/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/130809.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, August 9, 2013, Vol. 14, No. 157 Headlines B E L G I U M DEXIA SA: Posts Net Loss of EUR905-Mil. in First Half 2013 C R O A T I A * CITY OF ZAGREB: S&P Alters Outlook to Neg. & Affirms 'BB+' ICR G E R M A N Y MINIMAX VIKING: Moody's Cuts Rating on 1st Lien Debts to '(P)B2' PROVIDE GEMS 2002-1: Fitch Affirms 'C' Ratings on 2 Note Classes SMP DEUTSCHLAND: Fitch Cuts LT Issuer Default Rating to 'B-' G R E E C E EXCEL MARITIME: US Court OKs Vessels Sale for US$43.2 Million EXCEL MARITIME: Creditors Ask U.S. Court to End Exclusivity I R E L A N D EVENTELEPHANT: High Court Orders Liquidation After Cash Flow Woes HARVEST CLO: Fitch Assigns 'BB(EXP)' Rating to Class E Notes I T A L Y BANCA CARIGE: S&P Cuts LT Counterparty Credit Rating to 'B+' BANCA MONTE: Posts EUR279.3-Mil. Net Loss in 2nd Quarter 2013 BANCA POPOLARE: S&P Cuts Subordinated Debt Rating to 'B' GAMENET SPA: S&P Assigns 'B+' Corporate Credit Rating VENETO BANCA: S&P Cuts Issue Ratings to 'CCC+' From 'B-' L I T H U A N I A BANKAS SNORAS: Finalizes Sale of Consumer Finance Unit S P A I N * SPAIN: "Bad Bank" Sells First Package of Real Estate Assets U N I T E D K I N G D O M ASSAYMETRICS: In Liquidation; Insolvency Probe Launched RANGERS FOOTBALL: Former Director Foresees Administration in Dec. X X X X X X X X * BOOK REVIEW: The Oil Business in Latin America: The Early Years ********* ============= B E L G I U M ============= DEXIA SA: Posts Net Loss of EUR905-Mil. in First Half 2013 ---------------------------------------------------------- James Fontanella-Khan at The Financial Times reports that Dexia, the Franco-Belgian bank that was one of the biggest victims of the financial crisis, suffered further losses in the first half of 2013, raising fears in Paris and Brussels that the troubled lender could further impact their recession-hit economies. According to the FT, the thrice bailed-out bank on Wednesday reported a net loss of EUR905 million in the first half of 2013, despite enjoying lower funding costs. In the same period a year ago, it lost EUR1.17 billion, the FT discloses. The performance of Dexia is being closely watched by French and Belgian authorities as their governments own most of the residual bank, the FT notes. They two countries were forced to inject EUR11 billion in fresh capital and provide EUR90 billion in state guarantees to save the bank in the aftermath of the 2008 crisis, the FT recounts. Further losses at Dexia -- once the world's biggest lender to municipalities -- raises the prospect of fresh capital injections or state guarantees from France and Belgium, the FT says. Dexia Chairman Robert de Metz said that although the economic environment remained uncertain, the bank was moving in the right direction and its top priority was to protect taxpayers' guarantees, the FT relates. Mr. de Metz, as cited by the FT, said the bank's progress had brought about a "further reduction of the systemic risk still represented by Dexia". According to the FT, government officials and analysts said Dexia hopes to return to profitability by 2018 but still faces a number of hurdles. The Cour des Comptes, France's national auditor, warned in July that Paris, which it estimated had already lost EUR6.6 billion since it first bailed out the bank in 2008, had over-optimistic projections for the planned run-off of Dexia's remaining assets and could face further losses, the FT recounts. Dexia SA is a Belgium-based banking group with activities principally in Belgium, Luxembourg, France and Turkey in the fields of retail and commercial banking, public and wholesale banking, asset management and investor services. In France, Dexia Bank focuses on funding public sector bodies and providing financial services to local government. In Luxembourg, Dexia operates in two main areas: commercial banking (for personal and professional customers) and private banking (for international investors). In Turkey, Dexia is involved in retail and commercial banking and offers services to ordinary account holders, business and local public sector customers and institutional clients. The Company operates through its subsidiaries, such as Dexia Credit Local, DenizBank, Dexia Credicop, Dexia Sabadell, Dexia Kommunalbank Deutschland, Dexia Asset Management, among others. ============= C R O A T I A ============= * CITY OF ZAGREB: S&P Alters Outlook to Neg. & Affirms 'BB+' ICR ---------------------------------------------------------------- On Aug. 7, 2013, Standard & Poor's Ratings Services revised its outlook on the City of Zagreb to negative from stable. The 'BB+' long-term issuer credit rating was affirmed. Rationale The rating action reflects Stands & Poor's similar action on Croatia (see "Outlook On Croatia Revised To Negative On Structural Challenges Constraining Growth; Ratings Affirmed At 'BB+/B'," published Aug. 2, 2013, on RatingsDirect). Under S&P's methodology, a local or regional government (LRG) can be rated higher than its sovereign if the ratings agency believes that it exhibits certain characteristics, as described in "Methodology: Rating A Regional Or Local Government Higher Than Its Sovereign," published Sept. 9, 2009. These include: -- The ability to maintain stronger credit characteristics than the sovereign in a stress scenario. This includes, among other factors, lack of dependence on the sovereign for any applicable share of its revenues and a wealthier and more diversified economy than the sovereign; -- An institutional framework that limits the risk of negative sovereign intervention; and -- The ability to mitigate negative sovereign intervention through financial flexibility and independent treasury management. "We do not currently believe that Croatian LRGs, including Zagreb, meet these conditions. Among other factors, we consider that Zagreb lacks sufficient financial autonomy to effectively resist significant sovereign intervention, in particular changes to the tax-sharing rate," S&P said. "Consequently, we do not see a possibility that we may rate Zagreb higher than Croatia," S&P said. Outlook "The negative outlook mirrors that on Croatia, indicating that we could lower our rating on the Zagreb should we lower our sovereign rating on Croatia, all else being equal. "We would likely revise the outlook on Zagreb to stable, all else being equal, if we revised the outlook on Croatia to stable. We could lower the rating on Zagreb within 12 months even if the sovereign rating were to remain unchanged if, under our downside scenario, the city's budgetary performance and liquidity position deteriorated significantly. This could stem from declining revenues, as well as the government's need to provide additional support to city holding company Zagrebacki Holding and return payables owed to the central government," S&P said. Alternatively, a downward revision of S&P's assessment of the supportiveness and predictability of the institutional framework under which Croatian local governments operate could also lead the rating agency to lower the rating on Zagreb. ============= G E R M A N Y ============= MINIMAX VIKING: Moody's Cuts Rating on 1st Lien Debts to '(P)B2' ---------------------------------------------------------------- Moody's Investors Service downgraded the rating for the Minimax Viking Group's first lien term loan facility and the revolving credit facility to (P)B2 (LGD3, 45%) from (P)B1 (LGD3, 41%). At the same time, Moody's withdrew the (P)Caa1 rating (LGD5, 89%) assigned to the second lien term loan facility. The B2 Corporate Family Rating and the B2-PD Probability of Default Rating to Minimax Viking GmbH as well as the stable outlook on all the ratings remain unchanged. The rating action is triggered by the change in the capital structure for the group's ongoing refinancing transaction. Given an oversubscription in the syndication, Minimax announced on August 5, 2013 to pursue a reverse flex to the pricing and structure of its recapitalization that tightens margins and cuts the initially proposed second lien term loan of EUR60 million. At the same time, the first lien term loan will be increased from the original EUR600 million to a total of EUR630 million, which will remain equally split between euros and