UPDATE 1-Bidder for Atlantic City's Revel to contest auction if he loses

Mon Sep 29, 2014 7:03pm EDT

(Adds comment from White & Case attorney in paragraphs five and six)

By Tom Hals

Sept 29 (Reuters) - The Florida developer who entered the first bid in an auction for Atlantic City, New Jersey's Revel Casino Hotel, which closed its doors this month, said on Monday he plans to challenge the results if he loses, because the process lacked transparency.

The comments, by Glenn Straub, come as the auction for Revel, Atlantic City's newest casino complex, is scheduled to resume on Tuesday at 10 a.m. in a New York law office. The auction started last week with a $90 million cash bid by Straub but adjourned for the Jewish Rosh Hashanah holiday.

Straub complained the bidding lacked transparency and he did not even know how many qualified at last week's bid deadline, or how their proposals were being valued.

"I will challenge it," Straub said in a telephone interview. "You've got to be able say, 'people, you can't bid apples against oranges.'"

Revel's attorney, John Cunningham with White & Case, called the allegations "entirely false."

Cunningham said Straub had asked for details about other bidders during a court hearing earlier this month as part of a proposal to postpone the auction, but that Revel's team declined to make that concession.

Hanging in the balance is the two-year-old Revel, which cost $2.4 billion to build and closed on Sept. 2. The complex was meant to be a Las Vegas-style resort, but its fine dining, striking design and entertainment never caught on in a city that relies on bus tours and buffets.

Straub's said his attorney was filing papers to seek a court order staying the auction till Thursday and seeking a trustee to oversee the bidding, rather than Revel's attorneys at law firm White & Case. However, he said he did not expect the auction to be put on hold.

Straub feared Revel's legal team was colluding with other bidders, according to a court filing obtained from Straub's attorney Craig Galle, who said a paper copy of the filing was submitted to the court.

"This entire auction proceeding is highly suspect, and, given the appearance of impropriety and lack of open communication, tainted at best," said the document.

Cunningham, Revel's attorney, said he had not seen the filing.

A hearing to approve the sale to the winning bid is set for Oct. 7 in front of Judge Gloria Burns of the U.S. bankruptcy court in Camden, New Jersey, where the Chapter 11 was being handled.

Revel agreed to use Straub's initial bid to set the benchmark for other potential buyers, which have not been publicly identified. The Florida developer has said he wants to create a university at the site to gather the world's brightest minds to tackle ills such as hunger.

Four Atlantic City casinos have closed this year as neighboring states have embraced gambling to pump up government revenue. The city had 12 casinos at the start of 2014.

The case is In Re: Revel AC Inc., U.S. Bankruptcy Court, District of New Jersey, No. 14-22654 (Reporting by Tom Hals in Wilmington, Delaware; Editing by Steve Orlofsky, Bernard Orr)

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BRIEF-Pinnacle Point Group says company remains in final liquidation

Sept 30 Tue Sep 30, 2014 1:25am EDT

* Shareholders are advised that there is no change to company's financial circumstances and it remains in final liquidation

* Shareholders should continue to exercise caution when dealing in company's securities until a full announcement is made Source text for Eikon: Further company coverage:

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BRIEF-Ububele Holdings says meeting to consider rescue plan on Oct 10

Sept 30 Tue Sep 30, 2014 3:06am EDT

* Purpose of meeting will be to consider and, if deemed fit, to pass Ububele's proposed business rescue plan

* Meetings to consider business rescue plans of Ububele subsidiaries will be held on 9 and 10 October 2014 Source text for Eikon: Further company coverage:

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Fosun ups bid for Portugal's Espirito Santo healthcare unit

Sat Sep 27, 2014 6:44am EDT

* Fosun ups bit to 4.82 euros/shr or 460.5 mln euros in total

* Regulator CMVM also extends rival Grupo Angeles offer

* ESS shares closed on Friday at 4.87 euros

By Andrei Khalip

LISBON, Sept 27 (Reuters) - China's Fosun International Ltd has upped its bid for Portugal's Espirito Santo Saude (ESS) to 4.82 euros a share or 460.5 million euros ($584 million) in total, stepping up the battle over the hospital business of the indebted Espirito Santo family.

Portugal's CMVM market regulator said late on Friday it registered the all-cash offer by conglomerate Fosun's Portuguese insurance unit Fidelidade, while also extending by a week to Oct. 10 a rival offer by Mexico's Grupo Angeles, the first to bid for ESS.

Angeles initially offered 4.3 euros a share for the company on Aug. 19 and later raised its bid to 4.5 euros per share.

Fosun's previous 4.72 euro bid had already trumped Angeles' bid, but not an offer by U.S. UnitedHealth Group to bankrupt Espirito Santo family company Rioforte for its 51 percent stake, pitched at 4.75 euros a share.

If successful, the offer from UnitedHealth, which has several healthcare facilities in Portugal via its Brazilian unit Amil, would make a mandatory offer to minority shareholders at the same price.

The beleaguered Espirito Santo family's main holding companies need to sell assets after filing for creditor protection in July under a mountain of debt.

Another bid, by Portuguese healthcare firm Jose de Mello, failed Friday's CMVM registry deadline because competition authorities were unable to give their opinion on the offer. The company said it disagreed and still wants to take part.

The takeover battle has helped drive ESS shares up nearly 56 percent since their market debut in February, far outperforming the wider market. Its Friday closing price of 4.87 euros, a premium to existing offers, suggests some investors see scope for yet higher bids.

Fosun has been increasingly active globally, snapping up Portuguese insurer Caixa Seguros e Saude, of which Fidelidade is part, in January and upping a bid for holiday group Club Mediterranee SA this month.

Fosun is also looking to boost its private healthcare business, a growing area in China as the government looks to open the sector up to private capital. (1 US dollar = 0.7885 euro) (Editing by David Holmes)

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Dubai Amlak's shareholders agree $572 mln convertible issue

DUBAI, Sept 28 Sun Sep 28, 2014 10:52am EDT

DUBAI, Sept 28 (Reuters) - Shareholders of Dubai's Amlak Finance have approved the issuance of a sharia-compliant instrument convertible into its stock worth up to 2.1 billion dirhams ($571.8 million), a statement from the mortgage provider said on Sunday.

The instrument is a key part of the company's $2.7 billion debt restructuring plan, agreed with creditors in August.

Amlak, whose shares have not traded on the Dubai Financial Market since November 2008, also agreed to convene a shareholder meeting to approval the resumption of trading, provisionally scheduled to take place in the first quarter of 2015, the statement added. (1 US dollar = 3.6725 United Arab Emirates dirham) (Reporting by Nadia Saleem; Writing by David French; Editing by)

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UPDATE 1-Dubai Amlak's shareholders back debt restructuring

Sun Sep 28, 2014 11:45am EDT

* First shareholder meeting since mid-2008

* Back 2.1 bln dirham convertible key to debt restructuring (Adds detail, quotes, context)

By Nadia Saleem

DUBAI, Sept 28 (Reuters) - Shareholders of Dubai's Amlak Finance met for the first time in more than six years on Sunday and backed a key component of the mortgage provider's $2.7 billion debt restructuring deal.

Amlak's future has been in the balance for years. Its shares have not traded since November 2008 when they were suspended in the wake of the global financial crisis and a local real estate crash, and a number of attempts to revive the firm since then have failed.

However, negotiations with creditors led in August to a deal to restructure Amlak's obligations, which needed the sign-off of shareholders who had been left powerless since their last meeting in mid-2008.

"This is the best solution after working on it for so long," Ameed Kanan, an Amlak shareholder, told Reuters outside the meeting, held at a luxury hotel close to Dubai's financial centre.

The meeting was the second attempt to secure shareholder assent for a key part of the restructuring deal with creditors, after a gathering last Sunday was attended by too few shareholders to be recognised as valid.

Agreed was the issuance of a sharia-compliant instrument worth up to 2.1 billion dirhams ($571.8 million) and convertible into company stock, a statement from the company said.

Also approved on Sunday was a provisional date of the first quarter of 2015 for a shareholder meeting to back the resumption of trading in Amlak shares, the statement said.

Still required for this to happen is the formal signing of the restructuring agreement with creditors and also agreement from the regulatory authorities in the United Arab Emirates.

"Amlak has taken a number of strategic measures over the last few years to focus on its core property financing operations...we continue to work hard with all our stakeholders in returning to market," Arif Alharmi, chief executive of Amlak, said in the statement. ($1 = 3.6725 United Arab Emirates dirham) (Writing by David French; Editing by Michael Urquhart)

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Regulatory threat drives insurers into sub bond market

Fri Sep 26, 2014 12:17pm EDT

* Grandfathering provision increases September bond sales

* Insurance capital to borrow riskier elements from bank CoCos

* Market sell-off presents obstacles for latecomers

By Aimee Donnellan

LONDON, Sept 26 (IFR) - Europe's insurers are charging into the subordinated bond markets, keen to boost capital at rock-bottom yields before regulators force them to sell more aggressive structures.

