/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/120704.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 Wednesday, July 4, 2012, Vol. 13, No. 132 Headlines B E L G I U M * BELGIUM: Corporate Bankruptcies Up 3% in First Half 2012 C Y P R U S CYPRUS POPULAR: Fitch Cuts Rating on BoC Covered Bonds to 'BB' F R A N C E CAPTAIN BIDCO: Moody's Affirms 'B2' Corporate Family Rating LABCO SAS: Fitch Assigns 'B+' LT Issuer Default Rating G E R M A N Y WESTLB AG: North Rhine-Westphalia Signs Breakup Agreement G R E E C E * GREECE: Gets Remaining EUR1 Billion Bailout Tranche From EFSF H U N G A R Y * HUNGARY: Mandatory Liquidation Procedures Up 30% in First Half I R E L A N D * IRELAND: Fresh Euro-zone Deal May Help Boost Broken Banks I T A L Y BANCA MONTE: Fitch Cuts Preferred Stock Notes Rating to 'CCC' BANCA POPOLARE: S&P Cuts 8.393% Tier 1 Issue Rating to 'C' L U X E M B O U R G KLEOPATRA LUX: Moody's Withdraws 'Caa2' Corporate Family Rating P O L A N D PBG SA: May Seek Government Help for Infrastructure Projects STREAM COMMUNICATIONS: Posts US$5.55 Million Net Loss in 2011 P O R T U G A L PORTUGAL TELECOM: Moody's Views Dividend Cut as Credit Positive R U S S I A VOLOGDA OBLAST: S&P Withdraws 'B' Long-Term Issuer Rating S L O V E N I A * SLOVENIA: May Seek Bailout to Prop Up Banks, Economists Say S W E D E N NOBINA AB: Moody's Downgrades CFR to 'Caa2'; Outlook Negative NOBINA AB: S&P Cuts Long-Term Corporate Credit Rating to 'CC' U K R A I N E UKRAINE MORTGAGE: Fitch Affirms 'Bsf' Rating on Class B Notes U N I T E D K I N G D O M HOTEL CARLTON: In Administration; Up for Sale W YEOMANS: In Administration; Owes More Than GBP6 Million X X X X X X X X * EUROPE: Finland, Netherlands Oppose Deal to Save Spain & Italy * EUROPE: Moody's Cuts Ratings on Structured Finance Securities ********* ============= B E L G I U M ============= * BELGIUM: Corporate Bankruptcies Up 3% in First Half 2012 ---------------------------------------------------------- Jennifer M. Freedman at Bloomberg News, citing De Tijd, reports that a total of 5,558 Belgian companies declared bankruptcy in the first half of 2012, up 3% from a year earlier. According to Bloomberg, the newspaper said that in June alone, 990 Belgian businesses went bankrupt, the worst figure for the month in recent decades. =========== C Y P R U S =========== CYPRUS POPULAR: Fitch Cuts Rating on BoC Covered Bonds to 'BB' -------------------------------------------------------------- Fitch Ratings has taken various rating actions on Cyprus Popular Bank's (CPB, 'BB'/RWN/'B') and Bank of Cyprus' (BoC, 'BB'/RWN/'B') Cypriot covered bonds, as follows: CPB covered bonds (Programme I): downgraded to 'BB' from 'BB+'/RWN, removed from RWN CPB covered bonds (Programme II): affirmed at 'BBB-', removed from RWN BoC covered bonds (Greek cover pool): downgraded to 'BB' from 'BB+'; removed from RWN BoC covered bonds (Cypriot cover pool): affirmed at 'BBB-', removed from RWN The rating actions follow Fitch's downgrade of Cyprus to 'BB+'/Negative/'B' from 'BBB-'/Negative/'F2' on June 25, 2012 and the subsequent rating actions on the issuing institutions (see "Fitch Downgrades Cyprus to 'BB+'; Outlook Negative" dated 25th June 2012", "Fitch Downgrades Cypriot Banks Following Sovereign Downgrade" dated June 27, 2012 on www.fitchratings.com). All four covered bond programs have been removed from RWN reflecting the resolution of the RWN on CPB's and BoC's IDRs. CPB (Programme I) and BoC (Greek pool) are secured by Greek residential mortgages, while CPB (Programme II) and BoC (Cypriot pool) are secured by Cypriot residential mortgages. The four programs represent EUR4.95 billion on aggregate of rated debt. In line with Fitch's covered bonds rating methodology, the Long- term Issuer Default Rating (IDR) constitutes a floor for the rating of the covered bonds. At the same time Greece's country ceiling (B-) caps the covered bonds rating at the IDR level. As such, the Cypriot covered bonds issued by CPB and BoC and secured by Greek residential mortgage loans have been downgraded to their respective IDRs of 'BB', and no uplift for recoveries can be granted. Fitch has revised the Discontinuity Factor (D-Factor) for the programs containing Cypriot assets to 100% pursuant to Cyprus' sovereign downgrade in non-investment grade territory. As a result, the ratings of Bank of Cyprus (Cypriot Pool) and Cyprus Popular Bank (Programme II) covered bonds on a PD basis are equalized with the IDRs of the corresponding issuers. Any rating uplift can thus be assigned only on a recovery basis. Bank of Cyprus (Cypriot Pool) and Cyprus Popular Bank (Programme II) covered bonds benefit from an uplift of two notches above the IDR, when giving credit for recoveries post an assumed default of the covered bonds. Such level of expected recoveries is based on the issuers' commitment to an increased Asset Percentage (AP) of 90% and 89% respectively. As a result, the ratings of both programs are affirmed at 'BBB-'. All else being equal, a downgrade of an Issuer's IDR will lead to an equivalent downgrade of their covered bonds. =========== F R A N C E =========== CAPTAIN BIDCO: Moody's Affirms 'B2' Corporate Family Rating ----------------------------------------------------------- Moody's Investors Service has affirmed its B2 Corporate Family Rating for Captain BidCo SAS, the parent company of Ascometal SAS. At the same time, it has withdrawn the provisional (P)B3 rating for EUR300 million of senior secured notes and the provisional (P)Ba2 rating for a EUR60 million super senior revolving credit facility following the company's decision not to proceed with the refinancing of the bridge loan facility for the time being. The outlook on all ratings is stable. Ratings Rationale Captain BidCo's recent decision to postpone the issuance of EUR300 million of senior secured notes has no material implications for Moody's assessment of the credit profile of the group. The initial bank bridge facility agreement, which had an initial maturity of one year from closing, explicitly allows an automatic extension to permit a full 8 year term, which is in line with the intended term of the originally planned bond. In addition, the interest rate under the facility is capped at a certain level, and therefore Moody's does not expect significantly higher interest expense than what was assumed at the time of the rating assignment. With revenues of EUR239 million and volumes of 191,000 tonnes sold in the first quarter of 2012, the company is in line with Moody's expectations incorporated in the rating. With regards to profitability, Moody's notes, however, that the company's reporting for the first three months of 2012 contains a number of distorting negative one-time effects which makes a final judgment on the operating profitability and how this compares to the company's forecasts quite difficult. Based on the information available Moody's currently sees no material deviation from the business plan discussed. The