dollars. As a result, total facilities to be arranged will decrease to EUR630 million (all first lien) from EUR660 million (first lien + second lien), leading to a slightly improved leverage by around 0.2x debt/EBITDA compared to the original structure. There will be no change in the EUR40 million committed revolving credit facility. The guarantee facility has been reduced to EUR130 million from the original EUR145 million, however, balanced by the flexibility to increase bilateral guarantees outside the senior facility agreement. In addition, the amended transaction will likely lead to slightly improved cash flow generation, driven by lower than initially expected interest rates as well as a lower initial total debt figure. Therefore the amendment is positive for the positioning of Minimax in its B2 rating category, but negative for the first lien debt holders, as there is no second lien debt available any more to take the first loss in case of a default of the entity. Hence, the downgrade of the first lien notes to (P)B2, which is in line with the assigned corporate family rating. Structural Consideration -- Moody's has assigned a Corporate Family Rating (CFR) of B2 and a probability of default rating (PDR) of B2-PD to Minimax. Given the upstream guarantees from material subsidiaries as well as pledges of security package (encompassing inter alia main tangible and intangible assets of material subsidiaries), Moody's gives first ranking to the EUR630 million first lien term loan and the EUR40 million RCF, which rank pari passu with EUR77 million trade claims as of year-end 2012, followed by an unsecured EUR65 million pension deficit and EUR25 million lease rejection claims due in one year. As the second lien term loan, which is a subordinated tranche and could serve as a cushion for possible default loss, has been completely cut in the new capital structure, Moody's decided to position the first lien facilities at the same rating level as the CFR, leading to a downgrade to (P)B2 from originally assigned (P)B1. Accordingly, the (P)Caa1 rating assigned to second lien facilities was withdrawn. Moody's issues provisional ratings in advance of the final sale of securities and these reflect the rating agency's credit opinion regarding the transaction only. Upon a conclusive review of the final documentation, Moody's will endeavor to assign definitive ratings to these instruments. A definitive rating may differ from a provisional rating. The following ratings have been assigned: Downgrades: Issuer: Minimax GmbH & Co. KG EUR45M Senior Secured Bank Credit Facility, Downgraded to (P)B2 from (P)B1 EUR45M Senior Secured Bank Credit Facility, Downgraded to a range of LGD3, 45 % from a range of LGD3, 41 % Issuer: MX Holdings US, Inc. EUR315M Senior Secured Bank Credit Facility, Downgraded to (P)B2 from (P)B1 EUR315M Senior Secured Bank Credit Facility, Downgraded to a range of LGD3, 45 % from a range of LGD3, 41 % Issuer: MX Mercury Beteiligungen GmbH EUR270M Senior Secured Bank Credit Facility, Downgraded to (P)B2 from (P)B1 EUR270M Senior Secured Bank Credit Facility, Downgraded to a range of LGD3, 45 % from a range of LGD3, 41 % EUR40M Senior Secured Bank Credit Facility, Downgraded to (P)B2 from (P)B1 EUR40M Senior Secured Bank Credit Facility, Downgraded to a range of LGD3, 45 % from a range of LGD3, 41 % Outlook Actions: Issuer: Minimax GmbH & Co. KG Outlook, Remains Stable Issuer: Minimax Viking GmbH Outlook, Remains Stable Issuer: MX Holdings US, Inc. Outlook, Remains Stable Issuer: MX Mercury Beteiligungen GmbH Outlook, Remains Stable Withdrawals: Issuer: MX Holdings US, Inc. EUR60M Senior Secured Bank Credit Facility, Withdrawn , previously rated (P)Caa1 EUR60M Senior Secured Bank Credit Facility, Withdrawn , previously rated a range of LGD5, 89 % Ratings Rationale: The B2 Corporate Family Rating balances (i) the company's resilience against economic cycles driven by a high share of recurring revenues, (ii) a strong market position in core markets reflecting its one-stop shopping approach and (iii) high barriers to entry predominantly driven by regulations related to fire protection equipment with (i) high leverage as evidenced by a debt/EBITDA ratio pro forma for the transaction of 6.3-6.8x as expected per full year 2013, (ii) relatively low profitability despite the regulatory nature of its markets and a high share of recurring services business, (iii) limited regional diversification with 51% of turnover generated in Europe, and Germany accounting for a major part of this, and 35% in the US, and (iv) a shareholder oriented financial policy, as evidenced by the repayment of a major part of Minimax' shareholder loan. The outlook on the ratings is stable balancing the stability of the business model with the risk resulting from the initially high leverage. It assumes that Minimax is able to generate a stable EBITDA margin of above 12% as adjusted by Moodys (per 2012: 11.9%), to continue to generate positive free cash flows and to gradually reduce leverage to below 6.0x at the latest by the end of 2014. An upgrade of the CFR would be considered should the company manage to sustainably bring EBITDA margin (as adjusted by Moody's) above 15%, to increase the generation of cash flow reflected in RCF/Net debt exceeding 12% and FCF/Debt exceeding 5% and to reduce leverage sustainably below 5x debt/EBITDA. A rating downgrade would be considered should the EBITDA margin of the group fall below 11% or if the company is not able to lower leverage below 6x debt/EBITDA. Likewise, a deterioration of its liquidity profile or Cash Flow generation weakening below 8% RCF/Net debt or 2% FCF/Debt could result in a downgrade. The principal methodology used in these ratings was the Global Manufacturing Industry 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. Headquartered in Bad Oldesloe, Germany, Minimax Viking GmbH collectively with its subsidiaries is operating internationally in the fire protection and detection markets. The group serves its industrial and commercial clients by developing, manufacturing and installing tailor-made solutions that comply with international safety standards and offers follow-up services post system installation. During 2012, Minimax group, of which the majority of its shares is owned by funds advised by IK Investment Partners, generated revenues of EUR1.1 billion with its 6,531 employees. PROVIDE GEMS 2002-1: Fitch Affirms 'C' Ratings on 2 Note Classes ---------------------------------------------------------------- Fitch Ratings has upgraded three tranches and affirmed three tranches of Provide GEMS 2002-1 Plc, as follows: Class A+ (ISIN XS0145700398): upgraded to 'AAAsf' from 'AA+sf'; Outlook Stable Class A (ISIN XS0145700471): upgraded to 'AAAsf' from 'AA-sf'; Outlook Stable Class B (ISIN XS0145701289): upgraded to 'BBBsf' from 'BBB-sf'; Outlook Positive Class C (ISIN XS0145701792): affirmed at 'CCsf'; Recovery Estimate revised to 75% from 85% Class D (ISIN XS0145701875): affirmed at 'Csf'; Recovery Estimate 0% Class E (ISIN XS0145702170): affirmed at 'Csf'; Recovery Estimate 0% This German RMBS transaction is fully backed by second-lien mortgage loans originated by Rheinische Hypothekenbank, now part of Hypothekenbank Frankfurt AG (A-/Stable/F1). KEY RATING DRIVERS Stabilized Performance Over the past 12 months, the volume of loans in arrears by more than three months (excluding credit events) has remained stable at under EUR1.5 million. In addition, loans defined as credit events have declined to EUR36.1 million (23% of the then current balance) from EUR49 million in June 2012 (24.9%). According to the investor reports, the reduction has largely been driven by the removal of loans due to ineligibility with the warranties, which over the past year amounted to EUR9.1 million. Meanwhile, EUR4 million of loans have been liquidated with reported period loss severities ranging between 64% and 115%. Credit Enhancement Sufficient to Withstand Rating Stresses The notes in the structure are amortizing sequentially, which has resulted in a significant build-up in credit support available to the top of the structure. As of June 2013, the credit enhancement available to the class A+ and class A notes was 91% and 70.6%, respectively, (compared with 17% and 14% at transaction close). Given