/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/131002.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, October 2, 2013, Vol. 14, No. 195 Headlines A U S T R I A ALPINE BAU: Karner & Dechow to Auction Machinery & Equipment G E R M A N Y LOEWE AG: Files for Insolvency; Needs New Investor by Year End G R E E C E * GREECE: May Ease Restrictions on Foreclosure Band by Year-End I R E L A N D ANGLO IRISH: Central Bank No Action on "Tapes" Controversy CARLYLE GLOBAL: S&P Assigns 'B' Rating to Class E Notes RITZ CARLTON: To Trade as Powerscourt Hotel After Restructuring I T A L Y * ITALY: Fitch Says Political Turmoil Puts Fiscal Targets At Risk N E T H E R L A N D S CNH INDUSTRIAL: Moody's Assigns 'Ba1' CFR; Outlook Stable P O L A N D * POLAND: Corporate Bankruptcies Hit Record High in First Qtr. S P A I N * SPAIN: Toll Roads Face Bankruptcy; State Mulls Takeover S W E D E N AGROKULTURA: Shareholders Mull Liquidation; EGM Set for Nov. 11 U K R A I N E * UKRAINE: Faces Bankruptcy Threat; Russia Opposes EU Trade Deal U N I T E D K I N G D O M DAVID PRICE: In Administration, Haulage Unit Ceases Trading KILMARNOCK FC: Fan Agenda to 'Drag Into Administration' X X X X X X X X * EUROPE: EU Mulls EUR50-Bil. Rescue Fund for Non-Euro Banks ********* ============= A U S T R I A ============= ALPINE BAU: Karner & Dechow to Auction Machinery & Equipment ------------------------------------------------------------ Karner & Dechow on Sept. 30 disclosed that the processing of one of the biggest insolvencies of a construction company in Europe enters its next stage. On October 1, Karner & Dechow, the biggest private auction house for insolvencies in Austria, was set to begin on behalf of the liquidator Dr. Stephan Riel with the online auction of the movables of the Alpine Bau construction. More than 5,000 items of Alpine construction machinery and equipment will be auctioned over the next few weeks. "The positions range from equipment for private use, such as drills or angle grinders, to special construction machinery for structural and civil engineering and road construction, such as scaffolds, compressors, excavators or different cranes. All items are in an extraordinarily fine condition", said managing partner Herbert Karner. More than 5,000 items of Alpine construction machinery and equipment will be auctioned over the next few weeks. "The positions range from equipment for private use, such as drills or angle grinders, to special construction machinery for structural and civil engineering and road construction, such as scaffolds, compressors, excavators or different cranes. All items are in an extraordinarily fine condition", said managing partner Herbert Karner. Furthermore, all equipment can be previewed: they are stored at four Alpine building yards in Austria. At the same time, the auction of more than 250 Alpine vehicles is launched. In the course of the ongoing motor vehicle auctions held by Karner & Dechow, the Alpine vehicles also come under the hammer in several stages. For further details about the online auctions and the positions (including starting bids, photos and visiting times), see http://www.karner-dechow.at Alpine Bau GmbH is Austria's second biggest construction group. Alpine Bau, owned by Spain's Fomento de Construcciones y Contratas SA, filed for insolvency on June 19 with liabilities of EUR2.56 billion (US$3.4 billion). ============= G E R M A N Y ============= LOEWE AG: Files for Insolvency; Needs New Investor by Year End -------------------------------------------------------------- Jens Hack at Reuters reports that Loewe AG filed for insolvency on Tuesday and needs to find an investor before the end of the year to avert closure. Loewe fell into difficulties after it failed to keep up with mass-market rivals such as Samsung and LG Electronics, and struggled to cope with a slide in the average price of TV sets, Reuters relates. It filed for protection from creditors' demands in July to give it breathing space while it sought an investor and restructured the company, Reuters recounts. According to Reuters, Loewe CEO Matthias Harsch said the company, founded 90 years ago in Berlin, has sufficient funds to keep operations running until the end of the year but thereafter "it would be over" without an investor. Still, the company expects to reach an agreement with an investor by the end of this month, Reuters notes. "We have six bids from investors from which we will choose in the next four weeks," Mr. Harsch, as cited by Reuters, said. Earlier this year, Loewe posted a 39% slump in first half sales of EUR76.5 million (US$1.04 billion) and a net loss of EUR26.7 million for the period, Reuters recounts. Loewe AG is a German high-end television maker. =========== G R E E C E =========== * GREECE: May Ease Restrictions on Foreclosure Band by Year-End --------------------------------------------------------------- Marcus Bensasson at Bloomberg News reports that Greece's lenders are on firmer footing after getting capital from euro-area and International Monetary Fund bailout funds, they still need to reduce the non-performing loans that have tripled to 29% of the total in three years and threaten their new-found solvency. One obstacle is a five-year ban on foreclosures that prevented thousands of Greeks from losing their homes after the economy went into free-fall, Bloomberg notes. According to Bloomberg, the government is now considering a plan to ease the restrictions by the end of this year to satisfy its creditors' demands. Finance Minister Yannis Stournaras said in August that banks face serious problems if they're not allowed to repossess and auction homes of people who don't pay their mortgages, Bloomberg recounts. Greece initially introduced a blanket ban on foreclosing all residences with mortgage debt of up to EUR200,000 in 2008, widening the ban two years later for some primary residences worth more, Bloomberg relays. Home loans in Greece expanded to EUR81.1 billion at the mortgage market's peak in August 2010, more than seven times the amount at the start of 2001, when Greece joined the single European currency, as first-time buyers took advantage of easier financing and interest-rate reductions, Bloomberg discloses. According to Bloomberg, now that credit has tightened, Panagiota Kalapotharakou, a lawyer at the consumer-advocacy organization, said the banks would gain little from seizing homes from borrowers, which would fetch a fraction of the outstanding debt in an auction. She said meanwhile, those losing their properties will still owe the money that's not covered by the sale proceeds, Bloomberg relates. ============= I R E L A N D ============= ANGLO IRISH: Central Bank No Action on "Tapes" Controversy ---------------------------------------------------------- John Walsh at Irish Examiner reports that the Central Bank has said it will not take any action arising out of the "Anglo tapes" controversy. The inflammatory tapes, which even prompted condemnation from German Chancellor Angela Merkel, revealed attempts by former Anglo Irish Bank executives to secure support from the Central Bank in the period before the financial meltdown in September 2008 and the subsequent nationalization of the bank in January 2009, Irish Examiner relates. According to Irish Examiner, in one conversation captured on tape, the head of the capital markets division, John Bowe, told a colleague how he had tried to persuade the Central Bank to provide Anglo with EUR7 billion in liquidity support. Prior to the release of the Anglo tapes by the Irish Independent earlier this year, the widely accepted view was that the banks believed they were suffering a temporary liquidity crisis and, on that basis, the Government introduced the bank guarantee, Irish Examiner notes. If it was proved banking executives knew they faced solvency issues and deliberately concealed this from the Central Bank, that could lead to criminal charges, Irish Examiner says. But the Central Bank has concluded there was no such misrepresentation, Irish Examiner states. Anglo Irish eventually cost the Irish taxpayer EUR30 billion, Irish Examiner discloses. "No new issues have been identified that relate to suspected criminal offences having occurred and as a result, the Central Bank does not intend, and is not required, to make any further statutory reports of suspected criminal offences to An Garda Siochana or the Office of the Director of Corporate Enforcement in relation to this matter," Irish Examiner quotes the Central Bank as saying. About Anglo Irish Anglo Irish Bank was an Irish bank headquartered in Dublin from 1964 to 2011. It went into wind-down mode after nationalization in 2009. In July 2011, Anglo Irish merged with the Irish Nationwide Building Society, with the new company being named the Irish Bank Resolution Corporation (IBRC). Standard & Poor's Ratings Services said that it lowered its long- and short-term counterparty credit ratings on Irish Bank Resolution Corp. Ltd. (IBRC) to 'D/D' from 'B-/C'. S&P also lowered the senior unsecured ratings to 'D' from 'B-'. S&P then withdrew the counterparty credit ratings, the senior unsecured ratings, and the preferred stock ratings on IBRC. At the same time, S&P affirmed its 'BBB+' issue rating on three government- guaranteed debt issues. The rating actions follow the Feb. 6, 2013, announcement that the Irish government has liquidated IBRC. The former Irish bank sought protection from creditors under Chapter 15 of the U.S. Bankruptcy Code on Aug. 26, 2013 (Bankr. D. Del., Case