This month seven insurers have raised over 3.5bn equivalent of subordinated debt in euro and dollars, a sharp increase from last September, when just one insurer came to market.

"It makes sense for insurers to consider issuing perpetual bonds where they could count towards their Tier 1 capital base once Solvency II is implemented," said Jake Atcheson, head of insurance debt capital markets at Citigroup.

Unlike banks, which have needed to turn to subordinated debt in recent years to raise more regulatory capital, insurance companies have escaped relatively unscathed.

But that is changing. Insurers will soon have to sell instruments with features that allow regulators to wipe out capital quickly and restore the health of the institution.

"Under Solvency II, insurance Tier 1 bonds will look similar to bank Additional Tier 1 capital," said Atcheson.

"They will have loss-absorption features including share conversion or write-down (temporary or permanent), non-cumulative coupon deferral and no dividend pushers or stoppers."

So insurers have incentive to rush to market, as they can save around 2% per year on a perpetual bond that avoids more aggressive features, bankers say.

Continental European issuers are now readying deals in the hopes they will be grandfathered in by regulators.

Macif and Credit Agricole Assurances are seeking to raise this kind of debt, while Italian borrowers like Generali are also expected to join the fray.

"Insurance companies are in a transitional period where it's still possible to issue old-style instruments that do not incorporate some of the riskier elements of Solvency II's definition of own funds," said Franck Viort, head of insurance DCM at BNP Paribas.

"We don't know precisely when the cut-off date will occur, but it could be as early as the end of this year."

This uncertainty is persuading issuers to sell perpetual Tier 2 bonds without loss absorption or conversion language, which they hope their national regulators will count as Tier 1.

Even so, some national regulators like the PRA want insurers to comply fully with Solvency II from the get-go.

"It's interesting to see that different jurisdictions are taking different views on this," said Atcheson.

"For example, we haven't seen any perpetual issuance out of the UK this year, which is probably because the PRA has said it wants insurance debt to be 'in the direction of travel of Solvency II.'"

TOO MUCH, TOO SOON

Investors are of course happy to buy bonds without aggressive features, and the deluge of insurance bonds in recent weeks has attracted reasonable order books.

"The less loss-absorption language the better, when it comes to subordinated bonds," said Robert Montague, a senior investment analyst at ECM Asset Management.

"Investors would prefer to buy bonds without this additional language. And when it comes to structures, we prefer dated over perpetual debt."

The rush has created something of a logjam of supply, though a recent sell-off in the subordinated market may limit the issuance window.

Since July, insurance sub bonds have been bouncing around in the secondary, with some widening around 90bp.

"We've seen a lot of supply in recent weeks and the perpetual notes have been too tight, which has led to underperformance," said Montague.

"Some of these bonds that have been issued in recent weeks are now three to four points down in the secondary market."

While investors seem happy with the trades on offer for now, some are questioning whether there will be sufficient demand for riskier structures down the road.

"Investor appetite for new-style insurance Tier 1 bonds is uncertain at the moment, given that we don't know how these instruments will be structured," said Thomas Maxwell, investment director at Standard Life Investments.

Viort at BNP Paribas agreed, saying that insurers are unlikely to issue more than one deal a year as it does not make sense to load up on costly capital. (Reporting by Aimee Donnellan; Editing by Alex Chambers and Marc Carnegie)

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Michigan OK's bonds to fund Detroit's bankruptcy plan

Sept 26 Fri Sep 26, 2014 1:55pm EDT

Sept 26 (Reuters) - Michigan officials on Friday signed off on four bond issues totaling $1.1 billion that would fund Detroit's exit from the biggest-ever municipal bankruptcy.

The Local Emergency Financial Assistance Loan Board said proceeds from the issues "will assist the city in addressing several settlements and claims against the city, as it nears the end of its bankruptcy process."

The bond sales, which were previously approved by the Detroit City Council, are contingent on the city winning confirmation of its debt adjustment plan in U.S. Bankruptcy Court, according to the board, which consists of three top state officials, including Michigan's treasurer.

One deal that was previously sized at $275 million has been raised to up to $325 million and would be initially purchased by Barclays Capital. Proceeds from that deal would be used in part to retire a $120 million city loan with Barclays from earlier this year.

Detroit officials, who regained control of the city government from state-appointed Emergency Manager Kevyn Orr on Thursday, said that Orr had to continue to oversee the bankruptcy case until it is over to satisfy terms of the $120 million loan.

Other deals approved by the state board were for $632 million, $55 million and $88.4 million. The latter would fund creditor recoveries related to Detroit's $1.4 billion of pension certificates of participation as part of a deal the city struck with bond insurer Syncora Guarantee Inc earlier this month. COPs creditors would get a 13.9 percent recovery.

Financial Guaranty Insurance Co, which like Syncora insured the pension debt, has not reached a deal with the city and remains the last major hold-out creditor in the bankruptcy case.

Proceeds from the bond issues would also raise money to pay other unsecured creditor claims, including those for limited-tax general obligation bonds, according to the state board.

Detroit, which entered bankruptcy court in July 2013 with $18 billion of debt and obligations, could exit as soon as next month. Judge Steven Rhodes, who is overseeing the historic case, put the confirmation hearing on the city's debt adjustment plan on hold starting September 19, to give FGIC time to retool its case. The judge, who must decide if the plan is fair and feasible, is scheduled to restart the hearing on Monday.

(Reporting by Karen Pierog; Editing by Dan Grebler)

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STXNEWS LATAM-Unit of Brazil's OSX gets approval to stop payments

Fri Sep 26, 2014 7:29pm EDT

OSX WHP 1&2, a Netherlands unit of bankrupt Brazilian shipbuilder OSX Brasil SA, received final approval from a Dutch court to suspend payments to creditors until January 2016, OSX said in an e-mailed statement. OSX WHP 1&2 was set up to finance, build and lease well-head oil production platforms to Oleo e Gas Participacoes SA, a now bankrupt Brazilian oil company. Oleo e Gas, formerly known as OGX Petroleo e Gas Participacoes SA, and OSX were created by Brazilian tycoon Eike Batista. The suspension was first granted on a temporary basis in July. (Editing by David Gregorio)

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Detroit council, mayor approve deal to restore their powers

DETROIT, Sept 25 Thu Sep 25, 2014 6:19pm EDT

DETROIT, Sept 25 (Reuters) - The Detroit City Council on Thursday unanimously approved a resolution that will keep a state-appointed emergency manager in control of the city's bankruptcy case, while returning his power over the city government to elected officials.

The resolution was also approved by Mayor Mike Duggan shortly after the vote.

Kevyn Orr, whose 18-month appointment as emergency manager ends this week, will maintain responsibility for the city's historic bankruptcy "to successfully achieve confirmation and implementation" of Detroit's plan to adjust $18 billion of debt and obligations. That plan is the subject of an ongoing trial in U.S. Bankruptcy Court to determine if it is fair and feasible.

(Reporting By Lisa Lambert, additional reporting by Karen Pierog in Chicago; Editing by Diane Craft)

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UPDATE 1-Detroit council, mayor approve deal to restore their powers

Thu Sep 25, 2014 8:06pm EDT

(Recasts with city council vote to restore control of city to elected officials, keep emergency manager in control of bankruptcy case, statement from Michigan governor)

By Lisa Lambert

DETROIT, Sept 25 (Reuters) - The Detroit City Council unanimously approved a resolution on Thursday that would keep a state-appointed emergency manager in control of the city's historic bankruptcy case, while returning city governing powers to elected officials.

Shortly after the vote, Mayor Mike Duggan signed a letter, informing Michigan Governor Rick Snyder of his approval of the action, which followed three days of closed-door meetings.

Kevyn Orr, who was chosen by Snyder in March 2013 for an 18-month appointment as emergency manager, will maintain responsibility for the city's historic bankruptcy in order to "successfully achieve confirmation and implementation" of Detroit's plan to adjust $18 billion of debt and obligations, according to the resolution.

"It changes a huge amount for me as well as for the city council," said Duggan at a news conference following the vote. "While I have certainly been working on a cooperative basis, I did report directly to the emergency manager. And, while I had a good professional relationship with Mr. Orr, every single action I took was still subject to his approval."

On Thursday night, Orr also signed an order reflecting the new delegation of powers.

"There was so much work done before I even got here that I view this as just a bridge and the close-out of a process that started a year and a half before I came," Orr said after the signing. "We'll know where we are a year or two from now, and whether it was worth it."

The governor said in a statement that Orr's "expertise and counsel to the mayor and city council are vital in guiding the city toward a successful conclusion of the bankruptcy process."

