterioration of the economic situation in Hungary, or more difficult and costly access to debt markets and bank funding. A negative rating action would also be triggered by MOL's increased financial leverage (funds from operations (FFO) adjusted net leverage at above 2.5x on a through-the-cycle basis) or a material and prolonged deterioration of cash flow from Syria if it were to lead to a weakening of MOL's financial profile. Positively, MOL's geographical exposure is not dominated by the Hungarian economy - the country represented 29% of total group revenue and 50% of EBITDA in 2010. The agency also notes that MOL's two main profit drivers, the crude oil price and crack spreads on refined products, are affected by global factors and not by the domestic economy. MOL's exposure to foreign currency risk is also manageable thanks to a natural hedge between operating cash flow and foreign- currency denominated debt. However, a sharp depreciation of the Hungarian forint (HUF) in a short period of time may worsen credit ratios due to a timing mismatch between operating cash flow and the HUF-equivalent value of foreign-currency denominated debt at the end of a reporting period. At end-September 2011, 71 % of the MOL group's total debt was denominated in euros and 26% in US dollars. MOL's largest shareholder is the Hungarian state, which owns a 23.8% stake following the acquisition of a 21.2% stake from Russia's Surgutneftegas OJSC for EUR1.88 billion in July 2011. Fitch continues to regard MOL as a private company as the state does not control MOL given the 10% voting cap for all shareholders. There have been no changes in MOL's board of directors, strategy, financial or dividend policies since the acquisition in July. The agency believes that decisions by the government -- as MOL's largest, albeit non-controlling, shareholder -- resulting in a material cash outflow could put pressure on the ratings. MOL has sufficient liquidity and a balanced debt maturity profile. MOL does not have large debt maturities in 2012, which reduces the risk of increased borrowing costs. This also lowers the negative cash flow impact of the recent Hungarian forint depreciation related to repayment of foreign-currency denominated debt. ============= I R E L A N D ============= FALLON & BYRNE: High Court Confirms Appointment of Examiner ----------------------------------------------------------- Irish Examiner reports that the High Court has confirmed the appointment of an examiner to Fallon & Byrne. Irish Examiner relates that on Thursday Mr. Justice Brian McGovern said he was satisfied to appoint Neil Hughes, of Hughes Blake, Chartered Accountants, as examiner to the company. Mr. Hughes now has up to 100 days to come up with a scheme of arrangement with the company's creditors, which if approved by the High Court, will allow the firm to continue to trade as a going concern, Irish Examiner says. The examiner can be reached at: Neil Hughes HUGHES BLAKE Joyce House Tel No.: +353 (1) 6699999 Fax No.: +353 (1) 6699777 neil.hughes@hughesblake.ie The company sought Mr. Hughes' appointment on the grounds it is insolvent and unable to pay a EUR1.4 million tax bill, Irish Examiner discloses. However the High Court heard that independent accountant report has said the business has a reasonable prospect of survival if certain conditions, including securing new investment into the country, Irish Examiner notes. Fallon & Byrne is a food business. It runs a restaurant and gourmet food hall on Exchequer Street, Dublin 2. TREASURY HOLDINGS: NAMA Set to Appoint Receivers to Properties -------------------------------------------------------------- Ciaran Hancock at The Irish Times reports that the National Asset Management Agency is preparing to take control of a number of properties in Ireland owned by developer Treasury Holdings, one of the 10 biggest borrowers with the State loans agency. NAMA has issued a demand to Treasury for the repayment of its loans, which last year stood at around EUR900 million, the Irish Times discloses. According to informed sources, NAMA has demanded that the loans be repaid this month, the Irish Times notes. If Treasury does not meet the deadline, NAMA will move to appoint a receiver to certain properties in Ireland, the Irish Times states. Treasury is jointly controlled by Irish businessmen Richard Barrett and Johnny Ronan. Treasury's portfolio of assets in Ireland includes the Spencer Dock development in Dublin's Docklands and the Convention Centre Dublin, which was developed by Treasury and receives an annual subvention from the State, the Irish Times says. However, it was not clear on Wednesday night which properties