No. 13-12159). The former bank's Foreign Representatives are Kieran Wallace and Eamonn Richardson. Its U.S. bankruptcy counsel are Mark D. Collins, Esq., and Jason M. Madron, Esq., at RICHARDS, LAYTON & FINGER, P.A., in Wilmington, Delaware. CARLYLE GLOBAL: S&P Assigns 'B' Rating to Class E Notes ------------------------------------------------------- Standard & Poor's Ratings Services assigned its credit ratings to CARLYLE GLOBAL MARKET STRATEGIES EURO CLO 2013-2 Ltd.'s floating- rate class A-1, A-2A, B, C, D, and E notes, and fixed-rate class A-2B notes. At closing, CARLYLE GLOBAL MARKET STRATEGIES EURO CLO 2013-2 also issued an unrated subordinated class of notes. S&P's ratings reflect its assessment of the collateral portfolio's credit quality. S&P considers that the portfolio at closing is well diversified, primarily comprising broadly syndicated speculative-grade senior secured loans and high-yield bonds. The notes start paying on a quarterly basis. Because there is no minimum concentration for assets paying less frequently than the notes, S&P relies on the combination of two factors to address the potential liquidity risk that may arise from the mismatch between the assets and liabilities. There is an interest- smoothing account that retains an appropriate portion of interest received from assets paying less frequently that the liabilities, which should be sufficient to pay interest on the next payment date. There is also a liquidity facility to cover any potential shortfalls that may occur on the full rated capital structure if the assets were to reset (i.e., the frequency of paying interest changes). The issuer entered into a four-year liquidity facility at closing. The issuer uses this facility to address liquidity risk from the collateral pool. This facility is available until the earlier of: (i) the end of the four-year period, unless renewed; (ii) the termination of the facility; and (iii) the redemption of class A-1 notes. As soon as the liquidity facility ends, the note payment frequency switches to semi-annual from quarterly. S&P's ratings also reflect the available credit enhancement for the rated notes through the subordination of cash flows payable to the junior classes of notes. S&P subjected the preliminary capital structure to a cash flow analysis to determine the break- even default rate (BDR) for each rated class of notes. To determine the BDR for each rated class, S&P used the target par amount, the covenanted weighted-average spread, the covenanted weighted-average coupon, and the covenanted weighted- average recovery rates. S&P applied various cash flow stress scenarios, using four different default patterns, in conjunction with different interest rate stress scenarios for each liability rating category. S&P's ratings are commensurate with its assessment of available credit enhancement following S&P's credit and cash flow analysis. S&P's analysis shows that the available credit enhancement for each class of notes was sufficient to withstand the defaults that S&P applied in its supplemental tests (not counting excess spread) outlined in its corporate collateralized debt obligation (CDO) criteria. Following the application of S&P's nonsovereign ratings criteria, it considers that the transaction's exposure to country risk is sufficiently mitigated at the assigned preliminary rating levels. This is because the concentration of the pool comprising assets in countries rated lower than 'A-' is limited to 10% of the aggregate collateral balance. The transaction's legal structure is bankruptcy-remote, in accordance with S&P's European legal criteria. CARLYLE GLOBAL MARKET STRATEGIES EURO CLO 2013-2 is a European cash flow corporate loan collateralized loan obligation (CLO) securitization of a revolving pool, comprising euro-denominated senior secured loans and high-yield bonds issued by European borrowers. CELF Advisors LLP is the collateral manager. STANDARD & POOR'S 17G-7 DISCLOSURE REPORT SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities. The Standard & Poor's 17g-7 Disclosure Report included in this credit rating report is available at: http://standardandpoorsdisclosure-17g7.com/1839.pdf RATINGS LIST CARLYLE GLOBAL MARKET STRATEGIES EURO CLO 2013-2 Ltd. EUR296.3 Million Fixed- And Floating-Rate Notes And EUR39.6 Million Subordinated Notes Class Rating Amount (mil. EUR) A-1 AAA (sf) 179.00 A-2A AA (sf) 31.50 A-2B AA (sf) 19.90 B A (sf) 19.40 C BBB (sf) 18.80 D BB (sf) 19.90 E B (sf) 7.80 Subordinated NR 39.60 NR-Not rated. RITZ CARLTON: To Trade as Powerscourt Hotel After Restructuring --------------------------------------------------------------- Ailish O'Hora Independent.ie reports that Ritz Carlton is closing its doors on the past and will trade as the Powerscourt