B2 Corporate Family Rating continues to balance (i) Ascometal's strong and established position in the European engineering steel market, (ii) the company's strength in its products and processes, (iii) the operational flexibility of its Electric Arc Furnace based plants and (iv) the advantage of its pricing mechanism that allows Ascometal to pass-through changes in raw material costs with a limited time lag. However, Ascometal is (i) heavily reliant on the cyclical automotive and truck markets, with (ii) low sales visibility and historically highly volatile results, and (iii) geographic concentration on a single region within Europe. Other constraining factors are (iv) the relatively small size of the franchise (turnover 2011 EUR969 million), (v) the still relatively low capacity utilization of around 75% and (vi) an initially high leverage of pro-forma debt/EBITDA close to 5.0x which makes the company vulnerable to cyclical downturns. Ascometal's short term liquidity position is considered to be solid. Expected liquidity needs of approximately EUR60 million including EUR30 million working cash required to run the business are well covered by EUR15 million cash on hand, funds from operations expected to exceed EUR15 million and full availability under the company's EUR60 million revolving credit facility (RCF), which matures in 2017. In addition, the company has access to a EUR75 million factoring facility maturing in 2016 which leaves headroom of about EUR25 million on average. The expectation of some working capital release provides additional comfort. The absence of the bridge refinancing has no impact on the short term liquidity profile of the group as the automatic extension of the bridge facility shifts its maturity to 2019. Moody's notes that Captain BidCo's RCF is subject to one financial covenant, if and when the line is drawn, set with sufficient headroom. The outlook on the ratings is stable. This incorporates the expectation that the company will be able to manage its key credit metrics within the range expected for the B2 rating category, such as debt/EBITDA to oscillate in a range between 4.5 and 5.5x, and EBIT/interest coverage to move between a range of 1.2x and 1.7x (proforma 1.4x in 2011). However Moody's notes macroeconomic factors weighing down the commodity steel industry around the world with Europe facing additional challenges related to the sovereign debt conundrum. Subsequently Moody's does not foresee material profit improvements for Ascometal for 2012, which positions the company weakly in the rating category. Should the company not be able to defend its metal spread above a level of EUR670 per ton (EUR688 seen during 2011) pressure on the ratings will develop. Upside rating potential could build if Ascometal would be able to show a sustainable increase in profitability, supporting a reduction of leverage close to a level of 4.0x Debt / EBITDA on a sustainable basis. In addition, a B1 Corporate Family Rating would require EBIT margin to improve towards high single digits, EBIT / interest expense to exceed 1.7x and a material free cash flow generation, all on a sustainable basis. Likewise, downward pressure would build if the company were not able to generate an EBIT margin materially above 5%, if leverage exceeds 5.5x, if interest cover falls below 1.2x or in the case of a material negative free cash flow. Also, any concerns with regard to the headroom under the financial covenant could be negative to the rating. The principal methodology used in rating Captain BidCo SAS was the Global Steel Industry Methodology published in January 2009. Ascometal SAS, based in Courbevoie/France, wholly owned by Captain BidCo SAS, is one of the largest producers of specialty engineered steels in Europe. The company has a 10% share in the highly fragmented European Engineering Steel market. This position has been achieved on the back of technological leadership in the industry with highly specialized and customized products. During 2011, Ascometal SAS shipped 806,000 tons of steel and generated EUR969 million of sales with around 2,189 employees (2011 average). The company operates 3 integrated EAF- based steel plants, 4 rolling mills and 2 cold finishing centers, all located in France. Around 87% of revenues are generated within the EU, with the largest portion generated in France, followed by Germany and Italy, although many of the ultimate end products are exported to other regions of the world. LABCO SAS: Fitch Assigns 'B+' LT Issuer Default Rating ------------------------------------------------------ Labco SAS's recent announcement confirms market rumors that a number of unsolicited non-binding offers have been made to acquire the company. Media reports also suggest the likely bidders are Private Equity sponsors seeking to utilize their under-deployed funds in an existing and stable leverage buyout story. Labco's current Long-term Issuer Default Rating (IDR) of 'B+' with a Stable Outlook, reflects its high net lease adjusted leverage of 5.5x (adjusted for acquisitions) and its current acquisitive growth strategy. If one of these bids became more binding Fitch would consider a rating action. Labco's Senior Secured Notes are currently rated 'BB-' with a recovery rating of 'RR3'. ============= G E R M A N Y ============= WESTLB AG: North Rhine-Westphalia Signs Breakup Agreement --------------------------------------------------------- Matthias Inverardi at Reuters reports that German state-backed lender WestLB AG was broken up in time to meet an EU-imposed July 1 deadline, with its former owners hoping to draw a line under years of losses and controversy at what was once the country's biggest landesbank. WestLB, whose international ambitions were cut short by a series of trading scandals and losses that led to repeated bailouts by its owners, will have cost taxpayers and savings banks an estimated EUR18 billion (US$23 billion) between 2005 and 2028, when the last of its bad assets is wound down, Retuers discloses. North Rhine-Westphalia's government and savings banks, along with representatives of the federal government and landesbank Helaba, which is taking over part of WestLB's business, ended months of haggling on Saturday to sign the agreement on WestLB's breakup, Reuters relates. According to Reuters, as part of the restructuring, WestLB has been split into three parts: - A regional bank with about EUR40 billion in assets, dubbed Verbundbank, will provide service to regional savings banks and will be taken over by Frankfurt-based Helaba, along with 451 former WestLB employees. - A "bad" bank, known as Erste Abwicklungsanstalt (EAA), which has already been working to wind down bad assets worth around EUR51 billion as of the end of 2011. The EAA will also be tasked with winding down about 100 billion euros of additional assets from WestLB's final breakup, including those of property finance unit Westdeutsche Immobilienbank AG. - A financial services