City officials also said Orr had to be retained as emergency manager to satisfy a condition of a $120 million loan from Barclays that required Detroit to have an emergency manager until the loan is retired. Detroit last month said Barclays agreed to raise up to $275 million to fund its bankruptcy exit, with part earmarked to retire the previous loan.

Orr, a former corporate bankruptcy attorney at law firm Jones Day, famously took Michigan's biggest city to bankruptcy court in July 2013. He crafted, with the help of a slew of lawyers and consultants, a now 1,111-page blueprint for the city to deal with debts and invest in its future.

U.S. Bankruptcy Court Judge Steven Rhodes is currently holding a trial to approve the plan. He put the trial on hold starting Sept. 19 to allow Financial Guaranty Insurance Co, the last major holdout creditor in the case, time to rework its objections after another large creditor, Syncora Guarantee Inc., reached an 11th hour deal with the city.

Orr also said he does not have the authority to make any more deals using city assets, and he expects the trial, which resumes on Monday, to last one or two more weeks.

Over the last 14 months, Orr has pushed for a quick resolution of the complex and sometimes testy proceeding, knowing the city's elected leaders were anxious to use a provision in a 2012 Michigan law to remove him after 18 months.

The Local Fiscal Stability and Choice Act allowed for the installation of state-appointed managers in financially ailing cities and school districts, boosted their powers and provided an avenue for municipal bankruptcy filings.

His speed raised concerns that the city may have been shortchanged in creditor settlements and other terms of the restructuring.

By contrast, the bankruptcy case of Stockton, California, filed in June 2102 is still ongoing. (Reporting by Karen Pierog and Lisa Lambert; Editing by David Greising and Ken Wills)

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BRIEF-Court discontinues bankruptcy proceedings against Europejski Fundusz Hipoteczny

Sept 26 Fri Sep 26, 2014 2:32am EDT

* Said on Thursday that following withdrawal of all applications for the company's bankruptcy with liquidation filed by Tomasz Kaplanowski, Eleni Wrobel, Roman Blaszczuk and BDO sp. z o.o. as well as the company's application for bankruptcy with possibility of creditors agreement, Regional Court in Warsaw discontinued proceedings in all matters

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Carmaker NEVS lays off staff as Saab plant stays idle

STOCKHOLM, Sept 24 Wed Sep 24, 2014 11:08am EDT

STOCKHOLM, Sept 24 (Reuters) - Cash-strapped China's National Electric Vehicle Sweden (NEVS) said on Wednesday it would lay off up to 200 staff at its Saab car plant in Sweden as production is unlikely to resume anytime soon.

NEVS, which bought the bankrupt Swedish carmaker Saab in 2012, halted already-low output in May because of a shortage of money. In August, it obtained protection from creditors through a Swedish court while trying to secure funding.

"The ongoing discussions on collaboration and ownership structure, which have not yet resulted in a binding agreement, indicate that the decision for a start-up of production will take time," NEVS said in a statement.

It said the layoffs, due to lack of work, were a step in a reorganisation plan that the company's administrator would present at a creditors' meeting on Oct. 8.

NEVS has earlier said it was in talks with two unnamed car firms to secure more money, that it has external debt of about 400 million crowns ($56 million), and that it made a pretax loss last year of 601 million on sales of 41 million.

The firm is betting on an electric version - now in a prototype stage - of a decade-old Saab model to bring the brand back from the dead. It is targeting its home market of China.

(1 US dollar = 7.1852 Swedish crown) (Reporting by Anna Ringstrom; editing by David Clarke)

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U.S. Treasury denies allowing 'excessive' executive pay at GM, Ally

By Paul Lienert and Bernie Woodall

DETROIT, Sept 24 Wed Sep 24, 2014 12:00pm EDT

DETROIT, Sept 24 (Reuters) - The U.S. Treasury last year permitted top executives at General Motors Co and Ally Financial Inc to collect "excessive pay" while those companies were part of a taxpayer-funded government loan program, a special inspector general reported on Wednesday.

The Treasury responded that the report contained "many inaccuracies and omissions," saying the department balanced limits on executive compensation "with allowing companies to repay taxpayer assistance."

According to Christy Romero, special inspector general for the U.S. Troubled Asset Relief Program, "Treasury significantly loosened executive pay limits resulting in excessive pay for (the) top 25 executives" at GM and Ally while "taxpayers were suffering billions of dollars of losses" on loan repayments and share sales, said the report, prepared for Treasury Secretary Jacob Lew.

Treasury said executive pay packages for the top executives at GM and Ally were "restricted" while those companies were receiving government funds from the Troubled Asset Relief Program, known as TARP.

The 2009 rescue of the largest U.S. automaker was implemented under TARP, which disbursed billions of dollars to failing U.S. companies. As part of the bailout, Treasury took a substantial stake in GM and sold the last of its shares in December.

In April, Treasury said it lost $11.2 billion on the $49.5-billion GM bailout.

In a statement, GM said: "We remain grateful for the assistance we received from taxpayers. While the U.S. Treasury owned GM stock and ever since, we have worked to align executive compensation with the long-term interests of stockholders and we will continue to do so."

Ally said in a separate statement that it was "pleased to have been able to more than repay the American taxpayer" despite "significant restraints" imposed by TARP. Ally also said its executive compensation plan "meets the requirements for TARP companies."

The U.S. Treasury still holds a 13.8-percent stake in Ally.

GM Chief Executive Dan Akerson, who helped revamp the automaker after its 2009 government-sponsored bankruptcy and taxpayer-funded restructuring, was paid $9 million in cash and stock in 2013, according to regulatory filings. Akerson retired in January.

His successor, Mary Barra, was paid $5.3 million in cash and stock in 2013, when her title was executive vice president.

GM noted earlier this year that it put in place "a more appropriate performance-based compensation structure" after Treasury sold its GM shares.

The automaker also said its executive compensation plan is pegged to similar plans at a group of 20 large multinational companies in various industries, including General Electric Co , Ford Motor Co and Chevron Corp. (Reporting by Paul Lienert and Bernie Woodall in Detroit; editing by G Crosse)

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Auction for Atlantic City's Revel casino adjourned until Tuesday

By Tom Hals

Sept 24 Wed Sep 24, 2014 4:42pm EDT

Sept 24 (Reuters) - Atlantic City, New Jersey, will have to wait until next week to learn who will emerge as the next owner of the shuttered Revel casino hotel, a sleek resort that closed after just two years in operation.

An auction began Wednesday morning at a New York law office but was adjourned until Tuesday, according to Revel spokeswoman Lisa Johnson. The Jewish Rosh Hashanah holiday begins at sunset.

Glenn Straub, a Florida developer with a passion for polo, provided the initial bid at $90 million in cash to acquire the complex free of debt.

At least two other potential buyers presented bids on Tuesday, a source told Reuters. It is unclear how many parties qualified to join the auction.

The Revel cost $2.4 billion to build. It opened in 2012 with hopes it would revitalize the fortunes of Atlantic City by attracting wealthier clientele with fine dining and stunning design, rather than relying on cheap buffets, freebies and bus tours.

The strategy flopped and was compounded by a push by neighboring states to legalize gambling in recent years, which has hit Atlantic City hard. The seaside resort currently has eight operating casinos, down from 12 at the start of the year.

Trump Taj Mahal, which has said its slumping business worsened after Revel closed on Sept. 2, plans to close in November if it cannot reach a cost-cutting labor deal soon.

Straub said he wants to use the Revel complex to create a university for geniuses who will come and try to solve the world's ills, such as hunger and nuclear waste storage.

Bankruptcy auctions can take days to complete. Bidding is often adjourned for hours after each round so that investment bankers and lawyers can dig through details of each bid and try to value them. (Reporting by Tom Hals in Wilmington, Del.; editing by Matthew Lewis)

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BRIEF-Miranda Mineral says JSE to suspend trade in company shares

Sept 23 Tue Sep 23, 2014 7:29am EDT

* Board is considering various options, including, but not limited to, business rescue proceedings

* Shareholders are further advised of resignation of John Wallington as director of company effective 22 September 2014 Source text for Eikon: Further company coverage:

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New blow for Eco City as Mercedes terminates distributor deal

LONDON, Sept 23 Tue Sep 23, 2014 2:32pm EDT

LONDON, Sept 23 (Reuters) - Eco City Vehicles said Mercedes-Benz had terminated a financing and trading deal making the British firm the sole distributor of the Mercedes Vito model that is licensed for use as a London taxi, in the latest blow for the stricken company.

Its shares have been suspended since Friday when it said that its One80 subsidiary was facing potential administration, leading to "uncertainty as to the group's financial position and prospects".

Eco City said in a statement on Tuesday that its directors were evaluating options in the wake of the termination of the arrangements with Mercedes.

Production of the Mercedes Vito taxi model has been on hold since August due to a lack of sales, a development which has sent revenues at distributor Eco City plunging by a third in the six months to end-June.