Hotel from Oct. 1. According to Independent.ie, the Five Star Ritz-Carlton will be re-branded the Powerscourt Hotel as part of its recent ownership change. An examiner was appointed to the hotel last year and following a complex restructuring, it was sold earlier this year to Brehon Capital Partners, a Dublin based property investor, and Midwest Holdings, an international property investor for an undisclosed sum, Independent.ie relates. The hotel will be managed by Interstate, which also manages the plush new Marker Hotel in Dublin's Grand Canal Square and will remain part of the Marriott's Autograph collection, Independent.ie discloses. Wicklow-based Ritz Carlton was once a Celtic Tiger playground for celebs, millionaires and rich businessmen. The 200-room hotel was built by Treasury Holdings and opened just as the economy was tanking in 2007. ========= I T A L Y ========= * ITALY: Fitch Says Political Turmoil Puts Fiscal Targets At Risk ----------------------------------------------------------------- The potential collapse of Italy's ruling coalition government puts the sovereign's short- and medium-term fiscal policy targets at risk and creates uncertainty at a crucial period when the 2014 budget should be finalized. Italy's ratings are based upon the medium-term fiscal trajectory of the Stability Programme, compliance with the constitutional balanced budget rule and the EU's reinforced Stability and Growth Pact (SGP). The ratings also reflect our judgment that Italy will retain market access and, if needed, EU intervention would be requested and provided to avoid unnecessary strains on sovereign liquidity. As previously stated, prolonged uncertainty over economic and fiscal policies, reduced confidence that public debt/GDP will fall from 2014 and failure to comply with the constitutional requirement of a balanced budget are potential rating triggers for Italy's 'BBB+'/Negative rating. If the political turmoil prevents the 2014 budget being presented to the European Commission on October 15 or Italy is unable to comply with the SGP requirements, then the availability of EU support, due to the conditionality of the ESM and OMT facilities, would also be less likely if it were required. Prime Minister Enrico Letta is expected to present a plan to parliament on Wednesday and ask for a vote of confidence after Silvio Berlusconi withdrew his party's support following the decision to go ahead with a planned rise in VAT on October 1. ===================== N E T H E R L A N D S ===================== CNH INDUSTRIAL: Moody's Assigns 'Ba1' CFR; Outlook Stable --------------------------------------------------------- Moody's Investors Service assigned a Ba1 Corporate Family Rating and a Ba1-PD Probability of Default Rating to CNH Industrial NV. CNH Industrial is the successor of Fiat Industrial S.p.A and CNH Global N.V. following the merger of Fiat Industrial and CNH Global with and into CNH Industrial. As a result of the transaction Moody's withdrew the Ba1 CFR, Ba1-PD PDR and Not- Prime short-term ratings of Fiat Industrial, as well as the Ba2 CFR, Ba2-PD PDR and SGL-3 Speculative Grade Liquidity ratings of CNH Global. The following rating actions were taken for entities that had been subsidiaries of CNH Global and Fiat Industrial, but are now subsidiaries of CNH Industrial: Case New Holland Inc. (a holding company): senior unsecured debt to Ba1 from Ba2 based on guarantee from CNH Industrial and various operating subsidiaries. CNH America LLC (an operating company): senior unsecured debt to Ba1 from Ba2 based on guarantee from CNH Industrial. CNH Capital LLC (a holding company): senior unsecured debt to Ba1 from Ba2 based on support agreement from CNH Industrial and guarantees from its operating subsidiaries. Fiat Industrial Finance Europe S.A. (a funding conduit): affirmed at Ba2 based on guarantee from CNH Industrial. Fiat Industrial Finance North America, Inc. (a funding conduit): affirmed at (P)Ba2 based on guarantee from CNH Industrial. The outlook for all ratings is stable. CNH Industrial's pro-forma 2012 revenues were EURO 25 billion with the following segment distribution: agricultural equipment - 45%; trucks - 33%; construction equipment - 11%; and powertrain - 11%. The company's financial services operations had a total managed portfolio of retail and wholesale receivables of approximately EUR18.5 billion. Ratings Rationale: The Ba1 CFR of CNH Industrial reflects the favorable long-term demand fundamentals in the global farm equipment market, the company's increasingly competitive position in this sector, and the broad global footprint of its farm equipment business. The farm equipment business has also made considerable progress in improving its operations efficiencies and return measures, and