controlled by Treasury will be affected by NAMA's impending move against the company, according to the Irish Times. It is understood that officials from NAMA met Treasury on Monday to issue their ultimatum, the Irish Times states. The state loans agency appears to have lost patience with Treasury following many months of negotiations to agree a business plan and a term sheet for the loans, the Irish Times says. According to the Irish Times, sources suggested on Wednesday that Treasury was considering seeking an examinership through the High Court in Dublin but this could not be confirmed with the developer. Treasury Holdings is jointly controlled by Irish businessmen Richard Barrett and Johnny Ronan. It controls more than 130 individual real estate projects with a combined value in excess of EUR4.6 billion. =================== L U X E M B O U R G =================== ARCELORMITTAL: Files Insolvency Papers for Steelworks Plant ----------------------------------------------------------- Dow Jones' DBR Small Cap reports that Multinational ArcelorMittal, which holds the controlling stake in Algeria's El Hadjar steelworks, in the eastern region of Annaba, has filed insolvency papers with a court there, Agence France-Presse reported. About ArcelorMittal Luxembourg-based ArcelorMittal -- http://www.arcelormittal.com/ -- is the world's leading steel company, with operations in more than 60 countries. ArcelorMittal is the leader in all major global steel markets, including automotive, construction, household appliances and packaging, with leading R&D and technology, as well as sizeable captive supplies of raw materials and outstanding distribution networks. With an industrial presence in over 20 countries spanning four continents, the Company covers all of the key steel markets, from emerging to mature. In 2008, ArcelorMittal had revenues of $124.9 billion and crude steel production of 103.3 million tonnes, representing approximately 10% of world steel output. ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Brussels (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS). =========== P O L A N D =========== EILEME 1 AB: Moody's Assigns 'B1' CFR; Outlook Stable ----------------------------------------------------- Moody's Investors Service has assigned a first-time B1 corporate family rating (CFR) and probability of default rating (PDR) to Eileme 1 AB (publ), the indirect parent of Polkomtel S.A. Concurrently, Moody's has assigned a provisional (P)B3 rating and loss given default (LGD) assessment of LGD5 to Eileme 2 AB (publ)'s proposed EUR900 million worth of senior subordinated notes due in 2020. The outlook for all the ratings is stable. This is the first time that Moody's has assigned ratings to Polkomtel. Moody's issues provisional ratings in advance of the final sale of securities and these ratings reflect the rating agency's preliminary credit opinion regarding the transaction only. Upon a conclusive review of the final documentation, Moody's will endeavor to assign a definitive rating to the group's proposed EUR900 million worth of senior subordinated notes. The definitive rating may differ from the provisional rating. Ratings Rationale "Although B1 is a speculative-grade rating, Polkomtel's B1 global scale rating reflects its leading position in the Polish mobile market, its track record of generating solid profitability and strong cash flows, and the better growth prospects of the Polish market within the broader European context," says Ivan Palacios, a Moody's Vice President -- Senior Analyst and lead analyst for Polkomtel. "In addition, the B1 rating reflects the potential market share gains derived from the group's plan to offer 4G/LTE services ahead of competition and its good liquidity profile post-transaction," explains Mr. Palacios. "At the same time, the B1 rating reflects Polkomtel's relatively high leverage and its expected slow pace of deleveraging following the debt-financed takeover by Metelem Holding Company Ltd, a financial vehicle majority owned by Polish media entrepreneur Mr. Solorz-Zak," adds Mr. Palacios. The rating also reflects (i) Polkomtel's lack of a fixed-line business; (ii) the challenging competitive environment in Poland; (iii) the group's exposure to foreign currency fluctuations, as around one third of its debt will be denominated in foreign currency while most of its revenues are generated in the domestic currency; and (iv) the increased complexity of the group's structure following its agreement with LTE Group to cooperate in the deployment of a 4G/LTE network. Polkomtel is one of the largest mobile telecommunications operators in Poland (no.1 in terms of revenues and no.2 in