and portfolio management company called Portigon, which starts business on Monday with around 3,500 former WestLB employees, but is expected to end the year with less than 2,700. Staff numbers are expected to decline further thereafter and Portigon's sole owner, the state of North Rhine-Westphalia, is due to sell the business by the end of 2016. Portigon, Reuters says, is expected to help with the winding down of bad assets held by the EAA, which will have only about 100 employees. About WestLB AG Headquartered in Duesseldorf, Germany, WestLB AG acts as the central institution for the more than 100 "sparkassen," or savings banks, in Germany's largest state, North Rhine- Westphalia, and Brandenburg. The bank also serves midsized companies, public entities, multinational corporations, and individuals in Germany and abroad. A universal bank, WestLB offers a range of financial services, including loans, trading, asset management, investment banking, transaction processing, private banking, and real estate finance. It has about a dozen branches in Germany, plus more than a dozen in financial capitals in Europe and around the world. WestLB's savings bank partners collectively operate more than 3,000 branches. =========== G R E E C E =========== * GREECE: Gets Remaining EUR1 Billion Bailout Tranche From EFSF --------------------------------------------------------------- Reuters reports that a senior government official said on Monday Greece received the remaining EUR1 billion portion of its latest bailout tranche which will provide some comfort to cash strapped state coffers. According to Reuters, the disbursement came from the European Financial Stability Facility (EFSF), the euro zone's temporary bailout fund, as was agreed on by finance ministers in May. ============= H U N G A R Y ============= * HUNGARY: Mandatory Liquidation Procedures Up 30% in First Half ---------------------------------------------------------------- MTI-Econews, citing company information provider Opten, reports that the number of mandatory liquidation procedures initiated against Hungarian companies came to 12,355 in the first half of the year, up 30% from a year earlier. The number of mandatory liquidations in June, 2,418, was an all-time record, MTI notes. According to MTI, Opten, quoting analysts' opinion, said the increase is a result of debt chains among companies exacerbated by the economic crises, and more serious surveillance by the tax authorities. Opten said the number of voluntary liquidations jumped to 19,198 in the first half of this year, up 60% on the same period last year, MTI discloses. ============= I R E L A N D ============= * IRELAND: Fresh Euro-zone Deal May Help Boost Broken Banks ----------------------------------------------------------- Eamon Quinn and Charles Forelle at Dow Jones Newswires report that the Irish government is mobilizing a campaign to seize advantage of a fresh euro-zone agreement to allow rescue funds to finance the currency bloc's broken banks, offering possible relief at the source of Ireland's financial straits. The deals struck by European leaders on Friday elicited perhaps the loudest cheers from Ireland, which more than any other euro-zone nation has suffered the ill effects of a tight embrace between a country and its banks, Dow Jones relates. There was some expectation that Ireland would be able to retroactively use of the provision to offload some of that burden onto the euro- zone rescue fund, Dow Jones discloses. Dow Jones relates that Ireland's deputy prime minister, Eamon Gilmore, said Sunday Ireland will be "aiming high" in coming negotiations to lighten the country's huge bank debt. According to Dow Jones, the euro-zone agreement on bank debt has now opened the way for Ireland to negotiate a debt-lightening deal before the end of the year, Mr. Gilmore told Irish broadcaster RTE Radio, saying he was "confident that we will also succeed on this matter." Irish authorities have argued that refinancing the banking debt burden will help the country return to full market funding next year and boost the country's modest economic recovery, Dow Jones states. Ireland has long complained that the euro zone had unfairly forced Irish taxpayers to shoulder most of the costs of rescuing formerly private banks when the country's bloated commercial property market crashed from 2008, Dow Jones notes. Ireland faces one of the world's costliest bank rescues, amounting to about EUR63 billion (US$80 billion), or 40% of its annual economic output, Dow Jones says. As those bank-rescue costs escalated, it was forced to strike a EUR67.5 billion bailout deal with the European Union, the International Monetary Fund and the European Central Bank, in late 2010, Dow Jones recounts. ========= I T A L Y ========= BANCA MONTE: Fitch Cuts Preferred Stock Notes Rating to 'CCC' ------------------------------------------------------------- Fitch Ratings has affirmed Banca Monte dei Paschi di Siena's (MPS) Long-term Issuer Default Rating (IDR) at 'BBB' with a Stable Outlook and its Short-term IDR at 'F3'. The IDR is at its Support Rating Floor of 'BBB', which was also affirmed. The bank's Viability Rating (VR) was downgraded to 'bb+' from 'bbb-' and placed on Rating Watch Negative (RWN). The rating action follows MPS's announcement on June 27, 2012, that it would apply for about EUR1.5 billion of additional government capital in the form of hybrid instruments. In Fitch's opinion the decision by the Italian government to make up to EUR2 billion in fresh capital available to the bank underlines the authorities' propensity to support MPS as Italy's third-largest bank. The capital increase will improve the bank's capitalization and improve its capacity to absorb losses. However, significant pressure remains on MPS's profitability, asset quality and funding, which Fitch does not consider in line with an investment grade VR. The deteriorating conditions of the domestic economy and the financial markets affect all Italian banks, but the agency considers MPS to be relatively more affected by external conditions because of its need to rebalance its funding by de-leveraging during times of market stress. Fitch expects to resolve the RWN after a review of the bank's prospects in the context of its new business plan presented on 27 June. This review will concentrate on the potential impact of a further deterioration of the operating environment on asset quality, earnings and funding. In this context, the planned reduction of operating expenses is a key component of the bank's business plan, and its implementation will be important for the bank to reach its target. Furthermore, coupon payments on the new hybrids to be issued are likely to weigh on internal capital generation. MPS's current plans to reach its target common equity Tier 1 ratio of 8.07% under Basel III at end-2015 include the effects of the repayment of all but EUR475 million of government capital and a planned capital increase of EUR1 