the second-lien nature of the portfolio and the low levels of recoveries achieved following the sale of the underlying assets, Fitch has assumed zero recoveries on loans presently defined as credit events and any future loans expected to meet the credit event definition. The analysis showed that the level of credit enhancement available at the top end of the structure is sufficient to meet the expected losses and for this reason the agency has upgraded the class A+, A and B notes to 'AAAsf' and 'BBBsf'. The analysis also showed that further loss allocation can be expected at the bottom end of the structure, where the class E notes presently have losses allocated to their full outstanding balance, while the class D notes' allocated loss equates to 7% of their balance. This expectation is reflected in the 'CCsf' and 'Csf' ratings on the class C, D and E notes. RATING SENSITIVITIES The transaction is susceptible to the performance of the underlying assets. A sudden deterioration in asset performance could lead to higher levels of credit events and losses for the structure, which in turn would put pressure on the credit enhancement levels, particularly at the bottom end of the structure. SMP DEUTSCHLAND: Fitch Cuts LT Issuer Default Rating to 'B-' ------------------------------------------------------------ Fitch Ratings has downgraded SMP Deutschland GmbH's (SMP, formerly known as Peguform GmbH) Long-term Issuer Default Rating (IDR) to 'B-' from 'B'. The Short-Term IDR is affirmed at 'B'. The Outlook is Negative. The Rating Watch has been resolved. The rating action reflects the affirmation of SMP's stand-alone rating at 'B-', while removing the one-notch uplift, representing potential support from the stronger credit profile of its parents, Motherson Sumi Systems Limited (MSSL) and Samvardhana Motherson International Limited (SMIL). While MSSL's operating performance remains strong, the higher level of group consolidated leverage compared to Fitch's previous forecast for 2013 and 2014 raises the issue of the ability to support SMP if needed leading to the removal of the one notch uplift for SMP's rating. The Negative Outlook reflects SMP's considerable underperformance against plan for FY12, and ongoing operational issues at some of the production plants. Although Q213 results are in line with the company's business plan, they are still below Fitch's earlier expectations for FY13. The ability of turning around operations will be a key factor in maintaining the rating at the current level. Fitch has factored in the group's large capex requirements to solve operational issues and fund expansion for new orders. Fitch has noted margin pressures from continuing input cost inflation, and pricing pressures from OEM suppliers, most notably the Volkswagen group In the medium- to long-term, earnings could improve, as operational issues at some of its plants are resolved, launch costs from model changes abate and margins from customers improve. Key Rating Drivers - Weak Business Profile SMP is a leading manufacturer of plastic car cockpits, bumpers and door trims in Germany, Spain, China and Latin America. It benefits from a long-standing relationship with Volkswagen AG (A- /Positive), which has historically accounted for a substantial portion of SMP's revenues. However, concentration risk is reducing, thanks to new orders from Daimler and BMW. - Parent Acquisition Debt Not Included Although strategically core, SMP's operations are independent from its Indian parents. The EUR190 million acquisition debt raised by SMP GmbH is not an obligation of SMP and is fully guaranteed and serviced by the ultimate parents, MSSL and SMIL. This acquisition debt is therefore not included in Fitch's computation of SMP's leverage. - Covenant Breach at SMP Group Iberica "We remain concerned about repeated covenant breaches at SMP Group Iberica, which is SMP's loss-making (consolidated) Spanish operations, given ever more stringent covenants. The company breached the Spanish entity's consolidated debt/EBITDA covenant under its EUR180 million facility agreement at end-March 2012 and end March 2013, which was subsequently waived by banks. However, SMP group level covenants were not breached," Fitch says. - Strong Margin Pressures "We forecast revenue growth in the mid-single digits and continued margin pressures from continuing input cost inflation and ongoing operational issues at some plants in the near-term. In the longer term, we expect earnings to improve, as operational issues are resolved, launch costs from model changes abate and margin from customer orders improve compared with historically lower profit projects," Fitch states. - Tight Liquidity: SMP's liquidity is tight, although it benefits from comfort letters provided by the Indian parents. Cash on balance sheet of more than EUR40 million at end-2012 is sufficient to cover an estimated EUR30 million in debt maturities in 2013. These cash reserves and cash generated from operations (CFO) is, however, barely sufficient to cover capex requirements and debt servicing. - Break-even Free Cash Flow Fitch currently expects the EBITDA margin to remain in excess of 4% for 2013 and 2014, funds from operations (FFO) adjusted leverage at or above 3.0x and free cash flow returning to breakeven levels. Rating Sensitivities Positive: The ratings could be stabilized, if operational issues are resolved successfully, SMP's EBIT margin is sustainably above 2%, FCF margin is neutral to positive and FFO adjusted leverage is sustainably below 4.0x. Negative: The ratings could be further downgraded on signs of liquidity stress or continued operational problems leading to SMP not achieving the above mentioned guidelines In accordance with Fitch's policies, the issuer appealed and provided additional information to Fitch that resulted in a rating action that is different than the original rating committee outcome. =========== G R E E C E =========== EXCEL MARITIME: US Court OKs Vessels Sale for US$43.2 Million ------------------------------------------------------------- BankruptcyData reported that a bankruptcy court in the United States approved Excel Maritime Carriers' motion for an order authorizing the sale of vessels free and clear of liens, claims, interests and encumbrances for an amount of US$43.2 million and dismissing the Odell and Minta cases upon consummation of the sale. Prior to commencement of the Chapter 11 cases, Excel Maritime Carriers began negotiating with Credit Suisse to restructure and settle the obligations under the Odell/Minta Facility, including possibly via an agreed foreclosure proceeding or the Debtors' formal abandonment of the vessels to Credit Suisse, pursuant to Section 554 of the Bankruptcy Code. Excel Maritime Carriers and Credit Suisse ultimately reached an agreement whereby the Company will sell 100% of its stock ownership of Odell and Minta, pursuant to a sale under section 363 of the Bankruptcy Code. In short, Credit Suisse (the stalking horse bidder) has agreed to credit bid, pursuant to Section 363(k) of the Bankruptcy Code, up to the maximum amount of its secured claim against the vessels securing the Odell/Minta Facility. If Credit Suisse is the successful bidder, the transaction will be effectuated by a transfer by Excel Maritime Carriers of the shares in Odell and Minta, with Credit Suisse directing the stock to Blueberry Shipping. About Excel Maritime Based in Athens, Greece, Excel Maritime Carriers Ltd. -- http://www.excelmaritime.com/-- is an owner and operator of dry bulk carriers and a provider of worldwide seaborne transportation services for dry bulk cargoes, such as iron ore, coal and grains, as well as bauxite, fertilizers and steel products. Excel owns a fleet of 40 vessels and, together with 7 Panamax vessels under bareboat charters, operates 47 vessels (5 Capesize, 14 Kamsarmax, 21 Panamax, 2 Supramax and 5 Handymax vessels) with a total carrying capacity of approximately 3.9 million DWT. Excel Class A common shares have been listed since Sept. 15, 2005, on the New York Stock Exchange (NYSE) under the symbol EXM and, prior to that date, were listed on the American Stock Exchange (AMEX) since 1998. The company blamed financial problems on low charter rates. The balance sheet for December 2011 had assets of US$2.72 billion and