Eco City in August blamed Uber, a U.S. taxi-hire company, as one of the reasons for the challenging conditions it faces, saying the company caused uncertainty in London's licensed taxi market.

San-Francisco based Uber, backed by heavyweight investors including Goldman Sachs and Google, allows customers to book and pay for a taxi using an app on their smartphones.

Eco City's 76.6 percent-owned subsidiary One80 owns the licence for the rear-wheel steering system used in the Mercedes Vito taxi, making the vehicle fit for approval under strict rules governing London taxis.

Eco City has a market capitalisation of about 1.5 million pounds ($2.5 million).

($1 = 0.6109 British Pounds) (Reporting by Sarah Young; editing by Jane Baird)

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Atlantic City's Revel casino heads to sale as late bids emerge

By Tom Hals

Sept 23 Tue Sep 23, 2014 7:08pm EDT

Sept 23 (Reuters) - At least two last-minute bids were received on Tuesday for Atlantic City's Revel casino, which closed this month, setting up an auction to challenge an agreed sale to a Florida developer.

Bidding on the two-year-old casino, which cost $2.4 billion to build, will start at $94 million.

Revel's owner obtained an initial, or stalking horse, cash bid of $90 million from Glenn Straub, a Florida developer. A stalking horse bid creates a floor for bids to be submitted at a court-supervised auction.

It is still possible that the bids received on Tuesday may not qualify if they fail to meet certain requirements, such as financing arrangements.

The bids came from a party involved with casino gaming outside New Jersey and a real estate developer, according to a person familiar with the bidding process.

John Cunningham, Revel's attorney from the White & Case law firm, did not immediately respond to requests for comment.

Straub on Monday said in an interview that he wants to convert the Revel into a university where the best and brightest young minds from across the world could work on the big issues of the day.

On Tuesday, as the 4 p.m. bid deadline passed, Straub told the Press of Atlantic City he would not be bothered if he lost the auction, calling the Revel a "monstrosity."

When it opened in 2012, the Revel casino was seen as a groundbreaking project that would bring Las Vegas glitz to the struggling New Jersey beach resort. The massive hotel, at 57 stories the tallest casino building in the United States, played down gambling and emphasized entertainment, fine dining and sleek design.

However, the hotel opened as neighboring states began to license more gaming options, undermining New Jersey's market.

Four Atlantic City casinos have closed this year, leaving the city with eight. The Trump Taj Mahal notified its 3,100 workers last week that they may lose their jobs and the casino may close in November. (Reporting by Tom Hals in Wilmington, Delaware; Editing by Steve Orlofsky)

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UPDATE 3-UK's EE to buy 58 stores from Phones 4u for 2.5 mln stg

Mon Sep 22, 2014 7:56pm EDT

(Adds Dixons interest to buy 50 to 100 Phones 4u stores)

LONDON, Sept 22 (Reuters) - Britain's biggest mobile operator EE has agreed to buy 58 stores from retailer Phones 4u for 2.5 million pounds ($4 million), after the retailer was placed in administration a week ago.

Last week, rival mobile operator Vodafone UK announced the takeover of 140 Phones 4u stores, which the retailer's administrator PwC said on Monday was worth 12.4 million pounds, and retailer Dixons Carphone agreed to take on 800 Phones 4u employees.

"We can confirm that we have agreed with the Phones 4u administrator to purchase 58 stores, safeguarding 359 jobs, subject to court approval," EE said in a statement, which was also confirmed by PwC.

Phones 4u entered administration on Sept. 15 after its last remaining network client EE decided against renewing its contract.

As part of EE's deal, 58 stores - without their inventories - and their employees will transfer to EE with immediate effect, and shops will be re-branded to EE. Most of them are expected to open in the next week, EE said.

"We consider that this represents the best potential outcome for creditors in the circumstances for these stores," PwC said.

The administrators said late on Monday that 362 Phones 4u stores would be closed and almost 1,700 employees made redundant. Another 720 employees have been retained in the short term to assist with the closure programme.

"It is a very sad day for the staff working at those locations and our thoughts are with them," PwC said in a statement.

Dixons Carphone plans to make a statement on Tuesday that it remains interested in acquiring 50 to 100 shops from Phones 4u, Sky News reported.

Dixons Carphone is finalising a list of the stores it is interested in acquiring, and intends to negotiate directly with the properties' landlords once they have been closed down, the broadcaster said. (bit.ly/1tVVYbE) (1 US dollar = 0.6116 British pound) (Reporting by Karolin Schaps and Supriya Kurane; editing by Jason Neely and Richard Chang)

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PRESS DIGEST- British Business - Sept 23

Sept 23 Mon Sep 22, 2014 8:35pm EDT

Sept 23 (Reuters) - The following are the top stories on the business pages of British newspapers. Reuters has not verified these stories and does not vouch for their accuracy.

The Times ADDISON LEE LEAVES FLOAT QUEUE WITH SALE London-based taxi firm Addison Lee has quit the queue of companies looking to list on the stock market and is instead to change hands between private equity firms. (thetim.es/1rshunw)

The Guardian

PHONES 4U: 2,400 STAFF SET TO LOSE JOBS AS MOBILE PHONE RETAILER SHUTS UP SHOP

More than 2,400 Phones 4u staff are to lose their jobs after plans to wind up the stricken mobile phone retailer were announced on Monday. (bit.ly/1pp1ZqW)

HINKLEY NUCLEAR REACTOR PROJECT GAINS EU APPROVAL, LEAK REVEALS British plans for a nuclear renaissance centred on a nuclear reactor in Somerset, England achieved a breakthrough when a nine-month European Union state aid investigation ended with a call for Brussels to approve the project. (bit.ly/1rs0mOU)

The Telegraph TESCO CHAIRMAN RICHARD BROADBENT UNDER PRESSURE TO RESIGN OVER ACCOUNTING CHAOS Tesco Plc Chairman Richard Broadbent is under pressure to resign after it emerged that the company's board dismissed warnings from its own auditor about how it was accounting for commercial deals with suppliers, months before a dramatic profit warning. (bit.ly/1DtXANQ)

Sky News

BARCLAYS HIT BY 38 MLN STG FINE OVER CLIENT ASSETS

Barclays Plc will be hit by the latest in a string of financial penalties this week when the financial regulator hands out a 38 million pound ($62.19 million) fine for failing to ensure adequate protection for clients' funds. (bit.ly/1x1BNvc)

CARPHONE PRESSES ON WITH PHONES 4u REPAIR JOB Dixons Carphone Plc plans to make a statement on Tuesday that it is still interested in acquiring between 50 and 100 shops from Phones 4u's, according to sources close to the matter. (bit.ly/1tVVYbE)

The Independent

ALDERMORE BANK HEADS FOR LONDON FLOAT British challenger bank Aldermore (IPO-ALDE.L) has announced plans to float on the London Stock Exchange, which could see the bank valued at up to 900 million pounds. (ind.pn/1uTxwaX) (1 US dollar = 0.6110 British pounds) (Compiled by Rama Venkat Raman in Bangalore; Editing by Lisa Shumaker)

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Fitch: What Investors Need to Know - Indonesia's Insolvency Regime

Mon Sep 22, 2014 11:00pm EDT

(The following statement was released by the rating agency) Link to Fitch Ratings' Report: What Investors Need to Know - Indonesia's Insolvency Regime here SINGAPORE/SYDNEY, September 22 (Fitch) Indonesia has established bankruptcy laws, and although Fitch notes that there has been some positive development with respect to creditor rights, the complex enforcement process continues to present risks to investors. Indonesia enacted Bankruptcy Law in 1998 which was subsequently revised in 2004. Recently there have been numerous cases which have seen the courts play an active role in bankruptcy/suspension of payments proceedings, but the rules continue to be applied inconsistently. Until such time as the laws are more predictable and legally certain, Indonesia's insolvency laws will continue to present higher risks to fixed-income investors. Among the factors for consideration: Indonesia's legal system is a civil law system based on written statutes. Its judicial and administrative decisions do not in a formal sense constitute binding precedents, and are not systematically published. Judgments of foreign courts, including New York courts, are not enforceable in Indonesia. In addition, Indonesian courts need not apply the principle of precedent; thus creating the possibility of judicial inconsistencies and ensuing legal uncertainty. In its latest special report "What Investors Need to Know - Indonesia's Insolvency Regime," Fitch assesses various legal issues facing investors including a comparison of Indonesia and other insolvency regimes, the balance of power between debtors and creditors, the rights of secured and unsecured creditors and the key areas affecting recovery. The report is available on the Fitch Ratings web site at www.fitchratings.com or by clicking on the link above. Contact: Vicky Melbourne Senior Director +61 2 8256 0325 Buddhika Piyasena Senior Director +65 6796 7223 Media Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234, Email: leslie.tan@fitchratings.com. Additional information is available on www.fitchratings.com ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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UK's EE agrees to buy 58 stores from Phones 4u

LONDON, Sept 22 Mon Sep 22, 2014 2:49am EDT

LONDON, Sept 22 (Reuters) - Britain's biggest mobile operator EE said on Monday it had agreed to buy 58 stores from retailer Phones 4u, which was placed in administration a week ago.