billion once market conditions improve, as well as the sale of some non-core assets, including the bank's leasing business and its consumer finance subsidiary. Fitch does not currently expect to revise the Support Rating Floor in the event of a moderate sovereign downgrade in the future. A material downgrade of the sovereign rating would result in a downgrade of the Support Rating Floor, and therefore of the Long-term IDR. Fitch downgraded MPS's Tier 1 instruments to 'CCC' from 'B+' and Upper Tier 2 instruments to 'B-'/RWN from 'BB-' to reflect the increased non-performance risk. The receipt of government capital increases the risk of the non-payment of the coupons. In the case of the bank reporting a net loss MPS will be legally obliged not to make coupon payments on subordinated or hybrid instruments if their terms allow for non-payment. Fitch understands that the exchange offer for some of MPS's outstanding subordinated and hybrid instruments announced on June 27 will trigger mandatory coupon payments for the next 12 months, but the agency believes that there is heightened non-performance risk after this period. The rating of the bank's Lower Tier 2 instruments was downgraded by one notch to 'BB'/RWN and is sensitive to changes in the bank's VR according to Fitch's criteria. The ratings of Banca Antonveneta reflect potential support from MPS given its integration into the banking group. Banca Antonveneta's ratings are sensitive to any reduction in MPS's propensity to provide support, which Fitch does not expect given the announced merger of the subsidiary into MPS. The rating actions are as follows: MPS: Long-term IDR: affirmed at 'BBB'; Outlook Stable Short-term IDR and short-term senior debt: affirmed at 'F3' VR: downgraded to 'bb+' from 'bbb-', placed on RWN Support Rating: affirmed at '2' Support Rating Floor: affirmed at 'BBB' Debt issuance program (senior debt): affirmed at 'BBB' Senior unsecured debt, including guaranteed notes: affirmed at 'BBB'/'F3' Lower Tier 2 subordinated debt: 'BB+', placed on RWN Upper Tier 2 subordinated debt: downgraded to 'B-', placed on RWN Preferred stock and Tier 1 notes: downgraded to 'CCC' from 'B+' Banca Antonveneta: Long-term IDR: affirmed at 'BBB'; Outlook Stable Short-term IDR: affirmed at 'F3' Support Rating: affirmed at '2' BANCA POPOLARE: S&P Cuts 8.393% Tier 1 Issue Rating to 'C' ---------------------------------------------------------- Standard & Poor's Ratings Services has lowered its issue rating on the EUR160 million 8.393% non-cumulative perpetual preferred securities issued by BPM Capital Trust I and guaranteed by Italy- based Banca Popolare di Milano SCRL to 'C' from 'CC'. The issue has the ISIN number XS0131749623. According to the bank, this issue has a total outstanding amount of about EUR71 million. The rating action follows BPM's nonpayment of dividends on this Tier 1 hybrid instrument on the due date of July 2, 2012. On May 29, 2012, BPM announced the suspension of interest and dividend payments on its two Tier 1 hybrid debt issues, including this one. The suspension is allowed under the terms and conditions of these instruments because BPM reported a net loss at the end of 2011, and did not distribute any dividends to shareholders, or offer to buy back preference shares, in the previous 12 months. "As a result of that announcement, on May 31, 2012, we lowered the rating on these instruments to 'CC' from 'B'," S&P said. =================== L U X E M B O U R G =================== KLEOPATRA LUX: Moody's Withdraws 'Caa2' Corporate Family Rating --------------------------------------------------------------- Moody's Investors Service has withdrawn the ratings of Kleopatra Lux 1 S.a.r.l, following completion of a financial restructuring. The financial restructuring resulted in senior lenders having been repaid at par plus accrued interest, while second lien and mezzanine instruments were converted into equity. On June 29, 2012, Moody's has assigned a new B2 corporate family rating to Kloeckner Holdings S.C.A., the new holding company for Kl�ckner Pentaplast and reflecting the new financing structure following the mentioned financial restructuring. The following ratings were withdrawn: Withdrawals: Issuer: Kleopatra Lux 1 S.a.r.l. Probability of Default Rating, Withdrawn, previously rated Ca/LD Corporate Family Rating, Withdrawn, previously rated Caa2 Outlook Actions: Issuer: Kleopatra Lux 1 S.a.r.l. Outlook, Changed To Rating Withdrawn From Stable Ratings Rationale Moody's has withdrawn the rating for its own business reasons. Domiciled in Luxembourg, Kleopatra Lux 1 S.a.r.l. was the holding company of German plastic packaging manufacturer Kloeckner Pentaplast until a financial restructuring resulted in ownership assumption of junior lenders led by Strategic Value Partners. =========== P O L A N D =========== PBG SA: May Seek Government Help for Infrastructure Projects ------------------------------------------------------------ Maciej Martewicz at Bloomberg News reports that PBG SA, which filed for bankruptcy last month, may ask the government for help to continue work on infrastructure projects. PBG is considering asking Agencja Rozwoju Przemyslu SA, the state-owned fund for developing industry, for help as "one of its options," Bloomberg quotes Kinga Banaszak-Filipiak, a spokeswoman, as saying in a phone interview on Monday. She confirmed a report in the Gazeta Wyborcza newspaper, which said on June 30 that the company is in talks to get assistance, citing Chief Executive Officer Wieslaw Rozacki, Bloomberg notes. "It looks like the information about potential state help is driving the shares up," Adrian Kyrcz, an analyst at Bank Zachodni WBK SA, as cited by Bloomberg, said. PBG, which 15 months ago was Poland's largest builder by market value, has asked a court for protection from creditors and offered to pay back at least 69% of its debt, Bloomberg relates. The company said in a statement it had about PLN1.5 billion (US$447 million) of debt on June 4, Bloomberg recounts. PBG SA is Poland's third largest builder. STREAM COMMUNICATIONS: Posts US$5.55 Million Net Loss in 2011 ------------------------------------------------------------- Stream Communications Network & Media Inc. reported a net loss of C$5,554,705 on C$1,508,097 of revenue for the fiscal year ended Dec. 31, 2008, compared with a net loss of C$3,107,320 on C$7,376,978 of revenue for the fiscal year ended Dec. 31, 2007. The results for the year 2008 is only to a limited extent comparable to previous years, due to the Company's disposal of shares in Stream Communications Sp. z o. o. (Stream Poland) which is not consolidated with the Company as of Feb. 22, 2008. Revenue decreased by 80% in the current year as compared to 2007 as result of only consolidating 2 months of revenue from Stream Poland, whereas in previous years was a fully consolidated subsidiary. The Company's balance sheet at Dec. 31, 2008, showed C$3,593,751 in total assets, C3,833,030 