liabilities totaling US$1.16 billion. Excel owes US$771 million to secured lenders with liens on almost all assets. There is US$150 million owing on 1.875 percent unsecured convertible notes. Excel Maritime filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No. 13-23060) on July 1, 2013, in New York after signing an agreement where secured lenders owed US$771 million support a reorganization plan filed alongside the petition. Excel, which sought bankruptcy with a number of affiliates, has tapped Skadden, Arps, Slate, Meagher & Flom LLP, as counsel; Miller Buckfire & Co. LLC, as investment banker; and Global Maritime Partners Inc., as financial advisor. A five-member official committee of unsecured creditors was appointed by the U.S. Trustee. EXCEL MARITIME: Creditors Ask U.S. Court to End Exclusivity ----------------------------------------------------------- Reuters reported that unsecured creditors of drybulk shipper Excel Maritime Carriers Ltd have asked a bankruptcy court in the United States to terminate the exclusivity period for the company's reorganization plan, saying the package benefited only secured lenders and controlling shareholders. The exclusivity period refers to the 120-day period in which only the company can file a plan of reorganization after a bankruptcy petition, the report noted. Excel's exclusivity period started on July 1 and as long as it is in effect no competing plans can be put forward, the report further noted. The committee representing the unsecured creditors said late last month that Excel's bondholders were planning to file a rival reorganization plan, the report related. Excel will get US$50 million of new capital and access to US$30 million of restricted cash under the current reorganization plan between Excel and its senior lenders and an entity affiliated with the family of Chairman Gabriel Panayotides, the report added. About Excel Maritime Based in Athens, Greece, Excel Maritime Carriers Ltd. -- http://www.excelmaritime.com/-- is an owner and operator of dry bulk carriers and a provider of worldwide seaborne transportation services for dry bulk cargoes, such as iron ore, coal and grains, as well as bauxite, fertilizers and steel products. Excel owns a fleet of 40 vessels and, together with 7 Panamax vessels under bareboat charters, operates 47 vessels (5 Capesize, 14 Kamsarmax, 21 Panamax, 2 Supramax and 5 Handymax vessels) with a total carrying capacity of approximately 3.9 million DWT. Excel Class A common shares have been listed since Sept. 15, 2005, on the New York Stock Exchange (NYSE) under the symbol EXM and, prior to that date, were listed on the American Stock Exchange (AMEX) since 1998. The company blamed financial problems on low charter rates. The balance sheet for December 2011 had assets of US$2.72 billion and liabilities totaling US$1.16 billion. Excel owes US$771 million to secured lenders with liens on almost all assets. There is US$150 million owing on 1.875 percent unsecured convertible notes. Excel Maritime, filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No. 13-bk- 23060) on July 1, 2013, in New York after signing an agreement where secured lenders owed US$771 million support a reorganization plan filed alongside the petition. Excel, which sought bankruptcy with a number of affiliates, has tapped Skadden, Arps, Slate, Meagher & Flom LLP, as counsel; Miller Buckfire & Co. LLC, as investment banker; and Global Maritime Partners Inc., as financial advisor. A five-member official committee of unsecured creditors was appointed by the U.S. Trustee. ============= I R E L A N D ============= EVENTELEPHANT: High Court Orders Liquidation After Cash Flow Woes ----------------------------------------------------------------- Aodhan O'Faolain and Ray Managh at The Irish Times report that the High Court has ordered the winding up of Eventelephant. According to the Irish Times, the court made the order after being told the company had no prospect of survival. The company had been in examinership since mid-July, the Irish Times notes. On Wednesday, following an application by the firm's interim examiner Joseph Walsh, Mr. Justice Paul McDermott removed the protection of the courts from the company, the Irish Times relates. The judge also appointed Mr. Walsh and Neil Hughes as joint liquidators of the firm, the Irish Times discloses. The company's directors had petitioned the court last month for Mr. Walsh's appointment after experiencing cash-flow difficulties, arguing it had a reasonable prospect of survival as a going concern if certain measures could be agreed with its creditors, the Irish Times recounts. However, on Wednesday, solicitor Barry Lyons for Mr. Walsh asked the court to end the examinership because monies promised by the firm's directors to pay staff wages during the period of protection had not been made available, the Irish Times notes. Staff were leaving the company and in order to protect the value of the firm's assets, maximize the return to creditors, and save some of the jobs, it was appropriate Eventelephant be wound up, the Irish Times discloses. Mr. Lyons added that Mr. Walsh also had concerns about a criminal investigation into the company currently being undertaken by Revenue, the Irish Times notes. According to the Irish Times, Mr. Walsh also had sought information about EUR1.4 million in funds which had not been paid over by the company to parties who had organized events. The court heard that the appointment of a liquidator would protect those funds pending the completion of an investigation, according to the Irish Times. The company's main creditors include the Revenue Commissioners and AIB, the Irish Times discloses. Eventelephant is an Irish software firm which creates web pages to advertise and sell tickets for events. HARVEST CLO: Fitch Assigns 'BB(EXP)' Rating to Class E Notes ------------------------------------------------------------ Fitch Ratings has assigned Harvest CLO VII Ltd's notes expected ratings, as follows: EUR177.0m Class A: 'AAA(EXP)sf'; Outlook Stable EUR34.0m Class B: 'AA+(EXP)sf'; Outlook Stable EUR20.0m Class C: 'A(EXP)sf'; Outlook Stable EUR13.6m Class D: 'BBB+(EXP)sf'; Outlook Stable EUR23.0m Class E: 'BB(EXP)sf'; Outlook Stable EUR42.0m Subordinated Notes: not rated Key Rating Drivers Sufficient Credit Enhancement Credit enhancement (CE) for the rated notes, in addition to excess spread, is sufficient to protect against portfolio default and recovery rate projections in the applicable rating scenario. The level of CE for the rated notes is higher than the average for Fitch-rated legacy CLOs. 'B'/'B-' Portfolio Credit Quality Fitch expects the average credit quality of obligors to be in the 'B'/'B-' range. Above-Average Recoveries At least 90% of the portfolio will comprise senior secured loans and senior secured bonds. Recovery prospects for these assets are typically more favorable than for second-lien, unsecured, and mezzanine assets. Limited Basis/Reset Risk Basis and reset risk is naturally hedged for most of the portfolio through the floating rate, semi-annually paying liabilities. Fixed rate assets can account for no more than 10% of the portfolio and no more than 5% of the assets can pay interest less frequently than semi-annually. Limited FX Risk Asset swaps are used to mitigate any currency risk from non-euro- denominated assets. The manager may leave non-euro assets purchased in the primary market unhedged for up to six months from purchase provided they do not exceed 5% of the portfolio notional. All other non-euro assets have to be hedged using suitable asset swaps. Non-euro assets are limited to 30% of the portfolio. Unhedged assets up to the 5% limit are subject to a 50% haircut in the overcollateralization tests. A haircut of 100% is applied to any excess unhedged assets. Transaction Summary Harvest CLO VII Ltd (the issuer) is an arbitrage cash flow CLO. Net proceeds from the issuance of the notes will be used to purchase a EUR300 million portfolio of European leveraged loans and bonds. The portfolio is managed by 3i Debt Management Investments Limited. The reinvestment period is scheduled to end in 2017. The transaction documents may be amended subject to rating agency confirmation or note holder approval. Where rating agency confirmation relates to risk