terms of customers), a market that enjoys favorable fundamentals derived from higher GDP growth and better demographics than other European countries. However, the Polish market is becoming increasingly saturated and the level of competition is high. Polkomtel competes with strong and well-capitalized competitors, such as PTC (a subsidiary of Deutsche Telekom) and PTK (a subsidiary of France Telecom), while the fourth player in the market, P4, entered the market in 2007 and has rapidly gained market share. Increasing competition, regulatory pressures in the form of lower mobile termination rates and the macroeconomic slowdown have negatively affected Polkomtel's recent operating performance. Polkomtel lacks a fixed-line business, which represents a credit negative when compared with integrated operators. However, the group can offer "fixed" wireless services through its spectrum in the 420-450 Mhz band, as well as high-speed mobile services through the LTE network that it is currently deploying with the LTE Group. This will allow Polkomtel to offer mobile broadband services in new areas of Poland where no broadband is currently available. Moody's expects that Polkomtel will gain market share as it will be the first operator in Poland to offer these high- speed mobile services. Polkomtel has historically maintained a very strong financial profile, with good profit margins, low leverage and strong operating cash flows. However, post-sale, the group's credit metrics will weaken such that its adjusted debt/EBITDA ratio will be around 5.0x and its retained cash flow (RCF)/adjusted debt will be below 15%. The rating assumes that Polkomtel's credit metrics will improve over the medium term such that its adjusted debt/EBITDA remains between 4.5x and 5.0x and its RCF/adjusted debt stays between 10% and 15%. Moody's includes the EUR138 million PIK debt issued at Eileme 1 AB (publ) level in the group's consolidated leverage calculations. The (P)B3 rating on the EUR900 million of senior subordinated notes reflects Polkomtel's high initial leverage and the group's substantial amount of secured bank debt (approximately 68% of total financial debt), which effectively ranks senior to the senior subordinated notes. This debt potentially limits the amount of residual collateral value available to the senior subordinated noteholders in a recovery scenario. The stable outlook factors in that Polkomtel's credit metrics will initially be more weakly positioned for the rating category, with the group's adjusted debt/EBITDA slightly above 5.0x. However, it also reflects Moody's expectation that the company will deleverage to below 5.0x in 2013, while its RCF/adjusted debt ratio will remain between 10% and 15%. In addition, the rating assumes that Polkomtel and other group entities will form a Polish consolidated tax group during 2012 in order to increase tax efficiencies, as indicated by the company. If the group were to fail to do this, its credit metrics could be negatively affected and downward pressure on the rating could arise. WHAT COULD CHANGE THE RATING UP/DOWN Upward pressure on the rating could develop if the company delivers on its business plan, such that its adjusted debt/EBITDA ratio trends towards 4.0x and its RCF/adjusted debt ratio reaches 15% or higher. Conversely, downward pressure could be exerted on the rating if Polkomtel's operating performance weakens such that its adjusted debt/EBITDA does not trend to below 5.0x and the group sustains an RCF/adjusted debt ratio of below 10%. A weakening in the company's liquidity profile (including a reduction in headroom under financial covenants) could also exert downward pressure on the rating. Headquartered in Warsaw, Poland, Polkomtel S.A. is one of the largest mobile telecommunications operators in Poland (no.1 in terms of revenues and no.2 in terms of customers). As of the last 12 months ended September 2011, Polkomtel had 14.2 million customers and generated revenues of PLN7.4 billion (c. EUR1.7 billion) and EBITDA of PLN2.8 billion (c. EUR636 million). In November 2011, the group was acquired by Spartan Capital Holdings Sp. z o.o. (Spartan Holdings), which is controlled indirectly by Mr Zygmunt Solorz-Zak. Principal Methodology The principal methodology used in rating Polkomtel was the Global Telecommunications Industry Methodology published in December 2010. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. =========================== U N I T E D K I N G D O M =========================== CONCEPT VEHICLES: Johnsons Cars Buys Firm Out of Administration --------------------------------------------------------------- Jenny Waddington at Coventry Telegraph reports that Johnsons Cars Ltd has acquired Concept Vehicles out of administration. KPMG was appointed as administrators to the company. Concept Vehicles' 38 employees have been transferred to Johnsons Cars as part of the deal, according to Coventry Telegraph. Concept Vehicles operated two Hyundai dealerships, service and repair shops in Coventry and Sutton Coldfield. Based in Fletchamstead Highway, the company also had a Saab dealership and a servicing and repair shop in Cardiff, employing 52 staff across the three sites. LINCOLNSHIRE PRIME: In Administration, Owes GBP1.4 Million Debt --------------------------------------------------------------- The Online Meat Trades Journal reports that Lincolnshire Prime Meat Company has gone into administration due to financial difficulties that led to a GBP1.4 million debt. Insolvency practitioners SFP has been appointed administrator and is currently trying to sell the business, according to The Online Meat Trades Journal. The report relates that the Skegness-based plant employed 26 people and had an annual turnover of GBP12 million, but encountered cash-flow issues that led to the current situation. "Despite working with a number of significant customers and having a substantial turnover, Lincolnshire Prime Meat company was unable to continue trading after under-financing led to cash- flow issues. . . . We are currently in discussions with various interested parties for a sale of the business and assets," the report quoted SFP Group Partner Simon Plant. MONUMENTAL GAMES: In Administration, Lays Off Remaining Staff ------------------------------------------------------------- Gamasutra News reports that despite drastic efforts to trim operations and turn its business around, Monumental Games has reportedly laid off its remaining employees and entered administration. The company has struggled in the past two years, seeing unannounced projects cancelled, cutting staff as it restructured, and closing its Manchester branch after a grant fell through, according to Gamasutra News. The report discloses that the firm hoped to regain momentum by bringing in former Codemasters Chief Executive Officer Nick Wheelright as its new boss in January 2011. Gamasutra News, citing Develop Web site, relays that Monumental Games was unable to overcome its difficulties, though, and it's now laid off the rest of its 20 workers. Monumental Games is a UK-based game developer. The firm employed more than 100 people across its Nottingham headquarters and offices in Manchester and Pune, India. ROYAL BEACON: Hotel in Administration, May be Put Up for Sale ------------------------------------------------------------- Caroline Clayfield at Business Sale reports that Royal Beacon Hotel, which went into administration over the Christmas period, looks set to be for sale in the near future. Representatives from NatWest arrived in January to formally demand repayment of loans and an overdraft before administrators came shortly afterwards to protect bank assets, according to Business Sale. However, the report notes that hotel owner Paul Nightingale is contesting the issue, claiming that debt was always paid for by his other businesses. Mr. Nightingale told Exmouth Journal newspaper that "I've never defaulted on interest or loan repayments in all the time I've been with NatWest, which is approaching 30 years." A spokesman for administrator RSM Tenon Recovery said that the hotel is continuing to trade as its financial position is reviewed, noting: "We will be looking to sell it as a going concern," Business Sale notes. But for the moment, the hotel is not on the market and existing bookings for weddings and events are set to be honored, the report adds. W J HARTE: In Brink of Administration, 700 Jobs at Risk ------------------------------------------------------- The Herald reports that W J Harte Construction is expected to go into administration after court delays prevented the appointment of an administrator. W J Harte Construction has called in insolvency specialists ahead of the expected formal announcement, according to The Herald. The report relates that unions and local politicians have been seeking meetings with the company's directors in recent days to clarify the situation without success. The firm employs 700 staff. It is expected that leading accountancy and business advisors PKF will be appointed, the report discloses. The Herald said the mounting fears for the company and clear indications it was heading for administration, with staff at the firm's headquarters informed of the situation. The Herald discloses that it is understood creditors were first made aware that the company was in a dire financial