in total liabilities, and a shareholders' deficit of C$239,279. "The Company has recurring operating losses, an accumulated deficit of C$55,549,004 and negative working capital of C$2,210,044 at Dec. 31, 2008," the Company said in the filing. "The continuing operations of the Company are dependent upon its ability to commence profitable operations in the future. Therefore, as of the date these financial statements have been prepared, there is a substantial doubt about the Group's ability to continue as a going concern." A copy of the Form 20-F is available for free at: http://is.gd/DP8t8d Warsaw, Poland-based Stream Communications Network & Media Inc. provides cable TV and high-speed Internet access in Poland. The Company has the following operating investment in unconsolidated company: Stream Communications Sp. z o.o. was incorporated on Oct. 26, 1999, under the laws of Poland. At Dec. 31, 2008, the Company owns a 48,86% interest in Stream Poland which is in the business of operating cable television and high-speed Internet in Poland. Stream Poland's growth is being accomplished through acquisitions of small, independent cable TV and high-speed Internet providers and through its own marketing efforts. Stream Poland is located at al. 29 Listopada 130, 31-406 Krakow, Poland. On Feb. 22, 2008, the Company entered into an agreement with Penta, that allowed Penta to acquire a majority stake in Stream Poland. As of Dec. 31, 2010, the Company's share in Stream Poland was 22,73%. On Jan. 24, 2012, it sold the remaining share in Stream Poland to Multimedia S.A., a Polish company. Stream is a reporting issuer in the Province of British Columbia, Canada and its common shares are listed for trading on the OTC BB Pink Sheets under the trading symbol "SCNWF". =============== P O R T U G A L =============== PORTUGAL TELECOM: Moody's Views Dividend Cut as Credit Positive --------------------------------------------------------------- Moody's Investors Service has said that it views as credit positive for Portugal Telecom the company's recently announced reduction in its shareholder remuneration policy for 2012-14 and the extension of its refinancing until June 2016. Moody's considers that the cut in dividends and refinancing extension alleviate Portugal Telecom's liquidity risk and support its deleveraging efforts. Portugal Telecom recently announced that the company's board of directors had approved, for fiscal years 2012, 2013 and 2014, a cut in shareholder remuneration of approximately 50%. This represents a cash saving of some EUR300 million per year, which the company will use to reduce debt. In addition, the company also announced that it has issued a EUR250 million four-year bond, maturing in 2016 and with a 6.25% coupon, in the Portuguese retail market. Moody's notes that the dividend cut and refinancing extension, together with the completed extension of Portugal Telecom's existing EUR800 million syndicated bank loan with all international banks, effectively pre-fund the company's refinancing needs through June 2016. As a result, the company will not need to access the debt markets for refinancing in the medium term. Portugal Telecom has debt maturities of approximately EUR1.6 billion over the next 12 months. In addition to Portugal Telecom's liquidity risk management, Moody's continues to closely monitor the company's performance in the context of the negative pressures on the Portuguese economy, as well as the company's financial ratios, which the rating agency expects to remain relatively constrained though the new dividend policy provides somewhat more financial headroom than before. Moody's remains concerned about the fact that Portugal Telecom (i) has only moderate headroom to absorb any increased competitive and/or regulatory pressures in its domestic market; and (ii) faces substantial challenges to restructure its Brazilian subsidiary and place it on a path to sustainable growth. Though Portugal Telecom has alleviated refinancing concerns and removed some near term risks of rating pressure, its Ba2 rating with negative outlook reflects the business risk that the company faces in the context of the Portuguese macro-economic environment and a potential degree of contagion from the sovereign crisis despite its (i) resilient, albeit highly competitive, underlying business; (ii) leading market position; (iii) international diversification; (iv) management's track record in executing the company's strategy under adverse circumstances; (v) high-quality infrastructure, which will support Portugal Telecom's revenues in the future and help to partially mitigate the negative effects of the weak macro environment in Portugal; and (vi) the company's strong liquidity, with cash needs pre-funded until mid-2016. Domiciled in Lisbon, Portugal Telecom is the leading telecommunications operator in Portugal, servicing 4.7 million fixed lines, which includes one million ADSL retail connections. In addition, the operator had approximately 7.4 million mobile phone customers in Portugal as of December 2011. Furthermore, Portugal Telecom has operations in other countries, including Brazil, Cape Verde, East Timor, Angola, Macau, Sao Tome and Principe and Namibia. The company's annual revenues in 2011 amounted to EUR6.1 billion and reported EBITDA to EUR2.2 billion. =========== R U S S I A =========== VOLOGDA OBLAST: S&P Withdraws 'B' Long-Term Issuer Rating --------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B' long-term issuer rating and 'ruA' Russia national scale rating on Russia's Vologda Oblast. The ratings were subsequently withdrawn at the issuer's request. "At the point of withdrawal, the outlook was stable. At the same time, we affirmed and then withdrew our 'B' and 'ruA' issue ratings and '3' recovery rating on the oblast's RUB2.51 billion bond. The ratings were constrained by revenue volatility as a result of high exposure to the steel industry, low revenue and spending flexibility, and weak budgetary performance, in turn leading to debt accumulation and mounting debt service. "They were, however, supported by the high likelihood of strong federal support and the oblast's own modest contingent liabilities. "At the point of withdrawal, the stable outlook reflected our view that additional support from the federal government and management's cost-containment agenda for 2012 would counterbalance what we believed would be an only modest recovery of tax and nontax revenues over the medium term," S&P said. =============== S L O V E N I A =============== * SLOVENIA: May Seek Bailout to Prop Up Banks, Economists Say ------------------------------------------------------------- Boris Cerni and Radoslav Tomek at Bloomberg News reports that economists from London to Warsaw said Slovenia is headed toward becoming the sixth euro-area nation to seek a bailout as faltering banks strain the finances of the first post-communist nation to adopt the common currency. The nation, which adopted the