factors, Fitch will analyze the proposed change and may provide a comment if the change would not have a negative impact on the then current ratings. Such amendments may delay the repayment of the notes as long as Fitch's analysis confirms the expected repayment of principal at the legal final maturity. If in the agency's opinion the amendment is risk-neutral from the perspective of the rating Fitch may decline to comment. Noteholders should be aware that the structure considers the confirmation to be given in the case where Fitch declines to comment. Rating Sensitivities A 25% increase in the expected obligor default probability would lead to a downgrade of one to three notches for the rated notes. A 25% reduction in the expected recovery rates would lead to a downgrade of one to four notches for the rated notes. ========= I T A L Y ========= BANCA CARIGE: S&P Cuts LT Counterparty Credit Rating to 'B+' ------------------------------------------------------------ Standard & Poor's Ratings Services said that it lowered its long- term counterparty credit rating on Italy-based Banca Carige SpA (Carige or the bank) to 'B+' from 'BB-'. "The long-term rating remains on CreditWatch with negative implications, where we placed it on March 22, 2013. We also placed the 'B' short-term counterparty credit rating on Carige on CreditWatch with negative implications. At the same time, we lowered the ratings on Carige's non- deferrable subordinated and junior subordinated debt to 'CCC-' from 'CCC+' and 'CCC', respectively. All debt ratings remain on CreditWatch with negative implications," S&P said. The lowering of the long-term rating on Carige follows the recent announcement of resignations of the majority of Carige's board members and the request by the Bank of Italy that Carige reclassify about EUR600 million of booked loans as nonperforming assets (NPAs). "In our view, these developments suggest increased execution risk for Carige's capital strengthening plans, additional weakness in its management and strategy, and greater challenges for its business stability than we had previously incorporated into the ratings," S&P said. Between July 31 and Aug. 2, 2013, Carige announced the resignation of eight out of 15 members of its board of directors. According to Carige, the resignations are in line with a plan to improve its governance and align it with best practices in the Italian banking sector, as established by the Bank of Italy. "We understand that new board members will be voted upon by Carige's shareholders at an extraordinary shareholders' meeting, which, we understand, is required by law due to the resignation of the majority of the board members," S&P said. According to Carige's management, the extraordinary shareholders' meeting will likely take place end-September or beginning of October. In the meantime, the bank has confirmed all 15 current board members will remain in place. There has not been any further announcement about the future membership of Carige's board or any potential subsequent changes to its other governing bodies. In addition, Carige's second-quarter results announced on Aug. 1, 2013 revealed a net loss of EUR78 million, driven by higher loan loss provisions. The latter were mainly related to the reclassification, at the request of the Bank of Italy, of about EUR600 million of booked loans as NPAs (or 2.3% of reported gross loans). "In our view, the reclassification suggests additional weaknesses in Carige's risk management and internal control processes," S&P said. "In our view, the uncertainties that have arisen following the resignations of the board members and what we see as risk management and internal control issues that led to the reclassification suggest greater-than-anticipated challenges for Carige's business stability and weaker management and strategy," S&P said. "As a result, we have revised our assessment of Carige's business position to 'moderate' from 'adequate.' "In our view, these uncertainties could further increase what we already considered to be material execution risks associated with Carige's capital strengthening plan, which follow the Bank of Italy's request for Carige to improve its solvency levels. We had already anticipated that Carige's plan to raise a total of EUR800 million through asset disposals and a new rights issue would be particularly challenging given the prevailing difficult economic environment. We also note that we do not typically factor into our ratings a bank's plans for realizing capital gains on asset sales until we have certainty about their timing and size, particularly when economic conditions are tough. As a result, we now consider that it will be increasingly difficult for Carige to achieve a projected risk-adjusted capital (RAC) ratio sustainably in the 4%-5% range through these measures. Therefore, in our assessment of Carige's stand-alone credit profile (SACP) we take into account that Carige's capital and earnings position is now primarily based on a RAC ratio in the 3%-4% range. Our RAC ratio for Carige as of end-2012 is 3.4%," S&P said. "As a result of our lower assessment of Carige's business and capital positions, we have revised down Carige's SACP to 'ccc+' from 'b'. "However, our revised view of Carige's capital has not affected the ratings on Carige as we now incorporate into the ratings one notch of uplift for short-term capital support. This uplift reflects our view that, if Carige is unable to complete its capital strengthening plan, we consider it likely that its solvency levels would still improve to comply with the capital improvement requested by the Bank of Italy, so that our RAC ratio for Carige would likely be in the range of 4%-5%, either through a market-based solution, or regulatory action," S&P said. "As a result, we have lowered our long-term rating on Carige by one notch to 'B+' from 'BB-' despite the two-notch lowering of the bank's SACP. "Consistent with our criteria, we have also lowered the ratings on Carige's nondeferrable subordinated and junior subordinated debt to 'CCC-' from 'CCC+' and 'CCC', respectively, due to the lowering of Carige's SACP. "The CreditWatch reflects the possibility that we could lower the long-term rating on Carige if we consider that the uncertainties about the membership of, and strategic guidelines set by, Carige's board of directors are likely to have a negative impact on its business and financial profiles," S&P said. S&P could also lower the ratings if it anticipates, contrary to its current expectations, and all else being equal that: -- Carige would be unable to implement a credible plan to reduce its exposure to funding from the European Central Bank (ECB) and correct funding imbalances to achieve a more sustainable liquidity position by the time the ECB's Long-Term Refinancing Operations expire. -- Carige would be unable to complete its capital strengthening plan without either a market-based solution or regulatory action being put in place to restore its solvency at the level required by the regulator. "The CreditWatch placement on the short-term rating on Carige reflects the typical correlation with a long-term rating on a bank," S&P said. BANCA MONTE: Posts EUR279.3-Mil. Net Loss in 2nd Quarter 2013 ------------------------------------------------------------- Sonia Sirletti and Francesca Cinelli at Bloomberg News report that Banca Monte dei Paschi di Siena -- the Italian bank seeking to persuade European regulators it deserves a bailout -- reported a fifth straight loss in the second quarter on the cost of state aid and higher provisions for bad loans. According to Bloomberg, the net loss fell to EUR279.3 million (US$372 million) from EUR1.64 billion a year earlier, when Monte Paschi wrote down goodwill and intangible assets by more than EUR1.5 billion. Revenue in the second quarter fell 22% to EUR1.02 billion from a year earlier, hurt by lower income from lending and the state aid costs, Bloomberg discloses. Chief Executive Officer Fabrizio Viola is waiting for European regulators to approve the latest restructuring plan for Monte Paschi to retain rights to EUR4.1 billion of state aid, which it got from selling bonds to the government, Bloomberg says. The Siena-based bank, which must pay 9% annual interest on the bonds, plans more asset disposals, branch cuts