strengthening its dealer system. However, these strong fundamentals are tempered by weakness in the European truck market and the introduction of the Euro V emission standards in the Brazilian truck market. CNH's construction equipment markets have bottomed out following the unprecedented downturn of 2009/2010. The company has significantly reduced construction equipment production capacity, breakeven performance was generated during 2012, and Moody's expects that demand will gradually improve. Consequently, the construction equipment operations will represent less of a drag on overall performance than in the past. The upgrade of Case New Holland Inc., CNH America LLC, and CNH Capital LLC's senior unsecured debt to Ba1 (equivalent with the Ba1 CFR of CNH Industrial) reflects: improving performance of the farm equipment operations; downstream guarantees from the ultimate holding company parent, CNH Industrial; the status of CNH America as an operating company; and upstream guarantees provided by various operating subsidiaries in the case of Case New Holland Inc. and CNH Capital. The debt of Fiat Industrial Finance Europe S.A. and Fiat Industrial Finance North America, Inc. benefit only from the downstream guarantee from its holding company parent -- CNH Industrial; the notes do not have upstream guarantees from any operating subsidiaries. Consequently, the notes are rated Ba2 (one notch below the Ba1 CFR). As of June 30, 2013, the principal liquidity sources available to CNH Industrial consist of approximately EUR3.7 billion in cash & cash equivalents (thereof around EUR0.5 billion cash restricted for ABS transactions), undrawn long-term revolving credit facilities of EUR1.6 billion (with a comfortable headroom under its financial covenants) as well as good operating cash flow generation. These sources should provide good coverage for the major liquidity requirements that could arise during the next twelve months. These requirements include short-term bank and other debt maturities of around EUR3.9 billion as well as capital expenditures and potential dividend payments. The majority of CNH's liquidity requirements arise from the ongoing funding needs of its financial service operations. Although the financial service operation remains heavily dependent on the ABS market to fund retail and wholesale originations, it has made considerable progress in strengthening its liquidity profile and funding flexibility by accessing the unsecured debt market and of the establishing multi-year committed ABS funding conduits. A critical factor in ongoing assessment of CNH Industrial will be the company's commitment to maintaining prudent underwriting standards and liquidity support for its financial service operations. At this juncture, Moody's rating does not assume that CNH Industrial will be required to support Fiat S.p.A.'s (Ba3/Negative) liabilities outstanding at the time of the demerger as a consequence of the existing joint liability pursuant of the Article 2506-quarter of the Civil Code. In case of a further deterioration of Fiat S.p.A.'s credit profile however, this joint liability, which has already been reduced considerably by the progressive expiration of the debt outstanding at the time of the demerger, could weigh negatively on Fiat Industrial's ratings. For the twelve months June, 2013 the pro-forma performance of CNH Industrial reflected the following metrics (essentially the same metrics of those of the now-dissolved Fiat Industrial): EBITA margin - 6.8%; EBIT/interest - 2.9x; and, debt/EBITDA - 3.0x. The stable outlook reflects the favorable demand fundamentals and strong competitive position in CNH Industrial's farm equipment sector, balanced against the operating challenges and margin pressure posed by the truck and construction equipment sectors. The stable outlook also anticipates that the company will maintain a prudent liquidity profile. An upgrade of the ratings could be considered if CNH Industrial can maintain its positive momentum in the farm equipment sector and if restructuring initiatives can moderate the margin pressure caused by the weakness in the truck sector. Metrics that could support a higher rating include: EBITA margins approximating 8%; EBIT/interest expense of 4.0x; and debt/EBITDA below 3.0x. Downward rating pressure could arise if the company is unable to sustain the recent improvements in the group's operating and credit metrics. This would be evidenced by: EBITA margins that below 6%; EBIT/interest expense approximating 2.5x; and debt/EBITDA above 3.5x. The principal methodology used in this rating was the Global Heavy Manufacturing Rating Methodology published in November 2009, The Rating Relationship Between Industrial Companies And Their Captive Finance Subsidiaries Methodology published in May 2012, and the Finance Company Global Rating Methodology published in March 2012. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. =========== P O L A N D =========== * POLAND: Corporate Bankruptcies Hit Record High in First Qtr. -------------------------------------------------------------- Warsaw Business Journal, citing Coface, reports that in the first three quarters of 2013, 681 Polish companies went bankrupt, the highest number of bankruptcies in nine years. The number was about 11% higher than in the corresponding period of 2012, when 614 companies were declared bankrupt, WBJ notes. According to WBJ, the report said "The number of bankruptcies in Poland is still higher than a year ago, but the rate at which it increases has slowed down. After three quarters of 2012 the growth rate was at about 18%." The industrial manufacturing sector remains the most prone to financial problems, with 199 bankruptcies declared, followed by construction with 171 and trade with 161, WBJ notes. ========= S P A I N ========= * SPAIN: Toll Roads Face Bankruptcy; State Mulls Takeover --------------------------------------------------------- Evro Intelligence, citing El Pais, reports that a number of toll roads built in the past 15 years, mostly around Madrid went bankrupt. According to Evro Intelligence, El Pais said that the accumulated debt of EUR3.6 billion is ultimately guaranteed by the State, which has already injected EUR900 million in aid in the form of loans. One of the options being considered would be the liquidation of the concessionary firms of the toll roads, which would allow the creditors to call the State guarantees, Evro Intelligence discloses. Instead of this, the ministry of public works is putting together a plan to take over the bankrupt tolls by creating a holding with an injection of EUR600 million in public capital, Evro intelligence notes. The toll roads, which were planned and built during the tenure of former PM Jose Maria Aznar as a way to encourage real estate development along their courses, have failed to meet traffic projections, presumably as a consequence of the economic crisis, Evro Intelligence says. The roads also incurred much higher costs than planned for the expropriation of the right-of-way, Evro Intelligence states. =========== S W E D E N =========== AGROKULTURA: Shareholders Mull Liquidation; EGM Set for Nov. 11 --------------------------------------------------------------- Dragon Capital reports that the founders and shareholders of Agrokultura, representing 29% of the company's share capital, are considering a liquidation option for the company as the preferred way to realize its value. According to Dragon Capital, the shareholders believe that in order to justify current sector valuations, Agrokultura should generate EBITDA of about US$40 million to US$50 million, while company's track record proves that it may be difficult to secure such profitability in the near future. Thus, a proposal is being considered to make an orderly sale of the company's assets, with shareholders expect to realize a net assets value of SEK8.20 (US$1.28) per share, Dragon Capital says. Earlier on Sept. 16, the shareholders owning 29% of total votes, requested the Board of Directors to convene an Extraordinary General Meeting in order to elect a new Board that would better reflect the current ownership structure and initiate discussions regarding the company's further strategy, Dragon Capital recounts. The EGM has been scheduled for Nov. 11, Dragon Capital discloses. Agrokultura, formerly Alpcot Agro, is a Stockholm-listed agricultural producer. ============= U K R A I N E ============= * UKRAINE: Faces Bankruptcy Threat; Russia Opposes EU Trade Deal ---------------------------------------------------------------- Alex Spillius at Telegraph reports that Russia has threatened Ukraine with bankruptcy as it warned against signing a landmark trade and cooperation agreement with the European Union. According to Telegraph, speaking at a conference in the Black Sea city of Yalta, Russian presidential adviser Sergei Glazyev dismissed the benefits of a planned treaty as "mythology". He warned that tariffs and trade checks that Russia would impose after the deal could cost Ukraine billions of dollars and result in a default, Telegraph relates. "Who will pay for Ukraine's default, which will become inevitable?" Telegraph quotes Mr. Glazyev as saying. "One has to be ready to pay for that." Saying that a default would cost Ukraine "25 or even 35 billion euros", he asked: "Would Europe take responsibility for that?" Russia is opposing Kiev's plans to sign a free-trade and political association agreement with the 28-member bloc in November, which would be a major step