euro in 2007, is assessing the fiscal burden of covering the liabilities of its financial industry after Nova Ljubljanska Banka d.d., the largest bank, got a capital boost, Bloomberg disclsoes. According to Bloomberg, Premier Janez Jansa, who said on June 27 that Slovenia risks a "Greek scenario," told reporters two days later in Brussels the government is "doing everything to find a solution" and avoid the need for assistance. "It's increasingly likely that Slovenia will be the next small economy asking for a European Union bailout, which would be focused on the banking sector," Bloomberg quotes Michal Dybula, an economist at BNP Paribas SA in Warsaw, as saying by phone. The central bank has repeatedly urged Slovenia to recapitalize its banking industry, which relies on loans from the European Central Bank for liquidity, Bloomberg states. Mr. Dybula, as cited by Bloomberg, said that a plea for financial assistance from Slovenia may emerge if European leaders don't come up with a quick fix to the worsening debt and banking crisis. =========== S W E D E N =========== NOBINA AB: Moody's Downgrades CFR to 'Caa2'; Outlook Negative ------------------------------------------------------------- Moody's Investors Service has downgraded Nobina AB's corporate family rating (CFR) to Caa2 from Caa1 and the probability of default rating (PDR) to Ca from Caa3. The rating outlook is negative. This concludes the review for downgrade that was initiated on January 17, 2012. Nobina's EUR85 million (approximately SEK761 million at May 31, 2012) senior secured notes due August 1, 2012 are not rated by Moody's. Downgrades: Issuer: Nobina AB Probability of Default Rating, Downgraded to Ca from Caa3 Corporate Family Rating, Downgraded to Caa2 from Caa1 Outlook Actions: Issuer: Nobina AB Outlook, Changed To Negative From Rating Under Review Ratings Rationale The rating action was prompted by Nobina's announcement to launch a bond exchange offer for the existing EUR85 million senior secured notes due August 1, 2012 on June 28, 2012. Moody's believes that the proposed exchange offer will likely constitute a distressed exchange and the PDR of Ca anticipates this event. Upon the closing of the exchange offer, Moody's will classify the exchange as a limited default and may reassess the PDR and append a /LD to it. Nobina plans to exchange its senior secured notes for up to SEK860 million (EUR97 million) of new 9.125% senior secured notes due December 31, 2014 to be issued by Nobina Europe AB, an indirect subsidiary of Nobina AB. The new secured notes will contain among others the following preliminary terms & conditions as announced on June 28, 2012: (i) coupon can be paid-in-kind (11.125%) if available consolidated cash & cash equivalents of Nobina Europe AB fall below a certain level otherwise the coupon should be paid in cash (9.125%); (ii) any available consolidated cash balance at Nobina Europe AB above a certain level at the end of each fiscal year will be directed towards repayment of the notes which replaces the amortization feature of the current bond; (ii) issuance of detachable warrants; (iv) option to extend maturity to July 31, 2015 subject to bondholder approval. The exchange offer is currently set to expire on July 5, 2012. Moody's understands that Nobina has already received an indication from more than 80% of bondholders that they would support the proposed bond exchange. Although the completion of the exchange offer would extend the maturity profile it would not result in a reduction in leverage or an improvement in its liquidity profile. The Caa2 CFR reflects Moody's concerns about Nobina's very limited financial flexibility even post a successful bond exchange. At May 31, 2012 the company had unrestricted cash on balance sheet of only SEK90 million. Moody's considers Nobina's capital structure to be unsustainable without a material improvement in its liquidity sources considering a persisting high leverage due to a high amount of finance leases (SEK3401 million at May 31, 2012) and operating leases (lease adjustment of SEK1,476 million in fiscal year 2011/12) and modest free cash flow generation in relation to debt. Moody's notes that the group has access to a SEK300 million 364-day accounts receivable financing arrangement and a short- term SEK50 million bank line with a first full draw-down made on June 1, 2012. For the last twelve months period ending May 31, 2012, the group had adjusted debt/EBITDA of 7.1x and FCF/debt of 4.3%. In addition, Moody's is increasingly concerned that the group's tight liquidity situation might start to impair its competitive position. Other factors considered in Nobina's Caa2 rating are (i) the company's position as the largest Nordic bus transportation group with a significant proportion of business with local Scandinavian communities with relatively high revenue visibility and predictability due to limited transportation volume exposure; (ii) the group's track record of generating positive free cash flow albeit modest in relation to outstanding debt; (iii) but also the group's limited scale with revenues and profit generation being concentrated on the Swedish market and (iv) the compression in the group's credit metrics in fiscal year 2011/12 with first signs of improvements in its profit margins in Q1 2012/13 (reported operating margin 3.5% in Q1 2012/13 compared to 3.3% in Q1 2011/12). The negative outlook reflects the company's weak liquidity profile even post a successful bond exchange and the expectation that free cash flow generation will be mainly required to meet annual principal amortization under finance leases for buses and therefore, insufficient to materially reduce net debt. Triggers for a Potential Downgrade/Upgrade Further negative rating pressure could arise in case of heightened risk of a near-term default through an unsuccessful bond exchange offer or through a depletion of available cash sources. Rating upward pressure would require sustained improvements in the company's liquidity profile and cash flow generation. Nobina AB 's ratings were assigned by evaluating factors that Moody's considers relevant to the credit profile of the issuer, such as the company's (i) business risk and competitive position compared with others within the industry; (ii) capital structure and financial risk; (iii) projected performance over the near to intermediate term; and (iv) management's track record and tolerance for risk. Moody's compared these attributes against other issuers both within and outside Nobina AB's core industry and believes Nobina AB's ratings are comparable to those of other issuers with similar credit risk. Nobina AB is the largest Nordic bus transportation company, operating in Sweden, Norway, Finland and Denmark. Its revenues for fiscal year 2011/12 (ending February 29) totaled SEK7.1 billion and were mostly generated from public bus services in Sweden. This reflects the more advanced stage of the deregulation in this country, where