and savings to return to profit this year, a necessary condition under the plan to avoid surrendering a stake to the government, Bloomberg notes. According to Bloomberg, Monte Paschi's restructuring plan submitted to the European Commission in June "reflects a more fragile macroeconomic scenario as a result of the persisting economic crisis in Europe, with negative repercussions on revenue generation and loan loss provisions." The bank plans additional actions, targeting cost savings of EUR140 million in 2013 and EUR190 million in 2015, Bloomberg discloses. "The bank is ready to accept indications from EU Commission aimed at improving restructuring plan under review," Mr. Viola, as cited by Bloomberg, said. According to Bloomberg, a letter sent by EU competition Chief Joaquin Almunia to Finance Minister Fabrizio Saccomanni on July 16 said Europe's regulators may insist on tougher measures on cost-cutting, executive pay and treatment of creditors to approve the restructuring. Banca Monte dei Paschi di Siena SpA -- http://www.mps.it/-- is an Italy-based company engaged in the banking sector. It provides traditional banking services, asset management and private banking, including life insurance, pension funds and investment trusts. In addition, it offers investment banking, including project finance, merchant banking and financial advisory services. The Company comprises more than 3,000 branches, and a structure of channels of distribution. Banca Monte dei Paschi di Siena Group has subsidiaries located throughout Italy, Europe, America, Asia and North Africa. It has numerous subsidiaries, including Mps Sim SpA, MPS Capital Services Banca per le Imprese SpA, MPS Banca Personale SpA, Banca Toscana SpA, Monte Paschi Ireland Ltd. and Banca MP Belgio SpA. * * * As reported by the Troubled Company Reporter-Europe on June 19, 2013, Standard & Poor's Ratings Services said that it lowered its long-term counterparty credit rating on Italy-based Banca Monte dei Paschi di Siena SpA (MPS) to 'B' from 'BB', and affirmed the 'B' short-term rating. S&P also lowered its rating on MPS' Lower Tier 2 subordinated notes to 'CCC-' from 'CCC+'. S&P affirmed the ratings on MPS' junior subordinated debt at 'CCC-' and on its preferred stock at 'C'. At the same time, S&P removed the ratings from CreditWatch, where it placed them with negative implications on Dec. 5, 2012. BANCA POPOLARE: S&P Cuts Subordinated Debt Rating to 'B' -------------------------------------------------------- Standard & Poor's Ratings Services said that it has corrected an error in the issue rating on Italian Banca Popolare di Vicenza's non-deferrable subordinated debt by lowering such issue rating to 'B' from 'B+'. "Under our criteria, we rate subordinated debt two notches below a bank's stand-alone credit profile (SACP) when the SACP is 'bb+' or lower. When we took a rating action on Banca Popolare di Vicenza on July 24, 2013, we inadvertently lowered the above debt rating by one notch instead of two notches. "The action corrects this error," S&P said. GAMENET SPA: S&P Assigns 'B+' Corporate Credit Rating ----------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B+' corporate credit rating to Italy-based gaming company Gamenet S.p.A. The outlook is stable. "At the same time, we assigned the EUR200 million senior secured bond due 2018, issued by Gamenet, an issue rating of 'B+', and a recovery rating of '3', indicating our expectation of meaningful (50%-70%) recovery prospects for lenders in the event of a payment default," S&P said. "The 'B+' corporate credit rating on Gamenet reflects our view that the company has a "weak" business risk profile and an "aggressive" financial risk profile, according to our criteria," S&P said. Gamenet operates in Italy and is one of the leading players in the gaming machine segment (second concessionaire after GTECH S.p.A.). The group is a licensed gaming operator for betting and online products, although this segment is still marginal on a consolidated basis (less than 5% of consolidated revenues). "The final terms of the completed refinancing were broadly in line with our expectations when we assigned our preliminary 'B+' corporate credit rating on July 23, 2013. Our assessment of Gamenet's business risk profile as "weak" reflects the company's small scale (compared with other rated players) and limited geographic and product diversification. In particular, we consider the lack of diversification, and sole exposure to the waning Italian economy and declining consumer spending, along with our view of the maturing Italian gaming market after years of solid growth, as constraints. Furthermore, we take into account the risks of increasing tax pressure from the Italian gaming regulator (although we understand that industry players could have some flexibility to offset this by adjusting the payout). Gamenet operates within the Italian gaming machine industry, where it is one of the leading players. We view the segment as fairly fragmented, although it presents high barriers to entry in terms of long-term licenses (awarded up to 2022) and sizable investments," S&P said. "We assess Gamenet's financial risk profile as "aggressive," mostly reflecting its financial sponsor ownership. Gamenet is controlled by private equity Trilantic Capital Partners. As per our criteria, despite financial sponsor ownership, our assessment of Gamenet's financial risk profile as "aggressive" reflects our projected adjusted leverage ratio at consistently less than 5.0x, the company's "adequate" liquidity profile, and our perception that the risk of material releveraging is low and that adjusted leverage will remain at less than 5.0x. Our assessment is based on what we see as a fairly conservative track record of the financial sponsor with regard to financial policy and risk appetite," S&P said. The issue rating on the EUR200 million senior secured notes is 'B+'. "The recovery rating on these instruments is '3', reflecting our expectation of meaningful (50%-70%) recovery in the event of a payment default. The recovery and issue ratings are underpinned by our evaluation of Gamenet as a going concern and the company's fairly simple capital structure," S&P said. "At the same time, the recovery and issue ratings are constrained by our view of the weak security package only comprising share pledges (on the entity that generates 100% of EBITDA), and the likelihood of insolvency proceedings being adversely influenced by Gamenet's Italian domicile. We view Italy as having a relatively unfavorable insolvency regime for secured creditors," S&P said. The senior secured notes benefit from relatively standard terms for an issue of this nature. The notes include a standard package of non-financial covenants restricting disposals, liens, mergers, sale of assets, dividend payments and incurrence covenants. This will limit the incurrence of additional indebtedness in case the fixed-charge coverage ratio is less than 2.0x and of senior secured indebtedness in case the consolidated secured leverage ratio is greater than 3.0x. The documentation allows for up to EUR35 million in a revolving credit facility, a EUR15 million finance lease, and a EUR40 million general basket including any refinancing. However, priority indebtedness will be limited to EUR15 million. As required under applicable law to secure its obligations under its various concessions, the issuer has procured certain off- balance-sheet guarantees linked to performance from bank and insurance companies. As of May 31, 2013, the total amount outstanding under these guarantees is EUR59 million. "Although we have not factored this into our recovery calculation, we believe there is a risk that a portion of these bank guarantees could be outstanding at the point of default and could rank pari passu with the rated notes, which, in our view, would dilute the recovery prospects for the bondholders," S&P said. "In order to determine recoveries, we simulate a default scenario. As a gaming company, Gamenet operates in a highly regulated sector. Therefore, our hypothetical default scenario assumes some decline in revenues and margins, primarily stemming from the potential introduction of regulatory and tax reforms in Italy and/or losing some licenses (online and betting) on their expiration. It also