situation but the expectation was there would be an injection of capital from shareholders. But by the close of play it became clear this would not materialize, the report relays. The Herald says that the move comes as around a dozen TV Licensing jobs in Glasgow are due to be axed under plans to relocate work. The company said that it was proposing to switch work from its offices in Glasgow and Bristol to other sites in the UK, adding that 350 jobs in total were at risk, the report adds. Headquartered in Bothwell, Lanarkshire, W J Harte Construction is a major engineering firm. =============== X X X X X X X X =============== * BOOK REVIEW: Fraudulent Conveyances ------------------------------------- Author: Orlando F. Bump Publisher: Beard Books, Washington, D.C. 2000 (reprint of book first published in 1872 by Orlando F. Bump) 657 pages $34.95 trade paper ISBN 1-893122-78-6 The book is a legal classic for adding American law on fraudulent conveyances up to the 1870s when it first appeared to English law going back much further; which in turn grew out of Roman law. Bump's first chapter on the history of such law will be of interest to readers looking for this perspective; though the large bulk of the content is a meticulous, lawyerly organization and expounding of the many facets of the law on fraudulent conveyances as this has formed over centuries. As Bump notes, this area of law has a larger number of "opposing authorities . . . than can be found in any other branch of the law." In order to keep the treatment as simple as possible while still being true to its many facets and opposing authorities and relevant to legal practice of readers for whom it is intended, the author takes fraudulent conveyances as a part of common law. "This work simply considers the subject as it was at common law with the remedies afforded by the common law." Bump's treatment thus does not go into criminal law or law with reference to statutes. Though statutes regarding fraudulent conveyances have been passed in each state, these statutes have basically copied Elizabethan Anglo-Saxon law and have "always been considered as merely declaratory of the common law." Since there is thus no wide or radical difference between common law and state statutes concerning fraudulent conveyance, nearly all of Bump's work bears as well on law associated with the statutes. He brings this up in the work's Preface so readers will understand the framework by which he treats the subject. In the regular text, Bump does not take up state fraudulent conveyance statutes except where ones vary from the common law "to warn the practitioner [reader] that the text is not applicable to his particular State." The author does not however discuss grounds for this variance between a state's statutes and common law. Bump begins the voluminous study with definitions at the foundation of fraudulent conveyance. Fraudulent conveyances are all transfers made "to the end, purpose, and intent to delay, hinder, or defraud creditors." Whether a conveyance to a creditor is fraudulent is determined by the three "points" (as the author calls them) of intent, the consideration, and the bona fides of the transfer. Consideration generally refers to the right of the debtor to use certain property or other assets to settle a debt. Bona fide means that the debtor was not given the property, loan, etc., fraudulently by the creditor. From the basics of the definitions, Bump moves on to the many facets of this area of law dealing with circumstances in all types of human relationships. Not only business dealings, but transactions establishing a debtor-creditor relationship between members of a family, neighbors, governments, and just about any two legally recognized parties are covered by the law of fraudulent conveyances. Subsequent creditors, ambiguous contracts, and determining the value of property to pay debts are all factors bringing complications to such law which Bump systematically takes up. Though the book was written in the mid latter 1800s, since the basics of the law of fraudulent conveyances have not changed much since then--or from when such law was formulated for that matter -- Bump's work remains relevant and educating for anyone from lawyers to businesspersons to lay persons interested in the topic. A detailed index running close to 50 pages takes readers to specific topics of this involved legal subject. ********* 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, Ivy B. Magdadaro, Frauline S. Abangan and Peter A. Chapman, Editors. Copyright 2012. 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 Peter Chapman at 240/629-3300. * * * End of Transmission * * *