almost all local and regional bus services have been tendered since 1989, in contrast to the situation in Norway and Finland, where less than 50% of the traffic has been tendered so far. In Sweden, the public bus transportation needs of Contractual Public Transportation Associations (CPTAs) are put up for tender via a competitive bidding process and the tenor of such contracts is typically five to eight years. The majority of contracts are priced with cost indexation levels adjusted on a monthly (Denmark), quarterly (Sweden, Finland) or annual basis (Norway). NOBINA AB: S&P Cuts Long-Term Corporate Credit Rating to 'CC' ------------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term corporate credit and senior unsecured debt ratings on Sweden- based bus services provider Nobina AB and its subordinate holding company Nobina Europe Holding AB to 'CC' from 'CCC+'. The outlook is negative. The downgrade follows Nobina's announcement of an exchange offer for its EUR85 million senior secured notes, a month ahead of their maturity. "We view this exchange offer as a distressed exchange under our criteria, and therefore tantamount to a default," S&P said. Under the exchange offer, noteholders will be able to exchange their holdings at par (EUR85 million) for EUR97 million (Swedish krona [SEK] 860 million) of new notes due Dec. 31, 2014. If Nobina has cash exceeding a certain threshold, a 9.125% coupon will be paid in cash on the new notes. However, if cash balances are below the threshold, the coupon will be 11.125% payment in kind (PIK). In addition, under the terms of the new notes, noteholders will benefit from a cash sweep, subject to certain conditions, which replaces the existing amortization feature. The offer includes an incentive of detachable warrants issued on a pro-rata basis, with an internal rate of return of 5%, subject to shareholder approval. If shareholders do not give their approval, the warrants will be replaced with a PIK instrument paying 5%. Noteholders also have the ability to extend the maturity of the notes to July 31, 2015. "In our view, the offer is distressed rather than opportunistic because there is a real possibility of a conventional default on the senior secured notes over the near term. For example, Nobina could file for bankruptcy or fall into payment default. In addition, we consider that, as per our criteria, noteholders will receive less value than the promise of the original securities, notably due to the PIK element of the new notes and their potentially slower amortization profile," S&P said. "We currently assess Nobina's financial risk profile as 'highly leveraged' and its business risk profile as "weak," S&P said. "In our view, if Nobina were to successfully extend the maturity of the notes due August 2012, as proposed under the exchange offer, we would lower the ratings to 'SD' (Selective Default). We believe there is a likelihood of a payment default occurring should the exchange not proceed, which could result in us lowering the ratings to 'D' (Default)," S&P said. "If the exchange offer goes ahead, we will review Nobina's new capital structure and liquidity profile on completion. We could raise the corporate credit rating on the group to 'B-' from 'SD' after the completion of the offer to reflect our view of the group's "highly leveraged" financial risk profile and "weak" business risk profile," S&P said. ============= U K R A I N E ============= UKRAINE MORTGAGE: Fitch Affirms 'Bsf' Rating on Class B Notes ------------------------------------------------------------- Fitch Ratings has affirmed the rating of the class B notes of Ukraine Mortgage Loan Finance No.1 plc., as follows: Class B (ISIN: XS0285819123): affirmed at 'Bsf'; Outlook revised to Stable from Positive The affirmation reflects the substantial level of credit enhancement (CE) available to the class B notes. The Outlook has been revised to Stable from Positive in line with the Outlook for Ukraine's Long-term Issuer Default Rating. The transaction comprises a portfolio of USD denominated mortgage loans originated by PrivatBank ('B'/Stable'). The notes are amortizing on a sequential basis and the class A notes have already paid in full, allowing class B to start its amortization. The CE for the class B notes has increased significantly since closing (62.5% as of May 2012), but the rating is capped at Ukraine's Country Ceiling ('B'). The class B notes do not benefit from structural features to mitigate the transfer and convertibility risk such as the possibility of the imposition of exchange controls by the authorities that could block the transfer of foreign currency offshore. The gross excess spread amounts to 0.8% and is used to provision for defaults in the collateral portfolio as well as to pay interest on the unrated class C notes. Defaulted loans are defined as loans in arrears by 90 days and the cumulative defaults as at May 2012 were 3.59% of the initial balance. =========================== U N I T E D K I N G D O M =========================== HOTEL CARLTON: In Administration; Up for Sale --------------------------------------------- Julian Fowler at BBC News reports that the Hotel Carlton in Belleek has been placed in administration. The hotel will remain open and it is hoped a new buyer can be found, BBC notes. According to BBC, joint administrators from accountancy firm Cavanagh Kelly said it was decided to continue trading with a view to selling the hotel as a going concern. They said that all options to fulfill existing bookings for customers are being considered, BBC relates. The current management and staff have been retained to run the business, BBC discloses. The Hotel Carlton in Belleek employs more than 20 staff. W YEOMANS: In Administration; Owes More Than GBP6 Million --------------------------------------------------------- Laurence Kilgannon at Insider Media reports that W Yeomans (Chesterfield) collapsed owing unsecured creditors more than GBP6 million. According to Insider Media, a pre-pack deal in May safeguarded 435 jobs after a marketing campaign prior to the company's failure had attracted only "minimal interest". After the rejection of a time to pay arrangement by HM Revenue & Customs and concern that the company was in breach of the terms of its company voluntary arrangement, the administrators said the directors approached The P&A Partnership to look into the financial state of the business, Insider Media recounts. A review led to a finding that the business was insolvent and Gareth Rusling and Chris White of P&A were appointed joint administrators of the retail chain on May 16, 2012, Insider Media notes. The business and assets of W Yeomans (Chesterfield), which traded as Yeomans Outdoors, were acquired by a new company Yeomans Outdoor Ltd., controlled by directors of W Yeomans (Chesterfield), for GBP150,000 on appointment, Insider Media discloses. Despite the cash raised from the sale and a further GBP53,000 of cash within the