assumes deterioration in the current general economic environment, with rising unemployment reducing consumers' discretionary spending and retail earnings. Under our scenario, EBITDA declines to about EUR41 million by the time of our hypothetical point of default in 2017," S&P said. "In our simulated default, we value the business as a going concern, based on the company's strong market share, leading brands, cash-generative businesses, and barriers to entry. Under these assumptions, we calculate an enterprise value of about EUR225 million at our simulated point of default, equivalent to 5.5x EBITDA. In order to determine recovery prospects, we then deduct EUR16 million of priority obligations, which mostly comprise enforcement costs. This leaves a net enterprise value of about EUR210 million available to debtholders. On this basis, we see recovery prospects in the 50%-70% range for the EUR200 million senior secured debt. While the nominal calculated recovery is higher than the indicated threshold, we have assigned a recovery rating of '3'," S&P said. "This is because our criteria for the insolvency regime of Italy requires higher numerical coverage to lead to a higher recovery rating. The stable outlook reflects our expectation that the company will maintain leverage of less than 5.0x, preserve sufficient liquidity for operating needs, and continue to generate positive discretionary cash flow. The stable outlook also reflects our view that Gamenet's profitability will grow further over the next few years. We base this view on the company's strategy to expand its new product offering to betting and online through the roll out of 81 new betting licenses in selected gaming halls and the introduction of virtual races. Our view also reflects the expansion of Gamenet's directly managed retail network through the buyout of small point of sales," S&P said. "We could consider lowering the rating if adverse operating developments and/or a material departure from Gamenet's financial policy (in terms of a higher risk appetite) cause its credit metrics to significantly deteriorate. Specifically, the rating could come under pressure if adjusted EBITDA interest coverage declines to less than 3.0x and adjusted gross debt to EBITDA exceeds 5.0x, or if we reassess Gamenet's liquidity as "less than adequate" under our criteria," S&P said. "A positive rating action would depend on the group achieving better product diversification, sustaining a resilient operating performance, and steadily growing its profit and size. This would depend on a successful implementation of the strategic plan to enhance its betting and online offering, along with further consolidation in the machine segment and effective expansion of the controlled retail network. This, if combined with a consistently rigorous financial policy, could lead to a possible one-notch upgrade," S&P said. VENETO BANCA: S&P Cuts Issue Ratings to 'CCC+' From 'B-' -------------------------------------------------------- Standard & Poor's Ratings Services said that it has corrected an error in the issue ratings on Italian Veneto Banca SCPA's non- deferrable subordinated debt and preferred securities by lowering such issue ratings to 'B' from 'B+' and to 'CCC+' from 'B-', respectively. "Under our criteria, we rate subordinated debt two notches below a bank's stand-alone credit profile (SACP) when the SACP is 'bb+' or lower. When we took a rating action on Veneto Banca on July 24, 2013, we inadvertently lowered the above debt ratings by one notch instead of two notches," S&P said. Additionally, S&P rates preferred securities issued by Veneto Banca four notches below its SACP. "The action corrects this error," S&P said. ================= L I T H U A N I A ================= BANKAS SNORAS: Finalizes Sale of Consumer Finance Unit ------------------------------------------------------ Toomas Hobemagi at Baltic Business News reports that Snoras, Lithuania's bankrupt commercial bank in liquidation, said it has finalized the sale of its consumer finance company Snoro Lizingas (Snoras Leasing) on Wednesday. According to BBN, Snoro Lizingas was sold to Estonian bank LHV, investment group Zabolis Partners and the Rakauskas family, the owner of Senukai DIY chain. The transaction, including full repayment of loans to Snoras, was worth LTL74 million (EUR21.45 million), BBN discloses. "We are pleased to announce that we have sold Snoro Lizingas to a reliable investor group, which shall ensure continuing success of the company. This sale represents a good outcome for the creditors of Snoras," BBN quotes Snoras bankruptcy administrator, Neil Cooper, as saying. The balance of loans extended to Snoro Lizingas by Snoras totaled LTL66.341 million at the end of last year, BBN notes. About Bankas Snoras Bankas Snoras AB is Lithuania's fifth biggest lender. Snoras held LTL6.05 billion in deposits and had assets of LTL8.14 billion at the end of September. It competes with Scandinavian lenders including SEB AB, Swedbank AB (SWEDA), and Nordea AB. It also controls investment bank Finasta and Latvian lender Latvijas Krajbanka AS. As reported in the Troubled Company Reporter-Europe on Dec. 2, 2011, The Baltic Times, citing LETA/ELTA, said Vilnius District Court accepted the application regarding the initiation of bankruptcy proceedings against Snoras bank. The Bank of Lithuania delivered application on Snoras bankruptcy on Nov. 28, 2011. The TCR-Europe, citing Bloomberg News, reported on Nov. 28, 2011, that Lithuania's central bank said that Snoras' financial situation is "worse than previously identified" and saving the bank "would cost significantly more and would take longer than the available liquidity" at Snoras. Governor Vitas Vasiliauskas said at a news conference on Nov. 24 that some LTL3.4 billion (US$1.3 billion) in assets are missing, according to Bloomberg. ========= S P A I N ========= * SPAIN: "Bad Bank" Sells First Package of Real Estate Assets ------------------------------------------------------------- Miles Johnson at The Financial Times reports that Spain's "bad bank," established last year to clean up the country's real estate collapse, has sold its first package of real estate assets, to private equity group HIG Capital, in a transaction expected to set a precedent for a string of other deals. According to the FT, Sareb, the Spanish state run management company that houses assets transferred from the country's bailed out banks, said it had sold 51% of a portfolio including 939 homes to HIG, in a deal valuing the assets at EUR100 million. Senior executives at Sareb have said they hope the closure of the sale, known as "Project Bull", will pave the way for several larger but similarly structured sales to take place later this year and in 2014, the FT relates. The deal, which includes 750 other premises such as car parks and storage units and one retail unit, will be the first in Spain structured using a low tax financial vehicle known as a Bank Asset Fund (FAB), established to attract foreign buyers to invest in Sareb's assets, the FT discloses. FAB vehicles will pay only 1% corporation tax in Spain, and allow non-resident investors to avoid paying tax altogether, the FT notes. By retaining a 49% stake in the assets, Sareb is following a stated policy of wanting to hold on to what its management believe will be significant upside in the coming years, while completing its mandate to offload its EUR50 billion of assets within a 15-year timeframe, the FT states. Sareb was created by the Spanish government at the end of last year as a condition of the memorandum of understanding it signed with European authorities to receive bailout money for the troubled part of its banking sector, principally Bankia, which received the largest state banking rescue in the country's history, the FT recounts. =========================== U N I T E D K I N G D O M =========================== ASSAYMETRICS: In Liquidation; Insolvency Probe Launched ------------------------------------------------------- Western Mail reports that Assaymetrics has gone into liquidation. Directors of Assaymetrics, which is based at the Cardiff Medicentre, took the decision to wind up the company when it became insolvent, according to the report. Swansea-based liquidator McAlister and Co. is now in the process of