Last week, rival mobile operator Vodafone UK announced the takeover of 140 Phones 4u stores and retailer Dixons Carphone agreed with administrator PwC to take on 800 Phones 4u employees.

"We can confirm that we have agreed with the Phones 4u administrator to purchase 58 stores, safeguarding 359 jobs, subject to court approval," EE said in a statement.

Phones 4u entered administration on Sept. 15 after its last remaining network client EE decided against renewing its contract.

As part of EE's deal, 58 stores and their employees will transfer to EE with immediate effect and shops will be re-branded to EE.

Most of them are expected to open in the next week, EE said. (Reporting by Karolin Schaps; editing by Susan Thomas)

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BRIEF-Phones 4U says EE has agreed upon deal to acquire 58 stores

Sept 22 Mon Sep 22, 2014 3:40am EDT

* Phones 4u administrators can confirm that a deal has been agreed with EE which will see mobile network firm pay £2,500,000 to acquire 58 Phones 4U Limited stores

* Transaction includes Phones 4U Limited's interest in 58 stores' leasehold properties Further company coverage: (Reporting by Aashika Jain in Bangalore)

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UPDATE 1-UK's EE to buy 58 stores from Phones 4u for 2.5 mln stg

Mon Sep 22, 2014 4:01am EDT

(Adds details, administrator statement)

LONDON, Sept 22 (Reuters) - Britain's biggest mobile operator EE has agreed to buy 58 stores from retailer Phones 4u for 2.5 million pounds (4 million US dollar), after the retailer was placed in administration a week ago.

Last week, rival mobile operator Vodafone UK announced the takeover of 140 Phones 4u stores, which the retailer's administrator PwC said on Monday was worth 12.4 million pounds, and retailer Dixons Carphone agreed to take on 800 Phones 4u employees.

"We can confirm that we have agreed with the Phones 4u administrator to purchase 58 stores, safeguarding 359 jobs, subject to court approval," EE said in a statement, which was also confirmed by PwC.

Phones 4u entered administration on Sept. 15 after its last remaining network client EE decided against renewing its contract.

As part of EE's deal, 58 stores - without their inventories - and their employees will transfer to EE with immediate effect, and shops will be re-branded to EE.

Most of them are expected to open in the next week, EE said.

"We consider that this represents the best potential outcome for creditors in the circumstances for these stores," PwC said.

The administrator added that Vodafone's purchase of 140 stores includes in-store inventory worth around 7.1 million pounds. (1 US dollar = 0.6116 British pound) (Reporting by Karolin Schaps; editing by Susan Thomas)

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Phones 4U says Vodafone will take 140 of its stores

LONDON, Sept 19 Fri Sep 19, 2014 1:57pm EDT

LONDON, Sept 19 (Reuters) - Phones 4U's administrators PwC said Vodafone UK had agreed to take on 140 of its stores on Friday, saving 887 jobs, while a further 628 staff will be made redundant.

The mobile phone retailer, which has 550 standalone stores and 5,596 employees, fell into administration on Monday after the country's biggest mobile operator EE joined Vodafone in not renewing its network agreement.

The adminstrators said discussions to sell parts of the business were continuing.

The Phones 4U stores will be re-branded as Vodafone stores over the coming weeks following a period of transition, the administrators said. The deal remains subject to court approval on Monday and the terms were not revealed.

"While this deal remains subject to the approval of the UK courts, we are confident that this represents the best available transaction for the Company's creditors," said Rob Hunt, joint administrator and PwC partner.

The announcement follows one on Thursday which said 800 Phones 4U staff would be transferred to Dixons Carphone. (Reporting by Elaine Hardcastle; Editing by Mark Potter)

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UPDATE 2-Detroit council approves regional water authority deal

Fri Sep 19, 2014 2:50pm EDT

(Adds council member comments, Syncora deal, details of authority)

By Lisa Lambert

DETROIT, Sept 19 (Reuters) - The Detroit City Council on Friday approved the creation of a regional water authority, pushing forward an integral part of the city's plan to exit the biggest-ever municipal bankruptcy.

A deal Detroit reached last week with Oakland, Wayne and Macomb counties creates a regional water and sewer authority, but allows Detroit to maintain control of its local system. The authority must now be approved by at least one of the counties.

"When you go through rough times, you have to make decisions that are not always popular, but are necessary," said council member Andre Spivey prior to the 7-2 vote.

The city's water and sewerage department had become a sticking point in the plan to restructure Detroit's $18 billion of debt and other obligations.

The three southeast Michigan counties initially objected to the city's proposal to drain $428 million out of the system over nine years to make catch-up payments to Detroit's General Retirement Fund and to cover some fees. Under the deal, the new Great Lakes Water Authority would be able to make a smaller lump-sum pension payment.

Detroit will continue to own the system and lease it to the authority for $50 million a year for 40 years. That money would allow for the issuance of up to $800 million of bonds to fix ageing pipes and other related infrastructure in the city.

The authority will also have an affordability fund to help customers who cannot pay their bills. The water and sewerage department inspired city-wide protests this summer when it shut off delinquent bill payers' water in an effort to collect on $90 million in unpaid bills.

Detroit City Council President Brenda Jones, who cast one of the votes against the authority, advocated for putting the deal before city voters.

In a statement after the vote, Jones said she is concerned that Detroit would have to contribute to the lease payments, the potential bond issuance will not cover the costs of necessary repairs, and the 40-year lease does not account for inflation.

U.S. Bankruptcy Judge Steven Rhodes, who is currently holding a hearing on Detroit's bankruptcy plan that is expected to last until mid-October, had pushed the city and counties into mediation, hoping for a resolution that would include a regional authority. The judge must decide if the plan to shed about $7 billion of the city's $18 billion of debt is fair and feasible.

The council on Friday also approved another part of the bankruptcy plan, a deal with bond insurer Syncora Guarantee Inc., which has a $400 million exposure in the case. As part of that settlement, Syncora will receive options to acquire six vacant lots, take control of a public parking garage and extend its lease on Detroit's part of a tunnel connecting to Canada.

In addition, Syncora will see a 13.9 percent recovery on its claims involving the city's pension debt.

Council members and Mayor Mike Duggan had warned that if the city council did not approve the new water authority state-appointed Emergency Manager Kevyn Orr would privatize the systems. Orr had requested, and received, indications of interest from potential private operators, but the idea faded as negotiations on the authority advanced.

The water system covers 1,079 square miles and serves about 40 percent of Michigan's residents. The sewer system covers 946 square miles. (Reporting by Lisa Lambert Additional reporting by Karen Pierog in Chicago; Editing by Chizu Nomiyama, G Crosse and James Dalgleish)

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Bankruptcy most likely scenario for indebted Mechel-economy minister

SOCHI, Russia, Sept 20 Sat Sep 20, 2014 7:04am EDT

SOCHI, Russia, Sept 20 (Reuters) - Russian Economy Minister Alexei Ulyukayev said on Saturday that bankruptcy was the most likely scenario for the over-indebted steelmaker Mechel .

"It is very difficult to suggest any other reasonable solution. We should probably admit the fact - if a company is bankrupt, it should be legally acknowledged," Ulyukayev told reporters.

Russian officials have been looking at ways of helping Mechel, which has debts of $8.6 billion and 70,000 workers, for months, including the sale of a railroad to the company's Elga coal mine in Russia's far east to state Russian Railways.

Ulyukayev said there were was no money to finance the buyout of the railroad, adding there probably was no other way than to declare Mechel bankrupt.

"It is a high risk for the banks, of course, they will write off reserves but there is no other way. I think we will have to go this way," Ulyukayev told reporters on the sidelines of an economic forum in the Black Sea resort of Sochi.

Mechel itself is considering selling its core assets for between $2 billion and $3 billion over two or three years and wants its main creditor banks - VTB, Sberbank and Gazprombank - to restructure its debt.

Andrei Kostin, the chief executive of VTB, said on Friday that debt restructuring would not help Mechel in the long term and that VTB would have to take legal action to recover debts from the ailing miner after its proposal to convert part of Mechel's debt into shares was rejected. (Reporting by Darya Korsunskaya; Writing by Maria Kiselyova; Editing by Elaine Hardcastle)

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Detroit council approves regional water authority deal

DETROIT, Sept 19 Fri Sep 19, 2014 12:43pm EDT

DETROIT, Sept 19 (Reuters) - The Detroit city council on Friday approved in a 7-2 vote the creation of a regional water authority, moving forward an integral part of the city's plan to exit the biggest-ever municipal bankruptcy.