business at the time of the administrators' appointment, unsecured creditors of W Yeomans (Chesterfield) are facing a significant shortfall, Insider Media relates. Based on figures provided by directors there will be GBP197,764 available to pay claims which total slightly more than GBP6 million, Insider Media says. Trade and expense creditors account for GBP3.7 million while GBP2.3 million is owed to HMRC, according to Insider Media. =============== X X X X X X X X =============== * EUROPE: Finland, Netherlands Oppose Deal to Save Spain & Italy ---------------------------------------------------------------- Terhi Kinnunen at Reuters report that Finland and the Netherlands, the euro zone's most hardline creditor states, cast the first doubts on Monday on a European summit deal designed to save Spain and Italy from being engulfed by the currency bloc's debt crisis. According to Reuters, the Finnish government told parliament that Helsinki and its Dutch allies would block the euro zone's permanent bailout fund buying bonds in secondary markets. Euro zone leaders agreed last Friday that rescue funds could be used in a "flexible and efficient manner" to lower government borrowing costs, Reuters relates. Their statement gave no further detail, Reuters notes. The 17 euro zone leaders agreed in Brussels on steps to shore up their monetary union and bring down borrowing costs for Spain and Italy, regarded as too big to fail but also too expensive to rescue if they are shut out of markets, Reuters discloses. They gave few details on the use of the temporary EFSF and permanent ESM rescue funds, Reuters discloses. According to Reuters, the Finnish government said in a report to a parliamentary committee that ESM bond buying in secondary markets would require unanimity among euro zone members and that seems unlikely because Finland and the Netherlands are against it. That is essentially true but there is a get-out clause in the ESM's rules which states that if the European Central Bank and European Commission feel the euro zone was under threat, then the rescue fund could act on the basis of an 85% majority vote to do so, Reuters states. A Finnish proposal that Spain and Italy should issued covered bonds, backed by state assets or future revenues, to avoid Helsinki having to demand collateral for any bailout loans, failed to find agreement last week, Reuters recounts. * EUROPE: Moody's Cuts Ratings on Structured Finance Securities --------------------------------------------------------------- Moody's Investors Service announced on July 2 that it has downgraded the ratings of structured finance securities indirectly exposed to the declining credit quality of certain US and European banks with global capital market operations which Moody's downgraded on June 21, 2012. Moody's also downgraded two repackaged transactions linked to the credit quality of two Spanish banks, Banco Santander S.A. and Banco Bilbao Vizcaya Argentaria SA, which Moody's downgraded on June 25, 2012. The rating actions affect 75 repackaged securities in Europe, and one residential mortgage bond tranche. A list of the Affected Credit Ratings is available at: http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF290300 Ratings Rationale The reason for Moody's actions is the linkage between the ratings of the structured finance securities and those of the banks. This linkage is due to the exposure of the structured finance securities to the declining credit quality of certain European and US banks each of which acts as either the swap counterparty, the guarantor of the securities, the issuer of collateral securities, or the reference credit in the transaction. Each related swap counterparty, underlying security, guarantor or reference entity is detailed in the excel link at the beginning of this announcement. These transactions are generally standard repackaged transactions or credit linked notes. In 65 of the transactions, there is a swap embedded in the structure, whereby the swap counterparty ultimately pays what is due under the notes. The remaining transactions have exposure in the form of either the issuer of the collateral, the issuer of the transaction, the guarantor or the reference entity. In each case the risk is strongly linked to one of the downgraded banks in some form, and the impact of such linkage on each rating is assessed by either an expected loss calculation by overlaying the default risk of counterparty onto the default risk of the referenced credit, or by passing through the rating of the underlying entity. Each related affected entity, the role they perform, and a description of the quantitative analysis if used in each deal is detailed in the link at the beginning of this announcement (see columns N, O, and Q). Moody's notes that these transactions are subject to a high level of macroeconomic uncertainty, which could negatively impact the ratings of the notes, as evidenced by 1) uncertainties of credit conditions in the general economy and 2) the acute sovereign and banking crisis in the euro area, which is weakening the credit profiles of banks exposed to the currency union. This crisis accentuates challenges facing banks globally. As the Euro area crisis continues, the rating of the structured finance notes remain exposed to the uncertainties of credit conditions in the general economy. The deteriorating creditworthiness of euro area sovereigns as well as the weakening credit profile of the global banking sector could negatively impact the ratings of the notes. The principal methodology used in these ratings was "Moody's Approach to Rating Repackaged Securities" published in April 2010. As described in the link (column Q), certain transactions utilize expected loss calculation as described below. For these transactions Moody's also considered various sensitivity scenarios including a consideration of different recoveries upon default. In all cases, the corresponding outcomes are consistent with the rating assigned on July 2. Moody's quantitative analysis of Repacks is designed to estimate the expected loss "EL" borne by the Repack investor, given the transaction structure, the Collateral and any other credit risks arising under the transaction. To this end, Moody's relies on an EL analysis in which we identify and attach probabilities to events that might give rise to losses to Repack noteholders. Moody's EL calculation assesses the probability and severity of each possible loss-inducing event happening at discrete (typically one-year) intervals through the life of the transaction. The EL for each of these time points can then be aggregated to provide a weighted-average EL for the rated notes. For the remaining transactions, no additional cash flow analysis or stress scenarios have been conducted (also noted in column Q in the excel link) as the rating was directly derived from the rating of the relevant affected entities. ********* 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 * * *