realizing the assets of the business, Western Mail discloses. It is unclear at this stage how much money can be recovered for creditors, Western Mail notes. An investigation has also been launched into the reasons which led to the company becoming insolvent, the report relates. The business is now in the process of being broken up and will not be sold as a going concern, says. Cambridge-based TTP Lab-Tech has bought the majority of the intellectual property rights of Assaymetrics, Western Mail discloses. TTP LabTech also bought technical equipment from Assaymetrics, according to the report. It is understood the majority of the creditors are in England as well as some international creditors, according to Western Mail. Sandra McAlister -- sandra@mcalisterco.co.uk -- of McAlister and Co Insolvency Practitioners was appointed as liquidator at a meeting of creditors earlier this week, Western Mail recounts. Assaymetrics is a medical testing equipment company. RANGERS FOOTBALL: Former Director Foresees Administration in Dec. ----------------------------------------------------------------- The Scotsman reports that former Rangers director Dave King has warned that the Rangers Football Club could go into administration by Christmas unless Charles Green lowers his asking price and sells up. According to the Scotsman, the South African-based businessman is looking to acquire a controlling stake but has branded the current share asking price "absurd". Former Rangers chief executive Charles Green, who is now acting as a consultant for the club, has told minority shareholder Jim McColl that his consortium will sell its 28% stake in the club if given GBP14 million by Friday, the Scotsman relates. Mr. Green's consortium bought the assets of Rangers following its liquidation and formed a newco club, the Scotsman recounts. Mr. King's personal assets have been unfrozen after he reached agreement with the South African tax authorities although he still faces criminal charges, the Scotsman discloses. According to the Scotsman, he told the Mail: "I am absolutely 100% certain that none of these factors are an issue at the present moment. "The greater obstacle remains Green's insistence on seeking 70p for shares that are currently just worth over half that on the stock market. "The current regime has made offers of shares to me at various stages and various levels. "But the amounts on offer are insufficient to exercise any real control -- and I have regarded the share price they have been asking as absurd. "I am happy to be part of a recapitalization of the club. But my preference would be to be issued with new shares. And the money I provide must go into the club. "And it must be properly controlled and properly managed. "I don't see myself or anyone else putting money in to pay these guys off." Mr. King warned that the club was close to running out of money, the Scotsman relates. He said: "There is an inevitability to the fact that the people currently operating Rangers are going to run out of cash. "The club raised GBP22 million via an IPO (Initial Public Offering) and that was whittled down to virtually nothing. "I think it was down to GBP5 million or GBP6 million in the bank and has now got a boost via season ticket sales. "But the way, directors are spending money on Green's consultancy fees and other things, I don't think they will make Christmas." About Rangers Football Club Rangers Football Club PLC -- http://www.rangers.premiumtv.co.uk/ -- is a United Kingdom-based company engaged in the operation of a professional football club. The Company has launched its own Internet television station, RANGERSTV.tv. The station combines the use of Internet television programming alongside traditional Web-based services. Services offered include the streaming of home matches and on-demand streaming of domestic and European games, which include dedicated pre-match, half-time and post- match commentary. The Company will produce dedicated news magazine and feature programs, while the fans can also access a library of classic European, Old Firm and Scottish Premier League (SPL) action. Its own dedicated television studio at Ibrox provides onsite production, editing and encoding facilities to produce content for distribution on all media platforms. =============== X X X X X X X X =============== * BOOK REVIEW: The Oil Business in Latin America: The Early Years ----------------------------------------------------------------- Author: John D. Wirth Ed. Publisher: Beard Books Softcover: 282 pages List price: $34.95 Review by Gail Owens Hoelscher Buy a copy for yourself and one for a colleague on-line at http://is.gd/DvFouR This book grew out of a 1981 meeting of the American Historical Society. It highlights the origin and evolution of the stateowned petroleum companies in Argentina, Mexico, Brazil, and Venezuela. Argentina was the first country ever to nationalize its petroleum industry, and soon it was the norm worldwide, with the notable exception of the United States. John Wirth calls this phenomenon "perhaps in our century the oldest and most celebrated of confrontations between powerful private entities and the state." The book consists of five case studies and a conclusion, as follows: * Jersey Standard and the Politics of Latin American Oil Production, 1911-30 (Jonathan C. Brown) * YPF: The Formative Years of Latin America's Pioneer State Oil Company, 1922-39 (Carl E. Solberg) * Setting the Brazilian Agenda, 1936-39 (John Wirth) * Pemex: The Trajectory of National Oil Policy (Esperanza Duran) * The Politics of Energy in Venezuela (Edwin Lieuwen) * The State Companies: A Public Policy Perspective (Alfred H. Saulniers) The authors assess the conditions at the time they were writing, and relate them back to the critical formative years for each of the companies under review. They also examine the four interconnecting roles of a state-run oil industry and distinguish them from those of a private company. First, is the entrepreneurial role of control, management, and exploitation of a nation's oil resources. Second, is production for the private industrial sector at attractive prices. Third, is the integration of plans for military, financial, and development programs into the overall industrial policy planning process. Finally, in some countries is the promotion of social development by subsidizing energy for consumers and by promoting the government's ideas of social and labor policy and labor relations. The author's approach is "conceptual and policy oriented rather than narrative," but they provide a fascinating look at the politics and development of the region. Mr. Brown provides a concise history of the early years of the Standard Oil group and the effects of its 1911 dissolution on its Latin American operations, as well as power struggles with competitors and governments that eventually nationalized most of its activities. Mr. Solberg covers the many years of internal conflict over oil policy in Argentina and YPF's lack of monopoly control over all sectors of the oil industry. Mr. Wirth describes the politics and individuals behind the privatization of Brazil's oil industry leading to the creation of Petrobras in 1953. Mr. Duran notes the wrangling between provinces and central government in the evolution of Pemex, and in other Latin American countries. Mr. Lieuwin discusses the mixed blessing that oil has proven for Venezuela., creating a lopsided economy dependent on the ups and downs of international markets. Mr. Saunders concludes that many of the then-current problems of the state oil companies were rooted in their early and checkered histories." Indeed, he says, "the problems of the past have endured not because the public petroleum companies behaved like the public enterprises they are; they have endured because governments, as public owners, have abdicated their responsibilities to the companies." John D. Wirth is Gildred Professor of Latin American Studies at Standford University. ********* 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., Washington, D.C., 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 2013. 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$775 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 215-945-7000 or Nina Novak at 202-241-8200. * * * End of Transmission * * *