A deal Detroit reached last week with the heads of Oakland, Wayne and Macomb counties creates a regional water and sewer authority, but allows Detroit to maintain control of its local system. The plan must now be approved by at least one of the counties. (Reporting By Lisa Lambert, additional reporting by Karen Pierog in Chicago; Editing by Chizu Nomiyama)

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Phones 4U says Vodafone will take 140 of its stores

LONDON, Sept 19 Fri Sep 19, 2014 1:57pm EDT

LONDON, Sept 19 (Reuters) - Phones 4U's administrators PwC said Vodafone UK had agreed to take on 140 of its stores on Friday, saving 887 jobs, while a further 628 staff will be made redundant.

The mobile phone retailer, which has 550 standalone stores and 5,596 employees, fell into administration on Monday after the country's biggest mobile operator EE joined Vodafone in not renewing its network agreement.

The adminstrators said discussions to sell parts of the business were continuing.

The Phones 4U stores will be re-branded as Vodafone stores over the coming weeks following a period of transition, the administrators said. The deal remains subject to court approval on Monday and the terms were not revealed.

"While this deal remains subject to the approval of the UK courts, we are confident that this represents the best available transaction for the Company's creditors," said Rob Hunt, joint administrator and PwC partner.

The announcement follows one on Thursday which said 800 Phones 4U staff would be transferred to Dixons Carphone. (Reporting by Elaine Hardcastle; Editing by Mark Potter)

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UPDATE 2-Detroit council approves regional water authority deal

Fri Sep 19, 2014 2:50pm EDT

(Adds council member comments, Syncora deal, details of authority)

By Lisa Lambert

DETROIT, Sept 19 (Reuters) - The Detroit City Council on Friday approved the creation of a regional water authority, pushing forward an integral part of the city's plan to exit the biggest-ever municipal bankruptcy.

A deal Detroit reached last week with Oakland, Wayne and Macomb counties creates a regional water and sewer authority, but allows Detroit to maintain control of its local system. The authority must now be approved by at least one of the counties.

"When you go through rough times, you have to make decisions that are not always popular, but are necessary," said council member Andre Spivey prior to the 7-2 vote.

The city's water and sewerage department had become a sticking point in the plan to restructure Detroit's $18 billion of debt and other obligations.

The three southeast Michigan counties initially objected to the city's proposal to drain $428 million out of the system over nine years to make catch-up payments to Detroit's General Retirement Fund and to cover some fees. Under the deal, the new Great Lakes Water Authority would be able to make a smaller lump-sum pension payment.

Detroit will continue to own the system and lease it to the authority for $50 million a year for 40 years. That money would allow for the issuance of up to $800 million of bonds to fix ageing pipes and other related infrastructure in the city.

The authority will also have an affordability fund to help customers who cannot pay their bills. The water and sewerage department inspired city-wide protests this summer when it shut off delinquent bill payers' water in an effort to collect on $90 million in unpaid bills.

Detroit City Council President Brenda Jones, who cast one of the votes against the authority, advocated for putting the deal before city voters.

In a statement after the vote, Jones said she is concerned that Detroit would have to contribute to the lease payments, the potential bond issuance will not cover the costs of necessary repairs, and the 40-year lease does not account for inflation.

U.S. Bankruptcy Judge Steven Rhodes, who is currently holding a hearing on Detroit's bankruptcy plan that is expected to last until mid-October, had pushed the city and counties into mediation, hoping for a resolution that would include a regional authority. The judge must decide if the plan to shed about $7 billion of the city's $18 billion of debt is fair and feasible.

The council on Friday also approved another part of the bankruptcy plan, a deal with bond insurer Syncora Guarantee Inc., which has a $400 million exposure in the case. As part of that settlement, Syncora will receive options to acquire six vacant lots, take control of a public parking garage and extend its lease on Detroit's part of a tunnel connecting to Canada.

In addition, Syncora will see a 13.9 percent recovery on its claims involving the city's pension debt.

Council members and Mayor Mike Duggan had warned that if the city council did not approve the new water authority state-appointed Emergency Manager Kevyn Orr would privatize the systems. Orr had requested, and received, indications of interest from potential private operators, but the idea faded as negotiations on the authority advanced.

The water system covers 1,079 square miles and serves about 40 percent of Michigan's residents. The sewer system covers 946 square miles. (Reporting by Lisa Lambert Additional reporting by Karen Pierog in Chicago; Editing by Chizu Nomiyama, G Crosse and James Dalgleish)

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PRESS DIGEST- Financial Times - Sept 19

Sept 19 Thu Sep 18, 2014 8:39pm EDT

Sept 19 (Reuters) - The following are the top stories in the Financial Times. Reuters has not verified these stories and does not vouch for their accuracy.

Headlines EGON ZEHNDER AIMS FOR BOARDROOM REVOLUTION TO RECOGNISE WOMEN (on.ft.com/1r4Ug5g)

PUBLISHERS CALL FOR UK ANTITRUST INQUIRY INTO AMAZON (on.ft.com/1uXFdLn) Overview Britain's leading executive search firm Egon Zehnder said it planned to increase the number of female chief executives at Britain's top 100 companies to 25 by 2025. The executive search firm said only 9 percent of top executives at British companies now are women.

Jeremy Bennett, head of Nomura Holdings Inc's European arm, has warned that Western banks have been cutting off poorer countries' access to capital after some lenders were slapped with multibillion-dollar fines for money laundering and violating sanctions.

Malaysian-owned British sports carmaker Lotus said it would cut more than a quarter of its global workforce as part of a broad restructuring of its business. Phones 4u's plans for a debt-for-equity swap have been hurt after the company's administrator said there was "no realistic chance" of success. British publishers are said to have called for a competition inquiry into Amazon's dominance, citing that the domestic retail book market "suffers from a chronic and debilitating imbalance for authors, publishers and booksellers". The move is the latest attack on the company which is already battling French publisher Hachette and a competition complaint from German booksellers. (Compiled by Rama Venkat Raman in Bangalore; Editing by Eric Walsh)

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Swiss begin bankruptcy proceedings against Espirito Santo private bank

ZURICH, Sept 19 Fri Sep 19, 2014 4:18am EDT

ZURICH, Sept 19 (Reuters) - Switzerland's financial regulator said on Friday it had initiated bankruptcy proceedings against a Swiss private bank that is part of the Espirito Santo family's troubled business empire.

FINMA said in a statement that it had found Banque Privee Espirito Santo SA (BPES), which has been in voluntary liquidation since July, to be over-indebted.

The regulator said the bank is in a position to rapidly and fully reimburse privileged deposits to its clients, according to current estimates.

FINMA had said earlier this month that it was investigating BPES. (Reporting by Joshua Franklin and Katharina Bart)

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UPDATE 1-Swiss begin bankruptcy proceedings against Espirito Santo private bank

Fri Sep 19, 2014 5:33am EDT

(Adds detail)

ZURICH, Sept 19 (Reuters) - Switzerland's financial regulator, FINMA, said on Friday it had initiated bankruptcy proceedings against Banque Privee Espirito Santo SA (BPES), part of the Portuguese Espirito Santo family's troubled business empire.

FINMA, had said earlier this month that it was investigating the role of the private bank, in distributing securities and financial products to the wider Espirito Santo group.

The Lausanne-based bank is owned by Espirito Santo Financial Group (ESFG), which has been under creditor protection since late July after it buckled under massive debts linked to its founding family.

"Recapitalising the bank through participation of the current shareholders is not possible, as the parent companies of the Espirito Santo Group are also insolvent," the regulator said in a statement. "FINMA has thus initiated bankruptcy proceedings against the bank and appointed a bankruptcy liquidator."

BPES officials were not immediately available for comment.

ESFG was also the biggest shareholder in Banco Espirito Santo (BES), once Portugal's largest listed bank, which had to be rescued by the state on Aug. 4 in a 4.9 billion-euro(6.31 billion US dollar) bailout.

FINMA said the private bank is in a position to rapidly and fully reimburse privileged deposits of up to 100,000 Swiss francs ($106,689) to its clients, according to current estimates. (1 US dollar = 0.9373 Swiss franc) (1 US dollar = 0.7767 euros) (Reporting by Joshua Franklin and Katharina Bart in Zurich and Andrei Khalip in Lisbon; Editing by Greg Mahlich)

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Veteran bankruptcy lawyer Cieri to retire from Kirkland -sources

By Nick Brown and Casey Sullivan

NEW YORK, Sept 17 Wed Sep 17, 2014 9:29pm EDT

NEW YORK, Sept 17 (Reuters) - Attorney Richard Cieri, a bankruptcy veteran who helps run law firm Kirkland & Ellis' pre-eminent restructuring practice, is retiring, according to three people familiar with the matter.