towards possible eventual membership, Telegraph discloses. Moscow raised the pressure on Ukraine over the summer by banning the products of a major chocolate maker in Russia and by temporarily halting some Ukrainian imports at its border, Telegraph recounts. =========================== U N I T E D K I N G D O M =========================== DAVID PRICE: In Administration, Haulage Unit Ceases Trading ----------------------------------------------------------- Christopher Walton at Motor Transport reports that David Price Food Services has gone into administration just over a year after entering a Company Voluntary Arrangement. According to Motor Transport, the chilled haulage division of the business stopped trading with immediate effect on Sept. 30. A total of 109 employees have been made redundant, Motor Transport discloses. The company's cold storage division, which has facilities in North Shields and Glasgow, has been sold to Ice Company Distribution with 29 jobs retained, Motor Transport relates. David Price Food Services is based in Tyne and Wear. KILMARNOCK FC: Fan Agenda to 'Drag Into Administration' ------------------------------------------------------- Andrew Smith at The Scotsman reports that Kilmarnock Football Club owner Michael Johnston accused supporters of attempting to drag the club into administration after a 200-strong band of fans staged a demonstration demanding his removal outside Rugby Park ahead of Sept. 29 5-2 loss to Celtic. According to the report, the Kilmarnock Supporters' Trust's long- running campaign to oust Mr. Johnston has been ramped up after his botched ticket offer that meant some Celtic supporters were given the chance of a GBP6 reduction on the GBP26 admission fee that SPFL rules prevented him extending to his own supporters. "There are people who have their own agendas who wait in the wings and jump on any perceived error and then create as much hysteria as possible," the report quoted Mr. Johnston as saying. "Their leaders advocate withholding revenue from the club, forcing an insolvency event to try to achieve their objective. . . . The main lesson is to get your offer out to the home supporters before the away supporters - but we had a very small window of opportunity to catch the Celtic support at their League Cup tie," Mr. Johnston said, the report relays. The report relates that Mr. Johnston said: "It was unfortunate timing that the offer to the Celtic supporters went out before we had announced [the incentives to Kilmarnock fans] the following morning." =============== X X X X X X X X =============== * EUROPE: EU Mulls EUR50-Bil. Rescue Fund for Non-Euro Banks ------------------------------------------------------------ Rebecca Christie at Bloomberg News reports that two European Union officials said the EU is weighing whether a EUR50 billion (US$68 billion) rescue fund can be turned into a bank backstop for member states outside the single-currency bloc. According to Bloomberg, the officials said that the EU's balance-of-payments fund currently has about EUR40 billion available, after being used to help Latvia, Hungary and Romania. Bloomberg relates that the officials said the European Commission now wants to overhaul the fund and add a tool for bank aid that could be tapped by non-euro countries whose lenders fail next year's continent-wide stress tests. They said that the Brussels- based commission wants a resource that can operate alongside the euro area's EUR500 billion firewall, so that the entire 28-nation EU is braced for the results of next year's stress tests, Bloomberg notes. The goal is to reach a deal by the end of this year so that the tool can be ready by mid-2014, when the commission also hopes to have finished negotiations on when the firewall can provide direct aid to euro-zone banks, Bloomberg states. The European Central Bank will be conducting balance-sheet reviews of major banks across the euro area as it prepares to take on new oversight duties in the second half of 2014, Bloomberg discloses. In addition, all EU banks will face a new round of stress tests, carried out by the ECB, national regulators and the European Banking Authority, Bloomberg notes. According to Bloomberg, one of the officials said that if all the proposed backstops are in place, the EU would have as much as EUR400 billion available to handle any banking problems that emerge. This would include EUR60 billion in possible direct bank aid from the European Stability Mechanism and another EUR280 billion in capacity for banking assistance programs like the one Spain received last year, as well as the proposed tool for non-euro member states, Bloomberg says. ********* 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. 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