Cieri, who helped turn around companies like Calpine Corp and Tronox Ltd, is set to step down in early 2015, the people told Reuters on Wednesday.

Cieri joined Chicago-based Kirkland in 2005 after stints leading the restructuring practices at law firms Gibson Dunn & Crutcher and Jones Day. While Kirkland's bankruptcy practice does not officially name leaders, Cieri has effectively run the group along with fellow restructuring guru James Sprayregen. The group is among the most renowned in the field, perpetually competing for corporate restructuring clients and lately dabbling in municipal restructurings like those in Detroit and Puerto Rico.

Cieri, 57, helped Kirkland land Energy Future Holdings, the bankrupt Texas power giant, as it undergoes a $40 billion restructuring. He also helped guide energy company Calpine through a two-year debt restructuring in Chapter 11 in 2006 and 2007, then assisted paint materials maker Tronox in using bankruptcy to shed hefty environmental liabilities.

Earlier in his career, Cieri represented Trans World Airlines Inc in a $4 billion bankruptcy restructuring.

Word of Cieri's departure surprised some in the restructuring field because Cieri is still in his 50s. Two of the sources said he and Sprayregen did not get along, primarily after Sprayregen returned in 2008 from a two-year stint at Goldman Sachs Group Inc. A third source denied any feuding between the two.

Neither Cieri nor Sprayregen commented on the matter.

A Kirkland spokeswoman did not return a call seeking comment. (Reporting by Nick Brown and Casey Sullivan; Editing by Eric Walsh)

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Michigan board approves $450 mln bond sale for Detroit hockey arena

Sept 17 Wed Sep 17, 2014 3:41pm EDT

Sept 17 (Reuters) - The Michigan Strategic Fund board gave final approval on Wednesday for the sale of up to $450 million of 30-year revenue bonds for a downtown Detroit arena that will be home to the National Hockey League's Detroit Red Wings.

The financing plan calls for $250 million of tax-exempt bonds back by increases in tax collections on real estate and personal property from the development. The bonds will be priced through underwriter Merrill Lynch. Another $200 million of taxable bonds backed by arena concession fee payments will be privately placed with Comerica Bank.

The Detroit Downtown Development Authority, which will own the arena, approved the financing plan on Tuesday.

The authority has been working more than a year on a "new multipurpose events center" of at least 650,000 square feet that will have 18,000 seats and retail space. It expects it to open in 2017.

A U.S. bankruptcy judge is evaluating Detroit's plan for restructuring its debts and exiting the largest municipal bankruptcy in U.S. history. With the plan seen as likely to win his approval soon, city leaders are talking about a revitalized future for the city of less blight and more economic development.

In a briefing memo, Mark Morante, senior advisor at the Michigan Economic Development Corporation, described the arena as an "innovative facility that will act as a powerful generator of economic activity and be a good urban neighbor."

He added that private parties will develop the area around the arena, making an "aggregate capital investment of at least $200,000,000 in projects."

That development will occur concurrently with the arena work "to more rapidly generate jobs, positive economic impact and transformation of the district," Morante wrote. (Reporting by Lisa Lambert in Detroit and Karen Pierog in Chicago; Editing by James Dalgleish)

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UPDATE 1-Michigan board OKs $450 mln Detroit hockey arena bonds

Wed Sep 17, 2014 6:35pm EDT

(Adds details about swaps)

Sept 17 (Reuters) - The Michigan Strategic Fund board gave final approval on Wednesday for the sale of up to $450 million of 30-year revenue bonds for a downtown Detroit arena that will be home to the National Hockey League's Detroit Red Wings.

The financing plan calls for $250 million of tax-exempt bonds backed by increases in tax collections on real estate and personal property from the development. The bonds will be priced through underwriter Merrill Lynch.

Another $200 million of variable-rate taxable bonds backed by arena concession fee payments will be privately placed with Comerica Bank.

The Detroit Downtown Development Authority, which will own the arena, will hedge interest rate risk on the bonds through a swap agreement with a yet-to-be named counterparty. According to a briefing memo on the deal, the authority will follow federal financial reform regulations known as Dodd-Frank and engage an independent representative to conduct negotiations.

Interest-rate swaps ensnared many municipalities during the last financial crisis. Swaps associated with Detroit's pension debt soured when interest rates and the city's credit ratings dropped. The money Detroit subsequently owed to the swap counterparties helped push it to file the biggest-ever municipal bankruptcy in July 2013.

The Detroit Downtown Development Authority approved the financing on Tuesday.

The authority has been working more than a year on a "new multipurpose events center" of at least 650,000 square feet that will have 18,000 seats and retail space. It expects it to open in 2017.

A U.S. Bankruptcy Court judge is currently evaluating Detroit's plan for restructuring its $18 billion of debt and obligations to exit bankruptcy. Anticipating the plan will win the judge's approval soon, city leaders are talking about a revitalized city with less blight and more economic development.

In a briefing memo, Mark Morante, senior advisor at the Michigan Economic Development Corporation, described the arena as an "innovative facility that will act as a powerful generator of economic activity and be a good urban neighbor."

He added that private parties will develop the area around the arena, making an "aggregate capital investment of at least $200,000,000 in projects."

That development will occur concurrently with the arena work "to more rapidly generate jobs, positive economic impact and transformation of the district," Morante wrote. (Reporting by Lisa Lambert in Detroit and Karen Pierog in Chicago; Editing by James Dalgleish and Andre Grenon)

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Bankrupt Energy Future to offer auction plan amid bidding war

By Tom Hals

WILMINGTON, Del., Sept 16 Tue Sep 16, 2014 2:05pm EDT

WILMINGTON, Del., Sept 16 (Reuters) - Texas's biggest power company, the bankrupt Energy Future Holdings, will soon present plans to auction its majority stake in its Oncor power distribution unit, a business that could be worth $20 billion or more including debt.

Edward Sassower, a Kirkland & Ellis lawyer who represents Energy Future, told a U.S. bankruptcy judge on Tuesday the company will seek a approval for the auction plan at a hearing on Oct. 17, suggesting the proposal could be filed next week.

"As you are aware, we're in the midst of a bidding war," said Sassower. "We've been working diligently to maintain that momentum by nurturing bids and attracting new bids. Market conditions are favorable and we want to lock in that value."

In June, NextEra Energy Inc swooped in with an unsolicited bid for control of Oncor, but Energy Future rejected it.

That proposal upended Energy Future's initial plan to allow its unsecured creditors to own the company when it emerged from bankruptcy. Energy Future filed for bankruptcy in April after years of falling natural gas prices dragged power prices lower, cutting the company's revenue and leaving it with unsustainable debt.

Energy Future's main asset is its ownership stake in Oncor, a nonbankrupt business that owns the largest power transmission network in Texas.

Thomson Reuters' IFR has reported that Hunt Consolidated was considering a bid, and that Houston-based CenterPoint Energy Inc and Spanish Iberdrola SA had also shown interest.

Separately, Energy Future plans to spin off its power plants and retail electric utility business to that unit's secured creditors, who are owed $24 billion.

Bankruptcy auctions of a company's assets are a traditional way to raise money to repay a company's debts, which in the case of Energy Future top $40 billion.

Sassower said the auction proposal would deviate from the usual practice of identifying a stalking horse or initial bidder before asking a judge to approve bidding procedures.

Instead, Energy Future will ask Delaware U.S. Bankruptcy Judge Christopher Sontchi to approve a separate procedure for selecting a stalking horse, Sassower told the court.

Energy Future was created from a leveraged $45 billion buyout in 2007 of TXU Corp, in a deal led by KKR & Co LP, TPG Capital Management LP and Goldman Sachs Group Inc's private equity arm. The buyers are likely to lose their investment in the bankruptcy. (Reporting by Tom Hals in Wilmington, Delaware; Editing by Steve Orlofsky)

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Court's expert witness on Detroit bankruptcy qualified to testify -judge

By Lisa Lambert

DETROIT, Sept 16 Tue Sep 16, 2014 5:55pm EDT

DETROIT, Sept 16 (Reuters) - An expert witness hand-picked by the federal judge overseeing Detroit's historic bankruptcy case will testify on the feasibility of the city's debt adjustment plan without restrictions, the judge ruled on Tuesday.

U.S. Bankruptcy Judge Steven Rhodes said Martha Kopacz, a senior managing director at Phoenix Management Services in Boston, is qualified to give her expert opinion, noting that her "specialized knowledge will help the court to understand the evidence and to determine whether the city's plan of adjustment is feasible."

Detroit's Police and Fire Retirement System and General Retirement System had filed a motion to exclude Kopacz's testimony relating to the pension systems, contending she lacks qualifications on those matters and testifying about the pension funds was beyond the scope of her appointment.

In the wake of Monday's evidentiary hearing that put Kopacz on the stand for questioning, Rhodes concluded that her opinions are based on sufficient facts or data and are the product of reliable principles and methods.

The judge added that Kopacz will also address whether the assumptions supporting the city's cash-flow projections, as well as revenue, expense and plan payment forecasts are reasonable.

Rhodes said the retirement systems will be allowed to address their issues with Kopacz by questioning her on the stand when she testifies on the plan later in the confirmation hearing, which began on Sept. 2. Rhodes will use the hearing to determine if Detroit's plan to shed about $7 billion of its $18 billion of debt and obligations is fair and feasible.

Kopacz said on Monday that while she would not describe herself as one who enjoys studying pension issues, "you can put your head in it and you can understand it if you have to."

"Pension issues are not magical," she said. "They are not a super science no one in this room can understand."

Kopacz added she would "probably" release another report after the seventh amended version of the plan was posted by Detroit. That version was filed with the court early on Tuesday and included the city's recent settlement with one of its last major hold-out creditors - bond insurer Syncora Guarantee Inc.

A July 18 report by Kopacz, who was chosen by Rhodes in April as an expert witness, concluded that the plan was feasible and that its revenue, expense and payment assumptions were reasonable.

However, Kopacz raised concerns over the speed of the bankruptcy case and that existing settlements with creditors may have already left the city with limited resources to pay for its post-bankruptcy efforts.

"This bankruptcy has been largely focused on deleveraging the city, often to the exclusion of fixing the city's broken operations," she wrote.

(Additional reporting by Karen Pierog in Chicago; editing by Matthew Lewis)

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U.S. Steel's Canadian unit to file for creditor protection

By Devika Krishna Kumar

Sept 16 Tue Sep 16, 2014 8:50pm EDT

Sept 16 (Reuters) - United States Steel Corp said its Canadian arm would apply for relief from creditors under Canada's Companies' Creditors Arrangement Act and said it would drop plans to expand two of its facilities.

Shares of the company, which also said it expects current-quarter results, excluding items, to be "significantly" higher than Wall Street expectations, jumped 6.7 percent after the bell.

The company said its Canadian operations, which have lost about $2.4 billion over the past five years, will also be dropped from its financial statements.

U.S. Steel said it would provide its Canadian arm with $185 million Canadian dollars ($168.6 million) of secured debtor-in-possession financing (DIP Financing) to support operations through the end of 2015.

U.S. Steel Canada, formerly known as Stelco, accounts for about $1 billion of U.S. Steel's consolidated employee benefits liability as of June 30.

U.S. Steel acquired the Hamilton mill in its takeover of Canadian steelmaker Stelco in 2007, shortly before the 2008 global financial crisis that crippled the steel industry worldwide.

The Pittsburgh-based steelmaker has since had a rough relationship with both its Canadian workers and the federal government.

The company said on Tuesday it decided not to proceed with an expansion at its iron ore pellet operations in Minnesota and to stop additional investments into the carbon alloy facilities at Gary Works, Indiana.

U.S. Steel said it found its current production capability to be "sufficient", after considering its future raw material needs for iron ore and coke.

Iron ore has fallen nearly $50 a tonne so far this year, as major miners flood the market with new supply and a slowdown in China's economic growth leads to uncertain demand.

However, the company remains confident of its financial performance and said it expects significant improvement in operating income for its reportable segments in the third quarter ending September.

"Steel market conditions in the U.S. have remained stable and our operations have performed well," U.S. Steel said in a statement.

Analysts on average expect the company to earn 89 cents per share in the third quarter, according to Thomson Reuters I/B/E/S.

The cost to complete the two projects would have been over $800 million, the company said.

U.S. Steel expects the cost-cutting measures to result in a charge of about $250 million in the third quarter.

Shares of the company closed at $41.41 on the New York Stock Exchange on Tuesday. (Reporting by Devika Krishna Kumar in Bangalore; Editing by Ken Wills)

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Nordea tests interest for Sweden's first CoCo bond

By Aimee Donnellan

Tue Sep 16, 2014 3:57am EDT

LONDON, Sept 16 (IFR) - Nordea has begun marketing a dual-tranche Additional Tier 1 bond, the first deal in the format from Sweden.

The bank has set initial price thoughts on a perpetual non-call five-year issue at 5.75% area and on a perpetual non-call 10-year at 6.5% area.

Bank of America Merrill Lynch, Citigroup, Goldman Sachs and UBS are lead managing the transactions, which are expected to be rated BBB+/BBB.

The bonds will be temporarily written-down if the bank's Common Equity Tier 1 ratio falls below 8%. At its second quarter results, Nordea's Common Equity Tier 1 ratio was 15.2%. (Reporting by Aimee Donnellan, Editing by Helene Durand, Julian Baker)

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German property firm IVG says insolvency over, eyes listing

FRANKFURT, Sept 16 Tue Sep 16, 2014 4:29am EDT

FRANKFURT, Sept 16 (Reuters) - German property group IVG Immobilien has emerged from insolvency following a sweeping restructuring and a debt-for-equity swap and is now considering options for a merger or stock market listing, the company said on Tuesday.

A local German court declared the insolvency proceeding completed, the company said in a statement, after the co-owner of London's landmark "Gherkin" tower began proceedings in 2013. IVG later delisted its shares.

"Following the complete financial and operating restructuring, the company is solid again and ready for the capital markets ... whether through an IPO, a merger or through any other possibilities," Hans-Joachim Ziems, the executive who led the restructuring, was quoted saying in newspaper Boersen-Zeitung.

One of Germany's best known real estate firms, IVG amassed more than 4 billion euros ($5.2 billion) in debt during a rapid expansion when it financed a business and hotel complex located at Frankfurt airport called "The Squaire" which suffered from cost over-runs.

It was also hit by a growing unwillingness among European banks to provide new loans, a consequence of the continent-wide credit crunch, and new regulations forcing lenders to cut their exposure to property.

The company's new owners, mostly hedge funds, are now pushing a less risky business model designed to manage existing property holdings and generate dividends with the possibility of eventually re-listing or merging the company. (1 US dollar = 0.7730 euro) (Reporting by Alexander Huebner; Writing by Thomas Atkins; Editing by David Holmes)

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UPDATE 1-Nordea emerges with Sweden's first CoCo

Tue Sep 16, 2014 4:53am EDT

(Adds background and quotes)

By Aimee Donnellan

LONDON, Sept 16 (IFR) - Nordea has pulled the trigger on Sweden's first contingent capital bond as it seeks to meet new regulatory requirements and boost its capital ratio with an expected US$1.5bn trade.

The bank is looking to fill its entire Additional Tier 1 requirement in one transaction, emerging with a dual-tranche offering consisting of two perpetual bonds callable after five- and 10-years.

There have been signs of investor fatigue for repeat issuers like Santander, Credit Agricole and UniCredit, which have struggled to attract the same kind of demand as first timers in the market like HSBC.

"Nordea had a lot of positive feedback from investors during its roadshow last week where investors were keen to have both maturities," said a syndicate banker.

"It makes sense for the bank to sell all of its capital target in one go rather than coming back again."

Sweden is one of the last European jurisdictions to get the go-ahead to issue Additional Tier 1 bonds, also called CoCos.

One of the main sticking points between Swedish banks and the regulator has been how low a bank's common equity can fall before the loss absorption features in the CoCos are triggered.

Nordea's bonds will be temporarily written-down if the bank's Common Equity Tier 1 ratio falls below 8%. Although this is higher than any other jurisdiction, with the UK and Denmark next at 7%, Swedish banks are highly capitalized.

At its second quarter results, Nordea's Common Equity Tier 1 ratio was 15.2%.

CHOPPY WATERS

The Nordic lender is defying a volatile Additional Tier 1 market which has seen recent issues trade down. Santander's 1.5bn Additional Tier 1 transaction was quoted at 97.7 this morning, down from its par pricing level two weeks ago.

"The market was definitely weaker overnight but the main comparable HSBC is above par, which is what's important," said a banker.

Nordea follows in the footsteps of HSBC, which priced a US$5.6bn triple-tranche euro and dollar AT1 transaction last week.

The combined US$3.75bn dollar tranches - split into US$1.5bn of 5.625% perpetual non-call five-year notes and US$2.25bn of 6.375% perpetual non-call 10s - attracted almost US$22bn of demand.

The non-call five and the non-call 10-year were quoted at par and 101 respectively on Tuesday.

Nordea is going for the same maturities as HSBC's dollars, but is testing investor interest at the tight end of where HSBC started last week.

The bank has set initial price thoughts on the perpetual non-call five at 5.75% area and on the perpetual non-call 10 at 6.5% area.

An update on the order book size and price is expected at the US open.

Bank of America Merrill Lynch, Citigroup, Goldman Sachs and UBS are leading the transactions, which are expected to be rated BBB+/BBB. (Reporting by Aimee Donnellan, Editing by Helene Durand, Julian Baker)

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